Bribe Plans Tokemak Integration
In advance of the launch of the BRIBE token on January 25, 2022 and Bribe app on January 27, we want to update the community about what we have planned in the pipeline. We continue to work towards our goal of transparent decentralized governance, beginning with the Aave Bribe Pool and moving into our next integration: Tokemak.
Following Aave, Bribe plans to integrate Tokemak, a decentralized market making platform and liquidity router. Bribe will release a pool where TOKE, Tokemak’s governance token, can be staked for rewards and bid on for voting power.
Tokemak Reactors and the C.o.R.E Events
Tokemak’s reactor auction offers an interesting scenario for bribery, so Bribe views this as an opportunity to test its solution for improving governance participation in a novel environment. Unlike Aave, whose governance is dichotomous (proposals either pass or fail), Tokemak voting is used to determine which external projects win a Tokemak reactor through the Collateralization of Reactors Event (C.o.R.E) events. Stakers of TOKE are able to vote in these events, and can vote for as many projects as they wish. At the end of the voting, the five projects with the most votes are given reactors. There is no guarantee that these events will continue on forever, however for the foreseeable future C.o.R.E events play a big role in DeFi.
The Bribe Use Cases
Bribe is able to play two roles in its integration of Tokemak– helping not only with reactor auctions, but with liquidity directing. With the first role, Bribe will feature auctions via the Bribe app and allow users to bid for TOKE voting power to vote on a reactor through the C.o.R.E events. These events allow stakers of TOKE to determine which projects will be allocated a reactor. This could include protocols who are in the running for a reactor, and want to bid on the Bribe Toke pool to secure their reactor. Similar to it’s role in Aave proposals, Bribe will act simply as a third party to help facilitate fair voting by giving access to all users who wish to vote in these auctions. Incentivized users can place a bid on the Bribe Tokemak pool for a chance to win the collective voting power.
The second use case of Bribe concerns the directing of liquidity to established reactors. Once established, TOKE holders direct liquidity to reactors by staking with a given asset’s token reactor. Bribery already happens here, typically through incentivization contracts which direct votes to many small reactors with a central supply of incentive tokens. In other words, liquidity is spread across different reactors. With Bribe’s approach of building unified coalitions of voters, a formidable TOKE pool in this case, could instead support a single large reactor whose liquidity could change hands more frequently.
Weekly gauge voting, for example, could allow the total liquidity to be directed to one reactor, decided by the winner of the Bribe pool. Because Bribe frees up all of our liquidity on a weekly basis, we have a unique opportunity to support a single reactor as opposed to other protocols in the bribing market, thus warranting higher incentives (bribes) for TOKE stakers in the Bribe pool. We anticipate that this specific aspect of the Tokemak integration could play out in different ways, with different interests from different users guiding the outcomes.
Tokemak provides a unique governance model and allows Bribe to demonstrate a plurality of use cases across different forms of governance. With both Tokemak auctions and directing liquidity to reactors, this next integration positions Bribe to open up a host of possibilities for both bidders and stakers. We are incredibly excited to bring this new opportunity to the community, and are looking forward to the future of Bribe!
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