Venture Vaults : DAO Maker’s Expansion to DeFi
Current DeFi standards are mostly limited to lending and trading, but finance encompasses much more than this. Funding is in fact a primary element of traditional finance.
An irony of many DeFi projects is that they are either:
- primarily funded by a handful of VCs
- offer public tokens at a rate that is often 10x+ the price VCs bought at
Funding is often excluded from the DeFi narrative as it goes against the goals of the narrative writers, early funds that control major stakes in DeFi projects like Compound.
Yearn Finance (YFI) popularized farming about a year ago. About a year in, Yearn has billions in deposits which it distributes across DeFi projects.
This is a synergistic relation: DeFi projects acquire adoption and liquidity through Yearn’s promise of automated rates to its users.
A significant portion of crypto users now seek revenues opportunities. Yet, the model remains static.
Since the launch of Yearn, countless other projects have been launched across chains. They all seek to replicate YFI’s model. We are evolving the model.
Presenting the Venture Vaults
Disrupting our own model: stake either DAO or stablecoins to access Strong Holder Offerings.
This enables SHOs to tap into the massive market of crypto users who only want stablecoins. It allows the DAO Pad to tap into the massive number of stablecoin farmers in the industry.
Venture Vaults will allow stablecoins to be locked for either 3, 6, or 12 months. This will provide stablecoin stakers to earn DAO Power, just like DAO stakers. However! The DAO Power from committing stablecoins will be sharply less than engaging DAO of equal USD value.
- Committing 5,000 DAO (worth $10,000) earns 5,000 DAO Power
- Committing 10,000 USDC may earn only 1,500 to 2,500 DAO Power
- The exact discount on DAO Power of stablecoins is still being considered
- Stablecoin stakers’ funds would be deployed to farms.
- All cashflow will buy DAO on the market, creating constant buy pressure for DAO tokens (from the stablecoin stakers).
- Some of the purchased DAO will be burned, and rest will be given as to stablecoin stakers.
- The average ROI on SHOs makes them in fact the best avenue for rates, far ahead of any main operator like Yearn Finance.
- Despite the recent market turndown, SHOs continue to do well, proving their long-term sustainability.
- Farm products have hit record lows, making ample hunger for new opportunities like Venture Vaults.
- Venture Vaults open SHOs to a million new users, with billions in $DAO power.
- A larger and more diverse user base also makes the platform more attractive to developers, furthering our launch flow (which is already often booked 4 to 6 weeks in advance).