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Olympus DAO

olympus-dao

Making Sense of the Olympus DAO

Balancer attracts Liquidity from OlympusDAO due to its decentralized automated portfolio manager and decentralized exchange OlympusDAO has committed to moving $50 million of liquidity to Balancer Protocol following the community governance proposal. The principal purpose of this structure is to reduce the price effect of accessing $OHM through $DAI and $WETH. OlympusDAO, Balancer DAO, and Balancer Labs collaborated on this project. Balancer's multi-token capabilities and variable weighting flexibility, for example, are being used to address liquidity fragmentation. The maximum treasury distribution will be $25 million $OHM, $12.5 million $DAI, and $12.5 million $ETH. Protocols are increasingly requesting that their token public auctions be conducted in OHM. However, there is currently insufficient OHM liquidity on the Balancer protocol to support this form of auction. Security, adaptability, and capital efficiency are the foundations of Balancer V2. A constant product AMM is stiff, but an invariant AMM is flexible. While it is true that a 50/50 weighting between two tokens has the smallest relative price effect on swappers, not all cases are the same. The versatility of Balancer gives LPs the ability to create custom solutions for their specific use cases. The advantage of pooling liquidity to boost the pricing effect for swappers is shown by the case of Olympus. Another instance would be underutilized liquidity pools. In other words, given volume as a fraction of available liquidity, the price effect is less critical (price depth). In this case, pool weightings on Balancer might be tweaked to reduce IL and reserve upside while keeping the same volume at no expense to swappers. The transfer of $OHM liquidity to the Balancer Protocol is a case study for any project that manages or incentivizes liquidity on a decentralized exchange. Balancer Weighted Pools' versatility and customization, together with the usability of Balancer Protocol products like LBPs, give a one-stop-shop solution for liquidity management. It is feasible to solve for more than only price effect, and this may be done in tandem with decreasing liquidity fragmentation. Understanding Balancer and the Rise of Maximizing Protocol Liquidity DeFi treasuries are interested in exploring ways to maximize their protocol-owned liquidity or incentive programs as moving to Balancer. Balancer is a decentralized exchange, an open-source protocol, and an automated portfolio manager. Balancer is based on the Ethereum blockchain, provides fresh answers to the issues plaguing traditional and centralized exchanges. Developers use Balancer as a permissionless building block to design new treasury management systems. Balancer's purpose is to become the most flexible and powerful platform for programmable liquidity to be the dominant source of DeFi liquidity. Catch all the breaking news, and Don’t forget to like the story!

OlympusDAO Moves Liquidity Worth $50 Million to Balancer

175 Stories To Learn About Dao

Tokens, altcoins, cryptocurrencies - whatever you call them, native assets for blockchain projects have flooded the market. With them have come investors looking for the next big coin that could make them rich. Meanwhile, developers are working round the clock on projects using tokens to solve user problems, attract buyers, and entice new users with rewards. In this rapidly evolving landscape of and cryptocurrency, tokenomics has emerged as a critical factor in the success or failure of each project. , a portmanteau of "token" and "economics," refers to the intricate web of interactions governing blockchain tokens. For developers venturing into the world of token creation and blockchain-based projects, a deep understanding of tokenomics is paramount. blockchain technology Tokenomics Tokenomics determines everything from how a token supply is distributed, to the incentives and game theory involved, to how the token is used. Between crafting a sustainable token model and navigating the complexities of token distribution every cryptocurrency developer is tasked with building a system that can help ensure the product remains resilient and stable over time. MattyTokenomics, a token economics professional that has worked with Top 50 projects, recently launched an open source guide for developers looking to understand and master tokenomics. In this interview, we look into the guide’s creator and his view of the market at large. 1.  What is the purpose of this developers’ guide? I started writing ‘Tokenomics for Builders’ after speaking to startups that had just graduated from a . All of them were struggling with the same questions when it come to their token. How to decide if they should launch a token and when to do so, standards for allocation and vesting, legal structure, incentive and value accrual mechanisms. It was clear they needed a with a step-by-step design framework and all the answers in one place. I got to work compiling what became the guide that is now taught at multiple accelerator programs. Web3 accelerator guide 2. How do you see crypto developers prioritizing tokenomics in the future? I think crypto is slowly maturing where we’ll see fewer unsustainable Ponzi scheme games, and see more sustainable, rigorously designed tokenomics that prioritize economic security and incentive alignment. There will always be exceptions to the rule, but builders have enough historical examples to see that bad tokenomics can create economic exploits and kill even good products that have large user bases. Just as it’s standard to get code audited, it’ll become more and more standard for tokenomics to be audited to ensure what the code is designed to do makes sense in the first place. smart contract 3. In today’s market, can a digital asset survive without carefully considering tokenomics? Not in the long-term no. We’ve seen plenty of collapses caused by poorly designed tokenomics: , Steemit, , STEPN, Olympus DAO, Ampleforth, Iron Finance, Mango Markets, the list goes on. Fragile designs with poor risk management can still have a short term pump with enough hype marketing, but it never lasts. Terra Luna Axie Infinity Serious builders that want to build technology for the long term, not pump-and-dump schemes, need to ensure that incentives are well balanced, sustainable, and . That requires taking token design seriously. resilient to volatility 4. What are the chances that a cryptocurrency project could have one tokenomic structure and revert to another? It is possible to change tokenomics after launch, but it’s typically a very painful process that makes it hard to recover momentum. A whole chapter of the guide is devoted to helping builders think through the pros and cons of for a reason - most founders underestimate the risks, costs, distractions a token brings. launching a token It always easier to change the design before launching, which means taking the time to design, model, and rigorously stress-test a token before launch, even if you plan to give it away for free. Even tokens given away for free bring new types of risk and headaches for builders. Conclusion For any cryptocurrency project to see lasting success, it is important to get several aspects correct. Tokenomics is without a doubt one of these aspects. As the market has aged, the quality and standards for tokenomics that investors expect have increased. Fortunately for founders, however, there are more resources available than ever before to design a high quality, sustainable tokenomic model.

Tokenomics: What Developers Should Know Before Launching a Token

built with ZK-Rollup on Ethereum is announcing a Bug Bounty program with Immunefi for hackers to identify vulnerabilities. The program will pay out $1.11 million to a hacker who identifies a critical vulnerability in DeGate smart contract. DeGate- An Order Book DEX DeGate DEX protocol, which is powered by ZK-Rollup and secured by Ethereum, is preparing to launch its Mainnet Beta on Ethereum Mainnet. DeGate has already started a Zero-Knowledge Trusted Setup ceremony that is necessary to launch a ZK-powered protocol. DeGate, which operates as a DAO, is a permissionless, trustless and decentralized protocol. The tech team that developed DeGate takes security very seriously and in order to ensure this, the trust mechanism is guaranteed by three factors: ZK-Rollup data availability, the fact that there is no Admin Key and DeGate “Exodus Mode”. The intuition behind trustlessness in a protocol is to design it such that a malicious actor can “do no evil”. With trustless features, users can be assured that their money is safe, no one can steal them and they can withdraw the funds whenever they want. DeGate has already completed a full audit with Secbit. The audit report can be accessed . DeGate’s smart contract and circuit code is open sourced and DeGate is now asking for bug bounty hunters and whitehat hackers to help find bugs before the launch. here The bug bounty program includes separate sections for DeGate smart contract, Zero Knowledge Proof (ZKP) Circuit, websites and applications as well as API and SDK. DeGate will reward $1.11 million to a hacker who finds a critical vulnerability and also will reward others according to the impact of the vulnerability based on the Immunefi Vulnerability Severity Classification System. The security of DeGate comes from the interaction between the ZKP circuit and the smart contract. Therefore, the importance of the security of the circuit is equivalent to that of the smart contract. Timeline and Details: The bug bounty programme starts on April 7 and runs till after the launch of DeGate Mainnet Beta. Whitehat hackers will be awarded $1.11 million for a critical vulnerability and $100,000 for high-level vulnerabilities. Medium and low-fix vulnerabilities will also be awarded. More details about DeGate bug bounty can be found here: https://immunefi.com/bounty/degate/ Immunefi, a leading crypto security services platform, has previously run record-breaking bug bounty programs for Maker DAO, Olympus DAO, Synthetics and Chainlink, to name a few. It protects over $100 billion in users’ funds locked across DeFi protocols and smart contracts and has already paid over $10 million in bounties to whitehat hackers. DeGate Order Book DEX protocol aims to make decentralized orderbook trading seamless and efficient, similar to the experience of centralized exchanges, but with much higher security and decentralization. Users can expect super low gas fees as a result of DeGate’s special Efficient Gas Saving technology and also set up an innovative decentralized grid trading strategy. With a strong focus on security, user experience and trustless measures in place, trading on DeGate lets users Trade easy, Sleep easy.

DeGate's ZK-Rollup DEX Initiates $1.11m Bug Bounty Program on Immunefi to Enhance Security Measure

ZK-Rollup DEX de DeGate inicia un programa Bug Bounty de $1,11 millones en Immunefi para mejorar la medida de seguridad

ZK-Rollup DEX de DeGate lance un programme de primes de bogues de 1,11 million de dollars sur Immunefi pour améliorer la mesure de sécurité

DeGate के ZK-Rollup DEX ने सुरक्षा उपायों को बढ़ाने के लिए Immunefi पर $1.11m बग बाउंटी प्रोग्राम शुरू किया

DeGate の ZK-Rollup DEX がセキュリティ対策を強化するために Immunefi で 111 万ドルのバグ報奨金プログラムを開始

DeGate's ZK-Rollup DEX inicia programa de recompensa de bugs de $ 1,11 milhão no Immunefi para melhorar a medida de segurança

ZK-Rollup DEX của DeGate khởi xướng Chương trình tiền thưởng lỗi trị giá 1,11 triệu đô la trên Immunefi để tăng cường biện pháp bảo mật

DeGate 的 ZK-Rollup DEX 启动了 111 万美元的 Immunefi 漏洞赏金计划以加强安全措施

With the emergence of , a lot of financial experts predicted big changes due to the utilization of cryptocurrencies. However, it was evident—rather quickly—that Bitcoin has a fairly limited set of applications that could only be useful for sending payments, receiving payments, and lending. This showed that a push for a revolutionary decentralized financial instrument was required in order for crypto’s vision to become a reality. The DeFi movement quickly gained momentum, making the Ethereum network more popular than ever while giving the community a taste of what a decentralized financial world could look like. Bitcoin However, with the hype dust settling as market situations have toughened, the honeymoon phase is over, and now there is a significant discussion around what is wrong with the sector and how to fix it, so let’s explore DeFi’s issues from top to bottom in order to properly assess whether or not the future has a reserved spot for this technology in our world of finance. What is DeFi? Before we dive deep into the sector’s shortcomings, it’s important to properly define what it is and what problem it aims to solve in the first place. DeFi is short for Decentralized Finance and refers to a new financial instrument based on distributed ledgers, similar to the ones utilized by cryptocurrencies. Its ultimate goal is to decentralize financial services while providing users with the ability to perform transactions without the need for intermediaries This also includes savings for the end user, as the absence of an intermediary means the absence of fees that banks take for performing transactions, which only made the technology more appealing, further contributing to the concept’s popularity. CeFi vs. DeFi Starting off, it’s worth noting that the majority of crypto is traded on centralized exchanges. CeFi stands for Centralized Finance and it assumes a centralized institution—in the case of crypto, centralized exchange—responsible for storing and moving crypto, and taking fees for transactions made on the platform. On centralized exchanges, users do not have access to their wallet’s private key, so they depend on the platform for access to their cryptocurrency. CeFi also requires additional checks and balances to be met before you can gain full access to their services, which means that passing KYC procedures is a must, as these institutions comply with rules and regulations. On the other hand, Decentralized Finance has been described as the wild west of finance. It is unregulated and has no intermediaries. All transactions are based on smart contracts, allowing the sector to run autonomously without the intervention of a third party. DeFi does not require any user verification, so any person can gain access to financial services, even unbanked users residing in third-world countries. The only thing you need is an internet connection and a relative understanding of the technology. Centralized finance works in the same way as banks and centralized institutions, while decentralized finance aims to provide transparency, an open-source platform, and a system requiring no special permissions. Their services include crypto exchanging, lending, farming, staking, asset storage, and more. DeFi: Expectations vs. Reality When the idea of DeFi was conceived, the market was littered with misconceptions and . Lots of farmers and stakers thought that APYs are free money, where all you had to do is hold for a year and then you’re guaranteed a luxury home and car to accompany it. Welcome to the billionaire's club, right? a poor understanding of how the technology works Sadly, that wasn’t the case, as many investors dove in head first before acquiring a proper understanding of the technology’s economic structure. This resulted in a large number of users who lost their life savings due to not doing their due diligence when exploring this extremely hyped sector. If we take the catalyst of DeFi 2.0’s hype, Olympus as an example, we’ll start seeing the bigger picture. In April of 2021, Olympus DAO was created, then in October of that year, multiple forks were created, resulting in a price hike of 5x compared to OHM’s (Olympus’ own token) low in August. This turned many heads and attracted a ton of attention to the sector, especially when looking at their too-good-to-be-true APYs being at almost 8,000%. Compare that to today’s farming percentages residing in the 2 digits or low triple digits and you’ll notice a massive difference. Couple these promises of gains with users' lack of experience, and you have a misconception that invested capital would recover itself within a couple of months. Sadly, however, that was far from the truth. DeFi solutions that were at the center of the movement As we’ve established earlier, DeFi is a category of services that fit under an umbrella term describing decentralized financial tools serving a variety of purposes. Let’s go through these and dissect problems in each solution offered by projects. What is Staking? Proof of Stake’s flagship offering. Before we talk about this instrument, it’s important to clearly understand what it is. Staking is an instrument that allows crypto holders to generate passive income with their tokens. Investors can deposit their tokens with validators, which are special nodes responsible for the provision of infrastructure as well as validating new blocks and appending them to the blockchain. This would, in turn, contribute to its further decentralization, making it more secure in the process. What about profits? What is APY? Your staking profits are calculated in Annual Percentage Yield (APY) and it takes compound interest into account, including interest earned from the initial deposit plus the interest earned on that interest. This has become the primary passive income opportunity utilized by the community as it is the simplest and safest way to invest money in a project, although thorough research on the project you’re investing in is still an important prerequisite. With the emergence of the consensus algorithm Proof of Stake (PoS), comes a great passive earning opportunity for investors. The way it works is simple: buy a PoS-based token, transfer it to your wallet, join a staking pool, and HODL as your rewards are accumulated. The only problem is that some DeFi scams took advantage of the movement and started offering outrageously high APYs and making empty promises, which led to many losing large sums of money as a result. However, the technology does have quite a few advantages, provided that you’re investing in a legitimate project with a good & planned-out vision: It’s a great and risk-free way of earning interest on your crypto holdings You contribute to the further decentralization of a blockchain, thus, strengthening its security Unlike mining, you don’t need any additional equipment to take part Compared to mining, it’s a much more environmentally friendly earning method But how can you get an accurate figure of how much you’ll be receiving? Understanding profits using APY calculators APY calculation is a helpful method of understanding how the information displayed in the pool can be translated to terms that you and I can understand. There are plenty of calculators available that can help you get a more-or-less accurate expectation of how much you should expect to receive through staking, of course, assuming that the yield doesn’t change over your staking period. Here’s the information you need to input in a calculator: The dollar value of your staked tokens The Staking APY The staking period in years Once you input this data, you should have an idea of how much you should be getting back by staking. What is Farming? Hint: It has nothing to do with crops or livestock. This instrument has been a good way for advanced crypto users to invest with DeFi projects. Liquidity farming, also known as yield farming is a reward given for providing your liquidity to the exchange stock. Yield farming is a means of earning interest on your cryptocurrency, similar to how you'd earn interest on any money in your savings account. And similarly to depositing money in a bank, yield farming involves locking up your cryptocurrency for a period of time in exchange for interest or other rewards, such as more cryptocurrency. Your farming profits are calculated in APR, so what is APR? It stands for Annual Percentage Rate, and it can be dynamic, meaning that it could become higher or lower. You do need to consider, however, that farming is a riskier instrument than staking, as it does introduce risks of intermittent losses. Though with that additional risk comes a higher reward, if asset rates return to the same level they were at when you put your money into the pool then your losses will be recovered. That is why staking is recommended for crypto newbies instead of farming, as staking offers no such risks and your staking rewards are independent of the token’s value. Challenges facing stakers and farmers The problem with these instruments concerns liquidity. Not in terms or its availability, but in the sense that it should be actively used by exchange services and real users. If liquidity sits statically while being farmed, then the model is not sustainable and will not work over several years, instead, it’ll act as a temporary TVL boost. If a service wants to survive over the long run, it’s imperative that liquidity is seeing movement and is actively being utilized by users. What is a DAO? These have been a wonderful way to let the community contribute to a DeFi project’s direction, introducing—in theory—a truly democratized environment. Decentralized Autonomous Organizations are organizations represented by rules encoded as a transparent computer program, controlled by the organization members, and not influenced by a central institution. Rules are set in the DAO’s code, which is why this structure does not require any intermediaries, allowing it to run fully autonomously without intervention or interruption. The idea is great on paper, although practice has exposed flaws in the process. The challenges facing DAOs The actions of some DAO participants can directly contradict the interests of the rest, and when they have a high enough share of tokens, they can make convenient proposals that only play in their own interest. This may be the reason why democracy in DeFi—in the common sense of the word—is impossible. One user can create a massive number of wallets, and without incurring any losses, destroy the project or make a profit at the expense of other users. This is especially relevant when we compare the traditional democratic process to that of DAOs. Usually, 1 person = 1 vote. However, in a DAO, 1 token = 1 vote, so one person could manipulate the voting procedure, assuming that they’re holding onto a large enough quantity of tokens. This is the main reason, why a democratic environment for DAO participants cannot be achieved. The latest exciting DAO-related solution at the moment is the allocation of professional committees, similar to the model used in . Yearn Finance These committees hire professionals engaged in improving the protocol, and users can vote for electing or removing members of these committees. They can prepare updates to the protocol, which are then submitted to the DAO, and this system ensures that users will vote for thoughtful decisions while rejecting disadvantageous changes to the protocol, in theory. How can DeFi be improved? While there isn’t a shortage of challenges plaguing the DeFi sector, there are starting points that protocols need to consider. One of which is usability. Banks are effective at what they do, and that is owed to usability. Their apps are easy to navigate and use, and rarely do you need to follow a guide to complete a transaction or make a payment. DeFi, on the other hand, is a different story. Protocols are generally complicated and hard to understand due to being filled to the brim with crypto lexicon and terms that do users almost no justice. You may say that it’s because crypto users are advanced, but if our goal is to improve the state of the industry, then the technology and you cannot do that if the dApp is built for a niche community. has to appeal to the mainstream, Another problem is the need for better education. The world population has to be educated with regard to crypto and decentralized technologies. There is an influx of misconceptions and incorrect information on the internet. For instance, farming is viewed as just a passive income opportunity, where you put money and grow a project’s TVL when in reality, it’s a tactic to incentivize liquidity in order to meet exchange demands. Educating potential users is imperative to increase trust, as the decentralized industry lacks bailouts that centralized institutions have available, so if it crashes, it has to organically recover, and panic is prevalent in this industry with panic sales being a sure way of destroying years of hard work. Don’t get me wrong, there are companies already implementing these ideas into their projects, one of them is - core developer team—whose motto is “crypto is easy”. That is why their offerings are easy to use, intuitive, and built for the mainstream. But in order for the entire industry to grow, this initiative should be taken by the majority of projects and industry players for mass adoption of the technology to become a reality. Broxus Everscale’s There is plenty of innovation left for the decentralized finance sector. If you believe that there is too much competition in the sphere with tons of projects doing the exact same thing, you may want to take a look at all other industries. This is a prevalent issue within the entirety of the tech industry, though this could be a good thing. Competition can be a great incentive for innovation. Those who come up with something new and truly unique will secure a spot in the future of finance. While this specific period isn’t the best for attracting investment, it’s only a matter of time until DeFi becomes a widely-utilized technology in the financial sector.

DeFi’s Rise to Shame: Its Problems and How to Fix Them

Rise to Shame de DeFi: sus problemas y cómo solucionarlos

DeFi's Rise to Shame: ses problèmes et comment les résoudre

डेफी का उदय शर्म की बात है: इसकी समस्याएं और उन्हें कैसे ठीक करें

DeFiの恥への高まり：その問題とその修正方法

A ascensão do DeFi à vergonha: seus problemas e como corrigi-los

DeFi trở nên xấu hổ: Các vấn đề của nó và cách khắc phục chúng

DeFi 的耻辱崛起：它的问题以及如何解决它们

Ever since rebase tokens came to the forefront with OlympusDAO, there have been many forks and projects that are using this clever Defi mechanism. This space has grown so much, to the extent that Coingecko has a separate category for . rebase tokens We decided it would be worth looking into this interesting part of the Defi ecosystem. OHM Forks Rebase and Bonding Mechanisms Overview – Top 10 Token Projects In understanding the prospective tokens that may end up defining the further exploration of the Defi 2.0 ecosystem, this list comprehensively approaches the examination and review of these projects from the angle of rebase and bonding mechanisms. 1. OlympusDAO Rebase Mechanism- User-controlled Network Talk about a Defi that grows and impacts based on every participant’s input; the token project is participation based. Users stake their OHM and benefit from a network that grows in line with OHM emissions. Olympus When the “index” increases at every rebase, the sOHM and gOHM supply and distribution vary. The Olympus token project rebase mechanism (as illustrated below) entails users staking their OHM for a reward to earn them eligibility in navigating the network. The Olympus token project is better explored by understanding the staking and the reward rate. We look at the relationship between staking and reward rate to understand better how the Olympus project is faring and what users stand to gain as they stake, considering the rebase and bonding mechanisms. Relationship Between Staking and Reward Rate In understanding the level of OHM staking rewards, users play by the navigation of the reward rate. There is no manipulation; the reward rate is codified by eligible participants who make up the community. The level of OHM staking rewards is determined by actively participating individuals (via the OIP-18 vote). The reward yield is among significant elements of the users’ participation. In simpler terms, the Olympus project reward depends on how many other individuals stake their OHM. token’s mechanism as it revolves around It gets interesting. When a more significant number of participants stake their OHM, the reward yield declines, and the opposite occurs when more users stake, causing an increase in the yield. This expresses a unified network system, and the platform supports the growth process, presenting the current sOHM (staked OHM) as an illustrative annual percentage yield (APY). This is logical considering the steady daily rebase nature of sOHM (about every 8 hours). It further aligns with the interest-oriented nature of the Olympus DAO rebase mechanism. Let’s get practical. The diagram above further explains the APYs of the Olympus token project, supporting the project’s emphasis on rebase rate, number of stakers and existing supply as part of its growth mechanism. However, as is with every token, users should keep in mind that calculations are floating and current rebase rates are not a guarantee of stake returns. Since a rebase occurs three times daily, users’ reward raises to the power of 1095,  following the annual percentage yield. Participants of the network will find it exciting and anticipate yields of a process that requires a merger of results from the number of OHM distributed to the staking contract and OHM total supply, as illustrated in the equation below: 2. Ampleforth Rebase Mechanism- Elastic Protocol The comes as an OHM Fork whose rebase mechanism is sends a sparkle. The AMPL is based on contraction and expansion. Ampleforth project The protocol flows with price and targets the CPI adjusted 2019 US dollar, deciding the number of tokens in user wallets based on price fluctuations. AMPL, as its short form, we acknowledge its slight similarity to , with the only exception being that the number of tokens in user wallets increases as demand rises and decreases when there’s less demand. Bitcoin A look into the token project’s expansion and contraction protocol helps to understand this better. Let’s look into it: AMPL Expansion Users are mandated to keep an eye on the token’s target as it is its major deciding factor for market prices. It is simple; when the price exchange rate of the token rises over 2019 USD, it signifies higher demand than supply in the market. In response and as is of a typical interactive DeFi system, the AMPL protocol automatically and proportionally calculates the amount of tokens in the user wallet, impacting the token’s worth. AMPL Contraction The AMPL’s contraction protocol has the price per AMPL returning to the CPI adjusted 2019 dollar when the market signals excess or limited supply, this presents the difference between the two as users’ experience of the AMPL’s deviation. This scenario is unlike the expansion, having holders of the token experiencing supply volatility. However, despite this unpredictable yet intriguing scenario, contracts denominated using AMPL will be stable long-term. Instead of eliminating demand volatility, the Ampleforth protocol transfers it. Consequently, it offers holders unique benefits of not requiring collateral, treasury, market-maker or buyer-of-last-resort to fall back to its long-run target. It is among OHM Forks with a rebase mechanism for . future DAOs 3. Redacted Cartel – Innovative Bonding Model The has one of the most interesting rebase mechanisms. It entails users being introduced to a new bonding mechanism based on taxes. Redacted Cartel OHM Fork There is no hint of the possibility of potential users doubting this innovation that provides a new model of PCV accumulation that solely utilizes taxes. The blockchain-oriented tax model brings to light the DAO’s shift from the traditional bonding mechanism. It revolves around governance, in similarity to the OlympusDAO project. Moving away to the new mechanism in the second half of this year, PCV accumulation will be based on Harberger taxes, improving the allocation efficiency of assets. It gets interesting. But it is what potential explorers will know and agree to; paying a higher tax (for an asset) than its current owner. In this case, the current owner is forced to sell to the highest bidder. By “assets”, we look at stable protocols utilising Convex Finance (CVX) for governance power. Long overdue for the DeFi ecosystem, this project has a productive model that allows a different growth mechanism for PCV. Replacing the bonding mechanism with exotic yield markets, a more competitive system comes alive and is oriented around “staking slots” for people to explore Curve ecosystem tokens. Conceptually, ownership over the Redacted treasury involves staking slots. A up PCV and the Redacted treasury from proceeds of purchased staking slots. system where those holding BTRFLY maintain a digital common’s governance and build As is typical of a mechanism, details are subject to change. However, the dominating logic is to bring about a two-week voting period where the DAO will solely navigate and define the Pulse Height and other numbers, as illustrated in the image below. It’s practically interesting as users are expected to stay on the Pulse Height and watch the starting block reward of the pulse to know when it is met. Once met, users can then begin to own empty staking slots with burn rate, incentive rate and price/BTRFLY, as the image below illustrates. For the Pulse duration, staking slots will always be available for acquisition by other users. However, as is with this model, slots are acquired by anyone willing to pay a higher burn rate than the current slot owner. The image below gives an illustrative angle. For the entire Pulse duration, staking slot owners get their OHM emissions which facilitates quick PCV provision by quadratically dropping within the Pulse duration (2 weeks). Consequently, slot owners who still hold their stakes at the conclusion of the Pulse period will receive first slots in the coming round. The image below illustrates this governance mechanism further. Meanwhile, you will notice that there is no explicit mention of a defined rebase mechanism for this project. However, we see reasons to assume that it is similar to the Olympus DAO in their joint exploration of a people-centric governance model. 4. Wonderland – Risky, But Proactive Treasury Management System Coming as the first project to warrant cautious advice to potential users, the token project deploys capital at the very early stages of projects. Wonderland Users may want to be cautious, but will find its advanced treasury management strategies fascinating in the DeFi ecosystem. The project explores a cross-chain reserve currency protocol to introduce a new currency exchange system in the DeFi ecosystem. This presents it as more active, although riskier than its counterparts. We look to an advanced and innovative treasury management system that empowers crypto and web3.0 protocols while maximising capital growth and fostering wealth generation. It’s not all risky after all. Users’ actions are described by minting and not bonding. The Wonderland website allows users to mint their TIME tokens to profitably sell assets in return for discounts on TIME tokens. Mint page However, as some others in the DeFi ecosystem view it, the Wonderland minting process maintains significant similarity to a bond purchase on the unique and market-leading Olympus DAO. 5. TempleDAO Rebase Mechanism- Intrinsic Value Growth TempleDAO Rebase Mechanism The project has the Safe Harvest process at its core and targets value growth in its rebase mechanism. TempleDAO project Safe Harvest entails minting new Temple growth. tokens while maintaining intrinsic value We find this interesting, though. Because the strategy remains amusing; where the system causes a growth spike in the intrinsic value by minting less than it can mint. This evolves as new FRAX emerge in the treasury. The Temple then periodically calculates to to create a dilution and decide the number of mints and resultantly grow the intrinsic value. Let’s get practical; Say the treasury holds $1000, and Temple has a fully-diluted supply of 1000. In line with its rebase mechanism, this goes to say the intrinsic value of the token is $1000/1000, or $1. Switch the narrative; say the Temple is worth $5, and a buyer just brought in $100 of FRAX to the treasury. Since $100 equals $5, 20 Temple (100/5) is minted and awarded to the buyer. Having $80 left, if it decides, the treasury can mint additional 80 tokens. However, going beyond this threshold will have the intrinsic value decreasing. Since the less it mints, the higher the intrinsic value, the Temple gains more value by minting less than 80, in this case. Various pools receive distributions from the minted tokens when a buyer brings a new FRAX. However, the treasury mints 20% less than the maximum it can mint when this purchase occurs. This remains a strategy to fuel a mechanism that offers: 43.75% to the staking rewards pool for distribution to stakers over time. 12.5% to the bonus rewards pool, to be distributed to Templars participating in FAITH 18.75% to be added as liquidity to the LP pool 25% to the DAO for funding development ‘Temple Defend’ – Bonding Mechanism This project further explores the DeFi ecosystem and allows traders to buy with the option of selling their tokens to the protocol at a floor price (IV). This mechanism entails traders keeping a watch on the token to know when the cool-down period is. Then they stake their tokens with the protocol with the Temple defend in effect. However, after this activity, traders are allowed and not obligated to sell at the floor price (IV). The system gives a new life to the bonding system where traders could buy Temple even at lower than the floor price, sell the tokens to the AMM for a deal, yet still retain the grace to redeem the tokens from the Temple protocol after the cool-down period. They target the Temple’s increase in the short-term, and a win-win situation emerges for the trader and the protocol. 6. Klima DAO – The Climate Change Positivist maintains a primary reward distribution based on staking. It looks to have this method as its primary protocol mechanism for value acquisition. KlimaDAO The protocol mints and distributes tokens to stakers when there is an excess of reserves per token. The reward rate (as was significant with the OlympusDAO), is a controlling factor in the amount to be minted and distributed to stakers. We call the Reward rate a rebased supply %. However, this development could heavily slow the supply expansion pace of the protocol, with a detrimental backlash. This is so because when the Carbon Custodied (CC) of the treasury is higher than assets needed as backing for the KLIMA, rapid expansion should be avoided as it causes a price fall. An sKLIMA rebase occurs to keep both the KLIMA and sKLIMA in line. The development accrues since the treasury deposits KLIMA into the distributor contract, which then deposits it in the staking contract. This mechanism brings about more KLIMA than it breeds sKLIMA, causing the need to keep them in parity, as we mentioned. The user then owns a larger percentage of the portion of rebase since all KLIMA is staked. This reward illustration pictures it further: This translates to AKR(Annualized KLIMA Rewards): The DAO seeks to add value to an evolving green treasury and foster liquidity for vital environmental assets, similar to TempleDAO’s win-win situation. KLIMA DAO – Bonding The KLIMA DAO bonding protocol leverages the intrinsic value of KLIMA to give a price quote and further decides each bond’s premium charge: Although the KLIMA DAO doesn’t match the potential of unique and appealing projects like the Olympus, it gets interesting. The premium charge depends on two variables: the system’s overall debt and an external controllable variable. This links price to outstanding bond numbers, as seen in the illustration below. In earnest, demand (more bonds) determines the premium and discount ratio, and this can be vice versa. Carbon Custodied (CC) refers to the tokenised carbon offsets held in the treasury reserves. For each KLIMA token minted, there are some carbon offsets in the treasury. Stakers can then look to rebase rewards and expect payment when there are any excess reserves above the 1 tonne/KLIMA Intrinsic Value. The formula below illustrates expectations from the pool as offsets are bought and sold. This becomes so because an LP share fluctuates in value in terms of offset tonnage. It becomes logical to mark it down to relay the reality that all the carbon will not be resigned to the pool in the highly volatile market. Where K is the constant product of the LP pool. It’s important to know that the KLIMA token is backed by a substantial average of the price and quantity of several carbon assets, resulting in Carbon Custodied. It’s not serious, but it’s worth the attention because Naked carbon assets representing one tonne of carbon per token (BCT, MCO2etc) contribute a carbon custodied value of 1 tonne per token. 7. Snowbank – Auto-compounding Shorts for SB, Snowbank was a Wonderland . project built on Avalanche blockchain The project had achieved a few landmarks, including supporting auto compounding and facilitating cost-effective stable asset swaps. Among innovations of the SNOB project were Lava,  which brought liquid Avax staking to the blockchain. However, the project failed and went into redistribution. 8. Spartacus Rebase Mechanism – Backing for Intrinsic Value The token project earns a space on the Coingecko list. Emerging in the ember period of 2021, the token comes as one of Olympus forks on fantom. Spartacus However, similar to the KLIMA DAO, SPA will also back tokens. It bases governance on treasury growth via bond purchases and liquidity fees that provide backing and offer intrinsic value. 9. Rome – MMORPG Gaming Governance Orientation maintains a similar mechanism as the Olympus DAO. The project employs a gaming system to serve as a reserve currency. Rome DAO Exploring gaming for governance, in Rome’s case, staking takes place over Moonriver, the first layer of the Polkadot blockchain on which it is built. 10. Invictus – Dynamic Rebasing implements Dynamic Rebasing to create a new systemic approach to having a decentralised reserve currency. Dynamic Rebasing is the rebasing mechanism where every contract block adapts to the treasury size. Invictus DAO Dynamic rebasing occurs rapidly and has a pretty fast adaptation to the treasury development.  When the treasury increases, say you stake  (◎,◎) = (3,3), your staked balance increases almost instantly. The OHM Fork’s rebasing mechanism continues to be time sensitive as it solves bothering issues like larger holders of the token selling directly after a rebate. The rebase impacts by putting downward pressure on IN prices in concentrated windows after an 8-hour period. It means rewards get growing contributions across every time frame. Invictus stalkers will be glad to know and boast of their stakes being processed and auto-compounded almost immediately. This goes to say staking and compounding the Invictus token will work harder for stakers, contrary to conventional platforms such as the OlympusDAO. Conclusion With focus given to OHM Forks rebase and bonding mechanisms, this post gave an overview of the top rebase tokens on Coingecko. It is a further acknowledgment that pretty fast. DAOs are taking the stage Innovation, uniqueness and appeal are key attractions, and the Olympus DAO remains the most prominent project in this regard. Being the first market mover, most other projects are forks of it. If you want to learn more about topics such as blockchain, tokenomics, and DeFi make sure to ! get in touch Also Published here

The Rise of Rebase Tokens in DeFi

What is a decentralized index? If you know what an ETF in traditional finance is, then you would understand how decentralized indices work. An exchange-traded fund (ETF) is a type of pooled investment security that tracks other assets, such as equity indices, bonds, and commodities. An ETF is typically a collection of multiple assets and can be traded on an exchange like a stock. DeFi indices allow you to invest in crypto assets without monitoring your positions all the time. Also, it is the best and most popular way of getting diversified exposure to the crypto market. To invest in a DeFi index, you buy index tokens that represent your share of the index fund. Your investment will appreciate or depreciate according to changes in the price of the index token. Index providers IndexCoop As of 8 September 2022, decentralized indices have a market cap of $87 million. The biggest player in the sector is Index Coop founded by Set Labs Inc. in 2020 October. As of this writing, Index Coop has 6 indices: DPI (DeFi Pulse Index), GMI, BED (Bitcoin, Ethereum, DPI), MVI (Metaverse Index), JPG, and DATA. DPI, the index with the largest market cap, has been developed by Index Coop and DeFi Pulse, a DeFi data provider. DPI is a capitalization-weighted index containing 13 tokens at the moment. It has been designed to track the performance of DeFi projects which have “significant usage”. To be included in the index, a token should meet several requirements across four dimensions. For example, the token should be available on the Ethereum blockchain, and one should be able to predict its supply over the next five years. Some underlying tokens of DPI are UNI, MKR, AAVE, and SNX. Bankless DeFi Innovation Index (GMI) contains early-stage tokens which promise high growth but haven’t yet reached the level of blue-chip DeFi tokens yet. Some of the GMI components are Olympus DAO, Convex Finance, and Alchemix. BED is an equal-weight index containing, presumably, the three most important members of the digital assets industry: Bitcoin, Ethereum, and DeFi. It allows you to get passive exposure to the largest cryptocurrencies. If you like the idea of Metaverse and want to invest in it but don’t know exactly which token to choose, MVI is the index for you. It focuses on the tokens which are in one of the following categories on CoinGecko: Non-Fungible Tokens, Entertainment, Virtual Reality, Augmented Reality, and Music. MVI is composed of the tokens of the premier Metaverse projects, such as Sandbox (SAND), Decentraland (MANA). If you love blockchain games, then this is the index you would consider buying because it contains Illuvium, Yield Guild Games, and Axie Infinity. If you want to get exposure to NFTs, you should consider JPG index. JPG contains tokens of popular NFTs, such as PUNK and XMON. The Web3 Data Economy Index (DATA) provides a passive exposure to the Web3 data economy. The index is composed of data-centric protocols, such as The Graph (GRT), which is an indexing protocol for querying data; Chainlink, which through a decentralized oracle network, allows blockchains to securely interact with external data feeds; Livepeer, a “decentralized Youtube”, is the first live video streaming network protocol that is fully decentralized. IndexedFinance Another big player in the decentralized indices sector is Indexed Finance. Indexed Finance develops passive investment strategies for the Ethereum network. As of 8 September 2022, the protocol has three indices: Degen, NFTP, and ORCL5. Degen is the index composed of Ethereum projects that are believed to have “significant room to grow”. Some of its components are REN, an open protocol built to provide interoperability and liquidity between different blockchain platforms; 1INCH, a DEX aggregator which helps users discover the best trade prices for tokens; WOO, a deep liquidity network connecting traders, exchanges, institutions, and DeFi platforms with democratized access to the best-in-class liquidity and trading execution at lower or zero cost. Like JPG and MVI indices on Index Coop, NFTP gives passive exposure to NFTs and the Metaverse. Other than SAND and MANA already mentioned, the index contains tokens of well-known projects, such as GALA, ENJ, RARI, etc. ORCL5 focuses on decentralized oracle networks, protocols built to bring data from the external world to the blockchain. Oracles are systems that by leveraging multiple data sources connect off-chain data for use on blockchains. The leader in oracle protocols is Chainlink which is 58% of the ORCL5 index as of now. Some of the remaining components of the index are UMA, an optimistic oracle built for Web3; BAND, a cross-chain data oracle platform; ORAI, the world's first intelligent and secure solutions for emerging Web3, scalable Dapps, and decentralized AI. Conclusion In conclusion, decentralized indices give you passive exposure to crypto assets through various themes, such as DeFi, Metaverse, NFTs, and oracle networks. By getting diversification you’ll decrease your risk. But don’t forget that this will also limit your gains because instead of making concentrated bets on 1-2 tokens, you’ll invest in the basket of tokens some of which may not perform as others.

Decentralized Indices

When it comes to investing in cryptocurrency, narratives often play an important role in identifying promising investment opportunities. In 2017 we had Initial Coin Offerings (ICO's), Ethereum Killers (NEO, for example), Interoperability (Wanchain & Icon), and zero transaction fees (IOTA & Nano/Raiblocks). From 2020 - 2021 Decentralized Finance (DeFi) was the new narrative, bringing interest to cryptocurrencies such as MakerDao, Uniswap, Avalanche, etc. Additional cryptocurrency narratives in 2021 included: Non-Fungible tokens/NFTs (Enjin, Bored Ape Yacht Club, Galactic Geckos, etc.) Meme Coins (Dogecoin, Shiba Inu, Floki Inu, etc.) Algorithmic Currency Protocols (Olympus DAO, Titan Finance, Wonderland, etc.) Binance Smart Chain "Moonshots" (Safemoon, for example) Metaverse & Crypto Gaming (The Sandbox, Decentraland, Axie Infinity, Illuvium, My Neighbour Alice, etc.) Savvy investors caught on to these narratives early and made some spectacular gains on their investments. However, this doesn't mean you should always chase the next big narrative. In fact, I believe it's best to focus on the fundamentals behind a cryptocurrency instead and build a long-term position. But at the same time, it's important to understand which narratives are attracting the most attention since the money usually follows soon after. Once you know what the next narrative is, you can research cryptocurrencies within that narrative and build a position with the projects that have a good team and fundamentals behind them. One narrative that is attracting a lot of attention right now is ZK-Rollups, and we'll be looking at this technology in this post. We'll also look at three cryptocurrencies which use ZK-Rollup technology, with a secret, bonus cryptocurrency that is related to one of the platforms mentioned. Keep reading until the end and see if you can find it. If you decide to invest in ZK-Rollup related cryptocurrencies , I recommend using to easily buy and sell cryptocurrency, including the ones mentioned in this post. Kucoin Kucoin is available worldwide, including the USA. ZK-Rollups: Explain Like I'm Five (ELI5) Explained simply, a ZK-Rollup is a smart contract that takes hundreds of transactions off the main blockchain and bundles them into a single transaction. It then sends a validity proof back to the main blockchain. This reduces the amount of data being sent through Ethereum's main blockchain (Layer 1), enabling faster and cheaper transactions. For a more detailed explanation on ZK-Rollups, read the next section or skip ahead if you already understand how they work. What are ZK-Rollups & how do they work? Zero-Knowledge Rollups (ZK-Rollups) are smart contracts that scale the Ethereum network by processing multiple transfers off the main blockchain. ZK-Rollups work by taking hundreds of transfers off-chain and combining or "rolling" them up into a single transaction. It then submits a SNARK (succinct non-interactive argument of knowledge) back to the main chain as proof of validity. Validating a block with a ZK-Rollup is faster and cheaper since less data is included. ZK-Rollups are being developed for Layer 2 construction to increase scalability. Another option being developed is one of the options Optimistic Rollups. If you want to see a more detailed explanation on ZK-Rollups and Rollup technology in general, I recommend the following resources: ZKP Science Layer 2 Rollups - Ethereum.org ZK-Rollups - EthHub.io 3 ZK-Rollup Platforms With Their Own Cryptocurrencies At the time of me writing this, there aren't many ZK-Rollup-based platforms with their own native token, hence why only three are included in this article. Loopring (LRC) Loopring (LRC) is a ZK-Rollup Layer 2 solution that allows for high-throughput, low-cost trading and payments on Ethereum. It aims to allow anyone to build non-custodial, order book-based exchanges on Ethereum by leveraging zero-knowledge proofs. With ZK-Rollups, Loopring claims its exchanges can offer faster settlements for traders. Instead of settling trades on the Ethereum blockchain directly (like other DEX's do), ZK-Rollups enable Loopring exchanges to complete computations off-chain. This reduces the number of transactions being submitted to the Ethereum network, increasing speed and reducing costs for traders. Loopring has its own token (LRC), which you can find on . US based investors can use to invest in LRC. Binance Kucoin zkSync zkSync is a Layer 2 scaling solution that offers cheaper and faster transactions than the main Ethereum blockchain (Layer 1). It uses ZK-Rollup technology to process transactions off the Ethereum blockchain while still maintaining its security and finality. zkSync was developed by Matter Labs which received $50 million in funding from investors including Andreessen Horowitz (a16z), Crypto.com, Blockchain.com, Aave, and more. zkSync's benefits include: Low gas fees: Gas fees are equal to 1% of Ethereum gas & cheaper than using optimistic rollups High speeds: 2000+ transactions per second (tps) compared to 14tps on Ethereum Security: Secured by the main Ethereum blockchain Frictionless transfers: Easily move your crypto between Layer 1 and Layer 2 without delays Censorship resistance: You can move your assets back to Layer 1 at any time zkSync does not currently have a native token, but I recommend following their social channels if you don't want to miss out. they're planning on releasing one. Immutable X (IMX) Immutable X is a Layer 2 scaling solution for trading Ethereum NFTs. It uses ZK-Rollups to enable instant trade confirmation, over 9,000 transactions per second and zero gas fees. Since Immutable X is a Layer 2 for Ethereum, ownership of NFTs isn't affected since it inherits the security and finality of the Ethereum blockchain. by the company behind God's Unchained, a Free-to-Play NFT trading card game similar to the popular Hearthstone. Immutable X was developed The Immutable X marketplace will be used to trade God's Unchained cards initially, but as time goes on, they intend to open up the marketplace to assets from other games. Benefit's of Immutable X include: Zero gas fees for peer-to-peer trading. Set your own trading fees. No custodial risk; users keep their private keys. Up to 9,000+ TPS. Not a centralized sidechain. Secured by Ethereum. A true Layer 2 inheriting security of Layer 1. Any NFT that is created or traded on Immutable X is 100% carbon neutral. One of Immutable X's huge benefits is the zero gas fees for trading NFTs. This simplifies the process of trading NFTs between users, making it easier for mass adoption. Immutable X looks very promising, especially since it covers three major narratives in the cryptocurrency space: ZK-Rollups, NFTs, and Gaming. It's also backed by an NFT trading card game that has the potential for mass adoption. As the Immutable X exchange matures and attracts assets from additional game developers, I can see this project becoming huge. Immutable X has its own token (IMX), which you can find on As a bonus recommendation, you can find God's Unchained cryptocurrency (GODS) on Kucoin too. Kucoin. Conclusion You can find Loopring (LRC) on . If you live in the USA, you can find it on Kucoin. Binance Immutable X (IMX) is available on along with God's Unchained (GODS). Kucoin zkSync has not yet released a token for their platform yet, but you can to stay updated on a release date. follow their social channels I hope you enjoyed this story; feel free to check out the useful resources below: Good exchange to buy Bitcoin, Ethereum, Polygon (MATIC), Polkadot (DOT), Binance Coin (BNB), and more from anywhere in the world with cash. CEX Exchange — Available worldwide If you live in Europe, one of the best exchanges to buy cryptocurrencies with cash, including Bitcoin (BTC), Ethereum (ETH), Polygon (MATIC), and many more. BitPanda — Only available in Europe, Canada, and Mexico - Great exchange where users can trade over 750 different cryptocurrencies, including new, low market cap cryptocurrencies. Kucoin Available worldwide, INCLUDING the USA. - Exchange where users can trade over 500 different cryptocurrencies. Binance Available worldwide apart from the USA - Secure, buy and grow your crypto assets with the world's most popular hardware wallet. Ledger Wallets Buy a Ledger wallet here. You can also keep up with me on and if you need a content writer for your website, publication, project or campaign, contact me on cryptonitewrites@gmail.com. Twitter

ZK-Rollups: 3 Cryptocurrencies to Explode in 2022 & 2023?

ZK-Rollups: ¿3 criptomonedas para explotar en 2022 y 2023?

Decentralized approach and XDAO Decentralized autonomous organizations (DAOs) need a clear product management process to provide trust. One of the sensitive points for this type of startup is capital management. Every DAO needs a trust account in which to store its assets. However, current decentralization of governance for crypto and IT includes geographic decentralization, where company management and token holders live in different countries — including the CEO and developers. And many so-called DAOs have a risk of manipulation, including theft, by attackers or their own management (rug pull). At the beginning of 2022, the management of experienced an exit scam, proving that trust and understanding inside a DAO team may not be enough to prevent risks of fraud. Fortress DAO The Fortress DAO case Fortress DAO is one of several crypto projects that tried to repeat the success of Olympus DAO. For the time being, Olympus and its ponzinomics created great results in OHM token price growth reaching $1,500, but then it plummeted to under $100. Even some experts still think that OHM has strong potential, but that opinion doesn’t apply to many other projects that use similar mechanics. So the problem with such types of DAO is that they use aggressive DeFi mechanics that are similar to pyramid schemes and their decentralization is more a slogan than reality. Fortress DAO is an Olympus DAO fork on the Avalanche blockchain. Formally, It had $14 million in its treasury. But in reality it didn’t, since the DAO and its members had no real governance. The control over funds and project code remained in the hands of its team. These funds were used by Fortress CTO Avraham Eisenberg to launch his own project — and no one could stop him. The situation with Fortress proves that DAO is not a slogan and that decentralization and community governance must be real. However, if you organize a project in advance as a true DAO, all participants know that the agreements will be respected. Members need to understand that they are joining a real DAO that is decentralized, transparent and controlled by the community. To achieve this, it is important that the community has control and information about the activities of the project developers and their ability to control the DAO. At the very least, if a protocol has a proxy or can be controlled and changed by developers without community permission, it should not be subordinate to a single developer. What is DeFi Project Management? Talking about the DAO and DeFi, we should understand that they both use blockchain and have decentralized infrastructure. The creation and management of this infrastructure is a complicated thing as it needs integration of existing blockchain solutions and/or the creation of proprietary DAO tools. Project management of DAO and DeFi is about asset storage and management and the creation of a proper decentralized infrastructure for this purpose. In the DAO case, this mainly consists of community treasury governance and smart contract governance. After creation of the DAO and collection of funds, the community treasury should be fully transferred to DAO ownership, with multisig wallet governance by the DAO. Also, smart contract governance should be transferred to DAO control and governance tokens (GT) distributed to DAO members. We can distinguish the following steps in the creation of a DAO. First stage In the first stage of DAO development, . At this point, there is a minting of GT tokens to the entire team responsible for the project, in equal shares for the head and in smaller shares for the rank-and-file employees of the project. GT tokens can only be held by the founders Then (i.e. the transfer of all project tokens and also additional funds raised from investors to the address of the organization). the whole project treasury is poured into the DAO Finally, . From now on, all votes on protocol changes and the use of funds pass from the hands of individuals, developers and CEOs to the whole team. This ensures that the interests of all parties will be respected. the project’s smart contracts are transferred to the DAO Let’s take an example. An important parameter in DAO management is the quorum value, which indicates what percentage of DAO tokens must take part in a vote for a decision to be made. Let’s say the quorum is 81%. 100 votes are distributed in our example DAO as follows: CEO — 20 GT CTO — 20 GT CBDO — 20 GT COO — 20 GT Lead analyst — 4 GT Business developer — 4 GT Senior Developer — 4 GT Developer — 4 GT Community manager — 4 GT This means that if all members with 20 GT and one of the five smaller GTs vote, the proposal will pass. But if at least one of the managers with 20 GT does not agree with the decision, or all five junior employees do not agree with it, the vote will not reach a quorum and cannot be executed. In the latter case, participants propose a different solution. And any of the team can initiate a vote, which makes the process transparent and allows any of the participants to put forward a proposal. Each of the participants in the project is to some extent responsible for the decision of the issue put to the vote. Note that the large size of the required quorum guarantees the rights of investors, but complicates the decision-making process. And yet, especially when it comes to managing large sums of money and large communities, a high quorum threshold is a great way to maintain control. Community Stage In the second stage of DAO development, the whole community should be involved into the project management. There are 2 types of community voting: Off-Chain and On-Chain. . It is similar to any recommendation mechanism. For example, which project contract update should be released next. In this case, the team should listen to the opinion of the community and begin to develop the update that users voted for. Off-Chain voting doesn’t have a result fixed in code and smart contracts . For example, a decision to send a 1,000 USDT airdrop to a competition participant. In this case, community voting will be followed by the execution of a smart contract to send funds to the user who won the contest. On-Chain voting results are recorded on the blockchain In the case of Off-Chain voting, the DAO creates a cell on the Snapshot and sets up a vote with a project token. These can be completely off-chain votes. In this case, the community with project tokens votes on the Snapshot platform and the result of these votes will be visible to the team and executed by the team in the future. In the case of On-Chain voting, XDAO should be connected to Snapshot to manage decisions on behalf of the community through the XDAO Snap solution (technically the same as ). This solution will be implemented in the near future and will give the community more power over the project. Gnosis However, we do not recommend to allow community make decisions about the treasury and protocol directly. If you still want to connect the community directly to the treasury, limit yourself to electors from the most active members of the community (no more than 5) who will be able to put forward decisions, but whose GT tokens will not be enough to execute decisions on their own. Conclusion Projects need tools for secure money management as it is more difficult to control the activities of an organization and ensure the safety of the protocol for all participants in today’s decentralized world. However, implementing these solutions without third-party expertise and auditing can greatly diminish the community’s trust. That’s why professional support is so important when creating a DAO. XDAO is the tool that can help solve these issues and set up the protocol's project management in the best way. We are happy to support teams and help them set up a DAO over the protocol in the most decentralized way. If you need any help, you are welcome to join our community! DAO is not just a beautiful mark—this is the concept of decentralizing the rights to manage DeFi project.

Stories, News & Mentions about OLYMPUS-DAO

Olympus-dao’s Stories on HackerNoon

Olympus-dao's News & Mentions