Introduction:
Hello Balancer Governance people! I’m Farmer Brown, some of you might know me from Twitter. If not, no worries! I’m here to introduce a new protocol, Spiral DAO, that’s building on top of Balancer and Aura. I’m incredibly excited about this project, as I see a huge need for this protocol for both farmers like myself and for the protocols (Balancer, Curve, Frax) that Spiral DAO builds on top of.
What is Spiral DAO?
Spiral DAO builds on top of Balancer, Curve, Aura, Convex, and Frax in order to aggregate governance power into a single, meta-governance token, SPR. Spiral DAO allows users to deposit yield-generating LP tokens for any supported protocols, where the treasury receives the entirety of their yield in BAL, and distributes COIL back to the user in a process called ‘Yield Bonding’. Yield bonding increases farmers’ APR, as we distribute more $ worth of COIL than they would have received in the underlying token. Spiral DAO then manages the BAL/CRV/AURA in non-predatory strategies, such as market-making bribe markets and utilizing liquid lockers such as with Stake DAO to grow its treasury, essentially locking all governance tokens received.
Spiral DAO is looking for a partnership with BAL in order to align interests and to work directly with the team in order to ensure safe and mutually-beneficial treasury management strategies. Specifically, Spiral DAO is looking for the following support from Balancer:
- Participation in our Initial Treasury Offering (Date: TBA)
- We hope to receive BAL from the Treasury, in return for COIL.
- Gauge for COIL LP to receive BAL emissions
- Marketing support
How Does This Benefit Balancer?
The greatest benefit is also the simplest: 100% of the BAL that the Spiral DAO receives will be locked, in perpetuity, in yield-earning strategies. Through non-predatory yield strategies, Spiral DAO will continually compound BAL back into strategies in order to maximize our returns.
Not only does this lock BAL, but it also REDUCES sell pressure through our reward mechanisms. Instead of receiving BAL, users who deposit LPs into Spiral DAO will receive COIL, which will take the sell pressure away from BAL.
Through this relationship, we expect to see a greater overall performance of the tokens we manage than if Spiral DAO did not exist. COIL is expected to trade at or above parity with the treasury value. If the market cap of Spiral drops below the treasury value, yields from bribes and fees earned in tokens other than the ones we manage (BAL, AURA, CRV, CVX, FXS) will be used to buyback COIL off the market until parity is restored.
Essentially, COIL will increase in value as our treasury grows. By reducing sell pressure for the tokens we manage, and compounding yields from our strategies, we expect to see a positive flywheel effect on the underlying assets and therefore COIL.
Conclusion:
Spiral DAO is a yield aggregator meant to complement underlying protocols and make yield farming easier for the end user. By managing underlying tokens in non-predatory strategies, Spiral preserves value for its underlying assets and manages high-yield strategies on behalf of COIL token holders.
Staked COIL, which is SPR, will have governance rights to the underlying tokens as well as yield from treasury strategies. We hope to see Balancer interested in participating and supporting our project, as we see ourselves as a mutually beneficial project in the DeFi ecosystem. Balancer support will help expedite our goal to become a major holder of BAL and to give users accessible access to high-growth strategies, with minimal effort on their part.
For more info, check out our Twitter (https://twitter.com/Spiral_DAO) or Discord Spiral DAO. Hoping to be able to answer any questions below!
