SDIR#4 | StakeDAO x XBE Finance Partnership

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StakeDAO x XBE Finance

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Summary:

The purpose of this proposal is to start a discussion around creating a strong mutualistic partnership between XBE Finance and StakeDAO to both suit our underlying objectives.

TL;DR

  • Brief summary of XBE
  • The collaborative possibilities.
  • The benefits to each protocol.
  • Additional metrics about XBE.

Introduction:

As an XBE contributor and member of the DAO team, I want to share the idea about a possible integration between the two protocols. Creating synergy during these turbulent times are what allow for protocols to survive and flourish in the end. Continuing to build and expand onto new concepts, not only allows for communities to come together & unite, but it allows for protocols to build on one another, which is ultimately what DeFi has been all about. In this proposal I will share a short overview of the XBE protocol, its vision, and the ways that we as DAOs can integrate in future:

Project Presentation:

Protocol name = XBE Finance
Audit(s) links = GitHub - XBEfinance/audits
Supported chain(s) = Ethereum (and expanding to others)
Discord/Twitter/Telegram links are attached to the short summary below.

Context & Rationale:

XBE Finance

XBE Finance can be summarised as being an integrated financial protocol with a vision of bringing TradFi to Curve and Convex. Phase 1 of the protocol creates capital & gas efficiency for Curve liquidity, while simultaneously enhancing yield on specific Curve pools. The fundamental design also allows for users to earn $CRV, $CVX and $XBE with or without liquidity, by either deploying, or by expanding TVL into Curve. When deploying liquidity users receive xhCurve LP tokens, which are fungible, ERC20 compatible, yield bearing tokens. This implementation creates a new paradigm of yield generative LP tokens which earn just by holding, and we are yet to tap into the potential thereof. Phase 2 of the protocol development is focused on institutional actors coming into DeFi and more specifically, deploying into XBE & indirectly Curve. It also includes deployments onto other L1/L2 chains and revamping the initial product offering of tokenized securities.

In a more generalized way of putting it – XBE aims to open the Curve ecosystem to all, and make it as seamless as possible to yield within DeFi. We want to allow for people to earn regardless of where they come from – whether they are in DeFi, on the street, or even on Wall Street.

For a more in-depth explainer on XBE Finance, make sure to read this summary:

Collaborative Possibilities:

With StakeDAO and XBE Finance both having similar visions of making DeFi effortless, there is a lot of potential in creating a mutualistic relationship between each other. These include:

  • XBE listing SDT/ETH as their next pool (in addition to the cvxCRV and FRAX pool they currently have) to create deeper liquidity within the StakeDAO Curve Pool. By aiming to enlarge liquidity in the base pair of the protocol, it makes it more attractive for larger investors to trade, in addition to creating a strong foundation for inflationary token spirals that are prominently found in low liquidity pools.

  • Adding passive strategies on StakeDAO to deploy Curve LP through XBE (who then deploys this into Convex, and subsequently Curve). Liquidity provider’s earn $CRV, $CVX, $XBE

  • StakeDAO creating an XB referral code to share with their community, and earn $CRV, $CVX & $XBE from their referred users’ claims (without having to deploy any liquidity).

  • StakeDAO creating an XBE liquid locker, acting as a token sink to acquire governance power across the XBE DAO

  • XBE providing the initial counterparty liquidity for an XBE/sdXBE locker. (Subject to governance vote)

  • Creating capital efficiency for StakeDAO Curve liquidity

By creating a long term strategic relationship between the two DAOs, we as XBE see a massive potential in StakeDAO being the hub for decentralised financial services, and allowing for people to get more out of their crypto portfolios. We at XBE also envision this, and want to extend those services into TradFi by onboarding institutions into DeFi in a compliant and seamless way. It is evident that both DAOs want to make the whole complex system as easy-to-use as possible. The heart of DeFi is still in its infancy, and together, we can expand it to every street corner we know.

Benefits of each DAO:

For StakeDAO:

  • Acquire protocol owned $CRV, $CVX & $XBE without having to deploy any liquidity, by utilising the XB referral product.
  • Create deeper liquidity for the SDT/ETH Curve factory pool (through enhancing the APR on the Convex vault).
  • StakeDAO acquires veXBE from its liquid locker to have higher voting power across the XBE DAO to direct emissions in favour of their pool (ultimately creating a deeper liquidity and opening the possibility for institutional funds to flow through in phase 2 onwards).
  • Creating capital efficiency for their StakeDAO Curve LP (ie. A yield generative xhSDT LP token with endless possibilities)
  • Unified communities with co-marketing, and possible campaigns .

For XBE:

  • Expanding the listed Curve pools to other communities for them to experience gas & capital efficient xh LP tokens.
  • Having StakeDAO create an XB referral code to bring more TVL into XBE and indirectly Curve.
  • Having XBE listed on StakeDAOs passive strategies page
  • Co-marketing campaigns with each others communities

Project metrics:

Hive TVL: ~$2mil

Circulating Supply Market Cap: $1,027,076

Amount staked (including locked): 66%

Amount locked as veXBE: 38%

Circulating supply: 12,396

Total supply: 40,000

Please may we use this governance post as a discussion point for any of the StakeDAO community to give their feedback. If after the discussion is positive, we can amend this post and take it to a governance vote for implementation.

Yours Truly
0xBEE

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