Governance Recap & The Next Evolution of Crystl Finance
Dear #CrystalCrew! On behalf of the Crystl Finance team we would like to thank you all for participating in $CRYSTL Governance! With proposals #1-#4 now complete, this marks a significant milestone on our journey to transition our business model from yield farming into a premiere Vault protocol that is capable of generating tangible and sustainable revenue for $CRYSTL shareholders.
Exciting times are now just around the corner for Crystl Finance! As we proceed with an integration for each proposal as summarized in the following section, $CRYSTL holders can expect many valuable benefits for themselves as well as for the future of our favorite protocol.
Proposal Recap Summary
- Proposal #1 — Implement Vault Revenue Dividends
Option A (99.18% | 1.62M $CRYSTL):
Use a portion of Vault performance fees to pay out revenue dividends.
- Proposal #2 — Choose Vault Revenue Dividends
Option A (88.66% | 1.2M $CRYSTL):
Stake $CRYSTL-(GAS TOKEN) LP → Earn (GAS TOKEN)
- Proposal #3 — Move $CRYSTL Emissions to Cronos
Option A (92.36% | 1.57M $CRYSTL):
All $CRYSTL emissions will be moved to the Cronos network
- Proposal #4 — Set 12.5M As The Maximum $CRYSTL Supply
Option A (96.18% | 1.77M $CRYSTL):
Once the $CRYSTL supply reaches 12.5M tokens, all emissions will end and $CRYSTL will be hard capped.
At the current circulating supply of ~10.1M, close to 20% of all $CRYSTL in circulation has been used to vote in $CRYSTL Governance! This is an incredible statistic worth mentioning, as it signifies the alignment of the #CrystalCrew in our communal ambition to succeed as a decentralized protocol!
Given the results from the 4 proposals, Crystl Finance is now put in a favorable position from which we will begin our next evolution. It is truly an exciting time, and we simply cannot wait to take Crystl Finance to the next level!
Vault Revenue Dividends (Mining Guild)
Going forward, a portion of all Vault performance fees will be used to pay revenue dividends to liquidity providers. On Cronos, this will take form starting with a brand new feature called the “Mining Guild” where users may stake $CRYSTL-$CRO to earn $CRO tokens funded from a portion of the performance fees accumulated by our Vaults on Cronos. Furthermore, we will provide a Vault option for those of you who prefer to auto-compound your $CRO earnings to maximize your $CRYSTL-$CRO LP at stellar APYs! We expect revenue sharing to be live sometime in January 2022, with an exact date communicated in the coming weeks. Now, let’s get into some of the benefits which will be brought upon the implementation of Vault revenue dividends!
Passive Income: For the first time since the inception of our protocol, $CRYSTL shareholders will now have a way to generate a passive income that is not dependent on printing new tokens or awaiting new partnership pools. By staking $CRYSTL-$CRO LP to earn $CRO, users will have an income avenue that is as lucrative as the performance of our Vaults. As the Cronos ecosystem continues to grow, Vault revenue will continue to increase and provide a reliable stream of income for liquidity providers.
The graphic above outlines some APR projections for a few $CRYSTL-$CRO TVL milestones and monthly dividend payout estimations. For example, if Vault performance fees amount to paying out $50K in revenue dividends to $100K worth of $CRYSTL-$CRO staked in the dividends feature, then this effectively results in a stellar 600% APR! With compound interest in a Vault this would be nearly ~40,000% APY!
Business Model Maturity: As you all know, until now the business model employed by Crystl Finance was heavily dependent on incentivizing liquidity providers through the printing of new $CRYSTL tokens distributed on the Mines. This business model has been challenging to maintain. In fact, we had to focus our business development team entirely on establishing partnerships to fund Pools. Now, with vault revenue dividends we finally have a chance to step away from this approach in lieu of a more decentralized revenue model. The fact that Crystl Finance will now be able to generate sustainable revenue for $CRYSTL holders without depending on partnership Pools speaks for the growing maturity of our protocol! The value of this should not be underestimated. We are in DeFi, and every step that we take towards decentralization and autonomy is a massive win for all $CRYSTL shareholders.
Higher Pool APR: As the number of $CRYSTL shareholders providing $CRYSTL-$CRO liquidity continues to grow this will have the side-effect of freeing up a lot of room on our partner pools! With less $CRYSTL staked on the Pools there are more rewards to go around, leading to increased APR!
Deeper Liquidity: High liquidity is not only beneficial, but necessary for the price of the $CRYSTL token to retain stability at higher values. Low liquidity only brings risks, volatility, and low prices. By incentivizing liquidity providers with revenue dividends this creates the right conditions for organic price appreciation and reduced price slippage. Furthermore, lower price slippage has the potential of attracting larger buyers previously unwilling to enter a position.
Discontinuing Emissions on Polygon
Given that the community voted in favor of moving emissions over to Cronos, we will be deprecating all Mines and Pools that distribute $CRYSTL as a reward on Polygon. This process will be complete by January 2022 around the same time that we implement Vault revenue dividends on Cronos. The reason why this process will take some time is because we have to respect the existing partnership deals we already established on Polygon. We also want to keep the timeline simple and implement revenue dividends at the same time as the old emissions are deprecated on Polygon.
ApeSwap Farm & Vault!
To ensure that the Polygon network retains a reasonable level of liquidity for $CRYSTL, in addition to the above we will also be resurrecting the $CRYSTL-$MATIC → earn $BANANA & $CRYSTL farm on the ApeSwap exchange! We will also bring back the Vault that automatically compounds those rewards for more $CRYSTL-$MATIC LP!
The Next Evolution of Crystl Finance
With the maximum supply of $CRYSTL becoming capped at 12.5M, the $CRYSTL token no longer belongs to the inflationary asset class! Being a limited resource, each $CRYSTL will now become a proper share of the Crystl Finance protocol. In line with this thinking, one of our main goals going forward is to ensure that every $CRYSTL holder feels that their $CRYSTL tokens are rare, valuable, and bring them a cutting edge means to generating passive income. With that being said, we would like to introduce you to some brand new concepts that will be fundamental to the longevity of our protocol!
Introducing Vaults V3
In a highly competitive space such as DeFi, innovation is the key to staying ahead of the competition. That’s exactly why our tech team has been working tirelessly to take the concept of our auto-compounding Vaults to the next level!
It’s time to step up the game with Crystl Vaults V3, one of our major products planned to hit the market early-to-mid Q1 of 2022.
Boosted Vaults are the next evolution of Crystl Pools that will allow users to automatically grow their capital above and beyond the going market APY rate found on our competitors’ platforms. In addition to compounding LP tokens, Boosted Vaults will pay users with additional rewards in the form of partner tokens sourced from project partnerships established by Crystl Finance.
The Problem: Although our current model of stake $CRYSTL→earn partner token is overwhelmingly enjoyed by our users, it leaves a lot to be desired from the perspective of our partners. The current model does not provide a tangible means of guaranteeing that a Pool allocation ends up benefiting the liquidity of a partner’s token. If a Pool allocation does not result in higher liquidity, unfortunately this usually means the partner does not return for a Pool top-up. In the end this affects Crystl Finance and its users who are looking for a perpetual stream of tokens to earn in the Pools.
The Solution: Our new business model with Boosted Vaults will finally align incentives between all three parties; users, partners, and our company (Crystl Finance):
- Users: Want to accumulate passive income with their favorite projects at an interest rate higher than the one offered by alternative platforms.
- Partners: Want to grow liquidity for their token by attracting interest for their platform and incentivizing liquidity providers with rewards.
- Company: Wants to maximize Vault revenue sharing dividends for $CRYSTL holders.
Boosted Vaults make a lot more sense to our partners than our current Pool model, because it allows them to incentivize users staking in the Vault who are already interested in maximizing the partner token liquidity. With the new business model, we expect that Crystl Finance will be able to crank out partnerships faster than ever before. This will serve to bring our users many staking options with above average APYs, while also increasing the longevity of our relationships with our partners, resulting in more top-ups. The sustainability and low-maintenance of this new model will lead to higher TVL, higher revenue from Vault performance fees, and finally reflect in the price appreciation of the $CRYSTL token driven by the increased demand for the growing magnitude of our revenue from our Vault revenue sharing dividend feature.
The Crystl Zap feature is aimed at magnifying the ease of use of our lucrative Vault services by providing users with the easiest way to start using any Vault to grow their capital.
The Problem: LP token creation is a tiresome process that requires users to perform multiple steps such as buying or selling tokens, approving contracts, adding liquidity, staking, and etc. This is especially intimidating for users who are new to DeFi and acts as a barrier preventing capital flow to our Vaults.
The Solution: Zap will allow users to easily convert any token in their wallet into LP and stake in a desired Vault, effectively overcoming the priorly mentioned barrier.
By implementing Zap, we expect to tap into a whole new portion of the market that consists of users that are not familiar with LP token creation. Capturing a part of this market will serve to grow our TVL as well as our community by welcoming these new users. Given the sheer extent of the volume of new users brought by Crypto.com into Cronos, we expect this feature to be especially effective for onboarding fresh capital into our platform.
Advanced Vault Strategies & Maximizers
Vaults V3 will bring the capacity for us to implement advanced compounder and maximizer strategies that are unique to the Crystl Finance platform. Not only will this bring a brand new avenue for business development to offer Vaults for our partners that are not available anywhere else, but it will amplify the variety of options for users to grow their capital using our protocol. With that being said, we will share more concrete information about these advanced strategies closer to the release date of V3.
Introducing $CRYSTL 2.0
To secure the future of the Crystl Finance protocol and to guarantee a sustainable, perpetually growing level of liquidity, we would like to put forward another proposal (#5) to the community in the coming week. With the remaining $CRYSTL emissions being moved to Cronos, we would like to lead Crystl Finance into the revolutionary paradigm shift of DeFi 2.0 that is protocol owned liquidity (POL).
With a POL model, all remaining $CRYSTL emissions will be used for on-demand purchasing of $CRYSTL-$CRO LP from investors through a bonding system as constituted by a fork of Olympus DAO. In this system, investors may purchase $CRYSTL at a discount price by exchanging $CRYSTL-$CRO LP for $CRYSTL below the market price. The $CRYSTL-$CRO LP obtained by Crystl Finance this way will be permanently locked on Cronos in a DAO treasury and will serve to guarantee a minimum amount of liquidity for the purpose of purchasability and lower price slippage. Furthermore, this would set Crystl Finance on a journey to eventually reach a degree of POL that serves to benefit the health of our platform and the stability and price appreciation of the $CRYSTL token.
We will be releasing another article in the coming days that dives deeper into the concept of protocol owned liquidity, the 5th $CRYSTL Governance proposal, as well as the reasons for why pursuing a POL model is the best avenue to maximize benefits for $CRYSTL holders in the long run!
- $CRYSTL-$CRO → earn $CRO revenue dividends (and Vault) to be implemented by January 2022
- $CRYSTL emissions deprecated on Polygon by the time of the revenue dividend implementation (January 2022)
- The changes brought by Proposals #1-#4 mark the transition of Crystl Finance from a business model based in yield farming to a business model based in Vaults & revenue sharing
- $CRYSTL-$MATIC → earn $BANANA + $CRYSTL farm will be resurrected on the ApeSwap Polygon Exchange by January 2022
- $CRYSTL-$MATIC Vault based on the ApeSwap farm will return as well
- Crystl Vaults V3 revealed to arrive in early-mid Q1 of 2022, bringing Boosted Vaults, Advanced Vault Strategies, & Zap functionality
- Crystl Finance will release a new proposal #5 in the coming days that is meant to take $CRYSTL to its 2.0 evolution based on DeFi 2.0 and protocol owned liquidity (POL)
- Users can expect an article diving deeper into DeFi 2.0 and POL, as well as the Governance proposal in the coming days