PWN DAOCryptonatives: Jarrad Hope
When’s the last time that a conversation truly blew your mind? For us, it was the recent chat that we had with Jarrad Hope, Co-Founder and CEO of Status. Status is self-described as a tool that “brings the power of Ethereum into your pocket by combining a messenger, crypto-wallet, and Web3 browser”. Not only is there so much packed into its functionality, but there’s also a deeper purpose behind why Status was founded — it’s on a mission to protect individuals’ privacy, combat mass surveillan...
PWN DAOReputation Scores Are Coming to PWN: A Native Way to Know Your Peers
Forget KYC! PWN DAO is bringing you something better: rep! In today's DeFi world, you often only know a wallet address when leveraging the power of smart contracts to transact. But in peer-to-peer lending, understanding who your counterparty is can help you land better terms on both sides. Knowing that your peer has been active and maintains a solid on-chain history increases the likelihood of them staying true to their rep, like always repaying on time. That’s why we’ve created a reputa...
PWN DAO10 Years, Zero Downtime. Will we be there in the next 10?
So we’ve made it. Or have we? For the first time in human history, a technology has run non-stop for an entire decade. No resets. No scheduled maintenance. No single stall in 315,360,000 seconds of operation. That technology wasn’t a nuclear power plant. It wasn’t the banking system. It wasn’t Bitcoin either. It was Ethereum. Once again, Ethereum has redefined what’s possible. Of course, one can argue it’s easier to ensure uptime if "uptime" merely means at least one computer in the entire ne...
The Universal Lending Protocol for the Tokenized Economy. Earn on fixed-rate loans 🤝 Borrow with any token.
PWN DAOCryptonatives: Jarrad Hope
When’s the last time that a conversation truly blew your mind? For us, it was the recent chat that we had with Jarrad Hope, Co-Founder and CEO of Status. Status is self-described as a tool that “brings the power of Ethereum into your pocket by combining a messenger, crypto-wallet, and Web3 browser”. Not only is there so much packed into its functionality, but there’s also a deeper purpose behind why Status was founded — it’s on a mission to protect individuals’ privacy, combat mass surveillan...
PWN DAOReputation Scores Are Coming to PWN: A Native Way to Know Your Peers
Forget KYC! PWN DAO is bringing you something better: rep! In today's DeFi world, you often only know a wallet address when leveraging the power of smart contracts to transact. But in peer-to-peer lending, understanding who your counterparty is can help you land better terms on both sides. Knowing that your peer has been active and maintains a solid on-chain history increases the likelihood of them staying true to their rep, like always repaying on time. That’s why we’ve created a reputa...
PWN DAO10 Years, Zero Downtime. Will we be there in the next 10?
So we’ve made it. Or have we? For the first time in human history, a technology has run non-stop for an entire decade. No resets. No scheduled maintenance. No single stall in 315,360,000 seconds of operation. That technology wasn’t a nuclear power plant. It wasn’t the banking system. It wasn’t Bitcoin either. It was Ethereum. Once again, Ethereum has redefined what’s possible. Of course, one can argue it’s easier to ensure uptime if "uptime" merely means at least one computer in the entire ne...
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The Universal Lending Protocol for the Tokenized Economy. Earn on fixed-rate loans 🤝 Borrow with any token.
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When I first learned about the size of DAO treasuries, I was surprised at how many DAOs there are and their total value. Then, I dug deeper and learned about the current utilization of these funds, and I was truly shocked.
According to DAO analytics site DeepDAO, there is currently $9.7 billion held in DAO treasuries as of October 17, 2022, across all networks. These figures are the same as in March 2022, and considering the current market environment that we’re in, it is good to know that there’s some stability that we can count on.
That said, the top ten treasuries are all on the Ethereum blockchain and account for over 70% of the total value held in DAO treasuries today.
The goal behind writing up this post is to dig into the utilization of DAO treasuries. To do so, I’ll be taking a look at the following topics:
Goals for DAO treasuries as per my conversations with treasuries themselves
Asset allocation and utilization of these treasuries
Diversification opportunities, including borrowing
Many will agree that we’re super early when it comes to DAOs, and we’re even earlier when it comes to treasury management. The majority of DAOs that I’ve spoken with over the past few months have mentioned that although they’re still figuring it out, now is the right time to discuss and test new avenues.
Even so, DAO treasuries know what the ‘why’ is behind their strategies, and that’s to preserve the longevity of their treasury as well as sustainable asset appreciation.
DAO treasuries want to preserve the longevity of their funds
According to Messari’s crypto report 2022 (see page 154), many DAO treasuries have almost 100% of their treasury allocated to their native token
Current macro environments continue to be incredibly uncertain
Even though we’re in a clear recession, the US continues to deny this in light of the upcoming midterm elections
There have been no clear signals from the Federal Reserve on pausing interest rate hikes, meaning that fear continues to dominate the market
Given most crypto assets are correlated to Bitcoin and the S&P 500, native tokens of these DAO treasuries take the biggest hit. The chart below shows the TOTAL3 Chart, which is the total crypto market cap excluding $BTC and $ETH which has fallen by 57% since this year’s all-time highs in April
The question now: Do treasuries need to sell protocol tokens to continue to survive in these difficult times, or is there another way?
As Ryan Sean Adams, co-founder of Bankless DAO said, “The liabilities side of treasury balance sheets is largely un-utilized. As there's more clarity on spending and asset allocation for protocol treasuries, the next area of focus will be treasury liabilities. This includes fixed rate secured loans, unsecured loans for highly rated treasuries, bond issuance, and protocol to protocol lines of credit. When the conditions are right, treasuries should borrow.”
Simply put, when the interest rate paid on the loan is cheaper than issuing tokens (equivalent to equity financing), it makes sense for DAOs to pursue debt financing. This is true especially when markets and token prices are down and you’d be giving away a lot more tokens compared to a few months ago.
At PWN, we’re obsessed with enabling cryptonatives to never sell their crypto again. We want to provide cryptonatives the services that traditional banks offer people who have real estate, physical art, or other assets. We want to empower them to not have to go through the stress of selling without the risk of being liquidated on price spikes.
Issue a proposal and with the DAO’s feedback decide on:
Use of funds
The amount of funds to raise
Maturity date of the loan
Post the loan request on PWN. This request is off-chain and therefore requires no gas fees. The DAO would be posting how much they’re looking to borrow, the amount of collateral, and the maturity date of the loan. Note that on PWN, there are no whitelists, which means any ERC-20, ERC-721, or ERC-1155 (either on its own or as a bundle) can be used as collateral
Review the loan offers posted by various lenders. Some may accept the same terms as the loan request; others may post counter-offers
Once the right loan offer has been chosen, accept the loan offer which would be an on-chain transaction and would require gas fees to be paid
In September 2022, Nation3DAO issued a bond to raise 50,000 USDC on the PWN protocol. To learn more, you can read the full summary of the deal and read the proposal on Nation3DAO’s forum.
We’ve seen this use case play out well for DAO’s, and PWN wants to help.
Get in touch with PWN on Twitter (or myself directly at @dipilalwani) if you have any feedback or would like to discuss this opportunity in further detail.
Best,
Dimple
PWN is a hub for peer-to-peer lending backed by digital assets. Use your NFTs or any token as collateral and invest in fixed interest loans and generate attractive returns. PWN makes this possible with no liquidation risks. Check out the PWN platform today.
When I first learned about the size of DAO treasuries, I was surprised at how many DAOs there are and their total value. Then, I dug deeper and learned about the current utilization of these funds, and I was truly shocked.
According to DAO analytics site DeepDAO, there is currently $9.7 billion held in DAO treasuries as of October 17, 2022, across all networks. These figures are the same as in March 2022, and considering the current market environment that we’re in, it is good to know that there’s some stability that we can count on.
That said, the top ten treasuries are all on the Ethereum blockchain and account for over 70% of the total value held in DAO treasuries today.
The goal behind writing up this post is to dig into the utilization of DAO treasuries. To do so, I’ll be taking a look at the following topics:
Goals for DAO treasuries as per my conversations with treasuries themselves
Asset allocation and utilization of these treasuries
Diversification opportunities, including borrowing
Many will agree that we’re super early when it comes to DAOs, and we’re even earlier when it comes to treasury management. The majority of DAOs that I’ve spoken with over the past few months have mentioned that although they’re still figuring it out, now is the right time to discuss and test new avenues.
Even so, DAO treasuries know what the ‘why’ is behind their strategies, and that’s to preserve the longevity of their treasury as well as sustainable asset appreciation.
DAO treasuries want to preserve the longevity of their funds
According to Messari’s crypto report 2022 (see page 154), many DAO treasuries have almost 100% of their treasury allocated to their native token
Current macro environments continue to be incredibly uncertain
Even though we’re in a clear recession, the US continues to deny this in light of the upcoming midterm elections
There have been no clear signals from the Federal Reserve on pausing interest rate hikes, meaning that fear continues to dominate the market
Given most crypto assets are correlated to Bitcoin and the S&P 500, native tokens of these DAO treasuries take the biggest hit. The chart below shows the TOTAL3 Chart, which is the total crypto market cap excluding $BTC and $ETH which has fallen by 57% since this year’s all-time highs in April
The question now: Do treasuries need to sell protocol tokens to continue to survive in these difficult times, or is there another way?
As Ryan Sean Adams, co-founder of Bankless DAO said, “The liabilities side of treasury balance sheets is largely un-utilized. As there's more clarity on spending and asset allocation for protocol treasuries, the next area of focus will be treasury liabilities. This includes fixed rate secured loans, unsecured loans for highly rated treasuries, bond issuance, and protocol to protocol lines of credit. When the conditions are right, treasuries should borrow.”
Simply put, when the interest rate paid on the loan is cheaper than issuing tokens (equivalent to equity financing), it makes sense for DAOs to pursue debt financing. This is true especially when markets and token prices are down and you’d be giving away a lot more tokens compared to a few months ago.
At PWN, we’re obsessed with enabling cryptonatives to never sell their crypto again. We want to provide cryptonatives the services that traditional banks offer people who have real estate, physical art, or other assets. We want to empower them to not have to go through the stress of selling without the risk of being liquidated on price spikes.
Issue a proposal and with the DAO’s feedback decide on:
Use of funds
The amount of funds to raise
Maturity date of the loan
Post the loan request on PWN. This request is off-chain and therefore requires no gas fees. The DAO would be posting how much they’re looking to borrow, the amount of collateral, and the maturity date of the loan. Note that on PWN, there are no whitelists, which means any ERC-20, ERC-721, or ERC-1155 (either on its own or as a bundle) can be used as collateral
Review the loan offers posted by various lenders. Some may accept the same terms as the loan request; others may post counter-offers
Once the right loan offer has been chosen, accept the loan offer which would be an on-chain transaction and would require gas fees to be paid
In September 2022, Nation3DAO issued a bond to raise 50,000 USDC on the PWN protocol. To learn more, you can read the full summary of the deal and read the proposal on Nation3DAO’s forum.
We’ve seen this use case play out well for DAO’s, and PWN wants to help.
Get in touch with PWN on Twitter (or myself directly at @dipilalwani) if you have any feedback or would like to discuss this opportunity in further detail.
Best,
Dimple
PWN is a hub for peer-to-peer lending backed by digital assets. Use your NFTs or any token as collateral and invest in fixed interest loans and generate attractive returns. PWN makes this possible with no liquidation risks. Check out the PWN platform today.
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