Lift.Kitchen (the overview)
Abstract
Let’s say you have a great idea. Perhaps it is a concept for the next best car or phone, a better way to automate industry, or a completely new technology that has never existed before that will change the world as we know it. What is the biggest thing standing in the way of you and your ambitious creation? The individuals with the ideas are rarely the individuals with the capital resources that are required to make an idea successful. The disparity between product building teams and necessary resources leaves a huge number of ideas undeveloped. This untapped potential is what led to a new idea; a decentralized autonomous organization protocol that generates a renewable pool of investable resources for the purchase or development of long-term assets and ideas.
We asked ourselves, what if the growth of decentralized finance, and the staking of assets into a seigniorage protocol could be used to generate a “crowdfunding” structure for any type of buy or build asset? What if this proposed model enabled stakers to generate a large return, provide the ability to exit the protocol at predetermined points, and through token expansion generate a pool of resources for the creation or purchase of long-term assets?
This “daofied” platform is easy to replicate and serves as a launchpad for ambitious teams and individuals that need funding to realize their intentions. The model gives investors a way to limit their risk while maximizing the upside potential of their new ventures. Additionally, it allows them to hold positions in ideas that they identify with and believe in and leverage the biggest emerging technologies today (blockchain and defi) to create long-term viable businesses.
Launching Lift DAOs
We want to create DAOs that extend funding to product building teams who look to solve big human problems. Our focus is to leverage blockchain technologies to automate this investment in a way that benefits investors and product building teams. The use case for this protocol is unlimited. No idea is too big or small: raising funds to help those in need, leveraging capital to expand an existing business, or creating solutions to some of the world’s most difficult problems.
This is achievable through a self-funding protocol that consists of 3 tokens that all work together to bring value to investors and participants in DAO governance and raise funds for ambitious entrepreneurs, all while maintaining increasing valuation of the platform.
Mechanics of the self-funding protocol
The key to making this work is to make a fine-tuned, hardened protocol that is well tested while not burdening the end-user with complex financial instruments. The protocol will allow creatives to access funds quickly so they can focus on realizing their long-term goals. By implementing an ecosystem that contains a stable “peg” token, mintable rewards token, and a governance token, Lift Kitchen DAOs become a financial powerhouse that supports long-term supporters as well as short-term investors. It also provides a stable flow of sustainable capital that simultaneously bolsters the underlying value of the protocol while also providing resources to product building teams.
Yet Another Stable Coin
What is the problem with stable coins?
Current token models have an unrealistic goal of maintaining high value at drastic rates. When the money stops flowing, the model breaks down and many investors are left holding the bag. With so many different currencies in the market today, a more refined solution is needed that doesn’t just rely on money flow to create underlying value. Our stable coin model takes the best parts of past protocols and polishes them to be sustainable long-term.
(lfBTC) Peg Token
The model consists of a peg token (lfBTC) and a control token (CTRL). lfBTC is a rebase token, meaning the supply of the asset will expand or contract to match the value of the peg (wBTC).
The total expansion of this pairing will never exceed 10%.
The peg coin will never be excessively minted regardless of levels above the pegged value.
Minting of lfBTC will never exceed 8% (2% of expansion is allocated to CTRL tokens) per expansion. Furthermore, all minted lfBTC will be controlled by the protocol consisting of the development and Idea Funds.
The selling of newly minted tokens will never press the price of lfBTC below .9 of wBTC. We have designed this system to be self-funding, meaning the value of CTRL is derived from the value of underlying assets (wBTC, Idea Fund, and Idea Fund ventures).
The remainder of the expansion will be paid out in the form of the CTRL (DAO token). CTRL expansion will be paid out to the existing CTRL holders and the people staking our share token (LIFT) in the boardroom. CTRL tokens give holders the power to vote on the way that funds are allocated and any proposals that will impact the DAO protocol.
(LIFT) Share Token
The (LIFT) token acts as a reward token for protocol participants. It is a way for people to take profits without impacting the value of the pools within the ecosystem. LIFT holders can stake their tokens in the boardroom to accumulate CTRL tokens which will give them voting rights. This is a way to incentivize long-term investors who want to have more influence while also giving short-term investors a way to profit that doesn’t impact the future of the DAO.
● Emissions will be paid out to providers of LP to the wBTC/lfBTC and lfBTC/LIFT pools.
● Emissions will be immediately available to liquidity providers at a 90% discount
● Emissions will be immediately available to liquidity providers to stake in the board room with no reduction of emissions. The boardroom can be unstaked on a 1% reduction per day over 90 days.
This token will provide new funds into the protocol to incentivize holders and LP providers to create a strong community and DAO that can produce amazing blockchain products.
Lift Dao Dynamics
● Honesty and transparency are PARAMOUNT
● All code and contracts will be available in GitHub at launch
● Founders and developers are public
● The system for wallets is gamified which incentivizes hodling with time locked staking rewards
● Rewards are available to individuals and groups that help us expand our community, grow our engagement, and promote our mission to build a unique and rewarding DAO.
● Entering staking pools is simple with one click staking from any token into their desired liquidity pool vault.
● Non-crypto investors can put money into the ecosystem via a special purpose vehicle (LLC) for accredited investors.
We believe these new dynamics working in concert will make the stable coin model not only more stable, but far more profitable for protocol participants. This model also provides a reliable long-term return to investors in the form of income resulting from the birth of new blockchain innovations, cash hold interest, and product exits.
The team is committed to long-term success and values the input of investors. The system is designed to be trustless and lean on the opinions of participants that share our vision for creativity, invention, and prosperity.
Proof Projects
Existing tokenomic models of the peg/share system have been adjusted many times in many ways, the result is always the same; a bunch of worthless assets with unfortunate holders wondering what happened. They amount to nothing more than Ponzi schemes because there is a lack of forethought and planning upon the project’s inception.
Credit must be given to some protocols that have made improvements to the model and have been successful.
● Credit Klondike finance for the stabilization fund which has allowed them to survive the slow period and come out with a second synthetic asset and a vibrant community that continues to grow.
● Credit FEI for their massive marketing push that enabled a 1.3B dollar genesis event. And the coupling with a DAO model to give some sense of control to the masses for the future.
● Credit BUILD for the product development-oriented nature of the DAO. And their constant release of new products into the ecosystem.
These examples lack cohesion and open the door for improvement and opportunities to create a more robust system. Bringing these ideas together creates a more refined platform for those looking at high APYs and long-term value. Lift Kitchen is an interactive ecosystem that combines the best parts of the aforementioned protocols with tweaks that create new ways for investors to profit.
How will the DAO work?
At inception, the Lift DAO will have 6 CTRL tokens issued. One to each of the founding developers for their time spent building the initial code and 3 spread across the community of supporters and advisors. Within 45 days we expect the total supply of CTRL to be 15–30.
What is the value of a CTRL token?
The CTRL token formula is
(total fund value) — (value of DAO tokens in the fund. (IE: lfbtc & lift)) / (total supply of CTRL) / 2.
Dividing by 2, ensures that the DAO always has operational capital to deploy into investments. This formula is also managed by the DAO and can be modified via proposals.
(CTRL) token creation
Funds can be sent directly to the DAO at the current formulaic value of the CTRL token through USD currency deposits or exchanging lfBTC or LIFT tokens to the Idea Fund
● Expansion of the lfBTC will issue CTRL as part of the expansion to boardroom stakers and current CTRL owners.
● In the future, the CTRL token may be issued in other ways that create value for the DAO.
Using CTRL tokens
● CTRL tokens will be used in voting on proposals as submitted by CTRL owners; proposals may include modifications to current products, new investment ideas, and approval of expenses.
● CTRL token holders will receive airdrops in the form of ETH based on product revenue, exit events, or if the DAO votes to distribute funds from the vault.
● CTRL tokens cannot be redeemed for the first 45 days of issuance as the price stabilizes.
Genesis Protocol
We will be launching a genesis vault on 4/24/2021. The genesis vault will only accept wBTC as the exchange token.
wBTC will be exchanged for an equal quantity of lfBTC/LIFT tokens that will be automatically be minted and staked into the lfBTC/LIFT liquidity pool on SushiSwap.
During genesis you decide if you want to lock your liquidity for 30, 60, 90, or 120 days. The lockout period you select determines the multiplier you get on your exchange of wBTC.
- 2x multiplier for a 30 day lock
- 3x multiplier for a 60 day lock
- 4x multiplier for a 90 day lock
- 5x multiplier for a 120 day lock
The genesis protocol will then add 50% of the wBTC liquidity and equivalent lfBTC to the wBTC/lfBTC pool. The remaining 50% will be held to ensure the peg value is maintained. Those liquidity pool tokens will be transferred to the Idea Fund to support the protocol. The expansion of lfBTC, issuance of CTRL (DAO control) tokens, and emissions from the liquidity pool will reinforce the Idea Fund to support the value of CTRL (DAO control) token and blockchain product investments.
The minted lfBTC/LIFT will be paired and added to a liquidity pool on the stakers behalf and staked in the VAULT. These funds will have a variable time lock on them in the VAULT to enable us to provide the multiple X returns to early stakers.
After all funds are collected, the Genesis Vault will terminate and no longer hold any value or be an active contract.
Idea Fund
The Idea Fund is a holding fund for all the emissions that the LiftDAO stable coin protocol produces. The value held in the Idea Fund is available to CTRL token owners via redemption or voting for interest distribution. The DAO is in control of the Idea Fund and how it utilizes the funds it accumulates.
The Idea Fund will be initially funded with all the wBTC exchanged at the time of genesis and will hold the initial liquidity for the wBTC/lfBTC pool. Holding this pair will produce emissions in the form of LIFT, which the Idea Fund has custody of for staking or redemption with the same penalties for unstaking that were mentioned earlier. The staked emissions from the Idea Fund will generate CTRL tokens of its own for the Idea Fund to exchange with investors for lfBTC and LIFT. The Idea Fund will follow ALL the same rules as an individual investor when it comes to platform tokenomics.
The Idea Fund will continuously grow, via expansion, emissions, and rewards. Additionally, the Idea Fund can grow if someone directly converts wBTC/lfBTC/Lift tokens at the current value for CTRL tokens. Lastly, this DAO is a hybrid with traditional accredited investors that are purchasing CTRL tokens with FIAT via our special purpose LLC.
At the 45-day mark of the protocol, the CTRL and Governance aspects of the DAO will open to allow the submission of proposals to add to our list of product ideas, existing ideas will be voted on for funding, acquisitions of other platforms will be discussed, and interest will start being paid out to our CTRL token owners.
Additionally, the Idea Fund will be used to stabilize both liquidity pools with purchase and burn events associated with lfBTC and LIFT as voted on by the DAO.
Expected Rewards Payout
2–3% daily. How did we reach this figure?
Emissions: we have modeled our initial pricing formula for the LIFT token with the following equation:
(SUM of all Liquidity Pools at Genesis) / (SUM of Weekly Emissions) / (10)
Why 10? Then number makes all the math work in favor of protocol participants. We have run the numbers and rigorously tested the equation for weeks with the help of a professional mathematician. The above formula will produce a formula that reliably delivers approximately 11% weekly (1.5% daily) APY to the lfBTC/LIFT pair, and 7% weekly (1% daily) APY to the wBTC/lfBTC pair. These are the launch APY and will immediately adjust based on the buying and selling of LIFT.
We have set up every element of the APY generation as a configurable variable for the DAO to adjust the protocol. Emission rates, Variable Reduction rate, lfBTC/LIFT buybacks and burns, % allocations across Dev Fund, Idea Fund, and CTRL Expansion. We will be able to maintain these rates in perpetuity.
Conclusion
The LIFT KITCHEN DAO platform is BUILT FOR HODLERS
We have a variety of protocol components that are appealing to hodlers and disincentivize sellers.
● LIFT Emissions can be paid out immediately at 90% discount off total amount earned or at 100% of earned value after 90 days of staking.
● Genesis Investors have a 30 up to 120-day lock on their lfBTC/LIFT in the liquidity pool to support the multiple on their exchanged wBTC.
● CTRL is not immediately redeemable; CTRL will become redeemable by the Idea Fund at the 45-day mark.
● The DAO will protect investors by rapid protocol modifications if issues arise. The Idea Fund can allocate funds to create additional revenue opportunities for our CTRL holders.
Contact
visit us at: http://lift.kitchen/ or join the chat at: https://discord.gg/gbqnjFSqrX
