🚀 Boosted Finance: Post-Wave 3 Distribution, First bVault, Future Roadmap
We are proud to wrap up our Wave 3 and final distribution of BOOST tokens that was successful in doing so with the new booster mechanism and reaching our core goal of distributing the token in a fair manner.
👉 Note: The top two addresses are the Uniswap BOOST/ETH Liquidity Pool & staked BOOST in the governance contract
There have been many questions on the utility of the BOOST token post-distribution. BOOST will be critical in sustaining the long-term usage of the products under Boosted.Finance as well as providing liquidity to such products. Here is an early overview of the different utilities of the BOOST token:
- Purchase Boosters for bVaults
Boosters in bVaults will need to be purchased using BOOST and will have an effective period of 2 weeks (tentatively) — driving constant deflationary pressure on the token (Boosting burns tokens)
- Reward Sharing & Liquidity Incentive
You will be able to stake your BOOST/BOOST-ETH LP tokens into a profit sharing pool that distributes a proportion of rewards from ALL bVaults and upcoming products such as bInsure. This will provide a continuous incentive to liquidity providers for the exchange of BOOST.
The BOOST token will be the native token used to govern the protocol and treasury.
With the first step in our journey complete, our team is completely focused on the development of bVaults and utility of the BOOST token. The team will also be sharing fortnightly updates to consistently communicate with our community while covering development progress.
To kick things off — we have shared some exciting details on what you can expect in October.
First bVault Release
Boost Vaults are not a clone of yVaults or 1:1 fork of another protocol — this wouldn’t make sense and our team would be doing a disservice to the other projects out there by diluting APYs and vampire attacking to steal liquidity. Here’s the summary of the key differentials of bVaults:
- bVault operations are divided into epochs. Each epoch lasts for 2 weeks.
- Upon depositing funds into bVaults, bf-Tokens are issued (similar to yTokens)
- Stake bf-Tokens into the vault rewards contract to earn the full reward possible
- Multiple strategies can be concurrently run, with different maximum draw amounts depending on the risk involved for each strategy.
- Each strategy must meet a minimum return amount per epoch before the strategist is able to claim a performance fee. This is known as the hurdle rate.
- Hurdle rates are increased by 0.01% every epoch, up to a maximum of 0.5%. This will reset every epoch.
- The harvest is split into 2 parts. Initially, 80% will be set for reinvestment while 20% for rewards distribution. This proportion can be increased by 0.5% in either direction at the cost of Boost tokens.
- Users can boost the rewards claimable in the vault rewards. The pricing mechanism and effect will be similar to that of the wave 3 distribution rewards contract.
- Any unclaimed rewards after 2 epochs will be made available for re-investment by sending them to the vault contract.
- Strategy harvesting is incentivised, whereby up to (by boosting) 1.5% of the farmed tokens will be sent to the caller.
Due to the unique and original nature of bVaults, this means that the development process is far more intricate and we are working with a security audit firm to release a new product onto the market that is secure and can add consistent value to BOOST token holders and vault depositors.
Releasing an Alpha Version of bVault
We have heard and listened to the community who are eagerly waiting for the product release. For this reason we have decided to fast track an alpha release of bVaults and also hosting a strategy design competition for our community.
What if you could earn yield from three different sources by farming one of the leading and most reputable projects out there? That’s right — PICKLE.
Boosted Finance will be releasing a PICKLE vault which you can earn yield from three different sources:
- LP fees from Uniswap
- $PICKLE tokens that we automagically swap for you to get more LP tokens and compound your rewards
- bPICKLE, an interest-bearing token that you receive by depositing into the vault
This is targeted to release in the upcoming week while our team continues to work with auditors on the full release of bVaults which will include hurdle rates and differentials covered earlier.
👉 Note: As an alpha product, this vault will be unaudited and serve as an experiment for booster mechanisms in bVaults for the team to optimize come the official launch. So please proceed with your own due diligence.
Vault Strategist Competition
Our community is the most valuable and strongest asset we have as seen in discussions and most recently, the engagement in our logo competition. For this reason, we want to award contributors for their efforts and will propose a competition for vault strategies.
More details to be released on this soon, for now, prepare your best vault strategies and discuss within our Discord.
While we are releasing the first version of bVaults to the public soon, there is a long road to realize and experiment with DeFi products that implements different types of Booster mechanisms. We remain committed to building a strong product suite and community.
For now, we have tentatively planned our product releases into three phases:
- Phase 0: bVault Alpha Release
- Proof of concept bVaults that utilise boosting mechanism on the PICKLE-ETH farm.
- Unaudited and used to provide utility for BOOST while experimenting with booster mechanisms in vaults.
- Phase 1: bVaults
- Automated strategies that are optimized for high yield opportunities to generate stable and consistent revenue on a recurring basis
- Vaults allow players of all sizes to access market opportunities without restrictions due high gas fees that would prevent otherwise
- Rewards accrued in a particular vault will then be distributed back to the token depositor
- Vault creators (strategists) will need to pass a minimum rate of return (hurdle rate) before claiming rewards
- Phase 2: Reward Sharing & Liquidity Incentive
- Most likely to be released in tandem with bVaults, BOOST holders will be able to stake BOOST/BOOST-ETH LP tokens into a profit sharing pool to collect a proportion of rewards from ALL bVaults and upcoming products such as bInsure.
- This will be a consistent incentive for liquidity of BOOST and scarcity of the token while rewarding token holders.
- Phase 3: bInsure
- An insurance product that allows risk assessors to deposit BOOST on contracts that they believe are secure and allowing other risk-averse players to purchase cover.
- These contracts will kick off to insure against bVault strategies, allowing players to play both sides from speculating to purchasing covers to insure against yield.
- Stakers are rewarded the cover premiums paid for insurance but are liable for their staked BOOST to be liquidated if there is a successful claim.
Please keep in mind these are only the ideas from the core contributing team and we are always open to suggestions from our community. If there is a mutual agreement to move forward, an official governance proposal can always be submitted to steer the direction of the protocol.
By completing the three phases, we aim to reach a fully community-governed and developed protocol with a strong foundation.