Wrap-up — Week #15
Ahoy Pirates
Happy new week aboard the ship. In case you’ve been busy and missed some of the recent events, here is an opportunity to catch up on the AMA and the Community Call.
AMA with Revenant Labs
Could you please introduce Revenant and the team behind the project ?
The project was formerly known as Stakesteak and was rebranded as Revenant following an exploit. We released a token to give the community an access to the new products we are building with Revenant. With Creditum we have built cUSD, a stablecoin coin minted with collateralized debt positions, and with Singularity we are building a new kind of AMM with low slippage and improvements on impermanent loss factors with single sided staking LPs.
Can you tell us more about Creditum and the strategy behind cUSD ?
Creditum can be seen as a MIM competitor, where users can deposit their collateral to mint cUSD stablecoins for a fixed interest rate. Our strategy is to make it what fUSD was supposed to be: when users stake their Ftm on a validator node, they are able to mint fUSD on top of it. Unfortunately fUSD was unable to maintain a reliable peg because of its liquidation model. So instead of working with the Fantom Foundation we decided to work with projects like Stader or Double Sharps because we could implement our own liquidation model.
You’ve recently disclosed the foundation of your new project, Singularity. What is it all about ?
Singularity is an alternative AMM that would focus liquidity around oracle prices in order to allow low fees and low slippage swaps on large coins. The idea is to provide reliable and fast updating oracles around large coins like FTM, BTC and ETH. It is like a singularity of liquidity around the oracle price. The liquidity providing side is also attractive because Singularity allows single staking LPs without having to worry about IL.
Can we get more technical details ?
We took the Platypus model, a stableswap platform on the AVAX network, and we made some improvements so that users could swap volatile assets. Basically individual liquidity pools are grouped through tranches. Any tokens in a tranche can be swapped for another token in the same tranche. At inception we will have stablecoins tranche and a risky assets tranche in which FTM, BTC, ETH and USDC will be able to be swapped one against another, at a USDC price according to the oracle. Regarding the slippage we expect it to be lower than Curve.
We’ve heard the fees would be the lowest in the place, how is it possible ?
The fees are set low at 0.02% for stable swaps and 0.15% for risky asset swaps. The reason behind this is the fast updating oracle that ensures almost no arbitrages can impact the LPs. We will even be able to set lower slippage and trading fees in order to maintain a good equilibrium between LPs protection and revenue generation for the protocol.
As a comparison, SpookySwap has 0.2% fees on swaps. However we are not going to compete with them because SpookySwap can list any coin and can actually set a market price whereas we can only take the market price through our oracles. So it only works for very large liquid coins and we will only try to be the market leader in terms of on chain swap for these large coins.
Are the oracles going to rely on Chainlink ? How do you expect to mitigate the inherent price manipulation risk ?
We will definitely use Chainlink price oracles and in the meantime we are developing our own oracle. We are aware of the security concerns that one might have especially with home crafted oracles. On a user point of view our low slippage tolerance is enough to mitigate the risk of price manipulation because the AMM will automatically revert the transaction if the price deviates from users expectations. However in the event of a price manipulation LPs are subject to losses because arbitrages are now possible. That’s why at inception we will cautously cap the pools at a fairly low amount. In addition, we expect LPing to be a niche compared with other DEXs because we only require a couple of millions liquidity per token for Singularity to work properly.
What kind of Synergy do you see between Liquid Driver and Singularity ?
When users provide liquidity on Singularity they get an LP token back that can be potentially staked on Liquid Driver’s farms. For the moment we still need to figure out how the emission will be performed on Singularity.
Is there going to be a Singularity token ?
We are still discussing this topic. We will include mechanics to redistribute the protocol fee but for the moment we cannot give any answer regarding the release of a token.
What is the long term vision for Revenant Labs ?
We are focusing on building new products for our community with cUSD and Singularity as the foundations. We have a long term plan to build an ecosystem where everything has a meaning and a utility.
Summary of the Deck Talk — Week #15
ShadowDAO
The transition from a centralised to a fully decentralised organisation is a long and risky process. Smart contract management, web design, business development or marketing campaigns are operational skills that need to be ongoingly handled and the know-how maintained.
The Shadow DAO is intended to be a transitory structure to move step by step from the current organisation to the LiquiDAO. Hence, the framework will be quite limited at first and should gradually evolve as the Shadow DAO proves itself out. The main function will be the Treasury Committee which will consist of 4 core members elected by Dr Liquid and 3 community members. Voting instructions will be announced soon.
The other functions of the Shadow DAO will include, but not be limited to : an NFT task force, documentation update & translation and Marketing in any forms. All these topics shall be community driven. The members of the DAO will be elected according to their global involvement in Liquid Driver and invited to a dedicated Work Server.
The underlying idea is to find a consensus agreement while keeping the agility to take quick decisions in the full interest of the community. For instance, the recent 1M $BEETS purchase would not have been performed efficiently if the core team had to rely on a 3-day snapshot vote.
New product — slinSpirit
Last week we released slinSpirit, the auto-compounding version of linSpirit. The release comes in accordance with LIP-009 that was intended to reallocate 8% of the revenue generated by the Spiritswap farms from the revenue sharing vault to the linSpirit staking pool. APY now amounts to 71% and should allow us to accumulate more InSpirit.
A new partnership with QiDAO and Market.xyz shall be announced soon and will allow users to borrow MAI stablecoins on top of slinSpirit. The objective of the partnership is to bring more utility to linSpirit holders. The consequence should be first an increase in the velocity of InSpirit accumulation, and second a stronger peg between Spirit/linSpirit.
Integration of cLQDR & linSpirit in Debank
The listing of our new products in DeBank is community driven. Votes are live for cLQDR and slinSpirit.
