How Turtle Works With Partner Protocols
Last updated
Last updated
Vault aggregators are inherently parasitic in nature, as they farm, harvest, and dump protocol emissions. As such, they drain the liquidity and life out of the ecosystem they integrate with to compound the underlying vault LP tokens of their LPs. This causes continuous selling pressure and undermines every protocol they leach off of. They also introduce additional counterparty risks, technical debt, and gas fees. Another limitation they have is that they are not designed with point systems in mind.
In stark contrast, the Turtle Protocol fosters an inherently symbiotic relationship with its Turtle Partner Protocols. The goal of the Turtle Protocol and TurtleDAO is to support and accumulate large token allocations in all the best emerging protocols. TurtleDAO contributors can actively work with them to structure liquidity pools and strategies to improve liquidity utilization, improve and address security concerns, and help them attract and retain TVL. In addition, the Turtle Protocol is designed at its core to be flexible to accumulate multiple different types of contributions such as points to participate in large airdrops on behalf of the Turtle users.
Turtle is a protocol-agnostic liquidity layer dedicated to leveraging collective due diligence and bargaining power to establish sustainable liquidity partnerships across the DeFi landscape. These strategic alliances are designed to provide the Turtle LPs with enhanced yield opportunities while collaboratively addressing and mitigating counterparty protocol risks.
The process Turtle employs to forge these liquidity partnerships is organized into a series of steps that ensure each partnership aligns with our core values of transparency, security, and mutual benefit:
Seamless API integrations
Proposal and Staking by Members:
● Users propose partnerships with innovative protocols they're interested in and stake their tokens to show support for deploying liquidity.
Demand Assessment:
● Turtle representatives evaluate the level of interest among members to deploy liquidity into the proposed protocol.
Partnership Proposition:
● Representatives approach the protocol with a partnership offer, leveraging the collective bargaining power to negotiate enhanced yields.
Audit, Security Status, Needs and Evaluation:
● Turtle LPs and auditors perform a detailed technical and financial review of the protocol's codebase and economic model to identify any potential risks.
● During the review, we will assess the security needs of the project and guide the project toward a path of greater security.
Security and Risk Mitigation:
● In collaboration with the protocol, Turtle establishes best security practices and addresses possible vulnerabilities.
Integration and emissions:
● Following the finalization of terms, the Turtle Protocol integrates the protocol, enabling LPs to start receiving emissions for their deployed liquidity.
Turtle Token pledging:
● Participating in Turtle token pledging involves committing Turtle tokens to Turtle Partner Protocols for an extended period, earning Turtle token staking LPs a higher proportion of rewards compared to non-Turtle token staking LPs. This commitment enhances Turtle's negotiating leverage during (re)negotiations with Turtle Partner Protocols.
Settlement:
● At the end of each epoch, the Turtle Partner Protocols sends the agreed-upon emissions to TurtleDAO, which then distributes them to Turtle LPs based on the achieved multiplier and farmed emissions during the epoch.
● If the Turtle Partner Protocols qualify for Turtle emissions, the TurtleDAO allocates their pro rata portion accordingly.
This structured approach not only ensures that Turtle partnerships are established with due diligence, but also reinforces our commitment to fostering an ecosystem where transparency, security, and the mutual benefit of all stakeholders are paramount. Through frictionless networking and deal-making, collective security due diligence, self-regulation, and collective bargaining for yield enhancement, Turtle is redefining the standards of liquidity syndication in the DeFi space.
