SAIP #50: Post Abracadabra’s RFP to take part in the LayerZero airdrop
Tl;dr The following proposal is for the DAO to approve the criteria that will be valid for Abracadabra’s RPF, that will allow our dao to reward its users thanks to the LayerZero airdrop.
Introduction
LayerZero recently announced a new initiative related to their upcoming token distribution via a Request for Proposal (RFP) program. This program allows projects using the LayerZero protocol to design their own token distribution models tailored to their specific needs and community goals. The initiative is part of their broader strategy for the Token Generation Event (TGE) set to take place within the first half of 2024
LayerZero emphasizes transparency and fairness in this process, encouraging projects to incorporate retroactive rewards for user activity and allowing flexibility in allocation strategies. Additionally, the RFP program specifies that 10% of a project’s total token allocation should automatically go to the designated developer addresses.
More information can be found here.
Abracadabra Money (MIM) - RFP
Introduction
Project Name:
- Abracadabra Money
About:
- Abracadabra Money is a leverage and lending platform that allows users to borrow its Omistablecoin MIM, using interest-bearing assets as collateral.
Leveraging LayerZero technology, Abracadabra offers omnichain functionality, enabling MIM to be seamlessly beamed across more than 13 blockchain networks.
This LayerZero-powered beaming service enhances interoperability and accessibility for a flat $1 fee, while also supporting Abracadabra’s multichain revenue-sharing mechanism. This integration ensures users can efficiently manage their assets and tap into DeFi opportunities across various blockchain environments, fostering a fluid and connected DeFi ecosystem.
LayerZero usage:
- Beaming MIM: Beaming enables users to transfer MIM tokens across the 13 chains supported by Abracadabra for a flat fee of $1.
- mSPELL Distributions: mSPELL rewards SPELL stakers with MIM tokens produced by Abracadabra Money’s revenue-sharing mechanism. Leveraging LayerZero technology, Abracadabra facilitates the transfer of earned MIM to mSPELL stakers across the supported networks.
- sSPELL and mSPELL messages distributions: LayerZero technology powers and manages cross-chain messages to determine the exact amount of MIM allocated to each staking contract across the supported networks.
Purpose of Distribution
Distribution Plan:
- 40% towards mSPELL and sSPELL stakers, in order to reward the retroactive usage of a LayerZero powered product, that plays a fundamental part in Abracadabra Governance.
- 25% towards MIM LPers, over the span of 3 months across Arbitrum, Blast and Ethereum mainnet. The deeper MIM liquidity, the easier it is for users to utilize MIM beaming services to freely move capital across chains.
- 15% towards the protocol treasury, to cover the protocol’s audit costs and to boost treasury revenues that will help DAO contributors shape new LayerZero focused products going forward.
- 10% towards MIM beamers, proportional to the amount beamed.
- 10% towards the development team, as requested by the LayerZero team.
Treasury Address: (Mainnet) 0xDF2C270f610Dc35d8fFDA5B453E74db5471E126B
Developer Address: (Mainnet) 0x045263fd58E91323DAca58Eb735A25b5649bcB12
Justification for Distribution Plan:
Abracadabra sits currently as the 13th largest protocol in LayerZero usage, thanks to the multiple LZ powered products we offer. This distribution plan is designed to actively reward actions related to our LZ based products. This design targets both retroactive usage of the main beaming infrastructure and the contributions of SPELL holders and MIM liquidity providers (LPers).
All the following metrics will be retroactive, and the snapshot will be conducted at the same time as LayerZero Snapshot 1.
MIM Beamers
MIM beamers have demonstrated remarkable activity, resulting in a substantial number of LayerZero messages being delivered. In under 12 months, MIM beaming has been used more than 2.1m times, facilitated transactions exceeding 432 million dollars in volume, involved 357k unique addresses, and generated $114,280 in fees for the DAO.
All addresses that have beamed more than 100 MIM per transaction will be included in the distribution and receive their pro rata share of the dedicated amount.
More information on the actual criteria will be coming shortly.
For more detailed information on MIM beaming, you can find it here.
mSPELL and sSPELL Stakers
Stakers of mSPELL and sSPELL inherently benefit from the LZ infrastructure. As integral parts of Abracadabra’s governance and ecosystem, they play a crucial role in the protocol’s operation and decision-making processes. Without their collective votes and support, this integration would not have been possible.
Because they play such a crucial role in the Abracadabra ecosystem, mSPELL and sSPELL stakers will receive proportional shares of the received LayerZero tokens in addition to being rewarded through the revenue-sharing mechanism.
sSPELL holders on mainnet, and mSPELL stakers on all supported chains at the time of the snapshot will receive their share of the airdrop.
MIM LPers
MIM liquidity providers (LPers) are vital in ensuring that MIM remains a highly liquid asset across multiple chains. As a token of appreciation for their essential role, LPers will receive rewards based on the size of their LP deposits. This incentivizes and acknowledges their efforts in maintaining deep liquidity for MIM, which is critical for the overall health and efficiency of the omnistablecoin ecosystem.
The distribution of tokens will be valid for the following LPs:
- MIM-3Crv - Curve - Mainnet
- MIM2-2Crv - Curve - Arbitrum
- MIM-crvUSD - Curve - Arbitrum
- MIM-USDC - Camelot - Arbitrum
- MIM-USDB - MIMswap - Blast
- MIM-USDT - Curve Finance - Kava
All Abracadabra-related staking contracts will be included, as well as large wrappers (eg. Convex staking, Stakedao staking, Yearn wrappers) on a best effort basis.
List of Addresses per Distribution Category
The spreadsheet with relative weights is being worked on, and will be added here soon.
Voting
Given the tight deadline coming up for posting RFP’s, the following AIP will follow a speedlaned process.
Voting will be live in 48 hours, and can be found here. Voting will last 48 hours.
If approved, the RFP will be submitted to the LayerZero forum. Note that if approved, small changes related to how the distribution should look like can be applied without further votes, based on the feedbacks received on the LZ forum.
The proposal passed.