Summary:
Become one of Solidex's founding partners by providing our veSOLID NFT and receive in exchange SOLIDsex tokens and a share of future revenues to maximise i) optionality, ii) influence and iii) value accretion to Synapse Protocol and $SYN holders.
Proposal:
As one of the largest projects on Fantom, Synapse received 727,329 veSOLID NFTs, giving Synapse a share of Solidly.
In order to maximise value accretion to Synapse (and hence $SYN holders), a number of different approaches are possible:
i) Sell the veNFT, for example on PaintSwap
ii) Fractionalise it ourselves and distribute the newly created tokens $SYN holders
iii) Manage the veNFT position alone
iv) Partner up with like-minded protocols that received veSOLID NFTs
v) Partner up in a "Convex-like" protocol built on top of Solidly, such as Solidex or Radial
I believe that partnering up with Solidex would represent the most attractive option for Synapse. By becoming one of the first 15 projects to deposit our veSOLID NFT with Solidex during the bootstrapping phase, Synapse will:
- Receive on day 1 liquid tokens (SOLIDsex)
- Earn a proportional share of SEX tokens going forward
This means that we would on day 1, fractionalise our veSOLID NFTs and receive SOLIDsex tokens in exchange. Those could for example be used to increase Synapse's voting power within Solidex (increasing future revenues for the treasury / $SYN holders) or be distributed to $SYN holders. Any decision on distribution will be subject to future decisions by the Synapse DAO.
Going forward, Synapse will also receive a share equivalent to our allocation from the NFT deposit. This will create a new source of revenues for the treasury.
Importantly, given the way Solidly is constructed, protocols will maximise their revenues by directing their votes to winning gauges. Solidex has already been joined by first-class protocols that received large allocations of veSOLID NFTs. I expect Solidex to have a significant influence on Solidly. In that context, being part of Solidex would maximise Synapse's ability to participate ininfluence Solidly and its share of revenues.
Additionally, since inception, Synapse has thrived to establish strong and collaborative DAO-to-DAO relationship as demonstrated by partnerships with other DAOs (including Olympus, Fei and Ondo). As part of Solidex, we would join other leading DeFi protocols such as Curve, REN, Geist, Yearn, Multichain and veDAO. Additionally, we understand that other protocols are also considering joining the project. This could foster further DAO-to-DAO partnerships in the future.
In terms of next steps, the veNFT distribution will occur on 10-Oct-2022 and emissions start on 17-Feb-2022.
Given the tight timeline and unless the community has a strong view against it, I would suggest a short snapshot vote on this proposal to i) join Solidex and ii) give the core team a mandate to manage the position and the resulting SOLIDsex tokens, unless and until the Synapse DAO decides for a distribution of those tokens and/or a new approach.
Some additional reading:
