Tokebase Dispatch: Edition 8 - February 28, 2023

Danica Swanson & Kadesh

News and Editorials

State of the Reactor - February 10, 2023
The team discussed the upcoming Tokemak GP (v2) design, and explained the plans for expansion to a General Purpose Liquidity Network.

In this State of the Reactor call, the team discussed the design for Tokemak GP (General Purpose), lessons learned from Tokemak v1, and highlights of the v1 accomplishments.

Key Takeaways:

  • The vision for Tokemak GP (aka v2) is to create a symbiotic relationship between parties willing to provide liquidity, and to be utilized by both LPs and DAOs.
  • The foundation of Tokemak GP is Liquidity Management Pools (LM Pools), which are able to accept external supply and rewards while being managed by the Pool Coordinator Logic. This liquidity is then deployed to external venues.
  • Rather than be dependent on fees earned from liquidity deployments, Tokemak v2 will earn platform fees, which will result in more consistent revenue and rate discovery.
  • V2 will be a phased launch, prioritizing the markets that are most useful to participants.
  • One of the primary goals for v2 is for Tokemak's rates to become the market rates.
  • Tokemak has continued to support its Reactor projects and LPs. The team is proud of surviving turbulent market conditions that caused many other projects to fail.
Tokemak Unveils Liquidity Management Pool Details
The team revealed some details about the first Liquidity Management Pool, which will serve liquid staking derivative (LSD) liquidity.

In the final week of February, Tokemak unveiled some details around the first Liquidity Management Pool (LMP), which will launch as part of Tokemak GP. As per Liquidity Wizard on Discord:

"LMPs allow for the discovery and creation of a transparent Liquidity Rate for different market segments, starting with LMP-1 which will serve LSD liquidity. LMP-1 development is actively underway."

Cycle Movements and Dev Updates

Feb 1: Cycle 249 -> 250 rollover complete. Total rewards: $28,376.54.

Feb 8: Cycle 250 -> 251 rollover complete. Total rewards: $27,557.89.

Feb 15: Cycle 251 -> 252 rollover complete. Total rewards: $28,980.37.

Feb 23: Cycle 252 -> 253 rollover complete. Total rewards: $27,529.18

In February, front-end work focused on the v2 UI build, with additional work done on the v1.5 UI (including light mode/dark mode) and vesting UI. Back-end work continued on v2 specs in sync with strategies, and v2 contract development including the pricing contract, pool management implementations for regular assets, and pool testing. Strategy and comms work included GP tokenomics, v2 article and Gitbook drafting, volatile Pair Reactor strategy, and Discord security updates.

General Updates for All Pilots

Feb 3: The team announced that they will be front-loading projected expenses for each month to keep payments timely – i.e., these will be announced at the start of each month, rather than quarterly. Any variance at the conclusion of the month will be noted. Notably, expenses have been cut 5% from January 2023, and ~16% from November 2022.

Feb 2023 expenses:
Strategy/Biz Dev: $82,309
Operations: $50,898
Developers and Designers: $226,685
Smart Contract Audits: $69,335
Professional Expenses (Legal and Taxes) : $41,349
Marketing & Community: $35,298
Administrative and Other:  $33,406
Total: $539,280

Feb 7: Liquidity Wizard announced that Tokemak's biggest investors (including Framework, Electric Capital, and others) are very excited about v2 and have agreed to extend their token lockups for six more months, with the linear 12 month unlock commencing thereafter. The Wizard also mentioned that v2 will include a staggered release of new products, and stated that "one specific liquidity management pool in v2 will open Tokemak to an addressable market that is ~20x larger than what was possible with all of v1." He encouraged Pilots to keep their notifications on because "'ll only ramp up from here." CT responded to the news.

Feb 20: Check out the new Tokemak docs!

Feb 23: The team announced that in light of the recent actions against stablecoins, the legal counsel to the Tokemak Foundation advised Tokemak to pre-transfer approximately $3M into fiat in the Foundation account. This ensures that more than 6-8 months of expenses are covered in the unlikely event that the on/off ramps are disconnected. The monthly expenses are now being paid from the fiat balance until it needs to be topped up again.

Feb 24: Liquidity Wizard announced that active development for the first Liquidity Management Pool (LMP-1), which will serve LSD liquidity, is underway.

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