[Weekly Wrap up] What is going on at Float Protocol
- Basket Bags vote passed
- Treasury Diversification vote
- New pools vote
- FLOAT at target as rewards are paused for a bit
There has been a lot going on at Float Protocol since the last roundup came out. The Community has been so active on the Forum which is great to see, discussing the new FLOAT pools and treasury diversification, read on for more below 👇.
Putting the Basket to Work
We finished off the last weekly roundup with discussion of Utilising the Basket and moving to a snapshot vote, [FIP-008] Put the Basket to work. For those who missed it, this proposal started as an idea where we realised that we have all of this ETH sitting around in the Basket, why not put it to work. This would increase the Basket factor more quickly and thus the sooner BANK burns ensue 🔥. By using the weighted voting feature of Snapshot (which we created on Scattershot first by the way 😉) the Community had the ability to perform the act of a true Portfolio manager, allocating their votes to the corresponding asset allocation of ETH pegged yielding asset of their choice to include in the Basket. The vote results are through, here is how it turned out.
As stated by the original proposal:
The initial allocation of ETH pegged yield earning assets we believe should be no more than 25% of the total Basket… Any option with a greater than 5% total allocation (20% vote share) will be added.
Therefore Convex — Curve stETH-ETH LP and LIDO stETH will be added to the Basket at an overall allocation of 12.6% and 12.4% respectively. This will utilise the new Basket Bags feature which is currently in development.
Treasury Diversification Vote Passed
Those of you close to the crypto pulse may have heard of a few treasury diversifications occurring, namely Lido and most recently Sushi. The latter caught crypto twitter (CT) by storm and led to everyone chipping in their 2 pence on the right thing to do. Healthy discourse is greatly encouraged at Float Protocol and it was great to see this discourse on the upcoming BANK distribution pools (more on this later). But, there was also great chatter on the Forum regarding [FIP 006] — Treasury Diversification. The Community seemed in favour of treasury diversification — part of the process is to onboard strategic partners into the FLOAT ecosystem who shall be prominent supporters of the Protocol over the long term. The vote on Snapshot had a clear winner with over 120 voters participating. This was also one of the first votes where we launched a voter POAP claimable by all addresses which voted on the Proposal.
New Pools Vote
Float Protocol’s BANK distribution continued to tick on as we distributed more and more BANK to the Community. Phase 4 (II) has come to a close, and it was thought best to take some time to reflect and rethink the distribution mechanics especially given the overall crypto market. This was first initiated on the #governance channel on the discord, where there appeared to be appetite to slow down the distribution of BANK and shake things up regarding the pools. The idea being, what do we want FLOAT to be — the money of DeFi. The initial proposal started with the core team leaning towards the following setup: BANK-ETH (with dual rewards, Sushi), FLOAT-ETH and FLOAT-FRAX via Uniswap v3. However, many Community members stated that they would be more inclined to see a FLOAT-USDC pool if we were to have a FLOAT-usd pool at this stage to maximise the attraction to onboard new users into the Protocol. As such the Proposal was adjusted and proceeded to Snapshot vote (voters can claim a POAP for this one too). A summary of the outcome is as follows:
The next set of BANK distribution for 4 weeks will consist of:
- 200 BANK per week to BANK-ETH sLP
- 400 BANK per week to FLOAT-ETH sLP
- 200 BANK per week to FLOAT-USDC LP (Uniswap v3 + Low fee)
- 40 BANK per week to BANK-Only pool
All the pools will have multipliers applied to staked deposits the longer they are left in the pool therefore, incentivising long term liquidity provision and rewarding those who do so. Moreover, the BANK-only pool will have a minimum lock up of 30 days, rewarding long term supporters of the Protocol. Due to dev time required for the extra multiplier feature there may be a delay in rewards starting straight after Phase 4 (II). For further details please see the official Snapshot vote.
Funnily enough, amid all the riveting discussion on the next set of rewards FLOAT continued to do its thing. Even though rewards have been paused on the current pools until the new ones come into effect, the latest being the 25th of July 10pm UTC; FLOAT has returned to target price. This once again demonstrates how robust the system is and how much the Community believes in FLOAT 😎.
Just a brief summary on what to expect over the coming weeks:
- Splash page release (we know, it’s long overdue)
- New Phase 4 (III) pools
- Treasury Diversification Swap
- Vote on Treasury multisig signers
Until next time.
Backup site: https://ipfs.io/ipns/floatprotocol.eth/#/pools
Telegram (中文): https://t.me/floatprotocolCHN