Introducing the Different Roles on Sunder’s Ecosystem

Sunder Protocol is the first framework that allows for utilities of Governance tokens to be mutually inclusive, enabling participants to remain exposed while being able to bear interest via strategies, without sacrificing on voting rights. In this article we will dive into how Sunder users can engage at different levels, depending on their interest. We’ve identified 6unique roles, which users can adopt based on their preferences.

Disclaimer: Sunder Protocol is a work-in-progress protocol and changes could be made along the way when launching on Ethereum Mainnet, depending on development and backtesting. Instructions are based on the upcoming Alpha interface on Kovan network.

Basic roles on Sunder Protocol

With Sunder, users have the choice of following alternatives as per how they would prefer to engage:

• Farmer
• Governance Activist
• Arbitrageur
• dToken/eToken Miner
• SGT Miner
• Yield Strategist

Lets dive in to each one of these and provide a step-by-step tutorial on how to engage with our upcoming Alpha release:

1. Farmer — Users seeking for yields, careless on voting rights:

These users will sunder the native governance token(s) in order to receive dToken(s)/eToken(s), since they don’t specifically have interest on governance participation, they could sell their dTokens and bear interest with the strategies offered by the Strategist with their eTokens as well as purchasing eTokens directly from the AMM at a marginal cost.

Note: Assuming the dToken is not trading at zero value, this user would obtain a marginal cost over the yields (less capital required for same yields.
Also, assuming not 100% of eTokens would be staked for yield eligibility, it would increase the returns per eToken staked. Multiple ways that pure yield seekers would take advantage of, when compared to yield aggregators alike Yearn Finance

Steps:

• Mint dToken and eToken by sundering the native token

• Keep the eTokens in your wallet and go to SushiSwap pool to sell your dToken

• Stake your eTokens into the yield vault and enjoy!

2.Governance Activist:

There are two ways to engage:
Option A) Sunder the token and sell the eToken for profit, keeping the dToken to vote in the future proposals.

Steps:

• Mint dToken and eToken by sundering the native token

• Keep the dToken in your wallet and go to SushiSwap pool to sell your eTokens.

• Vote on the proposals with your dToken holdings:

Option B) Acquiring exposure purchasing dTokens directly from AMM at a marginal cost.

Note: The voting process is triggered via Snapshot, simply needing a signature message originated from users wallets, the outcome for dToken holders results in zero cost of executing governance participation rights.

3. Arbitragers:

Since the dToken and eToken will be priced in different pools, there will be room for arbitrageurs who will maintain the fair price according to the underlying governance token ( dToken + eToken are set to be remain approximately equal to the price of the underlying governance token ) if the sum of this isolated tokens surpasses or doesn’t reach the native token price, arbitrageurs will have an opportunity to take advantage financially as well as maintaining the 1:1 proportion.

4. dToken/eToken Liquidity Providers (Sunder Miner 1):

These users will sunder the native governance token to receive one dToken and eToken each, which then can provide liquidity to e.g: the dCompound/DAI SLP and eCompound/DAI SLP pools for fee acquiral over trading volume(rewards will be given in SGT). We believe this is set to be a revolutionary moment for any Decentralised Protocol to see how the first mover would price his/her voting right when the liquidity pool is created and we will see how the market will react to the initial price; same with the eToken since the yield would be higher than normal stakers given there will always be an x% locked in liquidity and y% in circulation and z% staked to share the yield.

Steps:

• Mint dToken and eToken by sundering the native token

• Become a Liquidity Provider and stake your SLP tokens into the Sunder App:

5. SGT Liquidity mining rewards program (Sunder Miner 2):

This program is designed to incentivise Sunder-ETH SushiSwap liquidity providers. The Sunder-ETH pair is currently traded on SushiSwap. Liquidity providers can stake their LP tokens on the Sunder Liquidity Mining page to be eligible for rewards. These are redeemable anytime once mined.

Steps:

• Provide liquidity on the Sunder/ETH pool on SushiSwap to get LP token

• Once you receive the LP tokens, go to ‘’Liquidity Mining’’ on app.sunder.finance

• Start staking LP tokens and enjoy the rewards!

6.Yield Strategist:

Strategists can suggest yield strategies by holding SGT and submitting to the Sunder Community. Strategists obtain returns, structured as strategist fees. The changes of strategies will be finalised by the Sunder governance vote. These are deployed via 3 core smart contract structures.

Vault contracts will determine where tokens from Sunder vault will be allocated. The Controller contract will set strategy accepted by SGT holders, while the strategy contract will execute these with available tokens from the vault.

Products like Sushi’s BentoBox will play an important role to generate yield for collaterals from the Sunder Vault, as one of the potential environments to deploy on. As BentoBox becomes more versatile, Sunder will also grow in integration possibilities with its strategies.

Note: These are not exclusive roles, and could be overlapped as well as combined with one another, e.g. One may be interested in farming yields via staking eTokens in the Sunder Vault, while mining SGT via Liquidity Provision on the designated dToken pool, And utilise mined SGT to engage as strategist and propose a nouvelle strategy for a specific native governance token.
Also, there’s other side roles that could be considered, such as speculators on isolated tokens. E.g. a user that identifies potential opportunity on an increased demand over dTokens for an upcoming relevant proposal.

Overall, there’s plenty of variety on new opportunities for DeFi participants with the approach we’re taking with Sunder as stated in this article, and we hope you are as thrilled as we are on launching the upcoming product release!

About Sunder Protocol | Vision

The vision of Sunder Protocol is to allow any user to extract full value of governance tokens through Sunder Protocol. Participating in governance while earning yield to be simultaneously achievable, avoiding excessive overhead cost spent on fees.

Governance Participation should not be an excluding factor for alternative utilities, left available to fewer large holders.

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For inquiries, collaborations or direct outreach:
Find us on Discord or send an email to: contact@sunder.finance