Proposal Title: OATH Chapter Establishment Proposal - Aurelius
Chapter Chain: Mantle
Proposal Type: OATH Chapter Establishment Proposal
Proposal Author: Justin Bebis
Aurelius is a DeFi lending platform that seeks to leverage the Ethos Reserve V2 codebase to mint the $AUSD stablecoin and utilize underlying collateral to bootstrap an integrated Granary Finance lending market on the Mantle Network. By reducing the cost of capital and improving outcomes for ecosystem stakeholders, Aurelius envisions becoming a cornerstone of the Mantle DeFi ecosystem, aiming to be its premier native Collateralized Debt Protocol (CDP).
Aurelius is designed to harness existing OATH infrastructure and technology to bring cutting-edge DeFi solutions to the Mantle network. To this end, Aurelius proposes that the OATH Foundation grants our team license to use the Ethos Reserve V2 codebase as an official OATH Chapter.
Through Aurelius, the OATH Ecosystem will gain significant exposure to the Mantle network without the burden of incentives being placed on the $OATH token. Additionally, through the bargaining power provided by Aurelius’ upcoming $AU token, our team has been able to secure a grant from Mantle alongside key partnerships that would have otherwise not been possible.
Potential revenue streams include minting fees, borrowing fees, and revenues from exercised $xAU option tokens. Aurelius has also secured a 200,000 $MNT ecosystem grant from the Mantle Network and, combined with the support from the OATH Foundation, will be a competitive force against other similar dApps.
Another contribution Aurelius commits to is a liquidity pool which features AUSD-ERN (stablepool) and stAUSD-stERN (yield-bearing-correlated pool) available on Mantle. These pools would be mutually beneficial, and the OATH ecosystem is invited to help bootstrap and promote these opportunities to help introduce the Aurelius product as they see fit.
Chapter Revenue Breakdown:
- Minting/Redemption Fees
100% Directed to Bonded $AU Stakers
- Borrowing Fees
80% Directed to Bonded $AU Stakers
- 70% Directed to Bonded $AU Stakers
- 15% Directed to Aurelius Treasury
- 15% Directed to OATH Foundation Treasury
Chapter Token $AU Distribution Breakdown:
The above are 2 examples of emission curves we could implement for $AU token distribution. The constant rate of decay will emit 8.8% of the incentive supply in the first month and lower the rate of decay by 8.8% in each following month, where the Ramp Up + Decay curve would ramp at a similar rate into a peak where it would then start to decay.
In either case, we could add an option to the $xAU system which allows users to receive $AU for free by locking for 6 months with a second option to purchase $AU at a discounted rate. This would effectively defer incentives to at or after the peak and give new users a unique method of gaining entry into the ecosystem.
Because Mantle is a brand new network, getting people familiar and comfortable with the Aurelius platform will be a top priority. Introducing a 6 month cliff to team, bOATH, and incentive tokens could give $AU time to establish footing and onboard new users before the supply is fleshed out.
The standard “Constant Decay” emission curve could have a set of $xAU options which increases the discount over time, from 90% to 50% over the course of 6 months with an alternative locking system. Over these first 6 months, exercised options could all be directed to protocol owned liquidity with fee sharing set up at the 6 month mark with $bAU.
A key element of the Aurelius strategy comes through a partnership with the Ramses team via Cleopatra DEX. $AUSD will play a key role in onboarding teams and in CLEO liquidity, and our platforms will feed off of each other as we penetrate the Mantle market. Through our combined efforts, focus on POL, and commitment to growing the Mantle ecosystem, there is significant opportunity to play off of each other.
The Incentives section of the tokenomics will be distributed as follows:
10% in $xAU for air drops and referral rewards distributed linearly after token launch
45% for voting incentives on partner DEX
25% for borrowing incentives
20% for miscellaneous incentives, to be distributed in response to market changes
The bOATH section of the tokenomics will be distributed as follows:
100% in $AU distributed over 6 months to $bOATH stakers
We propose this amount either be distributed after a 6 month cliff or via $xAU, depending on the emission mechanics decided above. Giving $AU a chance to grow its liquidity base will be important after launch. Alternative methods of launch can also be explored to bootstrap liquidity.
The Liquidity Provision section of the tokenomics will be distributed as follows:
60% for DEX liquidity
40% for CEX liquidity
The Developer Grants section of the tokenomics will be distributed as follows:
An allocation of tokens will be made available as co-incentives to teams who integrate $AUSD on their platforms, or to developers who build tools or protocols that support or utilize $AUSD.
The team members section of the tokenomics will be distributed as follows:
Maintainers of the platform, KOLs, and other contributors will receive vested allocations of $AU tokens. Aurelius has been developed by OATH core contributors to demonstrate the efficacy of the Chapters initiative, all of these tokens will be used to alleviate overhead costs and incentivize developers that work within the broader OATH ecosystem.
Team Members / Experience:
Elaborate on the experience of the proposal team and why they will be successful implementing the proposal.
OATH Foundation developers have extensive experience deploying and maintaining the OATH technical suite of infrastructure. Since Aurelius leverages OATH tech, the crossover makes deploying and maintaining Aurelius intuitive and rehearsed.
Key Objectives & Success Metrics:
Objective: Establish Aurelius as a leading lending platform on the Mantle Network.
Metric: Top 2 lending platform on Mantle by TVL on DeFiLlama
Objective: Foster a robust ecosystem where users can earn real yield and other incentives.
Metric: Top 5 native Mantle project by market capitalization, with more than 50% of $AU tokens staked as $bAU.
Objective: Establish a strong and engaged Mantle-native community.
Metric: Grow impressions on Aurelius twitter to top 5 among Mantle-native projects
Network Adoption Risk:
Because Mantle is a brand new network, the success of Aurelius is, in part, beholden to the success of Mantle. Though we can do our best to create a vibrant, thriving ecosystem and onboard new users, we rely on the Mantle team to keep pushing their technology stack forward and finding PMF.
Aurelius, though utilizing the OATH technology stack, is approaching both CDP and lending primitives in a unique fashion. Because it’s unnecessary to incentivize assets supply-side at the lending level, there will not be any supply APR to alleviate borrow-side interest rates. How this mechanical change will affect usership is to be determined.
Because of these mechanics, Aurelius will rely heavily on real demand for DeFi loans. To source this demand, the Aurelius lending market will place a strong emphasis on mETH and USDY usership, and focus on assets like ETH and stablecoins in the CDP itself to supply demand for leverage.
Aurelius is not just a lending platform; it represents a vision for the future of DeFi. With its unique approach to borrowing and staking, combined with the support of the Mantle Network and the OATH Foundation, Aurelius is poised to redefine the DeFi borrowing landscape. The community’s support and feedback will be invaluable in shaping its trajectory.