🌟 On-Chain Voting for MadStar Finance!
Hi Burrow, we thank you for having recently participated in our first ever governance vote, and providing us with an overwhelming quorum to unlock MMF tokens ahead of schedule for our tier 1 CEX listing. Now as we have mentioned before, our team plans to execute an entire MM ecosystem onto the Polygon chain while using the lessons we have learnt on the Cronos chain. But more importantly, we also place a huge focus on listening to our Cronos holders since they were the ones that kick-started our journey. In the pursuit of growth, we do our best to ensure that it is never at the expense of either ecosystem, and try to keep things perfectly balanced. As such, this is why it leads to our 2nd governance vote for the launch of MadStar.Finance. Our team proposes a SVN fork with the aim of boosting both the Cronos and Polygon ecosystem.
As many of our OG burrow community is well aware, “Tomb” has been a rather contentious topic in our legacy thus far. Hence, it was of paramount importance for us as a team, to prioritise on the refinement of our Svn fork and only decide to go ahead with this announcement upon successful improvements. Today, here we are, ready to share said improvements, more confident that this permutation of a Svn fork can result in greater, positive impact for all of MM.
As such, this is why it leads to our 2nd governance vote for the launch of madstar.finance. Our team proposes a SVN fork with the aim of boosting both the Cronos and Polygon ecosystem. In this SVN fork, we have improved and refined the mechanics such that it is a protocol unique in its own way. Instead of relying only on inflation to maintain peg, the team will also allocate protocol revenue to do so. Because MM is the only protocol to run a huge ecosystem, this method of peg maintenance is unique and available only to us, allowing us to surpass our predecessors.
SVN and HKN (both by the MMF team) are the only algorithmic stablecoins, pegged to the price of 1 MMF and SVN respectively via seigniorage that has successfully retain its peg up till today and SVN is currently over the peg 1.09 per MMF at the time of writing. HKN is currently over the peg at 1.02 per SVN at the time of writing.
That said, this time round, we would not have a 3rd layer algorithmic stablecoin but rather, we will keep to only 1 so the inflationary pressure is greatly reduced.
On top of that, our DAO reserves are still strong and as it stands, there is over 44,000,000 SVN in the DAO to defend the HKN peg and 22,000,000 MMF in the DAO to defend the SVN peg.
As we recall, SVN finance was originally built to cater for our veMMF (voting-escrowed MMF) module. Our team originally determined that we were not ready for veMMF on Cronos due to a variety of reasons. However, given the recent growth of our community, our team has the intentions to launch V1 veMMF module on Polygon chain. Also, there are distinct differences planned for MadStar. The DAO fund will hold onto the Protocol-Owned-Liquidity (POL) resulting from trading fees to maintain peg, to allow the protocol to grow its TVL naturally and gradually. The MM ecosystem historically has really strong trading volumes (MMF on Cronos has approx $18 Billion in trading volume), and this tends to result in huge revenues that will boost the DAO fund. At the same time, when the METF token is bridged over onto the Polygon chain, its primary liquidity will be paired to MadStar Finance ($MSF) token, in much similar fashion to how it is primarily paired to SVN on the Cronos chain. This way, METF holders get to experience the upside of $MSF, while also enjoying the trading fee buybacks (that helps to peg $MSF) that gets distributed through the governance staking function.
In this launch, our team will receive 0 SOLAR and MSF tokens throughout the lifetime of the project. This is our way of giving back to the community, and ensuring that there will be no sell-pressure from the team. Our focus is on building up a strong MM ecosystem, and the less our team takes from the entire ecosystem, the bigger and better we can build it.
The plan for Cronos
With the issuance of this proposal, we understand that Cronos holders have concerns regarding how they can participate in the upside of MadStar, while preserving the value of their Cronos holdings. An exodus of funds from Cronos chain is not something we wish to see happen. This is also why we have planned for MSHARE and MTT utility on MadStar Finance.
In short:
- MSHARE and MTT tokens will be bridged into Polygon chain. MSHARE and MTT holders will be able to participate in genesis farming of the MSF token.
- MSHARE and MTT holders will be allocated emissions to farm SOLAR (the share token of MSF)
- Should the veMMF model be successful, we will perform a MasterChef migration on Cronos. At the same time, we will implement our 2nd emissions reduction on the MMF token
In summary
The previous launch of our SVN Finance protocol was by and large a successful one, having locked close to 500 million USD TVL at one point. We wish to emulate the same success while allowing all in the MM ecosystem to participate fairly. However, we do understand that everyone has their own opinions and it is important for everyone to be heard. While the protocol is planned as a means to give back to the community (with 0 allocation to our team), we understand that it is paramount for voters to decide whether to execute this proposal. At the same time, our team has our ears on the ground, and will include sensible suggestions from the community into MadStar Finance if the vote passes.
Voting Details
We will be taking a snapshot of the community MMF (poly) holdings on 27th Aug 4am UTC.
We will only take snapshot of those with
- MMF in their wallet
2. MMF > MMF manual stake pool
3. MMF > MMF auto-compounding vault on MMO
4. MMF-MATIC farm
5. MMF-USDC farm
6. MMF-MATIC MMO vault
7. MMF-USDC MMO vault
8. MMF-MMO MMO vault
9. MMF-MMO farm
Voting Period will happen on 27th Aug 6am UTC to 28th Aug 6am UTC (24 hours window)
2 Options
- Option 1 — Yes, to launch MadStar Finance
- Option 2 — No, to not launch MadStar Finance
Key Points
It is a content heavy article, and we have hence summarised some of the key points below:
Important details of proposed project
- Dev team will have 0 allocation, all rewards goes to community.
- This project is planned to build demand for the MMF token as the team implements the veMMF module to induce lock-ups for the MMF token.
- Together, this move is planned to induce a supply and demand shock to boost the token value.
- Trading fees that is to be distributed to METF holders will have a dual function of helping MSF maintain peg
Summary of items to be launched
- V1 veMMF
- MadStar DAO & Protocol
- METF being bridged and liquidity to be paired with MSF
FAQs
Q: Will we be performing a peg-on-peg?
A: No. The team rejects this idea, due to the various lessons we have learnt.
Q: Will this cause Cronos ecosystem to crash?
A: No. The team will set aside allocation of genesis farming for MSHARE and MTT holders, with close to 80% allocated purely for MSHARE and MTT holders. At the same time, there will be dedicated farms for MSHARE and MTT holders to farm SOLAR (the share token of MadStar).
Q: Why is the team not creating an allocation for themselves?
A: Our focus is on growing the MM ecosystem holistically. The introduction of this protocol should boost the demand for MM ecosystem products. But more importantly it will definitely bring in huge amounts of traffic, thus boosting protocol revenue that can be shared with all MM ecosystem participants fairly.
An additional tidbit
Decentralised Perpetual Exchange — MMX
External protocol revenue is the key to ensuring a strong MSF token and peg. As part of our strategy, our team has been building out a perpetual exchange that would allow traders to trade major currencies such as BTC, ETH, MATIC and other top cryptocurrencies with up to 30x leverage. This platform is capable of generating close to $400k USD daily fees based on our market research. And we intend to build a set of tokenomics that will reward native token holders. We will seek to incentivise liquidity providers to provide major cryptocurrencies such as BTC, ETH, MATIC, USDC etc. The perpetual exchange will allow for leveraged positions, or even swaps between tokens at low slippage. In building this, our team can focus on capital efficiency, and lower rates of emission for MMF token. Higher fees with lower emissions will allow us to to hit a tipping point where the token is more than sustainable by itself. More information on this decentralised perpetual exchange will be made available shortly.
Follow Mad Meerkat Finance
Twitter: https://twitter.com/MMFcrypto
Telegram Group: https://t.me/MMFcrypto
Announcement Channel: https://t.me/MMFann
Price Channel: https://t.me/MMFPrice
Website (Cronos): http://mm.finance/
Website (Polygon): https://polymm.finance/
Medium: https://medium.com/@MMFinance
