Saddle x Earnmos AMA
22 min read

Saddle x Earnmos AMA

Saddle x Earnmos AMA
Earnmos AMA

Low Poly Duck | Saddle  0:01
All right, ladies and gentlemen, it is 11:35, and we're gonna kick it off here now. Happy Friday crypto Twitter. It's time for another exciting action packed episode of Christian and the guests know more about Evmos than the duck. I'm Low Poly Duck, the aforementioned duck. And today we're gonna be talking about Evmos, we're gonna be talking about earning, we're gonna be talking about Earnmos, okay? I'm joined by Christian partnership lead at Saddle. Christian, how are you this Friday? Oh, it looks like we had some connection issues here, Christian has dropped off for a moment. We'll give them a second to connect back in but I'm also joined by Earnmos, recently launched and recently partnered with Saddle. An exciting combination if you asked me, we're absolutely chuffed to be working together. Thank you for being here, Earnmos welcome.

Murilo | Earnmos  0:50
Thank you. Thank you guys for the opportunity, very excited to be working with you as well. And looking forward to the session. I'll try to get everybody on board as well.

Low Poly Duck | Saddle  1:00
Excellent. It looks like we have Christian back in here. If we could get him back up as a speaker. That'd be terrific. And then I can move on here. We'll give him a second to do that and I'll move on. Well, fellas, I tell you what, it seems like every week now that I have to highlight just how little I actually know about Evmos. And every week I learned just a little bit more about how fast this ecosystem actually moves, right? There's always something new, to make our experiences easier and more fluid. Actually, I've been doing the vast majority of my position management for most of my major wallets on a platform called Zapper, you've probably heard of it, for quite a while.

And as a result, I just recently realized I had actually lost touch a little bit with the underlying function of some of the protocols I'm most heavily engaged with and this frightens me deeply, right? Because just recently, with the collapse of a certain stable coin, a very popular stable savings platform took all its users down with it to, right? Their interface was so easy just deposit USDC, get a juicy 15%. No one even really cared about what was happening behind the scenes. And I've always prided myself on being somewhat sure of my investments, right? So realizing that I had become complacent, even in a way that didn't necessarily impact my security made me feel something very deep about my connection, or my expectations, rather, of this industry's future, right? If we're going to catch on, if DeFi is going to catch on, I need to be able to be lazy safely, okay?

That's the key here. And I think Earnmos can help with this. For the same reason, we all hold the S&P, right, because even engrossed by the industry every day, I find there really is no way to keep up, right? That's part of the reason I love these Twitter spaces so much, not just ours and our partners, but the whole culture that's emerging around them, founders, investors, users, observers, all getting together to sort of learn, stay up to date, earn safely, and just, you know, jam out about this wacky new internet money thing that my mom is always talking about. So, Earnmos speaking of internet money? Maybe you could tell us a little bit about what you do, right? What is Earnmos?

Murilo | Earnmos  3:12
Sure. Well, first of all, I like to say that I completely agree with your point you just may now. So I think were on the same boat and it's a shame when something like this happens, because it affects us all. But I also see a lot of initiatives now trying to, you know, rescue good dabs, and good ideas and so on and make the whole thing stronger.

I think that, you know, as I've heard before, and I'll replicate this now, what has happened now, as unfortunate and really sad for especially for some group of people who had some money on it, is the speed bump for what we have ahead of us, I think. So that's the first thing. So anyway, Earnmos, basically, we are all in one cross-chain, huge optimization, right? That's the whole idea behind it. And why we became this and it's funny that you mentioned the word know that you want to be lazy and be comfortable with because that's somehow a lot of what came up when we were discussing the project.

And when we were see what we were going to do. Basically, we're saying, oh, there's so many projects there, there's so many blockchains falling exactly what you just mentioning, now that you know, you lost track a little bit. And it's really hard to keep up with everything. So what we're trying to do is trying to get you from your own preferred blockchain, that one that you're used to the working with, and dealing with and so on and have a good user experience and good UI. From then on, you can have somebody you know, you can be lazy and have somebody like us Earnmos do all the work for you as far as yield optimization. So we're going to go out and seek whatever is best returned for you based on everything that's out there with the partners that we work with.

And we just launched as we said, so it was basically due to one step behind, we partnered with Evmos. We got a grant from the Evmos team. The reason that we chose to go with the Evmos team is because like us, they also believe in the in the cross chain universe ecosystem coming forward. So that's one of the things that was a big driver for us. And we launched, I think in the beginning of May. And at first, you know, we decided we had like a roadmap for like a three stage roadmap, three phase roadmap. So we are currently on the first phase, which is just, you know, doing Ultra compound, auto stakes strategies. And, you know, making sure that everything was running smoothly, we were doing a lot of updates on the app, make sure that the experience was going well. We were heavily believer in community driven projects, we wanted everybody to provide feedback, participate and join us and tell us what we could do, what we should do, how we could improve. And basically, after we did this, what we call the Genesis phase, we're now moving on to the veToken phase, which is the second phase of our project. And on the veToken, we're gonna sort of implemented the Curve Convex model with the veTokens, and this is something that we've been in conversations with, with the team in Saddle in Christian and everybody.

And, you know, this is a time that we also plan to launch our own token, which will then be a part of the whole second phase of implementation of the second veToken phase. And eventually we actually jump into the third phase of our project that's going to come down, you know, a few months down the line, where we plan to actually be a true cross-chain, huge optimization booster, across all the Evmos Cosmos ecosystems, and so on. Of course, for that we need the DeFi project that's projects being implemented and be rolling and sort of have the infrastructure ready, so we can implement and take the most use of it. But that's when the sexy things really kick in. So this is the roadmap in the short like five minute explanation. This is what we have a plan we're executing, and very happy to be working with you guys and having guys partners as well as a great collaboration. So you know, excited to be here and ready to you know, to try to help any people that may have some questions for us. So

Christian | Saddle  7:14
I do have a question about the vote escrow model, how do you guys plan on using the tokens, you guys that you and your users yields farm? So such as a Saddle token, once we have vote escrow built out, of course. How do you guys plan on using it? How does that affect the yields users are able to capture? How do you think that plays into potential SDL wars the same way that we're still are Curve wars on mainnet Ethereum? How do you think that whole picture fits together?

Murilo | Earnmos  7:43
Well, Christian it's very good question. And I'll try to, I hope I can have the ability to answer to your question, you know, my colleague was supposed to join the call, I think he's having some connection issues. And he's the guy behind the whole idea with the veToken and things. So basically, the idea is that you can get, you know, Saddle the users or the guys who have the Saddle coins in the Saddle pool, that the D4 pool, they will provide they'll send us this pool and into our pool, and we will provide the our token for them.

And that's going to be staked in a way that's going to get rewards on that. And we plan to provide rewards for those users who have our own token on gas fees that we generate and other revenues that we were able to generate. I think that, you know, my colleague will be better to answer your questions, and I apologize for this. They cannot join here. I don't know if I was able to provide any clarity on that. Or if maybe we think

Christian | Saddle  8:42
Yeah, no worries. I mean, just yeah, the idea behind I asked we just educate the community. So I can help out a little bit here, actually. So the idea behind vote escrow, as many know is it's ultimately tied to revenue, right? Trading fees get paid out in to SDL holders, in our case in the form of LP token, that is 50% stablecoin Frax, specifically 50% SDL. So it was constant buying pressure. And the whole idea behind vote escrow is you take that not only that you collect trading fees but  you get two benefits.

The first is you have to vote on gauge votes every week. So every week, ve vote escrow SDL holders token you get when you lock, veSDL holders get to vote once a week on the gauge votes which determine how much SDL gets emitted across all the various liquidity pools around Saddle on all the different blockchains were on and so what you guys can do what yields farmers what veToken accumulators, such as like a Convex or like 4T2 on Evmos, what they do is they accumulate these SDL tokens, they lock them up, and then they vote for the pools that they're providing liquidity to but on top of that, simply by virtue of locking full stop, you got boosted SDL emission rewards on any of the liquidity pools you're part of. So the way that affects yield farmers such as Earnmos is when you locked up- when you provide liquidity through Evmos and then Evmos deposits that liquidity into a Saddle pool, all the SDL tokens, they start farming, they lock, they collect trading fees, which boosts the APY, they get a boost.

And on top of that they vote once a week to get even more boosts even more SDL emissions on the pools that your users are providing liquidity to. So it's a very symbiotic relationship. I think the game theory works out pretty nicely. But it's ultimately grounded in protocol revenue.

Murilo | Earnmos  10:46
Well, thank you very much for that explanation. Couldn't have said better. So thank you very much, Chris.

Low Poly Duck | Saddle  10:50
I love it. Love to hear it. And Christian, thank you. It seems as though we have some connection issues regularly on these between our guests and ourselves and we'll get it right one day when we-

Christian | Saddle  11:07
Being a remote team is a blessing and a curse but we'll figure that out.

Low Poly Duck | Saddle  11:13
I'd actually like to take a step back for a second, as you said, Earnmos you are launched. And I noticed you have some diffusion vaults, maybe you could tell us a little bit more about these or even take a moment to explain the classic vault architecture for some of our listeners.

Murilo | Earnmos  11:29
Sure. Well, basically, for now, like I said, you know, this is the first part of the project. And the work that we've been doing with Diffusion is just simple auto compound and auto reward, auto stake. So you know, they can get their own token to us and we will provide some Sexy APRs and Sexy APYs that at the very beginning when there was low liquidity the figures were huge, like six figure percentages for APY. And we provide returns every day, and that they were able to receive those rewards upon, you know, collecting them. And the auto steak was a little different that we would automatically provide-. They didn't have to do anything, they just provided to us the tokens and we would provide the rewards on the token by staking them. And then upon them checking out again, they will be able to reap all the rewards for those tokens that we had auto stake for them, so there's no had to collect anything, you just kept investing again again again. So that was the that was the idea.

Low Poly Duck | Saddle  12:36
Excellent, I love it. So this is sort of like a yield optimizer and correct me if I'm wrong, this is the gamma stage, that's right?

Murilo | Earnmos  12:44
Correct. That's the gamma stage. And we are now moving on to the veToken phase, we are just working on the final stages of our tokenomics to be able to provide the market and raise some funds as well. And then after we do this, the veToken phase with the voting power on the tokens and the ability to do that, we will then move to the Theta phase, which is the last phase when we have the module for the interchange accounts within the Cosmos ecosystem so we can reap benefits from all over the the ecosystem.

Christian| Saddle 13:20
So could you do tell us more about your interchange strategy? So are you guys planning on sticking primarily to the Cosmos hub? Are you planning on branching out to other hubs? Are you planning on on deploying to say Mainnet, Eth mainnet? Or other EVM compatible chains such as Kava, Avalanche, Fantom? How do you guys? What is your approach to the multi chain world that you guys anticipate?

Murilo | Earnmos  13:48
Well, the idea is that, of course, we're going to start with the Cosmos Evmos ecosystem, but the idea is that we're going to branch out and you know, for now we're talking to bridges. So we're talking to Nomad, talking to Cronus, we're talking to Layer 0. And we're trying to see as many possibilities as we can to really go out and then have more a broader presence as far as going out. Not only the Cosmos and Evmos, but we will go afterwards to go to more possibilities to get more projects involved, more communities involved, and this way, be able to offer a bigger variety of huge returns for our users.

Low Poly Duck | Saddle  14:32
Awesome. So this is really all about a cross joint future. This is truly about interoperability. I assume this has a lot to do with IBC?

Murilo | Earnmos  14:40
Correct? That's very correct. So we're eagerly wait for that to finish but yeah, it's it does. And that's the if you saw the third phase of our project is called the Theta phase. And it's like an homage for the account module on the Cosmos upgrade that's coming. So yeah, it's totally related.

Low Poly Duck | Saddle  14:58
So what does this look like on say, an individual user level? Right? So say I'm this is well into the future, when this is an established multi-chain service, say I'm a user of XYZ chain. And I come and I expect some yields, how am I going to experience your platform, like on an individual level?

Murilo | Earnmos  15:20
Well, the idea is that we're going to provide the best, you know, try to provide the best user experience in a way that easily you just get your token, and that you stake on a liquidity pool, and from then on, there will be a variety of options for you. And then we will going to have an automated one that's going to choose the best situation for you at that present moment. So the idea behind that, if you will, is that for people who are not technically minded, like myself, and want to reap the benefits of this, from my prefer blockchain to one that I'm used to, I just have to just be very lazy, as you initially stated, I can just really just put in that token, and then the app do the rest of the work. And of course, the more connections that we have, the more collaborations that we have, the better service we can provide. So all those things, of course, could be done manually, and you could be there and then you put the token in stake pool, and then will take it out, and then you put another one and do it. But then of course, you require you to know more about all the other blockchains available and all the projects and what they are about, you would require you to have some more knowledge about all the specifics about those projects. Well, if you use Earnmos, you can just sit back and let the algorithm do the work for you. So the idea is, you put in your token, you sit back, you set up, you know how the strategy, start working, and let the math do the work for you. And on the other hand, on our side, we're going to try to get, as I said, a lot of collaboration to provide the best strategy possible at any given moment for the final user.

Low Poly Duck | Saddle  17:02
So if most seems really interesting to me, after honestly, we've been having a lot of these Evmos Twitter Spaces, and I'm becoming more and more bullish on the ecosystem as a whole. Christian, I was wondering if you could give us a little bit of insight into that, can we expect this trend to continue? Just before we open up to questions from the audience? Because we are coming up on the time here.

Christian | Saddle 17:24
Yeah, so my- the way I kind of view the blockchain space DeFi space as a whole right now is, and this isn't any new insight by any stretch of the imagination, but it's all about network effects, right? And if you go to say DeFiLlama and you look at, you know, total value locks in different blockchains, you'll get oh you even look at NFT volume, and it's clear Ethereum by far number one, you find them close. So that said, and it's also worth considering that even the second third place options, a lot of times are bootstrapped by developer funds, that Ethereum usually just doesn't offer so that the second and third place options aren't second and third place organically, so they're propped up, right? And so Ethereum is the BMS, everyone wants to be Ethereum and wants to compete with Ethereum, they want a slice of its pie.

Now, the way to do that, I think, is to take this kind of multi state approach to blockchains. As you look at each blockchain as a sovereign nation, and the way to compete against the big boy in the block, is to essentially lock arms and to work together, open up your borders, enable free trade, and allows all the liquidity to pull together into this macro emergence set of markets that are facilitated between all these different blocks, so that can be enabled via a bridge such as Nomad, will be enabled via the Cosmos, can be enabled via the Polkadot central chain, Avalanche C chain for instance, right, there's always different mechanisms. But the Cosmos approach, I think, makes the most sense, because any blockchain can plug in, right? You can build whatever blockchain you want, as long as it's proof of stake.

And after the fact, you can reassess and say, hey, I want to talk to all these other blockchains out there, I want to lock arms, I want access to all of this coalition of blockchains that are now working together relatively seamlessly. And now this is-. Now where does Evmos fit in all of this? So Evmos is one of those blockchains locking arms, but Evmos is also unique. Evmos is the first blockchain in the Cosmos ecosystem that's EVM or Ethereum virtual machine compatible. What that means is it's basically like if everyone's writing apps for iOS, and everyone's trying to compete with iOS. What these guys did was they basically brought over iOS onto Windows, or excuse me onto Android. And now you can run iOS apps on Android, that's what the EVM compatibility means. So this blockchain plugged into the Cosmos ecosystem.

You can have all of these all of the Dapps on Ethereum. you can have all the developers on Ethereum, you have all the tokens, all the NFT's, anything that's on Ethereum. And relatively seamlessly and in a day or so we deployed straight to Evmos, and now benefit from that coalition of locked arms blockchain. So the way I view this, the DeFi landscape playing out is I think you're gonna start to see these blockchain alliances, start to form, you know, these coalition's emerge, and you're gonna have everyone locking arms to kind of bootstrap as much liquidity as possible to be able to hold their own in the competition, or rather, in the fields, where Ethereum is clearly the dominant player. So that's why I think the blockchain space works out. And I think Evmos is really well positioned to be the center of all that option.

Low Poly Duck | Saddle  21:00
And you know what, the more we have these Evmos focus Twitter spaces, the more I tend to agree. And actually, guys, we are coming up on closing time. So I'd like to open up the floor to some questions. And I don't think we mentioned it by name, but I'm going to give you all really quickly a search term. What Christian sort of alluded to was something called tendermint, if you want to just pop that into Google before we add it without diving into it too quickly. So if anyone in the audience has a question for either Earnmos or us fellas over here at Saddle, please raise your hand, and we'll bring you up onto the stage.

Here's how to we'd like to feel these awkward Twitter space silences with a good joke. Are you guys ready? Okay. Why did ducks like camping?

Christian | Saddle  21:51
Oh, no.

Low Poly Duck | Saddle  21:52
Because of how the fire quackles.

Murilo | Earnmos  21:54
Okay, guys, just one thing that I wanted to say, before we reached the closure here, I think that if there's one selling piece that I can tell, is that as clearly seen here, during this community call, I'm the guy who's least knowledgeable about how the whole thing works in the background, you know how the defaults and exchanges for, I just know that, you know, from having one asset from one token, I liked the idea that from that token, and from my you know, comfortable, lazy chair, I can reap out the benefits of everything that's out there without having to change or have to bridge those assets, actually, you know, from one preferred blockchain, you can do it all.

So, you know, we have an amazing dev team, that's a shame that we could not from technical difficulties from our side to get them involved. But be positive, and be certain that we do have those strong dev team behind it, that could be happy to answer any of your questions that are more, you know, technical or more detail about the whole process.

But it's one of those things, you know, if you're on the job site, if you're working for me, you worked for everybody. So it's a really cool ideas really cool project with a bright future ahead, especially when the whole interchange ecosystem gets growing, then that's going to be amazing. So yeah,

Low Poly Duck | Saddle  23:21
I totally agree. We alluded to it briefly at the beginning, but that sort of that necessity for laziness is truly the key to the adoption of our space.

Murilo | Earnmos  23:29
Yeah. We wrote that, you know, one of the articles that we wrote was like, you know, you can ever countdown laziness on the human being. So even though there's a lot of people that you know, can say and do all those things, eventually having somebody doing it for you, and doing it well, and doing it with a very great user experience and be able to deliver the best result possible. That's that's very good.

Low Poly Duck | Saddle  23:55
Awesome. Well, thank you so much, again, for being here. For the last question, yep. I do want to remind everyone that Saddle has a proposal live on snapshot regarding a new standard for 4pool on mainnet and Evmos was USDC, USDT, DAI, and of course Frax. We also have a ton of bounties still available for B4B and we're gearing up for our token unlock in the near future. So there's really never been a better time to get earn that SDL and dig out your own little home on the ranch. So have a lovely weekend everyone and remember to check out Earnmos. Earnmos if really quickly, you'd like to give our listeners an idea of where they can find out more about you follow you.

Murilo | Earnmos  24:38
Well, we are up everywhere, so we're on Discord and Telegram and on Medium. And check it out on our Twitter and on our Twitter link you can find a link with all the other information about us just like on Twitter and on Discord and everything is all the information is already there.

Liam | EVMOS  25:03
Yeah, just echo that sentiment. Yeah, please feel free to follow us on Twitter, hop on our Discord. Take a look at our bounties, list bounties for bandits. Were one of our primary values here at Saddle is communities being community driven, right? The idea here is that this ends up being a group effort long term. And to facilitate that we would we are more than happy to incentivize you all with SDL tokens in exchange for doing some real work, whether that's technical or non technical. So please feel free to hop on our Discord. Say, hi. We'd love to have you. We'd love to chat with you. And we'd love to have you part of the community.

Bianca | Saddle  25:41
Before we finish, I think Adeola, I think I mispronounce the name, has a question.

Adeola Oluwatobiloba Adebisi | Twitter  25:51
I appreciate your efforts. Okay, you can hear me? Can you hear me?

Low Poly Duck | Saddle  26:01

Adeola Oluwatobiloba Adebisi | Twitter  26:03
Alright, and I appreciate you efforts. I can see you keep progressing every day. Updating your platform, and I'm feeling bullish on the Evmos system. Very soon. I just want to ask you about the token you are proposing. Is it going to be stable? Or like other utility token? Is it going to be stable like a USDC, Dai or USDT or like other utility token? That's my question. Thank you.

Murilo | Earnmos  26:39
Oh, no, it's not going to be a stablecoin token. No, it's just going to be a regular token. So

Low Poly Duck | Saddle  26:44
The standard government DAO token, correct?

Murilo | Earnmos  26:48
Correct. Yes.

Low Poly Duck | Saddle  26:50
So gov- voting feature, a utility and all that sort of thing.

Murilo | Earnmos  26:54
Yes. Correct. Yes. Not a stable coin.

Adeola Oluwatobiloba Adebisi | Twitter  26:58
Yeah. Concerning this your APY, is it going to continue like that or the more we are gaining more user, the lower the APY rate becoming lower? Or do you think about it, is it going to be like that forever? Or there will be a kind of reduction in the APY as much as users is entering the platform?

Murilo | Earnmos  27:23
Now, we expected a clear decrease on the API for sure, you know, as there's more liquidity than the APY should drop, and we had those really high figures that we even were doing some Twitter messaging before. But that was just right at the launch. So we expect the APY to to keep coming continue to come down, as there's more liquidity on the project. So.

Adeola Oluwatobiloba Adebisi | Twitter  27:46
That means the IRD the number of users liquidity provided, the lower the APY produce?

Murilo | Earnmos  27:55
That's correct.

Christian | Saddle  27:58
That's a good rule of thumb to apply to essentially, most financial markets, the more liquid, the more efficient they get, the more the APR is, or APY spend to drop some equilibrium price that usually in a single day, just directly,

Low Poly Duck | Saddle  28:12
The more hands in that's up for grabs.

Adeola Oluwatobiloba Adebisi | Twitter  28:16
The early adopters are held in crazy profit right now, because they are helping to use the platform.

Murilo | Earnmos  28:25
Okay, that's the idea to have a very easy way to use the platform. So that's the whole idea behind it have a great user experience.

Christian | Saddle  28:33
And just for context to so the audience understands a little bit, the reason that APYs tend to be higher in DeFi the fewer participants there are, is that many times the liquidity mining incentives, so in our case, like SDL or maybe if you have like a Frax pool would be FXS, whatever it might be, those tend to be emitted at generally a fixed rate. So in our case, there it's every day, it's the same amount, when there's gauges and vote escrows live, it'll fluctuate a little bit but the idea is it's the same, if there's an anticipated amount of whatever token is being mined for liquidity incentives per week at least in all of these pools.

And so if there's just one person providing liquidity, that person gets all of the incentives, right. So as a percent of their liquidity, it's gonna be very high. If two people come in, that APY drops in half, it's three people it gets cut again, in four or five, six etc. It gets split up more and more the more people get involved. And of course, there's trading fees that kind of counterbalance that. So it doesn't just tend to zero.

Because the more liquidity there is, the more efficient the swaps, the more efficient the swaps, the more people swap, the more people swap, the more trading fees you collect. And so there is a little bit of a floor on these APYs provided by trading fees. But the general rule of thumb is, given these fixed emissions, the more people involved, the lower the APY, and that's to be anticipated.

Low Poly Duck | Saddle  30:09
Excellent. Well, thank you so much for your questions. That was terrific. And I'm sorry, I missed you for that moment there. That was entirely my fault. I'd like to say thanks again to everyone. Or are there any more questions? Let's quickly throw that out there. Just for a moment. Any hands going once? Going twice? Well, I'd like to thank Earnmos again for being here. Thank you so much Earnmos.

Murilo | Earnmos    30:34
Really thank you guys. It was a great, thank you very much.

Low Poly Duck | Saddle  30:39
And Christian

Christian | Saddle  30:40
Yeah, thank you. I'm very happy to flush out the details of this partnership and learn more about you and what the team is doing.

Murilo | Earnmos  30:49
Yeah, appreciate it. Thank you very very much. Sorry, I can't provide more details but I'm sure that more information will be come available as the team that join more stuff. So thank you very much for the opportunity.

Low Poly Duck | Saddle  31:00
Trust me, the details were plenty for my tiny little duck brain.

Murilo | Earnmos  31:05
You're very kind

Low Poly Duck | Saddle  31:07
Too-da-loo and have a wonderful weekend.

Transcribed by bandit, "Big Bambino"

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