FIP 49 - Renaissance Lab Partnership+Seed Round

Hello Frax community!

This is Da Vinci from Renaissance Labs, formerly known as Renaissance DAO. As we will be primarily using Frax to bootstrap our treasury and acquire FXS in the long term, we want to extend our partnership and have FRAX as the first investor outside the community. FRAX can start accumulating our governance token, $ART from the very start of our journey. $ART provides the opportunity to earn staking rewards within the protocol (securing a percentage share) and to participate in the DAO’s mission to increase liquidity and price discovery within the NFT marketplace. Alongside the staking rewards, FRAX will be able to participate in the management of the Renaissance Labs’ operations and treasury, including NFT acquisitions and fractionalizations, as well as the regulation of our future products and services such as NFT derivatives and the fNFT-collateralized lending market.

We are offering two options:

  1. $250,000 for 2.5% of the initial tokens
  2. $500,000 for 5% of the initial tokens.

Here are the numbers:

$ 250,000 allocation OR
$ 500,000 allocation for FRAX Protocol
$ 23.75/ART (5% discount from the Whitelist sales)
$ 25M Fully Diluted Value
1 Year Vesting with quarterly cliffs

Full Disclaimer:
Renaissance Lab does not have pART tokens, and the initial shares offered to the FRAX Protocol will be diluted from bonding, as will our internal team allocations.

Previous Proposal / Background:

More Info
Docs: White Paper - Renaissance Labs

Thanks for your time,
Da Vinci

Poll options:
Participate in the Renaissance Lab seed round for the allocation of $ 250,000
Participate in the Renaissance Lab seed round for the allocation of $ 500,000
Do nothing

1 Like

i see red flags everywhere.

it seems like your using a OHM like bonding system when we have already seen many OHM forks divert away from this system already as there market cap drops below its treasury assets value.

it also causes stakers to get massive dilution thats bad for long term stakers.

you want to use a pdf as your treasury.

what could go wrong…

there is no mention of FXS in your white paper, why would you want to acquire it , and what would you do with it or use it for? and how would that help your protocol?

Hey sparkes25! Thanks for bringing it up good points for discussion.

First of all, we’re not an OHM fork. We’re using the rebasing mechanics with the ability to dual stake them on Renaissance Labs protocol to bootstrap our treasury to fractionalize and release new NFT collections. We have a terminal utility, while the previous OHM-forks had NO terminal utility to their tokens and were sorely focused on being another reserve currency. I like to call it the Defi 3.0, as we’re adding terminal utility to the POL model. We’ve discussed a bit further in our latest Medium article: Renaissance Lab: adjusting our focus | by Renaissance Labs | Feb, 2022 | Medium

Second point on dilution, I agree 100% that dilution is something to we need to control for sustainability and we’re very aware of it, as even the internal team allocations are diluted. We will stop bonding and rebases in 6 - 9 months at significantly lower rate than other OHM forks with a transparent decay schedule. The protocol is able to self-sustain without bonding after 6 months with the decentralized marketplace.

Lastly, gaining FXS is crucial as it helps us to have a voice in the FRAX protocol’s governance. We are predominantly accruing FRAX in our treasury and only make sense to find more use cases for our dominant stable coin and our partner. One use cases is: minting FRAX for collaterized fNFT (fractionalized NFTs) in the future.

Thanks for taking the time to read through our proposal and let me know if you have more question or concerns!

1 Like

this results in FRAX thats backed buy NFT’s, this would be quite the step to go direct from stable backing to NFT backing.

round the other way would be better, NFT’s that are backed by FPI tokens.

That definitely makes much more sense! It’s Renaissance Lab protocol’s best interest to accumulate FXS, as it also helps with diversifying our treasury holdings.

if it makes more sense … why not do that instead ?

Renaissance Labs Treasury will be focused on accumulating FRAX and FXS to purchase more NFTs to fractionalize for the first 6 to 12 months. Creating NFT that are backed by FPI is definitely an interesting idea we’re enticed to pursue after we have a strong and diversified treasury!