Thesis:
Collab.Land ought to form a Sub-DAO whose objective is to manage LP on Velodrome.
- Post is in multiple parts, because of restrictions on number of Media or Links. Unbroken post is located here.
1 Like
Treasury:
The Sub-DAO would be funded from four different efforts:
ORIGAMI DAO Grant:
DAOhaus Developers can use Token Bound Accounts [ERC6551] to give existing Collab.Land DAO Pass NFT holders the right to claim one Governance Share, and contribute ETH to this Sub-DAO.
1 Like
These Vote Shares are soulbound to Smart Wallets, which are owned by the NFTs themselves.
This proposal is dependent on Collab.Land requesting a 20k grant from Origami for this governance experiment.
- Origami DAO is offering a 20k Power Up Funding Program to DAOs.
- The Collab.Land Case Study published by Origami DAO highlights the success in distribution of The Collab.Land DAO Pass to ~54k Holders.
- This LP DAO offers Moloch Composability to Origami NFTs, and adds functionality to existing Collab.Land DAO Passes.
The 20k Grant would be used to purchase and max lock veVELO, owned in perpetuity by this Sub-DAO, and voting to direct VELO emissions to COLLAB/wETH LP.
1 Like
Collab.Land DAO Grant
4M COLLAB tokens are deposited into a non-RQ side-Vault, and earmarked to be paired with ETH for LP.
- COLLAB can be issued out at a pace decided by the main DAO, and can come from unclaimed Airdrop tokens.
- COLLAB could be matching, depending on the amount of ETH raised.
- COLLAB could also be earmarked for Bribes, as long as the Origami Grant is used to purchase and max lock veVELO.
OP GovNFT Grant + Velodrome Incentives
Velodrome has a number of Incentive Programs right now, which would subsidize the building of DAO owned LP:
- OP GovNFT is a 1 Year Time Lock OP Grant of 20k OP
- Velodrome offers Rebates on locked veVELO
- Velodrome offers Matching on Bribes
Velodrome ought to be seen as a Liquidity Co-Operative, where the Co-Op owners hold veVELO NFTs, and vote to direct VELO emissions to support their pairs.
This proposal would establish the Sub-DAO as a member of that LP Cooperative, who votes to direct VELO emissions toward COLLAB/wETH LP.
Velodrome is the best AMM for a project like Collab.Land, and these OP Incentives are a large reason why.
1 Like
Additionally, VELO is affordable right now, which means the “membership entry” to this LP Cooperative is a good value for Protocols with LP Needs.
For more information on why Velodrome is a solid choice, please see this study done by Kwenta DAO, when they were evaluating where to hold their LP.
Velodrome Team also spoke at this last Collab.Land DAO Call, providing a ~10 min presentation at the end of the call.
1 Like
Top 50 Collab.Land Treasuries
Collab.Land is a Community of Communities, and there is a spreadsheet which shows the Top 50 Treasuries of communities who are still holding COLLAB tokens in Safes on OP.
I would like to help organize a Crowdfunding Campaign, which seeks 1 ETH contributions from each of these groups.
In return these groups recieve:
- LOOT - Economic Shares of the tresury proportionate to their contribution.
- Many of these treasuries hold 5 Figures worth of COLLAB in treasuries. They would likely appreciate being able to provide LP on Velodrome, and farm VELO.
- Exclusive Collab.Land Merch From MetaFactory.
The Design for the Shirt could also be up to the discretion of the Collab.Land Community.
I’d like to request a Collab Cares session to further discuss or strategize this crowdfunding effort, because Collab.Land knows its own communities best.
1 Like
Power Distribution:
By Crowdfunding this treasury from multiple sources, we hope that the Sub-DAO will have access to pooled resources from more contributors than if the Collab.Land DAO had shouldered the responsibility for LP itself.
- The Origami DAO grant is connected to a 6551 Moloch Treasury attached to their NFTs.
- The ETH is sourced from the top 50 Treasuries as well as individual contributors who own the Origami DAO Pass, and are active Collab.Land Members.
- The OP GovNFT is a reward for achieving this larger scale resource coordination while other DAOs are not organizing crowdfunding.
When the Moloch DAO is summoned, shares can be distributed and weighted to support a model of Progressive Decentralization.
Collab.Land DAO could offer an acceptable weight distribution, which would respect the contributions of these other parties, and also insure that the objectives of the DAO are pursued – Deepening COLLAB LP on Velodrome.
DAOhaus Developers can help Collab.Land DAO set these weights.
DAO tooling also includes Delegation and a Voting UI for proposals.
We would also be open to discuss partnering with Origami to use their UI for the project, so that the Moloch Treasury operated “under the hood”.
LP is Complex, but LP Management doesn’t have to be:
Velodrome is releasing a tool called Relay, which will simplify and automate voting strategies. Meaning, the Sub-DAO could vote to implement a strategy, set it, and forget it.
Auto Compounding VELO emissions into more veVELO or building COLLAB/wETH LP are two example strategies.
Velodrome is also offering to help advise on strategies, or balance Bribe amounts.
1 Like
A Word on Moloch v3:
Moloch v3 is built on top of Gnosis Safe Zodiac, and it has two types of controls – SHARES and LOOT.
The main purpose of making a distinction between SHARES and LOOT is so that a Governance Attack is not possible, just because one party has a lot of ETH they are contributing to the DAO.
SHARES are primarily Governance Votes.
The shares would be in the Token Bound Accounts of the Origami DAO Pass NFTs, as well as distributed in appropriate weights to the other DAO treasuries, as determined by the Collab.Land DAO.
LOOT Tokens are exclusively Economic Claims on the Treasury via Rage Quit.
LOOT Holders would be treasuries or individuals who contributed ETH or COLLAB or Grants into the Sub-DAO on launch. And LOOT would be awarded to them proportionately, based on how much they contributed.
All of the Assets raised in this crowdfund would NOT be Rage Quitable. There is a Sidecar in moloch, which would hold:
- veVELO
- COLLAB for LP
- Staked COLLAB / wETH LP for Farming
The “Sidecar” setup means that behind the curtain, the Moloch Treasury is actually Two Gnosis Safes, with different permissions, managed by the same Sub-DAO.
What is the point of having a RQ Treasury with LOOT Tokens if all of your assets are in the Sidecar?
The RQ treasury would be useful if there were any rewards over time that the Sub-DAO wanted to issue out to LOOT holders.
The best example I can think of, would be if the Sub-DAO evolved to manage Developer Grants as an incubator, and recieved benefits from those launched projects.
LOOT holders would then have a claim to the benefits of that incubator.
Conclusion:
I’m hoping that this proposal stimulates some conversation in the forums, and I’d be happy to respond to questions at another DAO Zoom Call.
I’m interested in meeting up with Collab Care to discuss some plans to incentivize the top 50 Collab Communities into participation.
I think this is a positive-sum win for the following Groups:
- Collab.Land DAO
- Collab.Land Communities
- Origami
- DAOhaus
- MetaFactory
- Velodrome
And perhaps on a larger scale, OP Governance Culture, since this is an innovative proposal.
.:.
Alternatively, Collab.Land DAO could spend COLLAB tokens as Bribes, put together some ETH, and then hold its own DAO Owned LP on Velodrome, while retaining control of the veVELO and DAO owned LP in the Collab.Land DAO Multisig.
However, I think the approach outlined in this proposal is more interesting, and allows for a more creative involvement of community members.
Additionally, I think that a strategy of veVELO Accumulation at these price levels, beats a COLLAB bribe focused strategy, because without the veVELO, those bribes are likely to be translated to continued sell pressure.
Thank you for taking time to read, and I look forward to the community’s response.
1 Like
I have since looked further into Origami, and there is a caveat that the Sub-DAO must use the Origami Framework, and in their promotional material, they position themselves in as an alternative solution to Moloch DAOs.
The main objective is to deepen COLLAB LP, by building a position on Velodrome.
But, a Moloch Treasury will not work for an Origami Grant.
And, a currently existing Collab.Land DAO may or may not qualify for an Origami Grant.
So – something here will need to be adjusted if this idea is going to work, but if the community sees something useful in this approach, the pieces can be modified.
Take what works, and let the rest go.
1 Like