FLOOP Tokenomics part 1

Powering our Babylon Ecosystem

Published in

CaviarNine

3 min readJun 13, 2023

As we gear up for the much-anticipated Babylon upgrade, we are excited to share updates about the evolution of FLOOP tokenomics and delve into the promising ecosystem we are building.

Introducing Babylon FLOOP

In the Babylon era, FLOOP will transform into a new token that will power our evolving ecosystem.

For holders of the original FLOOP tokens, the transition will be smooth and effortless. You will be able to bridge your old FLOOP tokens one-way into the new Babylon FLOOP on a one-for-one basis. One crucial characteristic of Babylon FLOOP is that it will be burnable, causing the supply to potentially decrease over time — if the DAO chooses a non-zero burn rate.

While it will possess the feature to be burnable, it’s important to note that the actual rate of burning is under the purview of the FLOOP DAO, and could be set to zero.

Please note that it will not be possible to bridge Babylon FLOOP back into the old version. Some may even choose to keep their original tokens and not bridge.

The FLOOP DeFi Ecosystem

Our DeFi ecosystem will be powered by a dynamic suite of products:

CaviarSwap Aggregator: Evolving from its predecessor, DSOR, this will serve as a unified front-end gateway to all liquidity on the Radix network.
Multi-token Liquidity Staking Pools: Offering diverse opportunities for liquidity provision.
Concentrated Liquidity Pools: Delivering focused opportunities for high-impact liquidity provision.

In addition, we are working hard on developing a range of new products that promise to further expand the functionality and versatility of the FLOOP ecosystem. Stay tuned for further details about these innovative additions as we approach Babylon.

Fee Structure in the Ecosystem

In our ecosystem, fees will comprise a small fixed component, supplemented by an additional dynamic liquidity fee.

Liquidity providers (LPs) will receive these liquidity fees. Fixed fees, on the other hand, will be directed towards the FLOOP Treasury smart contract.

Here’s the interesting part: a certain percentage of the FLOOP Treasury fees will be converted into FLOOP and may be subsequently burned, thereby reducing the overall supply of FLOOP over time.

The remaining portion will be secured in the FLOOP Reserve vault, earmarked for potential future use cases such as offering long term LP rewards, collateral or insurance against smart contract risk, or possible future distribution to FLOOP holders.

We will provide more details on the fee structure and product details as we move closer to the Babylon launch.

Enter Babylon CAVIAR

In addition to the evolution of FLOOP, we are also introducing Babylon CAVIAR tokens. These will be airdropped to liquidity providers active within the FLOOP ecosystem.

Babylon CAVIAR, like FLOOP, will be a newly bridged token set to power future DeFi structured products that CaviarNine plans to build, contingent on the success of Babylon.

FLOOP DAO: Decentralized Governance

Babylon FLOOP tokens will also have a significant role to play in the FLOOP DAO (Decentralized Autonomous Organization). The DAO will use FLOOP tokens to vote on various activities within the ecosystem, such as the burn rate (if any) on FLOOP Treasury fees and FLOOP Reserve activities.

In summary, we are excited about these developments and believe that the new FLOOP tokenomics will greatly enhance our DeFi ecosystem. As we move forward, we will continue to share updates and more detailed information. Stay tuned, and thank you for being a part of our journey!

Continue to FLOOP Tokenomics part 2

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