Skip to content

Latest commit

 

History

History
47 lines (30 loc) · 3.47 KB

TIP-191.md

File metadata and controls

47 lines (30 loc) · 3.47 KB
Raw
id Title Status Author Description Discussions to Created
TIP-191 FlipEth product Draft danijel FlipEth product 2023-12-04

Simple Summary

Describe FlipEth product and decide its future course

Motivation

While discussing potential branding options for what is now known as speed markets, the idea of using "FlipEth" was pitched. At that time, Thales Treasury has secured FlipEth.io domain in case we choose to pursue that option as branding.
We decided to go with Speed Markets instead as we found that to be a better fit for that product.

I fell in love with the idea and potential of "FlipEth" branding and started brainstorming about potential products that would be a good fit for it.
As a result I came up with the idea relayed in the specification section.

This TIP intends to trigger a discussion whether FlipEth product should be added to Thales protocol.

Specification

FlipEth is a coinflip product with a twist. It will use Chainlink's VRF functionality to allow users to flip their ETH with leverage. The VRF call will simulate a dice roll from 0 to 100. Users can choose their leverage. E.g. if they choose 10x leverage, it means they have to roll more than 90 to win.
Users can also choose a leverage payout of 1.1x in which case they just need to roll higher than 10 to win.

The FlipEth contract would reuse our previously established concepts which guarantee solvency and enable round driven liquidity providing.

It would have Safe Box and LP fees added to the buy-in.

Examples

  • User puts down 1 ETH and chooses 10x leverage. User calls contract method flipEth() which calls Chainlink's VRF. VRF calls will be normalized in 0 to 100 range. VRF calls are pull based, therefor when the VRF response arrives, if the returned number is higher than 90 the user wins 10 ETH. If not, the 1 ETH goes to liquidity providers. The user pays 3% LP fee and 2% SB fee on top of the 1 ETH.

Discussion

Thales DAO released a variaty of products thoughout its lifespan. Starting with binary options AMM, then parimutuel "pooled" products such as Thales Royale and Exotic markets, AMM driven sports markets, and most recently Speed markets. All those products were in a sense an organic extention of what started as a Synthetix Binary Options spin-off.

FlipEth is the first proposed product that introduces the concept of randomness usually associated with casino like products.Thales DAO should decide if this is a course it wants to explore with its product offering.

I offer two potential paths for FlipEth (third one being a full rejection of this proposal):

  1. Release FlipEth under Thales DAO umbrella which means Thales DAO owns the contracts and thus the contracts inherit all current mechanics such as SafeBox and so on. FlipEth contract would be an upgradable proxy owned by Thales DAO.

  2. This TIP would give a mandate to Thales CCs to develop and release the FlipEth product alongside its own token $FLIP. The FlipEth contract would in this case be written in an immutable fashion, not allowing any direct upgrades to it. Instead of the SB fee concept, 2% of each buy-in would be used for a direct on-chain buyback and burn of $FLIP token. Thales treasury would seed initial LP liquidity with exact numbers TBD.
    Full supply of $FLIP token would be airdropped to THALES stakers.

Copyright

Copyright and related rights waived via CC0.