Ola Finance Launches rainSPIRIT, Redefining SpiritWars with Borrowable Voting Power: A Primer
Ola Finance is revolutionizing the Spirit Wars with rainSPIRIT — the only winSPIRIT fork that returns not only rewards but also voting power to its holders.
The normal winSpirit offering is quite straightforward: enjoy inSPIRIT rewards without the cost of locking SPIRIT for a long period of time. But what happens to all the inSPIRIT votes generated along the way? Currently, winSPIRIT forks take possession of them to vote according to their own interests. This only makes these winSPIRIT forks attractive to yield seeking farmers and not to projects that actually want to vote in the Gauge system.
Ola is changing all this with a unique winSPIRIT fork that’s attractive to both entities — the “voters” and the “stakers”. Ola’s winSPIRIT fork — rainSPIRIT — is going to be the cheapest way to vote on SpiritSwap gauges, and it’s also going to be the most attractive winSPIRIT fork for stakers. So how is it all going to work?
Lowering Voting Costs for Voters
First and foremost, rainSPIRIT lowers voting costs by giving voting rights to anyone who holds it, whether bought in the open market or minted. Now, voters can buy or mint rainSPIRIT to vote then sell it back, ultimately paying a low price for voting. Note that voters will have to lock rainSPIRIT tokens for a short period of time (between 24–84 hours) and that Ola is going to retain some of the voting power for itself.
But it gets even better — projects who don’t hold SPIRIT could actually borrow rainSPIRIT from a lending network just to vote! To borrow rainSPIRIT, a variety of tokens would be accepted as collateral. Projects are therefore able to gain voting power without needing any SPIRIT or even gaining exposure to SPIRIT.
The full details of how the voting mechanism works will be published in the upcoming days with the release of the voting contract.
Increasing Rewards for Stakers
Stakers and Yield Seekers — this section is for you.
What makes rainSPIRIT the best option for yield seekers compared to other winSPIRIT forks?
In essence, the rainSPIRIT model distributes the same rewards to a smaller crowd. The key is that voters don’t get their share of the inSPIRIT rewards. As mentioned above, voting requires you to lock up rainSPIRIT tokens in the voting contract. These tokens then cannot be staked and therefore don’t get their share of the rewards, leaving other stakers with a bigger piece of the pie.
In addition, rainSPIRIT holders will be able to generate revenue in the common ways:
- Stake rainSPIRIT in the staking contract to receive a portion of inSPIRIT rewards
- Farm the rainSPIRIT-SPIRIT LP token on SpiritSwap to receive swap fees and emissions
- Farm the rainSPIRIT-SPIRIT LP token on Solidly to receive swap fees and emissions
Aligning rainSPIRIT with the SpiritSwap Lending Network
Ultimately, Ola’s goal is to service the demands of Fantom’s $1.8B lending space with the largest lending and borrowing venue on Fantom. Obviously, borrowers will go where the rates are the lowest. Since competition is incentivizing lending network participation, we need to as well. Therefore, the rainSPIRIT model has been designed to create a self-sustaining stream of incentives to reward participants of the lending network and lower the cost of borrowing.
How do we intend to create this incentive stream?
- We will use our share of rainSPIRIT voting power to allocate SPIRIT emissions to the lending network via the gauge system
- We will collect the inSPIRIT rewards of the voters and inject a portion of them into the RainMaker program
For a better understanding of the rainSPIRIT system flow of rewards see the figure below.
Figure 2: Voting power from rainSPIRIT is used to create a consistent flow of SPIRIT emissions to reward lending network participants and rainSPIRIT holders.
Maintaining the Peg
Another point that we would like to emphasize is that rainSPIRIT’s model has ongoing buying pressure for rainSPIRIT, thus allowing it to more reliably maintain the peg with SPIRIT.
There are two sources of buying power — voters that choose to borrow and pay interest with rainSPIRIT. As long as the price is under 1 they are better off buying. Second, the portion of SPIRIT that Ola accumulates that doesn’t go to stakers will be used to purchase rainSPIRIT until the peg is maintained, from which point it will be used to mint rainSPIRIT. The rainSPIRIT is then divided between 2 destinations: The lending network supply side and the RainMaker program.
Get your rainSPIRIT >>>> https://ola.finance/rainspirit
rainSPIRIT contract address: https://ftmscan.com/address/0xf9c6e3C123f0494A4447100bD7dbd536F43CC33A