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Entry #706P:777
To all inhabitants of the Protectorate, we’ve done it! All thanks to you, we've successfully launched our inaugural product, the ETH Capsule, and completed the Event Horizon public sale.
Now, the work begins.
Before we go into what’s next, let’s dive into our milestones over the last 2 weeks, what’s been going on with the ETH Capsule, and recap the Event Horizon.
Milestones
ETH Capsule
Since setting up the ETH Capsule, deposits have increased to ~40 ETH, currently providing a return of ~17.12%, and peaking at ~45% (in native ETH), as we direct deposited ETH to BendDAO. We have devised and trialed new strategies which are awaiting audit. Protectorate's goal is to generate the best yield in ETH for depositors while enhancing NFT liquidity.
The completion and rollout of Protectorate Protocol v1 is our highest priority. This includes what we refer to as the "-. ..-. - / -.-. .- .--. ... ..- .-.. .", which will bring onboard new partners and more ETH strategies.
Event Horizon
Event Horizon will go down as an incredible moment in the history of NFTfi, as Protectorate Protocol became the first project across the entire vertical to offer its native token using a Dutch Auction, known as Event Horizon 1.0.
What happened in Event Horizon 1.0 & 2.0?
In Event Horizon 1.0 & 2.0, the Dutch Auction was scheduled for a 3-day span. Phase 1 involved Wardens who were permitted to participate for the first 48 hours and committed 42 ETH in total during this "whitelisted" phase.
Phase 2, the Public phase, open to everyone, quadrupled the deposits during the final 24 hours of the Dutch Auction. However, due to a UI / contract synchronization issue, the timer on the UI finished earlier than anticipated, preventing deposits in the final 33 minutes of the auction, typically the most active period in a Dutch Auction.
This issue resulted in a complete contract reconstruction for Event Horizon 2.0, allowing those who committed in Event Horizon 1.0 to "re-commit". To ensure fairness, PRTC was then sold at a fixed price, matching the final clearing Dutch Auction price of $0.10, over a strictly moderated 24-hour period. Those who participated in 1.0 had the option to reclaim their ETH through a full refund if they opted-out of Event Horizon 2.0.
Event Horizon 2.0, which opened with high anticipation, quickly concluded after it hit the $1m hard cap in just 2 hours and 45 minutes.
This situation was challenging for those who participated in Event Horizon 1.0 and did not have a chance to re-commit to Event Horizon 2.0. Bearing this in mind, the team decided to offer these individuals an extended version of the sale. This was open for a strict 24-hour window, ensuring fairness for all participants (both 1.0 & 2.0).
Out of the 116.25 ETH from Event Horizon 1.0 that was eligible for re-commitment, only 87.50 ETH was re-committed in the final window. This accounted for a total raised amount of 613.91 ETH (526.41 from Event Horizon 2.0 and 87.50 from Event Horizon 1.0). As per current valuation, this amounts to approximately $1,153,549 raised from the public sale of PRTC.
PRTC Liquidity
As of today, Protocol Owned Liquidity (POL) has been established for PRTC. Our partners, Arrakis Finance, facilitated the deployment of the initial ~$150k of PRTC/ETH liquidity. We have witnessed remarkable capital efficiency as a result, which has been underscored by 0xOmnia in the details provided:
Additional to the initial $150k provided via Arrakis PALM Vaults, Protectorate proceeded to add an extra $270k of PRTC/ETH liquidity on Uniswap V3. This action increased the total deployed liquidity to $420k, achieving a liquidity-to-circulating market cap ratio of ~1:4.
Road to Protectorate Protocol v1
Following a successful public sale, we have several items we’re working towards shipping, including:
1. Deployment of xPRTC (Staked PRTC)
As outlined in the docs, xPRTC enables governance power (with a straightforward mechanism of 1 xPRTC equals 1 vote). In addition, it entitles stakers to 10% of all protocol revenue disbursed in ETH. There's a further incentive as oPRTC will be distributed to stakers, who can claim and make use of these at their discretion.
2. Deployment of oPRTC (Call Option PRTC)
While the final mechanics for oPRTC are still under careful construction, Protectorate plans to incentivize both early and new Capsule depositors, as well as xPRTC stakers with oPRTC.
Initially, oPRTC will operate similarly to a receipt token (illiquid). This is because Protectorate will keep an on-chain record of user interactions with the protocol along with the market value of PRTC attached to the oPRTC "receipt". This will allow both depositors and stakers to visually track the dollar value / APR provided by the oPRTC rewards.
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With this advantageous combination of factors, we anticipate the release of v1 in the near future. We'll also announce exclusive partnerships that will help us achieve our aspiration of becoming the Definitive Liquidity Layer for NFTs.
We are thrilled and humbled to have accomplished a successful token sale alongside the launch of the PRTC token. We are immensely grateful for the overwhelming support from the community, and we highly appreciate every participant of the sale.
Having almost reached a year since the conception of the Protectorate Protocol, we are incredibly excited to be in a solid position to execute our strategy to seamlessly integrate DeFi and NFTs.
Expect the Protectorate.