WaterNeuron DAO launched on July 3rd, 2024, and has rapidly emerged as a key player in ICP staking. In five months we reached 1.3M ICP staked in the protocol.
We propose to the community a summary of what WaterNeuron protocol has achieved since launch, a second SNS, and give grants to the contributors. The overarching goal is to decentralize further a protocol that has a larger voice in the NNS.
Summary WaterNeuron Protocol 5 months
At launch, WaterNeuron deployed open-sourced and audited code, committing to three core objectives:
- Allocate all raised ICP to an 8-year neuron.
- Reach $1M in ICP protocol stakes by the end of the year.
- Improve ICP liquidity in the DeFi ecosystem.
Allocate all raised ICP to an 8-year neuron
Over 90% of the funds have been transferred to the 8y neuron and the remaining should be done by the end of January.
| Proposals ID | Date Executed | Amount transferred to 8y Neuron | Treasury Staked | Relative Amount of Treasury Staked |
|---|---|---|---|---|
| #26 | 2024-07-23 | ICP 48 158 | ICP 48 158,00 | 11% |
| #95 | 2024-08-02 | ICP 45 868 | ICP 94 026,10 | 22% |
| #173 | 2024-08-10 | ICP 45 001 | ICP 139 027,10 | 32% |
| #267 | 2024-08-19 | ICP 47 069 | ICP 186 096,20 | 43% |
| #375 | 2024-08-27 | ICP 51 116 | ICP 237 212,20 | 54% |
| #439 | 2024-09-04 | ICP 49 686 | ICP 286 898,30 | 66% |
| #533 | 2024-09-12 | ICP 37 266 | ICP 324 164,56 | 74% |
| #684 | 2024-09-24 | ICP 27 949 | ICP 352 113,56 | 81% |
| #813 | 2024-10-07 | ICP 20 962 | ICP 373 076,00 | 86% |
| #1045 | 2024-11-02 | ICP 15 722 | ICP 388 797,83 | 89% |
| #1247 | 2024-11-16 | ICP 11 791 | ICP 400 589,21 | 92% |
| #1369 | 2024-11-29 | ICP 8 844 | ICP 409 432,74 | 94% |
| ICP 6 633 | ICP 416 065,39 | 95% | ||
| ICP 4 974 | ICP 421 039,87 | 97% | ||
| ICP 3 731 | ICP 424 770,74 | 97% | ||
| ICP 11 193 | ICP 435 963,33 | 100% |
Achieve $1M in ICP protocol stakes by year-end
We are at 1’334’558 ICP TVL. Currently, this puts us at $19M TVL.
The initial staking was funded by the treasury, as planned. This was followed by community members staking to participate in the airdrop. The third significant wave of stakers came from the DAO.
Here is a breakdown of ICP staked by the type of staker:
The boomerang canister, streamlines DAO staking by enabling single-proposal ICP stakes at waterneuron.fi/sns. Five DAOs have utilized this feature to stake 339,207 ICP total:
- @icvcofficial - nICP 293’639
- @OpenChat - nICP 34’687
- @DecideAI_- nICP 9’849
- @anvil_ic - nICP 1’032
- @icsneed - nICP ???
The number of stakers has been steadily increasing, although there has been a recent slowdown, which we believe is linked to ICP’s price fluctuations. For a deeper understanding of the protocol’s inner workings, you can explore the dashboard.
Enhance ICP DeFi Liquidity
WaterNeuron has 1.3M ICP on the protocol, controlling 2/3rd of ICP’s in DeFi.
The protocol has enabled stakers to earn yield since launch driven by the update of the protocol exchange rate. We currently sit at 0,96292041 nICP per ICP.
nICP Token
The majority of our trading volume comes from ICPSwap, which has been our primary source since July, generating over $3M in volume and attracting 800+ holders. The ICP/nICP pair is the most active, offering an average APY of 5% in its liquidity pool.
Additionally, the growing adoption of borrowing and lending platforms like Lendfinity and dFinance on ICP and Bitfinity networks is expected to further enhance the utility of the nICP token.
Governance
WaterNeuron is among the most active DAOs in crypto.
Since the establishment of the WaterNeuron known neuron, no proposals have been missed, as confirmed by vpgeek stats. Through the active engagement of CodeGov, we have successfully persuaded major Whales to follow the WaterNeuron known neuron. This has provided the DAO with a 2% voting power.
WTN tokens are distributed as follow:
All the following points are suggestions to improve decentralization
SNS #2
As originally planned, we now enter the second era of the protocol, Papaya Era. Where 20% of the supply will be distributed in a new SNS, representing 23 295 621 WTN. The ICP community has grown since July, and we want new community members to be able to engage in the WaterNeuron community, while further decentralizing WTN holders.
Given the SNS framework does not allow for additional ones we suggest using our own canister: feat(sns-module): sns2 by leo-ship-it · Pull Request #54 · WaterNeuron/WaterNeuron · GitHub.
Unfortunately, the SNS framework has rigid rules on how many tokens can be withdrawn every week, hence the participants of this round will receive tokens over the subsequent months. All ICP raised through decentralized means will be deposited into an 8-year neuron. This strategy aims to enhance the APY, ensuring long-term competitiveness for the ecosystem.
Grants for contributors
We propose distributing additional WTN tokens to individuals who have significantly contributed to the DAO’s growth and development. The allocation is as follows:
- 300k WTN: Awarded to Wenzel, Alex Lorimer, and Bjorn T. for their efforts in voting on and reviewing SNS proposals.
- 300k WTN: Awarded to Jack Johnson, Saratoshi, and Mico for their contributions to education and community engagement on Twitter and Telegram.
- 300k WTN: Awarded to Jerry Banfield, CoinNation, ZeroToHero, Aaron Bremser, and Blockchain Pill for creating content that supports and promotes the WaterNeuron ecosystem.
All distributed tokens will be locked for a period of three years.
Additionally, to support the continued development and security of the protocol, Sisyphe will receive 11M WTN tokens, which will also be provably locked for three years.
As previously stated, these tokens will only be distributed after the tokens of the SNS #2.
Suggested Governance Parameters Update
- Reward Rate: Maintain at 3% annually from .24%.
- Maximum Age Bonus: Set to 100%, encouraging long-term staking from 25%.
- Maximum Dissolve Delay Bonus: Set to 100%, promoting extended commitment from 50%.
We recommend implementing this update to incentivize participation and align with long-term network growth goals.
Thank you all for taking the time to read this update! Your feedback is invaluable, so please don’t hesitate to share your thoughts or suggestions. We look forward to hearing from you!
