Proposal from Meter: Conduct token swap with Meter

Summary

Meter proposes a token exchange between $MTRG and $AMPL to facilitate cooperation between the two parties.

OTC transaction amount: (not exceeding $100,000 in total), no premium transactions

Meter project parties contribute up to $50,000 MTRG
AMPL project parties contribute up to $50,000 AMPL

Token price calculation: Due to the huge volatility of cryptocurrencies, the price of MTRG and AMPL will be calculated based on the market price at the time the proposal is adopted

Meter Introduction

Meter is a high-performance infrastructure that allows smart contracts to interoperate on different blockchains. Meter’s mainnet uses HotStuff consensus and is secured by over 110 verified nodes (scalable to thousands) from the community. It is one of the most decentralized and highest performing ethereum sidechains.

Purpose of Token Exchange

1. Significance at the project governance level.

For AmplForth: Meter team, as a team with certain expertise in cross-chain protocols, has the ability to give AmplForth team more advice and help in cross-chain, and when AmplForth has some suggestions and actions in cross-chain, Meter team will give professional advice and help.

For Meter: AmplForth is part of Meter’s ecology, Meter and AmplForth itself is a community of interest, so Meter team should hold a part of Forth tokens and become an integral part of AmplForth community.

Future plans for cooperation

Meter will launch AMPL-MTRG flow pool and AMPL-BUSD flow pool on VoltSwap (Meter’s official launch Dex project), while Meter will officially give AMPL to these two flow pools as mining rewards (the current flow pool establishment has been voted by Meter community: https://snapshot.org /#/meter-mainnet.eth/proposal/QmR4CFbSRZN3tBSTLCQVJym4wbKMBUpKgVouuubXcC3Py3)

AmplForth will use the MTRG tokens held to pledge in the Meter wallet, and the revenue earned by users covers the AmplForth team’s fees on the Meter chain (mainly the fees incurred by the AMPL protocol for controlling multi-chain tokens through Meter).

Diversification of vaults on both sides

Both Meter and AmplForth are excellent teams, but as our respective ecosystems grow, we both increasingly need to further strengthen our partnerships with additional financial incentives and better secure our project partners by diversifying our tokens against market risk.

Partnership History | Meter and AmplForth

Meter and AmplForth are close partners. In June of this year, Ampleforth became one of the first projects to launch on Meter Passport, Meter’s official cross-chain bridge. The partnership allows Ampleforth to not only transfer AMPL tokens across chains, but also to control the multi-chain token variant base and total circulation via a master smart contract on Ether. (More details can be found in the article: Ampleforth is live on Meter Passport with Inter-Blockchain Communications!

(https://www.meter.io/post/ampleforth-passport-inter-blockchain-communications)

Since Amplforth’s token price fluctuates frequently and therefore requires almost daily base change operations, the partnership has greatly advanced the AmplForth project and allowed for more decentralized, rather than human-controlled, manipulation of the multi-chain tokens.

AMPL tokens rebase over the last 120 days, source: DuneAnalytics

The proposal is based on Meter’s existing bridge fee subsidy program: Bridge Fee Subsidy Program - Meter Docs,It is available to all the users that use Meter Passport. AMPL team is actually one of the active users due to sending daily rebase to multiple networks

The entry of AmplForth project into Meter ecology has greatly enhanced the richness of Meter ecology and become the first project in the field of algorithmic stablecoin in Meter ecology.

2 Likes

Related proposals:

Approve Meter to pursue strategic swaps with AMPL

Interesting idea, but I’m curious if the AMPL team even wants to do this kind of thing. But a few concerns for me:
-why AMPL and not FORTH (governance token for governance token?)
-the liquidity of this coin is basically nil where as you can off load AMPL no problem…sort of seems unfair
-Whats the further purpose? Don’t you think an actual useful integration would tie in more long term synergy than a token swap?

There is no reason to object, a win-win thing.

The proposal is based on Meter’s existing bridge fee subsidy program: Bridge Fee Subsidy Program - Meter Docs
It is available to all the users that use Meter Passport. AMPL team is actually one of the active users due to sending daily rebase to multiple networks

1、Answer:-why AMPL and not FORTH (governance token for governance token?)

Since AMPL is the main DEX token, that is why the proposal is based on AMPL instead of FORTH.

2、Answer:-the liquidity of this coin is basically nil where as you can off load AMPL no problem…sort of seems unfair

Our trading volume is scattered across multiple locations including Meter, BSC, ETH, and also centralized exchanges, with a total trading depth of millions of dollars。that is fully enough for $10w of MTRG to trade.
Our total depth of liquidity on VoltSwap alone is over $110w.
MTRG on VoltSwap:Voltswap Info

The most important thing is that the tokens coming from this transaction have a practical use, not simply a token swap, so there is no question of the Meter team selling the obtained AMPL directly. I will answer this question in detail on point 3.

1 Like

Interesting idea for sure!

Questions about the proposal:

  • How much of the ~50,000 AMPL do you plan to use for this?

  • Who will have access to the rest of the AMPLs? Will it be in a governance-controlled wallet or team-controlled?

Otherwise, I like the idea of incentivizing AMPL liquidity on BSC.

How do you plan to achieve this as the current proposal is only about AMPLs?
Do you plan to make another proposal for another trade?

Is there any guarantee that the revenue actually covers the fees? If not, could you elaborate a bit more about why you think this would be the case?

Question to the Ampleforth community and team:

Where should the AMPLs for this trade come from?

Personal current conclusion

All in all, I like the idea of a partnership with Meter. :100:
Being multichain is an integral part of Ampleforth’s mission and being able to autonomously pay for the bridge fees would be a big win. However, I think currently there are a lot of open questions which should be answered/discussed first.

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3、Answer:-Whats the further purpose? Don’t you think an actual useful integration would tie in more long term synergy than a token swap?

We have actual product integration and the purpose of the proposal is to bring the integrated product that has been done to greater effect.

  1. The AMPL team will use the MTRG pledges they get to get revenue on the official website to cover the cost of fees for the daily use of Meter by the AMPL team.
  2. The AMPL tokens received from the swap will be used to create a Pancake Syrup pool like set up on voltswap (Front running resistant crosschain asset swap running on Meter mainnet). VOLT token holders will have to stake to earn $AMPL while $AMPL token holders could provide liquidity in AMPL-MTRG and AMPL-BUSD pools to earn VOLT.
    The VOLT pool token allocations have already passed governance。
    volt token allocation: Token Distributions - VoltSwap
    Proposal related to AMPL tokens to set up a liquidity pool on Meter:Snapshot

The details of the cooperation can be seen in the following introduction

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Answer:We will use all AMPL tokens earned from the exchange for mining incentives

Answer:Yes, regarding Forth’s plan, we will draft a separate proposal on community governance

Answer:I did a simple calculation of the consumption of the AMPL team using Meter to maintain a single sidechain

Matters Price Unit
Single cross-chain cost for a single side chain 0.02 eth
Number of cross-chains per day for a single side chain 1 times
Table of Bridge Cost Subsidy Program Cost Reimbursement Rates 85%
Annual cross-chain consumption cost of a single side chain after the return 1.095 eth

The result is that each sidechain consumes an average of 1.095 ETH per year, or about $3,504
Currently AMPL only needs to maintain one side chain of BSC.

And the APY of MTRG single coin staking is 11%, so the AMPL team can get $5,500 per year from staking (based on $5w MTRG)

$5,500>$3,504,Therefore sufficient to cover consumption.

But if the AMPL team maintains one more sidechain, it will need more MTRG.

1 Like

「shanjiefengyi」 is doing an excellent job !!!

I support the MTRG-AMPL token swap. Ampleforth is already paying fees to Meter because of one reason: Ampleforth is using Meter’s services.

After the swap, Ampleforth is still paying fees to Meter, but now there are two possible reasons:

  1. (If Ampleforth sells MTRG to cover the fees) Ampleforth is using Meter’s services. Selling MTRG is like paying fees, because Ampleforth already paid the $50,000 “fee” up front.
  2. (If Ampleforth does not sell MTRG to cover the fees) Ampleforth is increasing their Meter governance power (among all non-MTRG-staked holders).

If Ampleforth believes in the future success of Meter and the future success of their partnership, it makes sense to do the token swap.

1 Like

Thank you very much, Meter has been the best currency for the AmplForth community!

Hey @shanjiefengyi-Meter , thanks for the proposal it’s an interesting one! Although there are a lot of details I want to make sure we understand correctly.

I’m generally very much in favor of governance token swaps to encourage long-term alignment between projects. This is something that isn’t possible now, but will be once the unclaimed FORTH get reclaimed back to the FORTH governance Timelock next April. However, this proposal is not exactly about governance alignment per se.

My understanding of how this proposal works is:

  • Ampleforth provides $50K AMPL, all of which will be distributed to users who stake VOLT on the Meter chain. (Not necessarily AMPL holders or AMPL LPs)
  • However, AMPL/BUSD and AMPL/MTRG LPs on Meter may earn VOLT via a geyser v2 fork that you have deployed. They may choose to then stake this VOLT for AMPL.
  • Meter provides $50K MTRG to Ampleforth that will allow the project to stake in the Bridge Subsidy program. This would be enough to reduce all bridge fees for rebases by 85% for any number of total sidechains. (i.e. One stake discounts for all sidechains, not one stake per sidechain)
  • The subsidy program only really requires about half of this, but having a larger swap increases the reward program side for Meter, and Treasury diversification for Ampleforth.

Is this basically correct?

Could potentially spend treasury funds to acquire treasury owned FORTH if wanting to do it earlier than April?

Not that I’m proposing that, just confirming what the options are.

Hello all. This interegration can give More expantion to Ample and use case for the LPs mentioned…not bad idea
Cyaz

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Thank you very much for your attention
First of all, governing token swaps seems to be a very difficult thing to do at this point. But it doesn’t mean that Meter doesn’t want to work on it. But first, Meter should take the initiative to enter the governance system of Amplforth, and try to find Meter’s place in the governance of Amplforth project through a period of governance, so as to be able to meaningfully govern the token exchange.
Meter is working towards this, and this proposal is one of those efforts.

Correct !

Thanks for the confirmation @shanjiefengyi-Meter, very helpful.

All-in-all I think this is a good arrangement for both projects. There’s one change right now that I would request–

I’d prefer if AMPL goes directly to the AMPL LPs, rather than to VOLT stakers. Since Meter is already deploying a version of Geyser v2, this should be very simple. It doesn’t need to displace the VOLT rewards from the geyser. In fact they could both be distributed via the same program if you’d like.

Firstly, this puts the deployment of the Liquidity Fund more directly in alignment with its intended purpose. The goal of the Liquidity Fund is to distribute these AMPL, in a rules based fashion, to those who do work supporting the AMPL network (AMPL LPs).

I think it’s also more likely to successfully grow your community as well. This structure has the potential to bring in new community members who support the token, rather than funding existing VOLT holders with a token that they might not value yet.

3 Likes

This is a great suggestion and Meter agreed to make such a change.
After the change, Meter will give the AMPL from the swap directly to the AMPL-related liquidity pool as a mining reward

1 Like

Great! Let’s make this happen :slight_smile:

2 Likes

Couldn’t agree more, I think it’s time to summarize that discussion into a proper proposal and open a snapshot poll.@Brandon
But I see that AmplForth’s snapshot voting mechanism has not yet been finalized. So I’ve also posted some of my own ideas to push AmplForth’s snapshot voting to go live soon

1 Like