Proposal 5: SNG Migration
Given the bear market and the current state of Revenant Labs, we believe that drastic changes need to be made for our project to survive. After gaining counsel, we feel that this path forward is the best way to ensure Revenant survives into the future while providing a fair agreement with token holders.
RVNT to SNG
After a great deal of reflection and careful analysis, we feel it is important to change our branding, legal structure, and team to community relationship.
1. The first change is to rebrand Revenant Labs into Singularity.
Singularity has the best chance to survive in this bear market, so we should be focusing our efforts entirely on this project. The initial idea of creating different products with individual branding and tokenomics has proven too cumbersome to manage, and as a result, we want to bring everything under one name. Creditum branding will become a sub product of Singularity under the name of “Singularity Lend.”
Here is the token migration details:
Circulating Supply after migration: ~16.89 mil SNG-
Total Supply: 50 mil SNG
1 CREDIT = 1 SNG
1 RVNT = 20 SNG
1 xCREDIT = 1.067 SNG
* 1 CREDIT locked in veCREDIT counts as 1 CREDIT = 1 SNG
This migration has a 6 month window after the migration has started. After 6 months these redemptions will no longer be valid.
2. The second change is to move away from yield farming as a way of propping up the growth of the protocol.
We believe that yield farming is not a sustainable way of incentivizing liquidity and will only cause problems down the road (i.e. emissions run out). With the way that Singularity is designed, token incentives are not required for a working product. Singularity’s growth is driven by swap volume rather than liquidity.
Decommissioned liquidity pools
-CREDIT-FTM
-agEUR-cUSD
-cUSD-DAI-USDC
If there is no liquidity for cUSD-DAI-USDC, how will users repay their loan?
Users will be able to convert USDC to cUSD through our stabilizerrMint function, which will be available on revenantlabs.io
What about users who hold cUSD, but do not have debt to repay?
The USDC used to convert to cUSD through stabilizerMint can be extracted through stabilizerRedeem whereby users can redeem cUSD for USDC.
Current stabilizerFee is 1%, and this will be lowered to X% to match curve’s fee.
If there are no incentives for CREDIT-FTM/SNG-FTM, how will users buy or sell SNG?
Before migrations start, users have a decision between holding on to SNG for the long-term or leaving the project now. There will be no liquidity pool incentivized by the team once SNG is fully migrated. The only method of buying or selling SNG will be over-the-counter(OTC). For there to be liquidity for SNG in the future, we would need to find a reason to incentivize any of our pools.
3. The third and final change is restructuring team governance and compensation.
There has been a constant worry for the team on if/how future regulations will affect current team members. The current incentive structure poses risks to team members if the US cracks down on regulation, which would affect the development of the protocol. Specifically, we are worried about the way token vesting schedules will be regulated in the US. No vesting tokens have ever been sold by US team members, and these vesting schedules will not be transferred over in the Singularity migration.
Instead, we would like to propose to compensate US members with a salary going forward. Currently, the salaries being paid to support our 6 person team are $8,750 per month. We are suggesting a deal of $50,000 a month ($600,000 a year) or 40% of revenue generated (whichever one is higher) to better cover expenses of full time members of the team. The other 60% of revenue will be held in treasury. The treasury holds ~$900,000 which will give the team 1.33 years of development time if no further revenue is generated.
Given the Lummis bill in the US, we believe it is best to end any revenue-sharing/dividend program until further notice to protect ourselves from legal scrutiny.
Here is the current draft of the bill, and some legal opinions:
https://twitter.com/adamscochran/status/1533993929196060672?s=20&t=gPeIiJsWCSwuweRxrzrT9Q
https://twitter.com/lex_node/status/1534155178659692546
This governance power will not be used to influence any activities regarding SNG token emissions, decisions over emissions will be decided only by community members.
We are letting the community decide on this decision, and we will have a snapshot proposal available once holders are ready to vote: https://snapshot.org/#/creditum.eth/proposal/0xc2d6de9e0a480c7fa04f564d31b974953c4cf2d8751d62c6e96892920583892e
