Introduction:
BabelFish was born specifically to enhance stablecoin flow and accelerate hyperBitcoinization, yet the distributed team fell in the trap of analysis paralysis and delayed shipping on its original goals. Let’s stop drawing and re-drawing the whiteboard and move on to deliver the original promises.To jumpstart the process, the first vote proposed here is to involve the immediate stakeholders in this important decision: XUSD holders and FISH stakers. This first vote is to commence the liquidity mining rewards by rewarding and empowering current stakeholders to vote on the DAO. We propose these FISH rewards, and all future liquidity mining rewards, to vest over six months (at least) and be automatically staked.
Reasoning:
It behooves BabelFish to stick to this original plan and distribute the collateral currently resting unutilized on the bridge. The amount of collateral lent out can be gradually increased over-time through BIPs. This will enable BabelFish to hedge risk across protocols, earn yield to buy rBTC, and increase xUSD in circulation with liquidity mining incentives. Right now, we are keeping our collateral way too safe inside the bridge, and capital and users will flow to where it is treated best.Let’s stop drawing and re-drawing the whiteboard and move on to deliver the original promises, and keeping it simple stupid.
The original promises:
- Incentivise stablecoin flow directionally towards RSK and Bitcoin L2
- Lend collateral on parent chains’ blue chip lending protocols
- Use yield to accrue rBTC for protocol insurance and FISH staker rewards
- Recalibrate lending and collateral parameters through bi-weekly votes
- Continue researching stablecoin landscape and hedging risk
(see attached image)
Detailed info:
**Jumpstart FISH Liquidity Mining Incentives (to vest over 6 months and be auto-staked):** XUSD holders: Will receive 80% of the available liquidity mining rewards, distributed proportionately and calculated each block. FISH Stakers: Will receive 20% of the available liquidity mining rewards, distributed proportionately and calculated each block.Short-Term XUSD Rewards for FISH Stakers:
Contingent on collateral being lent out, FISH stakers will receive ~20% of yield earned on collateral, in the form of XUSD, proportionate to their “voting power” (as in origins).The remainder (~80%) will be converted to rBTC Rewards and go to the insurance pool, which is also managed by FISH stakers.
Future votes will be to vote on the parameters of collateral lent out, liquidity mining rewards, and other priorities.