Champion SLIZ - cpSLIZ
Overcollateralized Champion-escrowed $SLIZ & $VESLIZ (SOLIDLIZARD DEX - ARBITRUM chain)
$SLIZ is the native token of Solidlizard Finance, a ve(3,3) permissionless liquidity market, community oriented on Arbitrum blockchain. It rewards holders with a share of the platform's revenues and also acts as a governance token for its weekly pool incentives gauge. $SLIZ has a decaying emissions model.
Users can stake and lock their $SLIZ tokens on Solidlizard for a fixed period between 1 week and 4 years, to receive a vote escrow NFT ("veNFT"), which is used to record the amount of $veSLIZ held by the user.
$veSLIZ holders receive five benefits:
- a share of the trading fees from swaps using the platform's liquidity pools;
- the ability to direct $SLIZ emissions distributed to platform liquidity providers;
- weekly $veSLIZ distribution (rebase);
- boosted APR for the Liquidity they owned.
- the opportunity to earn bribes from external parties by voting for their incentivised liquidity pools.
$veSLIZ positions can be merged, and sold on the secondary market. $veSLIZ time lock period can be extended.
The amount held by a given user decreases steadily to zero as the lock period moves towards its completion. Weekly rebase is to safeguard $veSLIZ holders from dilution and to enable a dynamic distribution of $veSLIZ among participants over time, the anti-dilution level has been capped at 30%;
$cpSLIZ is an Overcollateralized Champion-escrowed version of $SLIZ & $veSLIZ staked for $cpSLIZ to take advantage of the various benefits offered to Solidlizard stakers.
You can mint $cpSLIZ on the $cpSLIZ vault page at a fix ratio of 1 $SLIZ: 1 $cpSLIZ and 1 $veSLIZ: 1 $cpSLIZ.
Remember to reset vote of your $veSLIZ
You will not able to redeem $cpSLIZ to $veSLIZ or $SLIZ.
There will be incentivised liquidity for $cpSLIZ-$SLIZ LP.
When $cpSLIZ value fall down below 90% of the $SLIZ value (peg <0.9), the contract will not allow to mint more $cpSLIZ from $veSLIZ.
User can swap $SLIZ to $cpSLIZ via smart route in the $cpSLIZ vault page. When $cpSLIZ is above peg, $SLIZ will be used to directly mint mint $cpSLIZ at a 1:1 ratio. When $cpSLIZ is below peg, $SLIZ will be used to directly buy $cpSLIZ in the $cpSLIZ-SLIZ liquidity pool.
Burning mechanism of $cpSLIZ is based on the 1% transaction fee/tax including buy/sell/add & remove liquidity
Transaction fee/tax allocation:
- 50% of the fee/tax will go to Champion Treasury and become permanent voting power of Champion.
- 50% of the fee/tax will go to Arbitrum chain's dead wallet, and the $SLIZ back for those $cpSLIZ will be permanently locked in the contract, permanently out of circulating supply.
From the begining of the contract, $cpSLIZ token is fully backed 1:1 by $SLIZ.
By the time, with the burning mechanism, when user buy/sell/add & remove liquidity of $cpSLIZ and generate fee, half of the fee $cpSLIZ will be sent to dead wallet and permanently out of circulating. The back ratio of $cpSLIZ will be above 1:1 by $SLIZ and $cpSLIZ in the contract will become over-collateralized.
The more volume of $cpSLIZ --> the more fee is generated--> the more backed ratio of $SLIZ is--> the more overcollateralized $cpSLIZ is.
When you mint $cpSLIZ, the contract will immediately try to stake and lock the deposited $SLIZ or merge the deposoted $veSLIZ into the contract's $veSLIZ with maximum locking time of 4 years.
Once the contract's $SLIZ is staked and locked into $veSLIZ, it receives five benefits:
- a share of the trading fees from swaps using the platform's liquidity pools;
- the ability to direct $SLIZ emissions distributed to platform liquidity providers;
- weekly $veSLIZ distribution (rebase);
- fee from booster APR of the Liquidity providers;
- the opportunity to earn bribes from external parties by voting for their incentivised liquidity pools.
As the $cpSLIZ contract perpetually re-locks its $SLIZ deposits, it always strives for the maximum amount of voting power and benefits.
Earned trading fees, bribes and rebase are regularly harvested, swapped for $cpSLIZ & $SLIZ and will be used to bribes $cpSLIZ - SLIZ Pool on SOLIDLIZARD.
Once you're holding $cpSLIZ, you can create $cpSLIZ-SLIZ LP and stake into SOLIDLIZARD dex to earn more $SLIZ.
Where our $cpSLIZ contract earns trading fees, rebase and bribes by deploying its $veSLIZ on the protocol, those protocol revenues are swapped back to $cpSLIZ & $SLIZ and use to bribes for $cpSLIZ Pool. This maximises the yield for holders above what they could obtain alone from the protocol.
Champion strives to maintain some of the lowest yield-optimizing fees, and charges standard fees on its $cpSLIZ optimizer.
Total of 6% perfomance fee, including:
- $Cham/$SHDB staker and/or bribes for CHAM/SHDB pool on Solidlizard: 2.5%
- CF&DF Treasury: 3%
- Contract strategist: 0.5%
Lets detail 3 levels of $cpSLIZ peg:
Peg Level | $cpSLIZ Peg | Recommendation/Market reaction |
|---|---|---|
1 | Peg > 1.0 |
|
2 | 0.9 < Peg < 1.0 |
|
3 | Peg < 0.9 |
|
$cpSLIZ will healthily maintain peg at Level 2 (0.9 < Peg < 1.0).
No. All $SLIZ voting power will be used by Champion to vote in the weekly liquidity pool incentives gauge.
Votes will typically be directed either to the liquidity pools offering the most in trading fees and bribes, or to the liquidity pools which support our $cpSLIZ token ($cpSLIZ-SLIZ LP).
The $cpSLIZ contract will harvest all trading fees, rebase and bribes from the protocol and swap those for more $cpSLIZ & $SLIZ to bribes for the next epoch on SOLIDLIZARD. Voting on SOLIDLIZARD's incentivised liquidity pools takes place on its web app.
- If you want liquidity for your $veSLIZ to farming more yield and/or to be able to sell to fiat in emergency case.
- If you do not have enough time to do the vote yourself
- If you do not want to provide Liquidity on Solidlizard but still want to enjoy the boosted APR effect.
- If you want to enjoy "the eighth wonder of the world" - auto-compounding
Then wrappers and optimizers are there for you.
$cpSLIZ is one of the solutions.
There are some reasons:
- Protocols with vote-escrowed model normally see wrappers as the exist liquidity for their vote-escrowed tokens.
- All the wrappers and their investors are facing some main difficulties: Losing its peg for the peg model or Drained out its reserve for the reserve model
$cpSLIZ is built to solve it and bring a win-win-win relationship to investors, vote-escrowed protocols and Champion
- For investors: with burning mechanism, boosted APR fee, and overcollateralized model, $cpSLIZ can maintain a sustainable & high peg value & APR
- For vote-escrowed protocols: Bring constant buy pressure on dex rewards token and with the overcollateralized model, $cpSLIZ help to permanently remove certain quantity of $SLIZ tokens from circulating supply.
- For Champion: Treasury will generate permanent voting power, maintain a long-term revenue.
$cpSLIZ is not the perfect solution, as it can be lost peg and user need to form liquidity in order to take advantage on farming APR.
Last modified 6mo ago