DAOfi Version 2 Roadmap & Update

DAOfi Update: We’re extremely excited to launch a 30 edition NFT by pplpleasr and Qrion today called QLOUDPLSR: https://daofi.org/qloudplsr/ It’s almost sold out at the time of publishing this letter and we’re really happy with the result!

After launching several fractionalized NFTs, the predominant feedback from customers was that they preferred owning ERC-721s compatible with OpenSea instead of ERC-20 tokens. We quickly wrote up a contract that would allow ERC-20s to be redeemed for ERC-721s and QLOUDPLSR was our first launch with the ERC-721 redemption contract. We’re pleased to see all the positive feedback so far.

We also worked with CoinGecko so people can follow the prices of our NFTs there too: https://www.coingecko.com/en/coins/refraction Our partner Blep Analytics also just upgraded our analytics service so people can now view each onchain trade line by line as well as liquidity pool numbers!

Analytics by Blep now shows onchain transactions and liquidity pool size information.

DAOfi Version 2 Roadmap

DAOfi V2 will be a significant pivot and a total product rewrite based on the feedback received after the V1 launch. The V2 product will be branded as Liquid and we are planning to have it built in the next couple of weeks. The V2 product will have the following features:

DAOfi V2 will be a significant pivot and a total product rewrite based on the feedback received after the V1 launch. The V2 product will be branded as Liquid and we are planning to have it built in the next couple of weeks. The V2 product will have the following features:

  1. ERC-721 Bonding Curves: We are allowing the bonding curves to work only with ERC-721 tokens, removing ERC-20s entirely. This decision was based on the feedback of customers who preferred owning a non-fungible token instead of a fractionalized ERC-721 represented by ERC-20s. Each ERC-721 that a buyer gets can be chosen randomly out of a collection on the bonding curve; they don’t all have to be the same.

  2. Customizable Royalties: Every time an artist launches an art piece on a bonding curve, they will be able to establish a royalty percent for each buy and sell order as the primary way they monetize their project. Also, DAOfi will be taking a percentage fee out of each trade which will be used to buy back DAOfi tokens.
    Rug Protection: Since each art piece on the bonding curve will have a reserve pool of liquidity, we will have safety mechanisms in place that will prevent the artist from being able to rug the reserve pool.

  3. Curated Gallery: DAOfi V2 will also have a curated gallery for all the art work in a central place. This was very important to have based on customer feedback.
    Fiat On-Ramp: We will also have the ability for buyers of the NFTs to use credit card checkout via Stripe. We observed we had many non-crypto interested buyers of our V1 launches, but they dropped off due to MetaMask onboarding friction. Providing credit card as an option should reduce friction.

  4. Ability to Launch Buy-Only Bonding Curve Sale: We will also have the ability to toggle between bonding curves with reserve pools and bonding curves that are just used for a one-way sale of collectibles.

  5. Generative Art: We are also exploring ways to have generative art integrated into the ERC-721 curves, so that each buyer will get a unique permutation of algorithmic-based art.

  6. Integration With OpenSea: All the ERC-721s bought on DAOfi will be viewable on OpenSea.

  7. Provenance: Lastly, we are exploring unique ways for digital artists to prove that they created their digital work, and may integrate Twitter as a way to sign off on an art piece as a form of digital provenance.

The DAOfi team conducted hours of user interviews to understand product market fit better and to understand how we need to adapt and improve the product. The product decisions above were carefully considered based on what customers suggested they wanted. Coding for DAOfi V2 already started 1.5 weeks ago. We did not take any delays in getting started and adapting as fast as we could!

Our goal is to first validate product market fit within the crypto community first, then to slowly expand to artists and mainstream media figures who cater to a non-crypto trader buyer demographic. We’re adding credit card payment flows to help capture all the demand out there that doesn’t have MetaMask. While MetaMask has over 3M monthly active users, we feel that if we are even moderately successful at onboarding the non-crypto demographic the potential market size is significantly larger.

After surveying an extensive number of customers, we decided to curate our art content towards more narrative, surreal, photo conceptual and avant-garde art. We have an amazing roster of talent committed to launching art on DAOfi, including Jared Madere, Sharon Lockhart, Jacolby Satterwhite, Mitchelle Syrop, W.G.D.96, Alex Seton and more.

We will also be assisting a few token-permissioned communities launch tokens and bonding curves on DAOfi. We are experimenting with tokens on Binance Smart Chain as well, and deployed DAOfi on BSC last week: http://bsc.daofi.org/We will soon be offering a curated gallery of communities to join on the DAOfi.org site, shown below. In addition, DAOfi has built our own token-permissioned telegram bot so we can better assist with downtime and bug fixes for communities.

Thanks for the early support! It means a lot and we’re confident we have a very long and rewarding journey ahead. And thank you to the team again: Alex Lewis (lead dev), Nathan Ginnever (solidity and all things blockchain) and Duc Nyugen (front-end).



DAOfi’s Entry Into NFTs: Announcing Fraction.art, a Crowdsale Platform for Fractionalized NFT Art

Despite the explosion in NFT adoption we’ve seen in 2020 and 2021, there is still a lot of room for improvement with the buyer’s experience around NFT art and collectibles. The problems I see that have not been fully addressed yet include:

  1. Lack of liquidity in NFT secondary markets. The major NFT marketplaces today are centered around a bid-style marketplace. This results in not being able to get instant liquidity on NFT assets at any time; one has to wait for someone to bid or buy at an asking price.

  2. Centralized exchanges taking extremely high drop fees. NFT exchanges are monetizing by charging double-digit percent fees for creators to drop NFTs. This value can be passed onto the creator, or can potentially go towards cost savings for the buyer. In addition, so much buyer demand is being sucked up from the primary market auctions and sales. It’s creating an environment where people want to cash in on the primary market while exposing the buyers to potentially a very illiquid secondary market.

  3. Lack of utility outside of owning the collectible. There are a number of creative ways to add a lot more utility to the ownership of digital art and collectibles.

  4. Content curation. Curation can be subjective, but I think there can be a lot more tasteful NFTs than some of the drops we’ve seen.
    DAOfi has a number of exciting ways to improve the buyer’s experience for digital art and collectibles NFTs.

Solving the liquidity problem. In order to solve the NFT liquidity problem, DAOfi will encourage artists to fractionalize a non-fungible ERC-721 into fungible ERC-20s using our take on the ERC-1155 token standard. Owning a single ERC-20 will be like owning piece of the art, much like owning a print. Those fungible ERC-20s will be placed on a bonding curve on DAOfi. Therefore, the AMM on DAOfi will always be able to provide liquidity for buyers and sellers at any time algorithmically. Some of our stakeholders have called DAOfi a “generalized Eulerbeats.” DAOfi is a DEX that is a fork of Uniswap and it also uses math from Bancor as well. We’re really appreciative of the core teams from both Uniswap and Bancor with their assistance. We decided to launch the DEX on xDai network in order to facilitate a more liquid buyer’s experience when trading on the DEX. Our hope is the reduced wait times and lower fees with an EVM sidechain should provide a much better user-experience for buying and selling assets.

The ERC-721 is fractionalized into fungible ERC-20s, and the fungible tokens are traded on DAOfi, which is a fork of Uniswap and used math from Bancor to create a bonding curve AMM market.

DAOfi is unique in that it allows markets to exactly control the price per token as tokens are sold. This allows the liquidity pool creator to completely control the price appreciation rate and price per token from the beginning, rather than price action being more of a black box with a fixed ratio AMM DEX.

Value goes back into the bonding curve. Since the fractionalized art on DAOfi trades on a bonding curve, all of the proceeds from sales just go back into a liquidity pool smart contract. The creator will usually retain a % of the tokens for themselves when they mint the token, so they can profit from the long-term appreciation of the art asset overtime. This has been a pain point for artists in the traditional art world based on our research. Artists want a way to be able to benefit from the secondary market upside of their work.

Code is art. Core to our vision of the digital art space is the belief that we will see a lot more art at the hybrid intersection between visual and audio forms of content and programmatic and algorithmic qualities. We’re excited to execute on this intersection of two worlds, and we love to see how the community and the crowd can play an interactive role in evolving and generative art pieces.

Holders of the idxm_tile_001 tokens can order a limited edition t-shirt.

Holders of the idxm_tile_001 tokens can order a physical print as well, paid via credit card. The print comes with a QR code that launches a certificate website that we built that shows basic information about the work as well as relevant on-chain metrics.

Adding utility via merchandise, prints, experiences. The art on DAOfi is experimenting with many innovative methods of additional token utility. Some of the drops on DAOfi will allow buyers to order a print if they hold a token, order swag and merchandise, be inside exclusive token-permissioned Telegram rooms with celebrities, attend special events, commission customized portraits, and more!

Most of the art for DAOfi will have their own dedicated drop web page that the artist builds. We do this because a lot of the art concepts that are launching are programmatic and layered, so a dedicated web page allows a single place for people to see the current state of the art piece.

The NFT lives in a web page. For many of the art pieces launching on DAOfi, the NFT meta data will point to a URL to where the art is displayed. The web page itself will use a decentralized tech stack where applicable, including IPFS. Many of the art pieces launching on DAOfi will be generative so it makes sense to point the NFT to a web page where the contents can constantly change.

Marc Horowitz, creator of the idxm_tile_001 piece, will also be rewarding free ERC-721 art tokens to the largest holders of the token and will also be randomly airdropping some of the 721’s to a few lucky holders.

Adding utility via airdrops. Some of the art pieces will be airdropping other assets, including ERC-721s, to reward token holders. Key to our ethos is the priority to give back and serve the community, not extracting as much value as one can in the primary market.

Removing double-digit drop fees. DAOfi doesn’t charge double-digit percent drop fees for creators in the primary market. The artist gets to choose how many of the fungible tokens they want to keep out of the pie of minted fungible tokens. Anyone can launch a market on DAOfi without permission.

Fraction is a crowdsale platform that will allow buyers to purchase fungible ERC-20’s in the primary market before they’re openly traded on a secondary market on a DAOfi AMM curve.

DAOfi is also launching a crowdsale community called Fraction for buyers to participate in the primary market allocation lotteries for art that we curate. The curation process involves getting in touch with our team and we’ll evaluate if it’s a good fit to be presented in Fraction. Learn more here https://fraction.art

The minimum to participate in the crowdsale community is holding 5,000 DAOfi (which can change, based on community feedback). Once you’re in the Fraction telegram group, there is a bot that will randomly draw members to reward allocations in the fractional art crowdsale (please note, only send crypto to the official Fraction group admin and please double check it is the right admin handle as well). After the crowdsale is conducted, the art piece will immediately trade freely on the secondary DAOfi market.

Our goal for DAOfi is to constantly think of ways to better serve the buyers of NFTs and how we can inspire digital assets that push boundaries. The goal is to provide value as possible to buyers, as opposed to extracting value. We feel there is a really exciting evolution in the space of digital art and collectible NFTs and we’re excited to attempt fresh ideas.

The rapid adoption of digital art and collectibles has been incredible. NFTs are no doubt a long-term use case for blockchain. NFTs are attracting a lot of new entrants to the crypto space, it’s an extremely exciting time to be innovating.

We have lined up tons of amazing artists that will be launching amazing experimental content in the coming weeks and we’re so excited to see how the fractionalized NFT space evolves! We have a large number of creators from fine art, music and entertainment supporting our launch.

We’re always open to feedback, just join any of our community channels below!

– Andrew Lee


PS: The first crowdsale on Fraction will be taking place today Tuesday, March 16 for Marc Horowitz’s idxm_tile_001 piece, and the art piece will be trading freely on DAOfi tomorrow Wednesday, March 17.

🔗 DAOfi Links

Telegram: https://t.me/daofi
Discord: https://discord.gg/5ndaWRF
Testnet Alpha: https://app.daofi.org/

How I'm Building Out SoFi (Social Finance)

by Andrew Lee

DeFi today has provided utility for a lot of the same use cases that CEXes have already validated, which includes spot trading, margin lending and leverage. Many DeFi startups today are building more specialized solutions for an already small demographic of advanced crypto users, and are not thinking about how to grow the dapp user population as a whole. In light of this limitation of DeFi serving a very niche audience, I think the next area of growth for crypto applications lies in the intersection of social needs and crypto assets.

If you look at Web 2 today, I would suggest there are two major categories of successful applications: one is utility, the other is status games. In the utility category, I believe marketplaces such as Amazon, Uber, eBay, and Airbnb would be a good fit, as well services like Google and Spotify. On the other hand, I believe there are very successful “status” incentivizing applications that drive endless engagement and competition among users. Examples include Instagram, Twitter, TikTok, Snapchat, and YouTube. The users on these platforms will work all day for free to collect status points in the form of likes, comments, follows and other actions of engagement and approval.

In a similar light, I see DeFi being very successful at dominating the utility around trading of crypto assets. I’m confident DeFi will continue to grow and become more resilient and innovative over time and the huge exploits will be a thing of the past.

However, equally as exciting to me is the untapped potential on how we turn crypto products into a “status” game. What does the social, or “status” layer of crypto look like? What is the Social Layer of Ethereum?

I anticipate the following use cases below will be some of the best leading examples of what SoFi (Social Finance) is:

  1. DAO clout. Creating a DAO or being part of a DAO will be a way to signal one’s network, individuality and identity. It will become a status symbol to have create a very successful DAO, or one of the top 5 DAOs in the space. I imagine it soon being a common behavior for most people in the cryptocurrency investor space will be in part of at least one DAO.

  2. NFT trophy room. People will adopt a type of “Web3” social profile that will allow them to host a trophy room for the Web3 assets, including NFTs, DAO tokens, project tokens and more. The typical user behavior today is to keep wallets anonymous, but I anticipate the ownership of crypto assets will become a more of a community-centric and social activity. People will find the need to build and promote their Web3 footprint.

  3. Purchasing NFTs for subscription access and finite access to content. I believe one of the next major behaviors in crypto that has yet to unfold is the use case of NFTs being used to unlock subscription access to content or applications, similar to Patreon or OnlyFans. Crypto has grown to a big enough population now that allowing content creators to collect revenue via customers wanting to pay via crypto wallet like MetaMask and own a NFT is mature enough now. Learning from Web2, simply selling digital goods like Gumroad wasn’t nearly as successful as selling finite subscription-based services like Patreon and OnlyFans. I imagine it will be the same for crypto, but even better since crypto has potential to be fee-less with zero middleman fees.

My project, DAOfi is in the early stages of shipping products in all three of the categories above. Our roadmap, which could change, includes:

  1. A leaderboard of the top DAOs in the space in partnership with Carlos from Forefront.market.

  2. A customizable landing page called myeth.id that will let users showcase their NFTs, DAO tokens, project ERC-20s they support, and social tokens they own.

  3. A DEX that will let creators sell a NFT for subscription access to a service, content or applications. We will provide the end-to-end user-experience to create such token-permissioned content experiences, and will charge zero fees for trading on this NFT DEX.

Screenshots below!

NFT Swap will be a complementary product to DAOfi, still in brainstorming phase, that will allow audiences to buy NFTs for the purpose of subscription access to products such as newsletters, chat groups, Telegram announcement channels and more. DAOfi tokens will be required to stake to make a market on NFT Swap.
MyETH.ID will be a landing page creator for anyone’s ETH wallet, allowing them to showcase their NFTs, DAO tokens, social tokens, project tokens in their ETH wallet all in one beautiful landing page found at a URL formatted as alee.myeth.id. Staked DAOfi tokens will be required to be make a page on myETH.id.
While roadmap can change, all the projects above are underway and will complementary in vision to the http://app.daofi.org bonding curve exchange, which solves the fundamental problem of providing liquidity for assets that are small in trader audience size as well as liquidity depth. DAOfi is built on xDai and will sponsor xDai gas fees for users.

All of these products mentioned above will utilize DAOfi tokens in some way, either through fees or staking. Also, note, these are early stage ideas and may be executed differently, or not at all if strategies change based on user data.

I don’t anticipate the Web3 “social” app to be a decentralized version of Facebook running on Ethereum and IPFS. The crypto version of social networking will closely integrate with Ethereum wallets, NFTs, DAOs and will leverage DEXes as the plumbing and piping to provide liquidity for all these assets. I see a future where a “user-owned” web doesn’t necessarily mean a “decentralized [insert social media monopoly here]”, but it will rather thrive on the theme of personal custody and self sovereignty. For example, a user will truly *own* their Ethereum wallet, will *own* the DAO tokens they’re entitled to have access to, will *own* NFTs that give them either ownership to digital art, or access to digital services and beyond. The most unique characteristic of blockchain is that a decentralized database very programmatically verify digital assets are scarce, exclusive and verified. These qualities have major potential for adding value to Web 2 experiences, and will add a lot of value to web use cases around exclusivity, virtual clout and status, and permissioned-access.

If you believe in our roadmap and want to be an early-user and adopter to these products, we’d love to have you in our community on Telegram and Discord. We believe in the ethos of building in public, which means transparently sharing our learnings and iterations as we evolve DAOfi. DAOfi’s ultimate vision is to bridge the gap between Web 2 social and crypto.

Thank you!

🔗 DAOfi Links
Uniswap: https://app.uniswap.org/#/swap?inputCurrency=0xd82bb924a1707950903e2c0a619824024e254cd1
Contract: 0xd82bb924a1707950903e2c0a619824024e254cd1
Telegram: https://t.me/daofi
Discord: https://discord.gg/5ndaWRF
Testnet Alpha: https://app.daofi.org/

The DAOfi Story So Far

A brief recap on how Karma DAO started as well as insights on how Web3 products will change online communities.

by Andrew Lee, Advisor to DAOfi

Token-permissioned chat groups have grown from 571 users in July to 42,512 cumulative users in just four months!

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Cumulative users on Collab.Land.

And, there are currently over 6,000 new users each week joining token-permissioned chat groups.

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New users per week on Collab.Land.

Collab.land is a Discord and Telegram bot created by the Abridged.io team that creates token-permissioned chat groups. If you don’t hold a certain number of tokens, you get booted out of the group within minutes because it links to one’s MetaMask wallet. The Abridged.io team is also the development partner for the DAOfi DEX.

So, how did we get here? It all started with a social experiment called Karma DAO.

How Karma DAO Started

After graduating college in 2013, I worked for angel investor and blogging-content pioneer Jason Calacanis. Having witnessed first-hand some of the inner workings of Silicon Valley venture capital industry, I quickly learned during those years how important it is to be value-add to stay operating in the business. I observed and took part in countless pioneering ways Jason broadened his reach in the space with the sole focus of helping founders, including startup conferences around the world, hackathons, an incubator, angel investor summits, a weekly podcast, and open office hours in SF. Through this work experience, it became innate in me to operate with the ethos of being founder-first, which means puting founders’ needs ahead of personal interest.

With my full-time attention turning to the crypto industry in 2017, I felt that it was extremely important to find ways to add value to my peers. Maximizing alpha was not the goal — adding value and being indispensable to others long-term was. I always felt that the long-term, being valuable to others and paying it forward would always be the ultimate success metric to work towards.

Despite being in an industry that was incredibly short-term incentivized, it was always much more important for me to foster long-term relationships. Some of the ways I felt I was able to help others were referring people to jobs, making introductions, providing insights and advice, leading Telegram communities, helping projects raise money, foregoing countless commission offers, hosting a virtual conference, writing a newsletter, and so on.

In early 2019, I came up with an idea to make a Telegram community called a Karma DAO. However, it wasn’t until July of 2020 when I met James Duncan and James Young from Abridged.io through an introduction from MetaCartel’s Peter Pan when ideas started to turn into action. With the Abridged team’s help, I launched Karma DAO and listed the KARMA token on Uniswap. Because of all the ways I helped others in the past and how many people were already aware of the values I operated on, Karma DAO was quickly seeded with 50 initial members. The DAO quickly grew to the rest of my extended network, and is now at 412 members today.

Karma DAOWas Successful Because It Adds Value To Members

The Karma DAO community unites people under the idea of Karma, which means cause and effect accountability for both good and bad deeds. Because of Karma DAO’s publicly stated community values around helping others and adding value, we were able to create a very inclusive, aligned and proactive online community. Karma DAO operates under the thesis that the whole can be greater than the sum of parts. Since inception, Karma DAO has had a number of successful milestones as a result of bringing together the right people under the right values.

  • Incubation: Karma DAO founders were able to meet the right strategic advisors, resulting in high quality projects raising millions of dollars in capital.

  • Turning passive investors into founders: Karma DAO has seen a lot of encouragement from community peers. Sometimes it takes just the right peer support and nudge from a peer group to take the leap.

  • Dealflow. The DAO has made referrals to a number of high performing early stage investments, which are confidential to members only.

  • Information and insights: Assessing fundamental value to crypto technology is difficult and it’s hard to filter what’s real vs. unsubstantiated claims. Collective sharing of insights and diligence can help tremendously, and there are tons of opinions and insights shared in the group almost at all times.

Karma DAO is what I call an online super community. It is truly a positive-sum game, where everyone can come to the community to both give and gain something. The idea of a positive-sum game is when all parties can have a positive outcome. A zero-sum game is when it’s impossible for both parties to win. I believe it’s a really fundamental human need to be part of value-add communities. We could be at the forefront of discovering Web3-tech enabled super communities, but we’re still early and still figuring out all the kinks, flaws and best practices.

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DAOs create positive-sum games.

Karma DAO facilitates positive-sum community interactions via three methods: a token membership, soon peer-to-peer tipping and wearable NFTs.

Token Membership. The fact that it requires holding tokens worth real monetary value creates a very tangible form of skin in the game to be part of the community. Since there is an opportunity cost of having money staked away, the membership requirement of holding 200 $KARMA tokens has filtered out members who do not add and receive value. Hundreds of members have left Karma DAO since the community’s launch. The end result was a more filtered group that grew closer and more aligned over time. Today, KARMA is $7.16, which translates to holding $1,432 worth of $KARMA tokens to be part of the community, because it requires holding 200 tokens to be part of the group. The initial starting price to join Karma DAO was $6.00 in July (238x).

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Early wireframes of peer to peer tipping on L2 on Collab.Land.

Token Incentives. In the near future, Karma DAO will be launching peer to peer token tipping to encourage members to help others and reciprocate. In addition, there will be airdropped rewards for kind and helpful deeds in the DAO.

Wearable NFTs. Karma DAO will be airdropping rewards to members who have a rainbow frame around their Telegram photo. About a quarter of the community members have adopted this frame, and there will soon be a NFT airdropped to members so they can tangibly own the art and own a digital asset that marks their early involvement in Karma DAO.

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Karma DAO members wear NFT art frames on their Telegram and Twitter profile photos and earn free airdropped KARMA for doing so.

Web3 Super Communities

Through a bit of experimentation and trial and error, Karma DAO revealed a lot of forward-looking insights as to what might lie in store for the future of Web3 communities, facilitated by DAO governance, tokens, NFTs, and DEXes.

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Tokens will be an incentivization layer on top of Web2 social.

The Bitcoin community was a pay-it-forward open-source contributor community in the early days. Ethereum is a value-add community as well. Examples of altruistic efforts in the Ethereum ecosystem include grant-giving organizations such as Gitcoin, MolochDAO and MetaCartel.

Unlike the era of Web2 social applications, crypto communities are further enabled by wallets, token assets and access to liquidity via DEXes, and have unique game theoretic incentives to align and coordinate people in more powerful ways than we’ve seen before. Token assets are able to create tangible skin in the game and incentives to align people.

I see a social Web3 future where it will be common for the mainstream internet user to own crypto wallets, to know how to trade assets on DEXes, and to understand basic concepts around risk and volatility related to investments and trading. I see wallets, tokens and DEXes being layers on top of the Web2 social applications that will help foster alignment and deeper social connections.

How the DAOfi DEX Differentiates and Adds Values

After the success of KARMA’s token price, there was an emerging trend of small circulating supply tokens with single liquidity pools on Uniswap — hence the birth of the terminology “rug pull” where the liquidity is removed by the single liquidity pool creator. Countless experimental tokens began to hit Uniswap fast in August. Many of the tokens failed to launch properly because bots and traders started to seize up early cheap supply for every credible project that listed on Uniswap. The Abridged team and I realized that the 50–50 curve for Uniswap was too exponentially steep and something had to be done to fix unfair supply distribution when launching new token markets, and there was a product opportunity to fill that gap.

Configurable curves. All token markets usually start with a small community that is interested in buying and selling the asset, and the community grows from there. A major drawback to using Uniswap as a DEX for launching new token markets is its 50–50 ratio price curve that creates an opportunity for early buyers and bots to acquire relatively cheaper supply before tokens with a single liquidity pool appreciate very fast. This creates a pump and dump scenario where rent-seeking traders, who add zero value to the project and have no long-term interest in the asset, can extract value from other participants who have a longer-term interest in the asset. In Balancer, liquidity ratios are configurable, but there are still drawbacks in user-experience, speed and lack of flexibility for curve types. DAOfi offers parameters to create flexible bonding curves, whether steep exponential or low linear growth. After such token markets find a sustainable price on a curve, it’s very possible they evolve into order book trading later and trade freely on DEXes such as Serum or centralized exchanges. DAOfi is an incubation ground for launching new token markets.

Speed. Any DEX running on ETH mainnet struggles with issues of failed execution of orders, unpredictable slippage and high gas fees. These drawbacks become seriously detrimental for users that need speed for trading. Core to our product thesis is speed alone is a feature that can make a product a lot more valuable: examples from the past might include Yahoo vs. Google, SMS vs. Whatsapp, iTunes vs. Spotify. DAOfi aims to solve the speed issue by building on top of Serum’s on-chain order book that runs on Solana, which offers <~300ms block times. While we are still exploring the pros and cons of other L1s and L2 infrastructure, our initial alpha version is focusing on Serum due to benefits around speed and scalable security.

Simple User-Experience. Having a very simplistic User Interface will be paramount for reducing friction and allowing users to easily trade or create a liquidity pool.

Configurable fees. One of the features that will be important to DAOfi is allowing token creators to extract a configurable fee for every trade that happens for their token, which can result in a source of revenue for the token creator.

Serving creators. While DAOfi aims to solve all these issues above with a new product offering, the product also aims to carve out a niche and be defensible by owning the market for creators and community tokens. The way DAOfi plans to serve this market is not only via direct relationships to token creators around the world, but iterating based on user feedback and usage data based on what is needed for this specific customer base.


DAOfi aims to serve a small but fast and highly engaged growing audience of crypto creators that are launching small token markets with their communities. We are razor-sharp focused on serving such creators around the world with our v1.0 launch. Many community leaders within our network are blocked from launching token markets today because they see no fair way to provide liquidity for their token without rent-seeking actors coming in to destroy the early supply distribution on existing DEXes. Also, the speed and UX hurdles to existing DEX solutions make it difficult to be a small token creator today.

In the near-term, we’re really excited to support token markets for our first-degree network of friends and early supporters. We’re also very excited to see token-permissioned chat groups in WeChat take place and find adoption as well in Asia.

In the long-run, we see it being very possible that crypto assets will extend beyond crypto trader communities and into the hands of musicians, streamers, celebrities, and other types of online communities. Common characteristics to all such communities are themes of mutual empowerment and inclusivity.

We’re really grateful for all the traction and early support, and we look forward to transparently building and reflecting on our progress on learnings as we build from the ground up. DAOfi will take the approach of documenting the journey as we go, transparently showing our learnings, stumblings and approaches to problems. And, we always value community feedback and help!

DAOfi Links

🔗 Website: http://daofi.finance/

⛓Contract: https://etherscan.io/address/0xd82bb924a1707950903e2c0a619824024e254cd1

🦄 Uniswap: https://app.uniswap.org/#/swap?inputCurrency=0xd82bb924a1707950903e2c0a619824024e254cd1


📑 WP: https://docs.google.com/document/d/1usiEQBOTW_lY7kc-k--qVbiE7uAuRBwjmT8FIetH2TQ/edit?usp=sharing

🗒 Deck: https://docs.google.com/presentation/d/1dZc72-o0MxDKP5Ii63tRts-KqT2LdDmNOSicMEz1Z5A/edit?usp=sharing

📣 Announcements: https://t.me/daofiannouncement

🌎 Community: https://t.me/daofi

🐸 CoinGecko: https://www.coingecko.com/en/coins/daofi

Karma DAO Evolves Into DeFi & Crypto Project Pitching Forum for Builders and Angels

Hi friends,

It’s only been four days since the explosive launch of the Karma DAO social experiment which has now grown to 204 members at the time of publishing this blog post. I’m humbled by the amount of traction and positive feedback I’ve received from community members all around the world who resonated with the concept of being part of a value-add professional network community.

My philosophy for building products is starting extremely lean, making things leaner, and leaner from there. I’ve found it very difficult, almost impossible, to predict exactly how, why and what customer needs are from the get-go. Hypothesis, experimentation, and validation feedback loops are fundamental to iterating to the sweet spot.

In the methodology of observe and evolve, the creation of Karma DAO will be evolving to being both a networking group of value-add believing people and also serving as a pitching forum for people building interesting projects in DeFi and blockchain. The DAO has been seeded with a very broad global network of investors who are in the right position to refer interesting projects to the group for product presentations.

The plan is to have several teams present their products with 15 minutes of product presentation and 15 minutes of Q&A, because I think it’s important to encourage interaction and not just have a one-way pitch. Some of the projects will be in the process of fundraising, in which case Karma DAO members can form connections with the founders privately. There is no requirement on the lifecycle phase of the project. Some of the projects will have had closed rounds, may be bootstrapping, in ideation phase, or may have a liquid token asset. As long as they can provide insightful information value, they are encouraged to present what they’re working on to the DAO.

The focus is to bring in teams that are building new products that are at the edge of defining this evolving DeFi and blockchain startup space. DeFi seems to be changing by the second, and we all know the Total Value Locked in DeFi definitely is. 

Also, please note that any investments made between DAO members and projects are the responsibility of those two parties, and should be conducted outside the DAO with proper legal processes, investor KYC and due diligence.

Reflections on Launch

The early formation of the Karma DAO community has been inspiring to watch. There has been generous volunteers donating domains, creating websites, giving thousands of $KARMA away to invite their friends, and the group is already designing t-shirt swag. It’s been amazing to witness.

Inspiration for Creating an Angel Forum

When I was in college, I worked part-time for Jason Calacanis and full-time in San Francisco after I graduated. Jason is famous for his seed investment in Uber, and other unicorn startups, and his well-esteemed book called “Angel.”  Having lived through and seen first-hand Jason’s achievements, including podcasts, festivals, an incubator, syndicate, and angel investing bets, and so many more ways he adds value to Silicon Valley, I’ve always been really inspired by how much value being a facilitator of startups to capital can provide to both entrepreneurs and investors. In the 2000s, Jason created the Open Angel Forum which aided in connecting startups to angels. The legend says that it was at this event where less than one month old Uber pitched to 20+ investors and raised their seed round from Jason, Chris Sacca, Cyan Banister and First Round Capital at a $4m pre-money valuation. Having been inspired by Jason’s story and his success as an angel investor, I hope to create value with the creation of an open pitching forum in the emerging space of DeFi and crypto.

MetaCartel Venture DAO

I’m also excited to share that one of the holders of $KARMA tokens is MetaCartel Venture DAO, a pre-seed investment group investing in applications on Ethereum. I am part of MetaCartel Venture DAO. There will be synergies between the DAOs in how MetaCartel Venture DAO will be referring teams to present projects in Karma DAO.


Thank you CoinGecko for listing the token here

What’s Next

We’re inviting tons of great teams building DEXes, DeFi options, blockchain B2B, L2 solutions, NFTs, stablecoins, payments and tons more. If you have any projects that you want to suggest, please drop a message to @KarmaDAOva (t.me/karmadaova) on Telegram.

We have three pitches scheduled for the inaugural week that are operating in the space of DAOs, DeFi and blockchain B2B. The pitches as of now will be kept off the record and not published publicly.

As DeFi and the crypto space heats up in creativity and adoption, it seems the Karma DAO group will be really active in reviewing creative new projects in the coming months. I will be leading the process of reviewing the projects that would be a good fit for presentation, but I plan to be very open minded on the requirements for presenting. All presentations will be optional for DAO members to attend and they can attend projects that are most interesting to them by description.

Thank you all, and I’ll be updating learnings and progress as the DAO matures via Telegram, Twitter, and this newsletter and appreciate all of the early support so far in this exciting DAO social experiment.

Click here for instructions on joining Karma DAO.



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