BIP#13: Proposal for Fee Structure of BendDAO ApeCoin Staking

Summary

All BAYC and MAYC used as collateral for obtaining loans on BendDAO are able to join the ApeCoin Staking with the BendApeStaking contract. As part of the Yuga ecosystem, all users with Yuga assets can also use the BendApeStaking service. This proposal is to propose the Fee Structure of BendDAO ApeCoin Staking.

Motivation

The launch of BendApeStaking will drive a new wave of user adoption and raise the BendDAO awareness. veBEND holders will earn more income because of the rise of lending protocol revenue.

Currently, over 500 ETH earnings have been distributed to all veBEND holders in 6 months. BendDAO daily interest income: Bend Loan Interest

Background

Flash Claim is an innovative functionality created by BendDAO dev allowing boundNFT owners (borrowers) to claim NFT airdrop/ rewards on other protocols while their NFTs are still used as collaterals. BendApeStaking is designed based on the Flash Claim.

Over 300 Otherdeeds were successfully claimed through Flash Claim with collateralized Apes.

Technical details of the BendApeStaking:

Specification

Fee Structure

NFT ApeCoin Proposed Management Fee
boundNFT holders Same as the boundNFT holders 0%
boundNFT holders Any ApeCoin holder 2% or 3% or 4%

The management fee is charged at the time of staking rewards claim, and calculated based on time since the previous claim.

The Snapshot voting will decide the final management fee percentage. The community can also propose adjusting the ratio during the 3-year ApeCoin Staking.

DAO Treasury

The DAO Treasury will collect the “management fee” which should be ApeCoin. The community can further discuss whether the fee should be swapped to stablecoin or ETH.

Next Step

The Management Fee will be set based on the community voting result.

All veBEND holders are members of BendDAO.

Voting Quorum: 51M veBEND (20% of the total supply)

Pass Rate: Over 80% Approve.

The voting will last for 3 days.

Polls

boundNFT Proposed Management Fee

  • 2%
  • 3%
  • 4%

0 voters

Based on the docs released by Horizen Labs, the proposed Fee Structure is updated.

Update of BendApeStaking Fee Structure

NFT ApeCoin Proposed Management Fee
boundNFT holders Same as the boundNFT holders 0%
boundNFT holders Any ApeCoin holder 2% or 3% or 4%

All NFT holders need to deposit NFTs in BendDAO to mint the boundNFT for the pairing because the ApeCoin holders will lose staked ApeCoin when the paired NFT is sold.

Please refer to Horizon Lab’s FAQ: Docs | ApeCoin Staking

Once the NFTs are deposited in BendDAO, the minted boundNFT will be in the holders’ wallets. The matching contract can perform an uncommit operation in advance through the interceptor at the appropriate time to withdraw all tokens and rewards from the staking contract, and return them to the ApeCoin holders. While participating in staking, users can also continue to borrow ETH from the lending pool and list NFTs for sale.

boundNFT

boundNFT is minted when the user deposited an NFT in BendDAO. For borrowers, it also can be considered as a debt NFT.

With boundNFT, users can

  • Join ApeCoin Staking pairing
  • Borrow instant ETH liquidity
  • List and sell the original NFT on BendDAO
    The NFT will automatically be uncommitted when transactions are successful.
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