PGM-XX: Spiral DAO x Paladin strategic partnership & Token Swap

Paladin Governance Management (PGM) PGM - Unapproved
1

Summary:
Sign a partnership between Spiral DAO and Paladin. Swap SPR with 125,000 PAL with a 14 day TWAP.

Context & Reasoning:
As Spiral launches new strategies to grow its strategic assets, we have realized that Paladin and SpiralDAO have significant potential synergies.

Paladin is a DAO that has over 2 years of experience in vote markets which are illustrated by two core products: Quest, a gauge incentive marketplace processing more than 250,000$ of incentives weekly, and Boost, the only boost marketplace for veBoost.

SpiralDAO has already began using Paladin to stack veSDT boost in order to grow the power of its sdCRV. It is highly likely that Spiral also starts using Quest as a fixed incentive model seems perfect for Spiral’s goal of growing its treasury by maximizing revenue that can be squeezed through the gauge vote discounts.

This means that Spiral will start to become a strategic partner for Paladin. As such, we have been suggested to do a token swap.

Rationale :
The aforementioned swap is of 125,000 PAL, representing 1.25% of the circulating supply (0.25% FDV) . This would enable Spiral to indirectly benefit from all fees spent on vote incentives.

Currently, $PAL can be staked or locked for $hPAL in the Holy PAL mechanism to earn more $PAL and get voting power in the Paladin Governance. The creation of an incentivised PAL/SPR pools is also being explored.

Additionally the partnership will help Spiral benefit from our years of experience to help optimize the bribe strategy and extend it to other potential tokens. Since our tech scales easily on other veTokens, if Spiral creates demand on a new market, we could easily deploy it on demand.

There are also significant unannounced works on Boost type products that could be explored to further the partnership and grow the LP farming activity of Spiral.

Finally, Paladin not only offers competitive fees of 4% on the bribe market but has a partnership program in place to have these fees reduced over time. This is essential, as the larger Spiral’s treasury becomes, the more costly it would be to run our vote incentive mechanisms efficiently.

Means:
125,000 PAL and cross-marketing efforts.

Sustainability:
No future actions required.

Voting Options:
For/Against/Abstain

  • For
  • Against
  • Abstain
0 voters
3 Likes
2

Hello ser, thanks for writing this proposal !

There are mostly informations about Paladin, but not a lot about Spiral DAO and there might be ppl not familiar with it, could you share a quick intro of the project, the SPR tokenomics / use cases and why Paladin would benefit in holding this token please ?

Did you already decided how to allocate the PAL if approved, or will it be voted by the Spiral DAO ? If 2nd option, what is the allocation you would pick ?

What are the DEX & parameters considerations discussed this pool ?
Also, would it be incentivized by Spiral DAO ?

The fees sharing program mostly depends on the Quest weekly volume and can currently decrease from 4% to 2% (except for ecosystem partners holding at least 10% of a veToken supply supported on Quest) so depending on the Spiral weekly votes incentives budget, the fees can update.

However, correct me if i’m wrong but considering the strategic voting power controlled by Spiral DAO, and assuming that you’re thinking about/having a POL strategy, creating important vote incentives might not be an issue since the DAO will receive back most of it by voting for its pool.

Additionally, the weekly volume threshold is not for one gauge but for one project, meaning that if you’re creating vote incentives for several pools, it will be taken into account.

Looking forward to read your answer and discuss about synergies between both projects !

1 Like
3

There are mostly informations about Paladin, but not a lot about Spiral DAO and there might be ppl not familiar with it, could you share a quick intro of the project, the SPR tokenomics / use cases and why Paladin would benefit in holding this token please ?

Spiral DAO is a DAO dedicated to fixing inefficiencies in veTokenomics in un-cannibalistic way. It tries to decrease sell pressure for all yield tokens liks CRV / BAL / CVX / AURA / FXS, while achieving the best performance possible due to a massive POL and a bizarre tokenomics.
SPR token may be considered as a gOHM analogue which works as a efficient “always growing”

What are the DEX & parameters considerations discussed this pool ?Also, would it be incentivized by Spiral DAO ?

It’s only a point for consideration and is out of scope of this proposal, actually.

Did you already decided how to allocate the PAL if approved, or will it be voted by the Spiral DAO ? If 2nd option, what is the allocation you would pick ?

As we try to be non-cannibalizing, I believe we either will stake it in hPal, or try to yield farm with it in Paladin gauges in different protocols, while allocating decent support of voting power to them.

The fees sharing program mostly depends on the Quest weekly volume and can currently decrease from 4% to 2%
Yes, and 2% is pretty interesting for us, to cut our costs and increase our efficiency.

Major prospects for Spiral DAO is boost market for veSDT and veCRV(!sic).

1 Like
4

Thanks for the feedback, could you share more details about the “bizarre tokenomics” and why Paladin DAO would benefit in holding this token please ?
Is there a way to accumulate stables, eth or strategic assets with it ?

Of course, but it does not prevent from mentioning the parameters discussed imo

Nice, agree that farming might be the most synergistic solution especially if the Spiral DAO participates in Paladin gauges voting

I actually had an idea about this, lmk your thougts on it (happy to draft a different proposal for Spiral DAO if needed)

From what I’ve seen Spiral is onboarding a lot of projets, and most of these already have vote incentives campain or looking to create it, but if each project was using Quest individually, they would most likely pay 4% fees because of a low volume.
The same would happen to Spiral because I checked the treasury Spiral DAO does not own 10% of a veToken supply yet to reach the ecosystem partner status

However, integrate the Quest management into Spiral might help improve the situation, by mutualizing the Quest budgets for all projects participating, making it easier to reach the min fees paid (2%) without ecosystem partner or requiring Spiral to spend the full amount. I believe there are two solutions for this:

1) Integrate a Quest iteration on Spiral UI:

This was done in the past and can be shipped by the Paladin core team (if they agree ofc)

Pros:

  • Allows any projects to directly create it from Quests from Spiral directly,
  • Mutualizes the budgets because from Paladin view, all Quests would be created by the Spiral contract
  • Almost no extra management from Spiral DAO

Cons:

  • Requires each project to create its own Quest
  • Requires Paladin Core team to dev the iteration
  • Requires Spiral Core team to implement it on the UI & monitor

2) Collect bribes budgets from all projects and create the Quests internally at Spiral

This might be easier to implement as a contract receiving incentives should be enough but would require much more management over time to create the Quests for each projects:

Pros:

  • Very smooth UX for all projets using Spiral
  • Mutualizes the budgets because from Paladin view, all Quests would be created by the Spiral contract
  • Could actually bring fees lower than 2% for Spiral if you add a fee depending on the total volume
  • Does not requires the Paladin core team to dev the iteration

Cons:

  • Requires more extra management & monitoring from Spiral DAO
  • Requires an UI update from Spiral DAO

Both solutions are very synergistic and aim for the same goal: Grant Spiral DAO the best Quest terms while growing the Quest userbase.

Looking forward to explore more synergies between Paladin & Spiral !