A Letter from the Founder
Dear Blockchain Platform Community,
Greetings! It is I, Kurt, checking in with a third Letter from the Founder for the launch of our Layer 3 platform, Darkside Finance! In this letter, we will be happy to report what we have done, where we are, and where we are going.
We are thrilled about the success of both Layers 1 (LTIHIUM) and 2 (MYFRIENDS & ARCADIUM)! Layers 1 and 2 maxed out at over $17m and $33m TVL, and our native market cap reached $4m and $14m in those two layers, respectively. The community has clearly decided that tokenized shitfarm ownership is a concept worth pursuing! And in Layer 3, we refine the parameters of the basic tokenized ownership system and add in several other all-new auxiliary features.
Darkside Finance is intended to take us beyond our shitfarm origins and make us permanently sustainable. We have many new game-changing contracts that we are adding to the system. Their primary purpose is to provide funds for our famous dividend split: dividend token stakers receive 75% of all deposit fees and 50% of all other platform revenue, and farming token price support receives 25% of all deposit fees and 50% of all other platform revenue. The addition of these outside contracts to bring revenue into the system should ensure our survival and maybe even remove the stink of the "shitfarm" label from us entirely! But these ancillary contracts can also have some other game-changing functions of their own, beginning with our all-new on-chain OTC engine.
The new contract we are adding to Darkside Finance that could have the most fundamental impact is our all-new on-chain Over-the-Counter (OTC) peer-to-peer trading engine. This engine facilitates direct trades between partners and can be used by active communities to transfer native tokens, preventing them from being dumped on AMMs. This can avoid price impact and slippage in both directions (for both buyers and sellers). This could provide a fundamentally new way of trading that enhances any farm's longevity, but it could also be an appealing way to trade for people with large amounts of any ERC20 token. We will be charging a 0.12% volume fee on all trades, payable as platform revenue, so we hope to see a large trading volume through this engine.
We are also adding a Loot box contract that allows the user to pay tokens to receive three "cards" that can receive either NFTs or other prizes like stablecoins. We intend to use this as part of our indirect buyback efforts: we can accept our native tokens and emit cards loaded with items like USDC, WETH, or rare NFTs! We can also use lootboxes that accept coins like USDC and emit random tokens and NFTs as a fun distribution mechanism. We can use this to increase the visibility of new NFT series, which are also stakeable for the first time in Darkside Finance!
One other area into which we intend to expand is the relatively low-hanging fruit of gambling-related gaming. We have an on-chain slot machine in development, and next we intend to produce the most cryptographically secure Poker game we can. We believe that casino games have a very large addressable audience, and each type of casino game even provides unique marketing opportunities and new groups of people to whom we can introduce our services.
With all those new features coming, it would be easy to ask why we did not just bolt them onto one of our other farming layers. In fact, I hear some of you asking, "Kurt, why did you set up these three layers in such rapid succession?" Well, that's a great question! Glad you asked. There is a specific reason for each of the three layers:
Layer 1 (LITHIUM)
To establish ourselves and introduce our superior metrics
Layer 2 (MYFRIENDS & ARCADIUM)
To test the parameters of our all-new tokenized ownership system
Layer 3 (CZDIAMOND & DARK)
A long-term implementation of our all-new tokenized ownership system with tuned parameters
All-new features to increase sustainability: OTC, Lootbox, gaming/gambling, NFT staking/distribution
We are happy that Layer 2 accomplished its main goal! It was intended to serve as an introduction of our new tokenized user ownership system and to test its properties. We experimented with many forms of "extreme benefits," such as giving regular users a large percentage of ARCADIUM that would have been destined for creator accounts, and accelerating the rate of ARCADIUM emission quite steeply throughout the emission period. We also gave out all the USDC dividends from deposit fees immediately. We maintained the basic setup of our two-token farming system with tokenized ownership for Darkside Finance, but we eliminated the distribution of creator ARCADIUM (we now get none) and slowed down the rate of ARCADIUM emission acceleration.
One other all-new change to the farming system in Darkside Finance is that we have implemented gradual USDC dividend release. Although it was enjoyable to receive immediate distribution of USDC dividend benefits, as we saw during the $166k cash drop event where that amount of USDC showed up in dividend harvests immediately, that setup was not exactly conducive to people sticking around. We observed that some investors took the immediate USDC benefits and then declined to stay with us until the next layer. So we have implemented a system that emits the USDC on a gradually decaying time curve. We believe that this will increase the incentives for long-term participation and keep the system healthier!
One other new change for Layer 3 is a slower emission rate of both the farming and ownership tokens relative to the overall supply. In contrast to the 11.5% initial daily supply expansion of LITHIUM, and a similar overall supply expansion rate for ARCADIUM, we are beginning the expansion of DARK at approximately 4% of its initial supply per day. Those who read our Layer 1 Litepaper may contextualize this change in terms of our case study. We examined several other farms' initial emission rates, and the group with the lower emission rates (Cerberus, Thoreum) had initial supply expansion of about 4%/day. Those two farms had good longevity barring hacks, so we have adopted the 4%/day expansion rate for DARK. For CZDIAMOND, we have adopted a Bitcoin-like halving mechanism that can emit a decaying supply essentially forever.
We hope that these changes will make Layer 3 last forever! We know how hard that is to promise, but we hope that Darkside Finance is long-term, and we strongly feel that it will last at least 60 days (at least two halving periods). Ultimately, the community will decide whether to transition to a Layer 4, but if we do so, we will use similar methods as before, with your ownership share transferring forward!
We appreciate you joining us on this journey to the Dark Side of the Moon, and thanks for choosing Sugandese Tokens!
Best Regards,
Kurt
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