Following the approval of SIP-0078, Sovryn will be deploying on the BOB chain (Build on Bitcoin). This is an exciting and important milestone for Sovryn, which should be leveraged for maximum effect. This SIP proposes to use available SOV in the Adoption Fund, for the purposes of maximizing the rewards that will be generated during the launch campaign BOB have just announced. This SIP is time sensitive, since the launch of BOB’s campaign is in 5 days.
What Phrygian is saying is correct. The bridged eSOV will be at risk, not the original SOV. The time crunch is real and problematic, but in bull markets you have to act fast to take advantage of opportunities. Once the rewards have been collected, this SOV will go right back into the Adoption fund.
I am fully with Saco here. We have no idea who is the team behind BOB could just be a huge rug pull. Imagine losing these funds and they get dumped on the market. We will never ever recover from that. Also this SOV is really needed. emergency funding if we don’t get any funding to extend runway. Biannce listing whatnot. Its crucial we are not playing casino with that. its alls thats left. We have BitcoinOS on the horizon where this is crucial to have incentives etc. Again a rushed poorly thought out BOB related SIP. I am starting to have really bad feelings with this. Feels extremely fishy.
The BOB team are fully vetted, doxxed and have major investors behind them. They are builders who have been in the space for years, through bear market and bull. The likelyhood of a rugpull approaches zero. The chance of a hack is higher than zero. But the funds will be bridged and can be cancelled.
Risk is not zero, but this is an important moment and the points earned will go directly to marketing to large new audiences.
I see this as worthwhile on a risk adjusted basis.
is this “spice farming”, with all the adoption fund, going to benefit Rootstock bitocracy or BOB bitocracy?
are we emptying rootstock to increase BOB sovryn’s deploy?
There is very little information. I want to assume that this is to maintain confidentiality.
I would appreciate if you could explain what is the estimated duration of the time-lock contract, and what is the expected return on these funds. Has it been negotiated, is it known or unknown?
Regarding the unlikely situation in which the esov were put at risk and had to be cancelled, could you explain what it means technically to cancel the esov? Does it mean that the sov would be recovered? That is, there would still be 100 million sov?
Blockquote is this “spice farming”, with all the adoption fund, going to benefit Rootstock bitocracy or BOB bitocracy?
are we emptying rootstock to increase BOB sovryn’s deploy?
Neither. It will be to accumulate points to distribute to LPs so we don’t spend SOV on LP incentives.
Exchequer received a big SOV budget just recently. Couldn’t that be used to lock up some SOV for that 21 day period?
I really don’t like the idea of giving away control over the entire adoption fund to someone else, just to (maybe) receive it back in 3 weeks. That sounds really scammy and is not a solid business foundation.
Lack of transparency. Since Sovryn and the BOB teams know each other, I am just going to assume there is a risk that they are working together to capture 13.8M SOV (~ 24M USD).
“Spice” the meme coin has zero market value now. we don’t even know how much liquidity the BOB team will put. For me, zero rewards with the potential loss of 13.8M SOV.
The opportunity before us on BOB is to significantly increase our market reach. As @Digital_Alchemist points out, its likely that BOB will be a bigger market for Sovryn than RSK. There is an opportunity to cement Sovryn as the leading DEX on BOB, and more than double our market very rapidly.
However, the key challenge is attracting liquidity to the DEX. In the past we have had to do this through SOV incentives. This means that very large amounts of SOV hit the market. We want to avoid that, yet still attract liquidity. We can do this by offering users BOB rather than SOV.
The goal of transferring these funds is to mine a large store of BOB that can be used for this purpose. This is the most economical use of SOV, as the SOV will return to the adoption pool. The purpose of the Adoption pool is exactly that: to promote adoption. Here we have an opportunity to do this, without selling the Adoption fund.
We therefore are balancing two risks:
Risk 1 - Somehow something goes wrong and the SOV is lost. This is possible but unlikely. Ultimately, the canonical SOV will remain on Rootstock chain where we can mitigate any exploit on ETH.
Risk 2 - we will need to flood the market with SOV to attract sufficient liquidity to bootstrap deep liquidity for the SOVRYN DEX on BOB.
One of these risks is unlikely, the other is nearly certain. I prefer the option with lower risk and higher upside, so I support this SIP.
But Exchequer holds a significant amount of SOV already.
Why not use the 9 mil SOV you already received this year from bitocracy?
Are you planning to use that too? If so, would you transfer up to 23 mil SOV to BOB?
Thank you Yago. This gives a much better insight into the potential risks and opportunites.
I will support this SIP. My main reasoning is the opportunity to increase SOVs accessibility and usage while diversifying chains.
This is a No vote for me. Already got 9 million from previous SIP - since you only want to use SOV on BOB chain for 21 days, why you dont use the one that you got already??