Hello all, fellow Marinatooors. Crypto_notte here, fellow team member behind Vyper Protocol. I am also an early user (and researcher) of mSOL as you can see here:
We propose MarinadeDAO to become a strategic - and sole - LP in Vyper new MNDE market and benefit by:
- adding use-cases for MNDE outside of governance
- adding a diversified source of revenues to Treasury
We also propose opening a new derivative market to offer synthetic leverage staking with a 1-click solution.
We ask for 100’000 MNDE to be used in the following ways (around 4’000$ as of writing):
80’000 MNDE to increase liquidity on the existing MNDE digital market.
20’000 MNDE as a grant to the Vyper team to become a strategic and active partner in MarinadeDAO and participate in governance decision.
As of today there are little use cases for MNDE outside of governance. As of yesterday, MNDE is accepted as valid collateral to trade on Vyper Protocol. Users are able to use MNDE to trade on the future price of mSOL.
We propose for MarinadeDAO to become the sole LP in this new market by deploying majority of the 80’000 MNDE into it. By being the sole LP, MarinadeDAO will become the counterparty to users’ trading. In this way MarinadeDAO earns trading fees, premiums and visibility.
We also want to create an innovative derivative called ‘Marinade fixed return note’. This product allows to get exposure to a levered mSOL staking position with 1-click. Right now if one user wants to to leverage stake there are no 1-click solution and they need to manually “lend mSOL - borrow SOL - stake to mSOL” multiple times, this is not straightforward for a retail user.
Vyper Protocol can be used to build a synthetic position that emulate the returns of the strategy above, in this way the user can replicate a levered staking return with 1-click only. Sophisticated users can replicate the strategy, charge a fee, and ‘pass’ the fixed return to the retail users.
Overall we believe new derivatives markets for MNDE and mSOL can increase the resilience of DeFi and are a positive addition to the ecosystem with a relatively small disburse. Derivatives allow to price and transfer risk between users.
In this case MNDE markets would allow users - who might otherwise sell the token - to use it as collateral to trade SOL. Plus, the ‘Marinade fixed return note’ would open complex staking strategies to a broader retail public, increasing the visibility and outreach of the MarinadeDAO.
Last but not least, the DAO would benefits from entrance in its governance of a well established DeFi protocol, a partnership that could lead to other new markets in the future.
We are hosting tomorrow a Twitter space with Marinade to discuss the proposal and gather feedbacks and opinions, we would love to take everyone’s input to better shape the proposal.
Twitter space and reminder can be found HERE → https://twitter.com/MarinadeFinance/status/1635727128313430019