Community Run Creator Coin-heat check and feedback

Sanctum LSTs
1

With Creator Coins being released into beta today I’d like to propose a community LST that also creates a new interest bearing fund to reward seed holders.

The LST would be clpSOL and the fund token would be $CLP which stands for community liquidity pool.

The purpose: This would use the SOL rewards from the LST to buy back $CLOUD and $INF which would then be put into LPs to capture trading fees In CLOUD/SOL and CLOUD/INF.
$INF already capturing value through trading fees would mean a double dip creating additional value.

$CLP fund This fund would include $CLOUD, $INF, and possibly other tokens depending on the market conditions. Maybe convert 10% of rewards to $USDC or an interest bearing stable like deUSD.

Seeds The seeds earned from holding clpSOL could be redeemed for $CLP or other benefits. Since you have to hold the creator coin in your wallet to get seeds, that means you can’t restake it for extra profit. This would be a way to still capture rewards from your creator coin in your wallet. The fund would be 1/1. Meaning the total number of seeds divided by the TVL would be the value of each seed.
This would allow seeds to gain in value not only by the trading fees of $INF and the LPs but also because there would be other ways to redeem seeds which would lower supply while increasing the amount each seed represents in the CLP.

Seed Redemption
The seeds would have multiple redemption option, NFT raffles, NFT WL from collabs, Subscription Fee to a small private group that will offer hard to get benefits from collab partners, trading bot access, memecoin airdrops, unlisted presales, possibly DAO membership, etc.

The more is redeemed for supplemental options, the more each seed is worth in $CLP.

$CLP will only be released as the seeds are redeemed so initially it’ll be scarce, because you can hold the seeds that will become rarer it actually benefits holders to keep the seeds rather than take the $CLP, once you redeem for $CLP you still gain by the the fund increasing value but you’ve locked in your exchange ratio. I hope that makes sense.

RISK
Nothing comes without risk. The fund is guaranteed to increase in tokens but is not guaranteed to increase in value. Impermanent loses in the LPs could occur, it could end up one sided if one of the tokens value changed significantly in a short time frame between rebalancing.
On top of that the market could turn and tokens in the $CLP fund could lose value. If SOL dips then the INF would obviously lose value but because INF gains value with transaction fee captures, it would hold up way better than the underlying SOL by itself would.

Added Benefits to the community and project
There are additional benefits of this LST also.

  1. This adds buy pressure to $CLOUD and $INF
  2. It removes $CLOUD and $INF from the market which makes it scarcer.
  3. It adds even more liquidity to the market without taking away trades through Infinity pool as the LPs are not paired with LSTs.
  4. It obviously adds another LST to Sanctum, creates more fees, and adds TVL.
  5. Because the rewards rely on finding partner rewards, it would bring a lot of new eyes to Sanctum.

Let me know what you think, any concerns, anything you can add, etc. All feedback is welcome or just say hi so I know people saw it.

4 Likes
2

Hi. After a 1 minute in depth analysis after reading I would support the idea and buy the CC.

3 Likes
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firstly thanks for taking the time and for writing a proposal with some detail

so these are just my initial thoughts:

Unless I’m mistaken (or its changed) the reward for the creator coins per 1.0 coin held is circa $1 a month so to have any impact it would take a signicant input/buyin from the community.

Additonally theres only a very small % of tokens released currently so would always be a uphill battle against the that tide

Who would run and maintain the fund, tbh sounds like it got the take up it looks like big task for someone(s) to take on.

Re LP pools, again who would be responsable, what would the security protocol be (for instance multisig) would the LP keys been burned (like you can on meteora)

3 Likes
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It would require a lot of partnerships where something like NFT projects are willing to allocate WL or NFTs in exchange for the marketing. Like any creator coin, it takes a lot of buy in to be successful but unlike offering something like a bag of coffee that has to be paid for, this would offer perks that are free to the LST operator but in high demand for users. NFT projects in particular are always looking for promotions ahead of mint and offer WL to do it, those are easy to get for projects.
So the buy in will be natural as there’s in demand rewards but the fact that you also have the option of holding seeds for the interest bearing CLP means that you take less risk and actually never give up your rewards like you do with other creator coins. I think it sells itself.

Not for sure what this means

This is a problem that doesn’t need to be solved until we know if there’s interest to start it, no need stressing the details when it’s just a concept at this point. I’d love to brainstorm this later if it looks like people want to get it started.

[quote=“JohnnyTheClown, post:3, topic:1133”]
what would the security protocol be (for instance multisig)
[/quote]Multisig with trusted custodian for spare keys would be used just like any other project, no responsible team holds all of the keys themselves or uses single key wallets, I would never invest in anything that didn’t take security seriously.

The LPs can be set to auto-managed so the protocol rebalances them automatically, Once created no one would have to do anything else to it unless it was being shut down or moved to another protocol so the same people handling everything else would easily be able to handle the LPs. There isn’t much work to do once everything is set-up. The real work is for the community & social lead that has to find partners to keep a consistent supply of rewards coming in and promote them on socials.

2 Likes
5

Thanks for the reply, noted

1 Like