NCFP-31: Wrapped NYZO on Fantom Blockchain

The goal of this NCFP is to raise interest and awareness of NYZO onboarding new users outside CEX worlds.

We will do so by bridging NYZO to the Fantom blockchain. Fantom is a EVM-compatible, decentralized blockchain with low fees.

To make this operation successful we need the help from the NYZO community. For this reason we will offer a one-time possibility to the NYZO community members to bridge their NYZO to the Fantom blockchain and earn rewards by providing needed liquidity to the wNYZO/DAI pool.

Apart of awareness regarding NYZO, this NCFP could show that a lot can be built on top of NYZO and could attract additional talents for our community projects.

The whole operation will work in 5 phases:

1. Community Call for Liquidity Pool

The nyzo users can bridge their NYZO to participate to a one-time issuance of wNYZO and contribute to the wNYZO/DAI liquidity pool on Fantom by matching the wNYZO with DAI. The minimum participation goal is 500k∩.

The cycle will reserve 500k∩ as a reward for the liquidity providers on Fantom.

The community call will last 2 weeks.

  • Week 1: announcing the intention to provide liquidity, wallets can submit a small NYZO tx with a data string indicating the amount of NYZO they intend to bridge and provide to the liquidity pool. A script will verify that the funds are available in the participating wallets. If the 500k∩ goal is reached, the bridge operation will be activated in the second week.
  • Week 2: nyzo users can send their NYZO to the cycle community wallet by indicating a Fantom address in the sender string (a tool will help to format correctly the strings).

After the contribution windows a snapshot will be taken.
No more funds shall be sent to the cycle wallet.

2. wNYZO minting

The wNYZO token will created on Fantom blockchain with a one-time mint. Additional mint will not be allowed by the contract, the minting function will be disabled. The mint amount will depend on the contributed NYZO by the users.

  • 500k wNYZO for the farming reward
  • n wNYZO from the user contributions

500k wNYZO will be allocated the farming pool smart contract and the remaining n wNYZO will be dispatched to the matching wallets pointed by the step 1, phase2 operation.

3. Liquidity Pool Rewards

A SpookySwap wNYZO/DAI liquidity pool will be seeded with a small amount. Any NYZO user can deposit is own wNYZO, matching them with their own DAI in the liquidity pool. The LP token can be staked in the wNYZO website to earn the liquidity pool rewards. The rewards will be 5’000 NYZO/day for 100 days.

4. One-way wNYZO->NYZO bridge

In any moment is possible to bridge back wNYZO to the NYZO L1 blockchain. The bridge function in the wNYZO smart contract will ask a NYZO wallet address. A user interface will be available in the wNYZO website to help the bridge operation.

5. wNYZO back to NYZO

A bridge bot will monitor the fantom chain for wNYZO bridge operations. A monthly cycle TX will be sent with the total bridged wNYZO amount. The cycle will sign this TX and the bridge bot will distribute the NYZO amount to the user wallets (minus 0.25% NYZO fees).

The burn operation all are txs on ftm chain. They will be regrouped to be paid by a batched cycle tx, to avoid too many votes. The bot will collect this public data and provide a report of what ftm txid go into the cycle tx. Anyone can check the amounts, addresses are correct, exist, and are not dup. I could provide the data extraction code for easy check.

The bot will be coded by us, but it can be run by anyone. Cycle tx could be prepared by a bunch of users running it for the same range of FTM blocks and agreeing on the list for instance.

The operation will be supported by the following devs:

  • Etherschtroumpf - Fantom side: token, airdrop and farming smart contracts, wNYZO website
  • NyzoSy - NYZO L1 bridge tool: NYZO data string formatting and bot operations

NCFP amount: 50’000 ∩

TL; DR;

  • phase 1: send a simple tx from the wallet with the funds, tell how many wNYZO you’ll want
  • phase 2: send the funds to the cycle with the proper data
  • wnyzo goes live, your ftm wallet gets as many wNYZO as native nyzos you sent to the cycle
  • after phase 2, no more wnyzo can be minted.
  • you match the wNYZO with DAI, and feed the SpookySwap liquidity pool
  • you get wNYZO rewards from the farm (5000 n per day for 100 days * your share % in the pool)
  • anytime after launch, you can burn wNYZO you own and send them back to Nyzo native token. This is a non immediate process that requires cycle signature and will regroup several transactions in a single batch.

I refined the text and added a TL;DR;

Cycle TX submitted.

You can check the status here:
https://nyzo.today/votes/1d55e1358e1b59c1af2c4be7368612b1f2d6c52751654480cc6190d063a599e3ad2738985f911d1ce05daee6c5425c908e258a30a8f3be3851ca04ad49646c0b

As you can see in the Promise Page (Nyzo.today) we unfortunately didn’t met our goal for the promise phase.

According to the NCFP-31 approved by the cycle we have to stop this operation.

This operation was a very interesting experience, finding ways to operate a one-way bridge with the current technology stack available, however I intend to follow the agreed NCFP and not to continue.

Without the proper traction this initiative has not a lot of chances to be successful and could be negative for the whole NYZO ecosystem.

In the next few hours I will totally refund the reward sent by the cycle (50’000 ∩). A proof of refund tx will be provided in this forum.

Thank you everyone for the inputs and interesting discussion.

Refund TX