2nd Audit Complete

Audit on V1.1 done, next will be on V2

After the recent Rari Fuse Pool oracle attack, we did an inventory of the current risks of Float Protocol. As part of that we are releasing a recent audit completed by CertiK. The full report can be read here:

REP-FLOAT-2022-01-09.pdf

This audit was part of a routine check up of the Protocol as an extra safety measure as auditing extra additions to the Protocol including the treasury diversification contract and the audited based multiplier pools staking contracts.

To clarify, key areas included in the audit scope as per FIP 012

• contracts/auction/*
• contracts/funds/*
• contracts/policy/*
• contracts/lib/*
• contracts/oracle/*
• contracts/tokens/*
• contracts/staking/multiplier/*

There were no Critical Findings by Certik. In regards to certain privileges over contracts, we look to move to a more decentralised system over time as Float matures but for now still follow recommended practises. With all contracts we follow industry best practice of a multi-signature account rather than an EOA; in addition for any “high-privilege” action such as upgrading a contract, or granting roles we also utilise a 48 hour timelock contract. In addition the multi-signature signers are not empowered to make any of these operations without the community commitment — the intention is to migrate to a SnapSafe style system where these multi-signature signers move to purely guardian(veto) roles and all decisions require a successful snapshot vote. This is planned to be applied via the multi-signature contract rather than an internal contract upgrade.

This is now the second audit of the Protocol with the first occurring in April 2021 which was completed by Extropy.io.

We plan to do an additional audit on V2 of the Protocol once completely developed.

2nd Audit Complete was originally published in Float Protocol on Medium, where people are continuing the conversation by highlighting and responding to this story.

Float Protocol Raises $1.2M from DeFi Leaders such as The LAO, 0xMaki and MCV to Create a Truly Decentralised, Non-Dollar Stablecoin

The Metaverse — On the 7th of February 2021 at 10pm UTC Float Protocol initiated its democratic launch. Float Protocol started with the belief that crypto needs its own denomination, a completely decentralised unit of account for the DeFi economy — #DeFiMoney. Today, Float Protocol is excited to announce that is has completed its treasury diversification round, raising $1.2M by on-boarding strategic partners such as Stani Kulechov of Aave, 0xMaki of Sushiswap, The LAO and MCV.

Why FLOAT

“Creating a decentralized & censorship resistant stablecoin is one of the most promising areas in DeFi. That’s where FLOAT comes in as a base pair and medium of exchange and I’m excited to back the team on this journey.”

— Santiago R Santos, DeFi investor

Crypto needs its own denomination. Whilst it is natural to compare things in price to the dollar (and this is why most stablecoins aim to be worth $1.00), it makes sense that if crypto is to build a new financial system, it should denominate itself in a currency of its own. Naturally, the dollar is a symbol of traditional, centralised finance. As such a new stable currency, that doesn’t try to be worth $1.00, is needed.

To this end, Float Protocol is building the decentralised monetary system of the future. At the heart of the protocol is the FLOAT token. It is designed to be the first truly native internet currency.

What makes FLOAT special

“Float Protocol answers the problems to USD inflation, crypto volatility, and regulator scrutiny of stablecoins with groundbreaking elegance and simplicity.”

— Dermot O’Riordan of Eden Block

FLOAT is one of the few stablecoins in the DeFi space that isn’t chasing a one dollar peg. The lack of peg means that FLOAT can avoid stereotypical protocol collapse scenarios, while still providing a stable value intraday. Simultaneously, users benefit from the increase in value of the underlying crypto market over the long term without having to stomach 50% ETH dips along the way. The Protocol has been live for 4 months and performed outstandingly. It launched in the worst week for ETH in 2021, seeing its ‘Basket factor’ drop to 40%. Yet, FLOAT maintained stability throughout.

FLOAT is a decentralised currency backed by Basket of solid crypto assets, enabling users to escape fiat’s great monetary inflation while achieving low-volatility. With the likes of USD pegged stablecoins at risk of regulatory repercussions alongside a monetary policy controlled by a central entity, FLOAT provides a true alternative, necessary for DeFi to maintain the decentralised element which should not be taken for granted.

Since our democratic launch, where Float Protocol targeted active and engaged DeFi participants for the distribution of BANK (our governance and utility token), we have:

• Gained 4500 BANK holders, key long term supporters and believers in the Protocol
• Launched Scattershot — Our fork of Snapshot which allows for multichoice weighted voting
• Published our Litepaper — The first interactive litepaper in the crypto space
• Achieved $1.5 Billion TVL during Phase 2 of BANK distribution via Community chosen pools
• Created one of the first incentivised G-UNI stablecoin pair pool (FLOAT-USDC low fee on Uniswap v3)

Strategic Partners

The partners participating in this treasury diversification round include the following, in alphabetical order:

• 0xMaki, from Sushiswap
• Ana Andrianova, Founder and CEO of Akropolis
• Batuhan Dasgin
• Eden Block, an early-stage blockchain and crypto venture capital firm whose mission is to back the builders of the new Open Internet.
• Re7 Capital. Re7 provides strategic liquidity into DeFi to shape the financial ecosystem of tomorrow.
• Freddie Farmer, Yield Farming at Birth, ex-Wintermute
• Ivailo Jordanov (7percent Ventures)
• Katya, Angel Investor, partner at P2P Capital, been focusing on supporting core blockchain infrastructure for the last 5 years. Formerly finance professional in the energy sector.
• The LAO, a DAO supporting the blockchain ecosystem
• Lyuben Belov, Founding partner at Launchub Ventures
• MCV, a for-profit DAO that invests into early-stage Decentralized Applications
• Santiago R Santos, DeFi Investor
• Sergei Chan (BlockScience)
• Stani Kulechov, Founder and CEO of Aave
• Sunil Srivatsa, Founder and CEO of Saddle Finance

From the beginning, ever since Float Protocol’s democratic launch, one of the main aims of the Protocol has been to get supporters for the long haul. These key DeFi participants and builders shall be advocates, advisors, strategic partners and resilient supporters of the Protocol over the long term.

Float Protocol on Twitter: "🧙 + ⚒ + 👷 + 🧚 = 🏙 ☮These strategic partners have been chosen for numerous reasons, namely, their experience in the crypto ecosystem and their rare expertise in building high-calibre platforms for web3. / Twitter"

🧙 + ⚒ + 👷 + 🧚 = 🏙 ☮These strategic partners have been chosen for numerous reasons, namely, their experience in the crypto ecosystem and their rare expertise in building high-calibre platforms for web3.

The diversification of the treasury will aid with potential integrations further down the line and allow the Protocol to hire and incentivise Community members as we grow towards becoming the unit of account of the crypto economy. The treasury diversification was completed on-chain via a smart contract, where strategic partners exchanged ETH for BANK, Float Protocol’s utility and governance token.

What is Next?

“The Float team is among the most skilled devs (doxxed or anon) I have been in contact with so it is a pleasure to support them and participate in their long term vision”

— 0xMaki

Our goal is to become DeFi money, the asset you cannot avoid, a decentralised floating currency for the crypto economy. We believe this is possible and we will do it regardless of the barriers along the way. To help us get there we are planning on spreading the word about FLOAT as much as possible and buidling with the Community — this includes:

Scaling and Spreading the Word — With links via Float Protocol’s new Strategic Partners the Protocol can look to make connections and place FLOAT in places which were unreachable previously. This includes various lending platforms and FLOAT as a payment method for various digital goods. FLOAT primes itself as the “perfect collateral” being less volatile than ETH while still being capital efficient.

Contribute & Hiring — We are looking for world class talent to buidl DeFi Money. If you’ve read this far and are keen to get involved, get in touch via Discord or Telegram!

Final Remarks

This treasury diversification marks just yet another milestone of the many seen so far in Float Protocol’s unique journey.

About Float Protocol

Float Protocol is building the decentralised monetary system of the future. At the heart of the protocol is the FLOAT token, an un-pegged stablecoin for the crypto economy. It is designed to be the first truly native internet currency, fully satisfying all three major properties of money: as a medium of exchange, a store of value and a unit of account. The Float Protocol community and the number of contributors are growing, join the discord and get involved here.

Links

Website: https://floatprotocol.com/

Backup site: https://ipfs.io/ipns/floatprotocol.eth/#/pools

Litepaper: https://observablehq.com/collection/@floatcoder/float-protocol-litepaper

Medium: https://medium.com/@floatprotocol

Telegram: https://t.me/officialfloatprotocol

Telegram (中文): https://t.me/floatprotocolCHN

Analytics: https://duneanalytics.com/Float/Float-Protocol

Docs: https://docs-float.gitbook.io/docs/

Github: https://github.com/FloatProtocol/

Twitter: https://twitter.com/FloatProtocol

Forum: https://forum.floatprotocol.com/

Governance: https://snapshot.org/#/snapshot.floatprotocol.eth

Float Protocol Raises $1.2M was originally published in Float Protocol on Medium, where people are continuing the conversation by highlighting and responding to this story.

Quick Maths — Update on the Multiplier Pools

• 5 weeks since the start of the new multiplier pools
• Over $18M total value locked up
• $500k given out in rewards
• Number of exits ≤10 per pool

Hey hey, looks like a new crypto cycle is upon us in the name of NFTs. Crypto never ceases to amaze and as such it is important to keep an open mind when exploring. Similarly at Float Protocol, we thought it important to keep an open mind with our BANK distribution pools. Standard staking pools are great, but we felt that they were in need of a bit of refresh. Just over 5 weeks have passed since we launched our first multiplier pools, read on below as we give a summary on how they have performed. 👇

Multiplier what?

For those just joining — what are the multiplier pools we hear you ask? The new multiplier pools were voted in via governance as a new alternative to the standard pools used to distribute BANK previously. They enable a way to not only reward liquidity providers but also those that are willing to provide liquidity and stake their tokens for the long term. The multiplier pools work in a similar manner to the standard staking pools with the additional feature that a multiplier is applied to staked deposits and that multiplier automatically increases the longer those deposits are staked. The multipliers for the pools are as follows:

For the BANK-ETH sLP, FLOAT-ETH sLP and G-UNI USDC/FLOAT LP pools:

• 1x by default
• 1.25x at 8 days
• 1.5x at 16 days
• 1.75x at 24 days
• 2x at 32 days
• 2.25x at 40 days
• 2.5x at 48 days
• 3x at 60 days

> For example: If you were to stake $1.00 worth of G-UNI USDC/FLOAT LP in the G-UNI USDC/FLOAT LP pool, after 8 days staked it would be treated as $1.25 dollars staked, after 16 days $1.75 dollars staked and so on. You are free to withdraw at any time without an unlock/lock period.

For the BANK only pool:

• 1.3x multiplier for 60 days
• 2x multiplier for 90 days

N.B. There is a 30-day minimum lock on deposits in the BANK-only pool.

> For example: If you were to stake $1.00 worth of BANK in the BANK-only pool you would have to wait for 30 days unlocking period if you request to withdraw your stake. If you stake for 60 days continuously without requesting to withdraw your $1.00 is treated as $1.30 in the rewards pool, for 90 days it is treated as $2.00 in the rewards pool.

Performance

So hopefully you get the gist of the mechanics. What has happened? In summary, it looks like those who have staked in all the distribution pools are in it for the long term. In total, $18.2M was staked across all four of the BANK distribution pools and $508k USD worth in BANK rewards (using the average BANK price) was given out over the 5 weeks since their inception (from 1st of August to the 5th of September). This means that over 5 weeks, the pools achieved an average TVL/reward ratio of 36, i.e. 36 dollars locked for each one dollar worth of BANK distributed.

The greatest number of Exit calls we have had from an individual pool is 10 — that is the G-UNI USDC/FLOAT pool. An Exit is when someone withdraws their entire stake and simultaneously claims their BANK rewards. The number of Exit calls don’t show much trend of increasing either, but are skewed towards the later stages of the measured time period. This confirms that the pools are enticing the majority of stakers to provide liquidity for the long term. If we look at the numbers as a whole in terms of all the methods called on the contract i.e. Stake, Withdraw, getRewards, Exit for the G-UNI USDC/FLOAT pool we see how adhesive these multiplier pools truly are.

The number of Exit called are approximately 15% of all Method calls since the pool launch and Stake calls dominates the Methods with over 70% in the 5-week time frame investigated, another confirmation that the multiplier incentives are working. How does this compare to other pools in DeFi? Nansen.ai recently looked at a series of standard staking contracts across DeFi and found that 50% of farmers exited the contracts within 15 days of farming and almost an additional third leaving after 25 days. This means that the new multiplier pools are outperforming some ‘of the most forked contracts in DeFi’ in terms of locking up liquidity. This is still the case if one were to include the Withdrawal calls with the Exit calls. The reason for the focus on the G-UNI USDC/FLOAT is because this is a fairly unique token pairing relying on our integration with Gelato and one of the first incentivised low-fee Uniswap v3 pools. For users to get involved in this pool they would have to go to Sorbet.finance stake FLOAT-USDC in return for G-UNI tokens which one can then stake for BANK rewards on Float Protocol. The performance of the other LP pools (BANK-ETH and FLOAT-ETH) performed similarly albeit a bit better with just 9 exits from each pool over the investigated time period.

BANK Pool

Looking at the BANK pool, we see similar metrics. The number of Exit calls (3) are negligible compared to the number of Stake calls, as one would expect given the minimum 30-day lock on BANK deposits. However, after the 30-day lock period ended we did not see a mass exodus of stakers as often seen in traditional staking contracts with locks. This can be explained by the addition of the multiplier effect on staked deposits. Additionally, those who are often in relatively lower APY pools are often more concerned with accumulating a particular token for a longer term play rather than farming just for short term rewards. These characteristics have lead to $3.6M worth of BANK locked leading to a TVL to reward ratio of 151 over the initial 5 weeks of distribution.

Conclusion

The multiplier pools are very efficient at locking up liquidity of various types while still rewarding long term stakers— the numbers and the blockchain do not lie. With features like these observed one would expect these multiplier pools to gain more prominence across DeFi with a bid to reward more longer term staking of liquidity. There are also other methods of obtaining liquidity such as those through bonding mechanics which have gained traction recently. Looking forward, various combinations of multiplier pools with alternative methods could pave the way to take rewarding LPers in DeFi to the next level.

Links

Website: https://floatprotocol.com/

Backup site: https://ipfs.io/ipns/floatprotocol.eth/#/pools

Litepaper: https://observablehq.com/collection/@floatcoder/float-protocol-litepaper

Medium: https://medium.com/@floatprotocol

Discord: https://discord.gg/nVCZacJJqM

Telegram: https://t.me/officialfloatprotocol

Telegram (中文): https://t.me/floatprotocolCHN

Analytics: https://duneanalytics.com/Float/Float-Protocol

Docs: https://docs-float.gitbook.io/docs/

Github: https://github.com/FloatProtocol/

Twitter: https://twitter.com/FloatProtocol

Forum: https://forum.floatprotocol.com/

Governance: https://snapshot.org/#/snapshot.floatprotocol.eth

Nota Bene:

Data for study was collected on the 5th of September 2021

Quick Maths — Update on the Multiplier Pools was originally published in Float Protocol on Medium, where people are continuing the conversation by highlighting and responding to this story.

[Weekly Wrap up] — What is going on at Float Protocol

TLDR

• Treasury diversifying
• Pool Party with OHM
• New pools (incl. FLOAT-USDC)

It’s been an interesting few weeks in crypto. Whispers of stablecoin regulation and markets are moving but at FLOAT we have continued to build and spread the word. Read on below to catch up on what has been going on a Float Protocol.

Treasury Diversification

The treasury diversification is well underway. This was voted on by the Float Protocol DAO as we have looked to get more and more strategic partners into the Float ecosystem to aid with the Protocol’s growth. You can catch up on the snapshot vote results here — those who voted, don’t forget to claim your POAP. Just the last few partners to come through before this initial treasury diversification comes to a close and we can release a more formal announcement.

The diversification will be important moving forward as the Protocol allocate funds without additional price pressure on BANK. We look to onboarding developers and community members rapidly in a more formal manner as we show the world how great FLOAT is 🔥. If you are interested, reach out via telegram or discord — please let us know what you would like to work on at Float Protocol.

Pool Party

Paul and John with fellow yellow-submariners, FLOATers and BANKsters went to a little pool party. Olympus DAO is looking at expanding their Rari Fuse Pool Party and had a community call with Float Protocol alongside Rari Capital, Fei Labs, Alchemix and Reflexer. Just a quick summary of the call: intro to Rari Fuse, what makes it different from Compound, FEI’s and Reflexer’s experience so far with Rari Fuse, mechanisms of Float and what makes it special, some alpha leaks 👀, challenges in DeFi including pool2 incentivisation and inter-DAO governance. It was great to hop on the call with the Ohmies. To catch up on the full monty, the link to the Community call is here.

Keep your eyes peeled for a proposal on Rari Fuse as we prepare for the first lending and borrowing of FLOAT and BANK.

Phase 4 (III) is a go

Phase 4 (III) — What you need to know

Starting on the 1st of August, Phase 4 (III) began. We released an exciting set of new distribution pools including multipliers on staked deposits, and an incentivised Uniswap v3 low fee FLOAT-USDC using Gelato. This should really aid with onboarding new users into the Float ecosystem as people start to explore alternatives to traditional stablecoins. You can explore the new BANK distribution pools at https://floatprotocol.com/#/pools. So far we have already seen over $4.4 million total value locked in the G-UNI USDC/FLOAT pool. It is possible to add FLOAT + USDC liquidity on Zerion or Sorbet for G-UNI. Plus, FLOAT is now verified on Zerion ✅.

until next time, Keep floating.

[Weekly Wrap up] — What is going on at Float Protocol was originally published in Float Protocol on Medium, where people are continuing the conversation by highlighting and responding to this story.

Phase 4 (III) — What you need to know

In short:

1. New pools, New rules
2. Multipliers applied to staked deposits, no 8 day unlock
3. Incl. FLOAT-USDC (Uniswap v3 + Gelato, low fee)
4. New BANK-only pool

Phase 4 has been a great success, we have seen over 50% of BANK locked in the Genesis pool and, almost all the $FLOAT locked up accruing rewards in the FLOAT-ETH sLP pool and the FLOAT-only pool. As the overall market has its turns we thought it best to reflect at the end of Phase 4 (II) and rethink the next batch of rewards going forward. The Float Protocol DAO engaged in fantastic discussion on the Forum and on the Discord which has led to this next batch of reward pools as the 4th Phase of BANK distribution is continued.

The Float Protocol DAO voted for the following distribution of BANK as we continue Phase 4 distribution, starting on the 1st of August 10pm UTC:

• 200 BANK per week to BANK-ETH sLP
• 400 BANK per week to FLOAT-ETH sLP
• 200 BANK per week to FLOAT-USDC LP (Uniswap v3 + Gelato, low fee)

The following multipliers shall be applied to deposits staked for a given amount of time in the pools listed above:

• 1x by default
• 1.25x at 8 days
• 1.5x at 16 days
• 1.75x at 24 days
• 2x at 32 days
• 2.25x at 40 days
• 2.5x at 48 days
• 3x at 60 days

For example: If you were to stake $1.00 worth of FLOAT-USDC LP in the FLOAT-USDC LP reward pool, after 8 days staked it would be treated as $1.25 dollars staked, after 16 days $1.75 dollars staked and so on. You are free to withdraw at any time without a unlock/lock period.

There will also be a BANK-only pool with the following distribution, locks and multipliers applied to staked deposits:

• 40 BANK per week to BANK-only pool
• 30 days minimum lock up on deposit
• 1.3x multiplier for 60 days
• 2x multiplier for 90 days

For example: If you were to stake $1.00 worth of BANK in the BANK-only reward pool you would have to wait for a 30 day unlocking period if you request to withdraw your stake. If you stake for 60 days continuously without requesting to withdraw your $1.00 is treated as $1.30 in the rewards pool, for 90 days it is treated as $2.00 in the rewards pool.

**N.B. These will be new staking pools to the current ones, therefore if you are a member of the current BANK-ETH sLP or FLOAT-ETH sLP pool you will have to unstake and restake to participate in Phase 4 (III). These new pool multipliers are an unaudited additional experimental feature to the standard reward pools; they are heavily based on the audited Ampleforth’s Token Geyser contracts.**

This should allow for the continued incentivisation of liquidity providers and provide a way to onramp new users into the FLOAT ecosystem while maintaining steady and organic growth of Float Protocol.

Keep floating.

Phase 4 (III) — What you need to know was originally published in Float Protocol on Medium, where people are continuing the conversation by highlighting and responding to this story.

Update on Phase 4 (III)

Hey, just giving an update on where we are at with the Phase 4 (III) pools. Read on for details of the pools and the current status below👇.

The Float Protocol DAO engaged in fantastic discussion on the Forum and on the Discord and eventually voted on the following distribution of BANK to continue Phase 4. The plan being, this should allow for the continued incentivisation of liquidity providers and provide a way to onramp new users into the FLOAT ecosystem while maintaining steady and organic growth of Float Protocol:

• 200 BANK per week to BANK-ETH sLP
• 400 BANK per week to FLOAT-ETH sLP
• 200 BANK per week to FLOAT-USDC LP (Uniswap v3 + Gelato)

The following multipliers shall be applied to deposits staked for a given amount of time in the pools listed above:

• 1x by default
• 1.25x at 8 days
• 1.5x at 16 days
• 1.75x at 24 days
• 2x at 32 days
• 2.25x at 40 days
• 2.5x at 48 days
• 3x at 60 days

For example: If you were to stake $1.00 worth of FLOAT-USDC LP in the FLOAT-USDC LP reward pool, after 8 days staked it would be treated as $1.25 dollars staked, after 16 days $1.75 dollars staked and so on. You are free to withdraw at any time without an unlock/lock period.

A BANK-only pool with the following distribution, locks and multipliers applied to staked deposits:

• 40 BANK per week to BANK-only pool
• 30 days minimum lock up on deposit
• 1.3x multiplier for 60 days
• 2x multiplier for 90 days

For example: If you were to stake $1.00 worth of BANK in the BANK-only reward pool you would have to wait for 30 days unlocking period if you request to withdraw your stake. If you stake for 60 days continuously without requesting to withdraw your $1.00 is treated as $1.30 in the rewards pool, for 90 days it is treated as $2.00 in the rewards pool.

**N.B. These new pools with multipliers on staked deposits are an additional experimental feature to the standard reward pools.**

Following on from that, the multiplier contracts are essentially a blend of Ampleforth’s token geyser v2, Alchemist crucible and Float Protocol’s original staking contracts. It is one thing to pinch code but, it is important to test it. To be on the safe side, the dev team are testing the new contracts with additional test cases, the contracts need to pass these tests before letting them out into the wild. Additionally, the multiplier feature is fairly new and it is important that it is reflected correctly in the UI to BANKsters and FLOATers alike so they are completely aware in a clear manner of the juicy rewards that they are getting. As we all know, UI/UX isn’t great on average across DeFi, and for these pools we feel it is very important that it is gotten right the first time.

One of the most awaited pools include the FLOAT-USDC (Uniswap v3 + Gelato) pool. This isn’t your typical LP, but in fact it is a wrapped G-UNI token — linked here. We met up with our friends at Gelato and thought an integration with them would be perfect for this pool. Now the Protocol can incentivise a specific range making it a decent one to 🦍. into. It is a little bit of a complicated process, but we have high hopes for this pool and look forward to on-boarding new people into the FLOAT ecosystem, while providing an additional arbitrage opportunity at the same time.

The dev team are working hard on the reward pools and plan to implement them as swiftly and safely as possible given the timeline as discussed already on the Discord. In the meantime for those of you keeping an eye on the FLOAT-multisig wallets, the treasury diversification has been well underway this weekend. This is great news as it will enable the core team and Community to keep building for the long term and get FLOAT into a DeFi wallet near you — #DeFiMoney. It appears BANK gained some additional popularity this week — potentially benefiting from the lack of rewards in the week just past as we have prepared for Phase 4 (III). Later this week we have a call lined up with the Ohmies and Rari about a potential collaboration on their Fuse Pool Party.

Keep floating

Update on Phase 4 (III) was originally published in Float Protocol on Medium, where people are continuing the conversation by highlighting and responding to this story.

TLDR

• Basket Bags vote passed
• Treasury Diversification vote
• New pools vote
• FLOAT at target as rewards are paused for a bit

There has been a lot going on at Float Protocol since the last roundup came out. The Community has been so active on the Forum which is great to see, discussing the new FLOAT pools and treasury diversification, read on for more below 👇.

Putting the Basket to Work

We finished off the last weekly roundup with discussion of Utilising the Basket and moving to a snapshot vote, [FIP-008] Put the Basket to work. For those who missed it, this proposal started as an idea where we realised that we have all of this ETH sitting around in the Basket, why not put it to work. This would increase the Basket factor more quickly and thus the sooner BANK burns ensue 🔥. By using the weighted voting feature of Snapshot (which we created on Scattershot first by the way 😉) the Community had the ability to perform the act of a true Portfolio manager, allocating their votes to the corresponding asset allocation of ETH pegged yielding asset of their choice to include in the Basket. The vote results are through, here is how it turned out.

As stated by the original proposal:

The initial allocation of ETH pegged yield earning assets we believe should be no more than 25% of the total Basket… Any option with a greater than 5% total allocation (20% vote share) will be added.

Therefore Convex — Curve stETH-ETH LP and LIDO stETH will be added to the Basket at an overall allocation of 12.6% and 12.4% respectively. This will utilise the new Basket Bags feature which is currently in development.

Treasury Diversification Vote Passed

Those of you close to the crypto pulse may have heard of a few treasury diversifications occurring, namely Lido and most recently Sushi. The latter caught crypto twitter (CT) by storm and led to everyone chipping in their 2 pence on the right thing to do. Healthy discourse is greatly encouraged at Float Protocol and it was great to see this discourse on the upcoming BANK distribution pools (more on this later). But, there was also great chatter on the Forum regarding [FIP 006] — Treasury Diversification. The Community seemed in favour of treasury diversification — part of the process is to onboard strategic partners into the FLOAT ecosystem who shall be prominent supporters of the Protocol over the long term. The vote on Snapshot had a clear winner with over 120 voters participating. This was also one of the first votes where we launched a voter POAP claimable by all addresses which voted on the Proposal.

New Pools Vote

Float Protocol’s BANK distribution continued to tick on as we distributed more and more BANK to the Community. Phase 4 (II) has come to a close, and it was thought best to take some time to reflect and rethink the distribution mechanics especially given the overall crypto market. This was first initiated on the #governance channel on the discord, where there appeared to be appetite to slow down the distribution of BANK and shake things up regarding the pools. The idea being, what do we want FLOAT to be — the money of DeFi. The initial proposal started with the core team leaning towards the following setup: BANK-ETH (with dual rewards, Sushi), FLOAT-ETH and FLOAT-FRAX via Uniswap v3. However, many Community members stated that they would be more inclined to see a FLOAT-USDC pool if we were to have a FLOAT-usd pool at this stage to maximise the attraction to onboard new users into the Protocol. As such the Proposal was adjusted and proceeded to Snapshot vote (voters can claim a POAP for this one too). A summary of the outcome is as follows:

The next set of BANK distribution for 4 weeks will consist of:

• 200 BANK per week to BANK-ETH sLP
• 400 BANK per week to FLOAT-ETH sLP
• 200 BANK per week to FLOAT-USDC LP (Uniswap v3 + Low fee)
• 40 BANK per week to BANK-Only pool

All the pools will have multipliers applied to staked deposits the longer they are left in the pool therefore, incentivising long term liquidity provision and rewarding those who do so. Moreover, the BANK-only pool will have a minimum lock up of 30 days, rewarding long term supporters of the Protocol. Due to dev time required for the extra multiplier feature there may be a delay in rewards starting straight after Phase 4 (II). For further details please see the official Snapshot vote.

Funnily enough, amid all the riveting discussion on the next set of rewards FLOAT continued to do its thing. Even though rewards have been paused on the current pools until the new ones come into effect, the latest being the 25th of July 10pm UTC; FLOAT has returned to target price. This once again demonstrates how robust the system is and how much the Community believes in FLOAT 😎.

Coming up

Just a brief summary on what to expect over the coming weeks:

• Splash page release (we know, it’s long overdue)
• New Phase 4 (III) pools
• Treasury Diversification Swap
• Vote on Treasury multisig signers

Until next time.

Keep $floating

Socials

Website: https://floatprotocol.com/

Backup site: https://ipfs.io/ipns/floatprotocol.eth/#/pools

Litepaper: https://observablehq.com/collection/@floatcoder/float-protocol-litepaper

Medium: https://medium.com/@floatprotocol

Discord: https://discord.gg/nVCZacJJqM

Telegram: https://t.me/officialfloatprotocol

Telegram (中文): https://t.me/floatprotocolCHN

Analytics: https://duneanalytics.com/Float/Float-Protocol

Docs: https://docs-float.gitbook.io/docs/

Github: https://github.com/FloatProtocol/

Twitter: https://twitter.com/FloatProtocol

Forum: https://forum.floatprotocol.com/

Governance: https://scattershot.page/#/snapshot.floatprotocol.eth

[Weekly Wrap up] What is going on at Float Protocol was originally published in Float Protocol on Medium, where people are continuing the conversation by highlighting and responding to this story.

TLDR

• Finalising the Treasury diversification
• Move to Scattershot vote for ETH Pegged yielding assets in Basket
• Splash page is ready to deploy
• Template code released for arbitrage bot

Shakedowns & BUIDL
There’s been a shakedown in the gulf. Those working on the Protocol are no strangers to a (mini) bear. Heads down and time to build. Read on below for an update on what has been going on at Float.

FLOAT Performance

FLOAT has continued to show itself as a less volatile version of ETH. Moreover, it is also showing how one can protect against downside in the current market situation.

For instance, while FLOAT tracks the value of its “Basket” due to excess demand we’ve managed to prevent several reductions in target price.

The number of BANKsters and long term believers in the Protocol continue to grow day by day. BANKsters are so important to the Protocol over the long term. There has been a movement to support BANK on the Forum via the introduction of a bonding mechanism. This could include giving BANK-ETH LP tokens to the Protocol in exchange for FLOAT vested over some period (e.g. 8 days). Such implementation could be an efficient way to bootstrap liquidity alongside the BANK-ETH LP tokens providing an extra source of revenue for the Protocol other than the Auctions. This extra revenue could be added to the Basket Factor and thus a Factor of 100% is reached sooner rather than later, leading to BANK burns.

Following on from that, the smart contract for the treasury diversification swap is due to be deployed over the next few days. It is exciting to onboard strategic partners as Float Protocol grows steadily and organically. The interest has been high in participating in the treasury diversification, leading to major oversubscription. At 16,800 tokens, there isn’t enough BANK to go around. There have been great conversations so far on the Forum and we look forward to more engagement and discussion.

As part of our efforts to make FLOAT & BANK easier to understand; our new splash page has been built — just awaiting the final custom icons. This should be deployed in the coming week 🙂. Alongside, the Dutch Auctions have been doing their bit accruing ETH, and some have been having a field day participating as arbitrageurs. To aid those new to botting there is now a bot template on the Float Protocol Github account to those interested in learning more about bots and arbitrage. On the roadmap in terms of automated Protocol interaction include dollar cost averaging into FLOAT. In the meantime discussion is encouraged on the Forum for ideas posted including:

• Utilising the Basket — Flash Loans + Basket Diversification
• Auction Price Buffer Alteration
• Float on Layer 2s
• Supporting BANK (Bonds)
• FLOAT-USD on Uniswap V3

A topic that is starting to garner lots of attention is Utilising the Basket. This could include adding staked ETH to the Basket as a revenue generation method for the Protocol. To make the process swift as possible there has been some development activity on implementing “Bags” for the Basket, which are essentially a blend of yearn vaults / strategies allowing any arbitrary token to be stored as long as it has a clear ETH value. The core team look to put up a vote on ScatterShot to decide the Community’s allocation of different ETH pegged yielding assets in the Basket.

[Weekly Wrap up] What is going on at Float Protocol was originally published in Float Protocol on Medium, where people are continuing the conversation by highlighting and responding to this story.

TLDR

• Utilising the Basket with Flash Loans & 1:1 ETH earning assets
• Auction Price Buffer Alteration
• Spreading FLOAT to other L1 / L2s
• Paul talks about DAOs in Crypto: Tel Aviv
• Treasury Diversification & Reaching out to builders in the space
• Making FLOAT more approachable (New Splash Page & Dev Docs)
• Iron doesn’t $FLOAT — an educational piece on bank runs

Hey 👋 from Paul and John at Float Protocol. It has been an interesting fortnight, both behind the scenes and out in the wild of DeFi. If you want to get updated on what has been going on and a few sneak peaks into the future, carry on reading👇.

It has been a tough week in the crypto markets, it has also been a tough week for some “stablecoins” out there 👀 but, the team at Float Protocol keeps building. To kickstart the discussion the team has put up some proposals on the Forum on ideas for the next versions of the Protocol. Active discussion and engagement from the Community is encouraged. The ideas proposed include:

• Utilising the Basket — Flash Loans + Basket Diversification
• Auction Price Buffer Alteration
• Float on Layer 2s

Utilising the basket is getting a lot of the attention; understandably so as the Basket has accrued 970 ETH since the 15th of May — the Dutch Auctions doing their bit. It has also been great to see proposals from the Community at the same time 👍.

Over the course of the week, Paul and John have been talking to key builders and members of the DeFi space about diversifying our treasury and integrations down the line. We’ve been having great having conversations, with over 30 key leaders in the space, many of who believe in a crypto-native unit of account and are willing to support Float Protocol on its journey.

Paul recently featured on a Panel about DAOs and the future of governance at Crypto Tel Aviv alongside Jack du Rose from Colony, Jack Laing from Pocket Network and tracheopteryx a contributor at Yearn & Coordinape. You can read between the lines to see what the next steps for governance might be (Gnosis SnapSafe + Coordinape for community incentives).

Our site has seen some major upgrades recently, we’ve had the addition of the Genesis page and the UI for the Dutch Auctions. As Float Protocol grows and embraces new users it is time to have a way that people can grasp what the Protocol is about without having to read a ton of medium posts or the Litepaper. To achieve this we have been working on a splash page. The designs are done and we are building it out as we speak. Here is a sneak peak below:

Elsewhere in Crypto

We saw a metallic Protocol undergo catastrophic failure. We also witnessed Scotland’s original whiskey get poured down the drain. This is why at Float Protocol we believe in steady organic growth over the long-term and buidling with the Community. We believe it is in this way “wagmi”, to paraphrase Mark Cuban. Summed up by John:

John L | Float on Twitter: "iron doesn't $float / Twitter"

iron doesn't $float

All jokes aside we did a thorough thread on bank runs and how the Protocol resists them:

Float Protocol on Twitter: "1/ Let's talk about bank runs👇 pic.twitter.com/CHk93Px3Ip / Twitter"

1/ Let's talk about bank runs👇 pic.twitter.com/CHk93Px3Ip

Coming up at Float

We plan to publish the new splash page, so keep your eyes peeled and get ready to share with your friends. To make things even easier for the Dutch Auctions, ZapIn/ZapOut functionality is also on the roadmap, meaning you won’t need to use FLOAT or WETH (and BANK) to interact with the Auction House, the code will take care of that for you, converting your token to the required one. Alongside that, it is time we flesh out the docs, adding more information for developers regarding the contracts, the UI and tips on how to build a bot to arb our Dutch Auctions. We’ve seen so many profit opportunities that people just aren’t taking. However, the price of FLOAT continually gets corrected to the target like clockwork.

Over and out from Major John, until next time.

keep $FLOATing ✌,

John L

[Weekly Wrap Up] What’s Going on at Float Protocol? was originally published in Float Protocol on Medium, where people are continuing the conversation by highlighting and responding to this story.

Extending Phase 4 Rewards — What you need to know

In short:

1. Same pools, same rules
2. No need to unstake or restake to continue participating
3. New rewards

Phase 4 has been a great success, we have seen over 50% of BANK locked in the Genesis pool and, almost all the $FLOAT locked up accruing rewards in the FLOAT-ETH sLP pool and the FLOAT-only pool. As these first initial weeks of Phase 4 draw to a close, the core team prepared a proposal for liquidity incentives for the next four to five weeks weeks which was voted in favour by the community.

The rewards are as follows:

For 5 weeks starting 13th of June 2021 10pm UTC, ending 18th of July 2021:

• 320 BANK per week to Genesis BANK-only
• 320 BANK per week to BANK-ETH sLP

For 4 weeks starting 13th of June 2021 10pm UTC, ending 11th of July 2021:

• 960 BANK per week to FLOAT-ETH sLP
• 80 BANK per week to FLOAT-only

As an example, the current APY for the FLOAT-only pool is ~66%. These changes would result in an APY of ~46% for the FLOAT-only pool if the total amount staked remains constant. Similarly, if BANK and the market recovers to the previous 2-month average BANK price ($448), the Genesis BANK-only pool APY could be at ~100%, with the proposed rewards and no change in the amount staked. So far the reward incentives have turned out to be fairly lucrative to stakers. We hope that we can continue to grow at an organic and sustainable pace while still rewarding those who support us along our journey over the long term.

What does this mean for you? The pools aren’t changing, so there is no need to unstake and restake to continue participating in the reward pools. The 8-day lock still applies when requesting to withdraw from any of the pools. One may not enter the Genesis BANK-only pool, as the Genesis Period has passed.

We plan to continue rewarding stakers with BANK and slowly reduce the distribution as we obtain more integrations and diversify our treasury 👀.

Keep $floating.

Extending Phase 4 Rewards — What you need to know was originally published in Float Protocol on Medium, where people are continuing the conversation by highlighting and responding to this story.