Enter PixelDAO
Dear Adventurers,
We are moving extremely fast, and we are going to jump through a lot of Levels here. Rest assured: WAGMI. Our goal is to become the champion for metaplay incubation and a decentralized accelerator of metaverse game development
LFG anon.
“Welcome $PXL — The Decentralized Reserve Currency of the Metaverse”
PixelDAO combines the sustainability of POL (Protocol Owned Liquidity, pioneered by OlympusDAO) + The exponential growth potential of the Metaverse. A protocol optimized for rapid treasury expansion that isn’t solely dependent on Bonding for treasury growth.
If you are unfamiliar with OlympusDAO, we encourage responsible and cautious investing after reading this short article (or you can ape, your choice): OlympusDAO
Let’s start with a quick glance at our features:
- Token: $PXL
- Chain: Harmony / Cross-chain
- Treasury Assets: Stablecoins (FRAX) + P2E/Metaverse tokens (xJewel + more)
- Wen launch: Soon™️
- Governance structure: DAO
And now we deep dive into details + specifics.
A diverse treasury of stable, bullish, and extremely high R/R speculative assets.
Our treasury strategy is structured with 3 different asset classes(the allocation figures are indicative and bound to change):
- 80% Stable Assets
- 19% bullish p2e/metaverse tokens (referred to as Metaplay henceforth)
- 1% extremely high R/R speculative assets
Rationale:
80% Stablecoins:
A healthy stable coin reserve is extremely crucial for the POL distribution model since it ensures strong buy-back power and helps us maintain a healthy RFV (Risk-Free Value).
At the beginning, our choice of stablecoin will be: FRAX
We decided that an 80% stablecoin treasury reserve at the beginning is a conservative allocation that allows us to experiment with multiple Metaverse treasury assets, while still ensuring a healthy RFV.
As our metaverse assets appreciate in value, this percentage will undoubtedly fluctuate, and depending on growth strategy/market conditions, the asset baskets will be actively managed through the DAO and balanced accordingly.
Additional details below.
We will also deposit our stablecoin treasury assets into yield generating protocols (CRV, CVX) for treasury growth. Our mechanism guarantees an automatic + seamless withdrawal from these protocols to ensure a consistent, healthy 80% stablecoin asset even with stablecoin CRV deposit.
19% Bullish Metaplay tokens
An investment in PixelDAO is a bet on the future of the P2E / Metaverse sector. Fortunately, that future looks extremely promising.
This basket will include (but is not limited to):
- Liquid tokens (xJewel, AXS, Atlas)
- LP tokens (Jewel-ONE LP)
- Loanable NFT assets (Axies, DFK heroes, etc.)
At Launch, we are limiting this basket to xJewel, Jewel-ONE LP & DFK Gen 0 Heroes (in the spirit of supporting the ecosystem we chose for launch).
Post-Launch, we will move cross-chain to acquire a more diversified asset portfolio to prevent tying our success purely into one Metaplay project.
The thesis behind acquiring Metaplay tokens relies on a 3-factor yield increase strategy:
- Bullish Metaplay tokens are naturally price-appreciative long-term.
- Acquiring tokens into our treasury effectively takes supply from the market, driving up both price & demand.
- LP tokens + Loanable NFT assets in our treasury generating passive yield through transaction fees.
All while maintaining a price-appreciative, liquid basket of assets.
1% Speculative High R/R investments
Our goal for the DAO is to gather like-minded investors, researchers, and builders, with unparalleled expertise in the P2E / Metaverse sector and harbor a collective portfolio of both Human and capital assets that strengthens our position.
These members would then form the “Investment Committee” of the DAO: an entire task force dedicated to connecting builders, leading analysts, advising potential projects, and proposing potential investment opportunities for the DAO to vote on.
Ideally, we’d like to invest in these projects in the earliest possible stages (Seed rounds, pre-sales, IDOs) to maximize our R/R on Metaplay investments.
To illustrate, these are the IDO prices for some of the most notable Metaplay projects:
AXS: $0.1 USD
MANA $0.024 USD
SAND $0.008333
ATLAS $0.00138
As of today (27/10/2021), the prices of these tokens are:
AXS: $129.22 (129,299% ROI)
MANA: $4.70 (19,583% ROI)
SAND: $6.55 (78,600% ROI)
ATLAS: $0.1949 (14,100% ROI)
Of course, not every project PixelDAO invests in will yield the same ROI but we hope a few calculated investments can allow our treasury to grow steadily in a sector that is still at a nascent stage when one considers mass adoption. The potential for Treasury growth is limitless aided by the bullishness of the Metaplay sector as a whole.
An abundant treasury means stronger buy-back power, higher RFV, increased sustainability, and more financial incentives for our DAO members.
Investment + Asset balancing thesis
With a fluctuating asset basket (19%) and speculative investment basket (1%) in our treasury, a decentralized mechanism is necessary to handle the portfolio balancing + investments.
The decision would therefore be made democratically through a voting system, where balancing would take place once every 2–4 weeks (tentative timeline), and investment decisions would take place continuously as proposed by DAO members.
There will be a minimum requirement on the amount of sPXL (our staked token) needed to vote on and propose investments to the DAO.
This incentivizes and rewards our most loyal holders with decision-making influences regarding the DAO’s future.
An Unruggable, Trustless security system
We understand that as an investor, the number one concern you have in mind is: “Am I gonna get rugged?”
Fear not Anon, for we are implementing extensive security measures to ensure that your funds are SAFU:
- Multisignature Wallet
- Doxxing
- 3rd Party KYC
- 2 Rounds of Auditing
Multisignature wallet
Our treasury fund is tied to a Gnosis Safe Multisigs 4/7 wallet. This means, every single transaction of our treasury fund requires a majority approval from 4 of our 7 multisig holders to execute.
This is designed to prevent exploits from any malicious actors that may want to abscond with our Treasury funds (as we’ve witnessed in the past with other protocols i.e. AnubisDAO).
As a vigilant investor, one may ask: “What if the multisigs team up together to sabotage?”
To answer this, PixelDAO has diversified our multisig members to include: Core team members, reputable builders, well-known CT (Crypto Twitter) figures, and ecosystem representatives.
A collective of trusted and vetted figures of the community.
Prior to launch, we plan to publicize the list of our 7 multisig holders for your peace of mind.
Doxxing
One of our core team members/multisig holders Lovefish (Lovefish49 on Twitter, Lovefish #5864 on Discord, or you can find him larping under the alias of CLOUUUUUDD STRIFFEEEEEEE in PixelDAO Discord) doxxed himself to the Harmony core team as part of our partnership.
Our Lead dev is an OG Coinbase dev who has been on board with the team since 2017. He has doxxed himself internally to the team, so any haphazardness carries the risks of forfeiting his employment and potential legal consequences.
We hope this illustrates that the core team has a lot to lose (not only reputation, but potentially severe legal consequences for any foul play) and creates a system in which core team members are massively incentivized to play by the book, encouraging our peers to do so as well.
Rest assured. We are NOT here to rug you.
3rd Party KYC
We say we are doxxed to Harmony and our lead dev works for Coinbase but don’t take our word for it.
In addition to doxxing, PixelDAO core team members have also agreed to use 3rd party KYC. At the time of writing this medium post (28 Nov 2021), we are considering Tokensoft as one of many options.
This will be done pre-launch and we’ll keep the community posted on the process.
2 Rounds of Auditing
To ensure rapid auditing for a timely launch, and maximum security for peace of mind, PixelDAO will be carrying out 2 rounds of auditing:
- First-round with MCN as soon as our contract is complete, prior to launch.
- Second round post-launch with either Paladin or Runtime Verification.
Prior to the post-launch audit, our contracts will be made available on GitHub for public scrutiny.
At PixelDAO, we understand security is of the utmost importance and we are willing to go that extra mile to ensure countermeasures are in place to both external hacks, and internal malpractice. We’ve made difficult personal decisions in a space where privacy is paramount and valued above all else to assure you of one thing: There will be NO foul play.
In the coming articles, we will discuss Tokenomics, Launch details, and our Governance structure.
