JOE wars are in full force and existing participants (Vector, YieldYak and Beefy) are already accumulating their stakes with more than 27% of JOE staked as veJOE controlled by these three protocols. However, there are new contenders on the horizon, namely Farmer Frank (FF), whose release is just around the corner.

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Compared to existing solutions FF will be taking a very different approach to their JOE accumulation. Instead of offering wrapped versions of JOE (i.e., zJOE, yyJOE and beJOE), they’ll allow users to bond their existing tokens in return for Farmer Frank NFTs (fNFT), which will be backed 1:1 by JOE initially, increasing the ratio as rewards get compounded. NFT bonds will have 4 tiers depending on the amount of JOE locked in them, with higher-level bonds providing better value due to the weight multiplier.

At the first stage of the Farmer Frank rollout, they will aggressively accumulate veJOE by locking JOE received from fNFTs sales in perpetuity.

After a sufficient amount of veJOE is controlled by a protocol the second phase will begin with the introduction of Farmer Frank Farms with liquidy providers being able to benefit from Trader Joe’s boosted farms without having to hold veJOE themselves. At this stage Farmer Frank will also begin to lock JOE as sJOE to provide a stable stream of USDC revenue to fNFTs holders.

As the protocol amasses sufficient veJOE and sJOE balances it will be able to transition to the third and final stage. The bond issuance might be halted to prevent the dilution of existing holders and existing bonds will be fractionalised creating fBond shares ERC-20 tokens.

Farmer Frank will launch without its own token, focusing on growing its treasury and revenue instead. However, they plan to introduce the $FRANK token between phases 2 and 3, airdropping 20% of supply to bond owners. Holders of the token will receive 20% of the protocol’s revenue, access to governance and additional benefits such as a better boost on farms.

In future, if the bonding model proves to be successful, Farmer Frank will be able to expand its fNFT offering for tokens beyond vote escrowed JOE (e.g., veSTG, vePTP and veYETI) to generate even more revenue and have even more control over Avalanche’s ecosystem. If you want to learn more about veJOE wars you can check out our previous article on Vector Finance joining them and Farmer Frank’s docs.

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