Abracadabra Money <> Libra Exchange Partnership Proposal

Introduction:
Libra Exchange is a community-centric decentralised exchange and automated market maker (AMM) forked from Velodrome and Solidly, that will be launched in the Arbitrum (https://arbitrum.io/) ecosystem initially on April/May 2023. We aim to provide low-cost transactions with minimal slippage for both highly correlated and uncorrelated digital assets.

We have plans to go beyond being just an ordinary DEX, or just another Velodrome fork, and will be creating a robust financial ecosystem that consists of a launchpad, structured trading solutions, etc, and would like to go omnichain, by making $LIBRA (ERC-20 token) and $veLIBRA (ERC-721) omnichain fungible tokens (OFT) on LayerZero. This will allow our users and various defi protocols to earn yield, vote for emissions, do governance voting, and receive bribes in Libra Exchange’s affiliated projects on other chains in the future.

All developments mentioned above will be launched in phases.

Libra Exchange will fulfil the following objectives:
● Serve users well as the de-facto liquidity layer for networks we have presence in, providing them a decentralised exchange for low-cost transactions with minimal slippage
● Create a sustainable incentivization and emission system to ensure sufficient incentives for later entrants
● Provide protocols launching on networks we have presence in, with the features to enable them to bootstrap and sustain liquidity effectively
● Provide a one-stop defi solution for retail traders and various defi protocols to earn yield, and bootstrap liquidity respectively.

Vision:
Libra Exchange believes in creating an equitable relationship with partners that shares the same mission.

Collaboration details:
Magic Internet Money ($MIM) has proven itself to be one of the top pioneer decentralised stablecoin, and is present on at least 9 different chains. Our team is very impressed by Abracadabra Money’s achievement, and would hope to have Abracadabra Money as our launch partner.

We are also keen to help Abracadabra Money to bootstrap $MIM and $SPELL liquidity (MIM-USDC, SPELL-WETH, etc) on Arbitrum via Libra Exchange. This will provide an avenue for $MIM and $SPELL holders to yield farm on Arbitrum, and chains that we have presence in, after OFT has been implemented, which we hope will also help Abracadabra Money to boost $MIM adoption.

Lastly, we hope to explore more collaboration opportunities with Abracadabra Money (such as degen box and leveraged farm) across different chains in the future.

Incentivisation:
To have Abracadabra Money as our launch partner, we will be allocating our vote escrowed NFT, $veLIBRA (locked for 4 years) to Abracadabra Money. Abracadabra Money can use it’s allocated $veLIBRA to vote for $LIBRA emissions to $MIM and $SPELL liquidity pools, and to earn trading fees from these liquidity pools. Additionally, Abracadabra Money team may choose to receive bribes, and to vote for other liquidity pools. Rewards and trading fees earned will be compounded into more $veLIBRA, creating an exponential effect to early $veLIBRA accumulation. As that position grows, it will direct additional emissions to $MIM and $SPELL pools, generate fee rewards and bribe revenue that can also be compounded into additional $veLIBRA for Abracadabra Money.

While the initial focus of this pilot will be to maximally compound rewards, once the $veLIBRA position reaches Abracadabra Money’s targets, Abracadabra Money can begin to repurpose fees, bribes, and emissions for other purposes. The goal being to reach a state where Abracadabra Money can bribe, and sustain liquidity without needing additional $SPELL emissions

There will be NO minimum TVL obligations for Abracadabra Money, $MIM and $SPELL liquidity pools.

Team:
The team behind Libra Exchange has years of experience in their respective domains, and has deep blockchain knowledge. Read more about the team here: A closer look at the people behind Libra Exchange | by Libra Exchange | Feb, 2023 | Medium

Security:
Security is the top priority for the team, especially when we witnessed the unfortunate hack on a top DeFi protocol just weeks ago. Libra Exchange has underwent an automated smart contract audit with Salus. The automated scan was done at the highest sensitivity, and the Libra team is informed of all high risks, and all fixes has been acknowledged and worked on. Full manual audits with top firms will commence after public sale.

Link to report: contracts/audits at master · LibraExchange/contracts · GitHub

Salus (Salus) is a Binance Labs portfolio and a trusted security partner in Binance and BSC ecosystem.

Links:

Website: https://librax.io (Introduction - Libra Exchange)
Gitbook: https://docs.librax.io (Introduction - Libra Exchange)
Twitter: https://twitter.com/LibraExchange
Medium: https://libraexchange.medium.com (https://libraexchange.medium.com/)
Discord: ♎ Libra Exchange

2 Likes

Firstly thank you for the proposal. Excellent with teams sharing proposals publicly on the forum. So with regard to the proposal itself, I feel it’s unclear what you expect of Abracadabra, if the protocols entered a partnership. Also what do you think sets you apart from competitors on Arbitrum? To me it seems every time I look, there’s a new DEX on Arbitrum, so TBH. competition seems tough. Also I think that Abracadabra already has “friendly” relationships with other DEXes, so I maybe worry that entering new partnerships could perhaps weaken such relationships (e.g. Abracadabra was a Camelot Launch Partner).

1 Like

Hi mDreamy4

Thank you for your feedback. Here at Libra, we completely understand your concerns and I would like to address them here.

  1. We do understand that there are many DEXs and Velodrome forks on Arbitrum, and competition is stiff. However, we do not want to be just an ordinary DEX/fork and will be launching a full suite of defi solutions, unlike our other competitors which are just DEX. Here at Libra, we can visualise how our DEX business can complement other defi solutions to create an ecosystem, such as a launchpad, structured trading solutions, etc to cater to the needs of different retail traders and other defi protocols.

We can explore several yield strategies with Abracabra Money for structured trading solutions plan once we have launched our main DEX.

  1. We have been in talks with Stargate Finance team, and got their support to implement omnichain integration. This is something which is not being done by other DEX and Velodrome forks on Arbitrum. Stargate Finance team has also agreed to offer us the technical advice and guidance to do so. Currently, this is under Stargate Finance Commonwealth governance proposal, which Libra is very optimistic of passing (Please refer to Stargate Finance’s Commonwealth, as I am unable to share links here).

We are happy to work with Abracabra Money on every chains that we have presence in, in the future, and to support $MIM and $SPELL liquidity on these chains.

  1. I would say all, if not most Velodrome forks on Arbitrum are not audited at all. We have completed an automated audit with Salus, and will be going for full manual audit very soon. Salus is a Binance Labs’ portfolio company that’s active and well known within the BSC community and hence its reputation and trustworthiness should not be an issue. We at Libra takes security as priority and ensure everything is done up to the community’s expectations.

  2. Regarding Abracadabra Money’s existing relationships with Camelot Exchange, we completely understand that as well. We believe that one of the ethos of Defi is to have a variety of options for defi users to choose from, and not being forced to only deal with 1 or 2 players in the field. Also, there are several Camelot Exchange’s partner protocol that are partnering with other DEX on Arbitrum as well. Likewise, many decentralised stablecoins are forming multiple partnerships on Arbitrum, and on other chains.

Moreover, we are NOT requesting Abracadabra Money and it’s users to migrate all their liquidity from Camelot to Libra, but to provide an alternative for users to choose, trade and yield farm on and hence boosting $MIM adoption and utility on Arbitrum.

Once again, I will like to take this moment to thank you again, for getting us, and I welcome any questions, concerns or queries.

1 Like

I’m still slightly unsure what you expect of Abracadabra, should Abracadabra and Libra Exchange enter a partnership. Could you maybe elaborate in this regard?

1 Like

Hi mDreamy4

There will be NO obligations in terms of minimum TVL, etc for now. Should we need any in the future, we will discuss with the team, and submit another governance proposal if that is what you are asking.

We hope Abracadabra can be our launch partner, and have $MIM and $SPELL liquidity pools on Libra Exchange. Abracadabra will receive our veNFT, and vote for emissions to be directed to $SPELL and $MIM pools.

We would also only need Abracadabra to share about Libra Exchange to your community, letting them know that they can trade $MIM and $SPELL, and even yield farm on our platform.

$MIM is one of the top stablecoins with significant trading volume. As a DEX, it will be wonderful to have $MIM on our platform. Moreover, Abracadabra shares the same vision as Libra Exchange, of going multi-chain. This is something that we can work together, where Libra Exchange can support $MIM and $SPELL liquidity in all chains we have presence in in the future.

Thank you!

1 Like

So, just to be sure, you don’t expect Abracadabra to bribe on launch, but in the future that would be up for discussion?

1 Like

Yes, I would say it is optional on Abracabra’s part, on whether to bribe or not. Will discuss with Abracabra team again if we hope you guys can support with some bribes.

But as mentioned in the governance proposal above, we hope trading fees and rewards earned by Abracabra team can be used to purchase more $LIBRA, and lock them up for $veLIBRA to increase your voting power, and hence more emissions to $MIM and $SPELL liquidity pools.

By voting for a liquidity pool, you will earn trading fees and rewards associated to that pool you voted.

2 Likes