ZooDAO: The essentials
The idea of borrowing and lending money with the promise of repayment isn’t the most novel of concepts. Lending and borrowing money or other assets can be traced back as far as 3000 BC to ancient Mesopotamia, when Babylonian laws were codified to allow farmers to borrow money against the value of their grain to make ends meet. Loans were recorded on a clay tablet –a ledger — and paid back with interest.
Today, five centuries later, the practice hasn’t changed much; banks and individuals still borrow and loan to individuals, companies, and even countries — forming a multi-trillion-dollar trade per year. One major change in the model however has been the introduction of blockchains, permitting an openly-accessible ledger of trades and traceability, enabling a greater level of trust and incorruptibility. Interest also takes on a new form, with yield farming generating passive income. Why is this important? Because the assets we choose to lend out are also changing. Crypto assets are no longer limited only to tokens, like ETH and BTC — they now include NFTs.
When we set out to build ZooDAO, we took a critical look at the 21st century assets we borrow and loan against, and asked a vital question:
“What if users could get more out of their digital assets — specifically NFTs — by temporarily lending them to earn passive income?”
We built ZooDAO to answer this question.
ZooDAO enables users holding eligible NFTs to stake their digital assets in the ZOO dApp and earn passive income from yield farming. Better yet, our resilient dApp enables us to go beyond the traditional reward mechanisms of yield farming to introduce an exciting new element of NFT ownership: NFT Battles.
Within the ZooDAO ecosystem, NFT owners can pitch their eligible NFTs against competitors, battling for supremacy and earning rewards in the form of $ZOO tokens, and DAI. Competitors retain full control of their digital assets, with both the champions, and their competitors rewarded in the battle.
NFT Battles are no-loss. This means that no matter what the outcome of the battle, no competitor leaves the battle arena with less than they came with. NFT owners can rally support for their NFTs in a public vote, with the ZooDAO community casting votes to determine the winner.
We’re excited to break down just how these battles work and share how to make the most out of your NFTs. Our next Medium article will provide the full mechanics of battles — stay tuned!
$ZOO, the native token of ZooDAO enables the full range of earning opportunities available to users. Building trust and fair play into the foundation of ZooDAO, we’ve reserved 48% of the finite supply of tokens for rewards, and have invested 3% of the total supply in an insurance fund.
Stay tuned for more details on the launch of ZooDAO, and join us on Twitter for latest news and updates!