Hey Empty Set Dollar Community! If you have no idea what Continuous ESD (ESDv2) is please refer to a previous newsletter, which explains why and this video explainer which explains what. You can (should) also read the Medium article written by the ESS, and read the write-up done by Complement Capital.
We have a bit to cover today: The Audit, Migration, DeFi Pulse partnership.
Audit Complete
The OZ audit is complete and remediations have been finished. The codebase is now finalized and the ESS is doing final testing on testnet. This means we should be seeing a launch of V2 shortly! We don’t have a specific date because giving specific dates and missing them is bad practice opposed to taking time and making sure everything works as intended prior to launch.
Migration
We wanted to give you a snapshot of the migration page. It is pretty straight forward. You will migrate your ESDv1 to the equivalent ratio of ESDv2 by clicking the button “Migrate your ESD.” If your ESD tokens are on other protocols you will need to remove them before you can migrate. Similarly, if you are liquidity providing, you will need to un-stake your LP Token, and return it to ESD form before migrating. Be mindful of the tax implications in your respective jurisdiction with regard to migrating, and un-staking.
If you’re not sure what to do with your ESD right now - read the 10th Newsletter which describes what to do depending on what status your ESD is in.
Partnership with DeFi Pulse
You can read the proposal for yourself here. Please comment or head to the Discord/Telegram for discussion. A (not-so-brief) summary of the proposal is below. Lewi also talked about partnerships for V2 in a medium post of his own which can be read here.
Who is DeFi Pulse?
DeFi Pulse is deeply ingrained within the DeFi ecosystem. They have a massive network of curated partners and they have a track record of developing useful metrics and products. They created the Total Value Locked Metric and they manage the leading DeFi Index. Partnering with DeFi Pulse gives ESD access to one of the most recognized and trusted actors in DeFi.
What are they going to do for ESDS?
The Empty Set DAO will bootstrap a treasury managed by the DeFi Pulse business development team. The initial grant of 5,000,000 ESDS will be used to reduce friction and allow for grants to projects that are being onboarded. When the team successfully onboards a protocol, they will earn a 50k ESDS success fee directly paid from its treasury. Once the entire amount has been paid, the DeFi Pulse team will formalize another TIP to replenish its treasury through a vote of the community.
What do they get?
DeFi Pulse will be granted 16.5 million ESDS as an initial allocation. These tokens will vest linearly for two years, in a revocable contract. They also get a 50,000 ESDS bounty, per protocol that is added by their business development team (remember this money comes from the 5M treasury created for them to manage.) Finally, they get 1% cut of the TVL, paid in ESDS, if that number is above 10M ESD, 100M ESD, or 1B ESD.
ESD locked milestones Defi Pulse rewards
10M ESD $100K worth of ESDS
100M ESD $1M worth of ESDS
1B ESD $10M worth of ESDS
This reward is capped at 1% of total ESDS Protocol valuation to avoid large dilutions. That amount will vest linearly in a 2 year non-revocable contract on the same schedule as the original 16.5 million. All rewards are paid based on a TWAP of 1 week.
Reward Tracking
Empty Set DAO will need to track the performance of the DeFi Pulse business development team. That team will be in charge of creating a dashboard with a list of all protocols that are on-boarded by DeFi Pulse. The DeFi Pulse team will also track the same information to ensure accuracy.
Questions? Concerns?
Head to the Discord/Telegram/emptyset.xyz and discuss this proposal. This is not set in stone, and the community should weigh in on a decision this large.
More Info/Get Involved/Rabbit Hole
ESD SN2 Youtube Channel - Community Calls