BIOPSY-6 🧪 Update Genesis Swap Strategy, Proposal to Add ETH
One-liner: Proposal to add ETH, update Swap Weights and create 4 sequential auctions.
Strategic Purpose: Optimize protocol reserves for liquidity and meta-governance activities in leading DeSci DAOs.
TLDR
- Adds ETH to the BIO Genesis auction and adjusts bioDAO token weights
- 664,000,000 $BIO (20% of initial supply) will still be issued in exchange for 9 different assets (8 DeSci tokens + ETH)
- Implements 4 sequential auctions, each with ¼ the BIO of the original proposal, to adapt to market volatility
- The first auction will start on August 8, 2024 and run for 11 days. Subsequent auction dates and contract addresses will ONLY be announced in the BIO forum
- Maximum valuation for the first auction will be $100M FDV
- Weighting adjustments reflect changes in value of circulating supply and relative market positions of DeSci tokens
- Unless specified, all details of the auction and mechanism are the same as defined in BIOPSY-4
Description
Due to changing market conditions and tokenomics analysis, an addendum to BIOPSY-4 is proposed. The initial auction for 20% of the token supply will be split into 4 sequential auctions, with the first auction having 5% of the BIO token supply allocated. After the successful conclusion of the first auction, the remaining auctions will be defined and launched over the following months. The discussion around subsequent auctions can be followed on the BIO forum.
Additionally, ETH is added allowing users to swap ETH for BIO. ETH will serve several different purposes such as:
- Improving accessibility of the Genesis auction
- Reducing asset risk in the treasury
- Deepening liquidity in the bio network
Motivation
Given recent volatile markets, a risk mitigating strategy for the Genesis Launch has been applied. The weights of BIO per DeSci tokens have been adjusted to accommodate ETH. Additionally, the new weights reflect changes in market prices and take into account xDAO treasury holdings to ensure a fair distribution based on current market positions. The below table describes the adjusted auction parameters for the first auction.
The BIO distribution allocated for the Genesis Swap will be split on 4 subsequent auctions. Auction 1 has been allocated ¼ of the initially 20% supply, resulting in a 5% BIO supply being allocated to this auction. Decisions on subsequent auction distribution will be led by bio core pending market development.
Similarly to BIOPSY-4, each swap pair has a Deposit Cap. According to BIO allocation per auction and adjusted weights, the Caps for the first auction have been adjusted. If Deposit Caps are reached on all swap pairs, approx. $5M in asset value will be added to the BIO treasury across all tokens. The maximum FDV at this Deposit Cap will be $100M.
| Auction #1 | |||
|---|---|---|---|
| Weight (% of Swap %) | BIO Allocated | Max xDAO (Deposit Cap) | |
| VITA | 10.45% | 69,388,000.00 | 1,994,274.81 |
| HAIR | 2.00% | 13,280,000.00 | 14,635.93 |
| GROW | 2.13% | 14,110,000.00 | 1,040,157.42 |
| ATH | 2.13% | 14,110,000.00 | 1,137,580.30 |
| CRYO | 0.63% | 4,150,000.00 | 247,279.92 |
| RSC | 1.25% | 8,300,000.00 | 1,275,035.32 |
| NEURON | 2.15% | 14,276,000.00 | 1,880,027,981.81 |
| PSY | 0.65% | 4,316,000.00 | 1,300,000.00 |
| ETH | 3.63% | 24,070,000.00 | 288.75 |
| Total in auction 1 | 5% of BIO Supply | 166,000,000.00 |
This proposal supersedes BIOPSY-4 where it differs. The remaining aspects are defined by BIOPSY-4.
Off-Chain Vote
Timeline
Aug 07, 2024Proposal created
Aug 07, 2024Proposal vote started
Aug 08, 2024Proposal vote ended
Aug 08, 2024Proposal updated