[RFC] - Stopping Rebases

Governance Archive [RFC] Request for Comment
103

Perhaps the only practical value in the rebase, which is purely aesthetic but nonetheless, a strong reason to preserve it for the time being, while preparing the community for the inevitable.

Those supporting rebases are not doing so because they are selling off their rebase as soon as they get it (at least not the proponents of rebasing in this forum).

Is this the most efficient way to bring in revenue for the treasury from wMEMO demand?

We have a few items this DAO must address in order to turn this protocol into a blue chip DeFi brand. Top of the list is:

  • Revise the TIME/MEMO/wMEMO structure to exploit advantages of the tokens and delist TIME as it is a point of weakness. Here’s why:

Arbitrage desks consider this structure as unfriendly, thus we are not benefiting from price discovery closing the gap vs. backing price.

The “cringe” effect of offering a 70,000% APY is terrible for marketing, especially since it is in fact nothing more than a marketing gimmick, like offering free toasters for a new checking account that charges you one toaster per month in fees.

The lack of liquidity in TIME is reflective of an unhealthy protocol, which we are not.

wMEMO is superior for multiple reasons: multi-chain, listings, liquidity, etc…

wMEMO needs to incentivize large traders to trust the price and easily recognize if there is positive arbitrage, thus bringing market price close to par.

wMEMO should become the exclusive token for the protocol, and the only tradable token. It should serve as the only point of entry into the protocol.

Because Dapp’s cannot directly communicate with off-chain information, things like liquidation, algo order flow, and risk management need price oracles in order to function. With real time off chain data delivered to the smart contract, automated smart contract executions can handle most of the repetitive functions of the treasury and lay the foundation for a multi-manager fund or one that is purely automated and designed by the DAO community, or a hybrid.

It is highly likely that Oracles will increase trading volumes, thus improving liquidity. Liquidity attracts liquidity. And a rising price needs liquidity.

104

Did you read what I replied to?

It was pertaining to people holding time. they are getting diluted every day 3x a day.

so yes I do feel sorry for these people holding time.

105

How do you delist TIME?

Where can i bridge MEMO and what exchange is MEMO listed on, and where is all the MEMO liquidity?

wMEMO is already the token that you want MEMO to become.

106

It’s a treasury operation. But for this protocol, it would involve removing TIME from Wonderland.

My boy, you missed the part about “items the DAO must address…”.

Including the very obvious, which you so helpfully restate for all those whom you feel sorry for.

107

May I advise to stay on topic and stay away from the personal comments.

@kyle same for you, try to be more civil during your comments, people might be more inclined to listen.

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108

Reading this, idk if you are for or agaisnt stopping rebase, but…

MEMO is not multichain, cant be listed and there is no liquidity… All of these things are for wMEMO and can’t be done for MEMO because of it’s rebasing nature afaik.

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109

Just to correct you here - Wonderland started in Spetember and reached ATH 2 months after launch.

The FUD you are likely referring to (Sifugate) happend in the end of january.

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110

From a standpoint of the financial impact (to the treasury and holders), you’re right it really doesn’t matter. But from the standpoint of integrity and decreasing the workload of the mods, I think it does.

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111

Correct. I joined in october and untill january things were fine. Sure it went down a bit and up again, but then in January we got what you call Sifugate and things went downhill from there.

112

I have an idea, let’s schedule this change for immediately following q3 redemption. Then when people freak out that rebases are going to end, (for no reason), they will have an easy way out, stay with the new no-rebasing wonderland, or redeem and leave if you don’t like it.

113

Or those who don’t like the rebase should leave, perhaps another option?

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114

These are very good points. Can you suggest some mechanisms for increasing TVL? Since we stopped mints, and wMEMO (or MEMO) looks like it will float freely ultimately, what is the method for which to raise TVL?

115

I’d like to see how many that redeemed didn’t immediately re-enter via wMEMO on TraderJoe (the discount on Sushi for USDC was massive).

Putting any matter for the end of the redemption will just give those most polarized a way to increase their position size at the expense of the treasury.

116

There is like $210 of wMEMO liquidity on TJ? Also zero liquidity of wMEMO/USDC on sushi?

But for certain there was people who re-bought back in.

This can only happen when people are selling under-backing. It is not a infinite cycle that can continue.

117

How about giving a meaning of owning rebases means actual earnings of real interests i.e., to increase a portion of wMemo? And as someone else suggested here, to post a new low apy should come in first before the total disposal of completely obsolete rebases as you newly claimed over in last six months since the downfall. Plz stop treating us like it’s our fault not be a fully educated investors by not knowing the concept of rebases — as chaotic as it was compared as cookies in a jar or all investments has an inherent risk. The lure was there & the bait was set. It’s like one day you simply decided to shrug off by off listing a “calculator” as if it never existed.

All I’m saying here is all those “earned” debases should be rewarded in one way or another in actual dollar values as means of recouping something from massive loss probably will never see again.

118

The fact of all this is that rebases WERE “profitable” at one point when the game of minting was still involved. Since that has been turned off at the start of the year, rebases are an empty shell of a mechanism that serve no other purpose than to keep your share of the market cap (which you can do with wMemo anyway). It is like a game that lost its fundamental aspect that made it a game. By turning it off, to 0% apr, we are just bringing users’ attention back to the actual goal of the game, which was to gain more market share. At the moment, this can be done by selling your farming rewards for more wMemo. The way forward for Wonderland and wMemo is just being a simple token. No more gimmicks with rebase game mechanics.

119

Neither do I. I am trying to take both sides of the argument to convince myself one way or the other… still not convinced it’s necessary yet, but in the near future, as part of a larger overhaul, with plenty of lead time for the community to know it’s happening…

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120

Lots were selling under backing

121

You would have to be unaware of the arbitrage to have not taken advantage. If you love the protocol, and this gives you more, then you have to.

122

I think you missed the compounding factor in this.