A Letter from the Founder

His heart is never gonna wither

Come on everybody, time to deliver

Greetings, Yield Farming Community!

Since my last letter to you, we have had some great accomplishments together! The first layer of our farming system, PolyWantsACracker (LITHIUM), was an even greater success than I would have imagined. We peaked at over $17M TVL, $2M total native liquidity (TNL), $4M native token market cap, and even $3M in the LITHIUM single staking pool. We offered consistent returns to our investors from the beginning to the end of Layer 1's emission period. These numbers, and the differences between our results and those of other farms, have resulted in lots of questions: How did we do it? What is our magic ingredient?

Well, those of you who read my last Letter from the Founder are aware of my initially stated reasons why we would be successful. Whereas other farms tend to expand their supplies much too quickly for token values to be sustainable (even major players with 9- and 10-figure TVL), we proceeded with a more manageable 11.5%/day initial supply expansion rate. Whereas almost no other farm provides an amount of liquidity on the same order of magnitude as its income, we used 50% of our Layer 1 presale funds to provide $150k in liquidity for our native token. We put 60% of the deposit fees into a buyback wallet, and after doing $200k in buybacks, the community even voted to change our buyback policy to carry our buyback wallet forward to Layer 2 because we had such unexpectedly good financial health.

But the above does not really get at the biggest reason for our success. Lithium did not have merely above average performance. In contrast, it was almost historically unrivaled in terms of metrics such as the percentage held in single staking. One could actually argue that LITHIUM has been “the most desirable farm token ever.” Why is that? Well, I’m glad you asked.

The most important reason for LITHIUM’s success is that we are using a shitfarm as an onramp to something else. LITHIUM is going to be swapped for the native tokens of our brand new Layer 2 system, Stadium Arcadium. As you will read in the rest of these documents, we are going to accomplish many firsts with Stadium Arcadium, and we believe that these are fundamental, game-changing innovations. Our farms and pools are going to emit both an ownership token, MYFRIENDS, and a farming token, ARCADIUM. And the single staking MYFRIENDS pool will reap huge rewards. Throughout these next 2-3 weeks, we are going to test the parameters of the new system, and then we will tweak some parameters and relaunch the system in a more long-lasting way in Layer 3.

In our new tokenized ownership system, users will get to feel like they have more of a vested interest in a crypto project than ever before. Whereas most yield farm operators have an apparent financial conflict of interest with their participants, whereby the arrows of money flow from the participants to the operators, we have devised a system whereby the interests of the principal operators and users are aligned. In fact, Stadium Arcadium does not even have a fee wallet! Creators only receive any fees because we have MYFRIENDS tokens staked, just like the rest of you (we also stake some MYFRIENDS for infrastructure).

We feel that our new tokenized ownership system takes us beyond simply being a vanilla yield farm that is slightly better run than others. We believe that we have devised a system that brings multiple fundamental innovations to the table. It eliminates the “fee handling issue” whereby farm owners usually run off with the majority of funds, and we predict that it will make users feel like they are a part of something greater than what they usually see in DeFi. Indeed, we also feel that our concept of tokenized ownership could transcend yield farming and be applied in other types of projects as well, as it provides a truer representation of ownership benefits than any of the “governance tokens” we have seen in crypto (from historical predecessors like DASH to more recent attempts such as UNI). We feel that we may thus be purveying something that has philosophical significance beyond its immediate purpose.

If we pull off even one-tenth of what we set out to achieve, this is going to be an amazing journey throughout the layers of our farming system. But sadly, many in the yield farming community still have not seen the light and try to compartmentalize us in terms of their understanding of other yield farms. These people still ask us daily about the more mundane aspects of why our system is superior to others. We also distinguish ourselves in these aspects.

One thing I notice when people ask questions about our success is that most are still unaware of the importance of limiting relative supply expansion. Although it is a critical issue, and we are addressing it, most farms are still bad actors with respect to supply expansion. Most farms simply expand supplies too rapidly, and this screws over their native token investors. Of course, there are certain unscrupulous individuals who continue to advocate highly inflationary tokens as if they are worthy of long-term investment. A certain recent parade of advocacy for a certain "VC-funded" inflationary token comes to mind. Many such “hype tokens” have historically had extremely poor metrics, with rapid supply expansion and/or tons of extra tokens minted (XRP comes to mind). And worst of all, some of these teams have enlisted unscrupulous influencers to pull the wool over naïve investors' eyes with sophomoric nonsense like "Stegosaurus TA," which is intended to divert people's attention from the poor tokenomics.

We are also asked every day about whether our code is at risk of falling victim to the same "transfer tax token bug" that reduced the native tokens of several well-known yield farms (Yeld, Cerberus, Garuda, Ketchup, etc.) to zero price and lost investors untold sums of money. The short answer is, no, we are not vulnerable, and a slightly more in-depth answer is that the solution is a simple 3-line code fix that we thought of ourselves even before any exploits were instantiated. All we have to do is check the balance the contract RECEIVES instead of the balance the sender SENT. Our auditors have confirmed that we have fixed the bug.

These questions are understandable, as people have lost money to issues such as this. And if we dig a bit deeper, we can see symptoms of this form of systemic rot even in actors that had previously clean track records. There was one farm in PolyWantsACracker’s size bracket that disappeared up its own asshole due to the transfer tax token exploit while we were operating: despite being "aware" of the fact that their code was vulnerable to the exploit, they added a bugged pool anyway, leading to the instantiation of the bug. Regardless of who did the actual exploiting, it seems strange that anyone would be willing to give the same team another chance after that, as they have significantly miscarried community trust by allowing investors’ money to be lost.

In contrast, the PWAC team has shown nothing but motivation to support its project and bring you upgraded systems that help us to live out our ideals. We think we can make more money by succeeding than failing. And the team being MYFRIENDS holders like you ensures that we wouls not have any motivation to act like so many other teams in the yield farming space who rug pull, steal from, or otherwise exploit their own participants.

We are excited to embark on this journey of joint shitfarm ownership with you! Godspeed,

Kurt

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