(DEPRECATED) Proposal for whitelist / 420k coinvestment / LM rewards for MPH

Author: McFly

TL;DR:

  • Proposal to whitelist MPH (88mph) with an initial co-investment of 420k BNT.
  • 88mph is an Ethereum protocol allowing you to lend your crypto assets at a fixed interest rate. By doing so, you earn upfront $MPH and protocol’s revenues paid in $DAI.
  • You can think of 88mph as a deposit account with which you earn a fixed income and the bank rewards you with loyality tokens giving you shareholders rights like cash dividends and goverance power. At the end of the day, you truely own the bank.
  • Fair-launched with a product on mainnet since day 1, no presale, no exotic farming, no BS.
  • Non-anon team building dApps since 2017. Learn more about us in this interview.
  • Strong community (see Twitter, Discord, TG, Forum. Cf below).
  • Audited by PeckShield, QuantStamp, Certik, and soon by Trail of Bits. We only ship audited code. No sneaky update post-audit.
  • Governance progressively handed over to DAO in early next week 2021 (improvements and protocol’s parameters).
  • Involvement with many DeFi protocols and communities under the hood.
  • Our 2021 focus revolves around smart contracts and financial risks management while making sure the TVL can be monetized with a steady growth coming from composaibility with other protocols. Our roadmap will include some products development like structured products on top of our existing zero-coupon bonds and the current improvement discussed here for our v3.

88mph in 6

There are 6 different ways to get yields on 88mph:

  1. With the fixed-interest rate bonds (FIRB), allowing someone to get a fixed-interest rate on their assets by depositing them on 88mph to mint a FIRB with a maturity between 7 days and 365 days (user selects the desired maturity). We support 12 differents assets for the FIRB (stables, wrapped ETH, BTC, LINK, UNI).
  2. By using the FIRB, users get MPH rewards vested continuously to them over a 14, 30, or 270d according to the FIRB selected.
  3. By buying the floating-rate bonds (the system’s debt created by the FIRB users) and receiving the interests generated by the underlying FIRBs. Effectively leverage longing the floating-interest rates of Compound, Aave, etc.
  4. MPH staking pool to get DAI rewards (100% of the protocol’s revenues are distributed to our stakers, no inflationary rewards, true cash dividends).
  5. Liquidity mining rewards for the MPH:ETH Uniswap pair and MPH:LINK Linkswap pair, paid in MPH (not inflationary too (aka no-minting), coming straight from the gov treasury, funded via a native MPH rewards pay back model).
  6. Liquidity mining rewards and trading fees for the zero-coupon bonds pair on SushiSwap paid in MPH (not inflationary too (aka no-minting), coming straight from the gov treasury).

MPH token infos (Mar 20, 2021)

Contract: 0x8888801af4d980682e47f1a9036e589479e835c5
Current Total Supply: 331,268.2906 MPH
Circulating Supply: 185,595.7654 MPH
Current Holders: 5,851
Total Value Locked: $25.7M
Market cap: $56,959,832.8956
Market Cap / TVL Ratio: 2.17
Uniswap Liquidity: $6.9M
More stats: https://88mph.app/stats
Coingecko: 88mph price, MPH price index, chart, and info | CoinGecko
Dev funds / goverance treasury tokens distribution: 3.5236% / 3.3537% of total supply.
Farming rewards are financed by the gov treasury. No new minting.

Since the launch 4 months ago, the MPH:ETH pair’s daily volume on Uniswap ranged from $37m to $1m, with an average around $1.5/2m in the last weeks.

It’s mainly traded on DEX like Uniswap, SushiSwap and LinkSwap (farming MPH, SUSHI, YFL), with one main CEX venue: MXC. The current DEX aggregated liquidity for the MPH:ETH pair is $8.5m.

Why should you care?

  • 88mph’s community suggested to kickstart this process. As a founder, I never realized that Bancor was the most capital efficient way of providing a good trading venue for our users. The thing that surprise me is that if we move 100% of our DEX liquidity on Bancor, we’ll be among the top 20 pools.

  • As we grew by 150% in terms of liquidity since January 2021, over time, we expect to see continued growth in liquidity to the platform, which ultimately becomes a benefit for Bancor itself.

  • When possible, a joint-mining is definitely something that the core team and the community will support via the governance treasury. The upcoming rewards program described here on Bancor is definitely more sustainable and attractive for sponsors and recipients than what we currently do elsewhere. We’re looking forward.

  • The current best capital efficient way to put $MPH at work is by staking it and earn the protocol’s revenues distributed in $DAI on a weekly basis. Incentivizing the $MPH stakers with LM rewards to migrate a percentage of their MPH to Bancor will be a really efficient way to gain some liquidity traction, open new arbitrage opportunities and become the de-facto trading venue for MPH holders.

  • Our social community grew organically from 300 members to 14.5k since the launch. We’ll leverage our network to drive as much attention as possible on the new pool and invite our LPs to re-stake their BNT rewards to the protocol.

  • 88mph recently launched its zero-coupon bonds (ZCB) on SushiSwap with a liquidity mining incentives. If Bancor’s improved onboarding mechanism is released in the following months, the launch of new ZCB represents another medium of collaboration between our respective DeFi communities in the short-terms.

  • Offering $MPH tokenholders with a single sided IL free alternative for capital deployment will probably rally the 88mph’s community and create a long-term liquidity position with Bancor. Obviously, the end goal is to become part of its ecosystem in a meaningful way by creating the right synergies.

So, we are looking forward to establish strong links amd friendship between our respective communities (apparently, our community already signalled interest in providing liquidity on Bancor).

Disclaimer: I’m the cofounder of 88mph and I own some $MPH.

Learn more

Website: https://88mph.app/
Docs: 88mph Documentation
Twitter: https://twitter.com/88mphapp
Telegram: Telegram: Contact @join_88mphapp
Discord: https://discord.gg/jNBGTjTZ7y
WeChat: Imgur: The magic of the Internet
Youtube: 88mph - YouTube
GitHub: 88mph · GitHub
Forum: https://forum.88mph.app/
Radio: 88.0 FM by 88mph

8 Likes

MPH staker here. I support this and would migrate tokens to Bancor if passed

4 Likes

Great proposal, obvious synergies here :+1:
I’m an MPH staker and LP, and a fanboy of Bancor’s formula since the token sale :wink:

2 Likes

Yes let’s do this, let’s crank this baby up to 88mph!

I’d move my MPH to the BNT pool as well

2 Likes

My bag is made of two tokens only : BNT and MPH.
I’m strongly in favor of this proposal. I would migrate 100% of my MPH to liquidity pool on Bancor if it passes.

MPH is a solid project with, i’m certain of it, a huge growth to come.

1 Like

88MPH are led by a reputable team and backed by a passionate community who are building a missing and vital piece of Defi (FIRBs). This proposal would be great for both 88MPH and Bancor.

2 Likes

This is a low cap asset that would be better suited for origin pools as detailed in the march report. I don’t think the LM rewards from our end are warranted as the IL protection from Bancor should be a good enough driver for LPs to switch over. I am of the opinion (and I think many others BNT holders as well) that LM rewards should be reserved for projects with a large market cap or high TVL to incentivize those communities over to Bancor.

As far as I can tell, the uniswap eth pool for mph has had an average of 6.11M in liquidity and 1.6M in volume the past 30 days:

volume to liquidity ratio is roughly 26% which means that most of the liquidity is unused. I don’t think there is argument for us to provide 420K in BNT liquidity (roughly 3.3M with BNT at price of $8.00) since a lot of it will just sit idle if the pool is filled completely (pool size would roughly be 6.6M in size).

Assuming that the pool fee on our end is .3% (to match uniswap) then we are looking at roughly $4800 in fees daily (with a volume of 1.6M on average). LM rewards last for 12 weeks and for low cap pools I believe we emit 10K-20K BNT weekly. Assuming the we take the median (15K in rewards weekly) from our end then that’s roughly 180K in BNT inflation for the 12 week period which equates to 1.4M (at a price of $8 BNT). In fees we roughly make $4800 * 7 days * 12 weeks or about ~403K for this period and half of that will go to the BNT side (~200K). Some of the fees from our end will be used to cover any IL that might be experience by LPs on the TKN side which would further dilute the 200K that the protocol would make.

Given the low returns plus the extra inflation that we would incur for any LM rewards, I don’t see how this benefits the Bancor community.

5 Likes

Mph holder and LP here. BNT LP also.

I’d definitely move my mph pooled tokens over from linkswap, which also frees up link that I will most likely deposit on bancor also. I

I think what Glen is missing is that this will be the same for a lot of MPH STAKERS. Also for alot of them it will give them a first time exposure to bancor and the wonders of IL.

Most MPH owners are deep in defi and have other assets to contribute to bancor!

3 Likes

Taking into account what glenn said. 420k is seems too much for this

2 Likes

I am for this - Bancor desperately needs to get some more of these types of tokens on its platform.

I want to take a minute to address a comment that I see surfacing over and over again; the market cap of a token is a total non-issue for whitelisting. There is really only 1 thing that prohibits a whitelist, and that is security issues.

Here is my process:

  1. I check out the team and project, its community on socials etc. If it is a legitimate project, people will likely be using it and discussing it. If the discord is empty, if it is virtually unheard of on Twitter, if its Telegram chats are silent - it is probably fake, and should probably not be whitelisted. However - these tokens are perfect for origin pools.
    MPH passes this check with flying colors.
  2. I go to Etherscan and check the current holders. If there is a contract or a private wallet with a stupid amount of tokens, that is a red flag - but not a deal breaker. Many projects have vesting contracts and community treasuries that hold a rather large amount of the token supply, which is fine. For example, there is an MPH contract with roughly a third of all tokens. This looks like some sort of rewards contract, but to be sure - I reach out to the team directly and ask about it (and I will be doing this shortly for MPH). I ask about multisig, token minting ability etc., things that can cause a deliberate, or accidental rug-pull. If the team is unwilling to discuss it, or gives vague and/or evasive answers, that’s an immediate deal-breaker.

Update: This contract is the staking contract. So nothing suspicious is apparent from the token supply side.

  1. Also on Etherscan, I look for the distribution of tokens. If there are thousands of holders, with the biggest whales owning no more than 5% of the supply, that’s pretty healthy. If there is a private whale, anonymous or not, with an unually large allotment of tokens comapred to the norm, that’s a problem. MPH also passes this check with flying colors; the biggest whale looks to have about 2.5% of the supply ($1.3M).
  2. Audits! As good as a project may appear, if its code is unaudited, whitelisting is a big issue. I’m not religious on code audits, but at least one reputable audit report is probably a bare minimum. MPH has been audited by PeckShield, one of the industry leaders. So far so good.

I will update this post after I reach out to the team about the token-heavy project, but overall there is really nothing that stands out here as being a suspicious token or project - which is enough to whitelist. The origin pools are better suited to the risky stuff, the completely unknown, brand new, anonymous team DeFi scam stuff. Remember - origin pools collateralize their own pools; they are not insured, and so represent no risk to the system (when the feature is ready, that is). This culture of seeing small-cap projects as being unworthy of whitelist status is going to hold us back in the long term. We should love the small cap tokens - they bring in a disproportionate amount of volume, and generally have tiny pools. The risk to reward ratio is diminishingly small.

Compare this situation to the stablecoins, which account for 60% of all losses on the platform - one of which is shady af (you know which one!). We should be thrilled to get microcap whitelist proposals from solid projects - and I want to see many, many more over the coming month. This is how we win - whitelisting the stuff that you can already buy on binance or coinbase is not serving the DeFi community needs, and is not respecting what Bancor (or any AMM) was built for.

In summary - MPH has already passed 3/4 of the security checks required (to my mind) to be not just worthy of a whitelist proposal, but for the Bancor community to be excited for it. It is a well-constructed proposal, and I look forward to meeting some more MPH holders in our groups. Good luck with the proposal! Snapshot is just around the corner :nerd_face:

5 Likes

On a related note - whitelist proposals should be security- and market-centric. Certainly, there is room to discuss why people should be interested in the token, and this helps to bolster confidence - but it is a secondary priority. First and foremost, a whitelist proposal is an insurance application; it is not an investor pitch deck. We absolutely appreciate the effort put into creating a coherent presentation for the merits of the project, but don’t forget the singular purpose a whitelist proposal serves:

You are trying to convince the BancorDAO that the token is legitimate, unlikely to be hacked, and has a community that is interested in using the pool if we create one with single-sided staking enabled.

3 Likes

We have created a channel on Discord, and have invited the 88MPH team and community to join us there. To any onlookers, please feel free to join us there for a more informal chat.

4 Likes

I am not in opposition for whitelisting this token if we are only considering the security aspects of this project. From that perspective, I think that this is relatively low risk (see @mbr comment from above) and it should be whitelisted for inclusion. The token has been around for roughly ~6 months and team for longer which is a long time in DeFi.

With that said, this proposal is asking for whitelisting and LM rewards. While I am not opposed to whitelisting (perhaps with a lower coinvestment to start, 250K), I am in opposition to LM rewards (for reasons that I stated in my original comment). If this proposal goes up for voting with those two items then I will be voting against/abstaining.

2 Likes

I agree that LM rewards should absolutely be submitted as a separate proposal. I also think a 250k coinvestment limit or lower is probably more reasonable to start; the coinvestment on this one is especially pertinent to keep modest, as 88MPH is a token that can be minted.

I have been talking with an 88MPH team member, and the author of this article. As it is a relatively new project with DAO operations to begin in a few months, I think we can start the coinvestment low at first while the project gets established. As we have seen for a few other whitelist proposals recently, 200-250k seems to be the sweet spot right now. With BNT price appreciation, this still allows for a fairly decent pool depth.

6 Likes

I have am biased since i have a bag, but overall the things MPH are doing to tackle the growing crypto bond/fixed rate apy market are incredible. has my support and my vote, except i would like the co-investment lowered to 250k as marc said although i do appreciate the memetics, perhaps 288k ? ugh doesn’t sound as good as 420, but im sure the memegineers can figure out a flavorful figure.

4 Likes

MPH is a very reliable project, and I think it will see considerable growth in the future

5 Likes

Given how early the project is in its lifetime, I think there are some benefits not quite as visible as others.

  • 88mph is building primitives around fixed rate largely unavailable in the current DeFi space =>
    zero-coupon bonds being the most recent development to get excited about. Although these products may not seem quite as compelling on their own (or to users farming high APY’s elsewhere), from the standpoint of composability, bonds + fixed rate products allow for interesting synergies not yet widely explored.

  • The project’s community groups are very active across both Telegram and Discord. Many fans of 88mph are fans of Bancor as well. A coinvestment + LM campaign brings 88mph users into the Bancor community and aligns incentives across another large pool of users for both projects.

I feel that the arguments against LM may hold separate against whitelist/coinvestment. I’d be in favor of separate proposals: (i) for whitelist/coinvestment and (ii) for LM incentives. (i) being much more straightforward, while (ii) warrants a focused discussion

3 Likes

agree, whitelisting should be one since that is more security oriented and coinvest/lm rewards should be another. but i feel as though this will probably pass once snapshot is live, this project is based.

5 Likes

I am in favor of this proposal - 88MPH is a great product with unique offerings and would be a great addition to the list of Bancor LPs. I am an 88MPH holder.

5 Likes

I don’t have a MPH bag but I am in support of this. 88MPH is a solid project with great potential.

3 Likes