DAOfi
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DAOfi

Reflecting on DAOfi Launch, Launching on Ethereum Mainnet Next

DAOfi launched its first programmatic and fractionalized art piece yesterday and we’re extremely happy with some of the milestones we reached. The liquidity pool hit 100+ wETH in a few hours after trading, we received nothing but positive feedback about the art piece, and most importantly we feel it’s a product that we are really proud of launching. Check out the art piece here by Marc Horowitz: https://idxm.io/ It is currently 75.3% revealed in its layers based on buying activity on the bonding curve. The price is also sitting at 4x ETH ROI from the crowdsale price as well.

https://idxm.io/ by Marc Horowitz

The motivation to execute a startup often starts with an instinct, a gut feeling, an intuition, or a hypothesis that to solve a problem that no one else has elegantly solved. A lot of our hypothesis and solutions for how to solve NFT liquidity and utility was recently published here in our blog post about fractionalized NFTs, and it was really well received with tons of interest and support. Thank you all!

I want to take the opportunity to be transparent on our learnings and actions to improve and optimize towards optimal product market fit. It’s normal for startups to optimize and iterate as more data points become transparent, and in just a few hours after our first launch we’ve learned a ton and decided to launch DAOfi again on Ethereum mainnet after initially launching on xDai network.

Thoughts on xDai

xDai is an Ethereum-based sidechain that uses proof-of-stake. xDai is the native currency on the network and its used to pay for transactions, which are cheap and fast on the network. xDai has also built an impressive set of bridging tools around its network and validator ecosystem, many of whom are very strong leaders and infrastructure providers for the Ethereum community.

The friction to use xDai is significant. It requires using a bridge to go from Dai to xDai, buying wETH on mainnet then using another bridge to send wETH from mainnet to xDai. It’s a lot to pack into one sentence, and it’s even more work to actually pull it off. One of our users told us it feels like assembling IKEA furniture.

It’s commonly said wisdom for startups to solve a hair-on-fire problem. Are Ethereum transaction fees a hair on fire problem? Here are the pros and cons I would categorize:

The question to evaluate is: are the cons of ETH mainnet enough of a hair-on-fire problem to migrate to a sidechain? After launching DAOfi on xDai, I would argue that the benefits of ETH mainnet still outweigh the cons of the expensive TX fees.

The benefits of Ethereum in the table above are all very powerful network effects and this is extremely valuable. Network effects are the qualities in which a service gets better at as more people use it, such as a social network acquiring users. With Ethereum, there are incredibly powerful network effects with users and assets, making it the best chain to launch on. Quite simply, it makes sense to launch DAOfi where there is the most collective asset value and most people.

I believe xDai can be successful if the TX fees on ETH become so unbearable that it forces users to alternative sidechains, but today, I think the ETH TX fees have not hit that “hair-on-fire” threshold. I also think xDai can be successful for more isolated use cases that don’t leverage the network effects of ETH, such as stablecoin transactions or a game that has their own fiat onboarding.

Launching DAOfi on ETH Mainnet

In light of our observations and lessons learned in the past 15 hours, DAOfi has decided it will be deploying the DEX on ETH mainnet as soon as possible. We will also host the DEX on xDai as protection against the scenario ETH TX fees become so unbearable that we will need to move our art drops to a sidechain. We will update everyone on our progress via our normal social channels listed below.

IDXM.io will also be moved to mainnet and the token holders can use the xDai Omnibridge to bridge the tokens back to ETH mainnet (ETH mainnet contract is 0xf7e8213cbcc88b64e4943b6aa9bd9752ac08b4f4, xDai token contract is 0x5197F9f1a28AA6214686CeaD7E43976354429c21). Updates will be posted at all the DAOfi social channels.

We received a ton of feedback from stakeholders in the past day and we read all of it and deeply consider everyone’s words. The best way to address everyone at once was via a blog post so I hope this is helpful.

We have an incredible roster of artists and celebrities lined up to launch amazing work soon, and will be actively ready to respond to feedback as quick as we can.

Thank you!

Andrew
twitter.com/alee
t.me/aswlee

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