FIAT DAO 🤝 PrimeDAO: Building the Future of Fixed-Income Assets in DeFi

Announcing the next token swap on Prime Deals

TL;DR

FIAT DAO is bringing over innovative solutions for fixed-income leverage from TradFi to DeFi, enabling DeFi participants to get leverage on their DeFi assets. PrimeDAO is building ways for DAOs in DeFi to be more resilient by making it easier to cooperate. This agreement will help both of them build together and cooperate on the future of veBAL.

On the Deal

PrimeDAO has swapped 148,85 $D2D in exchange for 1,661,199 $FDT, FIAT DAO’s governance token.

The two DAOs have agreed to no vesting or cliff on the swapped tokens.

The primary goal of this initial token swap will be to align incentives between holders of FDT and D2D, as mutual ownership helps create positive-sum games for both projects.

To be more specific, as PrimeDAO Steward Luuk pointed out on FIAT DAO governance forum, there are other ways D2D can be utilized by FIAT DAO:

• It can be used to provide liquidity to D2D pools on Balancer earning between 40–120% APR
• PrimeDAO also holds a large amount of GTC, BAL, OHM which can be used to vote on a proposal
• Holding D2D will help holders dictate the product roadmap, as PrimeDAO is defining new governance to hand over control of the Prime Product Suite to D2D holders and lockers

On the FIAT DAO side, the agreement hopes to collaborate on the veBAL front, with the two communities actively exploring new synergies.

FIAT DAO is now moving its FDT liquidity to the FDT/ETH 80/20 pool on Balancer Finance. Securing Balancer reward emissions for users who provide liquidity to the pool is one of the major reasons to participate in the swap, as Prime has been working closely with Balancer from day 1 and is an active participant in the future design of veBAL.

PrimeDAO will combine the received FDT tokens with WETH and add them to the FDT / WETH Balancer Liquidity Pool, and spend some of its veBAL to support this pool in future veBAL cycles by voting in favor of it.

Apart from initial liquidity provisioning, FIAT DAO intends to leverage Prime Deals for any future DAO swaps and Prime pools for token liquidity optimization.

On PrimeDAO

PrimeDAO focuses on researching and developing next-generation coordination tools for decentralized organizations. PrimeDAO is committed to enable DAO2DAO innovation through its products, which can help any DAO launch a token, make a deal, form a joint liquidity pool or venture, and inform DeFi participants on what they’re doing and how they’re doing it.

On FIAT DAO

The FIAT protocol allows you to borrow based on your positions in fixed-income assets issued by major DeFi protocols with a high loan-to-value ratio and low fees. It’s bringing TradFi derivative primitives to DeFi, and managing the protocol with the FIAT DAO.

Currently, FIAT DAO has accepted specific collateral from Notional Finance, Element Finance, and Yield Protocol. FIAT DAO is designing a future for all locked DeFi positions to eventually be represented as bonds, rather than inaccessible stakes as it already happens in TradFi.

Get Primed!

We’ve never been more confident that DAO2DAO interactions will drive the future of crypto networks — we think the best way to bring this future into being is to build it.

If that interests you, there’s never been a more exciting point to get involved in Prime and reshape DAO coordination.

If you are a member of a DAO looking to join the networked DAO ecosystem by executing an on-chain agreement with Prime Deals, reach out to us here, or just jump into Prime Deals yourself and start exploring.

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!