$LLTH Vampire DAO
In our last Medium article, we discussed how Lilith Swap would be taking center stage as the umbrella organization for all of our projects going forward. Lilith Swap is evolving into a powerful one-stop-shop for DeFi: Crosschain NFT Staking, P2E Gaming, and Crypto Parlor Games like Blackjack & Poker are currently being built out.
Lilith Swap’s ERC20 token $LLTH, on Ethereum, will soon be the main vehicle for locking equity into her ecosystem for a share of lifetime rewards! The upcoming $LLTH Vampire DAO will be the head mast of her tokenized ecosystem.
$LLTH token is being tracked on some of the largest crypto related websites on the internet:
$LLTH Vampire DAO
Lilith weaves her web silently in the stillness of night, working diligently under the eyes of a chosen few to birth into existence a new caliber of gamified blockchain ecosystem… Her cocoon protects a most sinister abomination: the $LLTH Vampire DAO, waiting to hatch and begin feeding feverishly on every DeFi protocol in its path…
How Does $LLTH Vampire DAO Create Value?
The Vampire DAO owns its liquidity and selects the cream of the crop from new and established blockchain protocols to use up to half of its treasury funds to DCA (dollar cost average) into (mostly) passive crypto rewards systems to siphon equity from them and add to $LLTH liquidity. The other half of the funds are dedicated to less speculative rewards from LP (Liquidity Provision) farming both exotic token pairs & stablecoins.
At first the Vampire DAO’s LP farming module will use popular swaps like Uniswap & SushiSwap to provide liquidity, but will eventually control liquidity pools directly on Lilith Swap herself. The LP Farming module for the Vampire DAO will incorporate valuable blockchain data analytics as demonstrated by Patrick Gorell from CryptoMonkz.io, to produce a much higher projected APR from *relatively* safer LP farming than any other LP farming DAO on the market.
The value and equity of $LLTH Vampire DAO will also be backed by a percentage of Lilith Swap ecosystem fees, including Abyss Parlor Game fees, NFT Mints, Raffle contributions, etc. Active utility and value outside of the passive rewards created by a system is what most DAO’s currently lack, Lilith Swap solves this problem in a big way.
Current $LLTH Treasury Holdings
What Are Current $LLTH Treasury Holdings?
Besides valuable NFTs like Mutant Ape Yacht Club, Decentraland, Swampverse, Crypto Monkz and 1,000+ V2 Crypto Demonz… The $LLTH Treasury currently owns 20+ STRONG Nodes, 2 CUBO Nodes, 50+ Delta rLP, over 1,000 DOT and more! All passive rewards so far generated have been used to fund development of Lilith Swap. As the DAO is coded into reality, all of these will be rolled over from the $LLTH Treasury into the $LLTH Vampire DAO.
Currently the $LLTH Treasury is at 158% ROI on STRONG in 6 months, and over 180% ROI on CUBO in under 2 months. Our Staked Delta rLP has just begun accruing a minimum APY of 80%, and our DOT is currently staked for roughly 5–12% APY , but will be used to deploy our own DOT validator node upon creation of the Vampire DAO, with a higher expected APY.
As the Vampire DAO is initiated, the $LLTH Treasury will pursue direct ownership of Validator nodes across multiple blockchains including Polkadot, Polygon, Fantom, POKT, and others!
LilithSwap NFA, DYOR
While these types of ROI from protocols are not typical, they do follow market patterns and timing structures that can be anticipated with a greater degree of certainty based on factors including TVL (Total Value Locked), Volume, Use-Cases and overall fundamental integrity of a protocol to Blockchain as a whole.
As Lilith’s hatchlings: $LLTH Nodes, complete their gestation and emerge from her lair to scour DeFi for liquidity and equity, no DeFi project outside of Lilith Swap is safe from their onslaught. One by one, the weak and the STRONG, the new and the old protocols (and perhaps even blockchains) alike will fall prey to the insidious nature of $LLTH. All nourishment from the Vampire DAO is brought back to support the node and token holders within her dark coven.
What Are $LLTH Nodes?
$LLTH Nodes are the main store of value in the Vampire DAO, they are locked-liquidity contracts designed to pool equity and invest in multiple passive & active rewards models under one roof, then recycle the majority of the rewards generated from those sources back into $LLTH liquidity. A smaller portion of the rewards are set aside for investing in new protocols under stringent research, and into the development of Lilith Swap itself, potentially providing an eternal wellspring of value as long as crypto exists.
The liquidity in $LLTH nodes are locked forever and an auto-adjusting supply of rewards are dispensed back to node holders over time in the form of $LLTH, making the token inflationary or deflationary depending on the market. The Vampire DAO ensures there will always be liquidity for $LLTH to be traded against. Rewards to node holders range from approximately 0.1–1% daily.
How To Create $LLTH Nodes?
To create a $LLTH Node, contributors will need to bind $LLTH with $DAI (a USD-pegged stablecoin) at a ratio of 1:1 and form an LP token within the Vampire DAO contract. Different sized nodes will be available for the many levels of market participants; from newbie retail all the way up to established whale, the smallest node will be 25 $LLTH x 25 $DAI.
This tiered node framework and locked-liquidity contract structure to guarantee a stable supply of rewards are inspired by the CUBO Protocol, which makes up part of our current treasury holdings.
xWaifus NFT By Lilith Swap
A portion of the mint from xWaifus NFT, Lilith Swap’s next P2E series, will be put towards the $LLTH Vampire DAO, and all xWaifu holders will be able to claim a tiered node based on how many xWaifu NFTs they hold at the time of our official DAO formation.
After the xWaifus node claim, any member of the public will be free to create $LLTH Nodes and own their own liquidity inside our contract, but creating the highest Node tier will be reserved only for Cryptodemonz V1/V2 NFT holders.
What Makes $LLTH Vampire DAO Different From Other Passive Rewards Protocols?
The main differences between other passive reward protocols and $LLTH Vampire DAO include: the exotic LP farming techniques we employ, the vampiric nature of our treasury investments to produce a higher APR than LP farming alone, and the robust GameFi ecosystem being built around our utility token $xLLTH on Polygon network.
What is $xLLTH?
$xLLTH: the Polygon version of $LLTH, is needed for all in-game utility on Lilith Swap. All of our Abyss parlor games like Blackjack & Poker, as well as Blue-Chip NFT raffle, select NFT mints, and P2E gaming modules require $xLLTH for interaction. $xLLTH on Polygon provides up to 12,000% cheaper gas fees for ecosystem functions compared to the Ethereum network.
Just like $LLTH on Ethereum, $xLLTH on Poly is both inflationary and deflationary depending on it’s needs. $xLLTH is both produced and burned through NFT Staking, Parlor games and P2E games on top of Lilith Swap.
How is $xLLTH Produced?
V1 Crypto Demonz staking pool is the main production vehicle of $xLLTH and will continue to be so into the future, while tertiary $xLLTH is produced through P2E & parlor games.
Like $LLTH nodes, $xLLTH production from staking and P2E gaming, will work on a staggered rewards basis where overtime, less rewards in the native token are paid out from their respective sources the closer either token gets to their max supply, but also increases the production of rewards to account for total supply after burns.
This is done with the expectation that over time, both $LLTH & $xLLTH utility will grow with the market and the tokens will hold more individual value as time goes by. (Both $LLTH-$xLLTH currently have no capped supply until our protocol is more established.)
How is $xLLTH Burnt?
Our “Blue Chip” NFT raffle where holders exchange $xLLTH for raffle tickets to win NFTs like MAYC, Decentraland, Azuki and others, will run once per week and burn up to 85% of $xLLTH raffle contributions. In our $xLLTH Poker, Blackjack and Roulette modules, 50% of all fees collected will be burnt on the spot. Finally, 100% of $xLLTH from exclusive Lilith Swap NFT mints will be burnt. When these burn mechanisms are combined, it gives $xLLTH heavy deflationary functions that add value to any tokens still in existence after the burn.
$LLTH-$xLLTH Long Term Sustainability
Over the long term, $LLTH-$xLLTH are designed to compliment and strengthen each other respectively. $LLTH is a store of value and provides trading liquidity on mainnet Ethreum, while $xLLTH is exclusively for ecosystem utility at a much lower gas cost on Polygon.
Both tokens can be bridged cross-chain against each other at a rate of 1:1, giving $LLTH holders utility outside of their node rewards accumulation, and allowing $xLLTH holders access to liquidity from their staking or in-game P2E rewards, while encouraging them to create more nodes.
The more attention that is drawn to either token brings value and equity to the entire ecosystem because of how they bolster each other: for example, while only dedicated Spawn holders will have access to the highest $LLTH node tier, all nodes are backed by the lion’s share of the fees collected during $xLLTH Abyss parlor games, P2E gaming, NFT Mints, etc, which are all proven to be popular, profitable models… So $LLTH node holders benefit from $xLLTH production and utility even if they don’t hold any themselves!
$LLTH Vampire DAO Conclusion
The Lilith Swap ecosystem benefits greatly from the introduction of a guaranteed liquidity pool to support the value of its profitable game modules and in turn use those fees to support rewards. The $LLTH Vampire DAO not only accomplishes this feat, but provides powerful diversification and ownership across P2E and DeFi as a whole for all $LLTH node & token holders.
$LLTH Treasury holdings will be rolled into the $LLTH Vampire DAO in Q3 of 2022. xWaifus NFT holders will be the first to gain access to $LLTH nodes via a tiered claim based on how many xWaifus that wallet holds.
Creating the highest Node tier will be reserved only for Cryptodemonz V1/V2 NFT holders.
22% of the total rewards produced by the $LLTH Vampire DAO will be reserved for the team and for continued maintenance and growth of the DAO infrastructure itself.
More information about the DAO’s inner mechanics, ratios and voting mechanisms will be released in Q2–2022.
Meritocracy DAO Governance
Governance of the $LLTH Vampire DAO will begin as a semi-centralized system where certain functions must be performed manually by a human, such as protocol research and nomination, LP farming, validator node setup, bridging, swapping and other functions.
As the Vampire DAO grows, it will be moved from centralized control, onto semi-autonomous governance through a special voting consensus based on the political model of Meritocracy: where certain community members or groups within the community are given specific roles and weight within an ecosystem based on their proven skills and assets.
More articles coming soon on Medium: Abyss Parlor Games Structure, Lilith Swap Lighter and Merch Updates, Crypto Demonz Sidescroller Demo