CVP Proposal: Pumpkin Finance, single-sided liquidity on Metis (Artichoke Fork)

Approved CVP
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INTRODUCTION

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Pumpkin is a native-based liquidity provision and liquid re-staking protocol built on the Metis Ecosystem. Within it’s core, Pumpkin is essentially a native fork of Artichoke, a protocol that has already demonstrated traction and track record on the Arbitrum Blockchain.

Unlike many other protocols, Pumpkin provides a one-sided liquidity layer to any ERC-20 on top of any well-known decentralized exchange, by using a collateralized debt position in conjunction with an omnipool.

AMMs, LPs and staking protocols have been widely used throughout the crypto ecosystem since inception. This is due to its simplicity and straight-forward, permissionless liquidity provision for new assets created on-chain. Regardless its widespread adoption, interacting with LPs, and staking itself, are not financially efficient and far from a flawless experience.​

Several protocols such as Uniswap have improved LPs from V2 to V3 introducing range orders and one-sided liquidity provision. However, improvements are still not as efficient as we expected. Newer projects find really hard to build new and strong liquidity pools without giving up initial incentives.​

Pumpkin attempts to solve this issue by building a single-sided LP protocol (SSLP) for staking assets, without the need to provide an stable USD-pegged liquidity on the first stage of the protocol cycle.​​

USEFUL LINKS

PROPOSAL

As new and innovative liquidity protocol, Pumpkin aims to replicate what Artichoke did on the Arbitrum Blockchain. In that sense, an official support from the Metis Foundation will be crucial for protocol growth and awareness. Co-marketing will be expected from Metis in order for us to fully deploy Pumpkins’ potential.

VALUE PROPOSITION

Single–sided liquidity provision built on top of HerculesDEX, using an omnipool approach with collateralized-debt positions on spNFTs (LP positions on Hercules V2 and V3), brinding deeper liquidity and more capital efficiency to the Metis Ecosystem.

Pumpkin is currently going through a public-sale using Hercules launchpad infrastructure: Hercules DEX | The Latest in DEX Technology. Upon completing our public sale, a PUMP/METIS LP will be deployed on top of Hercules and several Tails (omnipools’ Vaults) are going to be incentivized with the funds raised.

SHORT-TERM ROADMAP

  • March 30: Public IDO ends on HerculesDEX

  • March 31/April 1: PUMP/METIS LP Goes Live

  • April 15: Pumpkin Protocol goes live with Staking

  • April 20: wMETIS/m.USDC Tail goes live with incentives

  • May: Announcing new partner Tails and deploys over Hercules

  • May: Peckshield Second Audit

CONTACT

Telegram Handle: @CXXVIII128

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Love to see the liquidity efficiency pumpkin proposes for Métis ecosystem builders and its investors. SSLP sounds like an amazing approach to LP for both protocols and providers.

I’m not fully familiar with SSLP so I have questions for clarity -

  1. Does a user only provide one asset side of an already functioning LP pool? Meaning, can I stake $METIS in a $METIS/$wETH pool and earn yield without IL?

  2. How is yield for LP providers, or stakers, calculated and distributed?

  3. What is vision for Pumpkin on Metis? How will it provide value to the ecosystem as a whole? Partnerships, incentives campaigns, etc…

Thanks team, and good luck in CEG!

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Thanks for the quick feedback!

  1. That’s the long-term goal of the omnipool: a user will be able to deposit a single asset over a LP. On Pumpkins’ first version, the end-user can deposit it’s spNFT (liquidity position on Hercules V2/V3) on a CDP and mint tPUMP, which gives instant liquidity to the user (tPUMP <> METIS). In that sense, minting tPUMP will allow the user to reach delta-zero IL in a single position.

  2. The yield for creating a tPUMP CDP and providing liquidity to the omnipool will be the APR accrued on Hercules + the yield provided by Pumpkin Protocol. All CDPs and corresponding Tails are going to be incentivized using METIS. Lets assume the case in which a user deposits into wMETIS/m.USDC LP, the user will gain:

34% on Hercules METIS yield + METIS yield from Pumpkin.

The protocol itself will have a zero fee until it reaches a certain amount of TVL. Then it will perceive 1.5 to 3% fee over the users APR position.

  1. We see Metis as a crucial player on the L2 ecosystems. With it’s current plans to incentivize development and liquidity, we think Pumpkin’s solutions will enable new ways of capital efficiency and enhance current locked liquidity provided by LPs. A lot of potential partnerships can be proposed as tPUMP could have any underlying asset as collateral, which can open the door for several new protocols like LRTs, another DEXs, margin trading protocols, etc.
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