Overview
As Ethereum bulls, we wanted to create a product that would allow us not only to survive the bear but also have fun with it while waiting for ETH to reach 10K.
Summary
Welcome to EXIT10, a protocol inspired by Chicken Bonds on top of a Uniswap V3 fungible position.
What is EXIT10
Exit10 is a USDC/ETH Uniswap V3 position in the $500 to $10K range which anyone can bond liquidity to. Fees from the position are automatically converted into staked ETH which can be claimed by burning EXIT tokens once ETH reaches $10K.
Bonds
A bond is any liquidity deposited into the Uniswap position that is being charged.
Bond charging
In order to start earning EXIT tokens, liquidity providers must charge their bonds, convert them to BLP (tokens which represent the user's liquidity in the position) and stake them.
Charging is the process in which bonds get converted to BLP tokens. Bonds with a lower charge amount convert less of their bonded liquidity to BLP relative to super charged bonds.
It takes 5 days for the bond to charge 90%, 10 days for 95% and 50 days for it to be charged 99%.
Any liquidity that is not converted to BLP through charging is acquired by the protocol and considered Protocol Acquired Liquidity. Bonds can be canceled at any time during charging and the liquidity is returned in full to the bonder (minus any fees produced by it).
No Lock-in
BLP can be burned at any time in exchange for the same amount of liquidity they represent.
Staking
BLP tokens can be staked to earn EXIT tokens—backed by Accummulated Transaction Fees—which are periodically converted to Lidos' stETH.
Shut down
When ETH reaches $10K the Uniswap position goes out of range and the protocol shuts down.
Accumulated Transaction Fees in staked ETH and Protocol Acquired Liqudity as USDC can be claimed by burning EXIT tokens.
Protocol Lifecycle
Participants of the bootstrap phase deposit and temporarily lock liquidity in the Uniswap V3 position in exchange for 10% of all transaction fees distributed in real time as ETH and 10% of protocol acquired liquidity distributed once ETH reaches $10K in USDC.
Terms and conditions of the bootstrap phase are immutable and enforced by code. The team does not have access to these funds and they will be made available to be claimed back by depositors in full at a later stage.
What is in it for Bootsrappers?
10% of all transaction fees in real time.
10% of all acquired liquidity by the protocol.
100% of the deposited liquidity returned as USDC once ETH reaches $10K
Uniswap liquidity providers are able to bond and stake their liquidity in exchange for EXIT tokens.
Transaction fees are continuously converted into Lido's stETH and diamond handed until ETH reaches $10K. This means that 1 ETH worth of fees today is $10,000 USDC worth of fees once ETH reaches $10K.
By providing incentives for liquidity in the EXIT/USDC pool, we let the market price in the difference and allow Uniswap liquidity providers to potentially sell today what their fees would be worth tomorrow.
What is in it for BLP stakers?
80% of the transaction fees from bootstrap liquidity in EXIT
64% of all the remaining transaction fees in EXIT
70% of protocol acquired liquidity in USDC
EXIT tokens are fully backed by:
$10K ETH
ETH staking yield from issuance, transaction fees and MEV
A share of protocol acquired liquidity
When ETH reaches $10K, the protocol shuts down. EXIT holders can exchange their tokens for their share of the accumulated transaction fees as staked ETH and claim any protocol acquired liquidity in the form of USDC.
Depositors of the Bootstrap phase are able to claim their liquidity deposits back in full as well as any remaining rewards that were accumulated during the Bonding and Staking phase.
Base Asset Characteristics
LP USDC/ETH 0.05% RangePool Uniswap v3
Range 500 - 10,000 USD
Exit @ 10,000
Strategy - stETH Stacker
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