New Token Migration
The new token YAPE token was launched and airdropped on November 22nd and the original Yapeswap protocol was shut down at that time as well. The protocol was shut down to give all of the remaining users an opportunity to remove their liquidity and therefore hold YAPE in their wallets when the snapshot was taken for the new YAPE token, which was airdropped at a 1:1 value for the old YAPE. The airdrop also took into account users veYAPE holdings, active cYAPE burns, and even discord activity. The veYAPE and cYAPE systems are no longer in operation. The new YAPE token contract address is 0xe452960AE4e28e6EAac52fE037476ddc67b59a58.
Yapeswap’s pools were already very low on liquidity, so it made sense to simply leave these pools shut down for the time being as we focus on shipping the NFT AMM, rather than allocate new YAPE rewards to the pools and encourage users to re-enter the pools. There were some small amounts of funds left in the pools and the users who left these funds behind can still remove their liquidity by interacting with the original contracts which can be found in the documentation. They can seek assistance with this in the Discord server in the #support channel. Users who may have missed the airdrop somehow (perhaps by not harvesting old YAPE rewards or not following the steps to claim new YAPE owed for veYAPE holdings) can also find help in this channel and the team will try to assist in getting them any tokens they may be owed.
The most notable deviation from the plan put forth for the token drop in the previous article was that none of the vesting requirements mentioned were implemented — everyone, including core team members, received all of the tokens they were due in their full amount. The plan also aimed to keep 70% of the total YAPE supply in the hands of the community treasury, but the treasury actually ended up with 61% of the total token supply, which was mostly due to the need to give significant YAPE tokens to those who held active cYAPE burns. No pre-sale to raise funds was conducted. Instead, the token, whose main function at this time is governance over the Yape ecosystem, will be able to find it’s own value in the market. The core team of 8 each received 1% of the token supply, and the other 31% of the token was distributed to the community according to the YAPE they accumulated while Yapeswap v1 was live. Liquidity for the new token has been provided by the core team and is available on Arbitrum. More details on why the liquidity was provided on Arbitrum are dicsussed in the final section of the update.
Yapeswap DAO Operations
The core team of 8 now has a DAO hosted on the DAOHaus platform in which each of them control 1 voting share, regardless of their YAPE holdings. In fact, there are actually 3 identical DAO’s on xDAI, Ethereum Mainnet, and Arbitrum respectively, each hosted on the DAOHaus platform. There are DAO contracts on multiple chains because the protocol may need to use all 3 of these chains in the future. Examples include paying the Raid Guild on xDAI, launching pools on Ethereum and Arbitrum. The xDAI DAO can also be used to conduct cheap, on-chain votes amongst team members. If an xDAI proposal passes, it can be replicated on the Ethereum Mainnet DAO and one member can vote in favor instead of holding an expensive vote on Mainnet. The Yapeswap DAO’s funds remain in the original Gnosis safe, but will be migrated to the Ethereum Mainnet DAO this month. The main funds will remain in the Ethereum DAO unless a proposal passes among the core team to move or spend funds. The ‘core team’ represents all those that want to contribute directly to the DAO or those who hold YAPE and want to be involved in the protocol’s decision making. To join the core team, please submit a proposal to the Yapeswap DAO on xDAI and reach out to the team in the Discord server.
In these current DAO’s, the number of shares held by the core team members is irrelevant as they all have been given 1 share. This was meant to be a temporary measure and to eventually allow the core members and other members to tribute and utilize YAPE tokens as voting shares in the DAO and be involved in the management of the protocol, the DAO, and it’s funds if they so choose. Moving forward, the core team will use the Treasury’s share of the YAPE token to incentivize use of future products (providing liquidity) and to form partnerships with other DAO’s or contributors who can provide value to the Yapeswap DAO. Examples of this include OTC trades with other DAO’s for their native token or other tokens in order to diversify the treasuries’ assets or paying contributors in YAPE. As the treasury grows, YAPE holders who do not wish to participate actively and use their YAPE to vote should expect to see some benefit whether they used their YAPE or not, but discussion or promises of profit sharing must be avoided.
NFT AMM Development
The NFT AMM discussed in the previous update is in development. The core team negotiated and agreed to a contract with the Raid Guild to build the necessary smart contracts for the new protocol, which will consist of contracts forked from Uniswap v2 to support the permissionless creation of ERC-1155/ERC-20 asset pairs, where the ERC-1155’s in the pair are ‘Fraktions’ from an underlying NFT that has been fractionalized using the Fraktal.io marketplace. The marketplace is currently live on Rinkeby Testnet. It was expected to go live on Arbitrum during the month of December, and may be delayed as part of Fraktal’s strategy to launch the protocol with a stronger partner base (where the partners will mostly consist of NFT artists who will both hold ownership in the protocol and make use of the platform at it’s fullest potential). The discussion around Fraktal’s 3 month timeline can be found here.
The core team will handle building the UI and launch the new protocol. A meeting has been scheduled to evaluate the status of the project with the Raid Guild. If the smart contracts are completed, the funds held in escrow as part of the negotiations will be released to the ‘Raid Party’. At this meeting, we will discuss whether their skills will be needed to help fully integrate and ship the product. The team submitted a grant request for $10k DAI in funding to support the launch of the NFT AMM to MetaCartel. MC agreed to fund $5k in DAI to Yapeswap and pointed us towards the MC NFT Arboretum, an affiliated DAO that specifically funds NFT related projects building on Arbitrum, who will likely tribute an additional $5k to Yapeswap DAO.
The launch of the Yapeswap NFT AMM is dependent upon the launch of Frakal.io on either Ethereum Mainnet or Arbitrum. In anticipation of the release of the Fraktal Marketplace on Arbitrum this month, the core team has used Yapeswap DAO funds to provide liquidity for the YAPE token on Arbitrum Uniswap (YAPE/ETH). The YAPE token can be bridged from Mainnet to Arbitrum on the Arbitrum One Bridge, and the token address for YAPE on Arbitrum is 0xb47255F370d48Dd966b4F3B58869C1452433a5ed. The team is deliberating on where else liquidity should be added, as fragmented liquidity across multiple chains should be avoided, unless there is ample liquidity across all of the chains. As the Yapeswap DAO waits for the Fraktal marketplace to go live, the team will need to focus on re-opening the original ‘Yearn-ed’ pools using the new token as a reward for LP’s, raising funds with the Yape NFT project which has been a work in progress for the team over the life of the project, and negotiating deals with other DAOs, where the Yapeswap DAO has an opportunity to diversify its assets by trading YAPE for other tokens.