Dear Bankless Nation,
It was an exciting week in the BanklessDAO! The DAOpunks pre-sale launched today, October 29 and the energy and excitement behind the launch were palpable. This week we are featuring a deep dive into the Olympus Pro Snapshot proposal, revealing our weekly NFT Showcase, and dropping some Alpha on a new BanklessDAO $GMI Index. Oh, and ETH hit an all-time high during our community call, coincidence? You be the judge.
Catch up with all this and so much more from the past week in the BanklessDAO!
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BanklessDAO Weekly NFT Showcase 🔥
🧑🎨 Artist: RedCrystalDragon
🏦 Auction Type: Open edition
💰 Price: 0.02 ETH
BanklessDAO artist RedCrystalDragon created Halloween themed NFTs featuring a VooDAO priestess and priest. The sale will be announced later this weekend or early next week.
🧑⚖️ Decentralized Law Newsletter! This week, we saw the Legal Guild’s first publication of the Decentralized Law newsletter! Decentralized Law is at a point of intersection between decentralized technology and legal scholarship. With the rapid growth of the web3 ecosystem, it has become imperative to address the legal uncertainty of the DAO ecosystem. To this end, Decentralized Law is a crypto-legal observatory; curating a selection of news, articles, analyses, interviews and discussions around the legal developments that impact the crypto ecosystem.
📈 Perpetual Protocol game: This is an interesting new development! The Perpfect game, a trading competition for Perp v2 testnet pre-selects players and positions them into 10 different teams. The entire prize pool is $3M and has a progressive unlocking structure. What this means is the more people who join the game, the more the prize pool is unlocked. This laddered structure moves from less than 500 participants with a prize pool $750k, up to more than 5000 participants and a prize pool of $3M! It’s not too late to join and the BanklessDAO is currently in third place!
👨🎤 DAOPunks Official Launch!! DAOPunks went live today! The pre-sale will afford 35K BANK holders (or white-listed addresses) the chance to mint up to two DAOpunks! This is an exciting project pushing the frontiers of NFT distribution and mechanics, and BanklessDAO is proud to be helping drive this initiative. There are a total of 1,111 DAOpunks at 0.08 ETH. The Public Mint will be on 10/30 if there are any remaining. Check out the secondary market for a sneak peak! 👀 (🚨 UPDATE! All 1,111 are sold out.)
🚀 $GMI Index Fund: We love the Index coop so much that the BanklessDAO introduced a new index for small-cap DeFi tokens. WAGMI! Special thanks to @0x_Lucas, @BenGiove, and @AlphaLemonade for their work on this. Now we can all enjoy tracking the growth of DeFi 2.0 with the $GMI Index. The proposal is currently open for discussion on Index Coop's proposals forum.
🧠 Crypto Sapiens podcast: Creating frameworks for coordinating resources in DAOs: In this weeks episode Jack du Rose, co-founder at Colony, joins the podcast and speaks about the many interesting ways to enter a DAO. Jack is the artist responsible for the $100M diamond skull for Damian Hirst (the most expensive piece of art ever commissioned). Once he left the jeweler business he embarked on his journey into crypto. This is a very interesting conversation about someone who threw caution to the wind and ran with the tech, and ants!
🌉 Across Protocol: Exciting things are coming out of the team at Across Protocol. They built a new connection for scaling solutions and are now able to facilitate trustless token transfers from roll-up chains to the Ethereum mainnet. Using UMA’s Optimistic Oracle, along with bonded relayers, single-sided liquidity pools on Ethereum can exist without requiring a trusted validator. This creates a very fast, very cheap bridge from L2 to L1 resulting in a near instant transfer of liquidity seamlessly between layers. It would be as if someone conveniently lent you money on L1 for a small fee until the bridged funds arrived, taking on the wait time of the transaction, and earning the fee for the service. It's all set to launch on mainnet on November 8th, so keep a lookout and take advantage of the Alpha! Make sure to join the Across Protocol Discord server and introduce yourself to the team. 👋
👨🏫 Discord Basics Workshop: Discord remains the main operational base for the DAO ecosystem. To make onboarding easier, BanklessDAO is running an event on November 2nd to address the multiple questions our team has fielded from new members about the DAO and how to use Discord. The objectives of this Discord Basics Workshop will cover the differences between BanklessDAO and BanklessHQ, as well as helping members to navigate the technicalities of the BanklessDAO membership structure and Guest Passes. Sign up NOW for the meeting on Wednesday, November 3 at 12am UTC (Tuesday, November 2 at 8pm EDT).
💰 Upcoming Coordinape Round for L1 and L2: This is coming up fast! Coordinape is always a great way to perpetuate our ethos of incentivizing collaboration and rewarding participation. Stay tuned for the announcement next week and join in sharing the love for everyone’s hard work and effort.
Submission period: Nov 4th to November 8th TBD
Coordinape round: November 8th to Nov 12th TBD
🤠 Discord is The Wild Frontier: We are all spending an increasing amount of time on Discord. It's no surprise to hear that there is an overwhelming amount of scammers, bots, and schemes designed to steal user data. This past month the amount of general sneaky-ness of various bots and scammers is at an all time HIGH! Please, triple verify things and people. Don’t click suspicious server invites or links.
🚨 REMINDER: It's very important to keep your account safe by setting up 2FA (2 Factor Authentication). It is the Wild Wild West after all and we need to look after each other on our journey.
Introduction to Olympus Pro
Olympus Pro is a bond marketplace launched by Olympus DAO to circumvent the problem of price volatility with existing yield farms. A bond is similar to a loan– the issuing organization is considered indebted to the investor (not the other way around, folks!)– and involves a fixed or variable interest rate upon the principal amount. The issuing organization is expected to return the investor’s money by a specific date, including the interest that has accumulated. The BanklessDAO x Olympus Pro proposal involves BanklessDAO bonds being sold at the Olympus Pro marketplace alongside the bonds of other protocols to DeFi and DAO enthusiasts.
Understanding Liquidity Pools
Olympus has extensively researched various ways to accrue long-term liquidity. Liquidity can be thought of as the ease with which an asset can be transacted for another; one of the best examples in your daily life would be the fiat currency you use to purchase things: baby diapers, groceries, and chocolates alike.
Today, many early adopters may decide to contribute to a liquidity pool– pools of accumulated cryptocurrencies that can be swapped with one another in exchange for compensation with Liquidy Provider tokens (LP tokens). These LP tokens represent your percentage of contribution to the net available balance present in the liquidity pool. The value of the LP tokens fluctuates with each transaction made through the pool, but they are coded in a way that allows you to hold onto your contributing amount.
Congratulations! You now have LP tokens. Each time someone transacts with the pool, you get the benefit of being a facilitator, but is that all you can do with them?
How Olympus Pro works.
Olympus Pro allows you to trade your LP tokens for bonds, entitling you to access the tokens of the issuing organization at a discounted price, but you lose access to the benefits of being a Liquidity Provider to the pool you contributed to. You may have a vested interest in the success of a DAO, emotional or monetary, and think that you want to be a contributing force to the development and success of a particular DAO. Thus, you exchange your LP tokens with the issuing organization (BanklessDAO, in this case) for the bonds being offered. BanklessDAO receives your LP tokens and increases their liquidity and you get access to BANK, the DAO's governance token, at a discounted price. Olympus will take 3.3% of the bonds being sold for facilitating the exchange and this goes to their treasury, whereas BanklessDAO gets to keep the LP tokens of the investors in their treasury.
Up for a story? 🎃
Let’s imagine it’s Halloween and you enter into a deal with a cotton candy shop (liquidity pool) where you give away some of your cotton candy to the shop; in exchange, you receive special vouchers (LP tokens) that entitle you to some benefit each time someone purchases cotton candy from the shop. In fact, these vouchers can be exchanged for your original amount of cotton candy at any time, but your entitled benefits would be revoked! So you decide to set out into the night and visit a Halloween fair (Olympus Pro) in town. As you are going through sections of shops, low and high, you are smitten by the sight of it: your favorite lollipop shop (BanklessDAO) is here as well! The lollipop shop is willing to give you some lollipops (BanklessDAO bonds) at a discounted price, but only in exchange for the vouchers you have from the cotton candy shop. You really like the lollipop shop and you think having their lollipop is worth more to you than owning those vouchers that entitle you to transactional benefits and your original cotton candy. You make a huge exchange of 100 lollipops (purchasing bonds) and now the lollipop shop takes your vouchers that indicated your cotton candy contribution (LP tokens added to Bankless treasury). As per a prior agreement, the lollipop shop gives some lollipop to the fair officials as well (Olympus Pro fees); in this case, it would amount to 3.3 lollipops.
We provide our partners with infrastructure, expertise, and exposure. Projects only need to bring a token and an objective. ~Introducing Olympus Pro
The BanklessDAO x Olympus Pro proposal puts forth the idea of allocating 5 million BANK per month to target a liquidity of $3 million USD, over a period of 6 months. That equates to allocating 30 Million BANK (3% of the total supply) to achieve increased liquidity. In order to prevent sudden fluctuations of prices, BanklessDAO bonds would have a vesting period of 7 days, which is the period of time an investor would have to wait after having invested to claim ownership of the bond.
Benefits and potential risks
Low liquidity has been a problem for many DAOs, including BanklessDAO. If the liquidity of a token is low, it is similar to holding an asset nobody wishes to trade. Think of it as having an odd candy in your bag for Halloween while all your friends have brand and staple candies! Sure, the candy may be a badge of honor for you, but you cannot trade it amongst your friends. By giving away BANK tokens at a discounted price to our bond-owners in exchange for their LP tokens, we are increasing our liquidity while benefitting from the LP tokens being deposited to our treasury.
The risk with BanklessDAO bonds, as with all DAO bonds, is that they work on an emotional assumption: it is assumed that the investors will be invested enough with BanklessDAO that they will be willing to trade their LP tokens for discounted BANK and forego the privileges associated with providing liquidity to a liquidity pool. The crypto space and DAOs, in general, have been a high-stakes game: you win big, you lose big. The bonds BanklessDAO is bringing forth have a high chance of success given the accelerated pace of the DAO; Olympus, nonetheless, remains in a relatively secure position even if BANK bonds underperform. Olympus would own the tokens of other DAOs in their treasury by facilitating the sale of their bonds; even if BANK bonds perform poorly, it would not be significantly impactful for them since they would have 3.3% of all the bonds of other tokens being sold in the Olympus Pro market place.
🚨 Live Proposals 🚨
🏛 Olympus Pro BANK liquidity bonds: This proposal would implement a bond program for the BanklessDAO to own its own liquidity. Protocol-owned-liquidity is the future of liquidity incentive programs. By implementing a bond program for BANK-ETH liquidity, bDAO can distribute its governance tokens to more users while also accumulating its own liquidity.
The proposed bond program would sell BANK at a discount in exchange for BANK/ETH LP tokens. The discount rate on bonds is achieved by a novel pricing mechanism that allows the market to set the discount. Basically, bond prices are decreased until a bond is purchased which then pushes up the price of the next bond.
⚖️ Proposals in Discussion
🎤 BanklessDAO X Pallet Talent Collective: The bDAO uses Pallet to host our job board and has a new initiative for bDAO called The Talent Collective. In this proposal, L2 members would submit their profile to the Bankless x Pallet Talent Collective via an application. They would then be matched with teams across the industry that are hiring. Similar to recruiters, the DAO would have the ability to earn and add to the treasury when members find a role they love. Think of it like "a list of all people the Bankless Nation would vouch for as professionals” This is a very powerful tool if used to its full potential. Go give it a read and jump in!
🌊 Tokemak and bDAO could have a great partnership: This proposal written by Icedcool looks to solve some of the liquidity issue that $BANK has. Teaming up, BanklessDAO and Tokemak would trade equal values of BANK/TOKE thus diversifying their respective treasuries. BANK holders would also gain access to single sided staking of BANK on the TOKEMAK platform through a Token Reactor, enabling further liquidity for BANK with interest paid in TOKE. This venture would enable quick and efficient deployment of liquidity and add to the health of the bDAO. Also some cool integrations with Olympus Pro are in the works. Read the proposal and the discussion by Lucas: Bankless DAO Pro Member Flow w/ Olympus and TokeMak.
⛽️ Gas Reimbursement: Each transaction in the web3 world elicits gas fees. There is currently a proposal on board for a consensus vote on whether to reimburse gas fees on a seasonal basis or not. This proposal is being championed by Kouros and Eagle, who believe the DAO should cover gas costs (which add up to significant value) because the transactions that incur these costs are made in the interest of the community.
💸 Compensation & PLM : There are two working groups currently in operation with goal of building an action path for establishing an action path for the following objectives:
Compensation: Discussions around compensation structures in BanklessDAO have been a recurring topic, but now there is a dedicated Compensation Working Group with the agenda of ironing out a comprehensive action path for establishing best practices!
Project Lifecycle Management: Projects are the lifeblood of BanklessDAO. Currently, there is a decent proposal workflow in operation, but there are additional questions and processes to be established. The DAO continues to need to provide guidance and direction around success metrics, funding evaluations, visibility and talent resource management.
🏦 Firming up Governance: Following the recent Proposal for Olympus Pro, and community feedback on the implicit sentiment around that vote, there has been need for a more comprehensive look at the parameters and guidelines on voting in BanklessDAO. The proposal for Firming up Governance is being championed by frogmonkee.
🤓 Learn To Read! (Smart contracts): In the name of educating us all, hashedMae and the Education Guild sets to create a series of three short videos on how to read smart contracts using Etherscan. Historically, resources available for learning about smart contracts and solidity were almost exclusively aimed at developers. This series of videos would increase the competency and confidence of Web3 users so they could engage safely with products, both in and out of the DAO. This would help users achieve a strong technical base that goes beyond just interacting with websites on a superficial level. Also, if successful, the project will be used to obtain outside grants and sponsorships to continue developing the series with more topics.
❤️ Follow: BanklessDAO Medium page.
👩🎤 Mint: DAOpunks pre-sale ends today!
🚨 VOTE: For Olympus Pro Snapshot proposal.
🙏Thanks to our sponsor
UMA helps DAOs build products to diversify their treasury. Most DAO treasuries are imbalanced, holding too many native-governance tokens. By using UMA’s success tokens and KPI options, DAOs can fortify their treasury, preparing for any market while building loyalty.