When deploying BaoSwap, we realised that there were a great many chains that have liquidity but without incentivised 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.
In each of these deploys it would be its own standalone brand and own token. However, the Bao community would proportionally own the vaults from that token, and in turn have proportional governance over it.
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.
To pilot this project we have set up “PandaSwap by Bao” on the Binance Smart Chain and a vote was passed to allow pools to issue a $PNDA token to reward farmers, similar to $BAO.
15% of $PNDA created will go into a vault owned by the $BAO community meaning 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.
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.
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.