1. Transferrable LOOT | SHARES tokens for Moloch DAOs.

2. NFTs with Token Bound Accounts, via ERC 6651

LOOT | SHARES:

DAOhaus recently deployed Moloch v3, and one of the more innovative components is the ability to designate LOOT or SHARE tokens as Transferrable.

• LOOT Tokens represent the pro-rata claim that an account has on a treasury.

• SHARE Tokens represent both economic and governance rights over a treasury.

When was the last time that the shitcoin you were trading actually represented a share of a treasury that you had a right to claim from launch?

The closest thing that we’ve seen is the RFV [Risk Free Value] of OHM, which only recently became claimable, after their ponzi collapsed and laid dormant for a year.

https://twitter.com/0xgodking/status/1658548715726987327

Silo takes a note from OlympusDAO, except, instead of Bonding LP to a managed treasury, Moloch v3 allows that treasury to be directly owned and managed by its contributors.

The RFV of a LOOT Token is the pro-rata share of claimable treasury assets at any given time.

siloDAOs will stake LP for yield, and veVELO NFTs are not divisible, but if the Membership DAO passes a proposal to dissolve the treasury, each SHARE and LOOT holder can burn to redeem.

Liquid LOOT Tokens will trade on Velodrome relative to the RFV of their treasury.

Token Bound Accounts:

Silo Squad collaborates with TokenBound, uses ERC 6651 as a core component of our launchpad. For those unfamiliar, ERC 6651 creates a registry of Smart Wallets, and assigns an NFT as the Owner.

Moloch v3 allows siloDAOs to bind non-transferrable SHARES to an NFT, meaning that the economic and governance rights of the NFT belong to whoever owns that NFT.

Most NFTs do not have an underlying value upon which speculators can base their trades. siloNFTs will always have a floor value reflective of the value of the Economic and Governance Claims of their Treasury.

We are a crowdfunding platform for 6651 NFT Membership DAOs.

ERC 6551 NFT membership DAOs allow current and new communities to form on-chain multiplayer coordination games.

USE CASE: Multi-Player ACTIVE LP Management.

OBJECTIVE: Accumulate Tokens

Active LP understands that when the price action moves upward, the most lucrative, consensus trade is to hold the token itself.

When Price Action finds local tops, profit can be captured, and Liquidity provided as an accumulation strategy.

By cycling between Spot, and LP, it is possible for the Membership DAO to increase their holdings of any specific token.

ENDGAME: Whale Status

Active LP requires conviction on the underlying project and discretionary trading between LP and Spot Positions.

The Membership DAO absorbs volatility by providing LP in price bearish trends, and captures market value by holding tokens bullish trends – always be seeking a greater market share of your token.

Profitably trading LP involves difficult concepts, and most people are not fluent.

While, the DAO may not out perform every member of that community, it can provide a support structure for community members who want to learn more about DeFi and LP.

When the project reaches its next ATH, the DAO could decide to dissolve via Rage Quit, or rebalance into a Delta Neutral Hedged LP.

$SNX Pattern:

Active LP is a good strategy for currently existing projects, because it acts as a project specific, High Time Frame, Hedge Fund.

Synthetix would be a great token to form an Active LP with because the Membership DAO would be able to:

• HODL

• STAKE and earn OP Incentives | SNX Ecosystem Drops

• Actively or Passively manage exposure to SNX Counterparty Risk.

• LEVERAGE with a conservative Collateral / Debt Ratio.

• LP | FARM VELO within a SNX - USDC Pair

• Use Onchain Perpetuals or Options to hedge.

This suite of tools allows for a full range of DeFi Positions.

The Membership DAO would also act as “training wheels”, for new members of the Synthetix Ecosystem, who would like to use the Membership DAO as as a mentor for navigating available positions relative to the market.

Similar “Full Spectrum” Patterns could be achieved with:

• ETH

• OP

• LINK

• PEPE

• MATIC

• ARB

• stETH

• alETH - ETH LP

Less complete patterns [without Delta Neutral Hedging] can be achieved with smaller, high beta projects, the Membership DAO will need to accept greater treasury volatility.

• VELO - USDC LP

• THALES - USDC LP

• KWENTA - ETH LP

An Automated Transaction Build which allows for Limit Order DCA into LP Zaps would be useful here.

USE CASE: BOOTSTRAPPING DAO Owned Liquidity

Silo offers a competitive advantage to new projects, seeking to Fair Launch on Optimism, and list their LOOT token on Velodrome. These projects will by definition have Deflationary Tokenomics, with underlying RFV.

In addition to these structures, Projects will equally distribute the responsibility of DAO owned Liquidity during the Fair Launch.

Launching a project with Silo holistically solves the following issues:

• Build Liquidity and veVELO as a DAO from Fair Launch.

• Get your Token Listed on Velodrome, and allocate LOOT for bribes.

• Offer your community meaningful governance and ownership.

• Form Token Gated Communities with Discord via Collabland.

• Art Assets for Socials | Marketing are included with NFTs.

Whether you are a DeFi Protocol, NFT Project, Social Token, or a Worker Cooperative, this foundation is going to help your community hit the ground running.

More detail about New Projects Bootstrapping Projects in our last article about Community Cooperatives.

RAGE RUG: Exit as a Community

Just because the blockchain lasts forever, doesn’t mean your Community has to do the same.

Membership DAOs have the ability to “Rage Rug” their DAO LP, dissolving the project, and offering an equitable exit to members.

A strategy called Conviction Voting, can be used which requires you to stake your SHARE | LOOT Tokens as a part of your dissolution proposal.

If the proposal passes, the Rage Rug process begins, and the treasury is liquidated.

If the proposal does not pass, then, the person who submitted the failed proposal gets their SHARE | LOOT burned.

Shutting down a project is something that a community ought to be able to do, if they can form a consensus to do so, and if not, they ought to be able to absorb the shares of people who waste time with bullshit proposals.

Defend your silo, or Burn Everything – it’s your call.

USE CASE: DEEPENING Protocol Owned Liquidity

OBJECTIVE: SUPPORT pre-existing POL.

Protocol Treasuries which already have Liquidity would benefit from a Membership DAO which focuses on increasing LP.

However, because tokens are already distributed, and because the cost of that LP is not packaged into a fair launch or fee structure, you cannot socialize those costs | risks.

Community members would be required to accept a sub-optimal position, and operate at a disadvantage to other speculators.

Viable Patterns:

The position could work on a longer time frame, or if the asset in consideration was alETH - ETH LP, because then, you are just exposed to ETH as a DAO.

In a VELO - USDC LP Membership DAO, which was started now, assuming that DAO was not using ACTIVE LP strategies, your best bet would be a multi-player Yearn Vault Strategy, held over a long period of time.

But, even in that situation, if the price of VELO went up significantly, the Membership DAO would perform poorly compared to holding spot and selling, due to IL.

For this reason, we encourage ACTIVE LP, or Bootstrapping LP from Fair Launch.

USE CASE: The VELO FED | BRIBE MAXIMALISM

Bribe Maximalism has joined Mercenary LP in the quadrant of extractive degen strategies, and it has found market fit.

• The Curve Ecosystem

• The Hidden Hand

• Stake DAO

All have thriving Bribe Markets whose participants are solely focused on Yield.Where is Velodrome’s Coordinated Community of Bribe Maxis?

ENDGAME: Build an OP DeFi Index Fund

Velodrome V2 Introduces the VELO FED, which allows veVELO holders to vote on raising or lowering VELO Emissions rates.

A large, coordinated veVELO Membership DAO would be able to raise funds though launching a NFT Collection. There are a few strategies here, but the Objective would be to perma-max lock as much veVELO as possible, and then claim the highest bribe rewards each epoch.

The DAO would vote just before the end of the EPOCH each week, and capture the Juiciest Bribe.

The LOOT Token, in this case would represent exposure to all Bribes, LP and locked veVELO, and it would be the responsibility of the Membership DAO to manage the fund:

• HODL, and allow the tokens to qualify for Rage Quit

• Manage ACTIVE LP Strategies, as a high beta index of OP and ETH.

If there is a speculative OP DeFi ATH at some point in the next couple of years, the Membership DAO could vote to sell their veVELO, and each LOOT holder can burn to claim their share.

ALCHEMIX: A Hedge against Locked VELO

Alchemix provides a unique value to siloDAOs on Optimism, because it acts as a workaround for the 4 year veVELO Lockup.

When a NFT Collection is sold, the ETH that is raised, is deposited into a Yearn Vault on Optimism, and alUSD is borrowed against a non-liquidatable collateral.

Suppose the Membership DAO enters and the price of ETH is 2k:

• 50% TVL on that loan means that half of the ETH can be borrowed against collateral, and locked for veVELO.

• When the Price of ETH reaches 4k, the veVELO has been paid for by the appreciation of the underlying collateral.

• The Membership DAO can now distribute that initial ETH to members as LOOT, or vote to use the funds for some other purpose.

• The veVELO 4 Year Lock remains under management by the DAO, courtesy of a levered, non-liquidatable ETH position.

Other strategies can also integrate Alchemix into their Zap Patterns, to take advantage of this structure.

Each Membership DAO can structure their strategy as they see fit.

USE CASE: Multi-Player OP Lobbyist Cartel

The Final Use Case for this article is the $OP Lobbyist Cartel.

OP’s core value proposition surrounds governance, and the distribution of Grants to stimulate Development, Protocol Incentives and Public Goods.

There are Delegates, and Ambassadors who would benefit from a significant block of support being aligned toward their causes.

Silo allows for a grassroots Membership DAO to amass a huge OP Position and solicit backroom deals from existing Delegates, to advance their causes in swing vote situations.

OBJECTIVE: Build Governance Influence to Capture | Direct Grants.

Governance Focused Membership DAOs:

• Love to read forum proposals, and participate in Discord AMAs.

• Chat with interested parties to understand the motivations behind different proposals.

• Have opinions about where they would like to see the OP Ecosystem headed.

Governance Focused Membership DAOs could also be profit driven, Machiavellian bribe maximalists in a governance related bribe market that currently doesn’t exist.

How do you want to play it Anon?

ENDGAME: Grassroots OP CARTEL

Aligning currently existing OP Whales, or starting from the ground up, and playing parliament – An $OP Membership DAO seeks to gain as much exposure to OP as possible, and use it to participate in the distribution of grant funds in the ecosystem.

Paladin, is a project which handles this on Mainnet, and there are multiple projects that could use this Governance Cartel Structure.

OP is a fun playground, because of the diverse set of currently existing Delegates and Initiatives. It might be fun to seize power and attempt to mold the future of the Ecosystem.

Conclusion

The patterns described here intersect with each other, and are ultimately custom made for the project itself.

• The Artwork for the NFTs

• The size of the collections

• The amount of Risk | Volatility being taken on by the Treasury

• The Tokens that the project focuses on

• What their objectives are with those tokens

• What their exit looks like as a community

All of these things are tailored to the desires of each Membership DAO.

Silo Communities are designed using a social marketing concept called Psychographics, meaning, “People Like Us, Do Things Like This.”

Individually, there are a broad range of interests and strategies amongst DeFi participants, and for the most part, they are individualistic and zero sum.

However, within each community, there is a common thread of interest, and a section of that community who would prefer to play positive sum, multi-player coordination games to achieve their goals. – Beyond that group, there are newbies who would jump at the opportunity to be in a group and learn the ropes.

Silo provides communities an opportunity to organize under shared objectives, and offers the flexibility of ownership instead of hopes placed in the hands of core contributors, or multi-sig holders, or delegates.

Did this article inspire you to create your own siloDAO?

Join the Discord, and we’ll chat about a solution that works for your community.

Check back soon for another article exploring Art Collectives.

https://discord.com/invite/QpaXn6CFAN

https://silo.haus/

There are a handful of well known methods that are usually employed. From paid promotions to NFT collections to meme coins, more often than not they all end up with followers and communities feeling misled or just out right scammed. Granted some might have been malicious, but many were just poorly planned and executed, earning influencers and their projects the titles of ‘grifter’ and ‘rugged’.

Silo Squad is here to propose a better solution.

Kinetic Energy

To start, let’s say you’re an influencer with a lot of momentum. Your someone who is steadily gaining followers, making a real name for yourself. You’re at the point where you’re wondering how to use this energy that’s quickly building. You feel as though there should be a solution readily available to harness this energy and direct it into profitable and sustainable outputs for all involved.

You understand the potential of NFTs, social tokens, and DAOs but maybe you’ve only ever witnessed disasters come from any attempt to use them. To avoid falling into the same patterns, you carefully contemplate your best move forward.

Thinking to yourself, “let’s not add another paid shill or ponzi economist to CT. Let’s not mislead another community. Let’s not promote more zero-sum games. How can I change the pattern? How do I build something that won’t screw over majority of my supporters?”

Then you start to breakdown what you’ll probably need:

• completely on-brand initiative.

• a group of your most highly engaged supporters identified.

• funding to back the initiative while maintaining self-sovereignty for contributors.

• security for the funds while not being solely responsible for managing them.

• a mechanism to harnesses energy and direct value flows.

• a system that promotes positive-sum games for your supporters, while creating stability and providing constant opportunities for growth.

Feel free to think deeper on what else you may need, what positive outcomes you can imagine, and how you can create long term sustainability for yourself and supporters. Then be ready to plug these thoughts into the solution we’re going to discuss below.

From Community to Co-Op

It’s time to stop thinking about followers as your “community”, and instead start thinking of them as potential energy for powering a fully fledged cooperative. Let’s move from the stigma of “NFT communities” to the emergent idea of crypto co-ops.

When most projects start, they try to preach about community values and like to put responsibility onto others, but always fail to provide the necessary tools to truly align everyone behind common goals. Those same projects also fail to put safeguards in place to protect its members from volatility, and almost never have a real strategy laid out to create any sort of sustainability.

It’s time to end the era of ‘moonshot or rug’. It’s time to stop the zero-sum downward spirals. It’s time for there finally to be a solution that provides influencers and leaders alike the ability to promote positive-sum games for their supporters. It’s time for Silo.

The following section will highlight one structure that can be useful for setting up a social token cooperative on Silo. If you find it interesting, feel free to reach out to join our pilot program.

Social Token Cooperative - Structure 001

Silo is an intuitive platform that can make it easy to launch an NFT membership DAO and create an ERC20 social token. NFT holders could then coordinate around a shared treasury to manage the social token by voting on proposals.

Branded NFT Collections

Sell NFT memberships to onboard your followers and crowdfund your social token co-op. Create a collection yourself or collab with Silo’s in-haus artists to capture your vibez and brand. Collections are fully customizable in regards to name, total supply, and designs. They can range from a simple design, to importing your own custom ERC721 contract.

Identity

From brand recognition to unique generative PFPs, NFT memberships provide multiple layers of identity. Empower and unite your social collectives to stand strong together, while sending a message that can reverberate through a multitude networks.

Social token

When creating your social token, you can choose a name, ticker, and total supply. The social token is the life blood of the cooperative. Keep it light with a fun meme token or ramp it up with high stakes DeFi strategies. Ultimately, it’ll be up to the NFT holders to align on token and treasury strategies in order to maintain a sustainable ecosystem.

Under the hood

Built on DAOhaus Protocol and Moloch v3, Silo can provide highly composable governance and economic structures by leveraging a dual token model consisting of ‘Shares’ and ‘Loot’.

Collaborating with TokenBound, Silo uses ERC6551 as a core component of the launchpad. ERC6551 enables NFTs to own smart wallets, or Token Bound Accounts (TBAs), meaning your NFTs can store assets. The NFTs hold nontransferable Shares to provide holders with governance and economic rights within the co-op.

Social tokens are Loot. Economic rights mean that both Shares and Loot can be ‘RageQuit’ (burned) at any time for a proportional amount of the treasury, technically making both deflationary.

Taking all of this into consideration, there are now many interesting patterns that can emerge from a technical, economic, social and governance perspective.

Zaps

Silo has zap capabilities, where a portion of the funding (ETH) from the NFT sales and social tokens can be automatically zapped into an LP. Zaps should be configured before starting the NFT sale. Majority of the social token supply could be zapped directly into the LP in order to host a fair launch of the token.

Vesting

A vesting schedule can be set for the NFTs before the sale to have an allocation of social tokens unlocked and claimable within the TBAs on a linear scale of your choosing.

Whitelist

Lastly, there is an optional whitelist to enforce a more exclusive NFT sale.

Start sale

Once everything is set, just configure your NFT price and length of sale and then let it rip!

Bootstrapping

As the NFTs sell, a portion of the ETH from the sale is paired with the social token and zapped into an LP. The remaining portion of ETH and social tokens are secured in the DAO’s side vault to provide the necessary resources for the co-op’s continued operations. Royalties from NFT secondary sales and yield from the LP go into the DAO treasury.

NFT Markets

All NFTs from your collection have inherent value from the underlying governance power and assets in the treasury. From this value, a more stable floor price can be maintained.

Multiplayer

With majority of your social token supply in an LP managed by the DAO, a strong foundation for your co-op is established. Now your followers have turned into fellow members who have to coordinate so everyone in the co-op can win, together. You’ve turned a typical zero-sum scenario into a positive-sum, multiplayer coordination game.

What happens from this point on is entirely up to you and your cooperative.

For a deeper dive into some of the core features mentioned above, check out our intro article: Sustainable Strategies for the Future

Silo social token co-op summary

As an influencer you successfully:

• created and sold a branded NFT collection

• funded a cooperative DAO

• created a social token

• fair launched the social token

• bootstrapped LP for the social token

• established stability and sustainability for the co-op

• enabled a more positive-sum game for your followers

Co-Op sustainability is achieved via:

• NFT sales (ETH) treasury allocation

• social token treasury allocation

• NFT royalties from secondary sales

• LP yield from social token DeFi strategies

The ETH/social token treasury allocation can be used for:

• LP incentives

• marketing

• partnerships

• contributors

• product development

Stay tuned for a continuation of the ‘Silo Series’, where deeper insights into other structures will be provided, along with how to manage LP, optimize DeFi strategies, and maximize yield as a DAO.

Conclusion

If your influence is considerable or has seen a lot of growth recently, you may be looking for ways to better engage and monetize your followers. Just remember, “with great power, comes great responsibility”. We’re not trying to be prescriptive with our structures, instead we hope that we can provide just enough tools and inspiration to get your creative juices flowing. Our incubator pilot program will be rolling out soon. We’re looking to bring a select group of individuals and projects into our silos to help foster a new wave of positive-sum cooperatives within the Ethereum ecosystem.

If you’re interested in the opportunity, feel free to reach out in our Discord.

https://discord.gg/QpaXn6CFAN

https://silo.haus/

Through those learnings the squad now lives by three principles:

1. We win together, or we lose together.

2. Self-sovereignty is a right, not a privilege.

3. Protect the Silos at all costs.

Now follow along as we journey into the depths of the silos to uncover the inner workings of the infrastructure and ideologies on which this haus is being built.

Sticking to their principles, the squad incorporated three primary elements into SIlo that enable communities to create positive-sum outcomes for themselves:

1. A custom launchpad to easily deploy shared treasury initiatives on DAOhaus.

2. The ability to crowdfund by selling custom ERC6551 NFTs memberships.

3. Automated strategies that instantly zap the raised funds into DeFi positions.

The main premise of Silo is to create long term sustainable microeconomies for protocols and projects. Sustainability is achieved through coordination on the participation layer - those who hold tokens, use the products, engage in the community. The idea is to encourage positive-sum games within these groups, where the outcomes benefit everyone.

Typically, both fungible and nonfungible token strategies follow the same old pattern. There's a bunch of initial hype, people join in hopes that it’s going to the moon, the token pumps, then some of the larger holders tend to dump. It's basic degen ponzinomics shit. There's always going to be someone left holding the bag, and unfortunately it’s usually the little guys who make up majority of the community. With Silo this pattern drastically changes.

Various protocols and projects can now implement more stable and secure financial structures for their communities through the use of siloDAOs. Crowdfund multiplayer DeFi strategies and streamline onboarding via ERC6551 NFT DAO membership sales. Funds from the sales are then instantly zapped into locked DeFi positions (liquidity positions, vote escrow tokens, liquid staking derivatives, etc.). The NFTs are freely tradable on secondary markets and are always backed by the DAOs locked DeFi positions, creating a fluid membership experience and a stable market.Two major problems are being solved here:

1. Token volatility

2. Zero-sum communities

To highlight the solutions:

1. Project tokens are siloed within the DAO’s locked DeFi positions, creating a stable market.

2. Every single NFT holder is in it together, with peace of mind knowing their NFTs always retain inherent value as a proportional representation of those shared DeFi positions.

There are a plethora of other solutions this system enables, but we’ll get to those later. Now that you have a basic understanding of the Silo fundamentals, let’s get into the nitty gritty of how it all really works.

Launchpad

To understand the sheer power and capabilities of the Silo Launchpad, you must first understand Moloch. Named after the demon god of coordination failure, Moloch is a governance framework designed to slay the very demon from which its name is derived. With a dual token model, ability to RageQuit shared treasuries built on Safe, and proposal tools for voting on simple to complex transactions, Moloch enables robust coordination tools for multiplayer experiences.

Then in comes the hard hitting team DAOhaus, who has built badass tools and interfaces on top of Moloch. The DAOhaus Protocol provides the decentralized infrastructure to streamline development on Moloch with their SDK. The DAOhaus team has been experimenting and iterating for years, shaping their products into lean, efficient, and effective governance solutions.

It’s through Moloch contracts and the DAOhaus protocol that Silo is possible. And I’m sure at this point you’re wondering what the hell this launchpad will actually be capable of. Without going too deep on all of the technical features, let’s just provide a high-level overview of what’s to be expected:

• Fully on-chain DAOs, deployable on several EVM compatible networks.

• No coding required, but is optional for more advanced players.

• Composable governance structures to meet specific requirements.

• Shared treasuries + as many side vaults as needed, all built on Safe.

• Plethora of proposal types for treasury management, from simple to complex.

• Crowdfunding via ERC6551 NFT membership sales directly from the DAO.

• Importable custom designs and contracts for your NFT collections.

• Instantly zap funds from the NFT sales into various DeFi positions.

• Interoperable with just about any protocol or tool via Shaman technology.

• In-haus service providers for all additional design, development, operations, and strategy needs.

siloNFTs (ERC6551)

siloNFTs are the standard from which all siloDAO NFT collections are created. Leveraging the ERC6651 token standard, siloNFTs provide holders with a highly portable governance and value accrual mechanism that is freely tradable on secondary markets. siloNFTs control smart contract accounts that can store and manage anything a normal wallet can.

When a new DAO is launched from Silo, it can then natively host an NFT sale to onboard its members. As the NFTs are sold, they are automatically allocated nontransferable DAO tokens into their smart accounts, providing governance and economic rights to the holders. Each NFT then acts as a silo for their DAO tokens, hence siloNFTs. There are now many interesting patterns that can emerge from a technical, economic, social and governance perspective.

As portable and tradable storage units, siloNFTs create a really unique speculation game. Protocol and project microeconomies can now remain stable, while the NFT holders can still freely trade on secondaries without directly impacting the DeFi token strategies managed by the DAO. Taking into consideration that the funds from the NFT sales undergo automated zaps into DeFi positions, the NFTs themselves hold inherent value from the moment they’re minted. And they will continuously accrue value from the yield generated by those positions, creating stability for the NFT market as well.

Every siloDAO can customize their NFT collections and start a sale in a few clicks by simply importing a premade design and setting sale parameters. siloDAOs can also use their own ERC721 token contracts to offer uniquely identifiable DAO memberships for communities through generative and 1:1 PFP collections. By offering unique PFP collections for DAO members to identify with, they will generally be more likely to hold long term and publicly promote it.

There’s clearly a lot of potential with siloNFTs. Let’s highlight all the features covered from above:

• DAO memberships with governance and economics rights.

• Social identities for DAO members.

• Portable, value accruing storage units for holders.

• Inherent value through nontransferable DAO tokens.

• Proportional representations of DeFi positions.

• Freely tradable for fluid DAO memberships.

• Enables speculation without directly affecting the DAO’s DeFi positions.

Get Zapped!

We’ve went over a lot so far. From the Silo ethos to launching a DAO, and the awesome capabilities of siloNFTs, and now it all leads to the super powers of zaps. It’s been mentioned that funds from the NFT membership sales can be instantly zapped into liquidity positions, vote escrow tokens, liquid staking derivatives, etc. all managed by a siloDAO. What hasn’t been said, is how these zaps are managed and what kind of patterns they create.

First, let’s paint a picture. Zaps will eventually have their own marketplace in the SiloHub, and act as a sort of plugin, or Boost, to give DAOs super powers. In the beginning, Silo will develop several of these Boosts to bootstrap the marketplace, with plans to enable developers to build and sell their own Boosts. Using the DAOhaus SDK and Shamans, developers will have all the tools needed at their disposal. DAOs will also be able to request custom Boosts through the SiloHub to meet their specific needs.

Now that the potential power and scale of these zaps have been explained, let’s breakdown management and patterns a bit. When it comes to management, the objective of the game is to create a flywheel effect so that the DAO’s DeFi positions are continuously compounding on itself. Essentially, this is achieved by creating a strategy that generates yield through fees, emissions, rewards, bribes, etc. Then take that yield and compound it to grow the positions. By doing so, all of the siloNFTs for a given DAO strategy will be constantly accruing value. As proportional representations of DeFi positions, there are a few ways to manage value accrual for siloNFTs:

1. Let the DAO manage the flywheel by restaking/locking yield via proposals.

2. Automate the flywheel to continuously zap based on some logic.

3. Split a % of the yield to accrue in the DAO treasury.

4. Split a % of the yield to accrue directly into the siloNFTs.

5. Variations of all/any of the above.

Zap patterns are what determines the overall strategy and success for a DAO. Depending on what a DAO is trying to achieve will ultimately impact a pattern’s design. Patterns can be as simple as zapping into a standard LP position, or as complex as splitting funds into LPs, vote escrows, and bribes. The latter is an example of how to create a sustainable flywheel effect on a platform like Velodrome or Balancer. There are endless possibilities when it comes to designing patterns though, only limited by one’s imagination. Just about any protocol, app, or tool can be integrated to meet a DAO’s needs.

Patterns can include but are not limited to:

• Liquidity positions

• Vote escrow tokens

• Liquid staking derivatives

• Lending protocols

• Leverage trading

• Automated compounding

• Diversification strategies

• Swap/trade strategies

• Other types of token escrows/staking

Stay tuned for an article that will be going deep on Silo Patterns.

Join the Squad

As we make our way back out of the silos, just remember that the dust is still settling. The very foundation on which we build is not yet stable. The air and surrounding elements are still volatile. If we’re to learn, build, and grow from the wasteland of failed projects, we need to stick together. A few squad members may have found this refuge within Silo, but it will take a community of skilled warriors, operators, and technicians to make it truly sustainable. We’re only just getting started and there’s a big vision to fulfill. If you find yourself aligned with our ethos, our principles, our objectives, then strap on your boots, sharpen your tools, and join our mission.

- The Silo Squad

https://silo.haus/

https://discord.gg/QpaXn6CFAN