SpiritSwap Multichain

Proposal for Upper Octave to take SpiritSwap Multi-Chain.

Upper Octave (UO) is a developer staffing firm specializing in acquiring, training, and resourcing developer solutions for companies, projects, and protocols such as SpiritSwap. Upper Octave will go by UO in this proposal.

We had a large role in the initial development of SpiritSwap, resourcing some of the developers that contributed to the DAO as early as the launch of inSPIRIT back in August of 2021.

With SpiritSwaps DAO structure, anyone can contribute to the SpiritSwap DAO, similar to SushiSwap's approach to organization and structure. As such, UO is proposing to contribute, once again, to SpiritSwap by finding a solution to the multi-chain conundrum. It is evident the community is eager for this to happen; I have observed this mentioned several times by the community in Discord; however, as the mods have responded (and rightly so) until someone officially proposes to the DAO, to do so, nothing can be done as there is no centralized "team" making decisions, but rather a collective of individuals contributing on their own accord.

UO will take SpiritSwap multichain to the Canto blockchain as a new token. UO will also maintain and service the protocol for 1 month after deployment to ensure there is protocol support on Canto. A token allocation will be distributed to UO and other entities as shown in the tokenomics section below. As long as the 15% token allocation can cover UO’s costs + margin, UO will continue to service the protocol. Otherwise, the DAO may create a service contract with UO for future support.

Why multi-chain?

It's no secret that Fantom has suffered a significant downturn in interest from the community, which has led to stagnating liquidity, volume, and, subsequently, fees. As such, to remain agile and continue to look for new opportunities for inSPIRIT holders, UO feels exploring support for other chains is required to continue the momentum for SpiritSwap.

Going multi-chain is no easy feat. One simply can't divide emissions halfway through an emission schedule and use these to incentivize an entirely new chain; it's simply not sustainable or feasible given the "flywheel" effect of a new token is lost when taking such an approach. We have seen many DEXs try this in the past and fail. As such, careful consideration needs to be taken when assessing options for a multi-chain expansion of a protocol.

To solve this problem, UO is requesting from the DAO to once again gain access to SpiritSwaps Repos, to design and deploy a new tokenomic system that supports going multi-chain to a new and emerging Layer1, Canto. Should repo access be granted, UO will also make the necessary updates to the existing UI to allow for support of this new chain.

About / why Canto

1. Canto is an emerging blockchain that plans to provide gas rebates back to the contract deployers to incentivize growth and innovation. https://canto.mirror.xyz/QjMcVxG65ScvuK0uMQ9W7I0gyo77jrEUIKibxWz0ebI

2. 100 Million TVL, good stable coin inflows https://defillama.com/stablecoins/chains

3. Limited competition. Good opportunity to collab with forteswap and use the same underlying AMM without any downside to SPIRIT tokenomics. https://defillama.com/stablecoins/Canto

Canto offers a unique incentive (similar to SpiritSwaps protocol incentive) where by 25% of Gas used on protocol contracts is given to the protocol who own those contracts. In this case any gas used for transacting across SpiritSwap contracts will result in this 25% being sent to the SpiritSwap treasury as another source of income for the DAO.

Close contact at Canto chain. Canto is a tight knit community with a lot of defi OGs with a collaborative rather than competitive environment.

Compensation

Upper Octave: 15% - Locked 4 years Admin Guru: 5% - Locked 4 years inSPIRIT: 50% - Locked 4 years Protocols: 30% - Locked 4 years

DAO revenue

SOUL-CANTO LP Fees go to DAO treasury 5% emissions go to DAO treasury Gas rebates go to DAO treasury

Tokenomics

UO will deploy SOUL, a new token on Canto. WIth that, inSPIRIT holders are compensated and prioritized in this new phase of SpiritSwap. UO will be building the Spirit V2 system on top of forteswap AMM on Canto. Both systems on Fantom and Canto will run simultaneously.

SOUL will be the name of the new token on Canto. SPIRIT & SOUL will be separate tokens with separate emission schedules. Each token’s success depends on how well the system works on their respective chain.

SOUL will be lock-dropped to inSPIRIT holders based on locked amounts in a future snapshot. If you have inSPIRIT on Fantom, you will receive locked SOUL on Canto. Locked SOUL (called veSOUL) will be used to govern SOUL emissions to gauges and earn rebases and voting fees.

Initial supply will be 10 million SOUL and that gets lock-dropped based on the compensation section percentages. The first week of emissions will be 400K SOUL which is 4% of the supply. Emissions will decay by 1% every week until they hit tail emissions which is 0.2% of the total supply. While there is no max supply and tail emissions continue indefinitely at 0.2%, the rebases will prevent locked tokens from being diluted. Lastly, 5% of emissions per week go to the DAO.

Timeline

Although software development is unpredictable, it is still helpful to get even a raw estimate. In this case, Upper Octave predicts the actions in this proposal will take around 2.5 to 3 months.

Actions in this proposal

UO will deploy SpiritV2 on Canto and will maintain the protocol for 1 month If the 15% token allocation can provide enough rewards and fees to cover costs + margin, UO will continue to service the protocol. Otherwise, the DAO may submit a new proposal to create a service contract with UO.

Adminguru’s service contract will be upgraded with a monthly pay of around ~$10K to maintain the community and management of the protocol.

Notes

Vote Yes: Give Upper Octave access to the repos so expansion to Canto can take place

Vote No: Do nothing