Featured Farming Pools and Chopping Block Reintroduction

As BAO Finance and their franchises are gaining exposure and growing in the DeFi and crypto space, we see more opportunities to work together with other projects.

We have also seen a lot of interest and suggestions about adding new pools to BAO Finance and we can expect that we will receive the same type of requests in future franchises.

This proposal aims to add new pools for each chain that is featured, meaning those pools would be dynamic and last for a fixed period of time. Those featured pools would be open to members of the BAO community DAO, and to other project teams. This would begin with Ethereum Mainnet and xDai, and be assessed based on community interest. We would keep the top performing featured pool as a permanent pool in our protocol. This would create competition between the communities of each submitted project and help drive up TVL and increase fees collected for the treasury.

The proposal also aims to reintroduce the concept of the chopping block on Ethereum that can be found in our docs. This time it would be in conjunction with the featured pools. As many of you are aware, BAO Finance has a partnership with Sushi and we want to gradually transition from Uniswap liquidity pool tokens towards Sushiswap liquidity pool tokens in our ETH main net farm. There will be a different implementation on xDai and our franchises, as the challenges and goals are different.

Example #1

A project wants to launch on BaoSwap on the xDai network. If the community accepts the project proposal, we could feature a pool for their token. BAO would benefit from the additional liquidity and the project would gain exposure, incentives, and a DEX (AMM) to start exchanging their token.

Example #2

Our community wants to add a project that has been rising in popularity and quickly gaining traction in the DeFi or crypto space. We could propose a partnership or collaboration that could align interests with the project’s community as well as BAO’s.

This proposal explains how Featured pools & Chopping blocks would be implemented on Ethereum, xDai, PandaSwap and future franchises.

Prerequisites

This proposal is aligned with the BAO roadmap and other proposals and require these prerequisites:

  • The “Expanding Governance Decentralization and Process” megabill must be voted on and agreed upon
  • The community team outlined in the megabill must be clearly formed
  • Multisig deployment process must be in place in order to change pools and pool weight

Governance

Featured pools and Chopping blocks would be subject to governance vote.

For the featured pools, while any user could suggest their prefered token, strong proposals must come with some partnership or communication plan that outlines gains and benefits. To facilitate this, a template for token/pair submission would be available. Every submission must respect the template to be eligible for vote. The community team would be in charge of validating each submission.

To help facilitate the voting process and the governance around it, we would:

  • Create a new discord channel for pool related discussions
  • Create a new channel in the governance board for pool application
  • Distribute a template to submit new pool proposal
  • The community team would review application and apply a tag in the title of the submission: [Pending] | [Accepted] | [Refused]
  • Proposals that do not use the submission template would be rejected.
  • In the proposal, the member or the project that submitted their proposal must specify the pair they want to list their project (ETH, xDAI, BAO, etc.)
  • Votes would be casted each month based on Accepted pools. The votes would be multichoice, so we could select the top 5 pools that would be featured.
  • If there are more than 10 applications, the 10 most commented on would be picked. The other submissions would not be picked that month but could be resubmitted the next month
  • There would be a vote per chain, per month cast on Snapshot

For the Chopping block, there would be a vote per chain, per month cast on Snapshot to save a pool among those selected. The saved pool would be guaranteed to not be put on the chopping block on the next cycle. The pools that were not saved would go to the archive section at the end of the cycle and stop rewarding users.

This proposal would allow the community team to post recurring snapshot votes for the purpose of pool rotation without going through the concepts/governance proposals process each time.

The mechanism proposed on Ethereum

This proposal aims to create 5 pools that are either submitted by the BAO community or by project teams that want to partner with or be listed on BAO Finance on the Ethereum main net.

In order to make room in the BAO token distribution for those new pools, the 20 worst performing UNI pools based on Total Value Locked would be put on the chopping block. A vote would be cast to save 5 of those 20 pools. The remaining 15 would move to the archive section and stop awarding the BAO governance token. This specific process will only be done once.

We would leverage the fact that we would retrieve the weight of the 15 less performing UNI pools that were not saved by governance vote and use it to the 5 featured pools with a weight of 2000 each.

The 5 added pools would be SushiSwap pools, as this would align with our Sushi partnership.

The duration of each cycle would be 30 days. This duration accounts for high Ethereum gas fees and fits in nicely with the withdrawal penalty structure.

Around the 21st day of the cycle the following process would take place :

  • The 5 worst performing UNI pools based on Total Value Locked would be put on the chopping block. The pool that receives the most votes would be saved and not be archived
  • The top 10 pool proposals on the governance board that were accepted would be subject to votes for the next cycle. The five most voted pools would be selected as featured pools for the next cycle.

When the cycle ends this process would happen :

  • UNI pools on the chopping block would move to the archived section, where users could harvest/unstake their SLP tokens.
  • The 3 best performing featured pools based on Total Value Locked would be rewarded a permanent pool in Bao Finance.
  • The 3 newly permanent pools would retain their 2000 weight.
  • The 2 less performing featured pools based on Total Value Locked would move to the archived section, where users could harvest/unstake their SLP tokens.

To summarise:

  • There would be 5 new pools added each cycle that would be voted on from the 10 most popular suggestions.
  • From those 5, the 3 most popular would become permanent pools.
  • The 5 lowest performing UNI pools would go to vote and the 4 that aren’t saved would be removed.
  • Every cycle, we would remove 4 UniSwap pools and add 3 SushiSwap pools. This results in a net 1 pool being removed every month.

All featured pools would be subject to governance vote.

The mechanism proposed on xDai

The implementation of featured pools on the xDai section of Bao Finance would be different from the implementation on Ethereum main net.

5 new pools would be created with a weight of 1000.

No pools would be archived on xDai to make room for the featured pools. All new pools would be BaoSwap liquidity pools. The duration of each cycle would be limited to 30 days.

Around the 21st day of the cycle the following process would take place :

  • The 5 worst performing BaoSwap pools based on Total Value Locked would be put on the chopping block. The 3 pools that receive the most votes would be saved and not be archived
  • The top 10 pool proposals on the governance board that were accepted would be subject to votes for the next cycle. The three most voted pools would be selected as featured pools for the next cycle.

When the cycle ends this process would happen :

  • The Baoswap pool on the chopping block would move to the archived section, where users could harvest/unstake their LP tokens.
  • The 3 best performing featured pools based on Total Value Locked would be rewarded a permanent pool in Bao Finance on xDai.
  • The 2 less performing featured pools based on Total Value Locked would move to the archived section, where users could harvest/unstake their LP tokens.

All pools would be subject to governance vote.

The mechanism proposed for PandaSwap & other franchises

PandaSwap has just launched and the DAO and governance mechanism is not in place yet. The same will apply to newly opened franchises.

The following proposal would not be subject to vote by the BAO community, but by each franchise with their own governance.

We would add two pools with a weight of 1000 that could be featured for 30 days. Those 2 pools would be community voted pools proposed by the community with a process similar to BAO.

For those pools, we aim to create relationships with projects in the DeFi space that are trying to achieve, like BAO, a multichain deployment or implementation. The community could still propose a project that is native in the chain of the franchise.

There would be no chopping block, nor permanence reward to be gained on the franchises at the moment. Those mechanisms should be voted by the DAO of each franchise in the future.

11 Likes

I like the idea and would like a vote.

I agree with the proposal.

I agree with the proposal as well.

For xDai,

a) why pool weight 1000?
b) Are 5 new pools created every 30 day cycle? It seem a lot of pools over time

In the second bullet point you wrote top 10 pool proposals selected for gov vote, 3 selected to be featured. Should this be 5 as per item a)

This entire proposal would need to be reviewed with the recent events :/

1 Like