Summary
This proposal outlines how we integrate Botto into the Base ecosystem. TL;DR, the following is proposed:
- Deploy a parallel $BOTTO ERC-20 Token Contract on Base via Supermigrate
- Deploy a $BOTTO Governance Contract on Base
- Deploy an ETH Rewards Contract on Base
- Audit Base Governance & ETH Rewards Contracts
- Make ETH Rewards Claimable on Base
- Migrate up to 20% of PoL to Base to support liquidity
- Update Snapshot Strategy to accommodate $BOTTO stakers on Base
Rationale
Base’s reach to retail consumers, its growing adoption within the onchain art community, and its integration with Optimism's "superchain" makes it impossible for us to ignore. Embedding ourselves in Base’s ecosystem increases our total addressable participants while significantly lowering transaction costs compared to Ethereum alone that allows us to engage that much longer tail of participants in new ways. Base’s close connection to the broader Ethereum ecosystem via Optimism allows us to retain strong links to mainnet while leveraging the advantages a Layer 2 brings.
The first step in accessing the Base ecosystem is bridging the token to Base. Integrating Base offers several strategic advantages specific to Botto:
New Audience Exposure: Deploying $BOTTO on Base opens up the arena for the DAO’s growth marketing potential, where we can tap into a growing, ETH-native user base on one of the leading Layer 2s. This expansion is crucial for increasing our visibility and adoption among crypto participants. We’re already taking steps to reduce barriers to entry (such as BIP-60 pending votes on minimum staking requirements), and this move opens up the possibilities for engaging with that audience.
Efficient Rewards Distribution: Base's lower transaction fees allow for more frequent and economical reward claims, eliminating the high-cost barriers present on Mainnet. This aligns with reducing minimum claim amounts (BIP-60), and makes it possible to consider other forms of rewards (e.g. reputational ones like badges).
Enhanced Collaboration: Aligning with Base positions Botto to benefit from strategic partnerships, shared resources, and potential co-marketing opportunities in the Base ecosystem, and the superchain ecosystem more broadly.
In short, we see Base as an opportunity to open up the design space for Botto participation, and this proposal is a first step towards embedding $BOTTO into Base’s ecosystem. It is suggested that upon completion of this proposal’s timeline (specified below), the DAO should look to run ongoing marketing campaigns on Base to increase the onboarding of new participants and the protocols stickiness to keep them around. This would be through protocols like Boost or Galxe, and/or natively through Botto’s own platform. This proposal does not cover steps beyond bridging the token.
Proposal Specifications
1. Contract Launches
$BOTTO Token Deployment:
- Use of Supermigrate: We would use Supermigrate, which uses the OptimismMintableERC20Factory.sol contract provided by Optimism, to deploy the $BOTTO token on Base. This would ensure a smooth bridging process and compatibility with the existing token contract.
- Superbridge Whitelist: Enable two-way bridging of $BOTTO via Superbridge, allowing seamless transfer of $BOTTO between Mainnet and Base, enhancing liquidity and user flexibility.
Governance Contract:
- Staking on Base: Deploy a governance contract on Base that mirrors Mainnet functionality. This will allow users to stake their $BOTTO tokens on Base and participate in governance activities without switching back to Mainnet.
Rewards Contracts:
- $ETH Rewards: Deploy a rewards contract that allows DAO members to claim $ETH rewards on Base. The low transaction fees on Base will enable more frequent and smaller reward claims. The $BOTTO rewards contract, which shares a similar codebase, can be easily adapted in the future if we choose to be more expansive with reward types.
2. Protocol Owned Liquidity Migration
Current Liquidity on Mainnet: The DAO currently holds $1.2M USD worth of liquidity as a Uniswap V2 pair on Mainnet (08/16/24). It is proposed to migrate an initial 10% of this PoL to seed liquidity pools on Base Uniswap.
Future Liquidity on Base: Allow for the treasury working group to migrate an additional 10% should trading volume on Base require additional liquidity.
3. User Interface Integration
4. Governance Mirroring
- Snapshot Strategy: Ensure that governance stakers on Base are included in an updated Snapshot Voting Strategy.
Timeline
An estimated timeline for perusal:
Phase 1: Setup (End of August)
We would use a trusted third-party to adjust the existing codebases of the Governance and ETH Rewards contracts. The following steps are included in this phase:
- Codebase adjustment - Base Governance Contract
- Codebase adjustment - Finalize ETH Rewards Contract
- Contract Audits
Phase 2: Deployment & PoL (End of August / Beginning September)
All contracts could be deployed as soon as the end of August or first week of September:
- Deploy token on Base
- Whitelist token on Superbridge
- Deploy Governance Contract
- Deploy ETH Rewards Contract
- Bridge 10% of PoL (ETH + BOTTO) to Base
Phase 3: User Interface Integration & Monitoring (Beginning - Mid September)
Users would immediately be able to interact with the Botto ecosystem by the end of Phase 3:
- Integrate contract interactions through Botto’s v2 UI
- Integrate reward claim events through Botto’s v2 UI
- Monitor and adjust liquidity pools based on user activity and trading volumes.
Budget
Excluding PoL, there are two line items to account for in initially rolling out $BOTTO on Base.
- Contract Development and Deployment: $3000
- Contract Audits: $3500
Total Budget: $6500
Criteria of Success
Migrating to Base absent of additional marketing efforts enabled by being on Base may not see significant uptick in userbase growth and trading volume, but here are the relevant KPIs to monitor should this proposal pass:
Core KPIs:
- Weekly Active Users (WAU): Track the number of unique users interacting with Botto on Base weekly.
- Transaction Volume: Monitor the total number of transactions across all deployed contracts on Base.
- Liquidity Metrics: Measure the liquidity depth and trading volumes in $BOTTO pools on Uniswap and Aerodrome.
- Reward Claims: Track the frequency and volume of reward claims by DAO members on Base.
Risks
Liquidity Fragmentation: Splitting liquidity between Mainnet and Base may dilute overall liquidity, impacting trading efficiency and price stability. Mitigation involves a gradual migration strategy and continuous monitoring.
Technical Challenges: Potential technical issues with contract deployments or integrations. Mitigation involves thorough testing and collaboration with experienced partners like Supermigrate.
Some FAQs
Will the contract address on Base remain the same?
No, the contract address for $BOTTO will differ. Botto’s Deployer will be the contract creator. We will provide the necessary updates to Coinmarketcap, Coingecko, and other larger token tracking services.
Will I have to be staked on Base and Mainnet to be eligible for active rewards?
No, the platform will detect both stakes irrespective of whether you use Mainnet or Base. Base users wouldn’t need to be on Mainnet, and Mainnet users wouldn’t need to use Base for existing functionality. In the future, should we distribute $BOTTO rewards, this would occur on Base.
How will we transfer active rewards to two ETH Rewards contracts?
In the short term, we will be transferring 75% of total ETH Rewards to Base and 25% of ETH rewards to the mainnet ETH Rewards contract. The mainnet ETH rewards contract has a significant buffer. The product working group and treasury working group will monitor both to ensure claims are supported, and all claims data has been logged and will continue to be logged, so we do not expect any issues. In the long run, if ETH rewards are only being claimed on Base, we would propose sunsetting the ETH Rewards contract on Mainnet.
