Summary
- Deploy Magicswap v2 as an evolution to Magicswap v1
- Begin process of migrating existing liquidity and rewards from v1 to v2
- Set baseline protocol fee to 0.3%
- Approve launch of the first NFT-ERC-20 pool on v2 by Zeeverse, as well as a blanket approval for all future NFT pool creations
- Upon the launch of Treasure mainnet, also approve in advance its deployment as the native AMM and DEX for the Treasure Chain and network of Infinity Chains
This proposal will authorize core contributors to deploy Magicswap v2, a permissionless AMM that supports ERC-20 and NFT trading. Pools currently on Magicswap v1 will begin to be migrated to v2 in collaboration with partners, and eventually to Treasure Chain. Any existing LP reward programs will be migrated to v2.
The protocol will take a 0.3% fee on transactions. Pool creators will be able to establish LP rewards. The admin will assign token creator rewards to pools.
Upon launch of Treasure mainnet, this proposal authorizes the DAO to deploy Magicswap v2 on the Treasure Chain and network of Infinity Chains.
Rationale
Magicswap v2
Magicswap v2 was audited by Macro. The protocol has been ready to launch but remained unlaunched as games were not ready to implement. Currently, two partners are eager to experiment with ERC-1155 AMM trading.
The protocol also includes a baseline protocol fee of 0.3%, returned to the DAO, and a token creator fee. Core contributors and the AMM Council will work with partners who list their official tokens or collections on the AMM to calibrate the creator fee. The protocol also includes a third tier of royalties for LP fees. The pool creator can choose up to 20 LP rewards, including ERC-20s or NFTs.
Moreover, after discussing with Macro about the pool permissioning in the original v2 implementation, we concluded that the safest form of deployment was permissionlessness pool creation and LP positions. Anyone will be able to create pools with Magicswap using NFTs, ERC-20’s, or a combination of the both, with up to 20 rewards. Rewards can be a mixture of ERC-20’s, ERC-721’s, or ERC-1155’s. The pool creator chooses at the time of creation.
Magicswap v2 will remain permissionless. However, this proposal will authorize core contributors to only use MAGIC for seeding LP rewards in pools either created by Treasure or a partner rather than community-created pools. This limitation will ensure that partners’ primary pools will still retain significant liquidity.
Zeeverse NFT-VEE Pools
Zeeverse will be the first pilot project to implement Magicswap v2 and will launch the first NFT-ERC-20 pools for all of their consumables (eg. 8 fish in raw and cooked forms, fishing bait, and energy potions; 18 pools in total) that can be accessed and interacted directly in-game, in-engine with the help of the Treasure Development Kit (TDK).
With the launch of the Emberwing Harvesters, this marked the first usage of the TDK in production and the Zeeverse team has been hard at work in leveraging the TDK to bring more of their game onchain. From their daily claim of VEE to the addition of their cooking and fishing skills onchain, both Zeeverse and the TDK have seen an explosion of onchain activity.
As of July 3, 2024 from Zeeverse’s Dune Dashboard.The launch of the new NFT-VEE pools will see Zeeverse drive even more onchain transactions. This is all part of Treasure’s road to pioneering a new and novel form of truly player-driven economies that are both seamless and enable automated economic balancing and smart merchant NPC-like mechanics. For more information on what Magicswap will unlock for games, read the blog post.
Proposal
Steps to be implemented:
- Launch Magicswap v2 on Arbitrum One
- Authorize the core contributor team to begin working with partners to migrate existing liquidity from v1 to v2
- Update Magicswap’s fee structure to 0.3% baseline protocol fee, down from 0.5% split as follows: Liquidity Providers: 0.375%; Community Gamification Fund: 0.0625%; and Community Ecosystem Fund: 0.0625%Begin the process of migrating existing rewards from v1 to v2
- Authorize the creation of the first pool:
- Zeeverse’s 18 NFT-VEE pools (eg. 8 fish in raw and cooked forms, fishing bait, and energy potions; 18 pools in total), with the following fee structure:
- Protocol Fee (to the DAO): 0.3%
- Royalty Fee (to Zeeverse): 2.5%
- Liquidity Provider Fee (to LPs): 2.5%
- Zeeverse’s 18 NFT-VEE pools (eg. 8 fish in raw and cooked forms, fishing bait, and energy potions; 18 pools in total), with the following fee structure:
- All future NFT-ERC-20 pools are authorized to be created by the Treasure core contributing team without the need for a future vote to the DAO. Changes to this can be proposed at any time by the DAO.
Next Steps
We will move directly to Snapshot for formal voting and parallel discussions with the community. The polling process begins now and will end on July 12, 2024 at 1:00pm UTC.