PHUB 009 and PHUB 010: Changes to CZPegs farms

We’re proposing two governance votes relating to CZPegs Farms. These changes will ensure our pairs incentivise farming of assets that align to our strategic direction. Let us know your thoughts here.

In summary we’re proposing:

  1. CZBOMB/BitBTC to be replaced by CZBOMB/BOMB (Governance proposal PHUB 009)
  2. CZEMP/EMP to be replaced by CZETH/ETH (Governance proposal PHUB 010)

Let’s get into why we’re proposing these changes:

1. CZBOMB/bitBTC to be replaced by CZBOMB/BOMB
This farm started its life as CZBOMB/BOMB before transitioning to CZBOMB/bitBTC, so this proposal does represent a return to original form! The initial intention of this farm was to allow investors to maximise their BOMB exposure while earning great yields. However, it made sense to transition to CZBOMB/bitBTC at the point of the BOMB to bitBTC migration given it was initially envisaged BOMB would no longer have a major use case. This of course changed when we determined BOMB would be the native token of BOMB Chain.

It’s important to highlight that bitBTC will play a huge part in our ecosystem’s success and will massively benefit from our upcoming mobile app launch in January given the bitBTC/BTCB farm will be used to generate yield for Bitcoin deposits. However, with so many community members accumulating BOMB we feel it’s appropriate to propose this farm is revised to deliver against its initial intent.

No migration would be required and investors would simply unpair their assets and re-pair their CZBOMB with BOMB.

2. CZEMP/EMP to be replaced by CZETH/ETH

This farm was initially created to allow investors to maximise their exposure to EMP, which is pegged at a 4000:1 ratio to ETH. EMP has been tracking below peg for some time and generally does not align with our strategy of offering yields on high quality blue-chips. While we will launch a protocol on Ethereum Mainnet, we’re keen to do so at a point when the market is in a stronger position. Therefore, we feel providing investors ETH exposure on BNB chain would be valuable at this stage.

How would the migration from CZEMP to CZETH work?

We will create a new token, CZETH, with an initial supply equal to exactly 1/4000th the supply of CZEMP. CZETH will peg to ETH 1:1. Since EMP is pegged to ETH at a 4,000:1 ratio, and allowing migration from CZEMP to CZETH at 4,000:1, we can perform this migration with zero change to peg and without causing harm to investors’ CZEMP positions.

As a result of lessons learned during our original migration from CZBOMB-BOMB to CZBOMB-BITBTC, we will introduce an intermediary step during this migration. If the vote passes, details will follow with exact timelines for all phases of the migration. The steps (with timelines absent):
1 – Create a new CZEMP-ETH pair and incentivize it on CZPEGS. At the same time, remove incentives from the CZEMP-EMP pair.
2 – Create CZETH token and CZEMP → CZETH migration page on CZPEGS.com
3 – Once liquidity has been mostly moved from CZEMP-EMP to CZEMP-ETH, we will create the pair and farm for CZETH-ETH. Migrations for CZEMP-CZETH will remain open as long as CZEMP are still circulating.

Both votes will have two options:

  1. Yes – make the proposed changes
  2. No – leave the CZPegs farms as they are

The window for community discussion is now open – join the discussion here.
The 24-hour voting window will then begin at approximately 17:00 EST/22:00 UTC tomorrow.

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Hi. I have a stash of CZEMP bonds. How will they transition over?

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Great question and it was an oversight to not mention this. We can allow migration of BONDS at the same ratio as the peg token itself. That way you can migrate anytime regardless what peg is at.

I’m glad you brought this up, as we may need a minor change or two to the BOND contract to allow minting of the BOND when we burn CZEMP BOND in migration.

All of this pending the vote being approved of course, and much more details to follow if approved.

Thanks again for the great question!

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