As the name suggests, a DAO or a Decentralized Autonomous Organization is an organization where all its functions are performed by computer programs (smart contracts) that are not controlled by any centralized party but instead governed by voting (on the blockchain) of all its participants/stakeholders.
DAOs aim to solve the age-old dilemma in political science & economics called the “principal-agent problem”. We often see that in traditional companies, the manager (the agent) of the company can make certain decisions in their own interest which are contrary to those of the stakeholders (the principals). When this happens, the stakeholders are left to enforce on the legal contracts in their legal jurisdiction which costs money and time — after the occurrence of the bad event. Members of a DAO are not bound together by a legal entity or formal legal contracts. They are instead governed only through common incentives tied to the performance of the organization.
DAOversify is our attempt at building a fund management organization in the decentralized world providing individuals with exposure to all types of asset classes within the #DeFi space to help build long term wealth while paying extremely low fees.
We are using the Dandelion Organization by 1hive. This gives the “rage quit” functionality we needed before launching our DAO. The smart contracts of Dandelion have been audited by Consensys Diligence.
Rage quit is a functionality developed by MolachDAO which allows investors to quit with there share of the invest in the DAO. This protects the investors from a 51% attack, where the attacker votes to receive all funds in his wallet. Rage Quitting can also be used if you strongly disagree with the majority’s decision. At this juncture, you will have 3 days to choose if you want to rage quit and leave with your share or not. Rage quit is made possible because of the Aragon Apps created by Dandelion. One someone rage quits they would not be allowed back into the DAO.
Dandelion Apps Making this Possible
- Token Request– A member of the DAO can submit a proposal to the other members of the DAO for letting someone inside the DAO with a token request. Eg. 5000 DAI for 1000 DSFY(DAO Tokens). If this passes the vote then you are accepted into the DAO.
- Redemptions-Allows us to grant their token holders the right to redeem tokens in exchange for a proportional share of our treasury assets. At any time any DAO member can give up his membership to gain the underlying asset proportional to his DSFY.
- Dandelion Voting– DAO members have 4 days to cast a vote. Once a vote is cast it cannot be changed. There is a minimum Quorum of 5%(At least 5% of the DSFY should be used to cast a vote.).
- Time lock — Investors would have to lock 15 DAI Tokens for 12 hours before creating a proposal. If the wish to create another vote within 3 hours they must stake 50% more as a spam penalty.
- Delay — After a successful vote there will be a delay of 3 days where investors can choose to rage quit.
To Invest you can contact us via Discord or Twitter. You can also send us an email to which we will probably respond a bit slower. There will be an entry fee of 1.2% to facilitate the use of gas to interact with protocols as well as an incentive to be an early investor. This entry fee is received by the DAO and so is paid to the DAO shareholders. For the two weeks, we will be open to the first round of investors where there will be an entry fee of 0.5%. There will be two modes of the DAO – Bull mode and Bear mode (decided by the shareholders.) Accordingly, the theme of our investments would either be focused on stable growth or high growth.
DAOversify will be run on two modes, Bear mode, and Bull mode when in bull mode DAOversify will focus on capitalizing on growth opportunities for higher profits by investing in cryptocurrencies such as wBTC, ETH, token sets, and providing liquidity. During Bear mode, the DAO will invest into interest accruing stablecoins as well as providing liquidity.