ShapeShift DAO Extends Farming Rewards!
The community has spoken, FOX Token farming rewards have been extended! If you are currently farming your FOX Tokens, please unstake and move your LP tokens to the new yield farming contract to participate in the new round.
The new pool can be found here.
A Two-Pronged Approach
The ShapeShift DAO has approved the continuation of liquidity mining incentives in the Uniswap FOX/ETH pool, effectively extending and modifying the current liquidity mining rewards.
The new strategy will maintain liquidity mining rewards near or at current levels for an additional four and a half months while at the same time aggressively increasing the DAO’s Olympus Pro bond LP token purchases. The advantages for both the DAO and FOX token holders are significant; hence, the community sentiment around this proposal was positive, reaching 4.75M of votes in favour. You can read the full proposal here.
Farming Rewards
The program allows FOX holders to provide liquidity on the decentralized exchange Uniswap v2 and stake their liquidity provider tokens in the ShapeShift staking rewards contract for a proportional share of the distributed FOX tokens over the four and a half month period.
The ShapeShift DAO will continue its rewards in the Uniswap FOX/ETH pool targeting a 75% APR or higher (funded with 13.5 M of FOX over the period). Playing an essential role in both ensuring that FOX has a presence on Uniswap and throughout the DeFi ecosystem, as well as expanding the universe of FOX holders. FOX token holders will continue to enjoy farming rewards and earn FOX; check out this helpful guide on how to add FOX to a liquidity pool and staking contract.
LP Token Purchases via the Olympus Pro Bond
The two-step strategy will allow the DAO to continue its liquidity mining rewards while also using its ample FOX reserves to begin purchasing its own liquidity via the FOX/ETH Olympus Pro bond. This new paradigm of allowing protocols to hold their own liquidity is significant. It allows projects to maintain liquidity pools without relying on third parties to supply the liquidity. Rewarding third parties for liquidity providing brings associated risk - for instance, increasing the influence of “mercenary” liquidity providers who quickly head for the exits and sell a token soon after earning rewards.
Specifically, the DAO will fund an initiative over the following four and a half months to purchase FOX/ETH LP tokens via the Olympus Pro bond, targeting $40 million worth of liquidity. In addition to the benefits outlined above, the LP tokens will also serve to diversify the treasury. An increased amount of protocol-controlled-value could also be helpful in severely adverse market conditions since ShapeShift can more directly influence if and when liquidity exits the market.
The FOX/ETH farming program is the DAO’s largest expense. Buying the LP bonds will reduce the need for future liquidity mining programs. In addition, the purchased LP tokens could be staked in the ShapeShift farming contract, resulting in the reclamation of up to 90% of the funds spent on liquidity mining.
In Summary
The innovation of the ShapeShift DAO has exploded in recent weeks, and these programs are just one component of the many incredible and contemporary prongs on this busy platform. The FOX Token has always been our way of giving extra utility to those who support the ShapeShift platform and community (starting with no trading fees in 2019). Now, FOX is becoming the entire control and ownership structure of the project.
The ShapeShift DAO is powered by SafeSnap (SnapShot + Gnosis Safe), which means community members can propose and vote on proposals with zero gas fees, and the result of those votes can trigger on-chain transactions. Voting power applies to those with FOX in their wallets and includes FOX in the FOX/ETH Liquidity Pool on Uniswap.
Learn more at ShapeShift.com
Resources:
https://app.shapeshift.com
https://medium.com/@ShapeShift.com
https://www.reddit.com/r/shapeshiftio/
https://forum.shapeshift.com/
https://discord.gg/shapeshift