Title of your idea
uGREEN - Tokenizing the Budding Future of Cannabis
Summary Description
I proposed sENERGY to inspire a brighter future for humanity so of course, I had to design something for the degens. Introducing uGREEN, a synthetic asset that tracks the Top 10 cannabis stocks. Currently, the only index options on the stock market were designed by Wallstreet. Are we going to let Wallstreet decide who grows the best bud? Didn’t think so, this new synthetic asset will allow the crypto space to help cultivate the cannabis market rather than Wallstreet. *
Which metric will your synth track?
uGREEN is a synthetic token that represents an index composed of the top 10 stocks in the cannabis industry.
How will you get data for your metric
What sources will you use? How reliable are these sources, are there any barriers to getting reliable data, how much might access to this data cost, can it be corrupted, is the data granular enough to be meaningful, does the data reflect the metric that you are tracking
From NYSE, NYSE Arca and NASDAQ exchanges for each stock in the index. The initial price of the token would be based on a snapshot of closing prices at a certain date. The index would use a 2hr-TWAP to determine whether a position is collateralized or needs to be liquidated. These data sources are very reliable and a low-cost option.
What collateral would you use for this synthetic
why have you chosen that collateral
USDC would be used as collateral and for creating the liquidity pool on Uniswap because it’s a very liquid market and using a stablecoin for something like this is a must to lower the volatility and risk of a user’s position getting liquidated.
Describe how you would create this synthetic
We would work with a developer who’s worked with the UMA protocol and hopefully even with the Degerantive.Finance team to build the framework and contract for the token. As far as using the most accurate metrics possible the data from the NYSE, NYSE Arca and NASDAQ exchanges with the addition of a 2hr-TWAP should be reliable enough. Plus, with a 24-48hr settlement period, the data should be verifiable by multiple sources.
What issues might you encounter in the development of the synthetic
Coming to a consensus on the top 10 stocks to peg uGREEN to, we will need to define what counts as a cannabis stock as there is some grey area in the definition. Of course, the token contract also needs to be rock solid but finding vulnerabilities in smart contracts isn’t our specialty and would need outside council on that potential issue.
How you would make sure that people who would find the synthetic useful could access it.
As you’ll see in the example below uGREEN would have a stylish website that was simple to use and provided a ton of resources to help guide the user in minting uGREEN tokens. Another feature of the site would also incorporate Blockzero’s claim Dapp for LPs to receive governance tokens. We’ve designed an NFT series to help promote and grow the uGREEN ecosystem, we would have a page on the site that displayed the NFTs and linked to where people could buy them on a platform like OpenSea. To get uGREEN off to a blazing start we would have a ton of marketing content lined up and below you can read about some of the ideas around the NFT series.
Governance or KPI Option: kBUD token - This potent little guy is the heart of the uGREEN ecosystem just like the bud is to the cannabis plant. Do you smell that? That’s the sweet scent of rewards in the form of kBUDS that work as governance and provide rewards based on KPIs to help spark the future of the uGREEN index. By minting uGREEN and providing liquidity you can harvest kBUDS. In addition, you can receive kBUDS by getting certain NFTs.
uGREEN NFTs: To help plant the uGREEN seed we would design an NFT for the first 100 LPs that minted uGREEN and provided liquidity for at least 30 days. These would be the rarest and have the most value associated with them. Then there would be a second NFT made for the next 250 users who provided liquidity for 30 days. We would also create a series of NFTs from the uGREEN and kBUD characters we’ve designed and sell them with 100% of the proceeds and royalties on future sales going into the kBUDS DAO to continue to fund the index and fuel community participation. We could get really creative here and design the rarity/power of each NFT around well-known strains of marijuana.
uGREEN Celebrity NFTs: Another way we could use NFTs to ignite the growth of the uGREEN ecosystem would be to create NFTs of a few cool pot-smoking celebrities like Snoop, Paris Hilton, Matthew McConaughey, Seth Rogan, etc… and give them 100 NFTs each to send to their fans. This is a fair way to distribute some of the NFTs and if one of the celebrities shared them it would go viral.
Adding Value to the NFTs: To add some extra benefits to these NFT our team would reach out to the top cannabis brands and work out a deal with them to offer an exclusive discount on products to the NFT holders. I don’t think it would be hard to get some companies on board to provide discounts with them potentially gaining a lot of exposure to the crypto audience. We could also do periodic airdrops of new kBUDS to people who are HODLing the NFTs to keep the fun going. We have a few more ideas on how to add value but we’re going to cap it there so this doesn’t get too long.
Website and logo Mockups
I know this wasn’t mandatory for the contest but my brain couldn’t help mocking up what this project could look like. I even created the characters for the token and NFTs.
Token logos and NFT characters
, this one would be fun to create. Please come back and vote when they open up voting 