Announcing GOGO governance, a glimpse at GOGO v2 and the UST compensation plan
Dear GOGO Protocol users,
We have some very turbulent times behind us and even though we are still seeing the effects of this seismic ecosystem shake-up we want to reassure everyone today that the GOGO community and our DeFi-space as a whole can rebound stronger than ever.
This announcement is structured into the following parts:
- DAO Governance
- GOGO v2
- Compensation for the USDC pool affected by the UST de-peg
After closely studying how other DeFi protocols have handled community-managed treasuries, we are firmly convinced of the wide array of opportunities which can be offered to protocol users
After spending significant time designing our governance architecture, we’re excited to finally share the details with you all.
Since its inception, the idea behind the GOGO Protocol (“GOGO”) was to serve as a trustless and decentralized financial platform for yield generating products.
Inspired by the vision of the DeFi ecosystem, we are committed to the ideals of permissionless access, security, and immutability, to offer a future where anyone can access financial services on equal footing.
Now, driven more than ever by the need to raise the bar on transparency and structure, we find it imperative to establish our standard for community-led growth, development, and self-sustainability.
In the coming days and weeks we will assemble the DAO charter to help everyone understand how GOGO decentralised governance will work and how every token-holder can participate in it.
We aim to bring in a diverse and high-quality set of protocol delegates, and begin discussions and communications around potential governance proposals.
The first proposal on the community-managed treasury will regard a compensation for all our users affected through the cascade of events triggered by UST’s depeg and culminating with the closure of the USDC pool.
The forum, a place for public discussion and brainstorming, will go live as of today and the first governance proposals are planned for this time next week.
Control over the treasury will be subject to governance and time-lock delays, as per best practices of other DeFi protocols.
GOGO holders are responsible for ensuring that governance decisions are made in compliance with applicable laws and regulations.
In our next announcement specifically on governance parameters we will share details on the voting mechanism and voting periods and execution of successful votes.
Major decisions are made by the community by voting on GOGO Improvement Proposals (GIP). Voting power is based on a user’s gGOGO token count. Below is a summary of the voting process for GOGO Protocol:
1. Soft proposal to the community on Discord
Before a proposal is set for a vote, it will be sent to the community on Discord. This will begin a period of discussion about the proposal: whether it should be voted on, how it should be amended, what options should be voted on, and how the results of the vote will be interpreted (quorum standards).
2. Community Forum held for further discussion and critical Votes
If a vote is critical, impacting the protocol considerably, you can use the discourse forum on https://community.gogocoin.io/ to discuss the proposal in depth. Community members can and are encouraged to hold independent townhalls also on the Discord. To set one up, users can contact team members.
3. GIP launched on Snapshot
After the community has discussed how the proposal will be voted on and what the contents of the proposal will be, the proposal will be posted on Snapshot to be voted on. To participate in voting, users must have a gGOGO balance before the snapshot takes place for that vote.
UST compensation plan:
The events that unfolded in the last weeks as part of the Terra implosion have left many speechless and we have done our best to be close to our community through the turmoil. We have had hundreds of conversations with affected users, team members, friends and family members to help with coping and processing the consequences that we are now all facing.
We appreciate the pain on a personal level as also the protocol’s team members are among the impacted users of what can only be described as a catastrophic black swan event.
From the inception of GOGO Protocol it is and was always our aim to put all our users on a pedestal and provide one of the easiest and best solutions to experience DeFi.
Having partaken in both the growing gains as well as the pains, we strongly believe in recognizing the importance of all affected GOGO Protocol users. We value each and every community member that has stood by us through these disastrous times.
You, our valued community members, deserve to have a say in the development, operation, and revenues generated by our protocol moving forward.
To this aim, a portion of the team’s governance token reserves will be airdropped to all affected users who have deposited their wUST into the GOGO wallet by 30/05/2022 12PM UTC.
GOGO wallet address on Polygon: 0x0f9bed5BF64722E233f0e9EBd74161795eFe4489
- The airdrop amount will be to the amount of wUST deposited as well as the number of GOGO coins held in eligible wallets as per 31/05/2022 12PM UTC snapshot. (Eligible wallets are also required to submit a claim form by Friday May 27th 12PM UTC)
- The precise amount will be voted on by the current governance token holders in the first public governance proposal of the DAO as we kick off the road to GOGO v2 deployment.
- Given that over 50% of our affected community members lost less than $5000/each, a second voting article of the GOGO governance proposal will decide whether any recovered funds by insurance and treasury reserves will be distributed proportionally to funds lost, or prioritizing the maximization of median funds recovered per user.
- Currently the recoverable funds that are expected to be in the Protocol and insurance reserve to be paid out right away are $126,000 as of today.
- Only users that have successfully submitted a claim can become eligible for any payout.
We believe this places the community standing ahead of TVL retention, thus offering a more sustainable way forward for the DAOs development.
Furthermore it is consistent with how other protocols are structuring their own compensation plans.
The general plan to airdrop a token to affected users is also in line with past successful compensation plans following major hacks.
Value accrual and payouts:
Our objective is for GOGO’s governance tokens (gGOGO) to accrue value over time in two ways:
1) By indirectly representing a proportional share of the protocol’s owned liquidity reserves. As the treasury reserves grow, so will the floor price to the token’s market cap.
2) By earning a Y% share of the protocol’s generated revenue. This will be paid and made claimable in the form of native tokens harvested by the protocol through the various yield generating pools it will offer.
- The precise percentage of revenue generated by the protocol’s performance fee (currently set to 15%) paid to the governance token holders will be decided through a governance vote.
- The team will strongly suggest that this number should not exceed 50%.
As part of the GOGO v2 launch, we plan to launch risked tiers of investment pools (Low, Medium, High, and Degen). These will generate yields which will vary over time as new/old strategies are added/removed.
Examples of pools we’re planning to deploy:
- LOW risk: Looped single asset strategies farming liquidity mining incentives on money markets. Projected APY: ~10–20%
- MEDIUM risk: Farming of liquidity mining incentives on Uniswap v2 and v3 protocols employing money market leverage to hedge the impermanent loss risks. Projected APY: ~30–80% depending on opportunity
- HIGH risk: An actively managed “Degen” fund that will trade in and out highly speculative DeFi and Play2Earn strategies across multiple blockchains. Projected APY: ~30–40%
For a more detailed projection please visit this spreadsheet and let us know on Discord if you have any questions or feedback.
Our goal is to have the Protocol generate enough revenues to compensate for any losses and pay out eventually more than what was deposited in the USDC pool.
We can only achieve this with an active community that is backing our efforts and supports us with the launch of new strategies and spreading awareness and adoption across the broader crypto ecosystem.
As per the revenue spreadsheet, we are currently looking for a time horizon between 1–2 years to generate enough revenue to have both GOGO holders, as well as affected USDC stakers, generate significant rewards. For instance by Month 12 we expect USD 840,000 to be paid out to tokenholders.
We understand that this isn’t an ideal solution for everyone, but it’s a solution we can reasonably offer in the name of community stewardship. To this respect, we welcome any suggestions and discussions on all these matters via Discord.
Next steps and the exact timeline on the airdrop will be announced next week and we expect the first treasury payout in early June!
Please visit our Discord channel if you want to learn more or have questions in the meantime.
The underlying strategy is visualised here:
- Assuming (a) a certain level of TVL projections, (b) yield APRs, and (c ) a 25% proportional governance power of all affected users as a block, we think that a significant portion of affected users funds may be realistically compensated over the course of a couple years if the GOGO DAO protocol evolves and performs as we expect it to.
- While this offers no guarantee, we believe the only realistic way forward is to align the incentives of our community members with those of all other users and team members pushing for our growth, innovation, and success.
We will be publishing public dashboards for every community member to monitor transparently the performance of the pools. Some examples we use as inspiration are:
Glimpse into our strategies and GOGO v2:
Following our motto, #DeFiMadeEasy, GOGO v2 will bring DeFi to the masses with one of the easiest on-boarding solutions seen in DeFi up-to-date.
Some features that users can expect will be:
- One-click onboarding into DeFi
- DeFi strategies: Delta-neutral, DeFi arbitrage, Leveraged staking, new composable DeFi primitives
- Advanced/ Degen-Mode
- Multi-chain operability
- MUCH MUCH MORE
Some early demo on the direction GOGO v2 is taking (soon to go live!):
GOGO Protocol Disclaimer
**The information contained in this Tweet is correct as of 9:10pm UTC 27th May 2022, but is subject to changes. As new information comes to light from industry sources, updates may be released that change elements of this process.
Some changes may be subject to a community vote. Please contact our team on Telegram or Discord for further clarification on any questions. Community feedback will enable us to improve this process.
This announcement is not intended to provide legal, financial or investment or other advice and we recommend that you do not rely on, and do not make any financial or other decision based, on this announcement.**