Authors
@Etienne (CEO at Defi Pulse), with the help of @eqparenthesis and Lewi.
Summary
This proposal aims to onboard the Defi Pulse team as a strategic partner to drive the growth of Empty Set across its hundreds of partners in the DeFi space. By leveraging the Defi Pulse network, we believe that the pace of adoption for ESD can increase at a much faster rate.
Value Proposition
The Defi Pulse team is deeply rooted in the DeFi ecosystem. It has one of the largest networks of curated partners in the space and a proven track record of developing innovative metrics and products. Among others, DeFi Pulse invented the ‘Total Value Locked (TVL) Metric’ and created the Defi Pulse Index, which, with more than $200M assets under management, is the leading DeFi index.
By partnering with Defi Pulse, the Empty Set DAO will leverage the network of one of the most recognized and trusted actors in the space. This partnership will enhance the adoption of our protocol from scratch, increasing the issuance of ESD, our north star metric.
Funding
Initial allocation
As a strategic partner, the Defi Pulse team will be granted 16 500 000 ESDS as an initial allocation to start the program and become a stakeholder in the Empty Set DAO. These tokens will vest linearly for 2 years, in a revocable contract.
Defi Pulse treasury
The Empty Set DAO will bootstrap a treasury managed by the Defi Pulse business development team, which will be used to incentivize the adoption of ESD by a variety of protocols.The initial grant will be 5 000 000 ESDS. To reduce friction and increase efficiency, the Defi Pulse team will be able to provide grants to projects that are being onboarded, in an autonomous manner. Each time a protocol is successfully on-boarded by the business development team, Defi Pulse will earn $50K worth of ESDS as a success fee, directly paid from its treasury. Once capital is allocated, the Defi Pulse team will formalize a TIP to replenish its treasury through a vote.
Protocol growth program
To incentivize the adoption of ESD in the most relevant protocols, the Defi Pulse team will earn rewards for reaching TVL based milestones in each protocol that is on-boarded. At the end of each month, if a protocol has reached a TVL milestone, the DAO will reward the Defi Pulse team accordingly, with a 1% cut of that TVL.This reward will be capped to avoid large dilutions for ESDS holders, and will be vested linearly in a 2 years non revocable contract, in the same time schedule as the initial allocation (non restarting).
Below we can see the proposal for TVL milestones and rewards for protocols on-boarded by the Defi Pulse team.
ESD locked milestones | Defi Pulse rewards |
---|---|
10M ESD | $100K worth of ESDS |
100M ESD | $1M worth of ESDS |
1B ESD | $10M worth of ESDS |
Each reward is capped to avoid large dilutions according to the following formula, where
Protocol ESDS valuation = (ESD TVL in protocol / Total ESD TVL) * FDV
Max Milestone reward per protocol = 1% * Protocol ESDS valuation
Performance tracking
To track the performance of the Defi Pulse business development team, the Empty Set DAO, or any dedicated team, will be in charge of creating a dashboard with a list of all protocols that are on-boarded by Defi Pulse and their respective ESD TVL. The Defi Pulse team will also track these metrics to ensure a high level of accuracy.
Every monetary reward and milestone described in this proposal will use a 7 days TWAP methodology to mitigate risks tied to markets volatility.