The platform initiated the changes in a transparency effort after a series of accusations were leveled against the company.

Rabbit Finance Press Release

Recently, community members have raised suggestions on community governance and revenue usage. We have noticed the demand of users to participate in project governance and be more transparent, so we decided to launch the solicitation of the DAO governance plan in the near future: the plan will support community members to vote for the development and governance of the project with veRABBIT. It is hoped that through the implementation of the DAO governance plan, the ecology of Rabbit Finance will be more robust and RABBIT will be stronger!

The following draft is compiled based on the discussion of community, and is published here. Rabbit Finance hopes to get more users’ participation/suggestions and has set up a 1,000,000 RABBIT governance fund to solicit better governance suggestions from users across the network.

The topics community governance recommendations are summarized as follows:

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About Product Updates and Governance

On major product updates, community members will have more voting governance rights. For each major product iteration and update, the Rabbit Finance team will publicize the plan in advance. After collecting enough user feedback, the team will provide at least 2 options and the community will determine the final plan through veRabbit voting. This governance method will make Rabbit Finance’s product iteration more in line with the needs of the community. In fact, in the upcoming upgrade of the Boardroom, we have found that the suggestions provided by the core users of the community are very professional, and we have also found that the community users are full of expectations for the launch of the new Boardroom. We firmly believe that after the new Boardroom is online, Rabbit Finance’s TVL should be raised to $1.1 billion.

Draft of the Boardroom upgrade

Regarding Protocol Income and Use

The main components of the current protocol income include: deposit reserves, reinvestment reserves, and liquidation reserves. The main purposes include buyback and burn of RABBIT, to provide liquidity for CARROT, and third-party expenditures such as marketing and security audits.

1) The plan for the use of the protocol income till now

Deposit reserve: 20% of the deposit interest income is the deposit reserve, and half of the reserve will be used for buyback and burn of RABBIT.

Reinvestment reserve: this part will all be used for buyback and burn of RABBIT, provide liquidity for CARROT, and third-party cooperation expenditures.

Liquidation reserve: For the liquidation of high-risk positions, 5% of the liquidation reward will be given to the liquidation bot as the liquidation reserve, and the income part from the reserve will be used for buyback and burn of RABBIT.

2) Based on recent community discussions and suggestions, we plan to update the protocol revenue usage plan

Deposit reserve: 20% of the deposit interest income will be used as deposit reserve, and 100% of the reserve will be used for buyback and burn of RABBIT.

Reinvestment reserve fund: The reserve fund will be used for buyback and burn of RABBIT, the Garden farming pool reward, liquidity for CARROT and expenses for third-party cooperation.

Instructions for using the reinvestment income for the Garden farming pool rewards: For example, use 100,000 BUSD worth of CAKE as reward of a new farming pool in the Garden, user can stake veRABBIT or veCARROT, and reward the reinvestment proceeds to board users to promote CARROT The use of RABBIT and the tight liquidity of RABBIT.

Liquidation reserve: For the liquidation of high-risk positions, 5% of the liquidation reward will be given to the robot as the liquidation reserve. 4% (out of 5%) of the reserve will be used for buyback and burn of RABBIT, and the remaining 1% will be used as high provision for underwater liquidation in the event of fluctuations in the market.

3) Responses to questions raised by users of other leveraged farming platforms

Recently, speculation has arisen that our platform is a vehicle for scams. Much of this speculation has come from users of other leverage platforms rather than our own. We seek to assure our users that this is not the case.

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Income Comparison Chart

The huge profits for users are from the elaborate economic model designed by Rabbit. Although the reinvestment income rate of Rabbit reaches 30%, the income of leveraged farming pools far exceeds that of other leveraged products, and the income of deposit users is still higher than that of other similar lending products.

The cost of a quality leveraged farming product in terms of marketing, product development, and security audits is extremely high. We have already stated in documents how we would use all protocol proceeds at launch time: in addition to buyback and burn, the reinvestment reserve will provide liquidity for CARROT, and will also be used for third-party expenditures. At this starting stage of the project, third-party expenditures have accounted for the main part of the reinvestment reserve. In the next stage, we will use the reinvestment reserve to improve the healthy development of the price of RABBIT and CARROT and increase the transparency of the use of this part of the funds. It will be announced to the community together with the buyback and burn data by the end of the month.

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Predictable fixed buyback schedule

1) Announcement of current buyback data

The following amount has been burnt: 380,097.82 RABBIT

Proof of burn on BSCScan.

2) Community suggestions about buyback and burn

In order to avoid arbitrage, we will not have a fixed schedule for the burn, but we will do it every month and regularly announce the burning plan by the end of the month.

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Regarding Governance Methods and Governance Reward Fund

We hope to continuously improve Rabbit Finance’s governance plan and truly create an excellent DeFi product that can create value for users and condense their wisdom and will. In the DAO community governance program, how to propose a more excellent DAO governance program is the most important goal of governance. We hope to get more suggestions from users in this regard. We are a professional and excellent development team in terms of products. We believe in the wisdom of users in terms of community governance. You are professional in this regard. Based on the above understanding, we decided to use 1,000,000 RABBIT from team income as a community governance fund to reward core users who deeply participate in the governance of Rabbit Finance DAO. This part of the expenditure will also be announced in the monthly report.

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Announcement on the Lock-Up of Team Tokens

We can see the biggest concern of users who provide liquidity is about the impact of team tokens on liquidity. Other leveraged farming products have caused their token prices to drop to a trough in the sale of team tokens. With sufficient protocol income support from the Rabbit Finance team, we decided to lock up the circulating tokens (approximately 10% of the current circulation) in the development fund through time lock, which is about 4 million RABBIT in total. Each use of the team’s tokens will be announced in advance, and through Timelock.

Timelock on BSCScan

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Out of the Hat

Rabbit Finance appreciates our competitor for corrections and suggestions from real users. We believe that as long as we maintain a vision of creating valuable DeFi products for users, we will be able to get user support. We once again advocate healthy industry competition and objective reporting by the media. 

Source : bsc.news