Proposal: Onboard wsSQUID (Wrapped Squid DAO staked $SQUID) as Collateral

đź’ˇIdea Discussions
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Context

Squid DAO’s mission is to be the ultimate fair launch project. Squid DAO launched leveraging the Nouns DAO auction mechanism, thereby enabling anyone to bid and participate in its initial offering, regardless of connections and status.
SQUID is a token that is designed to grow in value versus ETH. So as ETH grows in value, SQUID should grow in value even faster. Every SQUID is backed by at least 1 ETH. However, through the accumulation of income-generating assets in the Squid treasury and market determiners, SQUID can reach valuations well beyond that of ETH

The primary users in Squid DAO:

There are 2 main strategies for market participants:

Hibernating and Bonding

Hibernators stake their SQUID in return for more tokens;

Bonders provide LP tokens in exchange for discounted SQUID after a 5-day vesting period.

Further on the 2 strategies mentioned above, to participate in governance, you can lock your tokens to gain veSQUID, or purchase an NFT through auctions, or on the second-hand market.

Onboarding Squid Dao ($sSQUID) to Abracadabra would allow users to borrow against $sSQUID.

Motivation

Abracadabra is a fast-growing multichain protocol that would make a strong partner with Squid DAO and its community. Right now, Squid DAO is bridging its $wsSQUID token across chains to make liquid staking and LPing more accessible for the masses - it is currently available in both Fantom and Avalanche. Abracadabra currently offers other ETH staking vaults, such as Yearn stETH. Squid DAO is important to hedge against the risks of other ETH staking services as well as naked ETH strategies (in particular, because of its decentralized nature Squid DAO utalises yield strategies to diversify earning potential of its treasury ETH) and will be an important addition to the DeFi space in general with its innovative approach to treasury management and partnership onboarding.

Squid DAO derives its uniqueness not only from a combination of Nouns DAO and OlympusDAO mechanics, but also from the deployment of the Ethereum in its treasury. Having one of the largest treasuries of Ethereum in DeFi, Squid DAO leverages this in 2 ways. Firstly, through investing in safe yield-bearing strategies, and secondly, by fostering mutually beneficial relationships and partnerships across the DeFi space…

Proposal

Allow wsSQUID (wrapped staked $SQUID) as collateral with the same pool specifications as the first Cauldron for wMEMO (Maximum collateral ratio 30%, liquidation fee 12.5%, borrow fee 1.0%, interest 5.5%)

Justification:
Just like wMEMO initial roll-out was designed as a test run to see the success of the cauldron and in the event of liquidations would the cauldron become “insolvent”.
It is recommended that the initial roll-out of an $wsSQUID cauldron be on that basis and a second cauldron be introduced based on the success of the initial launch.

Price Oracle

SQUID/ETH Sushi LP (SLP) combined withETH/USD Chainlink

Benefits

  1. gain very high exposure as Abracadabra is highly used and users will notice is $wsSQUID is added (a sign of comfort from the skeptical and a vote of confidence that in an event of a liquidation we are very well placed to cover, sufficient LP depth)

  2. $MIM is cross chain and is used a lot on Arbitrum (ETH L2), Fantom, AVAX and now on MoonRiver ($MOVR)

Considerations/Risks

Squid DAO is quite new on mainnet - since October 29th, 2021. However, the risk can be considered to be mitigated to a great extent because of:

Staged rollout has been successful

TVL is close to 16,000 ETH (USD 64 Million as of writing)

The protocol has not undergone an audit however it’s a fork of Olympus so large portions of the code have been audited as they are unchanged

This is just a mini road map of what the team is currently working on:

:white_check_mark: Deploy 250 ETH to crvstETH to farm CRV, CVX, LDO

:construction_worker_man: Harvest above rewards, and stake for voting.

:white_check_mark: Deploy 250 ETH to yvcrvstETH to lev up with MIM and farm Convex

:construction_worker_man: Leverage this up with MIM. and depoly to crvMIM on Convex

:white_check_mark: Add Dashboard to current UI

:white_check_mark: Deploy weSQUID contracts

:construction_worker_man: Add wsSQUID to UI

:white_check_mark: anySWAP Bridge wsSQUID to Arb, AVAX, BSC, ETH, FTM, MATIC is LIVE

:white_check_mark: LP on wsSQUID on AVAX

:white_check_mark: LP on wsSQUID on FTM

:construction_worker_man:LP on wsSQUID on ARB

:white_check_mark: Revamp the website

:white_check_mark: veSQUID

:white_check_mark: veSQUID UI build

:white_check_mark: Deploy public GH Repos

:white_check_mark:SNOOP DAO nft auto royalty changed to 10% to SQUID MSig

:white_check_mark:Add Zap into Spawning (Bonds).

👷‍♂️ Deploy ETH to Liquity then LUSD to Pickle

Links and resources

Resources

Gitbook: Introduction - SQUID Dao

Squid DAO website: https://squid.xyz

Opensea Collection: https://opensea.io/collection/squiddao

Dune Analytics: https://dune.xyz/0xvisual/Squid-DAO

Wallet Addresses

Genesis Deployer Wallet: 0x85277BD3D3273994Ce65FA1Bb9D0bf7Da0b1980b

Contracts & More Multisig Contract: 0x42e61987a5cba002880b3cc5c800952a5804a1c5

NFT Contract: 0x7136ca86129e178399b703932464df8872f9a57a

$SQUID Contract: 0x21ad647b8F4Fe333212e735bfC1F36B4941E6Ad2

$sSQUID Contract: 0x9d49bfc921f36448234b0efa67b5f91b3c691515

APY Distributor: 0x2d99d0b76168e315f2dc699bff8d47be30b3f9d7

$SLP (LP Token) Contract: 0xfad704847967d9067df7a60910399155fca43fe8

Treasury Wallet: 0x61d8a57b3919e9F4777C80b6CF1138962855d2Ca

Time Locked Treasury Manager: 0x8CFC7e4AFC370A159fc84157fcAd82A766C774bE

SQUID/ETH SLP Bond: 0x5ab2493d75cbccd0762417839c83ab6b567d2f71

WETH Bond: 0xd9cf92F1e3758EdE8bb47e37CAc7927dFbd54c12

21 Likes
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Solid proposal. Im a SQUID, tryna be open and honest, and here to say that our community is insanely tight knight and full of kings who put in the work. Our devs our close to yours and were initially going to deploy a cross strategy first, but had to reprioritize… it would be amazing to finally partner.

Holding SQUID is good for Abracadabra because it is an ETH black hole and vacuum, and no matter what we think of ETH, it is still the dominant L1 in DeFi and what the tradfi MF’s with $$ denominate DeFi in… I am all for the frogs fucking the system, and whatever, fuck ETH… but consider it a hedge.

At the end of the day SQUID is backed by ETH, and severely undervalued atm…

10 Likes
3

As a frequent abracadabra user and an active member of Squid DAO, I fully support this proposal. As homme mentioned in the writeup, wMEMO has already set the stage for such an integration, so this should really be a no-brainer.

10 Likes
4

I’ve considered investing and using Abracadabra. I’ve been watching it for a while and there are a few folks in the space that have been bullish on the project. I’m invested in SQUID and a fellow KRAKEN and I’m in full support of this proposal.

9 Likes
5

As a fan and user of the Frog Nation protocols in addition to being an active member of SquidDAO, I very much support this proposal and welcome the days of Magic Squid.

9 Likes
6

This would be good for the lack of options on ftm. As of not we only have the 3 pools for ftm. Plus yearn.

8 Likes
7

Big fan of this Homme!

8 Likes
8

I am not a fan of this to be honest.

The fact that there was no audit is a big red flag for me, even if it’s a fork. We’ve seen such forks rug lately and I think we should be super careful about onboarding new ones.

I am also not exactly sure what’s the goal of this protocol, with OHM already on Ethereum, Wonderland on Avalanche, why having another one that’ll do the exact same stuff ?

I really think we have to be careful about those, those forks have been flourishing and have been attracting many new people without bringing much more than Wonderland and Olympus to the table.

4 Likes
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Thank you for commenting and engaging with this proposal. Community members such as yourself are the backbone to a successful DAO.

Regarding the issues you have highlighted above;

Risk of no Audit: contracts deployed are audited contracts forked from Olympus. Treasury is behind a multi-sig address is presented above on the proposal.

Goal/mission: we have blended NFT with Rebase tokenomics. We have innovated with the addition of veSQUID (vewsSQUID in its original name). Locked liquidity to reduce circulation of SQUID.
Aim is not to be a gaming centric currency nor a reserve currency but to acquire as much ETH as possible.
Unlike most projects/DAO we are quick to market with our treasury assets and earn yield on them. Plus we are already ready to go cross chain and you can check us out on anySWAP (wsSQUID)
Cross chain ready / Treasury deployment with yield / pure ETH backed
We are ETH maximalist at heart but the squid has far reaches

We have Partnered with OHM and have many more on the way (I am not at privilege to disclose) join our Discord and see for yourself if you have comfort with onboarding wsSQUID as collateral.

I myself and so many other team members + community members are here for our fellow Squid holders and non-squid holders.

Together as a community WAGMI

6 Likes
10

Nice work Homme. INcredible overview of Squid. 100% support this proposal

8 Likes
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Hello all, well done Homme. I would support this proposal without conditions. The SquidDAO founding team is committed to strong partnerships such as this one, and seeing leaders like Homme help steer the DAO down fruitful pathways. LFG!

6 Likes
12

fully support this proposal!

7 Likes
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I think it makes perfect sense to integrate Squid and MIM. I love both teams!!!

7 Likes
14

This def needs to happen. Perfect match especially considering our treasury position. This will be a really good first step for partnering.

6 Likes
15

Have been very impressed with SquidDAO team and feel like this would be a great partnership - let’s make it happen.

6 Likes
16

Big on this proposal, the SquidDAO team and community are some of the most levelheaded people in this space and it should be clear to anyone optimistic about ETH that the potential gain from a partnership stands to be immense.

6 Likes
17

Supportive of this proposal! This partnership will benefit both Abracadabra and Squid Dao

7 Likes
18

Hey!

I understand your concerns and I fully agree with you the amount of forks doing the same thing is damaging and will not end well.

However, SQUID is only using part of the architecture of the tokenomics from OHM and TIME but the purpose is not to be a currency but a hedge fund that invests ETH which is the main treasury asset.

Join the discord community is super helpful and the mission is a different one than OHM and TIME

3 Likes
19

Purpose is to grow one of the largest eth wallets. Squid is an exceptional project. @homme hit the main points.

4 Likes
20

I support this and fully believe the Squid community will generate significant borrow demand for MIM.

5 Likes