HaloDAO x SushiSwap MISO AMA Recap
ICYMI: We held an AMA with 0xTangle from the SushiSwap team on June 29 to cover some of the burning questions that people had about HaloDAO.
You can watch the recorded livestream of the AMA here.
Below is a summary of some of topics that were covered:
What’s the Story Behind HaloDAO’s Mascot, Heyhey? 🐰
The inspiration of our mascot design was taken from Hello Kitty and LINE. We like the idea of having Heyhey to depict the HaloDAO journey in simple nuggets of information. Heyhey will be taking every user on a storytelling journey and provide the community a rally point to channel their support.
You can take a peek into Heyhey’s journey by exploring through our official channels. We have various illustrations of Heyhey showcasing our brand story and the adventures Heyhey has with the core team members and community members.
If you’re interested in creating meaningful artwork or memes using Heyhey to show your support to HaloDAO, please keep a lookout for our next GitBook update!
We will be providing a brand kit that will be available on GitBook soon.
Inspiration and liquidity reward for xRNBW token holders
We took inspiration from SushiSwap’s Sushibar for our Rainbow (RNBW) pool. Similar to xSUSHI, xRNBW is our vesting token where individuals can gain liquidity rewards when they stake their RNBW tokens.
xRNBW holders will be able to gain 20% monthly liquidity rewards from the Rainbow pool. We believe that by highly incentivising stablecoin pairs, our token holders will be more encouraged to lock their liquidity in HaloDAO for a longer period of time.
Overview of Future Plans for Global Adoption
1. Producing HaloDAO’s Very Own Consumer Wallet
One of the key advantages for DeFi Protocols over centralised models is openness. Permissionless architecture enables global liquidity flows and global investor participation to use its products.
Yet, this openness is also a double edged sword as users are able to move liquidity out of the project easily. This means that the most effective way for a Protocol to remain relevant is rapid innovation. The pace is relentless for small Protocol teams.
To support global investor participation with open design, Protocols often choose to make the tradeoff and not have direct fiat on-ramps support. As on-ramps support frequently demands more time spent integrating with banking partners one at a time in local regions. This creates a moat for centralised exchanges and traditional finance as they continue to be the key gateway & middleman for consumers before they enter the crypto ecosystem.
Finally, managing existing portals to manage crypto portfolios is a frustrating process. It requires deep prerequisite knowledge on crypto and how these portfolio management portals are designed is reminiscent of how Blackberry and Nokia raced to pack as many buttons onto their hardware phones to demonstrate usability. This model looks consummate in its offering but in actual fact builds even more complexity, making it harder for the average user to get involved ironically.
Therefore, part of the HaloDAO ecosystem strategy is to create a consumer wallet.
What we aim to achieve is to enable direct fiat on-ramps with local fiat-backed stablecoins. We will not be able to support every currency but attacking each niche enables us to build a beach head in each local jurisdiction.
We also aim to provide simple interfaces adapted to current design language similar to the innovation brought by the iPhone & Steve Jobs, to consolidate how users interact with DeFi primitives such as the AMM + Lending market, in simple terms.
The aspiration is that with better design and fiat on-ramps support HaloDAO can make DeFi much more usable to the average consumer and provide the value of money-market fund via local currency farming to the wider community.
2. Focusing in the Bigger Goals Within a Niche Space
At HaloDAO, we don’t limit ourselves to just building one type of money lego. We want to build liquidity for regional stablecoins on our two core product pillars that increase TVL in DeFi: an AMM and a Lending Market.
One of our current focuses is on stablecoins that lack representation. Specifically fiat-backed non-USD stables. We believe that the future of DeFi will proliferate across all jurisdictions. Therefore, we build for this future by supporting local stables. We do that by providing individuals the ability to farm in their localised denominated currency. To capture yield that traditional financial products cannot compete against.
Over the lifetime of HaloDAO, we will release stablecoin optimised versions of these product pillars that will allow capital to be utilised much more efficiently due to the specific risk profiles of stablecoins.
3. HaloDAO’s Obsession with Fiat-backed Stables
HaloDAO believes that there is a hierarchy in the stablecoin universe: fiat backed stables, synthetics collateralised by multi-collateral, algorithmic stables.
Fiat backed is best as there is in excess $106 trillion of cash and deposits circulating in the world. Minting this is also tremendously easy via regulated e-money issuers. This can be observed by the rapid growth of USDT and USDC supply compared to DAI. As they are issued by regulated entities, the KYC for the money flow is also regulated. Local regulators are supportive and generally do not interfere with this source of TVL.
Next are synthetics such as DAI. These are battle tested products that users can be confident in. It uses multiple sources of collateral to create the product and de-risks the system.
The lowest priority is algorithmic stables. Recent exploits from Safe Dollar and Iron Finance highlight the vulnerabilities of these models. With a single collateral base that backs the minting of the stable asset, it is vulnerable to the vicissitudes of the crypto market that can create scenarios whereby the total market cap of stables is less than the total market cap of the underlying collateral asset. In these scenarios, ‘bank runs’ can occur and the Protocol value can rapidly deteriorate.
The key weakness though in synthetics and algorithmic stables is that they rely on crypto assets for collateralisation. This means it can only grow in supply as the crypto market grows in market cap. When we compare $106 trillion > in fiat vs the ~$1.3 trillion crypto asset class, we see that even if we could collateralise all crypto assets to mint the equivalent of ~$1.3 trillion more in stablecoins, it will still be much less than the availability of fiat. To that end, HaloDAO is obsessed with supporting more fiat stablecoins as this will be the source of new TVL moving forward.
The second key weakness for synthetics and algorithmic stables is that they tend to present a key risk to the local monetary system. Local governments have shown resistance to enabling on ramps for these stables. This creates an adoption problem. As money is only as valuable in the ways you can use it. If the average user cannot access it, and it is not composable, then it has less value. We see this adoption problem for algorithmic projects.
— — — — — — — — — — — — — — — — — — — — — — — — — — — — — — -
To keep up to date with HaloDAO Developments, please follow our socials:
Telegram Community: https://t.me/HaloDAO
Telegram Announcements: https://t.me/halodaoannouncement