APGP 3: Token Swap: APWine x Stake DAO

Expand the partnership between Stake DAO and APWine DAO by performing a 500K$ treasury swap of SDT for APW which will be used to increase the synergies between both protocols

Stake DAO is a Defi Protocol with over 750M$ TVL and deployed on 5 different networks: Ethereum, Polygon, Avalanche, Harmony and BSC. This project offers several opportunities to grow your crypto assets: Yield Optimizer, Options, DEX, Arbitrage strategies and is launching a new product called the liquid lockers.

The Liquid Lockers (LL) is a new feature created for veTokens, allowing governance token holders to lock in the LL and receive sdTokens. This allows holders to keep a liquid position, as the sdTokens can either be staked to earn yield while enjoying all the governance rights associated, or added in the LL strategies which are sdTokens/Tokens pools. .

The SDT tokenomics will be changed for a ve-model, so veSDT holders will be able to vote on gauges for the Liquid Lockers and the LL strategies gauges, but also to boost the voting power on sdTokens staked and earn part of the protocol fees. More informations on the LL and veSDT can be found here.

Since APW is a ve-model, and considering the ongoing gauges vote, Stake DAO would like to become an active participant of the APWine DAO.

A mirror of this proposal has been posted on the SD forum, so this post will be updated depending on the SD vote results.

Token swap:
Stake DAO would like to propose a token swap of 500K$ worth between both DAO.
The proposed token swap conditions are:

  • Split the swap with 50K$ tranches during 10 weeks
  • The swap price will be determined with a 3 Day TWAP before each swap
  • Both DAOs should lock at least the 1st tranche, and can wait the liquid lockers for the next ones
  • The tokens received will be used for gauge voting ang governance purposes

APW Liquid locker and strategy creation: (if accepted on SD vote)
Stake DAO propose to create a liquid locker for APWine, so users could lock their APW on Stake DAO and receive sdAPW, enjoying all the voting rights of the veAPW, the Liquid locker yield, while keeping a liquid position.

SD treasury allocation: (if accepted on SD vote)
Stake DAO propose to allocate 15% of the Stablecoins treasury in the FRAX3CRV and sdam3CRV PT/Underlying pools

Once live, each sdTokens could be proposed to wine listing events, which means that you could sell your yield and voting rights in advance.

Benefits for Apwine DAO:

  • Create a long term position on SDT
  • Creation of a Liquid Locker and a sdAPW/APW strategy both eligible for gauges rewards by locking SDT and voting with veSDT (if voted by SD governance)
  • Once live, APW holders will be able to boost their voting power on sdAPW with their veSDT
  • Once live, new IBTs that can be integrated on the protocol (sdTokens)
  • Increase the visibility of both projects with cross marketing
  • Increase of the TVL and revenues with Stake DAO treasury deposits (if accepted by the SD vote)

Benefits for Stake DAO:

  • Create a long term position on APW
  • Ability to vote on APW gauges with veAPW/sdAPW
  • Increase the governance participation and DAO revenues by farming APW rewards
  • sdTokens can be integrated as IBTs on APWine once live
  • Increase the visibility of both projects with cross marketing

Swap the tokens every week over 2.5 months

Technical implementation:
The swap price will be determined with a 3 Day TWAP before each swap

Voting options:

  • Yes, swap 500K$ over 10 weeks
  • No, don’t swap 500K$ over 10 weeks
  • Abstain
Should we do a token swap with Stake DAO ?
  • Yes
  • No
  • Abstain

0 voters

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I have some question about the proposal :

  1. The idea for Stake DAO is to earn a lot of APW → vote for Stake DAO Pool with Gauge system + the pool where the Treasury is deposited and create their own flywheel, leaving other pool without a lot of reward ?

  2. This APWar is also planned with other protocol (like Harvest, Beefy, or Other) ? For example creating a cvxAPW ?

  3. What’s the point for the APW DAO to have position in SDT ? Because voting on Stake DAO governance don’t seems really important for APW to my point of view.

I’m just affraid that Stake DAO canibalise APWine (strong voting power → incentivize their pool → strongest voting power → etc…) . I think I missunderstood some point of this proposal, this is why i’m asking all of this, and there is no offence or anger in all this post :heartbeat:


Hey @Non0 thanks for the feedback and questions:

  1. Currently Stake DAO treasury has no APW and no funds deposited on the DAO. On the SD proposal, there is also a question about depositing funds (300K$) to accumulate APW, however, this isn’t enough to take all the rewards. Same for the voting power, Stake DAO will lock 50K$ APW at first, which can be important but not all the voting power, and it will probably motivate other DAOs/Users to do the same.

  2. It’s up to each project to get a place in the APWAR, so we could see other treasury swap proposal in the future, or APW buys by other DAOs, or bribes for veAPW holders by project that want rewards but not lock APW.
    Maybe Convex will create a cvxAPW someday, but actually Stake DAO could be more interesting for veTokens holders, as it allows users to earn yield and staying liquid like convex, while keeping your voting and boosting power

  3. The goal for APWine DAO to own SDT are :

  • Vote on the SDT gauges for the Liquid lockers and the strats (if voted on SD)
  • Earn yield for the treasury from the veSDT rewards
  • Boost the sdAPW voting power if the DAO locked some

Let me know if you have others questions :slight_smile:


Thank you very much for your answer & your time, it’s clear now :slight_smile:

1 Like