LIP 011 - Leveraging Anji Foundation Assets

By Valiander (Foundation Director) Copyright and related rights waived via CC0.

Disclosure

As a Foundation Director, I have a duty under the Lunar DAO Charter to manage Lunar Foundation operations to the best of my ability to maximize the benefit to Lunar DAO.

Abstract

The Lunar Foundation proposes to leverage resources recently acquired by the Anji Foundation for the benefit of Lunar DAO.

Motivation

The Anji Foundation recently transferred virtually all of their intellectual property to the Lunar Foundation, including an extensive decentralized exchange deployed on seven (7) blockchains.

Rationale

The Lunar Foundation requires Lunar DAO's approval to leverage assets within the Lunar Ecosystem.

Analysis

Technical Benefits

The Lunar Foundation completed an extensive diligence process prior to signing the agreement and was impressed with the Anji team's attention to detail across their entire codebase, from the UI down to the smart contracts.

Anji's routing contracts will be upgraded with Lunar's techniques for achieving near-perfect audits to seamlessly integrate with our fantastic build, test, and deploy infrastructure.

Anji's use of Angular as their front-end technology gives Lunar with a clean way to integrate the Swap widget with Lunar OmniWallet and Portfolio in a short period of time, while also giving us a clean and Microsoft-supported path to port everything directly over to Blazor.

By leveraging the Anji codebase within the Lunar ecosystem, we can check the boxes on the "easy" problems and put our full attention on the most challenging problem in crypto today: building cross-chain swapping mechanisms that are hardened against constant attacks.

Roadmap Benefits

The Lunar Foundation has posted an extensive breakdown of our vision for integrating Anji products into the Lunar Ecosystem. This would allow us to deliver the following features much earlier than previously planned:

• A decentralized exchange

  • System-optimized routing that allows the user to decide their route of choice

  • Sophisticated fiat-to-crypto on-ramping

  • Token staking

  • End-to-end token swaps on 100% Lunar-owned technology in Lunar apps

  • Multi-chain LNR

DAO members are heavily encouraged to read and re-read the link above to understand more about how the roadmap will be affected by these changes.

Liquidity Benefits

The crypto winter has been hard on everyone, and for tokens that launched on the BNB Chain in late 2021, it has been especially hard. Binance's missteps in the space have had a dramatic impact on both companies' tokens, and the future of BNB's ecosystem value is in doubt.

By merging into a single ecosystem, the Lunar Foundation will be able to more seamlessly balance our liquidity between chain-native tokens and stablecoins. That will reduce the likelihood that other companies' mistakes have on the thriving ecosystem we are working tirelessly to build.

Integration Challenges

Most of the challenges of this integration will come from token holders. After a successful vote, the Lunar Ecosystem will be the home to nearly 50,000 holders... and it is impossible to keep that many people happy.

Some holders may complain. A few will likely be vocal about their dissatisfaction... and that will create work for the team to counter. However, the Lunar Foundation has faced these challenges before, and this time we have a track record of consistent execution to back up the strength of our convictions.

Conclusion

The Lunar Foundation strongly believes that the benefits are clear, and the challenges ahead are worth enduring. The Foundation Directors are unanimous in their belief that this vote should be adopted and are excited to lead the Lunar Ecosystem into its next phase of growth.

Proposed Changes

1. Rebrand AnjiSwap and leverage their same-chain routing system as the foundation for Lunar's cross-chain swapping engine

   2. Rebrand the AnjiSwap Lite widget and continue to make it available to 3rd party developers

   3. Deeply integrate Anji technology into the product line everywhere it makes sense to do so

   4. Create a new ANJI-LNR vesting token on the Unvest.io platform and issue said token to current ANJI holders

   5. The ANJI-LNR token will have a six (6) month vesting schedule with a three (3) month cliff

      2. ANJI-LNR will be issued at 30% of its USD value at the time of the snapshot (a ratio of roughly 1:733 [1 ANJI-LNR to every 733 ANJI])

      3. ANJI-LNR will be 1:1 redeemable to LNR during the vesting period

      4. ANJI-LNR will be added to Snapshot as a voting token

      5. ANJI-LNR have roughly 3x the voting power of LNR during the vesting period

         2. Following the vesting period, ANJI-LNR will be removed from Snaphot as a voting token

         3. Modify the Lunar DAO Bylaws to allow the ANJI-LNR contract for admission into Lunar DAO.

Pros

1. The Lunar Ecosystem will have a functioning decentralized exchange with an excellent visual design and advanced capabilities

   2. We will be able to replace the Flooz widget inside the Lunar Portfolio app with Lunar-owned technology, including intelligent routing and significantly advanced crypto on-ramping

   3. Lunar-owned technology will be deployed on seven (7) different blockchains, making LNR one step closer to being a multi-chain utility token

   4. The Lunar Ecosystem will get approximately 8,700 new holders (approximately 600 of the approximately 9,300 total ANJI holders already hold LNR)

Cons

1. Using LNR from the Treasury reduces the amount of LNR available to the Treasury in the future

   2. Some ANJI holders may not be happy about the ANJI to LNR conversion rate, or the vesting schedule

Steps to Implement

• Redeploy the Anji ecosystem on Lunar infrastructure

  • Redirect Anji websites to specifically-designed landing pages on Lunar.io to help ANJI holders understand the transition

  • Ensure the Anji Foundation has added migration headers to ANJI token profiles

  • Create, deploy, and airdrop the ANJI-LNR token on the BNB Chain

  • Update AnjiSwap with Lunar branding

Timeline

• Token migration support: 10-20 hours

  • Initial infrastructure migration: 5-20 hours

  • Anji software rebrand: 10-30 hours

  • Deep technology integration: ongoing

Associated Costs

None