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Originally published March 27 2024
Hello friends and BREAD Heads! It’s been a while but that’s because we’ve had our heads down hard at work to keep building out Breadchain while keeping up with all the latest innovations happening in the space. And we now have an important announcement to make that we’re incredibly excited about and will inform our next moves and expansion for the community.
Over the last year of building and integrating our Bread Crowdstaking Application on Polygon, we have decided to make a big change and move the application and our focus to building on Gnosis Chain and its ecosystem. There are three main reasons why we decided to make this transition.
In the original version of the application we were earning interest from lending DAI given by users through Aave on Polygon POS. The new version of the Crowdstaking Application will derive interest from the Dai Savings Rate token (sDAI) on Gnosis Chain. What is interesting about this mechanism is that the Dai Savings Rate acts as the minimum yield to expect to be derived for the network. This is because all of the bridged DAI to Gnosis Chain was converted to sDAI on the mainnet which is thus generating yield. This yield is then being shared with those who hold sDAI on Gnosis Chain. Since there will always be less sDAI on Gnosis Chain then there is sDAI in the Gnosis Chain bridge, there will always be higher yield for sDAI on Gnosis Chain. This gives more reliable guarantees than the volatility of Aave lending markets.
Another benefit is that the new application only requires one token (xDai) for users to use and does not require a contract approval before users can bake BREAD. In the Polygon version, users needed MATIC and DAI in order to bake BREAD and approve the contract which we found to be cumbersome especially for onboarding new users.
Gnosis Pay debit cards were recently launched and delivered to those who pre-ordered them and allow users to spend their crypto through a normal debit card connected to a Safe account on Gnosis Chain. Gnosis Pay will also allow users to send bank transfers via IBAN to automatically bring their money on chain through Monerium. We found this to be an incredible unlock for increasing the usefulness of digital community currencies like BREAD. Now BREAD holders will soon be able to buy bread with their BREAD through a Gnosis Pay debit card! In fact this is what we recently worked on at the ETH London hackathon and won a prize for. We recommend if you want to support Breadchain and qualify for a card to order a Gnosis Pay debit card in preparation. This integration will take some time to make fully available but we believe will be a major key to scaling.
BREAD on Gnosis Chain will form the foundation of our governance structure which we are building to allow holders to vote on and influence how the generated yield is distributed each month among the member projects. Our on chain governance structure is currently in the process of being built thanks to our partnership with PowerPool with the goal of having our first governance round in April or May 2024.
Also, in case you haven’t noticed yet, we are combining this transition with a rebrand to fit the way we want to look moving forward. We’ve not only changed our logo but also vastly improved the look of the interface of the application while still keeping its functionalities simple. We want to show that post-capitalist crypto applications can look sleek and be user friendly even without the backing of venture capital. Our new look is a visual representation of a crypto infrastructure for those who truly want something different than the status quo through solidarity primitives.
The shift to Gnosis Chain means that there will need to be some change management to ensure that the collateral that is currently in the Polygon application is safely transferred to Gnosis Chain. At the time of writing there is about 40k BREAD that needs to be moved since we will be deprecating the Polygon version of the application. In order to facilitate the change, we will manually move all of the collateral currently in the Polygon smart contracts to Gnosis Chain and airdrop the new BREAD on the new chain. In this way we would not lose all of the collateral currently staked to generate yield and would reduce the complexity for users so that they all don’t need to manually bridge the collateral (although this is something that users can already do). This will be done live during the regular community call on April 10th in the cryptoleftists discord server.
Here is our step by step proposal for managing that change.
Create fully functional crowdstaking application on Gnosis Chain (done)
Prepare the transactions on Polygon necessary for the update (done)
Communicate the transition to the community with content (now done)
Initiate transactions with the approval of the Breadchain multisig for the transition (between now and April 10th)
Turn off baking and burning functions of the Polygon smart contract
Pull out all collateral and generated yield in DAI to the Breadchain Coop Multisig (0x6A148b997e6651237F2fCfc9E30330a6480519f0)
Return DAI to all multisig wallets holding BREAD
Bridge DAI to xDai on Gnosis Chain
Bake BREAD on Gnosis Chain with xDai
Airdrop new Gnosis Chain BREAD based on Polygon holders
By following these steps we should be able to avoid any issues with the transition and anybody losing any money. Additionally, users can receive a small amount of xDAI from the Gnosis Chain faucet so that when they see their BREAD on Gnosis, they will have some xDAI to make transactions from the start. This is planned to happen by April 10th. Join us in the discord and our weekly community calls to stay up to date.
As a holder of BREAD on Polygon or just a supporter of a post-capitalist web3, here are some things you can do in order to support the collective and prepare for the transition.
Manually migrate your BREAD from the Polygon to the Gnosis Chain version. While this isn’t necessary, until April 10th, 2024 users are able to do the bridging themselves before we do the bridging for all the collateral that’s left. This way you don’t necessarily have to trust our change management process. You can find a video here where we showed how to begin bridging assets manually in our latest community call. You can use services like Hop to bridge DAI from Polygon onto Gnosis Chain.
Pull your BREAD out of the Arrakis liquidity pool. We will no longer be using Arrakis to handle our liquidity pool and instead will be using a liquidity pool on Curve.
Sign up for a Gnosis Pay debit card. We have big plans for integrating with Gnosis Pay and so the earlier you have the card, the more prepared you will be for when we integrate BREAD into the system.
Download the Citizens Wallet and begin sharing BREAD with your friends. We are partnering with our friends at Citizen Wallet, which is an account abstracted and user friendly mobile wallet that even your grandmother can use. Make p2p payments with BREAD without needing any xDai for transaction fees and without needing to know how crypto works. Try it out with your friends or join one of our upcoming demos on Discord!
Sign up on the Contributor Form. We can’t do this alone and are always in need of developers, community stewards, writers, marketers, product managers, and more to help make this a reality. We are also looking for a volunteer coordinator who can help us ensure a smooth process for getting contributors to help the best they can. If you want a closer look technically, check out our Github.
Get some xDai and mint new BREAD on the Gnosis Chain application. You can use services like Hop to bridge assets from Polygon or elsewhere onto Gnosis Chain. If you don’t have crypto assets to bridge then we can recommend Ramp or Mt Pelerin for buying xDai with fiat until you get your Gnosis Pay debit card.
Donate to our Open Collective. If you want to give fiat directly, then this is the best way to do so and also greatly helps fund what we’re doing.
In the meantime we will publish new articles to explain in more detail on Mirror and on our YouTube channel how to use the on chain infrastructure. We will also be communicating everything regarding the deprecation of the Polygon application and airdrop on to Gnosis Chain on our Twitter and discord server. If you’re working on something that you think fits with the ethos of Breadchain, apply to have your project be part of the network or just to drop us a line, email us at contact@breadchain.xyz.
