Bao Finance Q4 2023 Quarterly Update: A Leap Forward into 2024

As we close the final chapter of 2023 and step into 2024, Bao Finance has much to celebrate and even more to look forward to. The past year was marked by significant milestones, strategic pivots, and a renewed commitment to our mission to tokenize the world’s data. This update provides an insight into our journey through Q4 2023 and a glimpse into the roadmap that lies ahead for Q1–Q4 2024.

Governance and Leadership Transition

New Leadership and Resourcing

• Leadership Changes: We are excited to begin the new year with @Chickn and @Fabiaz84 in their newly assumed leadership roles at Bao Finance, with @Baowolf choosing to transition to a contributor role and spend more time with his family.
• Resourcing Optimization: We’ve streamlined our team structure, integrating roles and leveraging external marketing consultants to maximize efficiency. These changes have significantly reduced our burn rate, setting us up for a focused and agile 2024.

Governance Updates

• Migration to Discord: Our governance process has transitioned to Discord, replacing the traditional governance board. The original forum will be up for a short while but will be down soon.
• Archiving Governance History: Historical governance documents and proposals have been archived on GitHub, preserving our journey and decisions.

Strategic Developments

Haruxe’s Promotion to Guardian

• We’ve welcomed Haruxe as a Guardian, entrusting him with front-end responsibilities and smart contract development. This change marks a strategic reinforcement of our technical leadership as we bid farewell to Vital’s full-time involvement.

Tokenomics Revamp

• In response to the inefficiencies in our inflationary model, we’re shifting to a veYFI-style tokenomics framework. This includes a transition to fee-funded BAO buybacks and the introduction of dBAO (Discount BAO) tokens, marking a significant stride towards sustainability. You can see the concept here.

Marketing Initiatives

• In collaboration with Coinbound, we’re refining our marketing strategy, anticipating a campaign launch during Q2 2024.

Listing Updates

• Efforts to boost our visibility on platforms like CoinMarketCap, CoinGecko, DappRadar, and LlamaFolio are ongoing. Enhanced visibility is crucial for attracting new community members.

Community Engagement and Feedback

Engaging with Debank

• Our Debank profile launch was a milestone event, quickly gathering over 5000 followers and a TVF of $169M. This platform has become a crucial touchpoint for engaging with our community and broader audiences.

DeBank Page

Feedback and Communication

• Feedback Mechanisms: We’re soon to integrate a survey tool on our site and are exploring more tools to collect valuable feedback. Understanding community needs and preferences is key to our continuous improvement.
• Brand Strategy: The development of our brand strategy is in full swing. We’ve completed a thorough analysis of our purpose, vision, and values. This strategy will guide how we communicate and position ourselves in the dynamic world of DeFi.

Operational and Development Highlights

Infrastructure and Integration

• Vault and AMO Development: We’ve made significant progress in vault integrations and the development of AMMFED contracts. If all goes well shortly the AMMFED will be able to mint baoUSD into the pool as an equivalent, multiplying available liquidity and the ease with which we can conduct our liquidity flywheel without needing to rely on funds that are available in the treasury.
• Ongoing Testing and Refactoring: Our team has diligently tested and refined our systems, including the f(x) fork to enable data synths, including pegging fTokens to stable values. Work on a test dollar-pegged deployment has begun.

Governance and Partnerships

• On-Chain Governance: Steps have been taken to enhance our governance framework, including testing vaults on Polygon and deploying on-chain governance structures.
• SDT rewards are now flowing into our base pair gauges on StakeDAO.

Key Objectives and Strategic Initiatives for 2024

With the passing of our Annual Agenda, we have our goals for the coming year marked out.

• New synthetic products: Focus on developing data synths and RWAs (Real World Assets)
• Tokenomics Evolution: Launching veYFI-inspired tokenomics aims to stabilize and sustain our token’s value, focusing on long-term growth and stability.
• Expanding Lending Markets: Make and grow multi-chain lending markets and refine our collateralization approach.

Quarterly Breakdown of the 2024 Roadmap

Q1 2024

• Implementing veYFI-inspired tokenomics changes.
• Sunsetting baskets and approving new vault collateral like rETH directly.
• Launching AMM FEDs for baoUSD and baoETH.

Q2 2024

• Launching the first baoUSD and baoETH lending vaults.
• Initiating F(x) synths MVP.
• Beginning research and testing for multichain expansion.

Q3 2024

• Expanding baoUSD and baoETH lending vaults.
• Evaluating lending markets and AMM FEDs for improvements.
• Starting research and testing for data synths.

Q4 2024

• Potential launch of multichain expansion.
• Beginning development for data synth factory.
• Crafting the roadmap and milestones for 2025 based on 2024’s learnings.