Protect DAO funds and build Liquidity in your governance token

codingsh

Summary:

The financial power of decentralized organizations has been increasing exponentially over time and this makes every DAO has a target in its treasure trove. This target can be reached with the massive purchase of governance tokens. After a lot of thinking and analyzing the market behavior I have a proposal to build together with my getDAOcash tool.

Motivation

One of the problems for a DAO is the massive dumping of governance tokens in the retail market, even more so when the market is down. Using the Alchemix DAO core we managed to eliminate this risk.

Action

I propose the development of an application on top of Alchemix DAO that we can send a part of the treasure of DAO to proceed in Alchemix DAO. And the part of the income that the Alchemix generates, we will buy back our governance tokens. This proposal is a platform and a generator of liquidity for us to continue to build and finance technologies for DAOS

Specification

For the construction of this platform and contracts I would like 10 ALETH Grants for the development of contracts and DAPP and thus open new proposals in other DAOS to start using the platform.

Transfer 10 ALETH to getdaocash.eth

Builder Ref

github.com/developerfred
gitcoin.com/developerfred
twitter.com/codingsh

ov3rkoalafied

codingsh Can this be summarized as basically offering to build a tool that automatically buys back ALCX with DAO treasury funds? or am I misunderstanding

codingsh

So the idea is a DAO tool for DAO. An Example DAO GTC wants to buy back GTC with USDC. instead of depositing directly in Alchemix, it will deposit in the getDAOcash tool (which will serve as a tunnel and manager):

Within the scope of GetDAOcash all capital will be invested in Alchemix. But getDAOcash will listen to the vault income for a period N, when it has the necessary income, GetDAOCash automatically buys GTC tokens (defined by DAO).

In short DAO (Gitcoin) -> would use GetDAOCash tool, which in turn would deposit to Alchemix, Alchemix Return Profit to getDAOcash, which interacts with Dexs to buy GTC tokens at retail. getDAOcash returns this token to the DAO Treasury (gitcoin).

It is a buybak system with the balance of treasury income and would not only work with ALCX, but with any DAO

IMIMIM

Maybe I'd have to see it in action, but this doesn't seem KISS-simple

n4n0

So something like this then? https://imgur.com/a/LN6vN3o

Because in this constellation I don't really know what Alchemix is supposed to be doing if the tool does not take up a loan from the vault to buyback the governance token instead of waiting for yield to trickle back. Or am I misunderstanding something?

And I also don't quite get the point of the tool as the DAO could do it themselves just fine without additional friction.

codingsh

Your flowchart is right it would only change the return of the governance token because it goes straight to the DAO treasury.

As Alchemix offers this lending support, I believe we can default to a bolder strategy. Purchase with a percentage x of the collateral loan. This is even cool because the tool already performs a purchase on the first interaction.

Yes, the DAO could do it alone, but it would take a proposal, this proposal being approved and having the common ground for it to go forward.

The purpose of this platform is to have the power to vote on the DAO and protect it, imagine that in the future there will be a war to buy ALCX, DAO will always be buying ALCX ahead of the market. Before there is high demand for the token.

Benefits:

Investment / Opportunity
net capital returning to the DAO
Value to the governance token

This is a tool that uses Alchemix under the hood, I believe we can evolve it to have more financial exposure and give more power to the DAO that use it.

n4n0

codingsh But using this instead of directly deploying treasury funds into Alchemix would also require a governance vote. I really don't get why this even needs to exist tbh;

If I had a DAO, why would I use this tool instead of doing everything myself? What's the fee of using the tool?

codingsh

n4n0

In the house it would only be a proposal to be approved.

Example send X to getDAOcash. From that moment on, the DAO creates an automation of leverage and repurchase of tokens.

Yes you can do all this alone create a proposal to use the treasure in alchemix and then create another proposal to make a loan in alquimix. And finally it creates a proposal for buyback d and governance.

This whole process collides with the barrier of time and lack of opportunity. A function in automation only generating funds for p DAO and different from the process of capitaniating votes for a proposal to be approved.

On the utilisation rate, uniswap has a rate of 0.03% for liquidity providers. How should I have to pay the gas fees? I believe we were able to charge the 0.01% fee and a fixed amount to activate the getDAOCash factory contract.

So this long-term tool is very good for DAO fund management and token repurchase. Today you can see a lot of wallets with treasure stopped. There are some bolder DAO invested in the lido. But that's very difficult to see.

One of the pillars of a DAO is being Autonomous, a system of how this generates an autonomous never seen before. I'm happy with what I'm built and presenting this to the Alchemix community was a big step because I'm going to use your contracts in GetDAOCash Core.