0xTedious November 22, 2022, 11:18pm #1
Suggestion: Utility suggestions for Fanny in cLend and DFV.
Main area of impact: Other.
Background and crude introductionary reflection:
For those who are unfamiliar with the Fanny token, it is marketed as a merchandise token with no promised utility, that you could farm using lockup or burn on your CORE tokens in (timestamp). After that you could buy it on Uniswap through a CORE/Fanny pair.
There will only be 300 Fanny tokens, some of which have been burned already, so the actual circulating supply is lower.
There has been informal proposals/discussion to give Fanny token holders a multiplicator on their coreDAO tokens when governance is released.
This suggestion is not intended to get focus from the developers at this current time, as it is way more important to deliver the whole of CoreVerse before putting utility on a explicitly marketed “useless” token; thus the intention of this suggestion is to get holders and CoreVerse investors involved in a discussion on what type of features could be beneficial and sustainable if there should ever be added a utility to Fanny tokens.
Use a Fanny token to bypass the 365 days maturity time withdrawal contract for Delta tokens earned through the DFV.
What I mean by using a Fanny token is that you could use a Fanny token as a stand-in for your Delta tokens. So if you, as an example, have 200 days left until your withdrawal contract fully matures, you lock up your Fanny token for the remainder of that time and get your Delta tokens without forfeiting any.
This will somewhat reduce the amount of Delta forfeits, but I do not think it will be significant since there are a very limited amount of Fanny tokens available. On top of that, you temporarily remove it from circulation by locking it up for the remainder of the maturing period. You can also limit the amount of Delta’s you can do this with to ensure that you restrict the total «cost» this will incur on the forfeits. If a whale could use 1 Fanny to bypass maturity time on 100,000 Delta, that would be significant. A limit of, for example, 5,000 Delta per Fanny would equal a maximum impact of 1,500,000 Deltas if all 300 Fanny tokens wore in play.
This puts a limited personal use value on the Fanny tokens, and the low circulation of Fanny tokens could create price pressure on those tokens, making them not only cool but also an valuable merch token.
Use a Fanny token to get the ability to initiate a withdrawal contract without resetting the Delta multiplier to 1x.
When you initiate a withdrawal process of earned Delta tokens today, you automatically reset your Delta multiplier from whatever it currently is down to 1x. It could be interesting to add the utility to enable the «penalty-free» option to withdraw some of your Delta tokens by locking up your Fanny token for a certain period.
This option will have the capacity to skew the distribution of earning capability in DFV some as it would enable large holders the possibility to retain a 10x whilst simultaneously get Deltas on withdrawal contracts.
If this utility is paired up with a limitation on the size it can be used on, it gives a personal value and adds to the overall possible utility of Fanny.
Use a Fanny token to forgive accrued interest on your cLend positon.
Now the interest rate at cLend is set at 20% yearly interest, which under optimal conditions is income for the ecosystem when accrued interest is paid. With today’s LTV requirement your loan gets liquidated in about six months if you do not add collateral or pay accrued interest. The idea is to lock up your Fanny token for a certain amount of time in return for getting your accrued interest forgiven.
It could be severely misused to get a perpetual interest-free loan if the conditions for misuse isn’t properly designed. This could be mitigated by setting the lock-up period for more than a new consecutive period, e.g., under today’s condition, if the user applies a Fanny for interest forgiveness at month five then it is locked up for seven months, ensuring they can not use it for a perpetual interest-free loan even if they utilize different wallets. You could also implement a $ limitation so that a whale can not use it on a position worth several hundred thousand dollars; it could be limited to, for example, $5,000 in forgiven interest per usage.
This further enhances the utility of the Fanny token in return for a low impact on the income of CoreVerse.
Get a voting multiplicator on CoreDAO governance votes by holding Fanny tokens.
This is not my suggestion, I have read other people suggesting this earlier, so I include it here in the suggestion so that it can be discussed around. The idea, I think, is to apply a multiplicator to your voting power so that you increase your actual influence by combining coreDAO and Fanny.
Depending on size and limitations, this could turn Fanny into an attack vector as a skilled attacker could set up a wallet structure to fully maximize Fanny in an attack to get unfair influence over the DAO. This could be mitigated by limitations and conditions, but for me, this poses a severe risk to the governance that I feel neither comfortable nor keen on this utility.
This could further create price-increasing pressure on the Fanny token, as this has a direct influence on governance. It could also give an advantage to OG CoreVerse investors as it is much easier to gain a bigger influence on future governance if you buy Fanny at today’s prices, compared to the prices they could reach once CoreVerse has been delivered and has adoption and growth.
WTwizard November 23, 2022, 2:16am #2
Love to see Fanny Token discussions.
Have usually viewed Fanny as meme-ified Core. It is purchased with Core, redeemable in Core, was originated from Core Liquidity?, and is valued in Core. So it has always felt like degen Core.
Looking at the USD value of Fanny seems to miss the underlying utility. The USD market value of Fanny does piggyback on Core. Valuing Fanny in Core though, is what allows it to also be a degen unpegged parlay bet to increase your Core units stacked. Valued in Core, the historical normal range, so far, has been ~.15-.40/core per Fanny. But it can easily depeg from that range up or down.
Treating Fanny as a Core stack multiplier puts an extra game theory on trading it. The very small supply should make it explosively more volatile than Core as well. The degen attraction is clear and will make Fanny a very interesting part of CoreVerse.
Would add one extra use case for Fanny to the list:
Fee reduction token.
Holders of Fanny would get a reduction in options writing fees. This would not incentivize hostile use or interfere with any treasuries or staking plans. It is pretty vanilla extra use case, but for heavy traders it would make sense to hold one.
0xTedious November 23, 2022, 12:10pm #3
Fee reduction on writing options is an exciting utility as well.
Albeit it is a meme token, with personal financial monetary utilities, it brings, as you say, another level of game theory to it, and the different utilities would fit the persona of it. A Fanny pack is for personal use, and it looks ugly as *redacted. Not even The Rock suits it. But a solid use case for it in CoreVerse would be rad AF.