Bootstrapping liquidity and rewards on Base with Toupee Tech

Partnership Proposal With Toupee Tech on Base

Toupee Tech Summary

  • An entirely new protocol built with features from Solidly. Toupee is a coordinator of incentives within ecosystems built on the Solidly model. Protocols that stake LP tokens in Toupee earn extra rewards in oWIG emissions on top of the rewards earned from the underlying protocol.
  • No long-term token locking. Toupee operates with a 1-week epoch system, which is also the max token lock duration. Gone are the days of multi-year token locks.
  • 4:1 bribing efficiency. Currently our partner protocols are getting $4 for every $1 they put in bribes, the best in the Base ecosystem. Toupee is also matching bribes for all new partner protocols dollar for dollar.

BVM/ETH gauge on Toupee

How to get started with Toupee?

  • Toupee allows restaking of any base DEX LP tokens (or any other yield bearing asset) into a Toupee gauge.
  • In the case of Axelar we can use the infrastructure we’ve already created for Aerodrome pools. You will need to make an LP on Aerodrome then restake on Toupee.
  • As part of the partnership Axelar will be airdropped voting power, which can be used to bribe the Toupee gauge.

There is no other risk involved in entering the Toupee ecosystem.

What does Toupee deliver?

Toupee is an up and coming incentive coordinator on Base. It can deliver a value proposition for protcols by serving as one of its incentive hubs on the Base ecosystem

Toupee also uses its proprietary plug-in system to incorporate the rewards of underlying DEXs into its own reward structure similar to Convex. This makes it a win-win for partering protocols.

Toupee streams $oWIG emissions to liquidity pools based on weekly vWIG votes. Protocols can use voter incentives (bribes) to attract vWIG votes and oWIG emissions to build liquidity on Base in a capital-efficient way.

Motivation

Protocols incentivising on Toupee have been achieving an efficiency ratio of 4X. In other words, for every dollar in voter incentives, protocols are currently directing $4 worth of oWIG emissions and rewards towards their pools. Protocols can leverage this high efficiency to attract more liquidity at a low cost.

The effectiveness of the voting flywheel is highlighted by Toupee’s quickly growing TVL which has reached $1.3M just over one month after launch.