HAI DAMO is a DAO-operated asset management organization that is currently building decentralized investment vehicles to hedge risk in the crypto asset class. The DAO is focused on providing different users with a hedge as well as additional yield on their idle LP tokens in order to create collateral-backed risk-optimized investment vehicles.
Currently we are halfway through our liquidity mining campaign and will be launching a more sustainable way to incentivize LPs through a mechanism called Capitalization, in which the user can exchange their LP token for discounted DAMO. Then will come staking, which is designed highlight DAMO’s fundamental purpose; Governance. Yield provided by DIVs will be far more sustainable for users as they are able to redeem the real underlying assets, this means we are able to provide a competitive yield with real rewards. As we roll out the platform features over these next few months, HAI DAMO will turn into the omni protocol that we are building it to be.
Capitalization
Currently we are halfway through our liquidity mining campaign, we will be launching a more sustainable way to incentivize LPs. The mechanism we will introduce is capitalization, and will come just days before the campaign ends. This will be the initial state for capitalization, as it will evolve into much further. Capitalization allows for users to exchange their LP tokens for DAMO at a discount (inspired by the Olympus Bonding mechanism) and will be the first step in the protocol acquiring DAMO liquidity. Protocol owned liquidity is a new concept that allows protocols to ensure there is secondary market liquidity, without needing to provide an unsustainable APY to rent the capital needed. We have meticulously chosen the most sustainable practices within DeFi to ensure the longevity of the protocol and will continue to do so in every instant, the craftsmanship involved is unparalleled.
Staking
Staking will follow shortly after capitalization once all the contracts are audited. Staking will enable users to use DAMO for its fundamental purpose; Governance, whilst earning multiple assets as rewards. Governance participation is of high value and the multi-asset reward system allows us to further incentivize this participation in a sustainable manner. In the words of Charles Munger “Show me the incentives and I will show you the outcome”. Just like us, Munger realized that people only participate when they have a reason to, DAMO gives them that reason. By utilizing DAMO, participants can unlock further value within the system that gives them access to the real underlying asset rewards. Unlocking the realms of Meta Governance, DAMO poses high value for the yield seeking investor or protocol. This is a far more productive system as the governance token can encourage participation without using itself as the reward, by doing this, it only further cements itself as a token which can retain its value and serve its purpose as opposed to a reward token. Simply put, staking within the HAI DAMO ecosystem will offer you a multi-asset reward system (MAR) that incentivizes participation without diluting the DAMO token. Sustainable DeFi lies within an infinity sum mindset, we are adding value as opposed to leaching it
Decentralized Investment Vehicles
Decentralized Investment Vehicles or DIVs play an integral role in the HAI DAMO ecosystem. Within this ecosystem, there are three different user groups; the hedgooor, the arbitragooor, and the yield seeking investooor. We acknowledge that there are different user groups within any market and aim to supplement them all with one useful product, DIVs. With a typical yield farm, users provide liquidity and receive an inflationary farm token to further incentivize liquidity providers, the issue with this is that every yield seeking investor is receiving this juicy APY. This creates unsustainable price action for the token as too much sell pressure is eventually introduced as the token is farmed for rewards to be sold. This can lead to the position being unprofitable despite earning such a high APY. The yield provided by DIVs will be far more sustainable for users as they are able to redeem the real underlying assets, this means we are able to provide a competitive yield with real rewards. This is essential in creating and sustaining secondary market liquidity for our DIVs. A system designed to adequately incentivize large market participation without harming the integrity of the protocol.
Summary
We will be rolling out each mechanic during these next few months and can’t wait to share them with you, it will shape DAMO into the omni protocol that we are building it to be. DAMO governance politics will become increasingly more complex when meta governance and partnerships come to play. We are aiming to place ourselves as a DeFi lego block and help take this space one step further. The future of DIVs is bright with sustainable yield just around the corner. With our first product, we have the ability to push what’s possible within the realm of DeFi and maximize our capital efficiency. Stay tuned, anon. We are just getting started.
Links:
Website: https://haidamo.io
Stake LP: https://haidamo.defiterm.io
Discord: https://discord.gg/ASuP4mxzS9
Twitter: https://twitter.com/thehaidamo
