[ARCHIVES] Frog Nation — Abracadabra x Wonderland United Front (26/01/22)
Frog Nation is a collective of projects which work together to push Defi and the overall crypto industry forward. Currently consisting of Abracadabra.money, Popsicle.finance, Wonderland.money and the most recent member, Sushi.com.
Wonderland 🤝Abracadabra
Wonderland is consistently using Abracadabra cauldrons and building strategies which are used by Abracadabra’s Degenbox. Both projects have interconnections from cauldron usage, liquidity provision, incentive voting on Curve to boost MIM liquidity, to building unique degenbox strategies around yield farms which Wonderland discovers and amplifies by using Abracadabra CDP’s.
When analyzing Abracadabra’s and Wonderland’s strengths and weaknesses it becomes clear that their partnership significantly increases both protocols’ ability to perform.
The Abracadabra and Wonderland teams see considerable synergy in merging the two protocols together.
The following proposal is looking to showcase what such a merger looks like and the benefits of uniting both protocols.
The Merge Proposal
Abracadabra
Abracadabra has proven to be a pillar of cross chain DeFi, with its isolated lending markets and built in leverage function, it has completely revolutionized the DeFi landscape.
MIM adoption, TVL and Fees Produced by the protocol have been increasing steadily, and together with it, the efforts of bringing a truly decentralised cross-chain stablecoin.
MIM has swiftly become the go-to decentralised stablecoin with more than 75,000 unique holding addresses on its 4 different chains (Fantom, Avalanche, Arbitrum and Ethereum). The deep liquidity pools are currently maintained through a SPELL emission schedule. Reducing the maintenance cost to grow liquidity through token emissions has been a major focus for the protocol.
Wonderland DAO
Wonderland launched on Avalanche in September 2021. During its initial phase, the DAO focused on community growth and treasury diversification, amassing a treasury of US$1 Billion and growing its community to more than 360,482 users. This expansion turned Wonderland into the biggest DAO in this space. Active treasury management created unique high yield strategies and token swaps which consistently outperformed the market including any competitors.
Building a large community through a unique minting mechanism, ideally positioned the DAO to obtain early stage token investments into a betting platform and NFT game as well as actively fund new products such as an upcoming Avalanche Liquid Staking product.
Synergies between these two products
In a recent attempt to push the boundaries of stablecoin farming further, Wonderland’s expertise in yield farming and Abracadabra’s innovative lending architecture, allowed both projects to craft a superior product which outperformed competitors and pushed the ability of yield farming across chains. Showcasing the effect of cooperation between two projects within the Frog Nation.
Unifying Abracadabra with Wonderland
Wonderland and Abracadabra have the same governance framework which allows both communities to voice their opinion and release new improvements to update the protocol. Even though the two protocols work under the frog nation banner, a lot of bureaucratic steps slow down this collaborative process.
Unifying the two frameworks by merging both protocols will significantly increase the efficacy of governance, improve the protocol overall and finalize the consolidation of frog ecosystem partners.
Becoming the most powerful entity in DeFi
By combining Abracadabra’s lending infrastructure with Wonderland’s well diversified treasury and yield producing strategies, incredible performance efficiencies can be achieved. The treasury will allow for expansion into early stage token investments through VC like capital deployment and funding of new projects.
The treasury will have direct access to cauldrons and can deploy strategies from within. Wonderland’s strength lies in creating unique yield strategies which use Abracadabra’s cauldrons to maximize performance. With this merger, these strategies can be developed and deployed in house, making them faster, more efficient and taking a bigger market share across the entire sector.
The unification of Abracadabra and Wonderland will create the most powerful DeFi entity in the industry.
The merger would bring Wonderland’s large treasury worth +$800M USD in tokens over to Abracadabra, including making use of Wonderland’s valuable strategy of protocol-owned liquidity, completing its goal of becoming self-sufficient and a zero-emission protocol by eradicating the need to incentivize liquidity.
The merged Wonderland community and token holders will benefit from holding the SPELL token, which will in addition to receiving their rewards from cauldron fees, also start receiving revenue share from the treasury which boosts the APY on sSPELL.
The merger will substantially increase the treasury’s ability to obtain yield, through directly working on cauldrons and pushing strategies to degenbox.
Overall, combining the protocols will turn SPELL and specifically sSPELL into a governance token which controls cauldrons, MIM replenishments, a $800M treasury and receives revenue share from yield producing assets.
The ability to deploy cauldrons with new strategies and using assets in the treasury to generate yield from them, to distribute to sSPELL holders, will elevate APY for the entire protocol.
Owning a large treasury will give the merged protocol the ability to diversify into early stage token investments as well as funding and building new projects.
[WIP #3] on the Governance Forum
A Wonderland Improvement Proposal has been posted on the governance forum:
https://www.wonderlandforum.xyz/t/wip-3-a-united-front-abracadabra-wonderland-merge/7499
Please read it thoroughly, a snapshot will be created in the coming days where the community can vote on the Abracadabra & Wonderland Merger.
[AIP #6] on the Governance Forum
An Abracadabra Improvement Proposal has been posted on the governance forum:
https://forum.abracadabra.money/t/aip-6-abra-team-proposal-abracadabra-wonderland-merge/2499
Please read it thoroughly, a snapshot will be created in the coming days where the community can vote on the Abracadabra & Wonderland Merger.
AMA with Dani regarding the merger
Dani will be hosting an AMA on his twitter space, on January 26th at 12pm EST, 17:00 UTC, to give details on how he envisions the merger of Wonderland with Abracadabra and the potential of uniting both protocols under one token.
AMA by Dani: https://twitter.com/danielesesta
Finally Make sure to join our brand new Frog Nation Discord: https://discord.com/invite/frognation
To stay up to date, join our Discord Server, the Wonderland Governance Forum and follow us on Twitter.
