Why franchise Bao?

The beginning

When deploying BaoSwap, we realized that there were a great many chains that have liquidity but without incentivized farms & It is very easy for us to modify our infrastructure to run on multiple EVM chains

With all this in mind, a new idea emerged to replicate Bao’s infrastructure on every EVM chain that is not the Ethereum mainnet.

The only challenge became that you cannot sync the BAO token between multiple chains that don’t have trustless omnibridges. To solve that we would have to deploy new governance tokens on each chain (franchise).

We proposed and voted to prototype this idea, in looking at Bao Farms, BaoSwap and Bao Synths as essentially a franchise model to be deployed to multiple chains. It turns out it takes no more than a few days to adapt the system to get the ecosystem running on other chains. Other chains that have hundreds of millions of dollars in liquidity waiting to be soaked up.

The idea here is that Bao will fork and deploy its infrastructure to other EVM chains where there is new liquidity to be had.

Each of these deploys will have their own brand and governance token closely linked with the BAO brand. The BAO community will own tokens from each franchise. As the model is experimented with, we have adapted it for each of the franchises so far. For Panda Finance we deployed with 15% of the token supply going to a community owned vault. This means that users will vote with $BAO to control that 15% of PNDA and that 15% of PNDA fees will come back into the future Bao staking programs. Polly Finance launched with a different structure, distributing an additional 0.25 tokens for every 1 token minted for farming to BAO holders and an additional 0.05 tokens to a community owned vault.

Since these other chains share infrastructure with Bao, they can have a smaller dev fund and do not need an LP fund, meaning most of the fund of any new issuance can be part of the community fund.

This will allow BAO Finance to franchise its infrastructure across other chains and expand its liquidity footprint, only requiring a few days of dev time each time we deploy products from one EVM chain to another.

Benefits

In the last few months we have seen an increase in the usage of DeFi products and with it, gas fees on Ethereum. We are seeing the emergence of a more mature and decentralized crypto and DeFi space with more adoption on sidechains that can facilitate users desire for quick, low cost transactions.

The Bao Finance community is focused on building the most robust, diverse, multi-chain synthetic protocol. To provide a system of liquid, secure and stable synths, we need diverse liquidity pools across multiple chains and need to properly incentivize the users that are contributing to our protocols. Without using the franchise model BAO tokens would be spread thin, making it difficult to attract deep liquidity on each EVM chain. Instead of owning all of a small pie, the community have opted to own a share of a larger one.