BAE BND- Anti-deflationary system for DAO liquidity in the DeFi space.

In the year we have had BAEPAY live we have learnt a lot we have great platform artists and products. One issue however is our token BAEPAY liquidity, we have up until the 1st of December 2021 directly sent BAEPAY to liquidity providers of the token. While this solution has provided better longevity to the tokens overall value it has come with many drawbacks including, high gas fees for the BAE team delays in sending and difficulty tracking those who drop in and out of the pool to take advantage of the pool.

The drawbacks of a direct farm are obvious in that they will always have an endpoint where investors pull out causing massive panic and a collapse in the tokens price. With these issues in mind, we are implementing a dual system which we believe will address both issues taking inspiration from this DAO https://medium.com/@iambotto/reaching-the-summit-of-olympus-909d175f827e

BAEBND

This has required a launch of a secondary token BAEBND https://etherscan.io/token/0x31cd00dff7e9891253cfaea8a45cf37491703cd

This token has a total supply of 10,000 and only 4 decimals making it extremely limited. A pool on uni v2 has been set up initially supplied by the bae team of 1100 BAEBND and 0.000002469551424521 of the BAEPAY Uniswap v2 liquidity token, at the time representing 11% of the BAEPAY pool. The only pair set up for this is the Uniswap v2 token and BAEBND.

The pair can be found here https://v2.info.uniswap.org/pair/0xf80a67d76458e98d07efa416b9a903a2e74fead5

BAE liquidity token found here https://etherscan.io/token/0xa14c40b83885e1f8d516e0e43a7361f31eca6854

BAE liquidity token holders will be able to obtain BAEBND by swapping their v2 BAEPAY liquidity tokens for BAEBND https://v2.info.uniswap.org/pair/0xf80a67d76458e98d07efa416b9a903a2e74fead5.

BAE will then buy all the available BAEPAY uni v2 tokens and deposit them into the BAE DAO vault here https://gnosis-safe.io/app/eth:0x4b15bd195D91aD1799DFE4916E86f5Ae809187A4/balances

This will give the BAE DAO full control over BAEPAY liquidity preventing the withdrawal of liquidity from the BAEPAY pool.

BAEBND-NFT

BAEBND can also be obtained by buying BAEBND NFTs which can be purchased on the mybae.io platform with BAEPAY these bonds will be issued as the BAE DAO sees fit. Initially, 5 will be released with a redeemable value of 50 BAEBND these NFT bonds values will be adjusted as needed the first 5 will be available for 50,000 BAEPAY (both representing 0.5% of the supply of the relevant token) or the ETH equivalent auto swapped via our Uniswap sales contract. Holders can then do a direct trade with the BAE team in the official bae discord or telegram to obtain their BAEBND the related NFT bond will then be burnt.

https://mybae.io/artwork/1554

BAEBND use and liquidity rewards

Holders of BAEBND will then be able to deposit the token into a GYSR liquidity farm where 1.2 million BAEPAY will be deposited this farm will reward users who keep their token in it for longer as do most farms. The Farm will last for over 1 year, with this system even a sell-off will have a much smaller impact on the pool as no liquidity will be taken out of the BAEPAY pool. However, yield farmers will still be able to take profits creating a system where all parties win and a more sustainable system for the BAE DAO and the yield farmers.

The farm can be found here https://app.gysr.io/pool/0xaa2c679441c249f81fd5c8966a4dad70ea9ff7bc

The short guide

There are two methods for farming BAEPAY as an LP now. There are images of these process flows below here they are in writing.

Method 1:

Step 1. Provide liquidity to BAEPAY/ETH pair here https://v2.info.uniswap.org/pair/0xa14c40b83885e1f8d516e0e43a7361f31eca6854

Step 2. Buy $BAEBND with LP tokens here https://v2.info.uniswap.org/pair/0xf80a67d76458e98d07efa416b9a903a2e74fead5

Step 3. Deposit tokens into farm here and yield farm as normal

https://app.gysr.io/pool/0xaa2c679441c249f81fd5c8966a4dad70ea9ff7bc

Method 2.

Step 1. Buy BAE-NFT-BND here https://mybae.io/artwork/1554

Step 2. Join BAE discord or telegram and talk to Sascha Bailey in public chat here https://discord.gg/EWSpPbrPGq https://t.me/baeart

Step 3. Exchange NFT-BND for $BAEBND and farm as normal here https://app.gysr.io/pool/0xaa2c679441c249f81fd5c8966a4dad70ea9ff7bc

Airdrop for current LP holders

Current LP holders will be dropped 2 $BAEBND for each % of the pool they currently hold so they can be the first to start farming. This snapshot has been taken and you cannot join the drop now.

New BAEPAY distribution

20% (2 million) BAEPAY is now held in the DAO vault there are 10 addresses associated with it the Vault requires 6 of 10 people to vote on any withdrawals the BAE team owns 2 of these addresses so even we can be overturned. The rest of the addresses are held by artists, collectors, developers and people who have just helped in the BAE community all are named but none have much of a direct connection to each other to prevent any kind of collusion.

10% of all BAEPAY has already been sent to liquidity providers, a further 12% will be put into this new farming system.

5% was lost in the roll hack and was entered into circulation, 5% was burnt by the BAE team to offset this. This leaves roughly 48% that is held in the Roll vesting contracts, 10k per month will be sent to the DAO holders.

The remaining amounts will be deposited into the BAE DAO vault whenever the vesting contract releases it, and votes on its use will be made by the DAO participants when these amounts are released. BAE will hold back 100k for itself for voting and development.

Final thoughts

We hope that this solution will provide a way for other DAOs with small starting capital but highly energized communities to protect themselves from whales and rouge capital in the DeFi space. While this may not seem like a perfect solution, we see it as the best possible one for all parties and we welcome any input or suggestions. Please join our DAO discord for artists and creatives here https://discord.gg/ervgkZsykD

This also is a way of no longer requiring liquidity locking of any kind as the DAO has full control over the LP tokens while still rewarding those who choose to participate.

Note most descriptions of suggested economic systems would have pie charts and other such things. However, this is more of a conceptual issue driven by human greed so the answer follows the same format.

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The Blockchain art exchange www.mybae.io

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