A FABRIC UPDATE
A look at what the future holds for FABRIC!
With the FABRIC protocol now moving at full force, we thought we’d share a sneak peek at some of the exciting developments we’ve got planned. But before we get into that, we wanted to once again extend a huge thanks to the FAB community on Discord and Twitter for their constant support.
FAB PUNK humble beginnings
Building a functional and scalable product in crypto requires far more than just shipping code. Creating network effects, utilising Metcalfe's law and nurturing a strong community are all paramount components of a successful Defi protocol.
The introduction of our FAB PUNKs has helped us to fulfil these crucial needs. More importantly, the PUNKs have acted as a value add to remunerate our liquidity providers.
If you’ve been following FAB you’ll know that the FAB token had a somewhat shaky start. With liquidity drying up twice and people proclaiming that FAB had died, it was clear that we had to take matters into our own hands.
As a result, we ended up building out a FAB LP staking pool. Our pool allowed FAB liquidity providers to stake their LP tokens and receive FAB rewards. Incentivising users to stake their FAB and USDC by rewarding them with a yield harvest opportunity proved to be a powerful way to bootstrap liquidity. So powerful in fact that our total value locked (TVL) went from $3K to over $100k within three days of going live and is currently sat at over $1.2m
However, we noticed that as price action started ramping up with FAB, our stakers were getting hit quite hard with impermanent loss (IL). Seeing as our Liquidity providers are the backbone of our community, we decided to thank them through the creation and airdrop of a FAB NFT art piece. Once the community got wind of this, the NFT’s ended up taking on a life of their own and FAB PUNKs were born.
Given that our goal at FABRIC has always been to create the next generation of DEFI applications, we felt that our foray into the NFT world wouldn’t be authentic without baking DEFI into our offering. Given the relative ease of minting on Solana, the NFT space has become quite saturated. We believe that the next iteration of NFTs will be more than just art, and will provide additional value to their owners. As a result, FAB PUNK owners will earn a share of the royalties from PUNKs sold on secondary markets. More importantly, they will also earn a share of rewards from the synthetic asset trading fees on the FABRIC dApp once it’s completed in Q1 2022 (more on our synth asset dApp here).
The FAB PUNK NFT sale has massively increased our brand equity, added value to the FAB ecosystem and made it easy for us to drive PUNK holders through our sales funnel to introduce them to our other FAB offerings. This will ultimately benefit everyone in the FAB ecosystem as more FAB dApp users will mean bigger synth trading rewards for FAB PUNK & FAB token holders. This in turn will attract more attention to both the FAB token and FAB PUNKs, and will give us a constant stream of new users for the dApp, further strengthening the FAB token and FAB PUNK offering. Some would call this a customer acquisition dream!
The FAB PUNK NFT was an overwhelming success and raised in excess of $2M in capital which will be used to manage protocol overhead, pay salaries and make crucial hires including developers, derivatives trader/ economists, legal counsel, marketing, community management and business dev. If you think you can add value to the FAB ecosystem feel free to get in touch here.
FAB community member Bravos Weatlth shared his thoughts on the FAB PUNK mint;
In addition to the capital raised, we also created strong engagement within the SOLANA community with the likes of Mathew Graham (CEO at Sino Global) and Anatoly Yakavenko (CEO at Solana Labs) both engaging with the FABRIC community and changing their Twitter Profile Picture to PUNKs. The FABRIC Twitter account also saw a massive boost in reach, engagement and followers. Over the past 28 days, we’ve had over 8k new followers, a 600% increase in impressions, more than 1.4m profile visits and an increase in mentions of almost 200%.
In addition to Twitter, our Discord has seen huge growth, going from around 2.5k members to over 9k. The success of the MINT also brought with it the first weekly royalties distribution to PUNK owners. 100% of our FAB PUNK royalties, a total of 180.66 SOL was distributed to PUNK holders.
A note on Royalties
It’s hard to ignore the recent move of powerhouse Crypto exchange FTX.US into the Solana NFT space with the launch of their NFT marketplace. Given the complex regulations centralised marketplaces have to follow, FTX.US has refused to list NFT projects that offer royalties to holders, as they may be considered securities. As a result, FAB PUNKs will not be listed on FTX.US.
The situation with FTX is unfortunate and highlights why protocols can’t rely on centralised offerings when it comes to matters of crypto, defi or blockchain. As of Monday 17th OCT, PUNK owners have received in excess of 260 Solana from royalty fees. If a centralised marketplace won’t cater to FAB PUNKs because of our promise to share fees with our community, then we’ll carry on without them. There are plenty of exchanges that share our vision of an open, decentralised financial landscape that values innovation, equality and financial autonomy.
To be clear, we’re not planning on getting rid of our royalty rewards in order to get listed on FTX or any other NFT marketplace. Additionally, we’ll be ensuring that our reward distribution mechanism is built in a trustless, decentralised way and won’t rely on the input of any individual. This way rewards will be distributed in perpetuity and will only be discontinued if the FAB DAO deem it appropriate to do so.
It’s been mentioned that the act of actively claiming as opposed to passively receiving rewards may be a loophole that allows for listing. Our understanding is that it’s the reasonable expectation of profits that matters, regardless of how those profits are received. However, these are complex issues and we’re in talks with our legal counsel to ensure we have the right footing.
Innovative tech requires innovative legislation.
Triple yield is coming
Switching gears quickly, we’re beyond excited to announce the arrival of our triple yield FAB-USDC LP pool. Yes, you heard us correctly…triple yield. With the original FAB-USDC LP pool now cooling down and emissions set to finish on the 22nd, we’ll be spinning up our FAB LP pool 3.0. Our new pool will not only emit FAB to stakers but also APEX and gSAIL too. Triple yields are a first for the Solana ecosystem and we’re thrilled to be providing this value to our users. We’ll be posting an article in the next few days with more info on our triple yield pools. If you’re interested to find out more check out this tweetstorm.
To Q4 and beyond!
FABRIC have a jam-packed Q4 that will see the introduction of our triple yield pool, the release of FABRIC governance through on-chain voting and DAO formation, and the release of the FABRIC dApp on devnet.
In addition to this, we have been able to secure a number of hires for roles including marketing, community manager, and business dev.
For a full look at all of our upcoming launches, check out our roadmap here. We’re excited to keep creating value for our FAB users and would love to hear what you all think about our upcoming triple yield launch!
Join The FAB Family
We can’t wait for you to join the community and become a part of the FAB Family.