SpiritSwap proposes partnership with Phantom DAO for protocol owned liquidity
SpiritSwap is delighted to announce its partnership proposal for Phantom DAO to consider, a new protocol on Fantom inspired by Olympus.
We are confident this partnership will benefit the whole Fantom ecosystem, increasing the TVL and volume of our DEX and also increasing rewards for the holders of $PHM.
To facilitate this, we will be creating a PHM-Stable boosted farm (upon completion of the boosted farm migration), where users with inSPIRIT will earn high APR rewards on their LPs based on the voting weight that inSPIRIT holders decide to allocate towards emissions on this farm. As Phantom DAO won’t have their token deployed by the time the boosted farm migration has taken place, SpiritSwap has agreed to pledge a guaranteed boosted farm allocation to Phantom DAO as a part of this partnership proposal, on the grounds that the proposal is passed. This effectively enables Phantom DAO to navigate around what will be a voting process on our forum and snapshot platform (more on this will be covered in a separate article).
Since we’re touching on this (as you might already know) we are moving towards on-chain governance for boosted farms (previously known as gauges) and the emissions will soon be directed to these gauges based on how many votes they receive. For this reason, Phantom DAO aims to become a significant holder of its own liquidity in order to be able to positively influence this process as their treasury grows.
To simplify the aforementioned for you: IF approved, Phantom DAO will be accepting Spirit LPs for bonding.
- PHM — Stable SpiritSwap LPs will be accepted by Phantom DAO bonding capital. This offers the person who’s bonding a discount on PHM tokens after the standard 7 day vesting period.
- With users bonding these LPs, they effectively become POL (Protol Owned Liquidity) of Phantom DAO.
- Phantom DAO can then use these LPs for farming SPIRIT in their boosted farm pool, which in turn will enable the protocol to take ownership of the SPIRIT tokens emitted from this farm.
- The DAO will then use these SPIRIT rewards to lock them into inSPIRIT, this inSPIRIT will allow Phantom DAO to cooperate with the SpiritSwap DAO, the essence of DeFi 2.0. Refer to the section of this article that covers “partnership benefits to SPIRIT holders” for an overview of why this approach is beneficial to our ecosystem.
Brief Background on Phantom DAO
Phantom DAO seeks to become a treasury-backed accelerator on the Fantom chain. Phantom will be focused on building infrastructure, services and protocols to support the successful growth of the Fantom blockchain, however the accelerator thesis will be broad enough to accept participants outside of Fantom where the merits of the applicant makes sense. The treasury provides a safety net for the DAO to take on concentrated accelerator participants, likely to result in outsized returns — which will be distributed 100% to the treasury to increase RFV. Phantom will be launching DAO-first.
This partnership is an important one for the Fantom chain. We are expecting to see more value bridged from other networks to Fantom ahead of Phantom’s launch. To facilitate this migration of capital, users will be able to use our DEX and Fantom bridge with a built-in complimentary faucet to bridge capital ahead of time.
The creation of a PHM-Stable boosted farm on our platform will allow Phantom’s users to farm much higher yields than traditionally possible on its POL. We are expecting APRs north of 60%, with the ability to significantly increase these yields through governance voting once we complete our transition to on-chain governance of boosted farms.
The increased demand and volume generated from this partnership will result in more swap fees for our platform which are then distributed to inSPIRIT holders. Further to this, the positive feedback loop generated by protocol owned liquidity being reinvested back into farms to generate more SPIRIT and these SPIRIT being used by the protocol to lock up said SPIRIT, will contribute towards less SPIRIT available in the circulating supply. This, in theory, should have a positive impact on the SPIRIT price.
This is just the beginning of what we see as a long standing partnership between Phantom and SpiritSwap. Phantom DAO has extremely ambitious plans for the future of their protocol, and we will do our best to help them achieve these milestones.