Lil Nouns DAO

$LIL token can be earned by staking Lil Nouns tokens in the NFTx pool. This process involves depositing your Lil Nouns NFTs into the pool, where they are used to generate $LIL tokens as rewards. This token is issued by the NFTx pool, and we don’t have a lot of control over it. Utilizing it can be a bit challenging. However, it provides its own value and can be easily exchanged through SushiSwap for any other token.

Using $LIL token as a reward on the mainnet is not cost-effective, and its own functionalities are limited. Therefore, I propose creating a wrapper token that can wrap $LIL tokens. This will allow us to use its current benefits and add extra functionality. The $LIL token can be wrapped on-chain using a smart contract, enabling us to add governance capabilities and the ability to bridge the token to L2 networks.

The use cases for wrapped tokens include using them as reward tokens with lower gas fees in Farcaster rounds. We can also create a bridge contract for wrapped tokens on any L2s that the DAO decides on in the future. Additionally, we can create voting pools over L2s using wrapped tokens. Finally, we can bridge wrapped tokens back to the mainnet and unwrap them to be used for claiming a Lil Noun from the token pool. These are sample use cases, and we can leverage the token for many other purposes in the future.

Deliverables 📦 include a wrapped token contract, bridging contracts, and a frontend for bridging tokens to L2s. Related contracts will be audited, and the source code for both the frontend and contracts will be open-source.

The timeline ⏳ for the project is 3 months for implementation, deployment, and audit, along with building the frontend. The funding request for the whole process is 6.9 ETH.

Deployment will initially be on Base, but it could be deployed on other networks as well. 🌐