DAO Pad Update: Venture Yield
- DAO Pad is having a record-breaking Q3: the $55.2M staked on the platform stands to gain 600% compounded yield from SHOs.
- This yield is improperly experienced because the platform is luck-centric.
- To make sure every platform staker benefits from the success of SHOs and the massive yield generated on the platform, DAO Pad will now carry a 20% fee.
- This fee will apply to SHO winners and will be distributed to all DAO holders, providing exposure to those who did not win the SHO.
- You can win some SHOs and lose other SHOs. With this model, all holders always win some exposure to the platform’s success.
- Fee example: If you win a $500 allocation where tokens cost $1, you will receive 400 tokens instead of 500. The 100 tokens will be distributed to those who did not win.
- In aggregate, this system hedges your odds. Even if you lose a SHO, you get to win. If you win and feel disappointed on the fee, don’t: you will benefit when you do not win.
- This makes the platform fairer. Put into perspective, if the fee would have been implemented with XCAD alone, over 1.4M USD would have been added as yield to all DAO Holders.
- DAO Pad minimum staking will be raised to 2,000 DAO. This change does NOT apply to people who started staking before September 1st.
- If you are currently staking less than 2,000 DAO, you are NOT affected. If you do unstake, you won’t be able to join back unless you are staking 2,000+ DAO.
- Rewards will most likely not be distributed on Ethereum due to gas fees. The exact mechanism will be shared in the near future.
- This decision is data-driven: we have observed that market understanding and participation in past SHOs are low among users who are staking less than 2,000 DAO.
- Our core missions remain the same: (a) enable access to high-quality projects at VC-level valuations (b) for value-adding retail investors.
- Part A is on us. Part B is on our user base. However, it is our responsibility to ensure that our platform has a high concentration of value contributing individuals.
About 2 months ago, I published an article that explained that venture funding remains an overlooked element of DeFi and that DAO Pad’s yield (at that point) was a shocking 300%+, far greater than DeFi protocols like Yearn or Curve.
The current launchpad model operates as a lottery. A few people walk away with 2,000%+ in yield and others get nothing. The new update solves this problem.
Key Background Points
A. Fighting the Status Quo
DAO Maker is creating DeFi in an intentionally overlooked element of finance: venture funding. Early-stage investments are where institutions and funds generate the most profits. At the same time, it’s large-cap VCs who have created the narrative of DeFi. It’s in their best interest to exclude anything that disrupts their gains, specifically venture funding. This segment remains the most high-potential emerging opportunity for DeFi, and we are rapidly expanding in it.
B. Incredible Yield: an Outlier
- DAO Pad had an inexplicably high net yield in Q2, 2021: over 300%
- Q3 of this year is going even stronger. $55.2M staked on the platform is generating (1) up to 50% on Vaults and (2) an additional 65% from SHOs in just 2 months [net raise * current ROI]. That compounds to over 600%+ APY. Q3 is still not done!
DAO Pad Update
Moving forward, all SHOs and SEED SHOs will have a 20% fee. This 20% will be given to DAO and DAO LP holders. The fee will go into effect immediately, starting with the Snook SHO. The Distribution method of Snook tokens to stakers will be shared after the Snook SHO has been conducted. Learn more about Snook: https://daomaker.com/company/snook
The minimum required DAO Power of 2000 DAO will go into effect in the coming weeks once the early adopter benefits of 500 DAO have been implemented. Early adopters will be given their own trench in the DAO SHO Lotteries.