Your BETIFY has Power
As you may have seen, the past week has been a quite traumatising experience for the entire crypto market. It all started with initial fear and uncertainty following an impulsive decision from Crypto.com and culminated with a quite drastic fall of MMF along with the general crypto market. Let’s explore what has transpired in the past week and what we can all do for the future of our project.
Crypto.com Card Changes 💔
On the 1st of May Crypto.com announced a reduction of cashback rewards on their Metal Visa Cards, essentially making purchases with the lower tier Crypto.com cards obsolete, while Icy White and Obsidian cards were heavily downgraded too. The community response was overwhelmingly negative and the price of CRO saw a large downfall the day after, affecting the entire Cronos Ecosystem as a result. Crypto.com did revert the planned changes in the end and found a more suitable option for all of the card holders, but some of the damage had already been done.
MMF Frontend Exploit 🥷🏻
The MMF Ecosystem, of which we’re a part of definitely felt these changes as CRO prices started to plummet, and we had a few days of quite severe sell offs of MMF, resulting in a drop for most tokens that are part of their ecosystem. To add more fuel to fire MMF was unfortunately exploited through a DNS attack where a malicious attacker was able to inject a contract address into the MMF Frontend. When users would navigate to MM.Finance to remove liquidity, the malicious router would withdraw their LPs to the attacker’s address. Over $2,000,000 of assets were compromised and bridged over to the ethereum network through multichain, before being laundered through Tornado Cash.
Crypto Market Downfall
While everything was going down on Cronos, the general crypto market also decided that it would be the right time for a massive dip, with Bitcoin dropping all the way down to $26,000, its lowest point since January 2021. This obviously impacted everyone in the market massively and caused a ridiculous amount of fear for any blockchain related service or project. Even stablecoins seemed to be in danger during this period and it definitely served as a great test for them, of which one of the biggest stablecoins didn’t make it out alive.
Luna and UST Death
Terra Labs’ Luna has been by far one of the biggest success stories of 2021, going all the way up in the top 10 of the crypto market. It was definitely regarded as one of the safest and most sound projects around and hosted a lot of heavily trusted protocols on their ecosystem, such as Anchor, host of over $14 Billion at its peak.
The fall of Luna and UST were quite sudden and never before seen at such scales in the past. As the market kept going down, in the past weekend over $2 Billion worth of UST were unstaked from the Anchor Protocol and hundreds of millions were immediately sold. This huge sell off pushed the price of UST down to $0,91. Traders tried to take advantage of the arbitrage000 by exchanging $0,90 of UST for $1 of LUNA, but soon came to find out that only $100 Million UST can be burned for LUNA per day. Therefore, following the already turbulent market conditions most investors flocked to sell their UST once the stablecoin couldn’t retain its peg.
Even worse, the value of LUNA has completely disappeared in the aftermath of UST’s crash, being sold off to unprecedented amounts and its supply being dramatically overinflated through its relationship with UST.
At this moment LUNA is sitting at a price of $0.0002131 per token, UST is at $0.11 and the Terra Blockchain has been halted. It’s a sad story that has been the cherry on top of the current FUD Cake.
Impact on GambleFi 🎰
GambleFi has obviously been struck by the market fall since we’re in a category that is impacted by several sources. BTC impacts the rest of the market, including CRO. CRO impacts the Cronos chain and therefore MMF. MMF directly impacts us since most of our liquidity is set with MMF. It’s a turbulent time where we have to find new ways to keep the project afloat while innovating.
What will we do next? ➡️
The next few steps are very crucial for the project, so we’ve taken our time to evaluate them and see how the general market is developing before we start voting for the final decision. For each one of the available options we will have both our investors and the longevity of the project in mind.
One of the most important steps for the longevity of CronoSports will most likely be its adoption on several chains, in order to find the most complete home for it. We will begin cross chain adoption as we finalize the decision behind the future of the Rebasing DAO, since we feel that there should be a defintive choice taken in that regard.
The final decision will come down to you, and you will be able to vote for it based on your asset amount through snapshot.org.
How to Vote
Voting will begin on Thursday, 19th May at 15PM GMT and you’ll be able to vote through the following link snapshot.org/#/gamblefidao.eth.
Votes will only be available through BETSLIP and you will have 3 options to choose from.
Once the final results are in, we will take a few extra days to develop the distribution system agreed upon by users, and we will start development for the future of the project.
Voting will begin on block 2838000 so make sure to unwrap your wBETSLIP before reaching the block. Unwrapping your wBETSLIP after block 2838000 will result in an invalid vote
What are the Options? ⚙️
Since the GambleFi Treasury is a smart contract and not a normal wallet, there are definitely some limitations to the way we can manage funds. The same way BETIFY needed collateral in DAI for its minting, it also needs collateral in BETIFY for the distribution of the Treasury Funds. The current issue at hand exists due to the downfall of the crypto market, where several assets in the treasury are undervalued in relation to their initial insertion moment, resulting in the $ value of the treasury being lower than the total supply of BETIFY.
Here are the options that we’ve come up with after careful consideration and evaluation of the current market.
The Treasury Unwind period will consist of a 7 day long time frame where users will be able to redeem their tokens for $1 per BETIFY, but liquidity will be removed from MM.Finance, in order to avoid arbitrage exploits. This is most likely one of the cleaner methods for user reimbursment, although it will pose the aforementioned issues related to the current $ amount of Treasury Holdings. Consequently, some users may not be able to withdraw from the Unwind at the end.
Keep it Running, Let the Market Decide
Another option would be to let the market decide the token value, and we will burn the LPs under our control to avoid issues that could make users worry about their funds. This may not be the best of outcomes, as it would send the BETIFY market in specualtion mode, and would also include the stoppage of Revenue Share rewards, making the holding of the token non viable for users.
Remove LP and MMF Conversion
This would be another great option where we could use our current funding and LPs to reimburse users. Our LPs would be split, allowing us to offer MMF to users in exchange for their BETIFY. You could consider it as a BETIFY burn in practice, but you’ll receive MMF.
There will be approximately 500,000 MMF up for grabs
CronoSports 2.0 🎲
With the closure of the Rebasing DAO, CronoSports will undergo a few changes to simplify the system around it, while ensuring that further launchpads and fundraises are possible on new chains.
Rebasing DAO Removal
Given the current market fluctuations and instability in our liquidity, we believe it’s in everyone’s best interest to find a more sustainable system, that simplifies and centralizes the project around our betting protocol. The Rebasing DAO was a good experiment, but market conditions are rendering it unprofitable for users. We believe it’s in everyone’s best interest to find a more suitable and simple tokenized system to back our project.
To close this chapter, the Rebasing DAO has been managed to our highest standards, keeping salaries of a maximum $2000/month per core team member, with some part time workers along the way too, and we’ve tried our hardest to run it as a business that is as open as possible to the userbase.
It should also be noted that no team tokens were minted during the lifespan of the project, as it was a revenue stream we decided to avoid since our market conditions weren’t favourable for profit taking.
New Token, New Masterchef, Native Token Betting
Every bad news brings some good news along with it, and it’s the same case for our new system. CronoSports will remain intact as a betting protocol, but we will have a new token that is unrelated to the rebasing mechanism, and a traditional Masterchef that will allow us to have a more simplified minting rate of the token. For simplicity’s sake, let’s call the new token BET in this article.
The system we have in place for BET will also allow us to easily host bets with our native token, and give us much more control over the APRs delivered to users that are betting on our platform.
Having a more simple tokenomic system will allow us to launch our own native farms, giving users multiple avenues for earnings in a much more familiar way than the rebasing mechanism. If you don’t want to get into the betting action, you can simply farm in pools such as:
BET Private Betting Pool
Since the Masterchef is under our control, we can also have a BET Staking Pool with amplified APRs that is only accessible through CronoSports bets. This will allow us to increase betting rewards or decrease them depending on the market conditions of the token.
BET Burning Mechanisms
We also have some interesting burning mechanisms in place for the new token, that will apply to both native and external token bets on our protocol.
- Native Bets: X% of the BET prize pot will be burned to help the sustainability of the token
- External Bets: X% of external token or LP token prize pots will be used for buybacks and burns of BET to help the sustainability of the token
Our next step forward is also to bring the project to multiple chains, which will allow us to perform several fund raises, further increasing our marketing, development leverage, and scalablity in the future.
Some of the main chains that could offer us a wider user base could be:
- BNB Chain
Keep in mind that while project expansion will occur, we will still host CronoSports on Cronos and scale it up more throughout the year, as we still believe in Cronos’ potential long term.
Thank You 🙏🏻
Thank you for your patience as we’ve been working towards a solution through the current turbulent times. More technical info about the future of CronoSports will be released in the upcoming days, as we keep persevering with the developments at hand. In the meantime, make sure to unwrap your wBETSLIP if you’d like to participate in the final vote for BETIFY, and make sure to stay tuned to our social media platforms to see when the final decision will be set in stone.
Have a great week and trade safely!