AIP-311: Allow for ApeCoin staked in ParaSpace protocol to be counted for voting power

Final AIPs Implemented AIPs
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Authors: ParaSpace, @BoredApeG

Proposal Category: Process

Abstract

This AIP is a reconstruction of AIP-229 to be submitted as separate proposals by each protocol.

The current voting system does not allow ApeCoin staked in protocols, other than ApeStake.io, to be considered in voting power calculations for ApeCoin DAO governance.

This AIP allows for ParaSpace to request Ape Foundation’s assistance in implementing ApeCoin staked for its individual users to count as voting power in ApeCoin DAO governance activities.

https://para.space/

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ParaSpace is a cross-margin lending protocol for full collateralized loans with bundled collateral. In just five months, ParaSpace has achieved impressive results, with up to TVL of $220 million, a leader in the market. We have over 2400 NFTs supplied, over 7,000 users, and $8.3 million in Ape staking. ParaSpace aims to become the world’s leading universal lending protocol, not only in the NFTFi area but also in financial derivatives and real-world assets. Our vision is to allow users to borrow anything against everything. ParaSpace has many advantages, including auto-compounding, auto-repay to save gas, and maximizing staking rewards. We also offer a variety of pool choices, such as p2pool and p2peer. We provide BNPL services, allowing users to buy blue-chip NFTs and enjoy benefits with 0% down payment and immediate profit generation for Staking. ParaSpace also offers special features such as Rare Trait Boost loan limits. Recently, we have launched Instant Unstake Eth, allowing users to withdraw assets immediately without waiting 7-14 days.

Motivation

ApeCoin DAO members have the right to vote, and this right should not be limited by the ApeCoin staking protocol one wishes to use. By supporting this AIP, we can help more users to participate in governance activities and have a say in the future of the DAO.

Rationale

Ape Foundation guiding principle of Collective Responsibility: We leave everything better than we found it.

With this proposal we aim to make an improvement to the voting process that preserves each member’s right to vote.

Benefit to the ApeCoin Ecosystem

Increased governance voting participation.

APE Stakting Statistics 8/1/2023

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Allowing users to vote will benefit both the growth of ApeCoin DAO and the whole NFTfi industry.

Specifications

Ape Foundation will take reasonable steps to determine the appropriateness of ParaSpace’s staked ApeCoin to be counted as voting power in ApeCoin governance activities.

Important considerations include but are not limited to the following:

  • Ensuring no aggregators in voting power (e.g. ensuring the protocol operators do not control the voting power)

  • Proving that ultimate ownership is not centralized (i.e. voting represents individual wallet owners only)

Ape Foundation will work with ParaSpace for implementation.

Steps to Implement

ParaSpace Vaults

BAYC vault: 0xdb5485C85Bd95f38f9def0cA85499eF67dC581c0

MAYC vault: 0xFA51cdc70c512c13eF1e4A3dbf1e99082b242896

BAKC vault: 0xC3d0922aF19D56DEbf426706D27bD5d7Ea48D23C

ApeCoin vault: 0xDDDe38696FBe5d11497D72d8801F651642d62353

P2PPairStaking： 0xf090Eb4c2B63e7B26E8Bb09e6Fc0cC3A7586263B

Together with ParaSpace, the Ape Foundation can potentially create a snapshot strategy which:

  1. Checks the IDs of the BAYC/MAYC/BAKC address deposited into ParaSpace’s (vault above)

  2. Check the staked APE in the ApeStake contract for the IDs found above

Ape Foundation will work with ParaSpace to assess its needs, and if appropriate, the eventual implementation to calculate voting power for end users. Note that this process can change, particularly if such matters are transitioned to Working Groups of ApeCoin DAO.

Timeline

This will be implemented immediately.

Overall Cost

$0 requested from the ApeCoin DAO treasury for this proposal

6 Likes
2

Hi @BoredApeG,

Your topic will be moving to the AIP Draft phase in less than 24 hours. Are you content with the feedback received or do you wish to extend community discussion for another 7 days?

If we do not hear from you within 48 hours after your topic closes, your topic will be moved straight to the AIP Draft process.

We look forward to hearing from you.

-Chris

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Please proceed to Draft for this ParaSpace proposal. Thank you Chris

1 Like
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This topic was automatically closed after 7 days. New replies are no longer allowed.

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Hi @BoredApeG ,

Thank you for your ideas [and the ApeCoin DAO community for the thoughtful discussions]. A moderator will get in touch with the author to draft the AIP in the appropriate template. Once the AIP is drafted and meets all the DAO-approved guidelines, the proposal will be posted on Snapshot for live official voting at: Snapshot

Follow this Topic as further updates will be posted here in the comments. @BoredApeG please see your messages for the next steps.

-Chris

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Hi ApeCoin DAO Community,

@BoredApeG has completed editing their AIP Idea to be their AIP Draft.

Follow this Topic as further updates will be posted here in the comments.

Kind Regards,

-Chris

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Hi ApeCoin DAO Community,

Our team has reviewed and discussed @BoredApeG’s AIP Draft and have sent a list of initial questions. We await answers.

Follow this Topic as further updates will be posted here in the comments.

Kind Regards,

-Chris

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I think getting all the APE that is staked to be able to vote is important, as long as it is the individual who gets the allocation like how it works with apestake.

I have a question do you know how many actual individual wallets are staking that account for this 11.29M APE? As this is over 1 percent of final supply and 3% approximately of the current circulating supply.

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3 Likes
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I agree; thanks bigbull. Per the ParaSpace team, it is presently 3,777 unique wallets.

3 Likes
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Hi ApeCoin DAO Community,

@BoredApeG has responded to our questions and has provided consent to share them in this forum for the community.

1. Has ParaSpace conducted any third-party security audits, and if so would you be able to share them?

Yes, 9 audits and they can be found here: External Audits - ParaSpace

2. Do you provide consent to share these questions and answers with the community in this forum?

Yes

A DAR package is being worked on and upon completion this AIP will move into Administrative Review. Follow this Topic as further updates will be posted here in the comments.

Kind Regards,

-@Facilitators

1 Like
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Given the amount of turmoil the Paraspace team has been in the past several months, I really struggle to find a reason to support them in any official capacity. Let’s not forget that the team’s multi-sig went deadlocked because a large portion of the founding team accused the CEO / founder of commingling funds. There was an immense amount of drama that followed that hurt those staking in the protocol. A large portion of the founding team was pushed out, and a huge portion of the team quit.

I want to see us move away from shadowy services like this, not move towards further supporting them.

4 Likes
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I definitely note your concerns, @mattborchert particularly the recent events around ParaSpace. I do approach this from the perspective that we have an opportunity to bring people into DAO governance versus keeping them on the sidelines. Even though we all know there are additional risks on utilizing these protocols than apestake, the reality is thousands of users have already accepted yield and/or additional liquidity > participating in ApeCoin governance. Participation in ApeCoin governance alone is not enticing these users to leave these platforms, no matter the additional issues/risks they accept using them. Case in point with the situation at ParaSpace, it has not stopped users from being on the platform; the market does whatever the market wants to do. Therefore, the opportunity is for us to broaden participation in governance, which is always advantagous for the DAO.

I also want to quickly note that I have no stake in any of these protocols (BendDAO, JPEG’d, ParaSpace). I look forward to seeing the ApeCoin community ultimately decide which protocol(s) (if any) it wants to allow to move forward with calculating voting power for its users.

3 Likes
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Certainly, and I agree with essentially all of your points. I’m primarily noting my reservations around this platform in particular. That’s not to say that I do not want people who choose to use it to not have a voice.

Appreciate the quick follow-up.

6 Likes
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Hi ApeCoin DAO Community,

We have no further questions for @BoredApeG. This AIP is now under Administrative Review.

Follow this Topic as further updates will be posted here in the comments.

Kind Regards,

-@Facilitators

2 Likes
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Hi ApeCoin DAO Community,

After review, this Topic submitted by @BoredApeG is ready for vote under AIP-311. The proposal will be posted on Snapshot at the next weekly release date and time, which is every Thursday at 9PM EST.

The AIP implementation is administered by the Ape Foundation. Implementation may be immaterially or materially altered to optimise for security, usability, to protect APE holders, and otherwise to effect the intent of the AIP. Any material deviations from an AIP, as initially approved, will be disclosed to the APE holder community.

Kind Regards,

-@Facilitators

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This proposal is live for vote on Snapshot. The voting period closes next Wednesday at 9PM EST.

The AIP implementation is administered by the Ape Foundation. Implementation may be immaterially or materially altered to optimize for security, usability, to protect APE holders, and otherwise to effect the intent of the AIP. Any material deviations from an AIP, as initially approved, will be disclosed to the APE holder community.

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Hi ApeCoin DAO Community,

The voting period has closed for this proposal and it has been accepted with an 85.93% pass rate. The proposal will be passed on for implementation.

Follow this proposal under the AIP Transparency and Execution Category. A new post has been created here, Implementation Update | AIP-311: Allow for ApeCoin staked in ParaSpace protocol to be counted for voting power, and further updates will be posted.

Thanks,

-@Facilitators