Cashio is a protocol that allows users to mint a stablecoin according to an exchange rate on LP tokens they provide as collateral. The protocol can take any form of LP that is accepted on Sunny/ Quarry & it will automatically send the mining rewards to the Cashio Treasury in the form of IOU/Reward tokens. The more stable coins people mint - the more rewards generated in the Treasury. These rewards were historically USDT-USDC LPs (from Saber fees), SBR & SUNNY. Furthermore, the Treasury is implicitly split into three parts: (1) the LP tokens representing the collateral backing CASH, (2) the LP tokens representing fees paid out by SBR, (3) SBR/SUNNY rewards accrued from providing liquidity into Sunny & Quarry.

In the first version of Cashio - we only accepted USDT-USDC LPs as collateral. This is because this pair was the most important stable-pair for liquidity at the time. Now it is skewing more towards algorithmic stables like UXD & NIRV. Regardless, what Cashio has is Protocol Owned Liquidity (POL) which it can use to earn fees & vote on future emissions. The original roadmap was to create a Cashio DAO which would permanently max lock the SBR/SUNNY rewards & allow DAO governance token holders to vote on behalf of the collectively boosted voting power of the DAO’s treasury (which grows even more voting power as the stable coin becomes more widely adopted/ used for farming). The governance token was going to be distributed to SBR/SUNNY/COW holders as well as LM emissions - but now we realize this is not sustainable.

You can read more about the original roadmap in our docs.

Although there are still many aspects of this roadmap we think would be useful - the mechanism for how we issue and flow value into the governance token is something that we’d like to innovate on in the spirit of Defi 3.0 & the value protected by projects like Nirvana Finance in these extreme bear markets.

Those who have the most lost money deserve the most value from the future of this protocol. In order to achieve this - it is best to relaunch the protocol alongside the DAO owned by victims. We can do this by making the governance token have a floor price, and issuing call options on that floor to victims in order to gauge value returned to victims. Victims will have the option to exercise their option and join the DAO at the lowest possible price, or sell their option for its market value which will be above the floor.

This way victims are put in the best position to be made whole. We also think we can push the envelope on “Defi 3.0” mechanisms to further push the envelope & attract more value in the long run by transitioning the value emitted to the Saber ecosystem away from the SBR coin (which will run out of emissions eventually & continuously lowers in price while demand is equal) and towards sustainable call options. We will launch with the support of Saber directly since our product’s revival requires extensive integrations with the Saber ecosystem. In this regard, Ian from Saber will support the development process & the Saber team will help fund code audits by multiple 3rd parties prior to launch. They will also seed our governance vault with a grant amounting to the entire Saber team’s liquidity vault, which was ~$25m (equal to size out outstanding stolen funds) in mid April 2022.