Proposal
Aerarium would like to purchase Synapse’s veNFT #48, which was given to them by MAIA in March 2022, using the following formula:
veNFT size * $HERMES Price * discount
ex. 200,000 * $0.084 * 50% (discount)
At current prices ($HERMES: $0.084) this would equated to $8,400.
Context
Aerarium is a next-gen Omnichain Liquidity Driver intended to boost yield and enhance cross-chain Defi infrastructure.
Since inception $HERMES strategies have been at the core of our protocol and have been extremely successful at moving us towards our goal of sustainable yield.
We are looking to increase our $HERMES governance power as it is an important building block of our current V1 model and an even more critical part for our upcoming V2 launch.
Aerarium is constantly looking for new ways to maximize our $HERMES and keep increasing our governance power. We have done this using a combination of trading, compounding, utilizing boosted yields and maximizing returns during $METIS marathon incentives.
In addition to the above, we have been actively pursuing current veNFTs as an additional way to obtain a bigger stake in the protocol. Unfortunately, even after one year, there are few opportunities to trade veNFT as the holders are mostly individuals and there isn’t much volume for the commerce of these assets on Metis NFT marketplaces.
Upon such pursuit we have identified a few protocols that have not been utilizing their veNFT in the ecosystem, Synapse being one of them. We are therefore wanting to initiate a conversation for the purchase of such.
Offer
Aerarium is proposing to purchase Synapse’s veNFT using the following formula:
veNFT size * $HERMES Price * 50% discount
At inception, when given from the Maia team, the veNFT held 200,000 $HERMES. Weekly this amount is diluted if the owners down claim its distribution and relock to the maximum time.
As it stands currently, the veNFT holds 185,000 and we are assuming it has three years left on its lock.
For the purpose of this conversation, the $HERMES price is just used as a reference as the underlying token inside the veNFT is $HERMES. Our offer in dollar terms will change based on the price action of $HERMES, but using the same formula.
The discount we are willing to purchase veNFT #48 for is derived from a variety of factors such as the following:
Reasoning for the Discount
- Locked position which will become liquid in roughly three years
- Very low volume for veNFT on secondary market
- No liquid wrapper to exit position
- Bribes APR significantly lower than farming APRs
Benefits for Synapse
- Trade locked assets for liquid assets
- Use liquid assets obtained from the sale for strategies better aligned with current goals
- Remove burden of managing the veNFT, this equates to four transactions per week
Risks
- Opportunity Loss: The price of $HERMES could increase therefore veNFT #48 could fetch a higher price in the future. This is partially offset by obtaining liquid assets right now which would be able to be invested and obtain returns in sync with current Synapse treasury strategy.
- Security concerns during transfer: This would be mitigated by having a trusted third party involved for the transfer. We would recommend using the MAIA team as the escrow.
Timeline
As soon as possible, if the proposal passes governance.
Conclusion
In conclusion, we believe that Synapse’s selling of veNFT #48 will benefit both protocols and provide more opportunities for both our users.
We understand that the current market value of the veNFT is higher than our proposed price, but we hope you will consider our reasoning for the discount requested. We are committed to using the veNFT to support our platform and provide value to the wider ecosystem.
Thank you for your consideration.
Additional Info
Docs: https://docs.aerariumfi.com/
Twitter: https://twitter.com/aerariumfi
Discord: https://discord.gg/W3CMAP8T7f
Query veNFT: https://andromeda-explorer.metis.io/address/0xa4C546c8F3ca15aa537D2ac3f62EE808d915B65b/read-contract#address-tabs
Hermes Chart: https://dexscreener.com/metis/0x191aa0e43d6ddac6797ecb1cb6c63cc55474eb59
