TL;DR
- More allocations lead to greater distribution, which in turn creates a better spread of the success of Strong Holder Offerings
- The platform’s aggregate live yield is 350%, but this is felt only by a portion of the stakers as the current model does not effectively distribute the yield
- We are going to shift to a ticket system, with each SHO ticket offering a $100 allocation
- Higher tranches will have wallets winning multiple tickets, and lower tranches will have a wide distribution of many wallets winning 1 ticket
- This also ensures that SHOs help launched projects acquire an even greater distribution of tokens
This move furthers our goal of position decentralized funding as the most high-yield frontier in DeFi.
—
1. SHOs Remain Incredibly Successful
Due to the wider market downturn, launchpads have subpar performance. A significant number of launches have either a negative ROI or an ROI that hovers close to 1x.
Even after May 12, which marked the peak for the altcoin market, DAO Maker’s Strong Holder Offerings remain strong.
Additionally, most SHOs have one or more 100%+ growth days within the first week after launching.
Our standard remains quality over quantity.
2. Greater Distribution
As discussed in a previous article, decentralization of funding is a crucially missing variable in DeFi. It also generates far superior yield when compared with lending or liquidity protocols.
- The DAO Vault’s aggregate yield is superior to most DeFi projects
- A crucial missing element is the importance of distributing the yield
Assessing Yield
At present, tranche 1 requires just 500 DAO, valued at approximately $1,100. At $500 allocation per win, and taking the average yield since the market drop (7.4x current ROI), SHO allocation winners who hold made $3,200 on a $1,100 stake.
- This is almost 3x return on a stake (not expense).
Given that the ATH ROI in the same time period is 26.5x, the max possible yield is in fact $12,750.
- This is almost 11.6x return on a stake (not expense).
Whether accounting with current ROI or ATH ROI, the yield is extremely strong even with a single SHO win. We recognize that there’s need for better distribution.
The yields on the DAO Pad are exceptional, but not well distributed. A shift to $100 allocation per winners makes the success of SHOs more accessible.
DAO Pad’s shift to a ticketing system ensures that more people win in every tranche, while still ensuring that the winning chance increases as the tranche goes up.
The ticketing structure will go live soon, with precise details on tickets per tranche.
Twitter: twitter.com/thedaomaker
Telegram: t.me/daomaker_ann
