DM-003: Initial PERC Token Migration

Contributors

@Matt_H & @Mitch

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:

  1. Approve integrating LayerZero’s Omnichain Fungible Token (OFT) Standard to enable cross chain interoperability of the PERC token onto Base
  2. 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
  3. 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

  1. 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.

  1. 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
  1. 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

3 Likes

This is a great opportunity for the DAO, been seeing a lot of traction from a marketing perspective on Base! Hoping we can feed off that momentum :fire:

Proposal has my support!

1 Like

Bullish on Base gaming – PerionXP can easily become the top gaming app on Base. Also wouldn’t mind some much cheaper gas fees!

This is a logical step for PERION in the move to a clearer offering. Why Base over other chains?

Thanks for the support Jettlee

Agree with you on both points Ranch, thanks for your first contribution.

Hi daboater, ultimately the key drivers for building on Base are:

  1. Base is the fastest growing EVM ecosystem in all of crypto. Extremely exciting opportunity to be apart of that.
  2. Developer environment/tooling is far better than up-and-coming EVM chains (e.g. Sei)
  3. Distribution of Base is better than any other EVM chain (think Phantom/Coinbase wallet integrations, Coinbase CEX promoting it etc).
  4. Meets our current scalability requirements.
  5. As we are not committing to a grant/investment from a smaller ecosystem, we are not locked into a deal that might not make sense in the medium term, and thus Base is a better strategic fit.
  6. Lastly, we believe that the probability of a $BASE token being launched has increased with the new US administration. It is important to note this is not certain and it is not certain that Perion would receive any benefit.

Fully support the migration to Base. It’s where all the liquidity is. Strong move for Perion and PERC.

2 Likes