[RFC] Aaavegotchi 50k BAL Grant Application [ve8020 Program]

Service Providers Grants
1 

Author(s): @AL_GG @sudeepb02

Status: BIP

Date Applied: 2023-03-14

Date Updated: yyyy-mm-dd

Date Ratified: yyyy-mm-dd

Vote Start Date: yyyy-mm-dd

Vote End Date: yyyy-mm-dd

BAL grant amount: 50k BAL

80/20 Pool live on Balancer

Summary

This grant application requests 50k $BAL to be awarded to Aavegotchi as a participant in Balancer’s program outlined in BIP-146 which aims to support all systems involving the staking/locking of 80/20 BPT pools with TVL rewards achieved over time. This proposal follows an internal core vote at AavegotchiDAO where we have already committed funds to Balancer for liquidity provision for long-term management with the removal of the DAICO bonding curve (More here).

As part of the wider treasury management strategy passed & ratified in AGIP65 the ve80/20 pool has been established, maintains $4mn USD in current TVL, and is protocol-owned with a long-term outlook in value locked & volume generated. More stats on the pool can be found here (it is only about 5-days old at time of writing).

About Aavegotchi

Aavegotchi is an open-source, community-owned NFT gaming protocol, with strong ecosystem governance components. Aavegotchis themselves are fully on chain crypto-pet NFTs that have modifiable traits, use aToken compability to act as DeFi savings banks, and are playable in the Gotchiverse and elsewhere.

The diversity rooted in being a GameFi application makes Aavegotchi a unique platform to grow a player base from and we have acquired a wide range of players like DeFi power users, hardcore gamers, NFT enthusiasts, creators, and much more. With $GHST being a centric element to our ecosystem we think BalancerDAO will greatly benefit from and contribute to our ecosystem growth while experience complementary revenue generation as the demand for our tokens increase.

Qualification Reasons

Project Track record – AavegotchiDAO started in 2020 with bootstrapping from a DAICO bonding curve that was just removed to lock in fixed-float supply for $GHST, we are a leading DAO by snapshot voting metrics, and have a rich NFT ecosystem worth over $20mn+USD between two generations of aavegotchis, wearables, and land sales.

Another key qualification reason is embedded in our long-term view of committing liquidity via DAO mandate & for supporting the growth of our token ecosystem.

Market Activity – Our circulating market cap is 51,157,239 $GHST out of a max supply of 52.747mn tokens approximately.

With a strong Polygon presence new and existing users will continue to drive trading volume in the ve80/20 pool to gain exposure to the Aavegotchi ecosystem while treasury unlocks bolster an attractive fixed supply & DAO market strategy conducive to speculation & volatility.

Unique protocol features like a 24/7 bid-to-earn auction house or the upcoming Gotchichain – a polygon Supernet w/ $GHST as a gas token – should add to demand and coincide with our growth and roadmap for 2023.

For all these reasons we believe that we are strong candidates for the $BAL incentives program and believe this is a great way to strengthen and align incentives between our two DAOs, especially following the $BAL ↔ $AAVE token swap.

Some more statistics:

  • ~$5mn USD average TVL (non-protocol owned) – Quickswap GHST-USDC pair

  • One of the First dApps on Polygon (March 2021)

  • Only GameFi token listed on AAVE

  • BAL incentives will go to ve8020 lockers only, as defined in the BIP-200.

Reference/Useful links

2 Likes
2

I’m really happy to see GHST choose to adopt an 80/20 pool after departing from the bonding curve mechanic. The question I have is about the “ve” part - is this 80/20 BPT part of a larger tokenomics locking/staking system at Aavegotchi? Reading the vote you all did it sounds like this pool is just protocol owned liquidity.

1 Like
3

We are equally excited to have our pool on Balancer!

And correct. This is protocol-owned liquidity and is part of a wider strategy at Aavegotchi to put unlocked treasury assets to work following the bonding curve. Our 80/20 pool falls under the DAO liquidity provision mandates outlined in AGIP65.

4

The ve8020 incentives program is designed to incentivize the adoption of ve or similar staking systems where users lock 8020 BPT rather than locking the token itself. In your case this is simply your protocol owned liquidity which can be removed at any time and is not part of any larger tokenomic system. I don’t think this qualifies for the program.

What we can do though is you can propose a gauge for your pool and we can include your pool in the “core pools” on Polygon. We use all protocol fees earned on Polygon to bribe for Polygon core pools proportional to TVL. By including your pool you’d get to earn BAL (and AURA when it comes) just for parking your liquidity with us. This is a better fit to me.

5

Sorry maybe I may have added some unnecessary confusion. Our intention is to lock the 80/20 BPT as part of the BAL rewards program & commit to locking our liquidity w/ Balancer for a long time.

6

The issue is not the locking of the BAL you’d get from this grant. The issue is GHST/DAI liquidity is not being locked anywhere. The incentives program is for projects like Timeless where they have users lock LIT/WETH 80/20 BPT into veLIT. If Aavegotchi had users lock GHST/DAI 80/20 BPT for veGHST then you’d qualify for this program.

1 Like
7

Okay I see what you’re saying.

I think we want to go that same route that Timeless has proposed with having individual users lock their tokens while also having DAO liquidity locked into that veGHST process for minimum 4months. We’re planning on offering native token rewards in $GLTR for users that contribute to this from AavegotchiDAO’s side too.

So we want to lock our Protocol-owned BPT liquidity & ultimately incentivize users to add to the locked pool with liquidity contributions if that helps with eligibility concerns.

1 Like
8

ah gotcha. once that system is deployed then more than happy to take another look at supporting this proposal. Numbers from your pool are pretty solid so far so once you get the ve/staking implemented it should be a good fit.

1 Like
9

I am changing this topic to [RFC] so that we don’t pick it up every week when looking for BIPs ready to execute.

Feel free to change this back to BIP-XXX when you’re ready for it to be included in a snapshot.

1 Like
10

hey there.

I want to apologize for not making this change on my own and abandoning this forum post altogether.

I do not believe we ever locked liquidity and will work to see if this is something we can pass internally before rehashing all this again.

Thanks,

AL