In this town hall, Charles is joined by Samson, Justin Bebis, kickflip and Crypto A S to discuss $OATH, Ethos Reserve, Reaper Farm, rebrand, reliquary and more.
Read our notes below to learn more.
Rebrand
In 2022, the Byte Masons team made a commitment to themselves that they are only going to be punching up as far as BD and partnerships go.
There will be a massive overhaul for the Reaper Farm UI this year.
They’ve been working on a lot of back-end infrastructure for Reaper.
The purpose of the $OATH rebrand is to inspire their digital anarchy and cryptographic cypherpunk roots.
Ethos Reserve
It is a stable asset primitive.
It is a zero-interest lending protocol that rehypothecates collateral then funnels the yield that is generated through that.
They are trying to create a new financial base layer for the decentralized markets.
Their top level is secured by Chain Link and the underlying can be managed depending on risks block by block.
Their system can take all of the underlying assets, earn yield on them, take that yield and essentially convert a bunch of volatile assets into a stablecoin that can distribute yield without all of the volatility.
The end result is a stable asset that can be built to a degree the same as $stETH.
$ERN is the stable asset that’s backed by decentralized collateral and designed to be completely uncensorable.
TODAY’S EDITION IS BROUGHT TO YOU BY ALLUO
Get super-easy single-sided exposure to Curve, Convex and Frax.Convex pools and access complex strategies normally out of reach.
Alluo; DeFi for everyone: App.alluo.finance
The stability pool is the system which allows users to deposit $ERN and uses the Ethos liquidation engine to pay off people’s debts and liquidate them.
Bonded $OATH is an 80/20 Balancer pool token that is used for staking by Ethos Reserve.
If users stake $bOATH into the protocol, users will earn the payback of any loan redemption.
The 80/20 $bOATH has a lot of benefits allowing the protocol to grow liquidity and to retain a lot of its potency compared to a single-stake solution.
The pool allows for an easier path to rewarding users for taking on the risk in a compliant manner.
By using an asset that’s exposed to risk, they can be compliant far easier.
Single-staking will not allow them to operate in certain jurisdictions.
Their goal is for $OATH to be given as much utility as possible.
Rehypothecation
The collaterals used to take out an $ERN loan are sent to the vaults that are earning yields and the $ERN can be staked into the stability pool then all that yield that the collaterals are generating goes back to stakers.
For $bOATH, users create an 80/20 LP pair then stake it into the staking pool to earn all of the fees generated by the protocol.
$ERN stakers in the stability pool also earn liquidation income.
They are making sure that every step they take for Ethos Reserve is a step forward.
Network
It is going to be on Optimism.
Arbitrum doesn’t have an addressable market for Ethos.
Optimism is the fastest growing stablecoin liquidity base and $ERN will be the 1st decentralized stablecoin in the network.
They spent the last 9 months building relationships with Optimism.
It will eventually be multi-chain.
Their commitment is on L2s and $ETH mainnet.
Redemptions
There’s a chance that 90% of the people may want to withdraw at once but everything is designed to be fully collateralized and liquid.
If a user doesn’t have a position in Ethos Reserve but they bought $ERN off the market, the only time this happens is if $ERN is under $0.995, the users can still go to Ethos Reserve and redeem the asset for exactly $1 worth of collateral.
The collateral comes from the least collateralized position in the system.
The assets that are backing the reserve which are $BTC and $ETH will not have the similar situation like what happened to $UST and $LUNA.
There’s no chance of a death spiral because the assets are real $BTC and $ETH and it’s not a coin or token that’s just being minted.
Liquidations
It is one of the two systems of DeFi where most of the liquidations are handled by smart contracts.
They are going to be pushing collateralization ratios or LTV ratios to the limit that will be an effort overtime.
For users that wish to stack $ERN, they will be able to leverage the Reaper vault as well in which the system will take care of everything else.
Why Ethos Reserve
It would allow users to access the most competitive Loan-to-Value or LTV ratio on any decentralized stablecoin.
It will give better incentives than any other stablecoin.
The security and models make a lot more sense.
It will be seen everywhere.
$ERN delivers far more value to depositors compared to its counterparts.
The system has been audited already.
Digit
Reliquary is the name of the software that is equivalent to the Master Chef of Sushi Swap.
Digit is powered by reliquary.
Digit is going to be how they power all yields as efficiently as possible within the $OATH ecosystem.
Anything that can impact the $OATH ecosystem will find its way into Digit.
More details about it will be released soon.
The release of Digit will include new emissions, with the goal of attracting sticky liquidity, without using the MasterChef emissions contract like they used before.
OATH Governance System
Their decentralization roadmap is in 3 phases which are introduction, transition and moving into full decentralization.
There are ongoing investigations on what the governance could be powered by.
Their introduction phase will have a governance proposal that will be made by the Byte Masons.
Q&A
Q: Will you have a place where people could buy liquidated assets?
With Ethos, users just need to stake in the stability pool and they will receive liquidated assets with a really good profit margin.
Q: How can the Byte Masons capture more market share?
It is an entirely new innovative DeFi ecosystem that will easily win market share as long as they can socialize the yields and continue to de-risk any of the underlying asset management.
It is a matter of scaling intelligently and diligently.
Q: Is there a possibility of reports including all the details for all the new products that are being launched?
The cut of their back office staff due to what happened in late 2021 to 2022 led to a decrease in communication.
They will improve on communication and reports will be coming soon.
They have dedicated resources on tracking all of the things.
They look forward to leveraging the community to make some of the best reports.
Check out these important links
Want more Notes like this?
We create 10+ of these Notes every day for our members and you can access 2-3 notes per day for free on our site.
Sign up for a FREE Revelo Intel account here