[Proposal] Excalibur x UST partnership

Governance & Proposals
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Introduction

Excalibur Exchange is a Fantom-based DEX, built with a focus on sustainability, capital efficiency and supporting new projects. Sustainability has always been an issue in the DeFi space, as capital follows incentives, and incentives need to be properly configured to encourage longevity of capital; this is a big focus for Excalibur, and we do this via dynamic incentivization for long term staking and yield-generating governance token separated from liquidity rewards, amongst others. Excalibur also features highly variable swap fees and variety of other mechanisms to support new projects on Fantom.

At Excalibur, we’ve been a big fan of the Terra ecosystem and UST. After all, decentralized finance needs decentralized money. However, UST has lagged behind in the Fantom ecosystem, and we see potential for UST to gain market share in Fantom and establish its dominance in the stablecoin sector.

Governance Proposal

We would like to be mutually-beneficial partner with Terra, working closely to create heavy integration of UST at Excalibur. Integrations would have the goal of making UST the native stablecoin of the exchange and more broadly push forward UST adoption on Fantom - not dissimilar to what Pangolin has done in the Avalanche ecosystem.

Commitments from Excalibur

  • UST will be integrated natively throughout the platform - key integrations include featured LPs, preferred stablecoin presented for swaps, and denomination of dividends
  • UST-pairs will feature liquidity pools with the highest incentives to attract the deepest liquidity. Specifically, UST/USDC and UST/FTM pools will be the highest incentivized pools at launch, and we will introduce additional pairs over time. Just to put a number to this, 30% of all EXC rewards for liquidity providers will be directed at LPs featuring UST.
  • UST pools will be targeted to maintain the lowest swap fees in comparison to other stablecoins present on the exchange, making UST the lowest friction trading option. Our adjustable swap fee model allows for swap fees as low as 0.01%.
  • Excalibur features a two token model, EXC for liquidity rewards and GRAIL, a yield generating governance token. GRAIL dividends will be distributed in UST and FTM.
  • To grow the Terra ecosystem on Fantom, Excalibur will create a UST/LUNA (or liquid staked LUNA) pool with liquidity incentives from Excalibur. This pool will be launched coinciding with the start of LUNA incentive distributions and will be incentivized
  • If Terra native dApps look to extend their liquidity and tokens across to Fantom, Excalibur can support these efforts.
  • Links to leading bridges that support cross-chain transfer of UST & LUNA will be strategically placed on the site to simplify cross chain migrations.
  • Excalibur will work with its Fantom-based launchpad partners to promote UST as a preferred stablecoin pairing option for newly listed projects.

Commitments from Terra Community

  • Given relatively low UST liquidity on Fantom, Terra community will ensure that there is sufficient liquidity on Fantom - this will allow for better user experience and ease of UST access. Some course of actions we can explore include: ensuring sufficient bridge capacity for Excalibur’s launch in the beginning of March, or ensuring there is enough liquidity in LP pools on other Fantom exchanges
  • $255k of LUNA/UST incentives over 3 months. It will be transferred one week after the launch to a multisig made up of public launch partners of Excalibur. Those incentives will then be directed to time-locked stakers in the UST/FTM and UST/USDC pools encouraging deep predictable liquidity for UST.
  • Commits to establishing performance metrics for supporting continued LUNA/UST liquidity incentives for pools featuring UST, including additional stable and non-correlated pools
  • Co-marketing of Excalibur within the Terra ecosystem, including AMAs and introduction to Terra dApps that would like to establish a greater cross chain presence on Fantom to support collaboration

The Excalibur team is creating an ecosystem that incentives the worthy and believe their time vaults, low dynamic swap fees and alliances with Fantom Launchpads will light the fuse to make UST the dominant stablecoin on Fantom.

Please do check out our live beta deployed on the Fantom testnet, in advance of our initial liquidity event (https://beta.excalibur.exchange). Our entire code base and complete audit by Paladin are also available to review on Github.

Let me know any thoughts you guys have down below, looking forward to reading your comments and answering some questions people might have. We invite all LUNAtics to join our community.

Excalibur Exchange | Linktree

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@Myrddin it is interesting to see continued interest from different exchanges and networks, aimed at expanding UST across the Web3 landscape.

This quote is powerful and conveys your awareness of the UST product.

Seems to put some emphasis on decentralization. How is Excalibur trying to achieve decentralization in its product? When can governance be expected to go live?

Based on the beta, your exchange seems very nascent - with Audits dating back to early February. When did you launch the exchange? Excited to learn more about the goals of your protocol.

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@fig thank you for your interest. To put it in a few words, Excalibur is an AMM built from the ground up with features that enable ecosystem integration, create long term sustainability and ensure capital efficiency. It’s our own take on UniswapV2 DEXes, designed to move us towards a fairer system for traders, liquidity providers, and projects.

You’re absolutely right that we are a nascent exchange, as we are gearing up for our Fairlaunch Liquidity Event in the beginning of March. We are excited with our proposed collaboration with Terra to have a partner who understands the value of ecosystem building, and how we can extend that ecosystem to Fantom while growing our own as well.

With regards to the audit, the process has started back in late November. Paladin and our team have been working hand in hand to make sure the innovations we are incorporating into the AMM have been aggressively tested, including adjustable swap fees, flexible time lock staking (anything between 1-30 days) and our yield generating governance token.

We also ran a closed beta during the month of January, in collaboration with major actors of the Fantom ecosystem, and made it open at the beginning of February.

Concerning the most important question of decentralization. Governance will be technically available as soon as we launch, but its use will be limited at first, as it seems mandatory to us to reach a certain level of stability before giving users complete control of the protocol. With this idea in mind, we’ve put down the systems in a modular fashion so that we can keep handling over control to the DAO as we progress. Our tokenomics are designed to vest EXC into the hands of liquidity providers, traders and projects listing on the exchange with a Liquidity Event designed to create the widest possible distribution of ownership as well into the community.
To put it in a more concrete way, investors holding our yield generating governance token GRAIL will have at launch complete control over the DAO treasury and SAFU fund. It will progressively expand to the contracts configuration, strategies and general directions of the project, until governance reaches its maximum autonomy.

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definitely think a DEX that can push forward the UST agenda on behalf of the Terra community would be a great partner to have. Terra as a community can help, and regardless of the outcome, I think it’s worth a punt - LFG

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support support support support support support support support support support support support

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Which bridge will be used for incentives?

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My little finger tells me it will be multichain

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Fantastic!

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wormhole would be nicer :slight_smile:

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This looks interesting, but strange to see 4% deposit fees on a DEX. What’s the rationale?

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Totally agree with you. That’s only our beta on Fantom testnet, we definitely won’t have 4% deposit fees on any farm when going live on mainnet.

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I love this community!!

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Hello, before casting my vote on the proposal would like to clarify some doubts.

How Terra will take care of the inflation caused by TOMB finance on Fantom? TOMB is a mirror of FTM that acts like a money printing machine when TOMB peg is equal to or above FTM. UST flow in FTM will cause TOMB-UST pool creation or some other pools that will eventually end up in bringing the TOMB inflation into Terra. How can we take care of this?

Please share your valuable opinions

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What is the difference compared to Beets.fi (balancer v2 on fantom). I can buy UST there and put it in UST liquidity pools. Or even make your own UST pool. Through multiswap I can directly sent UST through fantom and terra.