This Week’s Forum Threads (May 24th)

Here are this week’s forum threads I recommend you follow:

Alchemix to Arbitrum

Alchemix is currently debating launching its protocol on Arbitrum. Specifically, the proposal suggests launching an alUSD Alchemist with Aave v3 strategies for alUSD, alETH, and Jones DAO jUSDC, and an alETH Alchemist for rETH, wstETH, and sfrxETH. Additionally, the proposal suggests using Ramses Dex for alAsset liquidity.

Alchemix, more than most protocols, requires a vibrant DeFi ecosystem before users can leverage its protocol. As Arbitrum’s ecosystem has grown in leaps and bounds over the last few months, it is now feasible for Alchemix to launch on the chain. Arbitrum has come to dominate other Ethereum L2s regarding TVL and users and Alchemix launching there could help secure that lead.

Alladin DAO Tokenomic Re-Vamp

Tokenomic re-designs are always important to follow. They can signal an important catalyst for a project or fundamentally break a DAO with skewed incentives. As such, I always recommend being aware of projects changing their token.

Alladin DAO is attempting to re-vamp its tokenomics to generate additional value for ALD holders and fund the growth of its ecosystem. The proposal recommends achieving these goals by spending 30% of their income from Clever and Concentrator products on their ALD/ETH Curve Gauge, reducing staking APY from 10% to 5% while using the saved ALD as an ecosystem fund. Additionally, the proposal suggests quarterly reporting and enabling VexALD.

The proposal recommendations around supporting their gauge and reducing staking supply introduce changes in their token dynamics which readers should be aware of. But VexALD is also of interest, as this derivative token gives holders airdrops from in-house protocols, dividends, and access to lending options. If you are involved with DAOs or DeFi, I recommend you follow this forum discussion.

Mantle Token Design

BitDAO is working on launching its own L2 called Mantle, but details have been slow in coming. This forum proposal finally releases more detailed information about Mantle and the BIT<>MNT token conversion, as well as some technical details. To summarize:

  • The Mantle token will adopt the Mint and Upgradeability functions of $ARB and $OP.
  • A one-way conversion between BIT and MNT will occur at 1 BIT per 3.14 MNT.
  • The BitDAO team will handle the conversion and build the conversion platform.
  • The team will create an MNT<>ETH pool for trading.
  • And the team may make a temporary treasury to assist with conversion. 

The total supply of MNT is still unknown. The one-way BIT<>MNT conversion suggests that the total supply of MNT will be around 31.4B as the BIT supply is 10B. This conversion assumes that the conversion seeks to give BIT holders the same portion of the MNT supply. But, if the supply of MNT is anything less than 31.4B, then BIT holders will receive a larger portion of MNT than BIT – which would require other changes in supply. Regardless, I recommend watching how this plays out, as it could be a significant catalyst.

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