Your DAOctor Will See You Now | Bankless Publishing Recap
Your DAOctor Will See You Now | Bankless Publishing Recap
Top-shelf Educational Web3 Content Shipped Directly to Your Inbox
Dear Bankless Readers 🏴
In this twice-per-month epistle (we’re still arguing at BP whether that’s bi-monthly, bi-weekly, fortnightly, or all three 🤣😂), we’re aiming to provide you with a short summary of our recent articles, including reads on what a healthy DAO treasury looks like; how to expedite L2 offramps for DAI on Arbitrum and Optimism; how DAOs are like playgrounds for growth and development; what makes Discord so web3 sticky; and why algorithmic stablecoins like Iron Finance and Terra Luna were doomed to fail.
At Bankless Publishing, our goal is to increase education and awareness of key crypto concepts and emerging trends. Read a snippet below, and when something piques your interest, go check out the whole article.
This recap is a convenient way to access all of our recent articles, but if you prefer to read Bankless Publishing while it’s sizzling hot off the press, follow us on Twitter or come and join us in Discord.
Contributors: Frank America, Kornekt, Trewkat, oxdog.eth, Puretayo, HiroKennelly
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✍️ Article Summaries
Analyzing DAO Treasuries
Author: Jake and Stake
Has your DAO gone through its mandatory health checkup? Jake and Stake explores several different DAO treasuries, e.g. ENS, Lido, Maker, and assesses the factors that lead to a healthy, sustainable book of assets. Some of these aspects include asset diversification, amount of stablecoins, and strategic partnerships exemplified through token swaps.
In order to be financially sustainable, DAOs should generate more revenue than they expend. This means analyzing out-flows and in-flows, often discounting the DAO token.”
Learn more about DAO treasury health.
Teleport From Layer 2 With Maker’s DAI
Author: Florian Strauf | Editor: Frank America
From thirty minutes to an hour (Zero Knowledge Proofs) to up to one week (Optimistic rollups), users have to be patient to get their assets from a Layer 2 scaling solution back to mainnet. This is a good thing, as it is a form of security, but it can also have drawbacks in terms of usability. MakerDAO has introduced Fast Withdrawals, which enables secure DAI withdrawals from Arbitrum and Optimism back to mainnet, with the assurances that you can access your DAI quickly and securely.
“Stablecoins are important. A huge chunk of liquidity (about $60 billion in daily trading volume) in the web3 world comes from stablecoins.”
Learn more about how Teleport moves your assets from Layer 2 to mainnet.
DAOs Are Playgrounds for Growth and Development
Author: siddhearta
DAOs are a relatively new form of social coordination, and therein lies real possibility for innovation and growth. In this article, siddhearta discusses DAOs as a playground for learning and growth, where elements like ‘role-playing’ and ‘adventure quests’ create gamification and excitement to coordinate talent.
“By creating cohort-based learning courses and encouraging project-based learning, guilds can help members explore their curiosity and engage in the playful act of taking on several roles as they build the life they imagine.”
There are all sorts of games that can be played in DAOs: positive externalities, positive-sum games, regenerative games.
Learn more about how we as DAO contributors can take all the positive elements from Web2 learning structures and apply them to the web3 ecosystem.
Programmed To Fail
Author: Psalm_Ogbonna | Editors: nonsensetwice & Queen
Psalm walks us through the definition and use cases. In short, algorithmic stablecoins:
“…make use of a two-token model whereby the value of the pegged stablecoin is backed by a balancer token. An algorithm employs smart contracts to maintain the stablecoin’s consistent 1:1 ratio with the fiat currency it’s pegged to.”
Psalm points out a problem with many types of algorithmic stablecoins, including Iron Finance and Terra Luna, which is that the collateral used to back the stablecoin is just too volatile. When demand is low, it can be difficult if not impossible to maintain the burn/mint ratio that preserves the value of the stablecoin.
“A system built for only the good times without insurance for the bad times is built to fail.”
Learn more about algorithmic stablecoins.
The Three Pillars of Discord
Authors: Daryl, Lanz, and Roy | Editors: Trewkat and Kornekt
Communities are the key to flourishing in web3, and they are based on relationship, identity, and incentives. In this essay, the authors look at how these pillars are being fostered within Discord. Although a web2 company, Discord facilitates web3 growth, and has over 150 million active monthly users. This article explores the inner workings of Discord, from channels and bots to moderation and security.
“Even though Discord unlocks novel ways of social engagement, it is ultimately just a tool. It is up to the project team (and community members) to build a virtual space that meets the community’s needs.”
Learn more about how Discord has became the OS of web3.
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