It’s late Friday night. The virgins are in the basement playing Starcraft over a local area network. We’re throwing a party upstairs to celebrate our successful NFT farming program launch. All the cool kids are here— Chad, Thad, Amber, Becky, and Jenny. There’s a knock at the door. STACY has finally arrived.
Who is STACY?
STACY is the governance token for CHADSWAP — an eventual cross-chain AMM which chads.vc is building in partnership with Meter and launching in three phases (more information about the CHADSWAP phases here).
Phase I of CHADSWAP will be distribution of STACY. Above all else, this phase must accomplish two things:
- Incentivize deep liquidity of high volume pairs to move to Meter’s smart AMM (CHADSWAP Phase II)
- Ensure STACY ends up in the hands of holders with a long term vested interest in CHADSWAP’s success
Our original design for STACY emission was heavily based off of Sushiswap. But trends change fast in cryptocurrency and even faster in DeFi and, as dozens of failed food experiments have shown us, these farms only end in one way — by REKTing the governance token holders who are the very people you should be rewarding most. We can do better.
STACY Tokenomics
To better align STACY token value with long-term STACY holders, we have opted for a farming model which combines deflationary farming with sushiswap style liquidity incentives.
Token Generation Event
The initial and total supply of STACY will be 1 billion — all STACY will be minted on TGE and no more STACY will ever be minted again. As CHADS is deflationary (currently 66.8 million), this ensures that not only will there be many STACY for each CHADS but also the number of STACY per CHADS increases over time.
Following the deflationary farming model, we will bootstrap STACY liquidity with a liquidity generation event (LGE). Contributors will be able to send ETH trustlessly to our LGE smart contract for a period of 24 hours. The LGE will have a hard cap of 690 ETH and funds will be sent to Uniswap once either 24 hours is finished or the hard cap is met. STACY will have a maximum market cap of 690 ETH ($274,000 at the time of this article) on launch. A percentage of the raise will be reserved as guaranteed allocations for top CHADS and EMTRG holders.
Following this period, the collected ETH and 1 billion STACY tokens will be converted to Uniswap LP tokens for the STACY/ETH pair. LP tokens will be distributed to liquidity contributors who may then stake them for STACY rewards (detailed in LP Token Staking section).
All liquidity will be locked in the Uniswap pool forever — STACY/ETH LP token holders will not be able to withdraw liquidity and will be aligned with the long-term price of STACY and, by extension, the long-term success of CHADSWAP.
The only way to obtain STACY and add liquidity to the STACY/ETH LP pool following LGE will be to market buy STACY from this Uniswap pool or receive it as staking rewards. As liquidity can never be removed from the pool once added, new stakers provide constant upward pressure on the price of STACY.
Token Burn
All transfers and sells of STACY will be subject to a 2% (tentative) burn. All burnt tokens will contribute to LP staking rewards. Buying STACY is exempt from this burn.
Liquidity Pool Burn
Every 24 hours, 1% of the STACY in the STACY/ETH liquidity pool is burnt and redistributed to LP token stakers. This does not change the USD value of STACY/ETH LP tokens. It merely increases the price of STACY relative to ETH by 1% (adding upward pressure to the price of STACY) and increases APY for LP token stakers.
This function, hereafter referred to as popping Stacy’s cherry, must be called manually. As only true CHADS are capable of popping cherries, only wallets holding at least 10,000 CHADS will be able to call this function. Wallets with at least 1,000 EMTRG will also be able to pop cherries. Chads who successfully pop Stacy’s cherry will be awarded with a small amount of STACY from the burnt amount.
Vesting
To further ensure STACY holders are aligned with the long-term success of CHADSWAP, all STACY staking rewards will be subject to a vesting period. 25% of the rewards will unlock immediately and 75% will unlock linearly over 1 year.
Dev Share
To provide funds for future STACY development, 5% of the burnt tokens will be sent to a dev share account. These tokens will be used for contract audits and as funds for future development of ChadSwap.
LP Token Staking
For CHADSWAP Phase I to be successful, it must incentivize liquidity of pairs other than STACY/ETH until migration to Phase II, Meter’s smart AMM. Thus, all LP token pairs will share in STACY staking rewards. Here is the initial list of reward-eligible LP tokens on CHADSWAP and their proportional allocation of the staking rewards (as pairs are added and removed these allocations may change):
STACY/ETH — 75%
CHADS/ETH — 11%
EMTRG/ETH — 6%
USDC/ETH — 4%
WBTC/ETH — 4%
NFT Staking
To further integrate the components of the CHADS ecosystem together, we will also be implementing an NFT staking system which grant bonus multipliers on staking rewards. These multipliers will increase the base rate of STACY staking rewards for CHADS/ETH LP providers. Only 1 NFT max of each type can be staked at a time (i.,e only one Andre Cronje can be staked at a time, but you can stake an Andre Cronje and a Benn Godenzi simultaneously). Staked NFTs will be subject to a stake and burn, the STACY rewards for staking the NFT will expire after a set amount of time and the staked NFT will be burnt. Once staked, NFTs cannot be unstaked except for specifically noted exceptions:
All Chads of DeFi Common NFTs — 15% bonus, 24 hours duration
All Chads of DeFi Rare NFTs — 15% bonus, two weeks duration
All Inmates of DeFi Limited NFTs — 15% bonus, unlimited duration can unstake anytime
Additional NFTs added to https://chads.limited over time will also grant STACY farming bonuses.
We will also release a Stacies of DeFi NFT collection which can only be bought using STACY. These NFTs will grant farming bonuses on all CHADSWAP LP pairs and be subject to a similar stake and burn mechanic. STACY used to buy these NFTs will be redistributed as staking rewards, raising the APY of CHADSWAP.
STACY farming will launch on October 26th. Phase II migration will occur within 6 weeks after this launch.
Too Chad, can’t read (TCCR)
1) Stacy is a deflationary yield farm
2) STACY initial market cap is 690 eth ($274,000). Participate in the Liquidity Generation Event (LGE) to get STACY.
3) Pop stacy’s cherry to get more STACY
4) Stake LP tokens to get STACY (get STACY by staking CHADS/ETH, EMTRG/ETH, and other pairs)
5) Stake NFTs to get better STACY rewards
6) Fun begins October 26th
For information and updates join here
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