It’s almost time for the Bao ecosystem to see its first launch of Synthetic Assets! Starting Polly Finance, our new Polygon franchise, we will cross an important milestone in our project with our first product offering. But before Polly’s highly anticipated launch, there are a few other exciting events happening in the community that we should cover first! New governance proposals, the official release of our 1:1 Bao/baocx conversion contract, our first ever community call, and an upcoming contest are just some of the things we’ve been up to. If you want to make sure you haven’t missed anything important, keep reading to catch up on all that’s important in the Bao universe before we turn the page into a new chapter for our project!
First Bao Community Call
The Bao community held its first ever Community Call a few weeks ago! We’re truly honored by how many people joined — enough that our presentation call reached max capacity. Luckily, a recording was made available to listen in whenever. To those that were able to make it, we gave out our first POAP badge in commemoration of our first of many calls to come. It’s by a new artist (who wishes to remain anonymous) who we hope will continue making more Bao related assets alongside Bread in the Artsy-Bao Galaxy and we’re absolutely stoked to see more Bao artwork from her!
If you’d rather read what was discussed in the call instead of relaxing to the soothing ASMR quality of our voices, I’ve got you covered. Because we’ve already made progress this past week on some of the topics in the call, the summary below will actually have updated information!
Introduction into Polly Finance
PieDao partnership talks haven’t progressed into a full partnership, we will be sticking with our original plans of ethically forking. Polly Finance will be launching with indexes, called “Nests”, which will be composed of vaults that will hold underlying assets for use in yield earning strategies. This means that not only can our Nests provide broad coverage of key projects in a particular sector, but those assets will be actively put to work in passively earning rewards from platforms such as Aave, CREAM Finance, and KASHI offered by our partners at Sushi. On top of that, you will be able to farm POLLY tokens with these Nests, meaning you can receive rewards from multiple sources!
As our first offering of soft synthetic assets, we will have those be the primary focus of the Polly Finance franchise. It will be launching with fewer farming pools than previous Bao related platforms. We decided to focus only on helping incentivize key components of our indexes that are lacking liquidity on the Polygon network. However, farming rewards in the form of our POLLY governance token will not be distributed for the first week or two of Polly Finance’s launch. Some examples of protocols we are planning to create pools for are COMP, UMA, ALCX, and CVX.
Because of this, Polly Finance will only be launching, at first, with a single Nest as we await for adequate liquidity to enter the chain. It will be our nDEFI Nest, designed to capture projects that make up the core of the DeFi sector based on their Ethereum mainnet total locked value divided by fully diluted valuation.
Polly’s contract is designed to be modular, allowing us to modify Nests for the best possible strategies available. As an example — if the strategy for an asset in your Nest was earning yield from Aave, and CREAM Finance suddenly offered higher yield for that token, it would be easily adjustable so your underlying assets can transfer from the lower yielding Aave pool to the higher yielding one offered by CREAM Finance. This also allows the community to vote on new strategies.
We’ve also made the decision against launching an automated market maker (PollySwap). Because we are partnered with Sushi and they have already established themselves as a primary decentralized exchange on Polygon, there is no need to build our own. Assets for all of our indexes will be purchased from SushiSwap with wETH, and all non-single sided farms on Polly Finance are planned to require SLP tokens.
Polly Finance will be our first franchise to launch with a multisig in place. The proposal to approve our multisig has been passed and will initially consist of members from different community galaxies:
- BaoMan — Maintainer Galaxy
- Vital — FrontEnd Galaxy
- Chickn — Community Galaxy
- BaoWolf — Community Galaxy
- Madotsuki — Community Galaxy
Transitioning to a multisig+timelock setup will allow our DAO to have more decentralized control over Bao contracts, community treasury, and governance. Direct governance of our contracts will be possible through a Compound Governator contract, which the Bao token already has built in support for.
With our community treasury being managed by a multisig, the various community galaxies will have access to funding to more easily advance our protocol efficiently. We plan to have full direct governance in place for all contract assets by the end of the year, so long as there is unanimous confidence in its preparation and security.
We are well aware that there are a number of pending tasks the the community has been patiently waiting to be addressed. As the current focus is on Polly Finance, these tasks are being taken into consideration but will have more resources to allocate to them once Polly Finance is fully launched.
PandaSwap is still an important part of the Bao Finance vision of being a multi-chain protocol. The decision to deploy our first iteration of soft synthetics on Polly Finance rather than PandaSwap was the result of initial testing on Binance Smart chain giving unsatisfactory results due to the chain’s infrastructure. If soft synthetics are successful on Polygon, it will be much easier for the maintainer galaxy to reliably deploy them to other chain.
Even though PandaSwap isn’t our current focus, there are still some improvements for the franchise at work. fabiaz84 has been hard at work with getting PNDA’s governance snapshot established. In addition, there is a proposal for revamped RHINO tokenomics in the works by BaoWolf, written with heavy intent to bolster more activity in PandaSwap,
We’ve been excited to distribute our Bao NFT badges promised a few months ago. However, as the idea is for these NFTs to carry some utility within the Bao ecosystem, they have proven difficult to properly implement. For the time being we are exploring options to implement badges as envisioned.
Official Launch of BaoSwap 1:1 Contract
The long awaited launch of our Bao <-> Baocx conversion contract has been funded and has been successfully running for over a week now. It functions exactly like the RHINO contract from PandaSwap, in that users must first deposit their tokens into the contract, and then withdraw their converted token with a separate transaction. With this contract fully functional, the value of BAOcx should be reliably pegged to BAO. There are of course more updates planned for the BaoSwap platform, including synthetic assets. Like PandaSwap, there will be a period to revisit BaoSwap for additional features after Polly Finance has launched and gone through its initial testing. If you’re wondering what options are now available for you with your BAOcx now that the conversion contact is live, check out this guide written by BaoWolf:
Cross-Chain Governance Concept
It’s been a long time coming, but fabiaz84 has put together a concept for how Bao governance can be extended to the xDai chain. We’ve definitely understood the importance of having the community have their xDai holdings be utilized for important protocol votes; but a technical limitation with Snapshot delayed our ability to implement a proper mechanism for that.
By looking at how xDai has their own snapshot set up, fabiaz84 was able to implement the same voting strategy for Bao. The subgraph has already been set up, and accounts for BAO, BAOcx, and locked BAOcx on the xDai chain. We’re looking forward to extending Bao protocol governance. In putting this proposal together, we are also taking the first steps to creating a snapshot for PNDA governance on the PandaSwap franchise.
New Bao Improvement Proposal Process
In order to more efficiently streamline governance proposals, the community has accepted a new Bao Improvement Proposal (BIP) standard proposed by Chickn. It can be followed by members on the governance forums for suggesting additional features or modifications to Bao Finance. The BIP will serve as an important template for anyone to map their ideas onto going forward, and since implementing it there’s been a noticeable uptick in community engagement within our governance forums. For example, we’ve had our first non-galaxy community proposal submitted by Cookies to help increase trading volume of PandaSwap related tokens. I definitely encourage everyone to give it a read and voice your thoughts on it!
We hope that with a more clearly defined template, the community will have an easier time in bringing forward ideas that will inevitably help our community evolve further.
Proposal for Vex to join part time
Vex has come a long way in our community. Many of you may remember me first mentioning him months ago in my first community round-up, showcasing his amazing BaoView app, originally created for BaoSwap. He’s since expanded its functionality to PandaSwap and has in general been volunteering his skills for Vital in the creation of the new Polly Finance front-end. We highly encourage community contributions and feel that Vex has become a key part of the front-end galaxy. As such, BaoWolf has initiated a proposal to grant Vex a part time position with an hourly wage to fairly compensate the work Vex has put into our project and secure his continued contribution for more front-end development.
Tea joins the Team
Tea joins as a BaoFriend as our galaxies continue expanding their reach! Some in the community may recognize him from his well written explanations of synthetic assets and their potential uses in our Discord. On top of overall being delightful to talk to, he’s been extremely helpful in facilitating contact with Pluton, the creator of the Discord Tipbot who now lives in our server! Now you’ll be able to tip other members in the server with a wide variety of assets, including BAOcx, and reward any efforts you feel are worth contributions to the community.
For those of you who haven’t been introduced to Tea’s brilliant synthetic asset writeups, you’re in for a treat. Tea has decided to create his own blog in which he will go over Synthetic Assets, their potential use cases, the different protocols that utilize them, and much more. I’ll be publishing them together with my own articles going forward in our Baomunity publication.
A New Chapter with Bao
We’ve been hard at work these past few months, and while a lot has been happening to get to this point, we still very much appreciate the community’s patience while we moved around pieces behind the scenes to come to this point. We’re reaching a very long awaited and important milestone in our project with the launch of our first ever synthetic asset product offering. Even though we’ve come such a long way to get here, there’s so much more ahead to look forward to. All contributions, no matter how small, help us grow stronger with each passing day.
Bao Finance will continue growing, expanding its feature set, and providing users with robust multichain empowered tools to truly put the power of personal finance back into the hands of the individuals. But at the core of all this is our strong and loyal community. We’re really seeing growth in the quality and quantity of ideas coming from our members, and more of a thirst to contribute to the protocol as a whole. Even though we’ve come a long way to reach this point, it’s truly just the beginning. I’m ecstatic for the future we’re building together, and truly appreciate being a part of this big family here at Bao Finance. Thank you everyone.