Proposal 005 - Blend on Tezos (5L8LWMFQc)

Introduction:
This is the fifth proposal submitted by the Staker Operations team (Ops) based on STKR token holder feedback. The primary purpose of this proposal is to formalize the launch of BLND on Tezos.

Proposal Items:

  1. Ops team, after speaking and receiving feedback from STKR token holders, will launch a BLND token variant on Tezos and create a swap mechanism that will allow registered holders of BLND on Ethereum to port their position into the Tezos network and vice versa.

  2. Ops team will research additional ERC-20s to potentially port into Tezos and may provide value for STKR token holders.

ITEM 1:
Background:
The StakerDAO token (STKR) is built on Tezos, but our initial product offering, BLND, as indicated in our February proposal, will live on Ethereum. This is because Ethereum is today’s dominant platform for DeFI and BLND should take advantage of this. BLND should participate in the DeFi growth within Ethereum and BLND should become a primitive in systems like MakerDAO. However, STKR token holders also believe in good governance and it’s why StakerDAO was built on Tezos. STKR token holders are proposing to help accelerate the future of DeFi on Tezos and this vision can begin to be realized by creating BLND on Tezos.

How does it work?

  1. The price of BLND should be equal on both Ethereum and Tezos and the processshould therefore be simplified to a premium free atomic swap.
  2. An Operator, initially run by Staker Ops, will hold BLND tokens on both Ethereum and
    Tezos and act as a counterparty.
  3. A BLND investor may submit an order on Ethereum to transfer their BLND to Tezos.
  4. At this point in time, the Operator will absorb the BLND submitted and transfer BLND on Tezos.

This process will be available to registered holders who participated in the BLND offering on CoinList. Furthermore, Staker Ops will work toward the development of a process, either internally or externally, so that new qualified investors, e.g. investors who are not US persons and would otherwise be permitted to hold BLND, but acquired BLND outside of the CoinList process can be onboarded in a compliant manner.

What can be changed over time?

STKR token holders may actively choose to change aspects of BLND on Tezos and the transfer process between Ethereum and Tezos. This includes the:
● Supply - The number of tokens the Operator holds to participate as the counterparty is subject to change. This may likely equal the approved supply of Blend on Ethereum.
● Transfer Fee - The fee to move BLND between Ethereum and Tezos is subject to change.

ITEM 2:
StakerDAO will create portability of BLND into Tezos and subsequently will be positioned to use a similar engineering process to bring other ERC-20 tokens into Tezos. Ops and STKR token holders will research and propose additional ERC-20s, which may benefit STKR token holders, the Tezos ecosystem, and potential investors.

Deliverables/Technical Specifications:
The full scope of technical details is currently under development, but code will be available at a later date on Github.
Github: https://github.com/StakerDAO/blend

Roadmap:
September 2020: Anticipated availability of BLND on Tezos

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A few questions I have on this:

  1. How much of a time commitment will this end up being (Where does this fall between being a major project vs. a relatively easy addition)? If it’s a quick addition, no problem at all. But if this is more substantial, would the team’s time be better spent elsewhere?

  2. How much value is this really adding to the BLND token? My hunch is that few BLND holders will actually demand this feature. Maybe it’s a nice addition to BLND for some people, but I question whether this fundamentally changes anything about BLND for potential holders.

  3. Curious what conversations have been like with potential BLND holders? These people are really these ones who should be determining the BLND product roadmap. If we don’t have a clear picture yet, would it make more sense to wait and see if this is a feature people demand?

Overall, not opposed to the proposal, just trying to understand how much of a priority this should be.

Thanks!

Apologies! I totally missed this because of other notifications.

1/ We think the time commitment is modest, around 3 months, but we give our team a buffer and expect implementation by October. This may seem slow or fast, depending on who you speak to, but we think it opens up the door for future projects at StakerDAO. We’re not confident about building in a completely new arena as we launch Blend here (eg gaming project) and we want to be synergistic with our offerings early on or least lay down the path for something different than Blend.

2/3 Like all crypto networks, each one is ‘tribal’, but we have deep experience with the Tezos ecosystem, both building on top of it for STKR as well as Jonas’ storied time building community and a baker on the network. The earliest pushback we received across social media channels when announcing Blend, including random accounts to more prominent names is why we were building Blend on Ethereum and not Tezos. Everything from “im no longer going to keep up with this project bc of this” to “you’re losing out on demand on Tezos” to more recently speculation on whether this proposal would at some point burn all BLND on Ethereum and live solely on Tezos. We think we made a case for Blend benefiting from DeFi on Ethereum and becoming a primitive in DeFi protocols, but we acknowledged the feedback. Tezos is a network where we are making a decision to be early in what we think will be a big source of demand and we want to commit to the early vision of building DeFi on Tezos. Overall, we think the engineering effort can run concurrently with our initial Blend efforts on CoinList. Instead, the next iteration is what we are really trying to source feedback for as it will likely be our true second product. Some of the conversations we’ve begun to have revolve around NFT baskets or a stablecoin or single token synthetics, the latter two which are being more heavily considered.

Let us know your thoughts and things you think we could build!

-Christian

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