MANTRA DAO 11/28/2020 Video AMA Summary & Recap
- *Please note that this is a curated summary of the 11/29/2020 MANTRA DAO AMA that includes the most relevant questions and answers which are shortened and paraphrased.
- YouTube link to the AMA here.
Addressing Issues Regarding OM V1 — V2 Migration
The AMA started off with JP identifying the main issues users were experiencing when trying to migrate which included high gas fees, lack of clarity on what the additional transactions were for, and the UI issues people were facing. JP then went on to discuss why the migration was set up in the way that it was in the first place by mentioning that the design allowed for users to migrate from V1 to V2 staking pools without losing their staking rewards and needing to unstake for an 8 day period. Essentially when users are in the process of unstaking their OM, the contract creates a synthetic sOM that will continue to accumulate rewards and make them available to be claimed in the OM V2 pool at the V2 staking rate.
Community Question 1 — “Why were there four steps to do this migration? This made it more expensive”
Rod: Taking a step back, a little bit of the background, Pool v1 was a fixed APR pool at 88.8% that was always designed to be on for a limited time, and this ended on Dec 18th. Regarding the migration contract, it’s built the way it is to make it easier by actually removing steps out of the way as you move from one staking contract to another. In addition, the migration contract is built in such a way so that keeps track of users that migrate through it, and thus is able to keep track of rewards earned by those users during the migration process. If a user had migrated manually instead of through the migration contract, that user would have not been able to earn any rewards during the 8 day unstaking period from staking pool v1. By going through this process, the user is able to earn rewards during migration.
Community Question 2 — “Why couldn’t you just lower the staking rewards, did you have to do V1 to v2”
JP: There are a couple of reasons for this:
1. We wanted to add a capped supply to the token which was not implemented in V1 due to an original inflation mechanism that we have since removed.
2. We wanted to have all the token economics and clearly defined escrow smart contracts labeled on Etherscan so that users can see that the team is not selling their tokens and that we are following the token emission schedule that we set out on day one.
3. We upgraded the staking pool and it made sense for us to upgrade the new token alongside, which allowed for auto compounded rewards so people won’t have to restake in the future, saving a lot of gas fees. Rewards would be auto compounded and everyday rewards will be pushed to your staking balance automatically.
Community Question 3 — Could you post an explanation before every step in the UI?
Essentially there are 6 transactions over two stages of the migration process, which are 2 transactions before the 8 day timer kicks off and 4 transactions in the second stage.
The first two transactions will claim the unclaimed rewards and pays them off to the user on pool 2 earned rewards and also gives you rewards that you would have been earning on pool 2 during the migration if you were staking during that time in pool 2.
Next, after the 8 day period, the third transaction will calculate how much OM you earned in the 8 unstaking days and put them in an escrow pool where you only get them if you finalize the migration process. The fourth transaction will withdraw the tokens from Pool V1.
The fifth transaction will approve being able to send tokens to pool 2. The last transaction is a few transactions in one which is essentially migrating OM V1 to OM V2, staking OM V2 in Pool 2, and claiming the rewards in the escrow pool.
Community Question 4 — Why couldn’t you issue new tokens like an ICO?
JP: Due to the token’s decentralized nature, we wouldn’t have been able to do that since we are not able to nullify the tokens or take them back. If we wanted to do an airdrop it would have been an absolute mess due to the fact that there are over 13,000 address holders not including stakers and exchange users. It would have possibly been even more of a logistical nightmare.
Community Question 5 — Will there be a V3 on Riochain and V4 on $DOT
JP: We will not necessarily be having V3 where we issue a new token. We will most likely do this through trusted bridges which is a wrapped version of assets and as more bridges are built you will have compatibility with EVM and substrate smart contracts. Also since $DOT is not a smart contract platform which allows for tokens to be directly issued on it, it will be done through the parachains themselves.
Community Question 6 — When is the deadline to unstake v1 and migrate?
JP: There is no deadline, that being said, there is a one month deadline if you want to receive the airdrop compensation for migrating. This ends on January 15th.
Community Question 7 — Is there any plan to change the migration process to make it more smooth?
JP: We can’t change the process itself since the contract has already been deployed and working as it should, but what we can do is to make it easier for people to understand what they are actually doing. If you want to sell your tokens after staking, that’s your prerogative, but if you want to migrate to V2 and claim the benefits, you will have to do so one way or the other. Essentially you should do whatever makes the most sense for you.
Community Question 8 — I was getting an insane amount of gas fees when I tried to migrate last week. Has that been fixed?
JP: Yes that has been fixed.
Compensation and OM Buyback
What we had originally shared, is that we would airdrop some OM tokens to migrators to compensate for this migration. Due to these migration issues that we are facing including high gas fees, we wanted to compensate users in something that is more usable and less dilutive. The first thing we will be doing is an airdrop of $ETH to the stakers on Pool 1 who are migrating to Pool 2 before Jan 15th. A total of up to $50,000 worth of $ETH will be spread out amongst stakers who migrate in time. The less that migrate, the more the airdrop will be on an individual basis. Also as opposed to airdropping OM to you guys, we will be undergoing another buyback of $50,000 worth of OM. We will make sure to clearly announce it as we did for the NFT buyback. Everything will be visible in the wallet, and we will keep the tokens out of circulation for the time being.
Community Question 9 — Can you talk a bit about the new MANTRA POOL?
So far 85,000 OM has been moved to the pool. The first winners will be announced at the end of the week and they will have a week to claim their rewards and we will launch a new pool. The OM that was in the pool will be removed from circulation. To give some context, the compounding effect this will have over time, if the pool stays around 100,000 OM every week, that’s 5.2 Million tokens taken out of circulation over the course of a year just from one product. I think this number can continue to grow partially as the assets under delegation continue to grow. We are the #1 node on Matic, we are also live on Kardiachain, and many other COSMOS nodes. We will be launching DOT and KSM staking later this week as well.
Community Question 10 — Gas fees are terrible, asking for $50 for MANTRA POOL.
JP: MANTRA POOL is a particular product we want to move to Substrate ASAP, as this product needs to be cheap. Obviously you are spending OM to get in, you don’t want to be spending a lot of $ETH as well. Unfortunately, it’s not a very simple contract to use, and when gas fees are high, it can get expensive. I would recommend getting in at a time when $ETH is cheaper, I’ve been able to get in for around $5.
Addition of New Staking Options
Community Question 11 — When will be able to use the Mantra app to stake other tokens?
JP: DOT and KSM will be first, we will then be adding MATIC, BAND, KAVA, LUNA, ATOM, KAI soon in early Q1.
Community Question 12 — For $DOT you nominate multiple validators. So only need to nominate Mantra DAO’s as one of those?
Rod: The Delegator Rewards program is designed in a way such that you only earn OM rewards for the rounds during which you are nominating to a MANTRA DAO validator. So if in any given month you have selected multiple validators, and the MANTRA DAO only receives nomination from your account for 10 out of the 30 days of the month, then you would only receive OM rewards for the 10 days during which the MANTRA DAO validator actually received your nomination.
Community Question 13 — Will the autostake feature be also available for $RFUEL staking?
JP: Not presently, most likely we will not do anything with the $RFUEL staking until they move to their mainnet.
Community Question 14 — Will the project be more newbie friendly in the future? Adoption will be very easy if new people will be able to engage seamlessly.
Rod: The one area that was missing on this pool migration mechanism is more clear and concise messaging in the UI/UX front, and it’s something we will be spending a lot of time and energy in the future in making better.
Community Question 15 — Many of us missed the NFT not because we didn’t want to participate, but probably because of the cost. Will we expect more NFTs in the future?
JP: The first one definitely priced some people out. We are going to make more NFT in the future that you can earn, where you don’t need to buy, there will also be NFTs that will be lower price.
Community Question 15 — For future OM buybacks, will there be a system in place to prevent people from gaming it?
JP: We will definitely not be explicitly telling people when we are buying back, we can look into potentially setting some rules that we can follow, we definitely don’t want people trading off the news.
Upcoming Fundraising Platform
JP: The closest to fruition is a fundraising platform of sorts with fixed pool swaps as well as reverse liquidity action swaps where upcoming projects can come and raise capital directly on our platform. This will basically be like a kickstarter of sorts, but will have a variety of features, and will become part of the MANTRA Swap that we talked about in the beginning. We plan to do this on Ethereum because that is where the bulk of people raise capital for early stage crypto startups. The benefits for OM holders will essentially be where users are required to hold or be staking a certain amount of OM, or supplying on a lending platform to be eligible for the offering. We also want to make it seamless for users and project issuers to not only raise capital but also automatically launch into staking pools, and they could also be added to the lending platform as well. So there will be a lot of enhanced utility for issuers rather than purely raising capital. So it’s more of a comprehensive ecosystem in that regard.
The other thing that we will be doing is that we will be using the fees for whatever we are charging the issuers for fundraising to buy back OM from the market.
MCDP + ZENTEREST
JP: The first product of lending is called ZENTEREST which is ZEN + Interest. This is the overcollateralized lending protocol that is similar to Compound or Cream.finance. What we will be doing in this is essentially having a very similar user experience on COMP or CREAM, but we will have various different tokens. We will focus more on lower cap, early stage projects, as well as projects which have staking pools on our platform. Users can basically come and supply tokens, earn interest, borrow against their assets and take out loans in an overcollateralized fashion.
Moving forward we will be looking to building multi-collateralized debt position kind of like what Maker DAO does, but this will be built on Substrate for us and it will be allowed to have a variety of assets that will be allowed to be used as collateral which are not just on one single blockchain. This would mean that users who are staking any number of different assets on our validator nodes will be able to use those assets as collateral in the MCDP to take out our stablecoin loan which is called USDOM.
This is something we will be developing into an under collateralized lending protocol. In the beginning in Q1, it will definitely be over-collateralized.
The most complex product we are making is the KARMA protocol which is a credit rating protocol of sorts where users, based off their transaction history, KARMA score, and support of the Sherpa ecosystem, can take out loans in their name without having to over collateralize their assets.
JP: We are currently running various PoS staking validator nodes that are running, and with liquid staking, you will be able to use staked assets as collateral in the system. So you won’t have to give up on your staking rewards and still use those derivatives assets as collateral to do a number of different things like lend or borrow against your assets.
Rod: Just to add, everything that John just described is correct, and paints an image closer to the complete vision, but these products are very complex and it will come in stages. It won’t come like here’s liquid staking, full flushed-out with every blockchain integrated. Obviously there is a lot of infrastructure that needs to be developed. The groundwork is there such that what we are envisioning is 100% possible, but it won’t necessarily all be possible in Q1 2021. A lot of the more advanced cross chain features you can expect to take a little bit longer. That doesn’t mean that the product however can’t be rolled out earlier in a simpler iteration.
Community Question 16 — Will you get a slot on DOT?
JP: I think he’s referring to if we are going to be representing MANTRA DAO in the first parachain offerings ourselves. We will not in the first one that’s for sure, we are not necessarily a layer one at the moment. We are going to be looking in the future at exploring this opportunity if it makes sense. At the moment, we have other plans. One of the other projects we are working with Riochain is definitely looking into. We are not sure how many slots will be open for DOT in the next year. Kusama has to have their auctions first. People who think this is going to happen overnight, it’s not. It’s going to take time.
Community Question 17 — If I nominate your DOT validator and register address through the website, how many OM rewards per unit time Say I have 1000 DOT staked and only nominate your validator? How would you calculate it?
Rod: Essentially, we will have defined amounts of OM that will go to nominator programs per blockchain. As an example, let’s say DOT nominators get allocated 1 million OM per month [this is not a final amount, just an example for this explanation]. So anyone who nominates to the MANTRA DAO validators by registering on the MANTRA DAO app is essentially signing up their address to participate in this distribution, and it’s essentially going to be proportional to your stake on the nomination pool. So in this example, if you’re the only one nominating, you’re going to get all 1 million OM.
JP: One of the pieces of feedback we are getting consistently is, “why are you diluting OM Sherpas by essentially paying out to nominators in various communities”? So we’ve decided that delegators/nominators are going to have two options for claiming rewards, and both are relatively significantly vested. You can take either a short claim or long claim. The short claim will be a month long claiming process for the OM. However if you choose to short claim, you only get 20% of accrued rewards for that time, 80% are forfeited. If you choose the long claim which is a 6 month vesting period, you get 100% of your rewards. For those who choose to short claim, from the 80% that you are forfeiting, a portion of that goes to the long claimers, and a portion of that goes back to the staking rewards bucket. Which essentially funds OM stakers and other staking incentives in the MANTRA DAO native staking/lending platform. We will explain this in more detail moving forward as well.
Community Question 18 — Any new partnerships to announce?
JP: We are going to be adding some new ETH based staking pools, which will then be integrated into our lending platform as well. We have some new lending partnerships we are working on, as well as some additional PoS validator node partnerships. Looking into Q1, there’s going to be a lot of excitement and new partnerships coming as well.
Community Question 19 — So the plan is still to be building on RioChain right?
JP: So the plan is definitely still to build some products on RioChain. We will definitely live on multiple chains throughout the course of MANTRA DAO’s history and future. We definitely need to see what will happen in the coming months with parachain auctions. We are still fully convinced that they will deliver. The most important thing to us is our fiduciary duty to our token holders. So we are always looking at any and all options that will benefit you guys the most.
Community Question 20 — Now that you mention governance, were there any lessons learned from the soft launch? Any thoughts on it?
JP: One, I’m really glad it wasn’t hard governance for a lot of these things, just because a lot of these things would have been impossible to actually implement. I would also say it’s also very important to have a very clearly defined process and communication platform for allowing these governance proposals to take place, and have these discussions in forums that are required to understand the ins and outs of the proposals. We, as MANTRA DAO, are a validator for many PoS networks as you are aware, and we have taken a lot of lessons from these governance platforms. Some are good, some are a mess. So we are looking to improve our platform, add a discussion forum for everyone to make it a bit more easy, and have it a bit more defined as to what is required to discuss and implement.
About MANTRA DAO
MANTRA DAO is a community-governed DeFi platform focusing on Staking, Lending, and Governance. MANTRA DAO leverages the crowd’s wisdom to create a community-governed, transparent, and decentralized ecosystem for web 3.0. Built on Parity Substrate for the Polkadot ecosystem, MANTRA DAO gives financial control back to the people to store and grow wealth together.