OTC Sale of Hundred Finance’s Solidly veNFT #21

This vote is being put forward to ascertain whether veHND token holders approve or disapprove of the Hundred Finance team carrying out an OTC sale, on behalf of the protocol, of Solidly veNFT #21.

Hundred Finance received the veNFT as one of 25 projects on the Fantom network chosen according to their total value locked (TVL) at a snapshot taken prior to the release of the Solidly exchange. While more details can be read about the veNFT here, holders of these veNFT’s were granted 25% of the protocol in perpetuity and this percentage remains fixed due to dilution not applying to them. Since Solidly’s launch the vote weight applied to the veNFT has been used to incentivize the Solidly HND-wFTM pool, with it growing to become our largest source of liquidity.

In light of the implications of a sale, we would like to ask our veHND community to decide whether the treasury should sell its veNFT #21 in an over-the-counter (OTC) swap for $1.1M in stablecoins, as is currently offered to us. This would be the minimum accepted to complete the sale, should this vote pass, though we will remain open to offers made by other buyers during the voting period. The revenue from the sale would be sent to the project treasury, where it would be used to develop the project according to its objectives as laid out in our documentation.

veNFT #21

SOLID locked: 753,410 Vest Expires: 2026-02-19

Pros:

• The addition of ample stablecoin funds to the protocol treasury, which it currently lacks, that can be used to fund growth.
• An OTC sale of veNFT #21 will not impact the price of SOLID.

Cons:

• The veNFT #21 was received by Hundred Finance with the ambition that Solidly would initially be steered by protocols contributing to the Fantom ecosystem. Selling the veNFT not only abandons this role, it also contributes to management of the exchange being more centralized should the current bidder receive the veNFT.
• As above, selling veNFT #21 will result in Hundred Finance losing essentially all of its voting power over Solidly. What is more, Solidly locked in veNFT is free from dilution, so this equates to a proportional “ownership” of the protocol.
• Loss of voting power will almost certainly remove incentives for the HND/wFTM pool that currently provides the largest portion of the protocol’s cross-chain liquidity.
• There is the possibility that the value of the veNFT could increase in line with Solidly’s fortunes. This thus raises the possibility that the veNFT could be sold too cheap.
• Even if Solidly were to remain steady or fall in value, judging the most suitable price for the veNFT remains speculative.
• Should forks of Solidly occur that distribute tokens/value to veNFT holders, Hundred Finance will, in all likelihood, receive no benefit.

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We request that veHND holders submit votes indicating either their approval or disapproval for this proposed OTC sale.

Due to the volatility of the SOLID token price, the buyer has requested a 2-day window in which to vote. Please do not delay in voting.

For more discussion, please visit our Discord channel.