BalancerDAO Commits to DAO Agreement and Joint Liquidity Pool with PrimeDAO
On December 11th, 2021, Balancer DAO and PrimeDAO further aligned their interest through a DAO agreement and a Joint Liquidity Pool totaling over $750,000 at current market value.
The partnership aims to align the parties’ interests to intensify the collaboration between the organizations. With PrimeDAOs relaunch, it seeks to further commit to building on the Balancer Protocol and supporting the decentralization and development of the BalancerDAO.
The current Prime product suite, consisting of Prime Launch (LBP interface), Prime Rating (research sub-DAO), Prime Pools (DAO governed Balancer Pools), and Prime Deals 2 (Interface for DAO agreements), aim to provide substantial value to BalancerDAO and aligned DAOs.
The agreement was discussed in the Balancer Forum and agreed on by Balancer DAO on December 11th and by PrimeDAO on the same day.
Agreement Breakdown
D2D Collaboration
PrimeDAO’s primary aim is enabling D2D collaborations and shares this vision with Balancer. PrimeDAO will support the development of the BalancerDAO and, where possible, share learnings and resources with BalancerDAO.
In addition, BalancerDAO will get early access to Prime Deals, an interface for DAO to DAO interactions, such as token swaps co-liquidity provision, and joint venture formation, to give input to ensure the product serves the needs of BalancerDAO.
Co-liquidity provision
To align governance interests between the two DAOs, a co-liquidity pool is created after the D2D LBP with 25,000 BAL provided by BalancerDAO matched with an equal value in D2D by PrimeDAO. The pool will be owned equally by the two DAOs.
Like the pilot we ran in Q2 2020, the pool will be called the Balancer <> PRIME pool (BLxPR) and function as a liquidity bridge between the two DAOs. The BLxPR pool will be one of the two main liquidity pools of PrimeDAO.
Governance
The BLxPR token will govern the BLxPR snapshot where partnership-related votes can occur. In the future, the new BLxPR token will also be added to the Snapshot strategies of both DAOs to allow BLxPR token holders to participate in the Governance of both protocols.
Pool Optimization
PrimeDAO aims to create deep liquidity between BAL <> D2D to bring more projects and liquidity to the Balancer Protocol. PrimeDAO aims to do this by actively engaging in D2D agreements with other DAOs and creating D2D: DAO pools on the Balancer Protocol.
The BalancerDAO community and technology never cease to amaze me. There is a lot of alignment between PrimeDAO and BalancerDAO regarding vision and values. This DAO agreement will hopefully lead to more cross-pollination between the DAOs! ~ Luuk Weber, Strategic Lead of PrimeDAO
It is awesome to see how PrimeDAO, through its various areas of expertise, is becoming a leading participant in the Balancer ecosystem. PrimeDAO is helping define what DAO2DAO means, and this will benefit not only Balancer but also many other DAOs in the space. ~Fernando Martinelli, Co-founder of Balancer Labs
Get Primed!
We’ve never been more confident that DAO2DAO interactions will drive the future of crypto networks.
It has never been a more exciting point to get involved in Prime and reshape DAO coordination.
If you are committed to enabling DAO 2 DAO innovation and are interested in collaborating with or getting involved in Prime, jump into our Discord now, and let’s get connected!
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