Update – March 24, 2021: How the Elastic Vault Will Help You Hedge Against Negative Ampleforth Rebases, Announcing Pioneer Fund III and More

The DAO is making great progress on its H1 2021 priorities. Here’s an overview of where we are on various projects outlined in the H1 2021 Vision roadmap as of March 24, 2021

Elastic Vault Hedge Against Negative Rebases: Now on Testnet

Vaults (such as those developed by Yearn Finance and Harvest Finance) are applications that allow users to earn yield on their crypto assets in a variety of ways.

Elastic vaults, an innovation developed by the AmpleSense DAO, will allow Ample holders to earn yield. However unlike existing vaults featuring rebase tokens — elastic vaults will leverage the Ampleforth rebase, rather than ignore it.

Over the last few weeks, we have made additional progress on our first elastic vault. Specifically, the draft elastic vault contract has passed initial tests and has been ported to testnet for further review, testing and integration with our new website (eefi.finance).

Elastic Vault Strategy Overview

We will be posting a full overview of the elastic vault strategy closer to launch, but here are some important details about how it will function.

Elastic Vault Strategy Overview (Click to View Full Size Image)

Vault Goal: The primary goal of the vault is to provide Ample holders with an opportunity to generate yield on their Ample—and hedge against negative rebases (see below).

Vault Rewards: The vault will emit token rewards to Ample holders who stake in the vault as follows:

  • During negative rebases (NR), the vault will emit a standard amount of rewards (determined by the amount of Ample staked in the vault)
  • During Ampleforth’s equilibrium phase (EQ), the vault will emit the standard amount of rewards plus a bonus (again, determined by the amount of Ample staked in the vault) – i.e., vault stakers receive a greater number of token rewards during equilibrium versus negative rebase (EQ Token Rewards > NR Token Rewards)
  • During positive rebase, the vault will not emit rewards. However, the supply of the vault-emitted tokens on the market will decline during Ample expansion cycles (i.e., the cryptocurrency emitted by the vault is deflationary) – more details about the deflationary mechanics of the elastic vault strategy will be released at a later date.

Initial Rewards Token Airdropped to kMPL Holders: Prior to the launch of the elastic vault, a percentage of the initial circulating supply of the reward token will be airdropped to kMPL holders. The airdrop will only be claimable by kMPL holders who stake their tokens in Pioneer Fund Vault II.

Rewards Distribution: After the initial token airdrop, ongoing rewards from the vault will be distributed to:

  • Individuals staking Ample in the elastic vault
  • Community members providing liquidity for tokens emitted by the vault
  • kMPL holders staking in Pioneer Fund Vault II
  • kMPL/ETH liquidity providers staking their liquidity tokens into Pioneer Fund Vault III (see below)
  • Individuals staking Pioneer NFTs in Pioneer Fund Vault I (these rewards will be converted into Ample prior to deposit)

Rebase Exposure: Vault stakers will lose exposure to positive and negative rebases (because their Ample will be staked in the vault), but will receive rewards during periods of negative rebase and equilibrium, as described above. For example, if the vault were live currently, vault stakers would be receiving a steady amount of rewards from the elastic vault, but would not experience negative rebases (on the percentage of their Ample holdings staked in the vault).

Elastic Vault Status: The elastic vault contract is now on testnet undergoing additional testing and optimization. We will release more specifics about the design of the elastic vault, and the shape/scope of token rewards emitted by the vault closer to launch (Note: the rewards token will not rebase, it will be a standard ERC-20 token).

Announcing Pioneer Fund III: Token Rewards for kMPL/ETH Liquidity Providers

Over the past several months, kMPL/ETH stakers have received rewards from the Apollo kGeyser. Now that the kGeyser has emitted the majority of rewards, community members have asked us whether kMPL/ETH liquidity providers will continue to receive incentives.

Today, we are excited to announce an addition to our Pioneer Fund program: Pioneer Fund III. When our new website launches (eefi.finance) kMPL/ETH token holders will be able to deposit their liquidity tokens into Pioneer Fund Vault III and receive token rewards from all DAO activities. We will make adjustments to the published Pioneer Fund II rewards percentages to account for the rewards for kMPL/ETH liquidity providers.

Zeus and Apollo NFTs

Given that we are nearing the launch of our elastic vaults, we have been re-evaluating the performance of our Zeus and Apollo NFT incentive program. It is clear that we will not meet our initial goals for triggering the distribution of the remaining NFTs to the community. We are working on a new distribution plan that will deliver the remaining NFTs to Apollo and Zeus kGeyser program stakers prior to the launch of our elastic vaults.

Elastic Vault Teaser Campaign

We have developed a series of short video teasers about our elastic vaults and will be launching a social media campaign that will give the community the opportunity to help raise awareness about our unique elastic vault innovation. We’ll have more details on the campaign soon.

Bolstering Infrastructure

We also conducted initial work to bolster our infrastructure to support our new smart contracts, prepare for multi-chain Ample, and more.

Click here to view the DAO’s updated roadmap-related Kanban Board.

Recommended7 recommendationsPublished in Ecosystem, Official AmpleSense Announcements

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