YapeswapDAO Update — November 7th
ERC-1155 NFT AMM Pools
Yapeswap’s next novel AMM venture is building pools that can support both ERC-1115 tokens and ERC-20’s as well. Why? Because Fraktal.io has created a marketplace capable of fractionalizing NFT’s (both ERC-721 and ERC-1155) into 10,000 individual ERC-1155 NFT’s.
Fraktal’s blog series FraktalNFT explains in more detail why NFT fractionalization is a critical development in unlocking the true value of these assets.
Among the things NFT holders can do with their 10,000 tokenized pieces of their original asset is provide liquidity, just like they do with their other assets in Yapeswap’s original pools. In this scenario, picture someone holding a PFP avatar NFT, like a CyberKong or a Bored Ape. They’ll be able to use Fraktal’s marketplace to break down the NFT, then bring them over to Yapeswap and pair them with ETH to create LP tokens and permissionlessly open a pool on Yapeswap. In other words, using the new tools from Fraktal and Yapeswap, NFT holders will be able to open a liquidity pools for single NFTs.
This will allow for holders of the original NFTs to earn yield on their assets without selling them outright. It will also allow other parties to gain exposure to high value NFT projects, which includes those that have been priced out of a given collection entirely and those who simply prefer not to spend such a large amount on one single asset and would rather hold a tokenized portion of it. Eventually, as these pools settle and become more numerous on our platform, they will provide critical pricing data that will allow NFT’s, at least those with verified pricing on our platform, to be used in DeFi on dApps like Aave and staked as collateral.
Replacing the YAPE token trinity
The Yapeswap token trinity has proved to be both confusing and inefficient to use from a gas cost perspective. Not only this, but allocating a percentage of YAPE rewards to incentivize the new pools is undesirable, as the YAPE token emissions schedule is not constant, and roughly 17% of the YAPE that will ever exist has already been emitted and distributed.
To solve the problems of hosting features that are infeasible to use due to gas costs and providing adequate incentives for the LP’s who enter the new NFT pools, the core team wants to convince the DAO to vote in favor of minting a new token and migrating all of the DAO’s assets to a contract hosted on the DAOHaus platform.
In the current token trinity model, only locked YAPE (veYAPE) can be used to vote on DAO governance issues. In the new model, there will be no voting escrow token and there will not be additional rewards for holding or locking the protocol’s native token. All native tokens held will be usable as votes in the new DAO.
In order to distribute the new token to original YAPE investors fairly, these changes must be announced and discussed in detail in the Yapeswap forum and taken to a snapshot vote. Assuming that members of the DAO are on board with migrating the DAO assets, the core team will announce a date when a snapshot will taken of all the wallets holding YAPE and how much they hold (the YAPE emissions and pools will be shut down 24–48 hrs prior to the snapshot being taken). The new Yapeswap token will then be airdropped into all of these wallets shortly after. It is important to understand that the snapshot will only show the number of YAPE that someone holds in their wallet and will not include unharvested rewards or active burn rewards, so once the date of the snapshot is announced, YAPE farmers will have a limited amount of time to harvest their rewards and stop farming.
As veYAPE tokens are not able to be unlocked for YAPE but must be accounted for as a part of the airdrop, we will have an open ‘role-call’ style snapshot vote, where all of the addresses that vote will have the number of veYAPE that they voted with added to their YAPE token total to be received in the airdrop. We will give ample opportunities for veYAPE holders to vote and have their tokens accounted for and will work hard to make sure everyone receives the amount of tokens that they are owed in the airdrop. The new token will have vesting requirements for all holders. The specifics of the vesting schedule will be verified at a later date, but will be along the lines of 3–6 month linear vesting for those that receive YAPE airdrops and 6–12 months vesting for tokens distributed to the new DAO core team.
The original Yapeswap ‘yearned’ pools will be shut down entirely so that the new token can be focused on rewarding liquidity providers of the new NFT pools, but will be re-opened with rewards incentives from the new token after the NFT pools are up and running.
The new fixed token supply will be 911,000,000 which is what the total token supply of YAPE would have reached after 5 years of emissions on the current schedule. The core team will receive 10% of the new fixed supply (the original core contribution allocations were setup based off of cYAPE burns and therefore the original core team is not in possession of a significant amount of YAPE). By the time the original YAPE emissions are shut off, at most 201,000,000 YAPE tokens will be in existence and will be effectively replaced via the airdrop. Therefore, 10% of the new tokens will be allocated to the new core team, roughly 20% will be airdropped to the original YAPE holders, and the other 70% will be held in the new Yapeswap DAO treasury. Moving forward, DAO members will vote to decide on reward allocations to Yapeswap pools over set periods of time, rather than the pools receiving a percentage of the weekly YAPE emissions.
$veYAPE reward distribution recap
The $YAPE rewards for holding $veYAPE has been distributed 9 times since launch day. There are 14 addresses currently holding locked $YAPE tokens ($veYAPE). To view the $veYAPE rewards distribution history, follow the link below to the Etherscan of the Yapeswap Token Emitter contract and scroll down to view the history of on-chain contract interactions.
The rewards have been being distributed permissionlessly by $veYAPE holders intermittently as shown on the Token Emitter contract Etherscan. These $veYAPE holders have been using the ‘distribute()’ function that surfaces on the Yapeswap DAO user interface at the end of each rewards epoch, which is set to 1 week. A complete description of the functionality of this feature has been added to the Yapeswap Documentation page.
Yield Apes NFT
The Yapeswap NFT project that has been teased for weeks is all but ready to be launched. The contracts are complete and the web3 features on the mint page are being finalized. The vision behind the NFT project from the start was to create a piece of art that adds value to the Yapeswap community. The assets were designed by CJ8 from the core contributors team in late July and 0xSumna curated a collection of patterns and used a script to weave them into the original assets. As we migrate our ecosystem to a new native token, DAO platform and blockchain, we are carefully considering the details of the drop and considering if there is any utility that we can add to the contract prior to the drop, such as staking or burning mechanisms or even a Loot component.
Other options to increase sales and reduce minting costs are limiting the number of NFTs we can mint. This will allow us to sell at a higher price, will be more exclusive and will not require the marketing our traditional approach would have used. This also reduces gas cost on the distribution side as there are less contract interactions. We are currently discussing how many NFTs to mint and weighing the pros and cons between releasing a smaller collection as opposed to a larger, more open mint. Above all, we want to choose the path that will make the best use of our new NFTs as a way of growing our community for the long haul.