Peak FinanceWhitepaper V2
Peak Finance, at the most fundamental level, is a Tomb Fork. Prometheus Discovery Whitepaper V1 previously explored this economic model in detail. Since deploying Peak Finance, the team has remained flexible in their development goals and intentions going into the future. While the purpose is to push forward with an actively managed treasury, the model to achieve this has been altered since the V1 discovery whitepaper to isolate risk, minimize development complexity in the MVP stage, and maintain alignment with the intended revenue sharing outcomes for the $PRO token. Further, we review protocol mechanics, discuss the implications of our DApps and venture partners, explore use cases for NFTs, and share proposals for Peak Consulting Services. In this paper, we examine the sales of NFTs and ongoing platform fees to share revenue with the $PRO token while providing updates and amendments to intended and ongoing development directions to scale use cases for $PEAK and revenue sharing opportunities for $PRO.
Based on the current utility (gift card purchases through CryptoCart, Peak Lottery, and NFT purchases through NFT Apparel marketplace) and further planned utility, we believe Peak Finance has managed to differentiate itself from a generic Tomb Fork.
Our convictions on $METIS have remained unchanged since the Peak DApp launch. The layer-2 (L2) narrative remains dormant but is an inevitable trend to meet the scalability requirements for global blockchain and cryptocurrency adoption. We believe that Metis Andromeda is poised to be a critical piece of infrastructure.
Why do we believe this to be so?
Distributed ledgers with centralization risks and single points of failure cannot be called a blockchain. Historically civilization order has gone through cycles. While many variables lead to world order changes, a key metric is an extent to which power is centralized versus decentralized. Centralization has advantages in having hierarchies that provide a clear vision and manage resource allocation to achieve favourable outcomes. But whenever centralization has become excessive, it has led to the breaking down of societies.
Why is this history lesson important?
For the first time in human history, we have the tools to operate in a decentralized world that is free from the shackles of excessive centralization. It is important to consider that going forward. We do not assert that we are offering an alternate legal tender system. Instead, we present a path forward with new and emerging governance tools that give participants opportunities for the individual in a decentralized world.
- “The act of decentralizing, or the state of being decentralized; specifically, in politics, the act or principle of removing local or special functions of government from the immediate direction or control of the central authority: opposed to centralization.”
- “The action of decentralizing, or the state of being decentralized.”
- “The spread of power away from the center to local branches or governments.”
Metis Andromeda recognizes the importance of these definitions around governance. All emerging distributed ledgers and decentralized applications (DApps) require some centralization during early implementation. Metis Andromeda is the only L2, to our knowledge, that seeks to achieve complete decentralization and hence aligns with the definition of a blockchain.
“A digital database containing information (such as records of financial transactions) that can be simultaneously used and shared within a large decentralized, publicly accessible network”
While being an L2 to Ethereum, it strives to meet the essential criteria that differentiates itself from distributed ledgers by aligning with definitions of a blockchain, being that they are inherently decentralized (Bitcoin being the most salient example of a decentralized network; blockchain).
$METIS is the primary collateral asset that gives value to assets on the Andromeda network. $METIS is required to pay gas for transactions on the network (currently the cheapest fees across all L2s). Further, it will be the sole collateral asset for validator node staking to decentralize further and secure the network.
To this end, $METIS is the base asset of the ecosystem. As such, there is a range of use cases to the underlying collateral value that may not be accessible or appropriate for $METIS that can be pursued by ecosystem assets that utilize its collateral value. The more $PEAK is purchased, the greater the total value locked (TVL) for $METIS, having a net benefit to the market value of $METIS and the entire Andromeda ecosystem.
In this paper, we reflect on progress in pursuing use cases for the $PEAK token as an algorithmically pegged asset to the value of $METIS. Further, we explore areas of ongoing work and reflect on changes made to the Prometheus Discovery Whitepaper V1.
PEAK FINANCE DAPP
Peak Finance at the protocol level is a fork of Tomb Finance repurposed for Andromeda Mainnet. Prometheus Whitepaper covers the protocol and token dynamics in depth, but as a recap:
$PEAK is a token algorithmically pegged to the price of $METIS. When used sustainably, this model ultimately leads to $METIS removed from circulation to give value to $PEAK. At Peak Finance, we believe those long-term on $METIS understand the benefit of suppressing $METIS from circulation.
The mechanics are simple, based on the ratio of $PEAK to $METIS token in a liquidity pool, we assess what is known as a peg that indicates the protocol is in one of three states:
Equilibrium (1.00 – 1.05) – If 1000 $PEAK tokens are in a liquidity pool with 1000 $METIS present, the peg is 1:1. That is, there are the same quantity of $PEAK tokens per $METIS. Given that $METIS is the sole collateral asset for $PEAK, the pegged asset follows the price movements of $METIS. If $METIS is worth $100 per token, $PEAK is worth $100 per token. Should $METIS increase to $120 per token and the ratio of $PEAK to $METIS remains the same, then $PEAK will follow $METIS price movements exactly.
Deflationary (x < 1.00) – If there are 1200 $PEAK tokens in a liquidity pool with 1000 $METIS present, the peg is 0.8:1. That is, there is more $PEAK in circulation than the quantity of $METIS available in the liquidity pool. In this example, if $METIS is worth $100 per token, $PEAK is worth $80 per token. The protocol enables the $POND (Bond) token to become available below a peg of 1:1. $PONDs are non-liquid assets. That is, they are not exchangeable in liquidity pools. $ POND’s function is to reduce the circulating supply of $PEAK by burning the users’ $PEAK in exchange. $POND is later redeemable when the peg is greater than 1.01 and can be redeemed at a premium when the peg is 1.10 and higher (redeem more $PEAK than what was burned for $POND).
Inflationary (x > 1.05) – If 1000 $PEAK tokens are in a liquidity pool with 1200 $METIS present, the peg is 1.2:1. That is, there is less $PEAK in circulation than the quantity of $METIS available in the liquidity pool. In this example, if $METIS is worth $100 per token, $PEAK is worth $120 per token. When the peg is greater than 1.05, The Summit will print $PEAK tokens to $PRO stakers to increase the circulating supply of $PEAK to correct the ratio of the liquidity pool. In this state, users are minting $PEAK greater than the value of $METIS. The Summit emissions continue until the protocol and the $PEAK price has restored equilibrium (1.00 – 1.05) or re-entered a deflationary state (less than 1.00).
In real-time, the value of $PEAK is calculated by the ratio of tokens in a liquidity pool with $METIS. However, to govern the protocol in a way that minimizes manipulation of the liquidity pool to coerce an inflationary epoch, the protocol transitions incrementally by what is known as the time-weighted average price (TWAP). The average price is calculated over 6-hour intervals, known as an epoch.
For example, price movements pushed the peg from 1.00 to 1.07, which would otherwise immediately trigger an inflationary epoch. The TWAP over 6 hours would be 1.035. In this scenario, an inflationary epoch would not activate until the TWAP reaches a peg of 1.05 that may only occur during the following epoch calculation.
Peak Protocol Tokens
$PEAK – Token contract fork of $TOMB. $PEAK is an algorithmically pegged asset to the value of $METIS, the governance token for the Andromeda network. $PEAKs value is maintained based on the ratio of $METIS in the liquidity pool. $PEAK is the utility token and payment currency for current and emerging DApps on Metis Andromeda. No Fixed Supply.
$POND – Token contract fork of $TBOND. $POND is an illiquid asset that reduces $PEAK from circulation through a burn and mint process that presents an opportunity for 1-to-1 redemption for $PEAK above 1.01 and for greater redemption above 1.1 (receive more $PEAK than what was burned). $POND is an effective means of arbitraging deviations in the peg, i.e., if the peg is 0.8, $PEAK can be purchased at 80% of the value of $METIS, which can later be redeemed for more than 1 $PEAK when the peg is 1.1 or higher. No Fixed Supply.
$PRO – Short for Prometheus, $PRO has been altered significantly from its $TSHARE token contract fork and is a key differentiating product of Peak Finance. The difference resides in the token supply and taxation mechanics. Maximum Supply of 7,000,000.
Standard Tomb Forks typically do not have a long shelf-life. Given it is an incentivized liquidity mining model that favours large capital to achieve a greater share of emissions, this often leads to those that would snipe the peg (only have exposure to the protocol when the peg is greater than 1.00). Other participants may only participate if it has the optics of a degen pump and dump (obtain large shares of a reward token to sell at market quickly).
From Peak Finance’s perspective, we believe the peak market value of $METIS remains unrealized and is undervalued based on its tokenomics. Recognizing the performance of Tomb Finance, the protocol was able to reward its users significantly by no action of its own – but rather the price performance of the underlying token $FTM.
We cannot utilize $PEAK beyond the original design without a robust taxation structure to insulate investors with a long-term stake in the protocol and disincentivize investment behaviours that otherwise damage protocol health.
$PEAK Taxation: $PEAK utilizes a scaling taxation method that is derivative of the original $TOMB fork token design. As the peg goes below 1.5, the taxation for $PEAK sales increases; as the peg increases, the tax on $PEAK is reduced. There are three key rationales for this mechanic.
- Taxation imposes conditions on $PEAK when sold relative to $METIS to meet the protocol’s needs in reducing the circulating supply with each sellable instance.
- Taxation restricts exit liquidity and compounds losses for those seeking to arbitrage deviations in the peg. $PEAK is not designed to be traded on a speculative basis but is a vehicle for longer-term investors in $METIS.
- The design plays into a key psychological mechanic of opportunity cost versus explicit loss. When $PEAK is received as a protocol reward from The Summit emissions, the utility realized through our products often outweighs the cost of token taxes.
- $PEAK is a conviction investment. If you believe $METIS is undervalued, then building a position in $PEAK when the protocol is below 1.00 presents an opportunity to maintain exposure to price movements of $METIS and the possibility of increased redemption of $METIS based on the state of the peg. If you purchase $PEAK at a 0.8 peg and sell at a 1.2 peg, after taxation, you should redeem 26% more $METIS than the initial purchase.
The $PRO token exposes holders to emerging revenue streams that follow a buyback function. Traditionally, a Tomb Fork share token becomes valuable as the protocol approaches an inflationary epoch, I.e., securing a greater share of $PRO in The Summit exposes the user to a greater share of $PEAK emissions. Most Tomb Forks do not pursue utility and amount to little more than a speculative instrument.
Due to share tokens’ relationship with their respective protocols, Tomb Fork Share Tokens have a history of being gamed. A common strategy is for the user to accumulate $PRO below peg and enable emissions to inflate the value of $PRO, which inevitably leads to a capitulation.
$PRO taxation applies under the following conditions:
- $PRO Taxation occurs with EVERY sell.
- $PRO Taxation occurs with buys when the peg is ABOVE 1.05.
$PRO taxation distribution is as follows:
- 10% total taxation when applied to buys and sells
- 4/10% burned (forever removed from circulation).
- 6/10% returned to the Peak treasury as $PRO.
Within the abovementioned parameters, we provide a rationale for a $PRO taxation token:
- $PRO taxation presents only an opportunity cost for long-term supporters of the protocol. Users are rewarded for supplying $PEAK-$METIS and $PRO-$METIS liquidity pairings. As such, they are not explicitly purchasing the token; instead, they receive $PRO tokens as rewards for their ongoing support of the protocol.
- $PRO sell taxation limits harvest liquidations or those seeking to quickly extract value from farming by dumping the share token instead of consolidating their positions in the protocol.
- $PRO taxation adversely impacts those that snipe the peg. A $PRO buy tax is only applied when the peg exceeds 1.05. Buy tax minimizes gaming of the share token and insulates liquidity suppliers from having their share of The Summit diluted by participants seeking short-term gains at their expense.
- $PRO sell taxation makes the token net deflationary once all tokens get released into circulation at the end of $PRO emissions (April 2023).
- $PRO’s core value proposition is to collect a share of the revenue from alternate income streams through buybacks over time. Price gains over time increasingly become derivative of the revenue-generating activities outside of the protocol. To capitulate on price appreciation through alternate revenue streams, we believe a 10% exit fee is reasonable and enables the growth of a treasury to protect the protocol.
A user’s Strategy should recognize the state of the protocol (best represented by the $PEAK Peg) and implement strategies that play into the protocol’s needs. By respecting the peg, users are to position themselves to realize gains when the time is right (most often, this is during an inflationary epoch when $PEAK prints from The Summit).
In our view, a diversified and balanced approach is encouraged, and one should never invest more than they can afford to lose.
The following are simple guidelines that do not constitute financial advice but are generic approaches that can be taken to participate in the protocol across different states. Any capital allocation percentages are merely suggestions and should not be considered investment advice.
When the protocol is above 1.05, we are in an inflationary epoch. The following approaches may be considered optimal for new entrants:
- 60% of intended capital to purchase $PRO that is staked into The Summit to receive $PEAK emissions.
- 40% of intended capital should remain as $METIS for liquidity purposes.
- Redeem a % of $POND holdings, and retain a % to seek premium redemption above 1.1.
- Suggested use of rewards for new users:
- Pair a % of $PEAK rewards as they become available with idle $METIS into the liquidity pool through the Peak Liquidity Router. Stake $PEAK-$METIS LP Tokens into the $PRO Farms to secure future $PRO emissions.
- Pair a % of $PRO rewards with idle $METIS into the liquidity pool through the PRO Liquidity Router. Stake $PRO-$METIS LP tokens into the $PRO farms to secure future $PRO emissions.
- Utilize a % of $PEAK harvests to make purchases. Discussed further in the token utility section.
- Use a portion of your $PEAK harvests to purchase $PRO to compound your position in The Summit to receive a large share of emissions.
- Realize a % of $PEAK harvests as profit by cashing out into $METIS.
Existing investors may follow the above structures, but after being exposed to several inflationary epochs and building a sufficient position, long-term investors are encouraged to explore new and emerging use cases for $PEAK to realize ongoing value.
When the protocol is between 1.00 and 1.05, we are at equilibrium. The following approaches may be considered optimal for new entrants:
- 25% of intended capital to purchase $PEAK to be paired with $METIS in the liquidity pool.
- 25% of intended capital remains as $METIS for liquidity provision purposes.
- 50% of intended capital to purchase $PRO to stake into The Summit.
Existing investors are less likely to follow the above structures if they have maintained exposure to $PRO emissions over an extended period. They may be inclined to reduce their $PRO-$METIS liquidity pool position to:
- Reduce liquidity pool depth to allow greater price movements and reduce exposure to price movements that may lead to impermanent loss.
- Reallocate $PRO tokens from the liquidity pools into The Summit to increase their share of emissions.
- Reallocate idle $METIS from the $PRO-$METIS LP pairing to instead pair into $PEAK-$METIS to increase the depth and support the peg.
- Redeem a % of total $POND holdings to $PEAK. Using redeemed $PEAK for $PEAK-$METIS LP pairings may be optimal.
When the protocol is below 1.00, we are in a deflationary epoch. The following approaches may be considered optimal for new entrants:
- 25% of intended capital to purchase $PEAK to be paired with $METIS in the liquidity pool. Determine a % of acquired $PEAK to burn for $POND.
- 25% of intended capital to purchase $PRO to be paired with $METIS in the liquidity pool (over time to manage impermanent loss).
- 50% of intended capital remains as $METIS for ongoing liquidity provision and dollar-cost averaging purposes into $PEAK, $POND and $PRO.
Existing Investors may take the above approach except for investing in $PRO, mainly if the investor has secured a share of $PRO emissions.
For all investors, dollar-cost averaging into supplying liquidity over time is the most risk-effective way to mitigate any impermanent loss you may experience in providing $PRO-$METIS LP over time.
By design, $PEAK seeks to be at equilibrium with the number of $METIS tokens in the pool. As such, there is significantly less risk of impermanent loss when supplying $PEAK-$METIS liquidity.
As you may have observed, taking the above preparations based on the state of the epoch will position you for when the epoch transitions. Respecting the peg leads to optimal results for investors in the long term. To reiterate, the above is not investment or financial advice but is how one may approach managing their positions.
TOKENS AS UTILITY AND SECURITY
For this whitepaper, we base our exposition on two key definitions:
Utility Token (noun):
“A utility token is a type of cryptocurrency token primarily used to access a company’s product or service. They are not meant to be used as an investment or store of value (like Bitcoin).”
Security Token (noun):
“Security tokens are used to represent ownership of real-world assets and financial instruments, such as company stocks, rights to dividends, profit sharing rights, etc.”
$PEAK meets the definition of a utility token through the ongoing expansion of payment use cases that give users access to emerging products and services.
$PRO meets the definition of a security token through the ongoing expansion of revenue streams that buyback the token to meet two goals:
- Reduce circulating supply through buyback and burn mechanics. Capturing real-world revenue and burning the token increases the price floor for the token.
- To build $PRO positions in the primary, subsidiary, and partner treasuries to continue supporting the protocol by supplying liquidity.
While some may deem a security token an undesirable category for a cryptographic asset due to general obscurity around asset definitions and regulations, it is important to note the direction regulatory bodies have taken in recent months.
Key among these is that a fully decentralized protocol governed and maintained by a community does not fall under the category of a security token as no centralized entity or body can exert direct control over the protocol.
As such, the goal of Peak Finance is to reach a phase of implementation that will see all governance and protocol maintenance decisions handed over to the Peak DAO. This act will effectively make $PEAK and $PRO untouchable from a regulatory perspective.
We will now discuss use cases and revenue-sharing opportunities for the $PEAK and $PRO tokens.
NFT APPAREL MARKETPLACE AND STOREFRONT
First and foremost, it is essential to note that NFT Apparel is a registered company in Australia and, as an LLC entity, is distinct from the Peak Finance protocol. However, both ventures are maintained by team member contributions and revenue/utility-sharing integrations.
The NFT Apparel Marketplace on Andromeda is the go-to for the Peak Finance community, and the marketplace is also available now on Polygon and Ethereum. Buying and selling through the NFT Apparel Marketplace provides utility for the $PEAK token while directly supporting Peak Finance through revenue-sharing platform fees with the $PRO token. Partner NFT projects that import their collections and direct their communities to transact on the NFT Apparel Marketplace directly support the Peak Finance community. In effect, every activity on the NFT Marketplace will positively impact Peak Finance.
The NFT Apparel Marketplace 2% platform fee is competitive with Opensea (2.5%) and on par with LooksRare. NFT Creators benefit from lower platform fees by realizing a greater share of secondary market royalties for their collections.
Distributions are as follows:
User buys NFT with $PEAK:
- 1% Burned
- 1% to NFTA Treasury
Or, 50% of platform fee burnt as $PEAK — 50% sent to NFTA treasury as $PEAK.
User buys NFT with $METIS:
- 5% to NFTA Treasury
- 5% purchase $PRO for NFTA Treasury
Or, 75% platform Fee sent to NFTA Treasury as $METIS — 25% returned as $PRO.
User buys NFT with $USDC:
- 1% to NFTA Treasury as $USDC
- 5% Buyback $PEAK
- 5% Buyback $PRO
50% sent to NFTA treasury as $USDC – 25% buyback $PEAK, 25% buyback $PRO; sent to NFTA treasury.
User buys NFT with $ETH on ETH Mainnet:
All platform fees are collected in $ETH and stored in NFTA Treasury on Ethereum Mainnet. It will be bridged and divvied up at NFT Apparel’s discretion.
User buys NFT with $MATIC on Polygon Mainnet:
All platform fees are collected in $MATIC and stored in NFTA Treasury on Polygon Mainnet. It will be bridged and divvied up at NFT Apparel’s discretion.
All transactions outside of the Andromeda marketplace are withheld and utilized by treasury at its discretion. When the NFT Apparel token ($NFTA) becomes available, the redistribution of platform fees will likely be subject to change.
For more information on NFT Apparel, please refer to the NFT Apparel Whitepaper.
The primary focus for Peak Team members involved with NFT Apparel LLC is the development of NFT Apparel Web 3. That is an integration of the existing marketplace with a custom-made storefront that requires NFT staking to customize merchandise and receive a share of profit revenue (t-shirts, pants, flags, beanies, hats, bean bags, metal prints, framed prints, etc.). Standard apparel is proof of concept as we continue to scale to more elaborate use cases and revenue-sharing opportunities for NFT holders.
At a high level, we believe that allocating resources to the NFT Apparel build will solve the following macroeconomic problems:
- Addresses counterfeiting of goods. Merchandise produced through NFT Apparel will be verifiable as authentic on-chain.
- Copy-paste NFT Trope. Having an on-chain verifiable piece of merchandise will not be possible without using an NFT to produce merchandise.
- A platform for Brands and Retail Start-Ups. Those seeking to protect their brands may be inclined to achieve proof of ownership through conversion from standard images into NFTs. A direct platform for merchandising increases accessibility for artists and businesses at any scale.
- Revenue sharing. Those directly invested in NFT Apparel will be the primary benefactors from redistribution and incentive structures around the use of the $NFTA token.
- Utility for NFTs. Even NFTs that have no intrinsic value per utility (known as overpriced JPEGs or PFPs) will be able to achieve utility on aesthetics. I.e., it is more likely an NFT image that is well-designed aesthetically will have greater resonance with NFT Apparel customers.
$PEAK is the sole currency for the $PEAK Lottery system, a fork of the popular Pancakeswap Lottery system. Participation in the $PEAK Lottery is ideal for diversifying the utility of $PEAK rewards. Recall opportunity cost versus explicit loss.
We believe the lottery system is ethical and does not expose the user to excess harm when $PEAK rewards from The Summit are the primary source of funds to purchase tickets. Those who choose to purchase $PEAK to participate need to be aware they are gambling and act responsibly.
Furthermore, during an inflationary epoch, the goal is to see emissions sustained. The Lottery burns 20% of the total prize pool before users can claim their prizes. Having a deflationary effect on $PEAK supply to maintain emissions during inflationary epochs.
If the digits on your tickets match the winning numbers in the correct order, you win a portion of the prize pool. The reward structures are as follows:
- 2% of $PEAK prize pool awarded for 1 match.
- 3% of $PEAK prize pool awarded for 2 matches.
- 5% of $PEAK prize pool awarded for 3 matches.
- 10% of $PEAK prize pool awarded for 4 matches.
- 20% of $PEAK prize pool awarded for 5 matches.
- 40% of $PEAK prize pool awarded for 6 matches.
- 20% of the total $PEAK prize pool burned from circulation.
Peak Finance has engaged in a strategic partnership with the team at CryptoCart.
CryptoCart provides a range of services that enables gift cards and products from their marketplace for purchase with cryptocurrencies. Their primary function is to provide a settlement layer between web 3 interfaces and gift card suppliers (i.e. your crypto is changed to $USDC that is then paid to the gift card supplier).
$PEAK is an accepted currency for purchasing gift cards in various jurisdictions to be spent at multiple retailers and grocers. Check-in regularly at https://giftcards.cryptocart.cc/ to see what gift cards are on offer.
Peak Finance engaged in a strategic partnership with CryptoCart, as we view purchasing gift cards as one of the simplest yet most profound ways to realize real-world utility from $PEAK reward harvests.
In essence, it becomes a viable strategy to use a portion of $PEAK rewards to purchase gift cards that will enable you to make purchases at your nearest major outlets.
Wanting to stock up on groceries to get by for the week? $PEAK rewards enable that.
Need to upgrade your laptop or electronic devices? $PEAK rewards enable that.
Want to book a holiday for the family? $PEAK rewards enable that.
Sometimes the most challenging thing an investor can do is take profits in a measured way – or at all when the time is right. The option to immediately realize profits through accessing financial tools (gift cards) that assist with general living expenses is a critical piece of utility for $PEAK that sets it apart from standard Tomb Fork seigniorage tokens. In this regard, we believe Peak Finance can serve an economic function as opposed to being a speculative vehicle.
Be mindful that sell taxes apply at checkout, as using $PEAK to purchase gift cards invariably leads to $PEAK being sold into $USDC to achieve settlement on those purchases. Using $PEAK rewards from The Summit is optimal to make payments on gift cards rather than buying $PEAK for payment. This reward dynamic continues to have a deflationary effect on the supply of $PEAK while also not leading to capital exhaustion.
These taxation conditions will likely change, but for now, we recommend using $METIS or $NETT for immediate gift card purchases to avoid taxation.
ONGOING FUTURE DEVELOPMENTS
DAOs, NFT Utility and Treasury AUM Services
As mentioned in the Prometheus V1 Whitepaper, Peak Finance intends to implement treasury services with the initial designs focused on DAO mechanics.
Given these mechanics (such as intuitive trustless execution) are still a fair way off, we have reduced the urgency to implement elaborate DAO structures of our own.
Because the likes of DAOMaker, Ethereans OS, and Aragon have been building DAO infrastructure before 2020 and still operate on minimally viable products (MVPs), the complexity and unique use cases for DAOs are evolving faster than the existing infrastructure can keep up. In other words, efforts to deploy DAO infrastructure quickly become outdated.
Furthermore, one of the primary catalysts for deploying on Metis Andromeda is mainly in anticipation of Decentralized Autonomous Companies (DACs).
Rather than reinvent the wheel, we are taking a minimally viable approach to implement DAOs with various use cases. Specific to Peak, our priority is to relinquish contract ownership for Peak Finance and governance decisions to Peak DAO.
On-chain DAOs that are protocol-integrated are not a new concept and, in the quest for decentralization, are an essential item on our development horizon to ensure longevity in an investment landscape clouded by regulatory uncertainty.
Peak Ventures Consulting
The Peak Finance team comprises members with a wealth of experience before the launch of Peak Finance in advising project start-ups, Discovery, assisting with community management and marketing, and providing fundamental and technical advice for individual investors and project teams.
Given that the team are heavily involved in consultations with other projects, we announce a new proposal under consideration within the Peak Ecosystem.
Start-up advisory and development consultant services.
The following is a tentative proposal and is subject to change. However, the short-term goal is for team members to utilize their expertise in assisting start-up projects with the proper advice and resources that bring value back to the Peak ecosystem.
The exciting part about Peak Ventures Consulting is that participation and rewards are not limited to the Peak Team. Peak Ventures Consulting also expands on our initial Peak University proposition. When such a program goes live, we will seek to onboard the community and reward them for their contributions!
In the future, any contributor that satisfies qualifying criteria is eligible to contribute and be rewarded for doing so. The following is a proposed pricing template in $USD. 75% of $PEAK will be allocated to contributors, and the remaining 25% goes to the Peak Consulting Treasury.
Introduction Project Consultation:
- Free 30-minute alignment call.
Follow-up Project Consultations:
- $100 of $PEAK per hour
Ongoing Project Consultations (4 hours maximum per month):
- Minimum $300 of $PEAK per month
Maintenance and server requirements provided by Azoria:
- Costs are needs-based per computational and uptime requirements.
Strategic Investment Consultations (technical and fundamental advice):
- Minimum $100 of $PEAK per hour.
Marketing outsourcing services:
- $100 of $PEAK per hour during the discovery call.
- Peak Consulting management fee: 15% surcharge on proposed third-party service costs.
Community management services:
- $100 of $PEAK per hour for strategic consultation.
- Starting rate of $100 of $PEAK per week for outsourcing community moderators.
- Development workshop. $1500 of $PEAK.
- 1 x 4hr session for Discovery,
- 1x 4hr session for Strategy,
- Presentation of Strategic Proposal.
- Idea formation and strategy workshop (4hr session) $1000 of $PEAK.
- Media content: $150 of $PEAK per hour spent designing graphics, branding, and promotional video content.
- Marketing Proposals.
- Project proposal documents (Whitepapers/Litepaper/Technical Roadmap Construction)
$PEAK will be payment currency for services rendered and follow a fixed redistribution scheme:
- 75% of $PEAK to core team/community contributors and managers.
- 25% of $PEAK to the Peak Consulting Treasury.
Please note. The above is a tentative proposal for costs and types of services rendered, and outlined services are by no means exhaustive. These services will vary in price and function over time and at the discretion of governance proposals from the Peak DAO.
The future of work appears to be heading toward decentralization as more folks find themselves working from home. Having a decentralized means of being rewarded for your contributions while placing the responsibility on the individual to develop their reputation ensures that the individual and ecosystem can mutually thrive into the future.
Future developments of Blockchat DAO will primarily facilitate Peak Ventures Consulting.
While the scope of Blockchat has indeed evolved to address perceived communication limitations between DAOs, we view this work to be synonymous with advancing a work bounty system for Peak Finance DAO.
Blockchat intends to provide an intuitive social media-like platform that recognizes external DAOs, and their members, as network participants. Through collaboration, DAOs can set up joint proposal forums that enable secure and private idea exchange between 2 or more DAO entities.
Through DAO-2-DAO communication, constituents can discuss joint proposals to allocate their combined resources to meet shared ends. Joint submissions and proposal outcomes will be recorded on-chain, ensuring proof of accountability. Like the Peak Ventures Consulting proposal above, there will be requirements for a reputation system to be implemented.
Reputation systems are still very much in Discovery and early implementation as various networks begin recognizing soul-bound tokens as a viable means of establishing decentralized identities. Again, like DAOs, much of the existing reputation infrastructure is still in its infancy.
No hard date has been set for an MVP implementation of Blockchat DAO while fundraising efforts, through the sales of Metis Ninja NFTs, are ongoing.
Intended use cases:
- $PEAK as collateral to secure the messaging network,
- $BCD as collateral staked asset to maintain D2D channels and vote on shared proposals.
Join the Telegram group: https://t.me/blockchatdao
Jive Syndicates – Fractionalized NFT Ownership of Play-2-Earn Activities
In Prometheus Whitepaper V1, we discussed using guilds or trustless accounts containing NFTs governed by a DAO and loaned out to players to utilize for a share of rewards between the player and the DAO.
Jive Syndicates is an NFT Horse syndicate that collects investors’ funds to purchase shared Zed Run NFTs. For those familiar with existing digital horse/greyhound racing providers (such as Trackside), digital assets are owned by the digital racing service provider. They profit through customers that place bets on digital races.
Zed Run gives users shared ownership of the digital assets that race each other by transforming them into NFTs. In addition to racing, users can breed their Zed Run NFTs to produce offspring or new racing NFTs.
Peak Ventures have taken an interest in a fractional ownership model for play-to-earn NFTs through Jive Syndicates. The Syndicate has a range of governance responsibilities. Collective decisions range from when to race Zed NFTs, when to breed, when to sell on the secondary market, when to purchase new Zed NFTs, and when the DAO should take profit.
Jive Syndicates exists today and has been operational for over one year. To date, the founders of Jive Syndicates have collected funds and managed on behalf of the Syndicate. Going forward, Jive wishes to transition into on-chain governance. Jive is currently in Discovery on betting Dapp integrations and fractional asset management governance tools.
Peak Finance has pivoted its asset management vehicle toward utilizing NFT treasuries to raise the initial capital to implement actively managed strategies.
In the context of the Peak Treasury, it has been untenable to speculate or extract value for treasury utilization purposes from volatile ecosystem assets during a bear market. However, while some in the Peak community do not seek exposure to unfavourable market forces, many do wish to participate in trading activities outside the Peak Treasury’s scope.
With this in mind, we introduce four different NFT collections with different AUM strategies.
From Peak Finance’s talented in-house graphic designer, we have launched METIS Ninjas that are currently live for mint and available to buy and sell on the NFT Apparel Marketplace and Tofu.
Other than looking amazing, the purpose of Metis Ninjas is to pre-fund the development of Blockchat DAO and receive whitelist eligibility on future token sales.
5000 uniquely designed Metis Ninjas are currently available for mint.
Of the initial mint:
- 65% goes to the BlockChat DAO Treasury,
- 10% goes to buy and hold $PRO token in the BlockChat DAO Treasury,
- 25% creator fee.
6% will be the fixed royalty rate for sales on the secondary market
Of the royalties:
- 2% buyback of $METIS and hold in the BCD Treasury,
- 2% buyback of $PRO and hold in the BCD Treasury,
- 2% creator fee.
Visit the website to mint yours today!
Aeacus Capital is regulatory compliant and has the technical skills to manage a treasury actively. But, given a downturn in the market, there were scarce opportunities to pursue fundraising opportunities through $PRO taxation into the Peak Treasury.
Aeacus Capital and Peak Finance are two distinct entities. It was decided there were insufficient degrees of separation between the two by having Aeacus manage the Peak Treasury. However, Aeacus also has a vested interest in the success of Peak Finance through the $PRO token.
Poseidon NFTs offer an opt-in approach to actively managed strategies which continue to have a net benefit on the Peak ecosystem.
There will be two classes of NFTs out of the 133 ‘Poseidon NFTs’ available.
Of the initial mint:
– 75% to be utilized in treasury as $USDC; held by Aeacus Treasury
– 10% to buyback $PRO; held by Aeacus Treasury
– 7.5% creator fee to Aeacus
– 7.5% developer fee to Peak
12% will be the fixed royalty rate for sales on the secondary market
Of the royalties:
– 6% buys back $USDC to grow the treasury; held by Aeacus treasury
– 2% buys back $PRO, adds to LP; held by Peak Treasury
– 2% buys back $METIS for LP-pairing; held by Peak treasury
– 2% treasury management fee to Aeacus
Airdrop a portion of profits through treasury proportionally to Poseidon NFT holders once per quarter.
For example, if trade activities during a quarter grow the treasury from $10,000 to $20,000 – 25% of $10k profits are swapped to $PRO and airdropped to NFT holders. The remaining treasury would be $17500, and future profit airdrops cannot take from this $17500 and only distributes a % of total profits made in the next quarter.
% Of profits distributed are at the discretion of Aeacus Capital based on quarterly performance disclosed in treasury reports.
Poseidon NFT holders will also access an exclusive access channel in Peak Finance.
There are 133 in total.
100 NFTs are regular Poseidon’s, while 33 are ‘Kings’ with greater trait and revenue potential value.
‘Kings’ can be obtained randomly at the mint. Each mint presents a 24.8% chance to mint a ‘King’ eligible for twice the share of profit redistributions, and 10% of profits approved for redistribution will buy back $PRO.
Of the remaining profit redistribution:
- 50% of profits to share among the 33 kings.
- 50% of profits to share among the 100 normal holders.
For example, if there were $100k profits, $50k profits would be retained by the treasury to boost future purchasing power.
Of the remaining $50k profits:
- $5000 in profits buys back $PRO.
- $22,500 in profits shared between the 33 Kings
- $22,500 in profits shared between the 100 normal holders
The size of the treasury and trading performance infer the value for the Poseidon NFTs. Secondary market activities will provide ongoing royalties into the treasury. Speculation grows the Aeacus Treasury with ongoing royalty buybacks of $PRO.
Swamp Rat NFTs
Swamp Rat NFTs are inspired by one of Peak Finance’s cofounders, known throughout the Metis community as the Louisiana Swamp Rat (LSR).
Adrian is extremely bullish on $METIS in the long-term and is one of Metis DAOs most vocal supporters. At the commencement of Andromeda Mainnet, the Swamp Rats DAC was one of the highest ranked DACs by total $METIS staked – many out there share LSR’s bullishness on $METIS.
To put those bullish words into action, it made sense for LSR to have his NFT collection that directly goes toward supporting the $METIS ecosystem through validator staking.
Running a validator node for a network is the most effective action to support any blockchain ecosystem.
There will be 5000 Swamp Rat NFTs.
Of the initial mint raised:
– 70% $METIS; held by Swamp Rat Treasury for validator node staking
– 5% buys back $PRO; held by Peak DAO Treasury
– 5% buys back $PEAK; held by Peak DAO Treasury
– 10% creator fee to LSR
– 10% developer fee
12% will be the fixed royalty rate for sales on the secondary market
Of the royalties:
– 8% collected as $METIS in Swamp Rat Treasury
4% reinvests into validator node; held by Swamp Rat Treasury
4% used to pair with $PEAK + PRO into liquidity pools; held by Peak DAO Treasury
– 2% buys back $PEAK to pair with $METIS; held by Peak DAO Treasury
– 2% buys back $PRO to pair with $METIS; held by Peak DAO Treasury
- 70% of the initial mint to be raised for validator node collateral.
- When validator rewards go live, the rewards will distribute as follows:
- 33% of $METIS reinvested as collateral onto validator node
- 5% of $METIS to buyback $PEAK to pair with 16.5% $METIS (33%)
- 5% of $METIS to buyback $PRO to pair with 16.5% $METIS (33%)
- $PRO Farming rewards and later $PEAK inflationary Rewards from LP positions built by the Swamp Rat Treasury are distributed to NFT Holders.
The value of Swamp Rat NFTs can be inferred by the size of the total collateral staked on $METIS validator nodes. Secondary market activities will provide ongoing royalties that compound back into the Metis validator node. Speculation on the secondary market grows validator stake and the Peak Treasury with ongoing buybacks of $PRO and $PEAK to build liquidity positions.
Peaking Duck NFTs
Peaking Ducks are the mascots for Peak Finance. The goal is to have instances of actively managed treasuries coming to support the ecosystem and profit share with NFT holders. We have decided to utilize these NFTs per the signals provided in the CCI newsletter, which a cofounder and highly involved community member author releases monthly.
There will be 5000 $PEAKing Ducks in total.
Of the initial mint:
– 80% of mint raised to fund trading treasury; Held by Trading Treasury
– 10% creator fee
– 10% Buyback $PEAK
12% will be the fixed royalty rate for sales on the secondary market
Of the royalties:
– 6% buyback $USDC to grow the treasury; Held by Trading treasury
– 1% buyback $PRO, adds to LP; Held by Peak DAO treasury
– 1% buyback $PEAK, adds to LP; Held by Peak DAO treasury
– 2% buyback $METIS for manual LP-pairing; Held by Peak DAO treasury
– 2% buyback $METIS as the treasury management fee
Airdrop a portion of profits through treasury proportionally to Peaking Duck NFT holders once per quarter.
For example, if trade activities during a quarter grow treasury from $10,000 to $20,000, 25% of $10k profits are airdropped to holders in $PEAK. The remaining treasury would be $17500. Future profit airdrops cannot take from this $17500 and only distributes a % of total profits made in the next quarter.
% Of profits distributed are at the discretion of Peak Finance based on quarterly performance.
$PEAKing Duck holders will also have access to a special locked channel in Peak Finance for signal updates.
Please note, the following scenarios are tentative for indicative purposes only.
Discussion – Achievements, Current Focus, and Future Direction
Since the launch of Peak Finance at the beginning of April 2022, the goal has remained the same. We believe a Tomb Fork, while a speculative financial instrument, is still a viable protocol to regulate currency issuance in response to economic demand.
While we are not proposing that $PEAK alone will replace money, we believe building demand for payment currencies with specific utility and sharing revenue with protocol share tokens is a worthwhile economic experiment.
Market and economic conditions have been unfavorable in recent months, but the team have continued to build the foundations in anticipation of brighter days ahead.
Tomb Forks that are released as a “cash-grab” neglect to pursue methods of utility and revenue sharing opportunities for their investors.
To date, we believe that $PEAK has differentiated itself from a standard Tomb Fork in that:
- $PEAK is a payment currency for Peak Lottery
- $PEAK is a payment currency for NFT Apparel Marketplace on Andromeda; buy, sell, and auction.
- $PEAK is a payment currency for CryptoCart Gift Cards for everyday purchases
Similarly, $PRO currently differs from the $TSHARE token in that
- $PRO has a maximum supply of 7,000,000.
- 10% Tax applies to sells below a peg of 1.05 and a buy tax above a peg of 1.05.
- $PRO receives a share of NFT Apparel Marketplace platform fees through buybacks.
- $PRO receives a share of royalties and buybacks through Metis Ninjas (Poseidon, Swamp Rats, and Peaking Ducks TBA)
Peak Finance’s most immediate focus is supporting ongoing utility opportunities for $PEAK and revenue sharing opportunities for $PRO. Moving forward, Peak Finance’s current focus is to make:
- $PEAK is the reward distribution currency for profits from actively managed treasuries.
- $PEAK as a payment currency on NFT Apparel Web3.
- $PRO buybacks to receive a share of the revenue from ongoing secondary market royalties and treasury profits from NFT collections in the Peak and NFT Apparel ecosystem.
The Peak Team have focused on continuing the development of the NFT Apparel Marketplace on Andromeda, Polygon, Ethereum, and BSC. Further, the team have focused on the NFT Apparel Storefront by curating merchandise storefronts for our NFT Partners. With the foundations in place, current development is focused on Minting-as-a-Service, enabling users to deploy collection minting contracts without having to write a single line of code.
With the ability to easily create new NFT collections, NFT Apparel can provide graphic designers and artists with a user-friendly process for merchandising their brands on-chain.
From here, the NFT Apparel integration of storefront and marketplace will commence. Once deployed, it will only be possible to obtain an official piece of NFT Apparel merchandise by staking NFTs. Ongoing activities through the NFT Apparel marketplace will continue to support the Peak ecosystem.
The future direction beyond the implementation of NFT Apparel Web3 MVP and NFT Collections is to pursue development opportunities for Jive Syndicates and Blockchat DAO.
DAO and DAC capabilities are moving at lightning speed. It will be increasingly important to remain agile to quickly discover best practice implementation methods for communication infrastructure as new DAO and DAC infrastructure become available on Andromeda. The same is true for Discovery on how to implement Peak Consulting Services on-chain effectively, as the end goal of this Proposal is to make it possible for anyone to be rewarded for sharing knowledge.
Web 3 projects are moving at breakneck speeds, and Peak Finance commitments remain the same, but the priorities and perceived urgency of development proposals have since been refined.
The greatest strength of Peak is the community that understands the vision and sees a bright future for the Metis Andromeda ecosystem. Our focus remains to build utility into $PEAK and pursue revenue-sharing buyback opportunities with $PRO.
We seek to build an ecosystem of DApps to facilitate the needs of our ecosystem partners and create opportunities for our community to benefit from new products and partnerships.
Our current focus is on ensuring NFT Apparel Web3 deployment leads to utility for $PEAK and revenue sharing opportunities with $PRO. For more information, please refer to the NFT Apparel whitepaper.
Ongoing minting and secondary market activity from NFTs in the Peak ecosystem will increasingly support the native tokens of the protocol.
As Peak Finance continues to deploy MVPs as its foundations, build features on top of them gradually, and expand the involvement of ecosystem partners, it stands to be a key player in the Metis Andromeda ecosystem and beyond.
Disclaimer: Those that choose to invest in $PEAK and $PRO should always seek to practice responsible risk management. $PEAK and $PRO should not be your largest holdings; you should not invest more than you can afford to lose. Future developments of Peak Finance and its ecosystem partners are essentially an economic experiment in utility and revenue sharing. All discussions on future directions outlined in this document are subject to change.