As a xDAI-specific support DAO, our job is chiefly to promote the expansive ecosystem of dApps that call xDAI home, inspired by the no-nonsense approach Igor Barinov, Victor Baranov, Vadim Arasev & other impactful members of the xDAI dev team take to delivering solutions and community building behind this sensational Layer-2 EVM platform.
In short, we help fledgling platforms scale.
In crypto there's a distasteful tendency, especially among Blockchain-specific VCs, to have people pitch them on a project, thank them for their time, and immediately begin forking the project before the seat being sat in has had time to cool.
We like to encourage first-mover advantage and active innovation on xDAI so when a project comes in and delivers a working, honest-to-goodness project and stakes several thousand of their own xDAI into the project. If the majority of devs sat on the sideline and waited for someone else to build out a use case or have another set of devs figure out all of the bugs, allowing them to swoop in later with this cleaned-up code, then the impetus for development would be reversed. This is less than ideal.
One of the projects that enjoys a robust community, and a 20MM market cap, is DxDAO. Their projects include Swapr, a fun Uniswap-type 50-50 staking pool platform with farming capabilities & Omen, the prediction pool, based on the Gnosis Conditional Tokens.
From earlier in the month, we starting the liquidity mining farm on Swapr. It was a success and the participants enjoyed a 10,000 RxDAI earnings from about 200 WxDAI, so essentially 50% for 2 weeks--not too bad of an investment. The "APY" in this instance is off because it's a 14-day lock as opposed to a yearly calculation. 50% expressed in an APR would turn $1 into $37876 in a year's time so actual APR is sky-high. This really is a way of introducing a way of awarding long-standing liquidity providers and airdrop recipients for helping to provide liquidity to our xDAI DAO.
Essentially, you create liquidity in the RxDAI/WxDAI pool on Swapr then add those LP tokens to the Reward Program. During this 2-week window LP interest is withdrawable, but principal is not.
Mint LP tokens then Stake to Join the RxDAI Farm Pool
What we we doing with this liquidity?
Well, this takes us to Omen, the aforementioned prediction marketplace.
This platform makes it easy to introduce three of the most popular markets: sports, options, and
If you're a fellow Solidity developer and want to get into the weeds of conditional and scaling markets, you're welcome to do so. We're always looking for Solidity devs as part of the DAO here.
So for this market, we're working with one of our sports bet aggregator developers, a member of the DAO, that can create parlay bets through decentralized sports protocols. What this permits him to do is create a market for this where someone can set-up, decentralized, a 99x parlay based on the unlikely event of 3 draws on 3 important premier league games.
As part of this categorical market, after the events have happened the market creator, this DAO's devs, can post a bond and determine the winner. During the 24-hour settlement period anyone can post a bond to have the decision contested and go to a trusted, neutral 3rd party: Kleros.
This removes the difficulty of having invalid markets, the type of problems that plagued Augur for the longest time. Market makers would create a market like "Will Bitcoin be worth more than $1 in a week" or something that seemed highly probable to be a YES in terms of a binary result. After there would be a rush of bets in favor of that event, they would set the market as invalid and it would return value at a 50/50 split, such that the 1% tokens they held--and where unpopular--that Bitcoin would be sub-$1 now just 50x-ed.
Omen offers an abundance of provisions to prevent against such chicanery.
So, for this draw market, someone would put in, say 0.01 xDAI, that these regulation time draws would not result. If all 3 happened then their 0.01 would be returned with 1, a 100x return before fees.
Omen Sports Prediction Market Created by xDAI DAO Liquidity Partner
Based on demand, we hope to encourage Omen-specific bets for sportsbook or racebook markets, providing a trading fee for the xDAI DAO and demonstrated traction for Oman/DxDAO.
More liquidity for RxDAI, our 100:1 xDAI DAO stablecoin, means that we can provide deeper liquidity for these markets, and, in turn, earn more trading fees for making the markets in the process.
Also, market making in general affords ample opportunity for the DAO to materialize low-risk profits.
For example, in this circumstance, the current NAV discount on GBTC is -10%. Additional liquidity will permit the opportunity for a squeeze where one might go long GBTC & short BTC/USD such that if there is a convergence that a 10% jump would more than make-up for the loss on a "Yes" bet. There are also risk management measures such that if the NAV discount went to -1%, say, that one would hedge the position so that the loss would only actually be 3x--going from 87.15% to 50%--that would be handsomely eclipsed by the 10% appreciation on the GBTC/BTC squeeze.
Omen Categorial Crypto Prediction Market Created by xDAI DAO Liquidity Partner
If properly risk-mitigated, the only risk on many of these trades is the platform risk, and when it comes to clean code, which this is to my eye and the thousands of DXDAO investors, the possibility of platform risk is historically low. You may hear about exploits on the news, but the number of dApps--run by well-regarded, top-level tech talent--versus the projects that get rug pulled are vastly tilted in favor of honest projects ruling the day. Almost always there are red flags that engage in scammy, shady behavior in the weeks leading-up to a rug-pull or code with glaring vulnerability holes, ripe for penetration. We feel it's a risk worth taking to encourage dApp development and innovation so, as an innovation studio and xDAI nurturing DAO, we are in the business of helping projects, all the while mitigating risk and being savvy while traversing the Wild Wild West of crypto.
Speaking of trading, remember our Epor.io/NFTsDAO push for NFTs linked to crypto positions, in this instance 1000 Doge.
xDAI DAO's Crypto-linked NFT on Epor.io, a project in partnership with NFTsDAO
Ways to get RxDAI:
- NFT: on xDAI NFT platform or Opensea
- Honeyswap/Swapr Pools
- Monthly airdrops for community engagements from posting or commenting on our r/xDAI DAO Home
What to do with RxDAI:
- Stake it on Swapr's RxDAI Farm
- Use it as a trading hedge to get in our out of a volatile crypto position.
- Profit by buying it when it's less than $0.01 in value on Swapr or Honeyswap, as the liquidity bots push the price back to $0.01 by default.
Goals for the DAO:
- Grow xDAI into a top tier Layer-2 EVM, based on market cap and utility
- Create a bag to HODL for top community members and whales, extending liquidity to our DAO
- Create weekly updates and quality content that speaks to the values and important use cases of the community
- Extend value to those contributing most generously to the DAO and allow them to build their portfolio and ignite their careers in blockchain or tech.
- Continually provide high APR means for active community members to receive value for being LP in liquidity pools.
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