A few days ago, we announced the launch of our governance portal. Now, we are incredibly excited to report that we have finally published our first governance event on our portal, available here. This marks one of the many governance events to come in the near future. The community will now be able to participate in voting to drive the overall direction of DFYN.
Overview
Topic of Governance: Allocating fees earned by Dfyn.
Eligibility: Anyone who owns $DFYN tokens on the Polygon blockchain, or has staked $DFYN tokens in Dfyn vaults/liquidity pools/farms.
Snapshot Details: Snapshot has been taken at 6:30 A.M. UTC on Friday, September 3 2021 at block number 18691688 on Polygon.
Duration of Vote: The voting will start from 9:00 A.M. UTC on Friday, September 3 2021 and end at the 9:00 P.M. UTC on Wednesday, September 8 2021.
Link: https://governance.dfyn.network/#/dfyn.eth/proposal/QmSGG3oNmKf4DJQ5gNkPHG1mDqb8XsVfxQLnaRqV568Mhm
Background
The first topic of discussion to be voted on by the community will be regarding platform revenues and buybacks. We recently aggregated around $600,000 in the fees account which is currently allocated in a 50/50 DFYN/USDC liquidity pool.
A lot of community members had different suggestions as to what should be done with the fees and we figured that the best way to decide that would be via a community governance vote.
vDFYN Vaults
Before listing the available options, we want to make sure that the community knows our upcoming plans to launch a vDFYN vault (tentatively by the second week of September). These vaults will allow users to stake their DFYN tokens, in exchange for which they will be given vDFYN tokens. Holding these vDFYN tokens will make users eligible to earn a part of the protocol revenue. 0.04% of each transaction on the Dfyn exchange will be accumulated and used to buy back DFYN tokens, which will be directed as dividends to the vDFYN vaults. Essentially, users will be able to claim more DFYN tokens against their vDFYN tokens than they deposited.
Options
Now that we have explained the vDFYN model, we request the community to decide how the fees should be allocated from amongst the following options:
Option 1: Change the 300K USDC to 300K worth ROUTE and provide liquidity to the DFYN-ROUTE pool instead of the DFYN-USDC pool.
Option 2: 300K USDC should be used to buyback additional DFYN and all DFYN should be distributed as rewards to DFYN stakers in the vDFYN vault, with the current ETA being mid September 2021.
Option 3: No change in status quo.
Option 4: The protocol should let DFYN-USDC liquidity stay in the pool for now and compound it by staking the LP tokens in DFYN-USDC farm. Later when vDFYN launches — distribute the rewards and the original liquidity to DFYN stakers. This option is like the second option with the only difference being that the liquidity will be staked in DFYN-USDC farm.
Option 5: 300K USDC should be used to buyback additional DFYN and all 600K worth of DFYN tokens should be burnt.
Important Considerations
Voting Standards
All DFYN holders will be afforded one vote against each DFYN token they hold on Polygon. Unfortunately, DFYN token holders on Ethereum are not eligible to participate in this vote.
Users who have staked their DFYN tokens in vaults and provided DFYN token liquidity on Dfyn Exchange (whether or not they have staked their LP tokens in any Dfyn Exchange farms) will have 1.5x voting power, i.e. they will be given 1.5 votes against each DFYN token staked. Note that the votes against DFYN LP tokens staked in other yield aggregating platforms such as Polycat Finance, DinoSwap etc. won’t be taken into consideration.
This proposal is using the weighted voting strategy, i.e., each voter will have the option to spread their votes across any number of options.
The snapshot for this proposal has been taken at 6:30 A.M UTC on Friday, September 3 2021 at block number 18691688 on Polygon.
Voting will remain live from 9:00 A.M. UTC on Friday, September 3 2021 to 9:00 P.M. UTC on Wednesday, September 8 2021.
Quorum Standards
The option accruing the highest number of votes at the end of the voting period will be declared as the winning option. If there is a tie for first place, a second round of voting will be held with only the tied options.
This governance event is an important step in the direction of transitioning DFYN into a community-governed project. Stay tuned for updates as we will be launching more governance events in the coming days.
About Dfyn
Dfyn is a multi-chain AMM DEX currently functional on the Polygon network. Dfyn nodes on various chains act as liquidity entry and exit points into the cross-chain liquidity super mesh that is being enabled by Router Protocol.