Introducing the first Spiral Locker: a liquid locker for Maverick protocol
the most well-thought tool for liquid voting in the space.
The DAO has voted in favor of this big step so now we are ready to announce that we are launching the first-ever Spiral Liquid locker — a liquid locker for Maverick protocol — a novel AMM and one of our core protocols as a DAO. We believe that the capital-efficiency framework and the new horizons that Maverick brings to the whole DeFi will be extremely beneficial for our DAO’s growth and goals.
How do liquid lockers work?
Liquid Lockers is a well-known DeFi solution for long-term locks. They provide a possibility to benefit from a long-term lock while also remaining liquid. When locking their tokens in liquid lockers, users receive a tokenized version of the locked tokens with the possibility of transferring and trading while utilizing the long-term lock-ups’ benefits.
This is an extremely efficient tool for those who want to maximize their capital utilization, so we believe there is always a strong reason to build liquid lockers for any token that can be locked long-term for additional benefits. This tool is also useful because, as it always is with locked tokens — the bigger your share is, the greater your power is. Uniting all Spiral users’ votes increases their efficiency.
From a certain perspective, long-term locks can be considered an artificial irrationality. The market tends to absorb this irrationality over time. As we at Spiral DAO are committed to making the most out of the existing irrationalities and thus maximizing efficiency, we believe our vision of liquid lockers may be more well thought out than all other existing solutions and will contribute the most to what we believe is beneficial for the ecosystem in general.
Liquid lockers were first introduced in their “initial” form by Convex and Yearn. However, even though they had a lot of benefits, these liquid-locking solutions lacked voting power and only distributed different yields from different sources. But many people and projects are seeking direct voting power combined with liquidity. Considering that Stake DAO, one of our core partners, revolutionized and reimagined liquid locker solutions. And now, it’s our time to take a step forward.
Spiral Lockers
We believe we’ve created the most well-thought design of liquid lockers in the space.
Spiral DAO focuses on the two most important features that users seek in liquid lockers:
1. Deep liquidity
With deep liquidity, anyone can enter or exit the ecosystem without a huge price impact and impermanent loss. The more liquidity there is — the more rational the market is. This is why Spiral DAO is committed to designing the most liquid liquid lockers in the space utilizing a complex liquidity incentivization and vote incentives program. We believe our architecture will result in a strong peg and deep liquidity for our liquid lock wrap.
2. Keeping your voting power & earn vote incentives
We believe that users’ alienation from their voting power is a huge issue that makes liquid locker a caricature of a liquid locker. It’s not a real liquid locker if you don’t share the ability to vote with your users. Spiral DAO will bring liquid lockers in their true form — equipped with all the best core features.
MAV Spiral Locker specifications
sprMAV will be our first and yet-only liquid locker and a great challenge for the overall design.
Reward currency: sprMAV voters will receive vote incentives and fee sharing for their votes in the form of SPR from auto buybacks in exchange for vote incentives from external protocols.
Our fees: The voting fee will be 0% during the first 3 months. After this period it will gradually grow to 17%. This voting fee will be utilized for the incentivization of sprMAV holders as well as Spiral DAO Treasury needs and strategies.
Biweekly voting: Those who choose to manage their voting strategies by themselves will be able to do so. There will also be a possibility to delegate voting power to Spiral DAO to receive straightforward voting incentives without worrying about voting every two weeks or delegate the votes as wished.
Spiral DAO will also utilize its own Spiral Locker for locking MAV from the Treasury to support sprMAV deep liquidity and engage in liquid voting strategies.
About sprMAV
sprMAV is a liquid version of veMAV and can be obtained by locking MAV tokens into Spiral Liquid Lockers. sprMAV will have a couple of options to utilize their liquid votes efficiently.
1. sprMAV Single-Staking
All sprMAV holders who want to take part in voting can stake their tokens on Spiral DAO, vote on Maverick regular voting or delegate their votes as they wish + receive additional sprMAV incentives.
2. sprMAV/MAV liquidity on Maverick
sprMAV can also be deposited into SPR-boosted Spiral’s sprMAV/MAV liquidity pool on Maverick. Maverick allows extensive distribution customization, which Spiral DAO utilizes to promote peg support and deep liquidity by incentivizing LPs.
3. Other sprMAV LPs on Maverick
Later on, Spiral DAO will launch other pools on Maverick to allow sprMAV holders to remain truly liquid and earn great rewards.
Spiral DAO will partner with important parties building on top of Maverick and will incentivize building deep sprMAV liquidity.
MAV Spiral Locker Initial Incentive Program
Maverick is launching its tokenomics in the following months. Before that, they will distribute 10 million veMAV tokens to MAV lockers during Maverick Ecosystem Incentive Season 1.
Spiral DAO aims to capture a fair portion of the Maverick airdrop and distribute it to sprMAV holders in the form of liquid-locked sprMAV. This distribution is planned to be conducted in 3 stages following a hybrid model combining direct distribution and progressive incentives. Distributing the airdrop this way will help to avoid liquidity rag and sprMAV depeg, strengthening long-term sprMAV liquidity. Spiral DAO will take a 10% fee on the initial distribution for future incentives and other DAO needs.
As has been voted upon by the DAO, initial sprMAV incentives that will be distributed during the first month after launch (stage 1) are minted in advance. The initial sprMAV supply will be 100k sprMAV. This amount will be covered by the airdrop, or in case the airdrop share is less than expected, it will be covered by the DAO’s Treasury.
The plan for initial incentive program may be changed according to the decision of the Spiral DAO community.
1st stage: 1 month starting from 11th of July.
Initial sprMAV will be distributed to sprMAV holders in sprMAV single-staking and sprMAV liquidity once it is deployed.
2nd stage — 1–2 months.
The DAO will vote on whether or not and how much sprMAV will be minted. ~35% will be distributed to sprMAV staking. For the remaining sprMAV, we propose to try an experimental approach similar to veTokenomics: emission weights directed to each sprMAV liquidity pool will be chosen by sprMAV holders during voting.
Depending on how the 2nd stage goes we believe it will be curious to see what happens if sprMAV voters will be able to direct emissions not just into sprMAV pools on Maverick but to any pool on Maverick they believe should be incentivized. Essentially, this will start MAV emissions before Maverick actually starts them itself.
3rd stage — one-time Airdrop.
This distribution is the greatest. Once the Maverick incentives are dropped, Spiral DAO will distribute 70% of the remaining sprMAV to all sprMAV holders proportionally to their sprMAV share. The snapshot is taken at the same time as Maverick’s one.
The future.
The remaining airdrop will be distributed as incentives later on together with additional incentives from DAO strategies and MAV emissions.
Stay tuned 🌀
