Decentralized Liquidity Provision and Staking: What is MoonDeFi?

Decentralized Liquidity Provision and Staking: What is MoonDeFi?

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When Examining to the decentralized exchanges, it is very clear that this can solve many of the problems of their centralized counterparts, including the risk of hacking, mismanagement, and arbitrary fees. However, decentralized exchanges have their own problems, mainly lack of liquidity—which means a lack of amount of money sloshing around an exchange that makes trading faster and more efficient.

That’s where MoonDeFi comes in. It’s trying to solve decentralized exchanges’ liquidity problem, by allowing the exchange to swap tokens without relying on buyers and sellers creating that liquidity.

Below we explore how MoonDeFi works and how it could become one of the most popular decentralized exchanges on Ethereum.

MoonDeFi

• MOON, the MoonDeFi Protocol token, is live!
• MOON contract address: 0x71924a8d733ae1bbc18d243e1deb56e767440eb6
• 69% of the MOON genesis supply is allocated to MoonDeFi community members, a quarter of which (20% of total supply) has already been distributed to past users
• To start, MOON is available through four liquidity mining pools: MOON holders may vote to add more pools after an initial 30-day governance grace period

Community-led Growth

Since its inception, the MoonDeFi Protocol (”MoonDeFi”) has served as trustless and highly decentralized financial infrastructure.

Inspired by Ethereum’s vision, we have long committed to the ideals of permissionless access, security, and immutability, all indespensable components for a future where anyone in the world can access financial services without fear of discrimination or counterparty risk.

Now rivaling centralized incumbents on daily volume, MoonDeFi’s success to date — achieved without involvement of the core development team since deployment — indicates that there is considerable demand for permissionless financial services.

Having proven product-market fit for highly decentralized financial infrastructure with a platform that has thrived independently, MoonDeFi is now particularly well positioned for community-led growth, development, and self-sustainability. The introduction of MOON (ERC-20) serves this purpose, enabling shared community ownership and a vibrant, diverse, and dedicated governance system, which will actively guide the protocol towards the future.

MoonDeFi has always embraced the tenets of neutrality and trust minimization : it is crucial that governance is constrained to where it is strictly necessary. With this in mind, the MoonDeFi governance framework is limited to contributing to both protocol development and usage as well as development of the broader MoonDeFi ecosystem.

In doing so, MOON officially enshrines MoonDeFi as publicly-owned and self-sustainable infrastructure while continuing to carefully protect its indestructible and autonomous qualities.

MOON Allocation

210 million MOON have been minted at genesis and will become accessible over the course of 4 years. The initial four year allocation is as follows:

• 69.00% to MoonDeFi community members 144,900,000 MOON
• 18.25% to team members and future employees with 4-year vesting 38,325,000 MOON
• 12.50% to investors with 4-year vesting 26,250,000 MOON
• 0.25% to advisors with 4-year vesting 525,000 MOON

A perpetual inflation rate of 2% per year will start after 4 years, ensuring continued participation and contribution to MoonDeFi at the expense of passive MOON holders.

A Retrospective

MoonDeFi owes its success to the thousands of community members that have joined its journey over the past two years. These early community members will naturally serve as responsible stewards of MoonDeFi.

20% of MOON 42,000,000 MOON can immediately be claimed by historical liquidity providers, users, and redeemers/holders based on a snapshot ending November 1, 2020, at 12:00 am UTC.

12.95% pro-rata to all 32,455 historical LPs 27,195,000 MOON

~27 million MOON are claimable by historical liquidity providers. The formula accounts for LP liquidity on a per-second basis since the deployment of MoonDeFi v1, ensuring that rewards are weighted towards LPs that provided liquidity when total liquidity was low.

6.95% split evenly across all 158,769 historical user addresses 14,595,000 MOON

210,000 MOON are claimable by each address that has ever called the MoonDeFi contracts. This includes ~5,000 addresses that have only ever submitted failed transactions — love you guys.

Community Treasury

With 20% of tokens already available to be claimed by historical users and liquidity providers, the governance treasury will retain 49% [102,900,000 MOON] of MOON supply to distribute on an ongoing basis through contributor grants, community initiatives, liquidity mining, and other programs.

MOON will vest to the governance treasury on a continuous basis according to the following schedule. Governance will have access to vested MOON starting November 1 2020 12:00am UTC.

YearCommunity TreasuryDistribution %Year 157,960,000 MOON40%Year 243,470,000 MOON30%Year 328,980,000 MOON20%Year 414,490,000 MOON10%

Team, investor, and advisor MOON allocations will have tokens locked up on an identical schedule.

Liquidity Staking (Farming)

An initial liquidity mining program will go live November 16 2020 12:00am UTC. The initial program will run until February 16 2021 12:00am UTC and target the following 29 pools on MoonDeFi:

• MOON/WBTC
• MOON/ETH
• MOON/DAI
• MOON/UNI
• MOON/USDC
• MOON/USDT
• MOON/LINK
• WBTC/USDC
• ETH/USDT
• ETH/USDC
• ETH/DAI
• ETH/LINK
• ETH/UNI
• ETH/WBTC
• AUSDC

1,000,000 MOON will be allocated per pool to LPs proportional to liquidity.

These MOON are not subject to vesting or lock up.

After 30 days, governance will reach its vesting cliff and MoonDeFi governance will control all MOON vested to the MoonDeFi treasury. At this point, governance can vote to allocate MOON towards grants, strategic partnerships, governance initiatives, additional liquidity mining pools, and other programs.

ActorUseIncentiveContributionStaking LP Token HoldersStaking (Farming)Staking LP tokens & earn 30%-45% (APY)Price stability, community growthOther ERC-20 tokens holdersStaking (Farming)Staking tokens & earn 30%-40% (APY)Price stability, community growthMOON token holdersStaking (Farming)Staking tokens & earn 150% (APY)Price stability, community growth

Governance assets

A community-managed treasury opens up a world of infinite possibilities. We hope to see a variety of experimentation, including ecosystem grants and public goods funding, both of which can foster additional MoonDeFi ecosystem growth. MoonDeFi has set the standard for automated liquidity provision: it is now time to set the benchmark for responsible but radical, long-term aligned on-chain governance systems.

MoonDeFi governance will be live from day one, although control over the treasury will be delayed until November 11 2020 12:00am UTC. Control over the MoonDeFi fee switch is subject to a 180 day time lockdelay.

These grace periods provide the MoonDeFi community enough time to familiarize itself with the governance system, bring in a diverse and high-quality set of protocol delegates, and begin discussions and communications around potential governance proposals.

MOON holders are responsible for ensuring that governance decisions are made in compliance with applicable laws and regulations. To help facilitate this, the fee switch has been initialized to a contract MOON holders can use to vote on tokens for which they will collect fees. The community is encouraged to consult knowledgeable legal and regulatory professionals before implementing any specific proposal.

The MoonDeFi team will continue to have no involvement in protocol development, auditing, and other matters. Similarly, team members will not participate directly in governance for the foreseeable future, although they may delegate votes to protocol delegates without seeking to influence their voting decisions.

In the meantime, MOON holders will have immediate ownership of:

• MoonDeFi governance
• MOON community treasury
• The protocol fee switch
• moondefi.eth ENS name

Initial governance parameters are as follows:

• 1% of MOON total supply (delegated) to submit a governance proposal
• 5% of MOON supply required to vote ’yes’ to reach quorum
• 10 day voting period
• 2 day timelock delay on execution

Next steps

All historical users, liquidity providers can claim their MOON now. Liquidity providers in the preliminary set of targeted pools can deposit their liquidity tokens. Farming began on November 16th 2020 12am UTC.

An Announcement from the MoonDeFi Team

Currently, airdrop & bounty and marketing programs are being launched, the total reward is up to 10 million MOON, equivalent to 10 million USDT. All interested parties need to do is to follow the airdrop bot t.me/moondefi_airdropbot and write blog content or make videos about the project, with each individual reward being up to 150 MOON (~150 USDT).

For more detailed information on these two programs, please visit this link.

MOON Token Sale 

MoonDeFi is carrying out a Token Sale at the moment. Users who would like to participate in MOON Token Sale should visit moondefi.org. The details of the MOON Token Sale are as follows:

Symbol: MOON

Token type: ERC-20

Total Sale: 32,000,000 MOON

• Pre-Sale (3 Dec 2020 – 31 Dec 2020) :8,000,000 MOON  –  Price: 0.25 USDT
• Public Sale Round 1 (01 Jan 2021 – 31 Jan 2021): 12,000,000 MOON – Price: 0.5 USDT
• Public Sale Round 2 (01 Feb 2021 – 28 Feb 2021) : 12,000,000 MOON – Price: 0.75 USDT

MoonDeFi Community

MoonDeFi Contact

MoonDeFi contract & token addresses

• Contract: 0x765b2d50dE69219A418383F79a4973568d537F90
• Token: 0x71924a8d733ae1bbc18d243e1deb56e767440eb6

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