Oct 13, 2021
Introducing SW DAO
The First Structured Products Trading Desk for DeFi
Today we are proud to unveil SW DAO — a community-driven structured product trading desk specialized on DeFi (Decentralized Finance). Our mission is to further the democratization of financial services by bringing innovative and exciting financial products to every DeFi user in the world.
Key Points
- SW DAO is a global community that will launch and maintain the world’s most sophisticated crypto financial products.
- With a highly experienced team, strong community leadership and a first-mover advantage, SW DAO has the pieces in place to develop into the largest provider of structured products and derivatives in DeFi.
- SWD is SW DAO’s native token. It enables community ownership and governance with 66% being allocated to the community.
- On top of an initial SWD distribution to community members there will be an initial community offering, followed by a liquidity mining program.
Who we are
Founded in 2017, SW DAO is a proprietary crypto trading firm focused on quantitative and machine learning-driven strategies. Our headquarters is based in Germany but our global team is comprised of analysts and traders from all five continents.
In addition to our proprietary trading, we have managed outside capital exceeding $50M, built a market-outperforming public track record with trading strategies on StackedInvest and TokenSets and funded multiple successful projects in the DeFi asset management space.
Motivation
With the advent of the new DeFi paradigm and the subsequent build-out of protocols that form the base layer of a new financial system, we are finally at the stage where interoperable applications and complex financial products can be built on existing DeFi infrastructure.
Our mission is to bring DeFi products like derivatives, structured products and actively managed strategies to all crypto users.
Unlike the traditional financial system, DeFi allows treating all users equally — no matter their account size. We aim to further the dream of financial democratization and inclusion by offering financial products to the masses that were previously only available to institutions and the wealthiest 0.1%.
Opportunity
Building structured products on DeFi offers the unique opportunity to serve users at every level. One arm of our organization will cater towards the masses with retail-friendly products like thematic indices, actively managed strategies and automated yield generation. Another arm of our organization will offer derivatives that professional crypto traders have always wanted in order to get exposure to new payout streams and finetune their exposure.
Our aim is to achieve this by building on top of various on-chain protocols, composing them together to achieve some specific risk objective while staying 100% transparent at all times. Furthermore, anyone who has access to the Ethereum network can interact with these contracts. No need to go to a broker or investment bank.
Our DAO structure will allow us to build up a balance sheet and provide liquidity for our products — removing the need for inefficient AMM pools and offering tighter spreads and better liquidity to traders.
With yields starting to compress across all protocols in DeFi, we’re expecting the demand for alternative yield opportunities through structured products to rise immensely over the coming years. This is exactly where we see our opportunity.
Vision
Our vision is that SW DAO will become the go-to destination for all structured products and derivatives in DeFi — with a trader at your disposal at all times. This means that we do not only want to have a suite of products that are available to trade right off the bat but we also want to provide custom products on demand.
Imagine having an OTC desk readily available, 24/7, who you can talk to and who will be able to underwrite any risk that you want to trade: Want to bet on the Kimchi premium collapsing? Reach out to SW to underwrite some options. Need some protection for your Cryptopunk inventory? SW has you covered.
Products
We envision SW DAO’s products spanning three broad categories: Indices, Strategies and Yield.
Indices
- Thematic: DeFi segments, VC portfolios
- Systematic: value, growth, smart beta
- Overlays: base asset + derivative overlay (convexity)
- Custom: volatility, altcoin dominance index
Strategies
- Actively managed: Portfolios and trading strategies
- Vaults: DCA and ‘Buy the Dip’ strategies
- Special purpose: tail risk hedging, long volatility
- Derivatives: Altcoin options, total returns swaps, variance swaps
Yield
- Automated yield farming: Uniswap, Sushi, etc.
- Options-based: Call overwriting, short volatility
- Bonds: Yield from uncollateralized lending
The SW DAO
SW DAO is a community-led decentralized organization focused on enabling the creation and adoption of DeFi structured products. To achieve this, we hope to see SW DAO collaborate with experts in quantitative finance, crypto, branding, marketing and operations in order to create, govern and grow our products.
SWD Governance Token
The SW DAO will launch with a native token (ERC20) called SWD that aligns the DAO with its holders, enabling community-led ownership and governance. SWD holders are responsible for decisions including:
- Adding Products: Creating new products and managing existing ones.
- Controlling the Community Treasury: To attract talented developers, analysts, traders and marketers, SW DAO will run incentive programs to attract and retain talent.
- Updating Fee Configurations: Structured products are monetized through management fees and spreads. The community will be responsible for finding the correct balance in deploying value accrual mechanisms to capture these fees/spreads.
- Access to the community: Our community will largely be limited to SWD token holders in order to keep our competitive advantage in terms of our pricing/trading models and to ensure a high quality of participants.
Token Allocation
There will be a total supply of 1 million SWD tokens with the following distribution:
- Community Airdrop: 6%
- Private Sale: 10%
- Launchpad Offering: 5%
- Liquidity Mining Program: 6%
- Team: 24%
- DAO Treasury: 49%
Community Airdrop
A distribution of 6% of all SWD tokens (60,000 tokens) is reserved for members of our Discord community.
All eligible members have already received their distribution via an airdrop.
Private Sale
10% of total supply was sold to a group of strategic investors at an average price of $7.5/SWD (announcement will follow shortly). 5% of tokens are available starting today with the remaining 5% of tokens being vested linearly at every Ethereum block over a period of 24 months (starting at project launch).
Community Sale
5% of supply is reserved for a community sale. This event will take place around project launch. More details will follow in a separate announcement.
Liquidity Mining Program
6% of all SWD tokens have been allocated to a liquidity mining program. This program will run for a period of 6 months (starting at project launch), and SWD tokens released under this program are not subject to vesting. Details of this program will follow in a separate announcement.
Team Allocation
24% of the total SWD supply will be allocated to our team of quants, traders, and developers. 8% of tokens are available starting today with the remaining tokens (16% of total supply) being vested linearly at every Ethereum block over a period of 18 months (starting at project launch).
DAO Treasury
49% of all SWD tokens have been allocated to a community treasury. 4% of all tokens are available starting today with the remaining tokens (45% of supply) being vested linearly at every Ethereum block over a period of 36 months (starting at project launch).
Governance Process
SW DAO will follow the principles of progressive decentralization. To ensure a safe and secure transition that allows the community time to adopt governance responsibilities, there will be an initial transitionary period where the SW DAO team has the ability to make technical and safety-related decisions via multisig before governance is transitioned completely on-chain and over to the community.
Our vision for the community governance process:
- New initiatives begin their life on Discord where they are discussed and formalized (anyone can bring up a governance topic)
- Initially, voting on proposals will happen on Discord
- Later, proposals voting will be moved to a Snapshot.page for token holder voting
Multi Chain Presence
SW DAO’s products will initially be available on the Ethereum mainnet. Deployments on Polygon, BSC, Solana and Terra Luna will follow.
Smart Contracts
SWD Token: 0x1fd154b4d0e3753b714b511a53fe1fb72dc7ae1c
SW DAO Multi-signature Wallet: 0x52dddf6a08d2787f2629d582921a684a9e4d2e31
Uniswap SWD/ETH Pool: 0x772eb8fc45dcad1722f27fc966e25786a1838745
Sushiswap SWD/ETH Pool: 0xdaecbba628630ad8692ddd708702ffb726aba13e
Get Involved
- Join the community on Discord by clicking here
- Follow us on Twitter to get the latest news
- Check out our website
