🚀 Boosted Finance: BoostVaults, Migration Plan, Booster Optimizations
Three and a half days from launch and we have rallied over 535 AlphaNauts on Discord. I said this on Twitter and I’m going to say it again, this has been an extremely humbling experience for all of us on the Boosted Finance team. We are ready to dedicate more time, more resources, more effort on all fronts to bring long-term viability and recurring reward streams to BOOST token holders as well as the project’s overall sustainability.
With over $52M locked up, healthy treasury growth and most importantly of all — a community of highly intellectual, loyal and supportive AlphaNauts — we’re proposing a migration plan that is critical in ensuring long-term reward/value generation for BOOST holders, fair distribution and barriers to entry while being fully community governed.
Please note that everything in this article will need to be voted in by the community and the purpose of this article is to share what the core contributing team thinks will be the best next steps in ensuring BOOST’s long-term viability and value accrual.
Stay #boosted. Feel free to discuss the contents of this article on our official community Discord:
👨🚀 Migration Plan & Purpose
Our team has been giving much preparation, work, and modeling to set the course of Boosted Finance with the intention of having it community governed and self-sustaining. Once launched, we could have never expected the engaged and intellectual community that would arise to provide feedback and help generate ideas regarding how to proceed into the future.
After careful deliberation with the community, we are proposing to migrate to a refined and audited version of Boosted Finance contracts, funded through the existing treasury fund.
The difference between the existing contracts and the new governance contracts include a developer fund to further support project sustainability through audits, grants, engineering resources, and ecosystem development.
A proposal will have to be submitted to withdraw the full amount from the old governance contract which would also be collecting funds until the Uniswap LP reward pool distribution ends.
The idea of vaults with BOOST mechanisms was driven by holocross, a contributing AlphaNaut in our Discord. Vaults are essentially the passive reward mechanism and distribution channel for BOOST token depositors that accrue value over time by executing high yield strategies across various protocols, similar to Yearn.Finance’s yETH vault.
bVaults are designed to provide players of all sizes (whales, degens, honest farms and small to medium-sized participants) equal access to high yield opportunities that generate stable and consistent revenue on a recurring basis in an efficient manner with respect to fees and gas costs.
The yield and rewards accrued in a particular vault will then be distributed back to the token depositors on a recurring basis, creating a consistent cash flow for BOOST token holders and continuously increasing the community-governed treasury.
bVaults can also be used to leverage the operational and governable treasury fund as well as deposited tokens, bringing higher rewards to BOOST stakeholders and switching strategies through governance proposals to maximise alpha at all times as stronger opportunities arise.
Here is an example of a BoostVault:
- Name: bETH Vault
- Strategy: Deposit BOOST and/or underlying tokens. Collateral to acquire DAI through MakerDAO at a 200% collateralization rate. Interest is earned and the DAI is sent to Curve Finance, a stablecoin liquidity protocol. The DAI is then locked and interest (from the trading fees at the Curve DEX) and extra CRV tokens are received. CRV is then sold for ETH which is reallocated back to the bETH vault. (Clone of yETH)
- Rewards: 150% APY (figurative),
- Reward Distribution: 80% of total rewards distributed back to depositors, 10% to governable treasury, 7.5% to developer fund, 2.5% BOOST token burn.
- Withdrawal Fee: 0.5%, fully distributed back to BOOST tokenholders.
bVaults can be created and proposed by anyone in the AlphaNaut community, bringing cutting edge and creative strategies for the BOOST ecosystem. However, for the launch of vaults, this will require extensive developer effort and we propose to have multiple audits from different established security firms to ensure the absolute highest security guarantee for users.
Boosters in bVaults
Boosters can also be applied to bVaults, allowing users to speculate on the yield of a particular strategy, think of it as leverage for amplified yields, paying BOOST to amplify your yield against other participants. Similarly to our existing farming pools, they will boost your total value deposited and yieldh. However, boosters in vaults will be effective for a certain amount of days from purchase, which at expiry will reset the user’s yield to the original amount before boosting. Withdrawing funds from the vault will also lose the effect of boosts.
For example, if I deposit $1000 in the vault and purchase a booster, I have effectively $1050 worth of value to receive rewards and dividends from the strategies of the vault.
While the pricing of boosters in bVaults is yet to be fully determined, it will be proportional to the total value locked from a particular wallet and will cost BOOST. 50% spent will be burnt with the other 50% swapped into yCRV to be distributed proportionally to the treasury and developer fund at 40:10 respectively.
This means that BOOST will be increasingly deflationary with more tokens being burnt, accruing strong token appreciation and increasing the value in the community governed treasury for bVaults to utilize and earn more alpha.
Developer Fund Details
Wave 3 will start with a final distribution of 30,000 BOOST, where 13.37% of rewards will be used to bootstrap the developer fund and used to begin work on BoostVault creation alongside multiple official security audits from top firms and bug bounties.
Moving forward, the fund will accrue more value through bVaults and adoption to support technical resources and the overall project sustainability of Boosted Finance.
We have been re-evaluating the booster mechanism and will be proposing a solution to have the BOOST cost scale proportionately to the staked amount of a wallet relative to the total value staked in the pool. In addition, there will be a multiplier that increases booster costs based on the total amount of purchased boosters inside a pool.
The purpose of this is to engage the smaller players who have been edged out of using the booster mechanism.
👨⚖️ Governance v1 Launches
Community governance has launched on boosted.finance user interface. This uses a modified YFI governance model, the community will be able to submit governance proposals 48 hours after launch by locking up 13.37 BOOST in a staking contract for three days. Each proposal will have a duration of 2 days during which the proposer can submit the withdrawal amount and address if they wish to claim yCRV for the proposal.
- BOOST Threshold to Submit Governance Proposal: 13.37 BOOST
- Quorum for Governance Proposals: 30%
- Proposal Voting Period: 48 hours
Once confirmed as voting for or against in a governance proposal, stakers will not be able to switch votes.
Proposals can only be resolved after the two-day duration, and once resolved as either a ‘pass’ or ‘fail’, it cannot be resolved again to prevent multiple withdrawals for successful proposals. To discourage bad proposals, if the proposers ask for more than 1000 yCRV and a 5% minimum quorum is not met, the entire stake will be slashed, converted to yCRV and transferred to the governance contract.
Quorums are determined by the total supply at the time of proposal resolution and must hit a minimum of 30% quorum, more votes for than against, to pass.
(These are the specifications of the current governance contracts, not the new ones outlined in the migration plan above)
🌟 Future of Boosted Finance
This is it. This is where we take things up three, six even ten more levels higher than where we are now. We kindly ask you, our AlphaNauts, to carefully consider the proposals outlined in this article and discuss with us in the community Discord
Please keep in mind these are only the proposals from the core contributing team and will ultimately be required to be voted on by the community. If there is a mutual agreement to move forward, an official governance proposal will be submitted soon.