Encanto will be launching a second arm on Arbitrum. We are somewhat held back by ForteSwap’s lack of a token. Unfortunately, there is no public timeline for a token so there is no asset for us to accumulate on Canto that gains major voting power. We want to build a treasury full of valuable assets. To achieve this, we must look in another direction.
Our next step is a rewards engine built on top of 3xcalibur. 3xcalibur is a solidly fork just like ForteSwap, but with far more features including multiswaps, zaps, veVoting, bribes, a lending market, and more. Holders of the $XCAL token will gain powerful voting rights that can direct $XCAL emissions. The new protocol will be called Shield of Xcalibur 🛡.
Shield will offer higher APR than what is natively offered on 3xcalibur paid out in the $SHIELD token. In exchange, all $XCAL rewards will be directed to the protocol. You may be asking, why would I hold SHIELD?
First of all, the SHIELD LP pair will certainly have the highest APR on the platform, but that’s not all.
In addition, 50% of $XCAL rewards earned by the protocol will be distributed to SHIELD/USDC LPs and the remaining 50% will go to the Shield of Xcalibur treasury.
That means SHIELD LPs will be earning rewards from all depositors! The higher the TVL, the more XCAL rewards for SHIELD LPs.
Initially, all of the protocol’s voting power will be directed towards the SHIELD/USDC LP pairing allowing us to greatly increase the amount of XCAL earned by both SHIELD LPs and the protocol.
No doubt you are wondering…
“What happens to Encanto?”
“What about ENC holders?”
ENC rewards will stop shortly. When Shield launches, ENC holders will be airdropped SHIELD in a 1:1 ratio.
Encanto will resume once ForteSwap launches its rewards system, so it’s worth holding onto your ENC even after the airdrop is done. You could end up having both valuable SHIELD tokens and ENC tokens.
If ForteSwap decides to do a retroactive airdrop, Encanto would gain many tokens that could be locked and used to vote for higher rewards for the ENC LP pair on ForteSwap without diluting ENC token holders.
It’s best to not remove your ENC LP positions yet. You’ll want to gain as many ENC tokens as possible leading up to the airdrop. The snapshot time will be announced so you will have time to remove your LP.
Please follow ShieldXcalibur and retweet our explainer thread. Remember, higher TVL = higher rewards for SHIELD holders 🛡
https://twitter.com/ShieldXcalibur/status/1588598163845382146