APGP-13 : PAL x APW token swap

Summary:

Expand the partnership between Paladin and APWine with a token swap used to increase the synergies between both protocols.

Context:

APWine and Paladin partnership goes back to the first winelisting, as The palStkAAVE has been live since the launch of the protocol.

A few months later, a proposal was submitted to add an extra liquidity mining in PAL.

A token swap has been mentioned several times, especially on Paladin Forum on April 14th and again on May 1st:

Rationale:

Paladin is a decentralized, non-custodial governance ecosystem, which already includes 3 projects with different services:

  • Paladin Lending which allows users to lend/borrow some voting power
  • Warden is a boost marketplace for veTokens (CRV only for now). It’s a tool to calculate the additional boost needed and buy it to reach x2.5.
  • Warden Quest is a gauge weight vote marketplace, rethinking the bribe model to increase sustainability.

The PAL is the governance token which controls the full ecosystem. Pal can have 3 different forms:

  • PAL : Speculative level, no yield & no voting power.
  • hPAL : PAL staked with a 10 days cooldown, yield + voting power 1:1 (1hPal = 1 vote)
  • Locked hPAL : PAL locked from 1 week to 2 years, boosted yield + boosted voting power + access to the chest if locked long enough.

50% of the fees collected through these dapps will go to Paladin DAO treasury to focus on building a self sustainable protocol. The other 50% will go to what’s currently called The Chest.

The full tokenomics is not over yet, but the initial proposition was to use these fees back in the Paladin ecosystem to allow locked hPal holders to use the different products with a discount or even for free depending on their stake. An alternative proposal was to only use half of the chest fees for this, and the other half to accumulate voting power that could be used by hPal lockers while the assets remain locked in the DAO to increase its value.

There is also a possibility to activate a profit sharing for hPal lockers in the future.

The goal of this proposal is to swap 160000 APW for the equivalent in PAL for both projects to lock and acquire voting power. The swap will happen over a month after the end of the vote, with a 1 week TWAP price for the 4 tranches, which aims to attenuate the market volatility in the past weeks. This proposal implies long term perspectives & $PAL liquidity mining removal.

The prices will be calculated from early July to early August.

Since Paladin requires a precise amount of APW, the swap happen as follow :

Week 1 : 40000 APW = x PAL ((40K APW *TWAP price APW Week 1) / TWAP price PAL week 1) = x PAL

Week 2 : 40000 APW = x PAL

Week 4 : 40000 APW = x PAL

Benefits for Apwine DAO:

  • Create a long term position on PAL
  • Stake & Lock PAL to participate on the governance
  • Once defined, enjoy chest rights
  • Once possible, APWine will create a proposal to integrate Quest
  • New Paladin IBTs that can be integrated on the protocol (palTokens such as palhPal)
  • Increase the visibility of both projects with cross marketing

Benefits for Paladin DAO:

  • Create a long term position on APW
  • Ability to vote on APW gauges with veAPW
  • Increase the yield for palStkAave pools users
  • Increase the governance participation and DAO voting power by accumulating APW rewards (if accepted on the upcoming
  • palTokens can be integrated as IBTs on APWine
  • Increase the visibility of both projects with cross marketing

Means:

  • 160000 APW for the token swap

Technical implementation:

*Paladin Community Gnosis Safe should be able to lock the veAPW

  • Calculate the TWAP price and make the swaps each week

Voting options:

  • Yes
  • No
  • Abstain

0 voters

Co written by @Dydymoon

5 Likes

@Beguin Is paladin thinking of possibly including apw in their Warden Quest system? If its a long ways away I understand, but I’m curious to know how long it would be till we can see it?

1 Like

Currently Quest is focused on veCRV, but will be diversified to other veTokens in the future, and I’ll personally work on the integration proposal for it when it’s possible :fire:

1 Like