[HIP-11] Opening Ceremony: Introducing Top DeFi Protocols

This proposal has undergone revisions, leading to enhancements in the Rewards Distribution section.

Disclaimer: While this proposal is tailored for the leading DeFi protocols, it by no means precludes other protocols from engaging in the remainder of the games.

I. Introduction

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In a strategic move that underscores our commitment to enrich our industry’s landscape we are excited to announce an ambitious endeavor to forge dynamic partnerships some of the top DeFi protocols in the space - presented here as HIP-6.

Central to this groundbreaking initiative is our intent to reduce the cost of entry for these participants, creating a compelling impetus for a multitude of other participants (protocols or otherwise) to look into HERMES and the yield opportunities that arise from these new collaborations.

The strategic deployment of these endowments is designed to not only fortify their competitive edge but also to orchestrate an environment where the adoption of our pioneering protocol becomes an irresistible proposition. Buoyed by the benefits of reduced entry costs, these participants will gradually integrate our protocol into their existing frameworks, participate in other initiatives (“Sports” for example) and become huge power-users.

The synergistic impact of these partnerships is poised to be transformative, ushering in a period of heightened collaboration, innovation and interoperability between different protocols on various chains in an Omnichain environment.

II. Background and Rationale

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The synergies established through our partnerships create a foundation for long-term sustainability. As partners embrace our protocol and contribute to its refinement the entire ecosystem becomes more resilient, adaptable, and capable of weathering industry shifts. This shared commitment to sustainability ensures that our collaborations endure beyond short-term gains, fostering an enduring legacy of innovation and progress.

In regards of less tangible metrics we believe the space and opportunities for collective learning and development can grow exponentially. Especially between us and protocols similar to ours. Partners can share insights, best practices and innovative strategies that have proven successful in their respective niches. This collective knowledge exchange enriches the protocol, infusing it with real-world expertise and ensuring its continuous evolution to meet the dynamic demands of the industry.

III. Proposal Details

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Methodology: Defi Llama

Allocated Budget: 5M bHermes

Protocols Featured:

Reward Distribution:

1. Upfront Allocation and Early Commitment:

  - Protocols engaging in the first three weeks and publicly announcing their involvement on official channels by the end of Week 3 are entitled to an upfront allocation of bHERMES rewards. These rewards are issued as soon as possible, either at the outset of Week 1 or immediately after their public commitment.

  - The upfront rewards represent a projection of full engagement from all partners. If a protocol chooses not to claim their upfront allocation, it will be available to them for distribution at the season’s end, assuming they meet the minimum participation requirements.

2. End-of-Season Rewards Eligibility:

  - Protocols must actively participate in at least 5 of the 12 weeks of the season to qualify for the final rewards distribution.

  - Protocols that do not opt for upfront rewards and meet the participation threshold will receive their initially calculated share at the end of the season. Other protocols will only be eligible for additional rewards accruing from the pool of non-participating protocols.

The distribution of bHERMES tokens is based on the cube root of each protocol's total Value Locked (TVL), which determines a fair and equitable allocation among all participating protocols without being directly proportional to the TVL.

Example Scenario

Total TVL across all categories: $31,529,178,216.76

Total Rewards across all categories: 5,000,000.00 bHERMES

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Stablecoin	TVL (USD)	Rewards (bHERMES)
MakerDAO	$4,404,439,429.31	470,847.97
Liquity	$587,097,816.79	240,521.54
Lybra Finance	$237,062,845.65	177,775.39
Abracadabra	$103,114,523.29	134,696.74
Inverse Finance	$58,460,094.32	111,481.72
Alchemix	$49,783,509.20	105,668.53
Frax	$49,070,954.23	105,161.96
Total	$5,489,029,172.78	1,346,153.85

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Liquid Staking	TVL (USD)	Rewards (bHERMES)
Lido	$14,055,945,303.84	441,737.10
Rocket Pool	$1,734,005,831.27	219,901.08
Eigen layer	$211,892,564.11	109,122.86
StakeWise	$160,976,397.63	99,570.63
Stader	$123,722,839.73	91,206.78
Total	$16,286,542,936.57	961,538.46

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Yield	TVL (USD)	Rewards (bHERMES)
Convex Finance	$1,492,783,602.68	321,939.30
Yearn Finance	$301,803,095.01	188,951.18
Aura	$296,572,639.34	187,853.26
Pendle	$166,195,389.76	154,875.02
StakeDao	$56,231,170.77	107,919.71
Total	$2,313,585,897.56	961,538.46

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Lending	TVL (USD)	Rewards (bHERMES)
Aave	$4,706,047,421.04	302,730.46
Compound	$1,123,717,131.84	187,811.86
Silo Finance	$109,329,874.29	86,380.75
Total	$5,939,094,427.17	576,923.08

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Chains	TVL (USD)	Rewards (bHERMES)
Arbitrum	$1,687,768,903.47	253,779.11
Optimism	$595,178,931.88	179,294.67
Base	$307,375,040.21	143,849.30
Total	$2,590,322,875.57	576,923.08

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Dexes/Derivs	TVL (USD)	Rewards (bHERMES)
Balancer	$677,062,304.19	214,215.12
GMX	$448,833,853.11	186,782.33
Synthetix	$375,029,625.38	175,925.63
Total	$1,500,925,782.68	576,923.08

IV. Implementation Plan

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A. Proposal Refinement

The proposed 'Opening Ceremony' Event will be subject to community discourse and feedback, with all pertinent insights integrated into the final version.

B. Explaining the grant system

This event will be seamlessly incorporated into the Hermes Olympics partner Program initiative.

V. Governance Considerations

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Governance considerations play a pivotal role in ensuring the success, transparency, and sustainability of the initiative. Let’s explore the governance considerations for each of the parameters:

A. Adjustable parameters:

As usual every aspect of this proposal is adjustable, from the budgeting, to the target audience and amount of time dedicated to this initiative all parameters can be adjusted according to the communities feedback.

B. Decision-Making Methodology

In all these governance considerations, transparency, accountability, and the establishment of clear communication channels are paramount. Additionally, involving more members in the input collection before crafting the governance framework can provide a solid foundation for the initiative’s success.

Remember that flexibility is key, as the industry landscape can evolve rapidly and the governance framework should be adaptable to accommodate changes while maintaining the core principles of collaboration, value creation and sustainability.

VI. Community Engagement and Support

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Community engagement and support are critical for the success of this initiative and the overall Hermes Partnership Program. To ensure widespread participation and understanding, the following initiatives will be undertaken:

1. Collaborations: Explaining in detail in which way we’ll collaborate with this future partners:

• Strategic Integration

• Customization and Innovation

• Resource Optimization

• Mutual Growth and Exposure

• Collective Learning and Development

• Long-term Sustainability

2. Community Forums: Establish community forums where participants can discuss the initiative sharing their reaction as they keep tabs on the developments week by week

3. AMA Sessions: Conduct Ask-Me-Anything (AMA) sessions with project representatives and team members to address any concerns or doubts.

VII. Next Steps and Decision-Making Process

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Once the proposal garners consensus and support from the community by following our governance process, it will be officially ratified, and the allocation of bHermes tokens to the this new participants will be determined.

VIII. Conclusion

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In conclusion, our strategic vision sums up “build and they will come” with a twist. As we pave the way for a more interconnected, collaborative, and prosperous future, we invite all to join us in this journey’s next step. Never forgetting where we came from, the future for our ecosystem is one where every participant, regardless of scale is empowered to contribute, innovate, and succeed.

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