AIP #7 - Expecto Patronum: A shield for all frogs

I vote in favor of this proposal.
This is a win-win: by unifying the FrogNation ecosystem, the whales get washed/bought out w/ only small portion of the backing price treasury, and the remaining treasury go towards strengthening the ecosystem as a whole with Abra/$SPELL for long-term growth for ALL…onward and upward FrogNation!

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Not all wMEMO investors were 1st-time FOMO investors and/or leveraging without understanding the protocol/mechanism. Many were investing in the DAO for a long-term strategy and got caught up in the rekkage…

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Agreed, the $wMEMO token holders need to be compensated fairly for any swap w/ $SPELL

People don’t get this proposal… It is an option for WL frogs who want to keep going to keep going… Also a way for people who want out to get out at backing price… Personally I am very bullish SPELL and am keen to move on without the FUD and toxicity of WL…Seeing Abra become more resilient to mercenary LP by making moves to acquiring protocol owned liquidity that can be depended upon is a great move to sure up strength of the protocol and DeFi as a whole.

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What is the discount on assets acquired through these DAO swaps? As another user mentioned, why not just swap spell for crv directly and avoid all these complicated mechanics? This could happen in a much more controlled and predictable way than what is currently proposed.

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Creative but still not good enough, Daniele is trying, Guess we should listen tho his other options

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Interesting read, but isn’t that a bit roundabout?
What about acquiring liquidity for the protocol itself instead of still being dependent on the capital of others?

This isn’t supposed to be an opportunity for a different project to make gains…It’s supposed to address holders in Wonderland…It’s this kind of shit that got us where we are now.

I support this.

This keeps wonderland community members that want to stay in the fam. They gain spell at bottom of the market with massive upside. Abracadabra is already a revenue making beast. It would acquire CRV adding deep liquidity and stability. Spell wins by ending Crv bribes and Spell goes to zero emissions. Ends Dilution. 3 month transition similar timeline as current emissions drawdown. Crv<>mCrv entering the stage and welcoming Curve community + new cauldons. sSpell staking has even more rewards as a result. Multi sig with rock solid top protocols Curve, Yearn, Stake, & Convex. Instant market cap boost. Multichain + Marketcap + Community. Better, faster, stronger. Cooler heads will prevail. This has been an incredibly successful team. Winners win.

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First of all, I would like to thank the team for working on solutions how the future of the protocol can be successful. However, I feel like the current “Expecto Patronum” proposal is not the best option possible and would therefore like to propose the following option how Abracadabra could accumulate CRV without the mixup with other projects and potential problems of arbitrage and supply shocks. I look forward to comments.

As of now, protocol rewards are used to purchase SPELL on the open market to then distribute them to sSPELL holders. I propose to:

  • Not buy SPELL on the open market but from Abracadabra’s treasury.

  • This way, Abracadabra can use protocol proceeds to purchase CRV on the open market.

  • sSPELL holders still receive their share in the protocol’s revenue.

  • Once “enough” CRV has been acquired or the treasury assets are all distributed, this process stops and protocol proceeds are again used to buy back SPELL on the open market.

Obviously, this would need to be structured in detail (e.g. using TWAP prices to calculate fictive buyback amounts, share of SPELL allocated to buybacks and share allocated to bribes etc.), but I have full confidence in the team’s ability to do so.

  • This option would be less complex compared to purchasing other DAO’s - potentially illiquid (e.g. BSGG) assets.

  • The option would not be an arbitration game where either SPELL holders or DAO token holders must loose out.

  • The option would be less risky compared the the other proposal: How many DAO holders will actually sell, for what price etc. Abracadabra is profitable and has clearly predictable cash flow.

  • It would also not result in a potential positive supply shock, which usually results in sell-offs.

  • Newly distributed SPELL would actually be allocated to the very stakeho(d)lers with the biggest skin-in-the-game, thus potentially making the process largely market neutral.

Obviously, it would be very important that such a procedure only runs for a limited amount of time, so that actual market buybacks commence after a while.

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I can get behind this idea 100%. Addresses buyback slippage, supply shock, spreads out CRV purchasing mitigating price run-up. Will most likely need to continue with emissions to bribe incentives for mim3crv until enough CRV is captured by the treasury.

But can see this playing out as bribes get tapered down as treasury CRV voting increases, and eventually 0 emissions. Could even implement a 10-25% of revenue allocated to treasury for continued purchasing CRV after bribes are phased out (or fund other MIM liquidity growth strategies).

My main concerns with the original proposal are the same as the ones mentioned:

  • It leaves Spell exposed to the arbitrage between DAO token market price and their backing price. This could bring heavy sell pressure to Spell token market.

  • Supply shock of deploying so much Spell tokens into circulating supply, all at once, will also likely bring sell pressure to Spell market.

If the original proposal does go to vote, I think this proposal should at least be added to the same vote as an alternative option.

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I’m confused why there are so many people pointing out what is good for wmemo holders as if that should be any consideration in this proposal. Wmemo holders need to take their hopes for a lifeline elsewhere. This is about Abracadabra and spell holders only.

With that said, I don’t think I can support this option as proposed as there are a number of issues that Atrain and Roush outlined. In addition to that, I think we need to clearly delineate Abracadabra from the other Dani projects to try to keep Abra’s reputation from tanking any further from being distantly associated with wonderland. Any proposals that even have the resemblance of self dealing can’t be allowed to move forward.

Atrain’s proposal is excellent and addresses a lot of the drawbacks with this proposal. I would support Atrain’s proposal and don’t see any drawbacks to acquiring POL in this manner aside from it taking longer. I think an alternate proposal for Atrain’s suggestions needs to be added.

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I prefer this way of gaining CRV a lot. Especially not having to get involved with projects I would need to do a lot of research to understand before I know if it’s a good an idea or not.

Completely behind the @A-Train version of the proposal even if I’m not against the original one by definition.

It manages the sell pressure risk a lot and prevents liquidity issues along the way.

Also, one thing that can be considered is that since the buyback is now done from the treasury, this process can be automated without any front run risk with the proper price oracle. I’m not exactly sure how that’d be implemented, but it could be a great argument for staking to have revenues distributed continuously.

As far as I am concerned, the buying of CRV tokens with revenues ( 10/15% of weekly MIMs ) can continue even after the “0 emissions” threshold has passed because owning a CRV treasury has a lot of implications :

  • Receive 3Crv tokens as rewards from Curve, those can be used in multiple way :

    • Hold the 3Crv to be able to rebalance the MIM-3Crv pool in case of an extreme unbalance event like the one that happened last week.
    • Pair the 3Crv rewards with a predetermined amount of MIM from revenues to deposit and own MIM-3Crv LPs in treasury ( effectively growing POL ). The amount of MIM to use here can be capped, not sure it should be but it can be.
    • Sell them on the market to buy more CRV or any other asset that could be useful to Abracadara in the future.
  • Receive any airdrop from other projects that can also be used as a farming treasury or as voting power if possible ( EPS is already deployed on BSC, more are to come on Polkadot ecosystem ).

  • ( Speculation ) If SPELL stakers are allowed to vote for the opening of new cauldrons, and the MIM replenishes amount of those cauldrons, Abracadabra could propose a bundle to new protocols :
    “Bribe our SPELL stakers with your native token, and a cauldron will be opened for you, with MIM replenishes, and a gauge on your Token/ETH Curve v2 pool voted with our veCRV”. Depending on the amount of veCRV Abracadabra holds, this could be applied for a continuous vote bringing more rewards to the new protocol pool, hence attracting more users on Curve, and potentially on Abra.

Anyways I am really happy to see Abracadabra going that route, building a treasury has become critical in my opinion to protect ourselves from mercenary LPs and to allow a faster and bigger expansion of the project.

:frog: :handshake: :mage:

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I support this proposal as is. It’s been 72 hours already? Where is the vote?

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No need to rush things ser this is an important proposal. Also, the A-Train proposition is way more interesting for Abra in my opinion so we should get more brainstorming around it.

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I think this proposal is too complicated. There are too many ways this deal can go south and insiders/market manipulators/hackers could take advantage this situation for themselves. Again.

I propose to:
Liquidate all treasury assets to stablecoins, USDT USDC MIM UST DAI USDH etc etc.

Create an app that checks the age of the tokens held. Everyone will need to interface with the app to log/register their wallets, so that the app can trace the date of purchase. Have that app audited by a 3rd party.

Vote on a modifier based on the age of the asset. I vote for an exponential modifier that will reward older holders over younger ones.

Create an app that will disburse treasury assets. Have that app and smart contract audited by a 3rd party.

Everyone should expect that we will take a loss. including holders that have held for months, and holders that have held for days. It was a risk we were all willing to take.

Those that collateralized their tokens and were liquidated did so knowing the risks. I’m sorry we can’t help everyone.

f you got out early and took a loss, know that this proposal will probably do the same for everyone that held to the bitter end.

Everyone should know, that if we trace all the wmemo back to the time of purchase, there is a very small chance that we can figure out who was behind all the dumps and liquidations. Those wallets will probably vote against this proposal.

At least the founders and seed investors should be happy with this proposal. This should be a windfall for them.

This proposal isn’t about Wonderland. Please read again.

Can we exclude late buyer of WMEMO from this?

at what discount would we buy SPELL with our DAO token ?