The AmpleSense DAO is proposing that the FORTH DAO grant 275,000 AMPL to AmpleSense for deposit into the DAO’s Elastic Vault protocol. Currently, FORTH DAO has nearly 8.9 million AMPL in its Treasury. The sole purpose of this AMPL grant would be for deposit into the Elastic Vault. Once deposited AMPL provided via the grant will never be withdrawn.
This AMPL deposit into the Elastic Vault would help to further bootstrap and strengthen the protocol, deliver vault rewards (EEFI) to the FORTH DAO Treasury and support the use of EEFI as an additional Ampleforth ecosystem Incentivisation mechanism.
Launched in 2020, the AmpleSense DAO is a community-led organization focused on accelerating the Elastic Finance ecosystem. Since its launch, the DAO has helped to improve understanding of the rebase via articles in major publications, such as the Defiant, and launched unique educational initiatives such as the Rebase Crew.
Most significantly, AmpleSense spent more than a year developing a major protocol, the Elastic Vault, that utilizes AMPL’s rebase mechanic to enable AMPL holders to hedge against negative rebases and earn yield during every stage of AMPL’s rebase cycle. The vault is also designed to incentivize AMPL purchases and utilization (such as borrowing) during negative and neutral rebase periods.
The Elastic Vault emits the Elastic Finance token (EEFI), a “yield asset” that provides exposure to AMPL. EEFI’s supply is dependent on AMPL’s rebase status. EEFI supply increases when AMPL is in negative and neutral rebase status, and declines when AMPL is in positive rebase (due to EEFI buys and burns facilitated by positive AMPL rebases; specifically, a portion of new AMPL supply generated by the positive rebase is used to buy and burn EEFI, and also generate ETH rewards for Elastic Vault users). The Elastic Vault underwent a four-phase audit by the noted blockchain security firm Omniscia. Learn more about the Elastic Vault at docs.eefi.finance.
AmpleSense’s core implementation team includes long-time Ampleforth community members (Discord usernames: davoice321 and kingsolomon).
Forth DAO Benefits
Funding this grant request would have the following benefits for FORTH DAO and the Ampleforth Elastic Finance ecosystem:
Bolster the FORTH DAO’s Treasury: AmpleSense would allocate 30% of EEFI and ETH rewards generated by the 275,000 AMPL deposited into the Elastic Vault to the FORTH DAO Treasury. (EEFI and/or ETH rewards would be deposited into the FORTH DAO Treasury monthly.)
Incentivize Ampleforth ecosystem expansion and utilization: 60% of EEFI rewards generated by the Elastic Vault from the 275,000 AMPL deposit will be utilized to incentivize uptake of other protocols utilizing AMPL, for example, the new ElasticSwap AMM platform and other applications.
Note: The 275,000 AMPL grant would never be withdrawn from the Elastic Vault guaranteeing delivery of generated EEFI rewards to the growing AMPL ecosystem and the FORTH DAO over the long-term.
- A strong signal that the Ampleforth community is supportive of third-party developers: Helping to bootstrap the growth of the Elastic Vault would be a strong signal to other third-party developers that there is willingness within the AMPL community to incentivize the use and growth of applications built on AMPL.
Purpose of Grant
The 275,000 AMPL grant would be deposited into the AmpleSense Elastic Vault protocol. Once deposited this AMPL will never be withdrawn.
The Elastic Vault will generate EEFI and ETH rewards from the AMPL deposited into the vault. A portion of EEFI/ETH rewards (30%) would be deposited into the FORTH DAO Treasury. 60% of generated EEFI would be used to provide token incentives to other protocols using AMPL.
Proposed Grant amount: 275,000 AMPL
With the grant, we expect to deliver/engage in the following:
- Deposit 275,000 AMPL into the Elastic Vault: Immediately
- Deliver 30% of EEFI and ETH rewards generated by the deposit to the FORTH DAO: EEFI/ETH deposits to the FORTH Treasury will begin 30 days after the 275,000 AMPL deposit
- Utilize EEFI generated by the AMPL deposit to incentivize the use of other ecosystem protocols: Timing TBD/TBA based on conversations/collaboration with other protocols (we have engaged in discussions prior to the submission of this proposal); AmpleSense will deliver regular reports to the FORTH DAO on EEFI provided to third-party protocols to incentivize AMPL utilization
- Regular updates: The team will provide updates during Ampl-office hours + Amplitheaters regarding EEFI utilization (for external protocols) and FORTH DAO Treasury deposits
- 275,000 AMPL delivered to AmpleSense DAO for deposit into the Elastic Vault immediately via the FORTH DAO multisig; The deposit will be managed as follows:
- 275,000 AMPL deposited into the AmpleSense DAO multisig
- AmpleSense multisig deposits 275,000 AMPL into Elastic Vault immediately
- AmpleSense multisig will claim EEFI/ETH monthly for delivery to FORTH DAO Treasury
- AmplSense multisig will deliver EEFI rewards regularly for protocol incentivization (via deposits into smart contracts, etc.)
About the AmpleSense Team
The AmpleSense DAO was founded in 2020 by long-time community members Davoice and Solomon. Our technical co-founder is Anton (Stalker on Discord). Davoice has extensive experience in blockchain application development, Web3, DAO operations and is an active participant/contributor to major communities including Axie Infinity, PHONON DAO (including as a Treasury multisig signer), and his other significant project, StoryPrima DAO. Davoice developed the Elastic Vault concept and its engineering specifications. Anton leads smart contract development and front/back-end implementation.
SolomonSollarsNSense (TheeKingSolomon) has been in the Bitcoin | Crypto space for a decade as a contributor, early Investor, and early Bitcoin Hater in favor of stability protocols i.e. centralized stablecoins, collateralized stablecoins, and now REBASE. He hails as one of the original 101 delegates from the first blockchain community that formulated the DAC | DAO model (Bitshares) which is also the community that jump started the decentralized stability alternatives (BitAssets, Makr/DAI). For AmpleSense he now focuses on Elastic Finance thought leadership, communications and culture building.
- Email: firstname.lastname@example.org
- Discord: davoice321, theekingsolomon