Dear Lucidao community,
After carefully evaluating recent evolutions of the DEFI world, we are proposing the transition of Lucidao liquidity pool and consequently LCD token trading from SushiSwap towards SpookySwap DEX.
SpookySwap has earned endorsement and support from Fantom Foundation and it’s currently the leading DEX on Fantom Opera having the highest TVL and user base for native Fantom protocols.
The process to execute the transition will be as follows:
- In order to maintain a seamless trading experience only 50% of the DAO controlled FTM/LCD LP tokens will be removed from SushiSwap and transferred to SpookySwap.
- The remaining 50% will be transferred to conclude the transition between the DEXs.
A liquidity farm is a place to stake your LP pair (LCD/FTM) to earn rewards. This farm will provide an incentive for LCD holders who provide liquidity to SpookySwap DEX. These incentives could include $BOO and LCD tokens.
The goal of launching a FTM/LCD farm on SpookySwap is to:
- Provide more liquidity and therefore allow the distribution of more LCD utility tokens, through farming rewards as an incentive for all LCD token holders.
- As the liquidity grows, outsiders, institutional contributors, and Oracles willing to gain voting power, will be able to purchase higher amounts of LCD tokens from the market without suffering from high slippage.
- A growing liquidity will contribute to the DeFi ecosystem’s confidence in Lucidao and will help Lucidao scale faster.
- Last but not least, protocols built on Fantom can apply to Fantom Incentive Program based on their time-weighted average TVL. Farms are surely the fastest way to reach Fantom Foundation requirements.
In order to achieve this goal, we are proposing to allocate 3% of the total supply (26.4M LCD), coming from Governance’s allocation (66% of total supply sitting in DAO vault) - this will allow us to provide the rewards for Liquidity Providers participating in LCD/FTM pool. We believe 3% will be sufficient to provide healthy rewards to our LCD holders providing liquidity.
The above allocation would be distributed as a reward over a year (365days).
Take into consideration that the decision to accept the LCD/FTM farm will be subject to a vote from SpookySwap community.
Next steps would include further discussions with the SpookySwap team regarding our (FTM/LCD) transition and the farming strategy in order to make the transition smooth and effective.
LCD/FTM LPs will be transferred to: 0x6270B1D09c8e9ED2bB382FFe4c5aB6494BcE75e0
LCD rewards for farming (26.4M) to: 0x6270B1D09c8e9ED2bB382FFe4c5aB6494BcE75e0
Please connect your LCD wallet and vote @