Enact Aura Minimum on DeFarms

Proposal Submitted: Snapshot


This proposal is designed to implement a minimum requirement of AURA on deposits (not withdrawals) for DeFarms.

Key Terms and Definitions

Before we dive into the rationale I applied when including this (optional) requirement, let’s first ensure we are on the same page as it relates to DeFarms, AURA, and why it matters.

DeFarms Summary

DeFarms is designed to enable protocols to benefit from (1) cost-savings, (2) peace of mind, (3) exposure, and (4) convenience. It is important to note the status quo barriers to entry as they relate to implementing a decentralized reward emissions (farm) campaign:

  1. Technical Expertise: your development team would need to be proficient in smart contract development and have experience with composing comprehensive smart contract unit test. Additionally, in order to get the full benefits that come from launching with us, you would also need to have a development team that is willing and able to construct an intuitive UI for depositors to partake in the campaign.

  2. Marketing: we provide marketing for you when you launch with us. We list your token on our exchange and we mention you in our tweets. You are also listed alongside of emergent protocols, which means more eyes on your project.

  3. Trustlessness: by acting as a disinterested third-party, there is zero incentive for us to incorporate any backdoors for projects that launch with us. Doing so would also undermine our protocol and the trust we have built over the years, so there is also a strong disincentive for us to act in a deceitful manner. However, when you are launching and creating your own campaign, you risk losing investors who are more risk-averse and would rather not deposit (or deposit much).

These are just a few of the benefits you acquire when you choose to launch with us over going about this on your own. If you’re interested in learning more, please review details in our Medium Post.

Due to the value we provide and the cost-savings (especially compared to alternative solutions, such as paying an auditing company to acquire external trust verification), I included the ability to impose a minimum requirement of AURA to help benefit the SoulSwap Ecosystem while providing this public good.

What's AURA?

AURA captures one’s *voting power within the SoulSwap Ecosystem* and incorporates a balance and reward component.

Balance Component: (1) SOUL, (2) SOUL-FTM, and (3) SOUL-USDC. Note: this includes wallet balance + staked / farmed assets.

Rewards Component: pending SOUL rewards for bonded pairs.

How’s LP Composition Calculated for AURA?
When looking at the wallet balance for pairs, we capture the underlying SOUL for each LP and then multiply this by 2.

  • For example: suppose 1 SOUL-USDC LP consists of 10 SOUL and 20 USDC, then 1 LP = 10 SOUL x 2 = 40 SOUL => +40 AURA.

Why’s AURA so dynamic?

We designed AURA to capture a holistic view of one’s contributions to the ecosystem. We update the constituent components via proposals over time, as such a need arises.

Why require AURA for DeFarms?

1: Provides Utility to SOUL: we don’t use SOUL as a speculative token. Our token is designed help empower the ecosystem, which means to keep the cogs turning (so to speak). SOUL is an incentive token with utility designed to ensure our ecosystem remains self-sustainable, which is a requirement for true decentralization.

2: Ensures Ongoing Maintenance: ultimately, we love being able to create unique features that help decentralize finance, however doing so competes with time spent on other aspects related to SoulSwap. As such, it is imperative that there remains a direct correlation between time spend on maintaining DeFarms without trading off with time spent on aspects of the protocol that directly implicate our community.

3: Quality-Assurance: requiring a minimum AURA balances helps to ensure the deposits belong to unique address owners, which helps to ensure rewards are sybil-resistant. Ensuring a minimum contribution to the SoulSwap ecosystem helps manage the quality of depositors, which helps maintain a healthy and diverse set of holders.

Concluding Remarks

The proposal includes 4 options to select from, including the ability to effectively vote against the proposal by selecting 0 AURA as the minimum.

AURA Minimum on DeFarms

  1. 0 AURA ($0)
  2. 2,500 AURA ($8)
  3. 25,000 AURA ($80)
  4. 100,000 AURA ($320)

Voting takes place here: Snapshot