Summary

For the last couple of months, a small team has been working on relaunching Scream as “Echoes” on Sonic.

The design and development of Echoes V1 are almost complete. V1 is essentially a fork of CompoundV2 + Yearn Boosted Staker’s staking module for revenue share. This is a solid product in itself, but the “lending protocol” competition is already quite fierce on Sonic.

To ensure that Echoes will be the top lending protocol, we aim to push the boundaries and immediately work on a V2 which allows for permissionless (isolated) pool creation for both long-tail and short-tail assets - think Morpho, but for short-tail assets also. This will require a robust price oracle to be created, and we’ve already had discussions with a team to do this.

This proposal will serve to outline the status and future of Scream. There are three major topics:

1. Final bad debt compensations from the earlier 2022 Scream Multichain exploit.
2. Scream ($SCREAM) -> Echoes ($O) token migration.
3. Proposal for funding the creation of the price oracle for Echoes V2’s permissionless lending pools.

#1: Final Scream “bad debt” compensation

The Scream Treasury holds ~5 million wFTM. As a final compensation for the Scream bad debt holders, we propose to migrate the wFTM to wS on Sonic, and allow bad debt holders to pro-rata claim wS relative to the USD value of the bad debt they held at the time of the exploit. There will be no distinction between lend-only users and depositors with borrows.

Claims will be available for 6 months. After this period, the remaining wS will be transferred to the Echoes Treasury to continue building out the protocol. Once the migration process is initiated, all claims on fUSD/SCREAM/bDEI on Fantom will be terminated. At this point, any remaining fUSD and SCREAM will be returned to the Scream (Echoes) Treasury. We will then burn the bDEI on Fantom & any bDEI queries will be directed to the DEUS discord.

#2: Scream (SCREAM) => Echoes (O) Token Migration

As part of the relaunch, we need to modify the tokenomics to have incentives for users, team members, and to ensure the project is capable of competing and succeeding against other competitors on Sonic. This means some dilution of the current SCREAM supply, increasing the supply from 2 million SCREAM, to 200 million O. The new tokenomics and release schedule are defined below:

The remaining 17.5% SCREAM + 144k WFTM currently in the LP will also be migrated to Sonic and used as the new O-S LP.

#3: Echoes V2 (permissionless lending pools) Funding

Firstly, we’ll briefly outline the current Echoes V1 project. As mentioned in the opening section, Echoes V1 is a combination of Compound V2 and Yearn’s YBS system.

Outline

From a lending perspective, it works the same as Compound V2:

• Every market (e.g. oUSDC, oS) receives a portion of O per block.
• That O is split 50/50 between lenders and borrowers in that market.
• The distribution is proportional to the amount of interest accrued, so the more you lend or borrow (in USD value), the more O you earn.

The Yearn YBS module allows users to stake the Echoes (O) token and receive revenue share proportional to the amount staked and duration of the staking. 80% of all revenue will be shared with stakers.

Progress

The website and app UI have been professionally designed (ex-Spotify designer and brand lead) and are fully aligned with the Sonic aesthetic. Echoes will be a Sonic-native protocol. Development is quite far along, you can view the website here: https://echoes.so

The app UI for V1 is also fully built, and we’re currently deploying the smart contracts, hooking them up, and testing.

Echoes will be a premium product on Sonic.

Proposal

Whilst V1 is a very good product, there is stiff competition on Sonic already. We want to be the #1 lending protocol on Sonic and the first protocol anyone thinks of when they want to lend/borrow on Sonic.

To achieve this, we plan to build out isolated permissionless lending pools - somewhat similar to Morpho, but allowing pool creation for both short-tail and long-tail assets, to fully differentiate ourselves from competitors and do something novel in Web3.

For this, we need to build a robust and stable pricing oracle. We have already discussed with the Muon team to develop this, and have a quote of $150k USD for the work. This work would include full development, testing, R&D, and simulations against all previous exploits/hacks.

To fund this development, we propose to use some of the 5 million wFTM from the Scream Treasury to pay for the development. At the current price of FTM, that would amount to ~300k wFTM. The remaining 4.7million wFTM would be used in the final act of ‘bad debt’ compensation, as mentioned above.

Echoes will effectively buy and own the business license from Muon for this oracle.

Milestones

The following Milestones outline the proposed work for the V2 oracle.

Time frames are estimated from the date of a quorum of the proposal and receipt of the Milestone 1 payment.

Milestone 1 - $60k (already developed)

• TWAP price feed using multichain on-chain data and Subgraphs for historical data
• Outlier detection algorithm
• MVP of automation service and executor nodes to fulfill price feed requests
• A scalable off-chain price feed that monitors 15 CEXs
• Muon Apps to aggregate price feeds
• A custom subnet on Muon to run all off-chain components on TSS nodes
• An MVP of MuonAVS to run the off-chain components on EigenLayer as an additional layer of security (if needed)
• An RPC aggregator that combines multiple RPC providers to optimize performance and enhance availability

Milestone 2 - $30k (~3 weeks)

• Clone Chainlink price feed smart contracts and integrate them with Muon
• Finalizing smart contracts and end-to-end testing on testnet
• Internal audit of smart contracts and off-chain components
• Backtest price feeds

Milestone 3 - $30k (~3 weeks)

• Scaling and running prod services
• Run fault-tolerant executor nodes, price fetchers, etc
• Launch on mainnet with support for up to 1,000 tokens
• Beta test on mainnet

Milestone 3 - $30k (~3 weeks)

• Monitoring services for price monitoring nodes, feeds, etc
• Implement an alternative solution to Subgraphs for historical data
• Implementing a solution that allows projects to add new tokens and adjust data sources for existing tokens in TWAP price feeds
• Finding single points of failure and fixing them

Voting Choices

For: I agree to the new Echoes tokenomics, token migration, final “bad debt” compensation, and development of Echoes V2.

Against: Do nothing. Scream and any potential relaunch is dead.