Introduction
ProtoFi is the first community-driven, user-owned DEX on the Fantom network that focuses on long term sustainability and value creation for shareholders by giving the opportunity for investors to own a piece of the protocol itself - and, by association, the profits it generates. This is achieved through our unique tokenomics, where our native Nucleus LP farms earn rewards in ELCT, our governance and shareholding token. ELCT can be staked in Fission, which pays out 100% of the swap fees generated by our DEX, currently in DAI. ProtoFi also features one of the lowest swap fees on Fantom, in order to attract maximum swap volume.
We are all fans of the Terra ecosystem here at ProtoFi, and we are very impressed with Terra’s growth and achievements. We would love the opportunity to partner up and help UST gain a strong foothold in the Fantom ecosystem, as one of the leading stablecoins.
Partnership Proposal
We would like to establish a close partnership with Terra, and integrate UST on our platform. The goal of the integration would be to make UST the native stablecoin of ProtoFi, paying our ELCT stakers in Fission in UST, replacing DAI. At the same time, we are looking to further UST adoption on Fantom by heavily incentivizing UST liquidity in our LP farms.
Commitments from ProtoFi
- UST will be natively integrated on our platform, and will become the default stablecoin in paying out our ELCT stakers for the duration of the partnership.
- 2 UST-pair liquidity pools will be launched with high incentives to attract the deepest liquidity. These will include one non-native pools, UST/FTM and a native pool, UST/PROTO. More specifically, up to 7% of PROTO rewards will be directed towards the non-native pairs, and up to 40% of ELCT rewards will be directed towards the UST/PROTO pair.
- ELCT stakers will be encouraged to compound their earned UST as much as possible, by incentivizing the native UST/PROTO pair rewards over our other native pairs.
- Unlike all other new pair launches, all UST pairs will be launched with 0% deposit fees, to prevent any possible barriers to entry.
- We will link to/directly integrate bridges that support the cross-chain transfer of UST on our site to simplify cross-chain migrations.
- Co-marketing efforts, including advertising our integration of UST and heavily incentivized UST pools on social media, as well as ongoing support and future promotions of Terra dApps that would like to establish a cross-chain presence on Fantom
Commitments from Terra
- The Terra community will ensure there is sufficient UST liquidity on Fantom. This includes providing adequate liquidity in the UST pools we will launch, as well as ensuring sufficient bridge capacity before the launch of our partnership. In terms of LP liquidity, we propose $250k of liquidity spread between our UST/FTM and UST/PROTO pools.
- $250k of UST incentives over 3 months. These incentives will be distributed to ELCT stakers through our Fission system, who will be heavily incentivized to compound their earned UST, as described previously.
- Co-marketing of ProtoFi within the Terra ecosystem, and introduction to Terra dApps teams that would like to establish a cross-chain presence on Fantom
Thanks to our low swap fees, attractive rewards for UST pair LP providers, and native UST fees distributions, as well as our Fantom ecosystem relationships, including the Fantom Foundation, we are confident we can be a major driver of UST adoption. Through our partnership, we look forward to turning UST into one of the leading stablecoins on Fantom!
Please check further details on our tokenomics and our Dual Token System here:
Tokenomics
Our audits are also available here:
Audits
We look forward to hearing your thoughts on our proposal, and answer any questions you may have!