Imagine we have 100 people who add $1000 in the DAO .... that's a $100K fund! Alchemix allows us to lend $50K so we can get to work and let the community decide what we do with these funds. With Alchemix, the DAO can deposit DAI and borrow up to 50% of the deposited amount of DAI at a 1:1 ratio, by minting alUSD. This alUSD can be swapped to DAI (1:1 ration) on a platform like Curve. The deposited DAI on Alchemix is deployed to Yearn vaults to earn yield and will continuously pay back the debt automatically. This takes on average 18 months.
Update: This post was published in May of 2021, we will be updating this page soon with a couple of fresh ideas
Proposal I: use the borrowed funds to kickstart this DAO.
Raise from Discord Community in form of DAO Token
Create 18+ months runway (w/o any revenues)
The community retains ownership & voting rights
Deposit all DAI into $ALCX vault & take 50% loan
Taking out SC cover via NXM (Nexus Mutual)
Run DAO using stablecoins (& crypto credit card?)
Use $ALCX to autopay off the DAI loan
All revenues back in $ALCX to pay debt/add collateral
$ALCX as a self-growing checkings account
Lowering the profitability threshold for the DAO massively
THEN WHAT ⁉️
Once stable w/ 36+ months runway (w/o any revenues)
Put excess DAI into separate wallet & now:
- pay distributions to the community
- collect & produce NFTs
- donate to crypto projects
- execute our best ideas
- stake LQTY, OHM and RGT
Proposal II: Lend sOHM into Fuse pool (earning 100k+%), borrow more Dai and purchase more sOHM. What does this mean? Levered OHM exposure and 100k+% on Dai to keep bootstrapping our projects and ideas. If we decide to diversify some of our treasury funds into LUSD, and hold some portion of the treasury in ETH, we could vote to borrow more LUSD against ETH at 0% interest with Liquity.
- Stake your ETH in Rocket Pool (mint rETH)
- Deposit rETH into MakerDAO
- Borrow DAI against rETH
- Deposit DAI into Alchemix
- Borrow alUSD from Alchemix
- Sell DAI to USDC, send to DAO
- Vote and execute the best proposals
Imagine a landing page where they offer three flavors: low risk, medium risk and high risk strategy for NLDAOF™ smart contracts. One day I had a day dream ... seeing an implementation of the ALCX concept in the DAOhaus Apps so ALL the DAO's can use this basic strategy to fund their projects by using Minion.