Introduction to Venture Yield:
Venture Yield & SHO Farming Calculator:
You can use this calculator to simulate APRs from VY and VF. Please note that this calculator does not consider market conditions or their impacts on the DAO price and is in no way meant as investment endorsement or financial advise.
Deflationary & Sustainable Yield
DAO reward tokens released by the venture yield contracts arise from multiple sources. The main ones being; DAO purchased by VCs in the strategic Round that have been refunded, Customer Incentive Tokens, ongoing Venture Yield purchases from liquidated Venture Yield Funds and lastly DAO of users that unstake their positions before half their staking time has been reached.
Venture Yield Purchases: https://etherscan.io/token/0x0f51bb10119727a7e5ea3538074fb341f56b09ad?a=0x2d1d27df0cb45ddac5fb78e84e47a93853faad21
Converting sell pressure into incentives for holders
DAO Maker will deposit 3.5 Million DAO into VY reward pool. These tokens originate from customer incentive tokens as well tokens from Strategic Round participants that provided insufficient support or forwarded low quality or even fraudulent start-ups to the DAO Pad. Tokens that would have been dumped on the market now create strong incentives for long term holders.
Sustainable deflation mechanism via the Venture Yield Fee
All winners of any SHOs pay a 20% winner fee on their tokens, the Venture Yield Tokens (VY). These tokens are then being liquidated into stablecoins and used to purchase DAO from the open market. Each time SHO tokens unlock, 80% are distributed and 20% are slowly being liquidated ensuring future Venture Yield purchases for extensive periods of time. This is due to the long vesting schedules of many of the DAO Launched Projects. Its important to note that the VY fee only started applying from the moment they were announced with the first SHO being Snook.
Example:
Project X launched on DAO Maker and provides winners with 25% unlocked tokens. A total of $200 000 were collected. On TGE $40,000 USD worth of tokens at SHO price are distributed to winners and $10,000 USD are being collected in the VY fund. Over a period of 3 months these $10,000 USD are being liquidated. The projects valuation increases by 9x over that period and turning it into $90,000 USD in Venture Yield Purchases. After 3 months the next 25% are unlocked at a 10x in valuation and therefore providing $100,000 USD worth of Venture Yield DAO purchases. This process repeats for all future unlocks and all SHOs on DAO Maker.
Venture Yield Purchases (LIVE): https://etherscan.io/token/0x0f51bb10119727a7e5ea3538074fb341f56b09ad?a=0x2d1d27df0cb45ddac5fb78e84e47a93853faad21
SHOs are for Strong Holders
We recently introduced the SHO Yield requirements outlined in this article, stating that all winners are required to hold their DAO needed to maintain their Tranche. Users that sell or move their DAO Tokens have 72 hours to restore the DAO position. Failing to do so will cause users to lose their future locked tokens from past won SHOs. Once Venture Yield contracts are initiated users are given 72 hours to restake their position in order to retain their vested SHO tokens. SHO Future unlocks of users that do not maintain their positions will be added the Venture Yield Pot. This also means that once DAO holders win an allocation they are engaged into a virtual lock. Removing tokens out of the staking contracts for more than 72 hours will lead to loss of all vested tokens from past won SHOs. Therefore the incentive to remain a long term strong holder increases with every won SHO.
Venture Yield Contracts in more Details
Why Staking Contracts:
- The industry-standard approach is currently used to distribute billions of dollars in rewards each year. Around 97% of all incentive rewards are distributed via Farms or staking contracts.
- A scalable and simple system managing the distribution of rewards.
- Ability to generate complex Game Theory applications
Safety & security:
- 90% of the code base has been completely forked from secure contracts with billions of dollars in them. The remaining 10% has been developed by a team of experienced high-tech experts such as members of the Muon team as well as the Marnotaur Team: companies responsible for complex layer two solutions and contracts hosting 100s of millions of TVL.
- We are in the process of completing audits with 6 individual audits (Peckshield, Smart State, Omnisicia, Hacken, Zokyo & Certik) and codebase reviews of several CTOs in the DAO ecosystem, such as Muon and Marnatour development team. Afterwards we will publish all code on GitHub, for public review.
Detailed Rules for the Staking Campaign?
- After audits have been completed the contracts will be available on daomaker.com. In order to participate in SHOs, users are required to deposit DAO tokens into the staking contract. Once staked in the contracts DAO tokens are locked for a period of 15 days.
- Users can define their staking duration themselves. The shortest period is 30 days and the longest possible stake is 3 years. Participants gain a 50% bonus in APR for every additional month set as their staking period, providing a 600% reward bonus per year. Daily DAO rewards therefore increase steeply for participants that set longer staking goal.
Users will receive their DAO rewards only at the end of their defined Staking Period.
- Stakers are given a 0.5% bonus for every 10K DAO extra Staked, caped to 50% bonus for staking 1 Million DAO.
Unstaking early fee
Users are able to unstake earlier (than their lock time expires) for a fee. The fee is equal to the reward amount that they would get in the first 50% of days they committed to stake. Eg. if a user commits to stake for 200 days and unstakes after 50 days, he will not have enough reward to cover the fee, therefore the fee will be paid with some amount of his stake. If he unstakes after 101 days, he gets back all the stake amount + reward for 1 day. The minimum fee days is set to 30 days.
Exact equations
fee days = max(30, committed stake days / 2)
early fee = sum of the unstakers rewards of days from starting day to (starting day + fee days)
If starting day + fee days > unstaking day, the staker doesn’t get any reward and loses some percentage of his stake. The early fee is averaged as following:
raw early fee = sum of the unstakers rewards of days from starting day to unstaking day
early fee = raw early fee × fee days / (unstaking day — starting day)
The minimum number of fee days is set to 30. Meaning if somebody commits to stake for 50 days and unstakes after 26 days, he will still pay fees for 30 days (instead of 25), resulting in losing some percentage of his stake.
Users that move their tokens from their wallets to the Venture Yield Contracts will not lose their future unlocks of SHOs.
Tokens taken from the early unstake fee are split three ways. Half (50%) are returned to the staking pool, one third (30%) will be liquidated and added to the DAO Ecosystem growth pool and one fifth (20%) will be burned. The DAO ecosystem growth pool are funds that buy into all major DAO Maker launched projects. Purchased tokens will be burned, creating a positive feedback loop between DAO and its ecosystem. The detailed process has not been defined yet and will be public in the future.
Unstaking too late fee
Users are charged a fee if they unstake more than 30 days after their lock time expires. The fee increases linearly for 100 days. After 100 days, the fee is .equal to the total stake + reward (meaning that users get 0 DAO back). Anybody can can call the smart contract and send staking rewards to users that finished their staking period to their wallets. Once the function is called, the user will not receiving rewards anymore, however his stake remains meaning vested Tokens from SHOs are not affected.
Anybody can unstake for anybody (who is in the late days period) to prevent the fee increasing and to distribute the accumulated fee to the other stakers. That late unstake fee ensures clear price predictability to protect DAO holders.
late days = unstaking day -(lock expiration day + 30)
If late days >0, the user pays the late fee, calculated as following:
late fee =(stake + reward) *late days / 100
Venture Yield Calculator
To help our users to understand the system we will introduce a calculator allowing users to see daily rewards directly on our Platform. Until then we provided a MVP calculator that allows anybody to see how the rewards work. DAO rewards are greatly based on the performance and volume of SHOs on our platform. Users can change the performance and volume of SHOs as well as their staking periods and amounts.
Please make sure only change the blue or black values. Do not to change any variables shown in red as this might break the system. Finally we would like to remind all users that this calculator is only meant as a simulation and may differ from future outcomes. None of the below should be seen as endorsement of investment or financial advise.
Estimated time until deployment
Audits & Security
From the 6 firms that are currently reviewing the F bases three have submitted their reports already with three more to be completed within the next few weeks. You can find these reports in the google drive below. The codebase will be made public once the audits have been finalized.
User Interface & Development
Our design & frontend team are currently working on finalizing the designs as well as finishing integration of the new pages into DAO Maker. The changes are significant, as we are adding several new pages to Portfolio page of DAO Maker. We expect integration to be finalised by end of November.
LP requirements
Nothing will change for the way LP and DAO POWER is calculated. Users that hold LP in their wallets will receive DAO Power at a rate of 1.5x. In case that we will make any changes to this system we will notify users 30 days in advanced.
