Proposal
Invest $25-50k in the Blueberry ecosystem.
Context
Early last year AIP-78 approved the deployment of $500k worth of treasury ALCX into Blueberry protocol upon launch.
After multiple rounds of audits and the launch of an additional protocol in the meantime called Bloom/StakeUp, Blueberry is launching this week.
In short Blueberry is a lending-borrowing platform where users deposit collateral and then are able to borrow funds worth more than their deposit. The reason the platform can allow this, is that the users do not actually receive the borrowed funds, but are able to select a strategy where those funds will be deployed. This way, Blueberry is always in possession of both the collateral and the borrowed funds of the user, and is able to liquidate if the price of the assets changes unfavorably. However, the protocol remains non-custodial and decentralized, enabling high spot leverage without the common concern of counterparty risk (though it does of course introduce smart contract risk).
For a more detailed description of what Blueberry does and how it operates, please read AIP-78.
Blueberry will enable multiple pools of Alchemix to be used by borrowers, providing additional utility for our alAsset and ALCX LPs.
The success of Blueberry is thus beneficial to Alchemix.
The other protocol that has been launched is called Bloom/StakeUp and it is a protocol bringing US treasury yields on-chain by allowing anyone to lend to market makers without KYC, while the loans are over-collateralized onchain by US treasuries. Their v1, Bloom, is already live and accessible at https://www.bloom.garden/. The v2, StakeUp, will launch in the coming weeks, providing a more composable stable asset (Bloom issues an additional volatile token with each loan tranche, while StakeUp provides a stablecoin that auto-rolls and pays the same yield from Bloom). StakeUp’s volatile token SUP also receives revenue from performance fees.
The focus for Alchemix remains to be the main Blueberry lending-borrowing protocol, but there might be possible integrations for the Bloom product as well in the future.
We have the option to take part in their investment round that is just about to close.
The investment round is at Fully Diluted Valuations of:
- $20M (BLB - Blueberry)
- $15M (SUP - StakeUp)
In reality both valuations are counted double, as in this investment round the invested amount will entitle Alchemix to a stake in both protocols worth the investment amount.
So a $50k invested would buy a 0.33% stake in Bloom/StakeUp worth $50k and a 0.25% stake in Blueberry worth $50k.
The allocations would each vest with the same vesting terms: 1 year cliff + 12 month linear vest thereafter. However, once the Blueberry ve system launches, vesting stakes can also vote, effectively mirroring the behaviour of ve locked tokens.
Three different options are presented, to invest $50k, $25k or not to invest. The treasury is healthy enough that neither option would cause a strain on our runway.
Voting
Voting is single-choice for simplicity, however if the votes are split between the maximum and zero investment options, the middle option will be executed ($25k).
- Yes, invest $50k in Blueberry
- Yes, invest $25k in Blueberry
- No, do not invest in Blueberry
- Abstain
