• General
  • RFC: Deploying POL to Satin Exchange

Optimal Liquidity & Growing Polygon

Currently Klima’s liquidity is dormant and not maximizing its full potential. Satin Exchange has created a truly unique flywheel for liquidity that allows for sustainable emissions by utilizing their flagship stable indexcoin, $CASH. This allows for greater capital efficiency and additional revenue streams compared to other Solidly-style AMMs. It’s so promising that most of the major polygon protocols are participating, ie: Beefy, Stader, LiFi, QiDAO, Lido. Klima should follow suit.

Maximizing Klima’s Liquidity

As a partnered pool, Klima would be entitled to
25% of the transaction fees generated from a Klima-$CASH pair.
These fees will go to the Klima treasury.
Auto-bribes for $CASH LPs (60% of $CASH rebase)
This will help generate bribes for the pool through the CASH rebase, resulting in votes for emissions. With attractive APRs, more users will LP, deepening liquidity and boosting revenue for POL as well as demand for KLIMA.
Boosted yields thanks to the $CASH yield in the pool (30% of $CASH rebase)
Claimable stable rewards in addition to the traditional emissions incentives. This is an incentive not seen on other DEXs.
Proposal to deploy POL
In order to maximize the capital efficiency of the KlimaDAO treasury and catalyze future growth in the Polygon ecosystem, the DAO should convert the treasury’s KLIMA-USDC liquidity that is currently deployed on SushiSwap, to a KLIMA-$CASH LP on the Satin Exchange.

Proposed Capital Allocation
From KLIMA-USDC currently deployed on SushiSwap ($3.8M): convert 100% to a Klima-$CASH pair and close the position on Sushi.

Conservative projections on $4m POL deployment:
$8.3k in $CASH auto bribes going to Klima pool per month
$4k in claimable $CASH rebase rewards for protocol
The $8.3k in bribes is estimated to attract $400k in emissions per year

KLIMA-$CASH LP on Satin Exchange
Estimated APR 13-15%:
10% APR from emissions
2% APR from the $CASH rebase
1-3% APR from trading fees

By moving KLIMA-USDC liquidity to Satin Exchange, Klima's POL could realistically attain an APR of your pool at over 15% which would be 6x your current yield with SushiSwap.

Check out their documentation below for more details on the $CASH token, and Satin Exchange’s economic flywheel.

https://medium.com/@stabl.labs
Stabl.fi
Satin.exchange

Driving value into the KlimaDAO/Polygon ecosystem

This is an incredible opportunity to join the top protocols in bringing a new wave of DeFi hype to Polygon. Attracting more users, partnerships, and most importantly, safely boosting returns on Klima’s LP pairs.

By partnering with Polygon legends, it creates camaraderie amongst strong allies, and the ability to generate smart money returns on an inactive treasury.
Satin is already helping Klima push forward the on-chain carbon narrative by integrating our optional offsetting function for all DEX transactions. By aligning ourselves with the rest of the Polygon community, we can develop long term friendships to help one another reach our goals.

    25 days later

    $CASH is a reward for staking, akin to a classical incentivized LP-structure we've been seeing through the last cycle?

    And the 10% APR from emissions -> what fees are your pools running to achieve this? Are you just charging a higher fee? Are you actually generating more trades?

    What happens when $CASH runs out? Tokenomics schedule -> will this be another DEX where common incentive is to dump $CASH over time?

    DeFi hype is good, but why would we move liquidity from audited contracts with low fees and established flows?

    Let's answer some of these tougher questions and maybe a conversation could be had, as DEX's have no MOAT, reward tokens are going to 0 unless you're differentiated, and this is something that isn't about APR as APR changes daily and is really about the liquidity, and where we trust to house it.

    Hope you don't take this as negative! Legitimately would like to hear cogent answers to these inquiries.

    Best,
    Optima

    IRIESAM Thank you for putting forth this RFC to our community. Could you elaborate on the audits and perhaps battle testing track record that Satin Exchange has, as closing our position on Sushiswap is a huge risk to KlimaDAO since KLIMA-USDC is an important liquidity pool to facilitate users in the Digital Carbon Market. Switching to KLIMA-CASH would translate to greater friction and dependence for our users in terms of CASH-Stables availability.

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