Outline
- Abstract
- The Proposal
- Rationale behind the proposal
- Current state of LitLayer and future development
- LitLayer’s roadmap
- Tokenomics
- Changes in token utility
- Next steps
Abstract :
Stella is a leveraged strategies protocol with 0% cost to borrow. The proposal is to widen the scope of our leverage LP dApp to a leverage infrastructure protocol. We believe that we have identified a novel intent-based architecture to solve a key whitespace in the leverage landscape. The rebrand of Stella to LitLayer will enable us to innovate and create a net positive change for the community and ecosystem.
The proposal :
The objective of this proposal is to pivot from the current product of Stella (a leverage dApp) to LitLayer (infrastructure protocol).
LitLayer is an omni-chain leverage infrastructure protocol, with intent-based architecture. With the growing number of L1s/L2s, and an increase liquidity fragmentation amongst them, as well as an increase in users’ appetite in using on-chain leverage trading platforms, LitLayer will be the omni-chain infrastructure that enables fast and seamless creation of leverage trading applications on any chain. For on-chain traders, LitLayer infrastructure will enable traders to be able to tap into the large pool of liquidity that sits on centralized exchanges, while staying self custodial.
Specifically, LitLayer enables:
- Launching a perp DEX on any chain in a matter of hours
- Enables price execution of Binance for 400+ assets using intent based architecture on any chain
- Add support for exotic assets like points trading, memecoin trading etc.
LitLayer has already received integration requisites from 10+ protocols across 6+ chains, including major spot DEXes (with >$100M in TVL) and perp DEXes.
The pivot would entail rebranding, new product direction and tokenomics changes.
Rationale Behind This Proposal:
Stella has been building, iterating, and growing multiple leveraged dApps over the past 4 years, enabling us to know the ins and outs of all things in the leveraged DeFi sector. Although a leverage dApp has its own growth trajectory, we believe we can create significant innovation and generate a net positive value to the community by taking our know-how and turn it into building a robust leverage infrastructure that can power all sorts of leverage dApps on all chains.
With the growing number of L1s and L2s, an increase in liquidity fragmentation among them, as well as an increase in users’ appetite in using on-chain leverage trading platforms, LitLayer will be the omni-chain infrastructure that enables fast and seamless creation of leverage trading applications on any chain.
The transition to the new product roadmap can help the project to not only capture a much bigger market, but also get a lot more fees, which trickle down to token holders.
Current State of LitLayer and Future Development:
LitLayer has already been in development, with the matching engine, settlement engine, position modules completed and fullstack development underway. If the community approves of the transition, LitLayer is expected to launch by September 2024.
LitLayer has already received integration requisites from 10+ protocols across 6+ chains, including major spot DEXes (with >$100M in TVL) and perp DEXes, validating a real demand for the product even before launching.
LitLayer’s Roadmap
The LitLayer roadmap will be :
- Native launch with a partner perpetual trading dApp (September 2024)
- Onboard more dApps across multiple chains to build on top of LitLayer infrastructure (October 2024 onwards)
- Onboard more solvers to scale open interest (December 2024 onwards)
Tokenomics
As a part of the rebrand, there will be a token migration from the current $ALPHA token to $LTLY token in a 1:1 ratio. The max supply of the $LTLY token will be 3 billion tokens, with their distribution done as follows :
- Migration from $ALPHA token : 1,000,000,000 $LTLY tokens
- Strategic partners : 525,000,000 $LTLY tokens
- Ecosystem & community incentives : 725,000,000 $LTLY tokens
- Airdrop : 300,000,000 $LTLY tokens
- Marketing/Security : 450,000,000 $LTLY tokens
Since all the supply will undergo vesting, the circulating supply at the token swap will remain unchanged apart from the airdrop tokens that get distributed to the users.
Changes in token utility
$ALPHA token stakers currently act as a backstop to the protocol while receiving protocol fees in return. Given the low fees earned in the current Stella product, the staking APY for $ALPHA is also low.
The new token post the swap ($LTLY) will derive utility from :
- Staking model to earn infrastructure fees
- $LTLY token holders can stake their tokens to earn a portion of the infrastructure fees generated on LitLayer, paid out in ETH.
- Staking model to adjust fee split between LitLayer and partner protocols
- Perp DEXes powered by LitLayer can stake and commit a certain amount of native $LTLY token to increase protocol fees split from LitLayer to partner protocol (akin to Voting Escrow Model pool voting). Staking a certain amount of $LTLY tokens can give the partner protocol up to 90% of protocol fees sharing.
- Governance
- The $LTLY token will be central to all governance processes for LitLayer.
The new tokenomics has more utility, enabling partner protocols, users, and token holders to engage with as well as benefit from $LTLY utilities.
Next Steps:
We invite $ALPHA token holders to support this proposal.
The proposed timeline for voting is 26th June - 3rd July (7 days). A quorum of 10% of the circulating supply of $ALPHA tokens and majority votes ‘in favor’ of the transition are required to pass the proposal.
Migration mechanics will be shared later once the community agrees on the proposed transition.
Your contributions are invaluable in shaping the future of $ALPHA. Thank you for your ongoing support and involvement in this transformative journey.