Reshaping the way project's acquire governance power
RainSPIRIT is Ola's fork of the winSPIRIT mechanism that transforms the way projects acquire voting power in SpiritSwap's gauges and maximizes rewards distributed to rainSPIRIT holders. RainSPIRIT was created to address the problems with the current methods of obtaining voting power:
Method 1: Lock SPIRIT to acquire inSPIRIT
Problem: Requires large amounts of capital and long lock times (up to 4 years)
Method 2: Offering bribes to community voters
Problem: No guarantee on the number of votes received and consequently the cost per vote
In the following sections, we will look at the unique benefits offered to two different groups:
RainSPIRIT can be acquired in one of two ways, depending on the peg between rainSPIRIT-SPIRIT at the time:
When the peg is above 1:1 - Mint RainSPIRIT Directly on Ola Finance
When the peg is at or below 1:1 - Buy RainSPIRIT in the Open Market (SpiritSwap, Solidly)
When buying rainSPIRIT, compare its exchange rate across different markets as some exchange rates might be cheaper than others. When minting rainSPIRIT, users exchange SPIRIT tokens 1:1, and their SPIRIT token gets locked into inSPIRIT forever. Users can always swap rainSPIRIT back to SPIRIT at anytime in the Open Market.
Ola Finance is building an ecosystem around the rainSPIRIT token that provides functionality and revenue streams to holders. The best way to sustain the peg in the long-term is by driving organic demand for rainSPIRIT through use-cases. RainSPIRIT is the only token that allows users to fully collect bribes, therefore returning the highest APR out of all winSPIRIT tokens. In the future, we aim to give rainSPIRIT holders the option to vote directly with their rainSPIRIT token.
In addition to the use cases surrounding rainSPIRIT, the following mechanisms are also in place to help strengthen the peg:
RainSPIRIT Minting is disabled while the token is beneath the 1:1 peg. Users who want rainSPIRIT will be directed to buy it from the open market.
Weekly SPIRIT emissions to inSPIRIT holders are used to buyback rainSPIRIT from the open market
Bribes received in stablecoins are used to buyback rainSPIRIT from the open market
A rainSPIRIT treasury consisting of bribes belonging to rainSPIRIT holders will be used to generate additional revenues for holders (View the treasury address here)