[DISCUSSION] Voting in favour of Abracadabra BentoBox Strategist Proposal

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Voting with treasury xSUSHI in favour of the Abracadabra BentoBox Strategist Proposal

Summary: The following proposal aims at using BitDAO Treasury held xSUSHI tokens to vote in favor of the following Sushiswap Governance Proposal, proposed by Abracadabra Money DAO.

Please note: due to Forum moderation setting the Sushiswap proposal link is posted in the first comment.

Abracadabra proposes to be elected as a BentoBox Strategist to create new strategies on idle Abracadabra-held assets on BentoBox. As the largest protocol deployed on BentoBox with over $115M in TVL from our assets, we are best positioned to ensure the success and security of BentoBox strategies for Abracadabra specific assets.

If the proposal were to pass, Abracadabra would share 5% of all fees earned with the BitDAO treasury, which could become a stream of revenue for BitDAO into perpetuity.

Author: Romy; Abracadabra Core Contributor and DAO Member.

Date: 8th of May 2023

Benefit to $BIT Holders:

Abracadabra proposes a 35% fee sharing agreement on all strategies involving Abracadabra-developed strategies and Abracadabra-held assets on BentoBox, that will basically turn idle TVL on BentoBox into productive assets for SUSHI holders, while improving Abracadabra efficiency and growth abilities.

This 35% (or whatever amounts will be agreed on on the Sushiswap Governance side) will be given directly to Sushiswap DAO and will inherently benefit SUSHI holders, and transitory $BIT holders as BitDAO treasury is one of the largest SUSHI holders.

In the best interest of $BIT holders, Abracadabra proposes to share 5% of all fees earned, which will come from Abracadabra’s portion of fee sharing. These fees will be deposited directly into the BitDAO treasury.

Insight on the Proposal:

Whitelisting Abracadabra to create BentoBox strategies would provide Sushi with a partner that has aligned incentives. As Abracadabra has the largest TVL linked to BentoBox, new strategies would be thoroughly tested and assessed before deployment.

To effectively create and deploy strategies, ownership of BentoBox would need to be transferred to a BentoBox owner that allows Abracadabra to add strategies to the tokens mentioned in the proposal; once that happens, Abracadabra would become a core strategy producer.

The Sushi operational safe would still be able to control all other assets parameters on BentoBox and may transfer or relinquish this control at any point in the future.

The implementation of the contract that holds the ownership can be found at the following address: 0x4427a2840a3af9a9495fde28cb5c019585a3a09b.

If this proposal were to be passed, ownership of BentoBox would be transferred to this contract. Audit results can be produced upon request.

Timing and Voting:

If this proposal were to pass, BitDAO would simply need to vote in favor of the Abracadabra proposal whenever the Sushiswap governance snapshot is posted! Consequently, fee sharing would be activated towards the BitDAO Treasury and $BIT holders

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Posting link is not allowed due to moderation settings, hence here is the proposal text:

Abracadabra Bentobox Strategist Proposal

Summary

We propose that Abracadabra be elected as a Bentobox Strategist to create new strategies on Abracadabra-held assets on Bentobox. As the largest protocol deployed on Bentobox with over $115M in TVL from our assets, we are best positioned to ensure the success and security of Bentobox strategies for Abracadabra specific assets.

Abstract

Whitelist Abracadabra on Bentobox, and once that happens, allow Abracadabra to become a main strategy producer, with a 35% fee sharing agreement with Sushiswap.

Background

Abracadabra lending platform has captured over $6B in TVL at its peak, with over $258M worth of assets currently held in our cauldrons. Our initial cauldrons were built on top of Bentobox, which allows for reduced transaction fees and creation of multiple strategies to increase our yield production.

Motivation

Currently, we have no control over Bentobox, and our inability to deploy strategies on it has hindered us from unlocking the full potential of our cauldrons. This lack of control also poses security risks for Abracadabra users in case of vulnerabilities or ecosystem changes.

It’s important to note that currently none of our cauldrons have strategies deploy on top of them, and the assets held by Abracadabra on Bentobox are primarily wrappers, staked tokens, and other interest-bearing collateral that are specifically deployed for Abracadabra users.

These Abracadabra-held assets are not traded on Sushiswap’s main DEX infrastructure, and any strategies related to them would not create any issues for Sushiswap users. We can assure the Sushi community that our strategies on Bentobox would be designed to complement our cauldrons and would not interfere with normal Sushiswap operations.

This further emphasizes the seamless integration of Abracadabra into Bentobox and the mutual benefits of allowing Abracadabra to take control over it, including the proposal of a 35% fee sharing agreement on all strategies involving Abracadabra-developed strategies and Abracadabra-held assets on Bentobox.

Specification

Whitelisting Abracadabra to create Bentobox strategies would provide Sushi with a partner that has aligned incentives. As Abracadabra has the largest TVL linked to Bentobox, new strategies would be thoroughly tested and assessed before deployment. This partnership would reduce Sushi’s liability around strategies while allowing Abracadabra to actively promote and deploy strategies on Bentobox involving Abracadabra Held Assets.

Abracadabra proposes a 35% fee sharing agreement on all strategies involving Abracadabra-developed strategies and Abracadabra-held assets on Bentobox.

Fee sharing may be directly sent to the Sushi treasury or added to the automatic xSushi distributions.

Abracadabra Users collateral that could receive strategies if this proposal was to pass are:

  • 0x5958A8DB7dfE0CC49382209069b00F54e17929C2 cvxtricrypto2
  • 0xa258C4606Ca8206D8aA700cE2143D7db854D168c yvWETH v2
  • 0xa9fE4601811213c340e850ea305481afF02f5b28 yvWETH
  • 0x27b7b1ad7288079A66d12350c828D3C00A6F07d7 yvcrvIB
  • 0x7Da96a3891Add058AdA2E826306D812C638D87a7 yvUSDT V2
  • 0x5f18C75AbDAe578b483E5F43f12a39cF75b973a9 yvUSDC V2
  • 0x26FA3fFFB6EfE8c1E69103aCb4044C26B9A106a9 sSPELL
  • 0x99D8a9C45b2ecA8864373A26D1459e3Dff1e17F3 MIM
  • 0x95aD61b0a150d79219dCF64E1E6Cc01f0B64C4cE SHIB
  • 0x3Ba207c25A278524e1cC7FaAea950753049072A4 cvx3pool
  • 0xd92494CB921E5C0d3A39eA88d0147bbd82E51008 cvx3pool (old)

To effectively produce and deploy these strategies, ownership of Bentobox would be transferred to a BentoBox owner that allows Abracadabra to only add strategies to the tokens above, and once that happens, Abracadabra would become a main strategy producer.

The Sushi OPS safe would still be able to control all other assets parameters on BentoBox and may transfer or relinquish this control at any point in the future.

The implementation may be found at the following address 0x4427a2840a3af9a9495fde28cb5c019585a3a09b.

If this proposal were to be passed, ownership of BentoBox would be transferred to it. Audit results will be produced upon request.

We invite the SUSHI community to provide their valuable feedback and engage in this discussion on the topic of allowing Abracadabra to become a main strategy producer both here and on Discord, feel free to ping any of Abracadabra Main contributors for any related questions.

Together we can work towards a solution that benefits all stakeholders and ensure the continued success and sustainability of Sushiswap and its associated partners/protocols.

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Dear forum user, due to the forum migration, this discussion has now been set to read-only.

Please continue the conversation here.