Founded by SeaFi Labs, OrcaDAO is a community-first Stablecoin (AVAI), and paired Governance token (ORCA), that will enable lending using crypto collateral at 0% interest, built on and for the Avalanche Network.
This project centers around the production, maintenance, and sustained equilibrium of AVAI at a stable value of $1.00 USD, which will be used by the Avalanche DeFi community for a multitude of use cases — such as Loans and Yield Farming — with high confidence.
After considerable research assessing features such as scalability, speed, user/developer friendliness, and a requirement of energy efficiency/sustainable practices, we assessed that the Avalanche platform provides an excellent platform to build upon. Built by long term crypto enthusiasts who had a drive to further advance the space, contribute to the growing community in a meaningful way, and who found gaps in current offerings that needed to be filled.
There is an important rationale behind the naming of the protocol. We share a passion for bettering the world around us, both traditionally with this service and improving financial process, but also sustainably through green initiatives and giving back to the world we inhabit. More about this in the dedicated article on the subject, released simultaneously.
Introducing the tokens:
AVAI Stablecoin:
The AVAI stablecoin is a fully crypto collateral-backed stablecoin that is currently pegged to the US dollar. Through Orca Banks, collateral can be deposited, such as AVAX, which can then be borrowed against for AVAI. AVAI can then be used for a multitude of use cases, such as payment for other cryptos, within the OrcaDAO for yield farming, or over time to be used as confidently as a yield farming pair across the community.
AVAI is not produced out of thin air — it can only be created as the output when collateral funds are committed to a Vault. This means that unlike many digital and traditional currencies, there is always full backing for every token of AVAI in existence at all times.
When the collateral itself rises or falls, the total AVAI in circulation matches that flow. For example, if 10% of all AVAI collateral is withdrawn in one transaction, the circulating AVAI that was backed by that same collateral will automatically be burned simultaneously as it is repaid.
AVAI is only burnt when collateral no longer backs it. This is done when a user re-pays a loan, or a user redeems AVAI for USD using the Exchange mechanism. AVAI is always backed by collateral, either through Vaults or through the Exchange.
AVAI is pegged to USD via backing of collateral and insurance that it will be backed by 150% of collateral. If on the open market AVAI price lowers below the USD, this incentivizes people to pay back AVAI; thereby burning it, lowering supply, and increasing the AVAI price back to stability.
ORCA Governance Token:
OrcaDAO, similar to many DAO’s developed in blockchain, gives the ability to control the future of the protocol through community decision and eventual transition to complete decentralized governance.
As a quick recap, a Decentralized Autonomous Organization (DAO) is an organization without central leadership. Decisions are made from the bottom-up, governed by a community organized around a specific set of rules enforced on a blockchain, and democratically made decisions. DAOs are internet-native organizations collectively owned and managed by their members.
Our members will be the holders of the ORCA token. On top of voting, this token also will be used as a profit sharing mechanism for revenues collected through the protocol’s modest fees, and as a Liquidity Pool option for yield farming. Just like a living pod of Orcas, the larger your ORCA, the larger your impact (via voting) to the rest of the Community/Pod.
There is a detailed token distribution model in our documentation, but the intention at a high level is for the community to receive the majority of ORCA tokens. There will be no pre-sales or private sale of the ORCA token as the intention of the team is not to maximize profit, and to stay as decentralized as possible. OrcaDAO is made to be owned and governed by the community, therefore token distribution must mirror this sentiment. The primary vehicle for ORCA token distribution will be as staking rewards.
Revenue model:
There will be three revenue generating processes, all set to an industry competitive 0.75%: Repayment, Withdrawal, and Stablecoin swap fees. These can be toggled in the future if so determined by the DAO. There will be a 0% interest rate fee on loaned funds.
With those funds, the initial distribution is as follows:
- 40% ORCA Token holder distribution
- 40% to an Insurance Wallet
- 15% to a Charity Wallet — the SeaFund*
- 5% to a future development and ongoing costs fund (e.g. to fund subscription costs to The Graph, and otherwise to be distributed based on successful voting in of proposed initiatives to OrcaDAO)
*While all percentages can be voted on and updated by the DAO, there will be a minimum threshold of 10% that will be mandatory to go to the charity pool, otherwise it will break a core mission of the DAO.
So how’s it going?
We have reached the milestone where our Testnet is available to the public. Our plan is to launch after a successful batch of testing, gathering of community feedback, and any fixes that might be required are implemented. Mainnet will be scheduled immediately thereafter.
There are a few ways you can get to know more about us, so don’t hesitate to get in touch. Here are a few ways to do so:
- Explore our Website and Documentation to learn more, or to test out a transaction or two on the Fuji Testnet.
- Follow us on Twitter as testing begins to ramp up, or for discussion and quick news.
- Join our Discord channel and become an early contributor.
- DYOR and understand the codebase and our model via Github.
The water is warm and there is plenty of room in the Sea. Come dip your feet in and become an early and incentivized contributor!
In Summary:
- AVAI is the first native stablecoin built on and directly for the Avalanche community
- Owners of the protocol, and governors of the DAO are ORCA token holders
- ORCA holders are the beneficiaries of the heavy majority of revenues collected
- Heavy emphasis on the triple bottom line for sustainable success, focused on Ocean/Marine restoration
About Avalanche:
Avalanche is the fastest smart contracts platform in the blockchain industry, as measured by time-to-finality, processing 4500+ transactions per second, and has the most validators securing its activity of any proof-of-stake protocol. It boasts a lean, energy efficient protocol, and a bustling community of innovators.
