Leveraging DAOs for Collective Financial Power
Introduction
In an era where decentralisation is the norm, we’re excited to introduce Libree, a Dapp designed to redefine traditional investment clubs.
Leveraging the power of Decentralised Autonomous Organizations (DAOs), Libree offers a transparent, efficient, and democratised approach to collective investing. This project ushers in a new era where investing is not just shared, but also automated, opening doors to global opportunities like never before. Stay tuned as we explore this groundbreaking solution, designed to bring the future of investment clubs into the present.
Background
Despite the transformative potential of DAOs, a few key challenges have hindered their widespread adoption and utility.
One prominent issue has been the low participation of DAO members. One of the reasons behind this, is the lack of tangible economic outcomes of some of the proposals made within a DAO (e.g. a proposal about a technical change). This lack of tangible incentives often results in low engagement, which limits the DAOs effectiveness.
Further, even when a DAO has high participation, it requires a manual execution and monitoring of all underlying actions within the proposal. This is usually a complex process for non-technical users, especially when it comes to triggering on-chain actions post-consensus. This requires DAOs to transfer their treasury outside the DAO and to use external tools. Consequently this process is currently not only inefficient but also prone to errors and abuse.
Additionally, there is currently no framework that allows DAOs to operate in a structured, organised and lean manner. This is another bottleneck that prevents fast coordination and decision-making (e.g. split treasury into a Grant budget, Development budget…etc).
All the above explain why there is still a huge underserved market and highlights all the potential that DAOs have. Current investment DAOs are not designed to onboard and provide simple experiences, which is a key failure, especially for the less DeFi experienced users, which contributes to the slow adoption of DAOs.
Project overview
Libree’s mission is to deliver a simple, customisable and accessible experience into DeFi.
Libree has designed a customer journey that allows users to get the experience they expect, regardless of technical expertise, ensuring fully engaging communities.
To achieve this, Libree incorporates different governance and participation options that ensures the best fit for each user type.
Users can also propose initiatives through an intuitive interface which will be automatically triggered on-chain if approved. This seamless integration removes the need for manual processes or the use of external tools, which are less secured and manual, therefore enabling a frictionless decision-making process and operations.
We’ve also implemented a unified dashboard where DAO members can monitor all investments and earnings in real-time, ensuring unparalleled transparency and engagement.
Libree’s dynamic architecture allows DAOs to customise their functionalities by adding or removing plugins based on their unique requirements and without any code experience.
Accessibility is at the core of Libree, with investments proceeding autonomously upon proposal approval, leveraging smart contracts.
This approach not only enhances transparency but also efficiency, decision-making, voting processes and incentives to make it an inclusive experience.
Features
As mentioned, our Dapp stands out with a unique plugin system, allowing each DAO to dynamically customise its features as needed.
This is complemented by a seamless cross-protocol integration that enables members to interact with other protocols directly within their DAO, fostering a more interconnected blockchain experience.
Libree currently offers DAO managers to choose from 2 different ready to use templates:
Smart DAO: though for Web3 beginner members who are not interested in actively participating in DAO decision making but who want to get exposure to DeFi.
- No voting
- Investment exposure
- Pool investment
Unity DAO: for engaged communities and DeFi expert members:
- Can actively vote and set default voting
- Can have a direct economic incentive if the proposal success
Libree also offers the possibility of creating a DAO from zero and selecting all these parameters individually.
Regardless of the type of template a manager chooses, all DAOs can benefit from these optional features:
- Sub-groups creation: ability to form smaller sub-groups within the DAO, each with their designated budgets, expediting the decision-making process while still maintaining control within the main DAO.
- Hybrid Voting: economic tokens without voting rights
- SSO with Account Abstraction onboarding and access
- Treasury deposit in AAVE
- AAVE Credit Delegation
- Uniswap liquidity providing and swaps
- Credit & Impact marketplace: invest in collateralised opportunities
- Reward-based proposals: ensure your DAO member have skin in the game with rewards or penalties based on their proposals performance
- Financial Dashboard: comprehensive DAO performance history
- Notifications: smart notifications for new opportunities, performance or credit alerts
- Off chain registry
- Creation of automated strategies
One of the key breakthroughs of Libree is the possibility of offering members a straightforward mechanism to convert DAO tokens into liquid assets and to issue “economic tokens”. These tokens will allow DAO members to:
- Mint/burn DAO tokens in a primary market at nominal value. This will allow users to trade tokens through a simple and automatic process.
- Participate and benefit from the economic rewards of a DAO without blocking the operational and decision making process. Therefore increasing operational effectiveness and economic incentives for DAO members
This plugin will now allow all existing and new DAOs to improve their financial capabilities by enabling widely used funding activities (e.g. capital increase).
Since the DAOs market is expected to reach $1Tr by 2032 and to become the primary vehicle for institutional investment, this plugin will play a crucial role in enabling this adoption.
We believe this project will showcase the potential of chainlink functions to calculate their TVL or NAV without spending high cost in gas prices.
Libree is also providing “Premium features” that unlock the potential for DAOs to invest in real-world assets, providing a novel link between decentralised and traditional investment practices. Moreover, our Dapp enhances investment efficiency with its automated feature, keeping the DAO’s treasury continuously invested and maximising financial utility.
Project Roadmap
Libree’s roadmap has been meticulously crafted to ensure steady, meaningful progress. The initial release focuses on laying the foundation of our platform, enabling users to create their own investment clubs. This version includes essential features such as:
- The first iteration of our unique plugin system
- Automatisation of the DAO’s treasury investment
- The creation of Sub-DAO groups with designated budgets for efficient decision-making
As we progress to our next version, we plan to significantly extend the utility of our Dapp by integrating it with more protocols. This will empower DAOs to directly fund opportunities and equitably distribute earnings among all members, further democratising the investment process.
Looking further ahead, our subsequent releases are designed to bring even more groundbreaking capabilities to our Dapp.
Real-world assets will become an integral part of the investment options, adding a tangible dimension to the digital DAO environment. Alongside this, we’ll introduce functionality to enable DAOs to form their own Limited Liability Companies (LLCs) for institutional users to ensure a secure and compliant framework for members participating in real-world assets.
Our roadmap underlines our commitment to continual growth and evolution, always seeking to empower our users with more versatile, secure, and efficient investment tools.
How to get involved
We’re eager for community involvement in our mission. Your ideas and feedback are essential to our project.
Explore our web page to learn more and contribute your thoughts.
Join the conversation on Twitter for regular updates and discussions. Your engagement helps expand our reach and shape our development.
Finally, connect with us on our Discord server for in-depth discussions and collaborations. Every voice matters in our thriving community.
We eagerly anticipate your valuable participation in shaping the future of investment clubs.
Conclusion
As we venture into this exciting new era of collective and democratised investing, we’re confident that Libree’s innovative approach will redefine how investment clubs operate. Leveraging the power of DAOs and blockchain technology, we’re committed to providing a platform that’s accessible, transparent, and efficient. However, the success of this endeavour rests not just with us, but with our vibrant community.
Your involvement, feedback, and ideas will play a crucial role in shaping this project. Together, we can navigate the complexities of the decentralised investment landscape and usher in a new age of financial empowerment. Join us on this journey as we strive to revolutionise investment clubs and bring forth a new wave of financial democracy.
