Firebird is nesting on Fantom
Summary — tl;dr
1) Temporary halt of mHope staking rewards
2) Bridge current treasury to Fantom for initial liquidity. The pool will be open for community contribution and 70% of swap fees will go to liquidity providers whilst 30% will go to build further liquidity — APR for liquidity providers will be estimated at a temporary ~24%.
3) All platform fees collected on all chains will be used to build up liquidity on Fantom
4) Firenest pool will be live on Fantom on January 24th (tentative date)
After 6 months, or when we reach the $5 million liquidity mark, whichever comes first, DAO will vote for continued reinvestment or to pay dividend to mHOPE stakers.
Reasoning for decision:
Rewards have been low in the last 12 weeks totaling 39,418.80 USDC and shrinking every week. Putting those rewards in a staking pool would net barely 15% APR for mHOPE stakers while using treasury funds to jumpstart our liquidity on Fantom could prove to be a long term efficient revenue stream as proven by on-chain swap metrics and projection of profits.
1. Volume and tokens traded on first 11 days of January
2. Projection of profits based on depth of Firenest pool
After 21st January no more USDC rewards will be deposited in the mHOPE staking pool.
mHOPE stakers will not have their tokens unlocked during this period or until more data for tokenomics is collected and concrete plan issued, however, 40000 USDC that has been used to provide initial liquidity will be airdropped to them at later date or/and will have preferential treatment when migrating to new tokenomics.
After 6 months or when the 5 million liquidity mark is reached, mHOPE stakers will have the right to vote on further steps, either distribution of swap fees (per week or in batch) or continuing with the reinvestment process.
More info on Firenest pool will be issued prior to launch but as mentioned, it will be open for community contribution and will use mainly stable tokens
3. Firenest pool setup
Our plan of creating OHM fork tokenomics has been put on stand-by and will be reevaluated once we are able to thoroughly test Firenest pool efficiency and security before moving forward, and while additional delays are frustrating they are necessary as our goal is to create a system that will endure the test of time while keeping both current and future token holders satisfied.
Aggregation fees on all chains need more data until it is proven that adding them won’t alienate our user base and cause negative feedback.
These are the first steps that will be made in order to grow our own liquidity and create revenue streams for protocol while also maintaining our high quality of service.