DeFi Unifier Shell Protocol Launches Token, Staking, and Arbitrum AirdropSponsored
Shell Token Launch On January 22, 2024, Arbitrum-based DeFi protocol Shell launched its long-awaited SHELL governance token. Airdrop recipients can check their eligibility through the Shell app. Once claimed, SHELL tokens can be staked to generate yield. ...
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Shell Token Launch
On January 22, 2024, Arbitrum-based DeFi protocol Shell launched its long-awaited SHELL governance token. Airdrop recipients can check their eligibility through the Shell app. Once claimed, SHELL tokens can be staked to generate yield. Staked tokens grant voting power in the Shell DAO, which governs the protocol.
Shell aims to unify DeFi with a single swap interface for NFTs and one-to-many swaps across every major protocol. The protocol was built by a Hawaii-based DeFi development team, and has grown to a user base of 45,000.
Shell v3: “Illegitimate 1inch and DeFi Llama Love Child”
Shell is a longtime DeFi protocol, created in 2020 by Cowri Labs. Cowri is helmed by chief economist and founder Kenny White. In 2021, Shell v2 became one of the first Arbitrum-native DEXs, launching with a novel smart contract design for swaps.
With Shell v3, developers at Cowri Labs hope to combine their unique technology with the massive liquidity of major projects like Uniswap and OpenSea, delivering a unified DeFi experience in a single app. “It's the first real omni dapp,” says Cowri Labs head of developer relations Petar Popovic, “the app where you can do everything. That's the goal.”
At launch, Shell v3 supports Balancer and Curve pools, allowing users to trade tokens and NFTs through multiple protocols from within the Shell app. Unlike aggregators, Shell v3 also allows users to manage LP positions across all supported protocols.
White hopes that Shell v3 will combine the best features of DEX aggregator 1inch and data aggregator DeFi Llama, becoming a place where people come to trade and explore the DeFi ecosystem. Shell v2 benefitted from an impressive UI and contract design, but nevertheless struggled to offer competitive swap rates in the face of older protocols with much larger TVL. Consequently, Shell v2 users had to choose between staying within the Shell app or hunting for better rates.
Shell v3 aims to solve this dilemma by integrating all major pools across all protocols with the Shell contracts and app. To start, the Cowri team is focusing on Arbitrum, but with the launch of the DAO the future will be shaped by community vote.
One big change with Shell v3 is a de-emphasis on native protocol TVL. Since Shell now serves to connect external pools, the Cowri team feels volume is the key to success. One major responsibility of the DAO is control over the protocol unwrap fee, which is currently set to zero but may be activated in the future to generate DAO revenue.
The total SHELL token supply is 200 million, unlocked every block after token launch through two-year linear vesting. 40 million have been allocated to users who contributed to the protocol over the past four years.
80 million tokens are split across the Cowri Labs core team, Cowri Labs itself, protocol contributors, and Cowri Labs investors such as BlueYard. 80 million are in the newly-formed DAO treasury, fully under the control of DAO members.
Tokens are not available in full upon claiming the airdrop. All investors, core team members, and airdrop recipients will unlock their SHELL on a block-by-block two-year linear vesting schedule.
The vesting system uses tradeable vesting NFTs from Sablier. From launch, the NFTs can be bought and sold via NFT marketplaces. Shell is also building a vesting stream AMM to allow instant in-app buying and selling of vesting NFTs. This AMM is expected to launch later in Q1 2024.
The SHELL token is currently trading through the Shell app. As for Cowri Labs, the team is already planning future integrations, with Uniswap and Aave on the near horizon.
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