This proposal seeks community approval to allocate a total of US$10,000 worth of SWTH from the Switcheo Development Fund (SDF) to the designated wallet address held by StaFi Hub, \u003cswth1j8rs8vx45q6puzy9rpchtkchdxp5h4qcmvn9jy\u003e, for the development of liquid staked SWTH ($rSWTH) following the terms outlined in the Memorandum of Understanding (MoU) between Carbon and StaFi.
The allocation of the overall funding is set in 3 phases:
• On passing of [CIP-32] proposal: First 30%
• On delivery of rSWTH: Next 30%
• On completion of incentives for rSWTH/SWTH and rATOM/ATOM pools: Final 40%
In line with the above, passing of this proposal would instantly transfer 402,164 SWTH* (i.e. US$3,000 worth of SWTH) to StaFi Hub.
*This calculation is based on 1 SWTH = $0.00745965, as determined on CoinGecko, at the point of submission.
To promote transparency and help the community make an informed decision, the details of the MoU between Carbon and StaFi Hub are as follows:
1. Roadmap and Deliverables
The schedule for funding is as follows:
• Upon approval of the SDF grant: First 30%
• Upon delivery of $rSWTH solution: Next 30%
• Upon completion of incentives for rSWTH/SWTH and rATOM/ATOM pools: Remaining 40%
As agreed with StaFi, the development work for $rSWTH will be completed within 2023Q1.
2. Provision of SWTH Liquidity
Over an agreed period of six months, the Switcheo Labs team will provide
• 1% of the circulating $SWTH token supply to provide initial issuance for $rSWTH on Demex.
• Another 1% of the circulating $SWTH token supply as initial liquidity for rSWTH/SWTH pool.
The circulating supply of SWTH tokens, as determined on CoinGecko, is 1,720,665,159.
Disclaimer: Should this proposal be passed, the team would require an undelegation and buffering period of 50 days to unbond our staked SWTH.
3. Additional Liquidity Incentives
• $rSWTH pool: Together with StaFi Hub, Carbon will launch a dual-token (with $SWTH and $FIS) incentive campaign to incentivize the $rSWTH liquidity pool. The incentives will be split 50-50.
• $rATOM pool: Alongside Carbon, StaFi Hub will provide incentives in $FIS tokens, the utility token of StaFi Hub, to bootstrap the adoption and liquidity for $rSWTH and $rATOM. StaFi will provide 10,000 quantity of $FIS incentives (about US$4,700, at the time of writing) for the rATOM/ATOM pool on Demex every week for the initial two weeks. If there is a high demand for rATOM, StaFi may extend the incentives for up to an additional four weeks.
4. Further Integration of Staked Derivatives from StaFi Hub to Carbon
• Carbon and StaFi Hub will collaborate to integrate the Liquid Staking Derivatives ($rATOM/rIRIS/rHUAHUA) issued by StaFiHub into Carbon. The order of integration is as follows: $rATOM token, $rIRIS, $rHUAHUA.
For more information on benefits and risks, please refer to the Commonwealth proposal here: https://commonwealth.im/carbon-protocol/discussion/9532-cip32-allocation-of-sdf-funds-to-stafi-hub-for-development-of-liquid-staked-swth
[Cast your votes!]
• Voting ‘Yes’ on this proposal indicates consent to transfer a total US$10,000 worth of SWTH from the SDF to StaFi Hub for the development of liquid staked SWTH ($rSWTH) following the terms outlined in the Memorandum of Understanding (MoU) between Carbon and StaFi.
In accordance with the agreement,
• Should this proposal be passed, 30% of the total amount (US$3,000 worth of SWTH) will be immediately transferred from the SDF to \u003cwallet address: swth1j8rs8vx45q6puzy9rpchtkchdxp5h4qcmvn9jy\u003e, which is managed by Stafi Hub.
• At the point of submission, the price of SWTH, as determined on Coingecko, is $0.00745965. US$3,000 translates to 402163.640385 SWTH ≈ 402,164 SWTH.
• This means that passing of this proposal will transfer 402,164 SWTH from the SDF to the designated wallet address held by StaFi Hub as indicated above.
• The subsequent 70% will be allocated to StaFi when the relevant milestones have been hit.
This proposal is initiated by the Switcheo Labs team.