Contributors
Introduction
The Perion team are preparing for the imminent launch of a new game mode on XP.GG that will be utilising Base for on-chain components. This proposal is in preparation for PERC integration and utility within the new game mode.
Summary
The purpose of this proposal is to:
- Approve integrating LayerZero’s Omnichain Fungible Token (OFT) Standard to enable cross chain interoperability of the PERC token onto Base
- Approve the withdrawal of the Perion treasury’s PERC/ETH from SushiSwap, migrate assets to Base and establish a Uniswap V3 pool to create PERC liquidity on Base
- Approve the proportional reduction of public rewards accruing to mainnet PERC/ETH stakers to maintain current staking APY
The underlying reasoning for undertaking these actions is to enable the PERC token to be integrated into the next version of XP.GG that will be built on Base.
Important Note: This proposal does not involve creating a new public staking program on Base. Current stakers will not be negatively impacted.
Proposal
- Approve integrating LayerZero’s Omnichain Fungible Token (OFT) Standard to enable cross chain interoperability of the PERC token onto Base
The first step in migrating PERC to a new network is enabling cross-chain interoperability. While there are numerous ways this can be achieved, the Perion team has identified that LayerZero’s Omnichain Fungible Token (OFT) Standard is the ideal solution for a number of reasons:
- LayerZero’s OFT Standard has become the go-to standard for new and existing tokens that wish to expand across multiple blockchains and roll-ups.
- The standard does not require the establishment of cross-chain liquidity pools.
- The standard allows PERC to be transferable to integrated chains with 0 slippage.
- The Perion team can control what chains PERC can be transferred to in order to avoid unnecessary confusion, as well as add more chains in the future if applicable.
- The OFT Standard codebase and LayerZero’s protocol has been highly audited.
The initial integration will only allow for bridging to-and-from Base, and not include any other blockchains or roll-ups.
- Approve the withdrawal of the Perion treasury’s PERC/ETH from SushiSwap, migrate assets to Base and establish a Uniswap V3 pool to create PERC liquidity on Base
60-65% of the PERC/ETH Sushiswap liquidity pool is staked by the Perion treasury, this is known as Protocol-owned-Liquidity (PoL). This liquidity can be used to establish the PERC token on Base while not negatively impacting existing stakers and holders of PERC.
Once withdrawn from SushiSwap the PERC can be transferred to Base via Stargate (LayerZero’s native bridge). The ETH will also need to be transferred via the most cost effective method.
Once PERC and ETH are on Base, these assets will be deposited into a newly created Uniswap V3 pool. Uniswap V3 is the best option because:
- V3’s tighter liquidity range allows for greater capital efficiency and deeper liquidity
- Uniswap is the most used application on Base and has 10-20 times as many daily active users as Aerodrome Finance
- Uniswap is one of (if not) the most secure protocols in the entirety of Decentralised Finance
- Approve the proportional reduction of public rewards accruing to mainnet PERC/ETH stakers to maintain current staking APY
As the Perion treasury is the largest staker on Staking, it is necessary to adjust the current emissions accruing to the ‘PERC/ETH LP Pool’ once the treasury withdraws its stake. This will maintain the current APY of around 20-30% for existing stakers in this pool.
This reduction will be proportional to the percentage of liquidity that is withdrawn by the Perion treasury. Single sided PERC stakers will not be impacted.
Voting timeline
21th Jan 25: Feedback and amendments
24th Jan 25: Stage 1 vote
27th Jan 25: Stage 2 vote
Conflicts of interest
No conflicts are present at this time.
License
Copyright and related rights waived via Creative Commons CC0