The new model for DAOs — Chelo Finance

ohad bachner
Chelo Labs
Published in
3 min readJul 12, 2022

For the last six months we have worked in a stealth mood, participated (and earned awards) in hackathons, and been advised by the best guys in the industry.

Now, we are happy to go public.

The DAO abilities are locked.

Our mission is to solve the community lack of involvement problem. The power we (as a community) have voting is not enough: Communities also need to share all the resources (financial, values, intellectual) we have.

DAOs are the new companies, and no company offers only a paycheck to their employees.

With Web3, we have the power to create plug-and-play solutions for any DAO to provide additional services for the benefit to their members while engaging them to give back their time.

In other words, we develop ready-to-deploy tools that help DAOs attract, retain, and support their community.

The idea is to use the web3 power as Lego bricks that you can connect and disconnect, offering different tools to enhance your DAO.

As typical for academic people, we like to look at the numbers, and right to this date, there are 8.3b TVL in DAOs treasury, and from this, 2.5b on uniswap. We are asking: How are the end-user objectives met ? Are we using the power of DAO correctly, or is it another Ponzi scheme? Will those who build it take everything, leaving the holders with nothing ?

We believe that is not the truth. We want to empower the users to enhance the DAO abilities with our tools.

Two tools and more on the way-

We will give here a (very) short taster of how it will work and, in the following weeks, will publish more technical articles on each tool we build.


WE built a collateralized loans protocol that can offer the community members with a better borrowing interest and deeper liquidity by allowing the option to use illiquid collateral like NFTs, voting tokens, and more…


These loans are trust-based and thus targeted to the most active and influential members.

However, uncollateralized lending is a challenge, as written by Vitalik in his paper ‘Decentralized Society’ (published exactly while we were working on uncollateralized lending in our HackMoney 2022 project):

Perhaps the largest financial value built directly on reputation is credit and uncollateralized lending. Currently, the web3 ecosystem cannot replicate simple forms of uncollateralized lending, because all assets are transferable and saleable — thus simply forms of collateral”

To solve the problem,Vitalik proposes Soul Bounded Tokens, and hopes that

Whereas commercial lending is a “lend-it-and-forget-it” until repayment model, community lending might take a “lend-it-and-help-it” approach — combining working capital with human capital with greater rates of return.

We fundamentally agree, and believe that we will also need additional measures of reputation on-chain, so if you are building any DID or reputation on-chain tool, we would like to work with you!

Looking Forward -

Our main goal right now is to work with more DAOs that want to use the tools that we are building to help us improve the ecosystem, so if you are up there, DM is open.

Let’s unleash the power of DAOs.

We will keep you posted on more technical articles that explain how we will achieve our goals.

Take a look at our previous hackathon participation:

Meanwhile for more information you can find it on our: