Vaults Evolve DAO to New Heights !

H. S.
2 min readJun 28, 2021

There’s more $20 billion across DeFi and CeFi apps in stablecoins. There’s over a million people who are participating in crypto solely for earning USDC/USDT, and billion-dollar products like Yearn, Curve, and Celsius are capitalizing on this.

Strong Holder Offerings are disrupting venture capital, an often overlooked element of DeFi. SHO participation is growing rapidly, but the rate from SHOs are significantly higher than rates on any competing opportunity.

Note the image below.

The annualized value of SHO earnings is ~350% more than the value staked in the DAO Vault!

Compare this with apps like Celsius, where rates are at 10%, or even with Curve’s max current rate of 42%, which mandates locking CRV tokens for 4 years.

  • The two primary markets in crypto are trading and lending.
  • Venture participation is still largely by funds.

Yet, venture participation is staggeringly more profitable than the trading and lending segment. The current SHO model, primarily for committed DAO and engaged liquidity tokens, eludes to the largest retail participation in the industry: farming.

Venture Vaults take SHOs to a huge new market, in a format they like:

  • Commit stablecoins
  • Earn

Major Positive Step for the DAO Token

Allowing stablecoin committed to access SHOs is a HUGE VALUE add to the DAO token.

The design of Venture Vaults is that:

1. Constant Demand for DAO

The rate generated by stablecoins is converted to DAO Tokens by buying on the open market.

2. Reduction of DAO Circulation

DAO bought on the market is given to stablecoin stakers as rewards, but stablecoin committed is for period of 3, 6, or 12 months, and hence the DAO tokens are taken out of circulation for many months, and even a year.

3. Reduction of DAO Total Supply

Before the DAO bought on the market is deposited to stablecoin stakers’ rewards, a percent of it is deducted as fees. This is burned, thereby permanently reducing DAO supply.

4. DAO Token Remains Privileged in the Ecosystem

Committing DAO tokens would earn 2x or more DAO Power, compared to stablecoins, with the added value of receiving airdrops, having the upside of the token, and soon… benefitting from the supply reduction provided by stablecoin stakers.

Summing Up

Stablecoin have A LOT to gain by accessing SHOs. They can move from earning 10% on Celsius or 42% on Curve (with a 4-year lock), to earning ~350% on the DAO Pad from access to SHOs.

On the other hand, DAO stakers and holders benefit from stablecoin participation as it brings constant buy power, rapid reduction of circulating supply, and reduction of total supply.