[WIP #3] - A United Front: Abracadabra + Wonderland Merge

Name: [WIP #3] - A United Front: Abracadabra + Wonderland Merge

Scope:
Wonderland is consistently using Abracadabra cauldrons and builds strategies which are used by Abracadabra’s degenbox. Both projects have interconnections from cauldron usage, liquidity provision, incentive voting on Curve to boost MIM liquidity, to building unique degenbox strategies around yield farms.

When analyzing Abracadabra’s and Wonderland’s strengths and weaknesses it becomes clear that their partnership significantly increases both protocols’ ability to perform.

The Abracadabra and Wonderland teams, including Sifu and Dani, see considerable synergy in merging the two protocols together under one token - SPELL.

The following proposal is looking to showcase what such a merger looks like and the benefits of uniting both protocols and communities.

Objective:

Further unify the frog nation through this merger and have access to a lending market (Abracadabra) which can offer us the kind of deals which allowed us to get 100% yield on stables. The team expects this partnership to further our ability to provide the best yields in defi.

Provide a High Level Overview:

@danielesesta will be hosting an AMA at 12PM EST, 17:00 UTC on his twitter profile to share more insights about the merger!:crystal_ball:

By combining Abracadabra’s lending infrastructure with Wonderland’s well diversified treasury and yield producing strategies, incredible performance efficiencies can be achieved.

The treasury will have direct access to cauldrons and can deploy strategies from within. One of Wonderland’s strengths lies in creating unique yield strategies which use Abracadabra’s cauldrons to maximize performance. With this merger, these strategies can be developed and deployed in house, making them faster, more efficient and taking a bigger market share across the entire sector.

The unification of Abracadabra and Wonderland will create the most powerful DeFi entity in the industry.

The merger would bring Wonderland’s large treasury worth +$800M USD in tokens over to Abracadabra, including making use of Wonderland’s valuable strategy of protocol owned liquidity, completing its goal of becoming self-sufficient and a zero-emission protocol by eradicating the need of incentivizing liquidity.

The merged Wonderland community and token holders will benefit from holding the SPELL token, which will in addition to receiving their rewards from cauldron fees, also start receiving revenue share from the treasury which boosts the APY on sSPELL.

The SPELL token is listed on all major exchanges, including Coinbase, FTX, Binance and many more. SPELL has deep liquidity and market makers creating a smooth trading experience across centralized and decentralized exchanges.

The merger will substantially increase the treasury’s ability to obtain yield, through directly working on cauldrons and pushing strategies to degenbox.

Overall combining the protocols will turn SPELL and specifically sSPELL into a governance token which controls cauldrons, MIM replenishments, a $800M treasury and receives revenue share from yield producing assets.

The ability to deploy cauldrons with new strategies and using assets in the treasury to generate yield from them, to distribute to sSPELL holders will elevate APY for the entire protocol.

Owning a large treasury will give the merged protocol the ability to diversify into early stage token investments as well as funding and building new projects.

Creating even deeper liquidity around MIM will allow a wider expansion into new markets while increasing usage of cauldrons.

With this merger Abracadabra will become a zero emission protocol with a $800M productive warchest that can be utilized to generate yield using in house strategies and cauldrons.

Provide Low Level Details:

The proposal is to use 98B SPELL tokens, from Abracadabra Treasury to acquire Wonderland Money Treasury in full and merge the two projects completely. The minted SPELL tokens are mostly derived from future farming incentives as you can see in the chart below.

Where do the SPELL tokens come from?

Currently the tokenomics of Abracadabra are as follows:
63% (132.3B SPELL): Global Farming Incentives (13,991,260,380 burned over multiple times)

30% (63.0B SPELL): Team allocation (4 Year Vesting Schedule)

7% (14.7B SPELL): Initial DEX Offering

Business and/or technical requirements of the implementation of the proposal:

How Will the Merge Work:

Every wMEMO token represents ownership over a part of the Wonderland Treasury. The merger involves the Wonderland treasury being acquired by Abracadabra.

This means that wMEMO holders will change ownership from Wonderland to Abracadabra by exchanging wMEMO to SPELL.

The wMEMO Cauldron:

CDPs will be automatically migrated and you will be seeing your opened position on Abracadabra.

Closing your position will return SPELL at the determined migration exchange rate.

How to perform the direct wMEMO to SPELL swap?

A swap interface will be implemented on the Wonderland site which facilitates this exchange with 0% slippage.

164 Likes

I like it, how do i vote!

36 Likes

dont know if that is the most important at the moment…

Proposals or discussions about “backing price” respectively its meaning are more important at the moment…or how can price fall such much under backing and still remains there when there are promises of Daniele that Wonderland will buy at backing price…but only my opintion

or how to avoid such liquidation candles? Not a good time to come with a nice idea and ignoring the heavy decline in price which concerns most of the community…

36 Likes

It seems like a logical step. Let’s go frogs!

20 Likes

lmao this is the ultimate scam, they’re tryna pretend yesterday didn’t actually happen. dani and sifu probably spent these few hours scheming on how to rug pull again. This was sifu’s big annoucement. What utter nonsense lmao. You’re a joke now sesta

26 Likes

Will sSpell have a buyback price to protec frogs ?

9 Likes

First we kill Time/Memo for wMemo, now we kill wMemo, to go to sSpell, What will be killed off next?

49 Likes

Spell equivalent will be at backing price rather than current price rrrrrright guys?

7 Likes

Let’s do it. I understand Dani and Sifu capability and Yield farming and strategies are the team strength. Clearly, they can do better using degenbox strategies than investing in some unknown startup companies. By this, they can control everything and works better.

10 Likes

I like the proposal but to me, exchanging wMEMO to SPELL part seem to require more clarification. Is it that SPELL used to buy up the treasury will then be proportionally distributed to wMEMO holders? I hope it is well kept in mind that for many who bought in Nov till Jan 16th, their wMEMO purchase price is >= $100k. I have done heavy DCA and still my avg is $100k per wMEMO (I can’t do DCA for infinite duration, did my last planned DCA just before Jan 16 crash).

Since it is the merge, maybe I can view it as just changing the name of my token. But if I hold say 5% share of Wonderland, I would like to hold atleast 2.5% of combined protocol.

31 Likes

What about eth fees when staking etc?

10 Likes

This is good, I did not understand a thing, but best proposal eva… will vote yes! (ps- just kidding, It makes sense that the governance of both be more streamlined)

3 Likes

How do I vote down the proposal?
Brilliant idea but the timing is wrong. Liquidation is happening below the backing price of wMemo. Are you trying to run away from responsibility? Stabilize the ship rather than jump onto a raft boat. The storm is not yet over.

22 Likes

Currently to benefit from spell you need to stake on the Eth chain, so will we on the Avalanche be able to stake for sSpell.
Also will the 800 m in treasury benefit all spell holders or the spell holders from wonderland?

10 Likes

I don’t think it’s right to change wMEMO to SPELL with 0% slippage, many of us here bought wMEMO at over 100.000$.

I think there should be a special conversion for wonderland holders and the move to abracadabra.

43 Likes

@0xWicked By having wMEMO now we are receiving high APY’s. How will this impact the APY on SPELL/sSPELL tokens if we swap wMEMO?
What will happen with wMEMO after the merger?

23 Likes

It’s also funny that with the liquidation cascade most of the people will not be able to vote for or against this proposal.

12 Likes

some doubts,

  1. How much wMEMO is currently in circulation in the market? How much is the current team ratio left after two liquidations?
  2. Is the wMEMO manually buyback by Sifu also included in the replacement? This will greatly affect the current holders’ shares.
  3. Although I still believe in Daniele and SiFu, even if my personal account slipped from 35K to 10K, it still hasn’t been sold, but my biggest question is will Sifu still be in charge after the merged?
    Will we still invest and get a share of revenue like $BSGG and gamefi to investors?
12 Likes

First it was TIME and MEMO, then wMEMO and now SPELL which not only undermines everything we have tried to achieve, it will dilute the percentage of the pot each person owns by merging it with existing pool of holders of SPELL.

This is not the way to deal with it. It feels like a way to deflect attention to something new rather than dealing with the problems.

Trust is what Wonderland is quickly losing and it will fail to attract more investors. Trust is what we need and the only way to retain trust is to keep promises.

KEEP THE PROMISE OF BUYBACKS AND MAINTAINING THE PRICE OF 50k USD PER wMEMO.

Once we see you keep your word we will trust you with new ventures. There have been way too many broken promises and way too much deflection, misinformation and misdirection.

It is time to focus on Wonderland. Forget SPELL

70 Likes

Ohh hell no, we killing wMemo now??

17 Likes