CSPO - CEX Stake Pool Offering

CSPO - CEX Stake Pool Offering

I would like to propose a new and innovative way for the Lenfi DAO to be able to pay for future CEX listings. In addition to the protocol fee increases and interest rate adjustments, a CEX Stake Pool Offering could be a great way for the Lenfi DAO to raise necessary funds to pay for CEX listings as well as future developments and partnerships! These funds could also be rewarded to Lenfi holders in the future as we build a true economy around the Lenfi protocol!

CSPO – CEX Stake Pool Offering, what is it???

Based off Iagon’s LSPO - which has been extremely successful- this will be a stake pool run by the Lenfi team and DAO that has a high fee (99% like IAGL1). Staking rewards will be paid out in Lenfi since the DAO will be keeping the ADA rewards. This pool will run for approximately 1 year and the Lenfi tokens should be vested and paid out over the 12 months following the completing of the CSPO, at a rate of 1/12 of the total each month. This could create a revenue stream in the short term without causing much inflation of the Lenfi token.

I would like to get community input on this idea for what the Lenfi payout should be per ADA per epoch delegated. But here are some initial numbers that I think could be a good starting point:

-Lenfi staking pool pays 0.0005 Lenfi per ADA delegated per Epoch, MAX supply of 2 million Lenfi distributed over the 12 months following the CSPO.

For this example, if a user delegated 100,000 ADA to the Lenfi CSPO pool, their rewards would be:

100,000 ADA X 0.0005 Lenfi = 50 Lenfi/Epoch

50 Lenfi X 73 Epochs in a year = 3650 Lenfi which is equivalent to almost 10,000 ADA at the current prices or a 10% return on investment for staking!!

This same 100,000 ADA would earn the Lenfi DAO roughly 3000-3500 ADA.

So, lets do the math for how much ADA the pool can bring in:

If there is 10,000,000 ADA delegated to the pool:

That equals 300,000 to 350,000 ADA going to the DAO for a year of staking, or about 30,000 ADA/month.

If there is 20,000,000 ADA delegated to the pool:

That equals 600,000 to 700,000 ADA going to the DAO for a year of staking, or about 60,000 ADA/month.

If there is 50,000,000 ADA delegated to the pool:

That equals 1,500,000 to 1,750,000 ADA going to the DAO for a year of staking, or about 140,000 ADA/month.

As you can see, there is MASSIVE potential for the Lenfi DAO to earn ADA and grow the economy around Lenfi. All these examples would generate a substantial amount of ADA for the DAO to pay for CEX listings as well as hopefully fund future protocol development in addition to generating more yield for Lenfi token holders.

To jumpstart the stake pool, we could vote to delegate the ADA in ADA/Lenfi and Lenfi/ADA liquidity pools on V2 to our new stake pool to earn additional yield for liquidity providers. This, in addition to sharing this new concept with all of Cardano over social media could lead to new stakers as well as new users of the Lenfi platform!

Part of this funding could be used to partner with other top Cardano Projects like IAG or Snek who have experience in CEX listings.

Again, this will be in addition the fee adjustments that are currently being made to the protocol, we could see some huge growth in DAO funds in a short amount of time, this would allow up to potentially list on several Tier 1 exchanges and onboard many new users to Lenfi and the Cardano ecosystem!

Please let me know what your initial thoughts would be on this new concept and hopefully we can submit it to an on-chain vote!!

Would you be interested in this proposal if it went to an on-chain vote?

  • Yes
  • Yes, with adjustments to staking numbers
  • No
0 voters
7 Likes

good idea but we would have to pay out less lenfi as incentive

3 Likes

thanks for the feedback!
you have any numbers in mind?

1 Like

Not a fan of this at all. It would require selling remaining lenfi to fund this which depletes the treasury of lenfi for future usage such as operating expenses. Shortfalls in pools. A cex listing induces FOMO and then price corrects to where the market feels the price should be in the meantime we have less lenfi for future expansion.

Hey Gator, what part of this would require us to sell the remaining Lenfi? We could adjust the amount of Lenfi that is rewarded from the stake pool but the rewards are also vested over a 12 month period starting a year after the CSPO would start. Hopefully by then the dao would have more than enough funds to list on several cexes and also have funding for future developments as well. Driving more users and higher buying pressure to offset and potential selling pressure that could come from tokens unlocking slowly

1 Like

ghis convo is done its not the right time! we need the funds to build what we have planned out

this would bring in ADA funds so we would not have to sell Lenfi funds directly from the DAO, they would be distributed over 12 months more than a year from now. While we would get ada funding in the short term

2 Likes

what you think of the dao providing lp? it would be protocol owned liquidity

What is the effect of cex listing in your calculation?