[Proposal] quiDAO

Project title: quiDAO: Governing Quid Protocol
One-liner: A Fairlaunch Template for SputnikDAOs
Project DAO: Metagov DAO - Proposal 49
GitBook: https://book.quid.io
Hackathon Slides: link
Challenge areas:

  • Spec & build out a new feature for SputnikDAO (liquidity mining)
  • Experiment with DAO-to-DAO interactions (nominating MetaPool @luciotato)

Project members

  • RickTobacco (globalmoney.near)
  • JohnnyQuid (johnnyquid.near)

Problem

To continue the blurb from If NEAR is the Future of Finance Let’s Bring that Future Onto NEAR, without going into how our protocol works (explore the GitBook if you’re interested), we thought it would be remarkable if Quid could let people go long and short on their NFTs, and not just their favorite PoS reward-bearing cryptos. There are a couple tough dependencies for such an endeavor:

  • “Re-fungibles” fractionalize an NFT into shares, whose new owner becomes a bonding curve which prices and distributes them. This seems to be the only viable price discovery solution for NFTs besides auctions, but most epic NFT owners would not give up majority shares

  • Building off of the previous point, governance is needed to frame procedure around proposing answers to questions like “what if I burn 51% of the shares, does that mean I destroyed the NFT” or “what should be the share supply”, and voting in NFTs to be acceptable as collateral

We propose a “two birds, one stone” framework for tackling both problems, while creating a DAO for Quid Protocol. If successful, this framework be reused by other DAOs to bootstrap in a similar way.

Proposal

It really doesn’t matter that we are building what we believe the most advanced and feature-complete DeFi margin platform…we are breaking into one of the most competitive verticals in the space, where simply providing a better product across the best chains is not enough.

It would be insane to think otherwise, so all we can really do to give ourselves a fighting chance…is take the insanity to a whole 'nother meta-level…with QuiDAO NFT shares, making Quid the first non-fungible collateralized borrowing protocol…how pretentious is that?

We want to invoke the launch of Quid protocol itself as a versioned NFT, capturing both the original event and its re-launches as a living piece of history, with the hash of the live Github master branch & GitBook forming the NFT’s Versioned Metadata.

We will shard this NFT into governance shares called JUICE, that holders can either stake to gain voting power on Quips (SputnikDAO proposals), use as collateral to borrow QuiD stablecoins, or short using $QD as collateral. That’s RAIght…if you don’t like Quid, you can short our protocol :slight_smile:

As an emergence brought about by collective wisdom, Quid must launch fairly, hence JUICE is not sold, but rewarded to those who earn it or help bootstrapping its liquidity and price discovery. Each contributor to this will also be embedded in the QuiDAO NFT Metadata as supporters who helped make the protocol possible…

28.08M Reversible Initial Curve Offering Pool: 13%

  • Our rICO uses a Sigmoid bonding curve whose x-axis represents the JUICE supply, equally split into three-part harmony: the head (left tail), the heart (center), and the base (right tail) chords. The y-axis represents the JUICE price, which starts @ $.0042 and is capped @ $24

  • To become an LP for this curve, first obtain stNEAR for staking into the stNEAR<>JUICE curve

  • JUICE tokens are minted directly into the LP’s pool share, mirroring the $ value contributed

  • “Reversible” means that every deposit or withdrawal is locked in immediately, but its execution is dilated over the remaining duration of the offering: if user locks in a transaction today, but has second thoughts tomorrow, then only today’s share of the total amount clears

  • The head chord, lasting 6 days, is for first believers to enter the curve when prices are lowest

  • The heart chord, lasting 6 weeks, is the heart of the JUICE rally, when prices grow fastest

  • The base chord lasts 6 months, after this is over the curve takes the current price as the starting price for a standard stNEAR<>JUICE Ref-Finance pool, whose LP shares become directly usable as collateral in Quid protocol, without needing to unwind the shares first

108M JUICE Reward Pool: 2 Chainz x 25%

  • Linearly distributed over 2 years, halving every other month, dropped randomly 2x per month

  • 12% to ref-finance LPs: $QD<>NEAR/wETH in a time-weighted manner, no whales-take-all

  • 6% goes to borrowers and 6% to redeemers…borrowers pay depositors premia in $QD, or in JUICE at governance-set % discount, using live stake-weighted rebalancing of the median %

77.76M Council (AKA Squad) Pool: 9 x 4%

  • Members get an equal share of 8.64M JUICE, and push access to Quid’s private Github repo

  • 4 seats are reserved for the founding team, any one of them may nominate another member

  • 4 seats are reserved for claiming by nominees voted in by JUICE holders in the heart chord

  • End of base chord is the cliff, after which Github is made public, 4% vests linearly over 2 years

  • Members may propose new commit hashes for deployment, JUICE stakers may vote these in

  • In the head chord, 1 seat is Dutch-auctioned off at a 4 BTC starting price to whitelist of VCs…it is after all a fair launch, and it wouldn’t be fair to completely exclude VCs…they’re people too

  • 7% of VC seat reward can be released at the end of the base chord, remaining vests linearly

2.16M Quip Pool: 1%

It could easily be argued that this 1% should simply be granted to security auditors. Alternatively, JUICE holders may elect a more interesting use case: per Sputnik’s design, proposers must stake a minimum amount of tokens (e.g. $42-worth of JUICE) which would be refunded if their Quip is accepted. New Quips must be sufficiently unique relative to existing ones. QuiDAO rewards accepted Quips with additional JUICE, locked until the proposal is fully implemented (either by an individual contributor, or a DAO). Here are some initial thoughts to help get the JUICEs flowing:

  • Add Rainbow-bridged wETH as a collateral type for borrowers, incl. ETH<>USD price feed

  • Quid’s biggest scalability enabler would be gas-less risk management using validator-oracles

  • Integrate Quid core with CosmWasm, it’s pretty similar to near-sdk-rs…@robert?
    This would be more involved than a simple port, linking users’ deposits across chains.

  • Fixed<>floating yield swap: Quid’s depositors that would otherwise receive a floating-rate can instead lock in a fixed yield (also advantageous for Quid borrowers paying variable premiums)

  • Minting synthetic tokens using $QD as collateral may be developed. Once Quid establishes sufficient market depth for both long and short leverage, the first synthetic might be a VIX based on puts and calls facilitating that leverage. Holding a VIX and inverse VIX position would effectively protect non-borrowing depositors from impermanent loss…inspired by this post

Two Squad members must review a feature PR, referencing a Github issue which links to the relevant Quip. If the PR ends up being merged, they must either both match 2x the proposer payment to pay the contributor, or nominate the contributor for a seat if one is available…e.g. if total Quip Pool is split between 8 built Quips, 2x2 matching would yield a payout of 1.08M JUICE each. This kind of matching is not necessary for more minor Quips without significant / large PRs.

Built During Hackathon

Here are two commits for our meticulous Rust implementation of the most efficient weighted algorithm in crypto…core code as an extension on top of the staking contract being here, and glue code for interacting with the core Sputnik contract here. This module is a small part of our overarching scope, but core to the fair voting principle (as mentioned in slides), and a powerful primitive that can easily be integrated into any SputnikDAO for numerical voting related to parameters in any underlying application use case.

4 Likes

Wow, looks like a really excellent and well-written proposal. However, could you resubmit your payout proposal to Metagov DAO and:

  1. change the payout target to be the new Sputnik DAO you created
  2. change your payout amount to 30?

Thanks!
Josh

1 Like

Thanks for picking up on that @thelastjosh…submitted new proposal; updated the post, and added a section to the bottom for mentioning what was actually implemented during the hackathon

Hey @johnquid are you planning on presenting your project today? We’re online at https://www.airmeet.com/event/de5a63d0-a1f4-11eb-abd7-f5ba22c554bf