Thread by @josefabregab

You've been reading $METIS threads, and now... You find yourself in Andromeda Network ready to make a move😈

So, what now?

Well, if you want to explore the alternatives in @MetisDAO , one of my fav picks is @MaiaDAOMetis

🧵Really saucy thread on @MaiaDAOMetis and $HERMES 👇

2/ In this thread, we'll cover:

• @MaiaDAOMetis
• $MAIA
• Benefiting from Staking vs Minting
• Liquidity Minting vs Reserve Minting
• Market Dynamics
• $HERMES aka the reason you're probably here
• How $HERMES will revolutionize crypto
• Airdrop dates

Vamos (2/25)

3/ What is @MaiaDAOMetis

@MaiaDAOMetis is a community owned decentralized reserve currency protocol

And, what the heck does that mean?

Means they make sure their reserve token ( $MAIA) is backed by a basket of assets (m.USDC, MAIA-m.USDC LP Tokens, etc) in their treasury

4/ $MAIA

$MAIA aims to be the protagonist of a policy controlled currency system, in which $MAIA's *behavior* will be controlled at a high level, optimizing stability & consistency so that $MAIA can be a global unit-of-account & medium-of-exchange currency

5/ So... It's a stablecoin?
-NO

$MAIA: reserve currency backed by other decentralized assets. Similar 2 the idea of the gold standard, $MAIA provides freefloating value we can always fall back on, simply bc of the fractional treasury reserves $MAIA draws its intrinsic value from

6/ $MAIA intents to achieve price flatness for a representative basket of goods *without the use of fiat*, to contribute to crypto's complete detachment from TradFi.

And... How can I participate/what can I do with/in @MaiaDAOMetis ?

Well, let's see👇

7/ Staking & Minting

Most of you might be familiar w Staking (if you are, jump to #10), but for whoever is not:

Staking means locking funds for a (usually) predefined period of time in order to help the maintenance and development of a PoS network, for which u receive $ rewards

8/ Minting, on the other hand, is creating new coins using a PoS consensus algorithm. In contrast, PoW cryptos come alive by being "mined."

For better understanding before jumping to the moneymaking part, here's the origin of both term quickly explained (Minting and mining)👇

9/ "Mining and Minting" were created from real-world coin making.

Gold and silver are "mined" out of the ground and then "minted" into coins for circulation

So, minting, is pretty much bringing a coin alive and in circulation for a PoS network.

Now... Sauce😈👇

10/ In order to start Staking, I will lock $MAIA and receive an equal amount of $sMAIA

Your $sMAIA balance adjusts automatically at the end of every epoch

$sMAIA is transferable and therefore composable with other DeFi protocols

$sMAIA staking is currently yielding....absurd

11/ Minting

The minting action create bonds which take roughly 15 epochs (approx 3 days) to vest, and $MAIA tokens are rewarded linearly during that time (you can claim the rewards that you've gotten so far even tho the 15 epochs ain't done).

Sweet, right?
Well, it gets better

12/ When minting, protocol gives the minter terms for a trade at a future date.

These terms include a predefined amount of $MAIA the minter will mint when the vesting period (epoch) is complete.

The bond becomes redeemable as it vests. (in a 5-day term)

13/ In @MaiaDAOMetis there isn't "just minting", but instead they offer Liquidity Minting and Reserve Minting, both giving you the ability to mint $MAIA @ discount😏

Minting Actions are a cross between a fixed income product, a futures contract, and an option.

14/ Liquidity Minting

Consists in locking up liquidity (thus obtaining LP tokens) and Mint $MAIA with said LP tokens

Liquidity minting help the protocol to accumulate & lock liquidity (m.USDC, MAIA-m.USDC LP Tokens, etc), also making sure that theres exit liq for those who exit

15/ Reserve Minting

Reserve minting consists on minting with any assets from a selected basket in order to increase the protocol's reserves & $MAIA backing.

Among said assets we have: m.USDC, m.USDT, $WETH & $METIS.

16/ Mkt Dynamics - Contractions

Contractions r only triggered by short-term liq crises. Since $MAIA holders have a guarantee that price will come back above intrinsic value soon

Anyone selling below intrinsic value probably needs a short term exit & don't care abt the loss

17/ Mkt Dynamics - Expansions

Expansions can be triggered by an increase in staking or minting

An increase in staking is usually preceded by purchases from the market(price🆙), which allows the protocol to sell at a higher price and increases yield for stakers

18/ $HERMES PROTOCOL

$HERMES for @MetisDAO will be the equivalent of $SOLID for $FTM.

Instead of clashing with existing exchanges, $HERMES comes with a P2P model (business2business but p for protocol), meaning it will not take any market share from existing DEX in Andromeda

19/ $HERMES allows low cost, near 0 slippage trades on uncorrelated or tightly correlated assets

It incentivices fees instead of liquidity. LPs are given incentives ( $HERMES), calculated as follows;

100% of weekly distribution weighted on votes from $veHermes holders

20/ The above is distributed to the gauges, however LPs will earn between 40% and 100% based on their own $veHermes balance.

LPs with 0 $veHermes balance, will earn a maximum of 40%.

21/ In other protocols, it tends to happen that the pools that r needed the least r the ones incentivized, while the crucial ones aren't

Logically, as a participant trying to max $$, you will most likely lock in the incentivized pool, & not the crucial pool

22/ The problem with this approach is that most capital is being allocated toward a pool that is hardly used, while the most crucial pool that accounts for most swaps REMAINS ILIQUID, inefficient, and likely to be have lots of slippage

$HERMES solves this

23/ By incentivizing fees, the pools that accounts for most swaps are the ones being incentivized, therefore maximizing capital efficiency

Now, most swaps take place magnificently for the main pairs, therefore attracting more capital to swap here, therefore bringing + fees 🔂

24/ Other protocols, even other AMMs, can use &/or transition to Hermes Protocol w/o loosing any fees & incentives

Fees do not auto accrue, so this allows external protocols 2 be able 2 profit from the fee claim. New protocols can start & earn 100% of fees earned from that pool!

25/ $HERMES emissions

If all participants lock, emission decreases to 0
If only 50% of participants lock, emission is 50%
If no participants lock, emissions are at 100%

The higher % of the supply is locked, the lower emissions will be (good for both, $HERMES & participant)

26/ Every week, 2M new tokens become avble. These 2M tokens r distributed based on the current voting weights for pools

To promote $HERMES healthy distribution:

•Voting Power Mining model is adopted, rewarding LPs of the AMM w/ voting power over $HERMES emissions
•Airdrops

27/ @MaiaDAOMetis treasury will start with 100% of veHERMES NFT and will own 25% of the protocol in perpetuity.
$HERMES, as mentioned before, will be distributed through emissions.

The more $HERMES grows, the more $MAIA will grow, pretty much.

@MaiaDAOMetis 28/ Up to 65% of emissions will go Ecosystem Partners in order to push forward $METIS eco

Part of emissions will incentivize pools that belong to:

•Metis native projects
•New Metis projects
•Projects from other chains, creating a friendly environment 4 other projects to come

@MaiaDAOMetis 29th n Last/ Airdrops

6%-MAIA Stakers
Date: 02/04/2022
Distribution: 1.2M veHERMES
4%-MAIA Stakers Snapshot
Date: TBA
Distribution: 800K veHERMES
3%-Hermes LPs Snapshot
Date: 02/15/2022
Distribution: 600K veHERMES
2% -Hermes LPs Snapshot
Date: TBA
Distribution: 400K veHERMES

@MaiaDAOMetis 30/ So yeah, you already missed the first 2 airdrops lol.

I hope this was a helpful & insightful thread

Feel free to add ANYTHING that I might've missed!

If you enjoyed the thread, don't forget to Like/RT the first tweet, and/or Follow!

https://twitter.com/josefabregab/status/1497212179933761539?s=20&t=hUdOjx4vYvnjzqW6LVEkeQ