Governance Proposals #12 & #13
Recently, Crystl Finance has found great success with our V3 Vaults product on BNB and Cronos, particularly when paired with a Boost allocation. We have seen in practice that Boosting our V3 Vaults allows the platform to quickly gather TVL into key Vaults with a high APY. With higher TVL, Crystl Finance is then able to accumulate adequate performance fees to increase our operational runway and the APR in our Revenue Sharing feature.
Today, we would like to introduce two Governance Proposals to the #CrystlCrew community: Proposal #12, and Proposal #13. After careful consideration by the team, these proposals are being put to Governance for the benefit of Crystl Finance to make use of the prior fact regarding the effectiveness of using Boosts to attract TVL to the platform.
How To Vote In Governance
Please ensure your $CRYSTL tokens are on the #Polygon network. Only the following are eligible for the snapshot:
- $CRYSTL in your wallet
- $CRYSTL in the $CRYSTL-$MATIC Revenue Sharing Pool
- $CRYSTL in the $USDC or Manual $CRYSTL Single Staking Pools
The snapshot will be taken on Tuesday 07/05 at 16:00 UTC and end on Thursday 07/07 at 23:00 UTC. Your tokens must follow the above criteria prior to the snapshot. Once the snapshot is taken, you may vote through the following link: https://vote.crystl.finance/
In order to bridge your tokens from Cronos to Polygon, you may use our bridge partner: https://www.relaychain.com/
Proposal #12: Change Treasury $CRYSTL Allocation From Bonds To Boosts
- Option A: Use $CRYSTL originally allocated for Bonds to instead do Boosts for V3 Vaults
- Option B: Do not change the allocation for $CRYSTL Bonds.
Reasoning: At the present, the treasury is sitting on a large sum of $CRYSTL originally allocated for our plans to introduce protocol owned liquidity through Bonds. The Bond system remains a low priority since it is not a source of revenue for Crystl Finance stakeholders. As such, the $CRYSTL allocated for Bonds has been sitting completely idle. The team believes it is much better to put this $CRYSTL to use for Boosts. By strategically choosing in-demand farms with an attractive APR, it is in fact possible to get a return on investment in performance fees when it comes to the Boost allocations. We will seek to partner with projects who will provide a Boost allocation for a Vault and strategically match their allocation with $CRYSTL. By doing this, we will ensure that the cost of the Boost from our side results in an effective return of value through performance fees both for the treasury and the Revenue Sharing feature that rewards $CRYSTL stakeholders.
Option A vs. Option B: The market is currently in a critical situation, and the team believes that Option A is the best choice to ensure the longevity of the platform. The $CRYSTL in the treasury which was allocated for Bonding can be used to strategically Boost Vaults. This would make the Vaults profitable and ensure our runway while rewarding $CRYSTL holders. If Option B is voted in, the $CRYSTL will remain idle in the treasury. At Crystl Finance we strongly value transparency and as such we would like to stress that there is a chance it never ends up being used if we cannot remain a profitable protocol in this bear market and ensure our sustainability. The next Proposal #13 will be invalid if Option B is voted in.
Proposal #13: Bridge $CRYSTL To New Chains Where Boosts Are Needed
- Option A: The $CRYSTL token will be made available to be bridged to new chains and funded with initial liquidity.
- Option B: Keep $CRYSTL on current chains (Polygon & Cronos).
Reasoning: In line with the reasoning in the previous Proposal #12, if we are to use $CRYSTL for strategic Boosts to attract TVL into Vaults on new chains, the token will need to be available for cross-chain transfer through a bridge provider.
Making $CRYSTL available on new chains will allow us to Boost V3 Vaults on new chains and make $CRYSTL tradable. Having Boosted Vaults will allow us to create hyper attractive strategies and gather new TVL and performance fees. In doing so, we also open the $CRYSTL token to a much wider market available for purchase. If $CRYSTL cannot be bridged, we have no way of doing Boosts or matching promising partner allocations on new chains.
Note: If we make $CRYSTL bridgeable to new chains this does not mean we will simultaneously launch native Revenue Sharing on these chains. Revenue Sharing on new chains will only be introduced once performance fees being earned are adequate, at which point we will host separate Governance Proposals and have the community vote on whether to introduce Revenue Sharing on these new chains. Until then, performance fees earned on new chains will be used to fund Revenue Sharing on Polygon and Cronos, as well as to support the treasury.
Option A vs. Option B: The first Option A will ensure that $CRYSTL is liquid and bridgeable to new chains and open up opportunities for doing Boosts and helping to sustain Crystl Finance’s longevity. Option B on the other hand will mean that we have to stick to only doing Boosts on existing chains (Polygon and Cronos).