Dany and WAGMI will make Kava a top performer chain like he did with avax and ftm, i will vote yes.
1 Like
Worst proposal ever.
WAGMI needs to be on high value, high volume large scale TVL chains. They need to target ones that will improve the protocol and make the product into something that is a premium offering for chains.
When protocols end up on every EVM chain it devalues them as there is no bar set.
Further the pathetic wording of they will get $2m at $0.01 and only have to lock $2m of value at current prices indicates a predisposition to already dumping any excess profit.
If there is to be an exchange which is highly questionable as to what the value would add, then it must be equal at the time of execution with no selling or anything allowed.
1 Like
I support the proposal. However, I don’t get the reason for the proposed discount/premium as well. Why not just purchasing WAGMI/KAVA at the market price?
I have listened to the community space, and I am still not sure of KAVA. What makes this different from using DOT/ Moonbeam or any other obscure chain?
I am not a fan of Kava (yet). But I think it makes sense to work together. I support the proposal.
4 Likes
Thank you for presenting the proposal for a strategic partnership between WAGMI DAO and Kava. After reviewing the details, I have a few concerns that need to be addressed before I can fully support this initiative:
1. Choice of chain
I have three main concerns around the choice of chain and @burstingbagel made several good points which I’ve taken on board here.
- Ecosystem: The current Kava ecosystem may not offer adequate integration opportunities, especially in terms of composability. This limitation could restrict WAGMI’s overall growth and potential.
- GMI yields: WAGMI’s GMI relies on high trading volumes for its success. If the choice of Kava as the chain and the paired token discourages active trading, it poses a significant risk to GMI yields and the protocol’s broader success.
- Better alternatives: There are more established chains with higher TVL and user activity which might serve as better platforms for WAGMI’s initial launch.
2. Token swap terms
Whichever chain launch happens on, the current token swap terms are, in my opinion, unacceptable. @burstingbagel and @Immutablelawyer have already addressed some of these. I have two main concerns around this:
- Imbalance in discount rates: The proposed terms seem to heavily favor Kava. WAGMI would be effectively paying a 15% premium for KAVA tokens, while Kava receives a 50% discount on WAGMI tokens. This imbalance raises questions about the fairness of the deal and the rationale behind WAGMI offering such favorable terms.
- Poor negotiating position for future: Offering a significant discount on WAGMI puts the DAO in a weak position for negotiating future deals. Such a large discount could set a bad precedent. Importantly, we should note what a strong position we are in as evidenced by the number of chains preparing competing proposals. We should not sell ourselves short at such an early stage.
I propose three potential modifications to the current proposal that would address some of these weaknesses:
- Market prices for token swap: Instead of some pre-agreed price, we could execute the token swap at market prices determined at a specific time or block number, this removes any uncertainty around token price whilst the deal is being moved through governance. This modification is less desirable than the two following options but is an improvement on the current proposal.
- Single-sided token swap: Instead of the initially proposed two-way token swap, a one-way swap could be considered. In this scenario, Kava would provide KAVA tokens to WAGMI DAO, allowing WAGMI to deploy liquidity on their chain. This modification ensures WAGMI receives deep liquidity without any additional cost. For Kava, the benefit would be integrating a notable project onto their platform, increasing TVL and activity.
- WAGMI LP bond: As @burstingbagel suggested, a grassroots approach could be taken where a GMI bond for WAGMI LP is offered, allowing the community to contribute to protocol owned liquidity and benefit from discounts on bonds. This approach offers a fairer, more sustainable method of generating POL.
Although I have doubts about deploying on Kava, having recently listened to Dani on Twitter Spaces, I have a deep respect for his insights and the proven track record. His perspective on Kava was persuasive. I am also aware that other chains will be presenting proposals and I would like to see them before making judgment. However, despite this, the proposed token swap terms need reconsideration.
3 Likes
We’re at that point where new winners emerge while last cycle’s frontrunners wane. Kava just recently got the stamp of approval from Tether & Quickswap/Polygon, they have the highest APYs on Curve due to their partnership, trading fees on their new Defi Hub - Kinetix - are lower than GMX. The chain is easily accessible now and even has non jeeted memes. I think it’s in a good spot for when the market turns and I think Sesta feels the same which is why it’s proposal number 1.
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I would agree if they weren’t making big strides but they really leveled up recently.
Some people are really sleeping on Kava. I support the proposal because they are the best chain to support arbitrage flows. Kava is focused on the integration of native assets with CEXs.
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I think it’s based on the price when the deal was first reached a few months ago.
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According to DeFiLlama, Kava is ranked #12 protocol in total TVL. It’s a good beginning partner in DeFi. More partnerships are sure to come later.
They also don’t dump tokens invested in them from previous deals of this type.
The deal could be really mutually beneficial.
6 Likes
I’m generally in favour of this proposal
According to DefiLlama Kava are the 8th largest chain by number of protocols deployed (124 currently) and this appears to be growing quickly
Access to the Cosmos based tokens could be attractive (Atom is already enabled on the EVM), not sure what other Cosmos based tokens
Native USDT deployed on the Kava EVM is also an important aspect - Only Ethereum, Solana, Tezos and Avalanche have more USDT issued by Tether
Access to native assets it vital, it’s becoming cleat that externally bridged assets are inherently risky
I like the proposal, perhaps re-negotiate the price based on the latest Kava token price (currently $0.62 and not $0.69)
Get this deal done and deploy ASAP, nothing to stop us negotiating deals with one or more other chains but stopping now to see what other chains will offer is just going to cause delays and drag things out for several extra months
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I think it’s a good thing people haven’t heard as much about Kava as other chains. The idea to launch on a more well known chain right now isn’t much different than saying we should launch on Neo or EOS instead of Fantom and Avalanche last cycle before their big run.
Launch GMI on Kava and fully utilized their onchain usage backed 750M USD warchest to drive our treasury Further
I don’t think enough people know about that. If the proposal passes WAGMI would get a piece of that based on the usage.
The upside is large since we’re probably near the bottom of the Bear. All it takes is delivering the goods and giving it a big push.
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The top 100 protocols will receive pro-rata reward distributions monthly based on usage.
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Usage will be calculated by the time-weighted total value locked (TVL) of the protocol as a share of the collective TVL of the top 100 protocols.
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Distributions will be sent to the official protocol address as liquid KAVA tokens.
I do not know if KAVA would be the right decision; only time will tell. I am a fan of the incentives, and I could see this growing based on that; however, if it is just the current PVP environment in which Kava is chosen, I do not think it is the best timing. I would love to see some adoption advertising / outside of crypto companies cooperate with the chosen layer 2 for additional marketing and adoption.
Either way WAGMI
It’s looks like Kava will add a lot of value, especially with the CEX listings which will make it easy to onboard new users. Most of the money in crypto is still on CEXs despite the on-chain summer meme. Maybe the terms could be altered a little, but I like it.
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Becoming the top dog on the ETH sounds awesome no doubt. But let’s face it there’s a crazy amount of competition out there. Most Ethereum users are pretty set in their ways and not too keen on trying out new stuff.
Now on the flip side we’ve got Kava. It’s a bit of a quieter scene with fewer rivals and their community is all about embracing new tech. If we could snag that number one spot on Kava it’s like holding the crown on some other chain by association. Being number one on one blockchain makes us look real good. Plus, the bonus is that we’ve got a powerful team backing us up and they’ve got some heavy hitters in their corner.
Personally I’m all in for a vote because this is a solid starting point.
5 Likes
Truly saying, wagmi can sell those KAVA tokens and get USDT due to enough daily volumes. But KAVA cannot sell WAGMI tokens, because volumes are too low. I suppose it is a long-turn investment from the kava side and now it is more profitable for wagmi i suppose.
4 Likes