Spiral DAO is designed to be the most capital efficient DAO while being intuitive for newcomers and complementing the entire ecosystem. Our novel DAO model strives to accumulate a significant share of CRV, BAL, FXS as well as other DeFi blue chips to optimize our market position and open a new chapter in yield farming. A chapter without cannibalistic selling of yield and inflationary pressures. We believe that Spiral DAO will be an important cornerstone for the future DeFi 2.0.
All of this is achieved through a sophisticated architecture that includes a novel yield farming model, a two-token structure, and clever use of existing market inefficiencies.
Earnings Lock
Spiral DAO works similar to a yield aggregator. A key difference, however, is that instead of selling the rewards immediately and earning interest, it collects all the rewards in the treasury and distributes its native token, SPR, with an additional yield on top.
Two token structure + POL
The native DAO Token Coil (COIL) is the main target of Protocol Owned Liquidity (POL), is distributed during auctions and can be stacked alone for high APY. A staked version of COIL is a spiral (SPR) token. SPR is the main reward token for staking in liquidity pools, has all voting power and each SPR token is designed to be supported by more tokens over time (the SPR support ratio should grow exponentially). So instead of receiving highly inflationary reward tokens, which are often associated with yield farming, Spiral DAO gives the user a portion of the DAO that is protected from high inflationary pressures.
SPR vs Treasury backing dynamics as per our simulation.
Treasury and Bribery Market
The DAO Treasury uses bribery markets and liquid lockers to achieve a necessary level of each token exposure and beat each token’s inflation. Due to a clever rebalancing mechanism that works depending on the current market conditions, SPR tokens should represent an ever-growing market share of all supported ecosystems. Simply as a by-product of how Spiral DAO works, it makes the bribery market more streamlined and efficient for all participants and protocols dealing with bribery mechanics. We anticipate that Spiral DAO will soon become a major bribery buyer/seller for most ecosystems due to its native bribery arbitrage opportunities. As a result, Spiral DAO will significantly increase bribe yields (we’re talking maybe 30-80% more) for all protocols it deals with.
In our view, bribery markets are inefficient, at least what 30 million dollars value of inefficiency annually. SpiralDAO is here to capture it.
Extension Auctions
Another key way for Spiral DAO to raise new funds in the treasury and onboard new users is to conduct fair regular oversubscribe auctions of COIL tokens at a small discount (basically the PancakeSwap IFO model). This allows us to painlessly increase Treasury support and create a new price floor for the entire ecosystem.
partnerships
A key way for Spiral DAO to add value to its holders. We have managed to secure synergistic deals with several key players and we look forward to sharing them with the public.
exit guarantee
An important part of the mentioned model is the possibility for everyone to redeem their tokens when COIL’s market cap becomes lower than Treasury support. For these cases, Treasury uses an infinite purchase cost of 90% of the Treasury value. That way, everyone is guaranteed a fair exit, while each of those exits translates into better support for those who stay.
All mechanisms mentioned are built with the intention of making Spiral as robust and solid as possible.
Farmers. Because they achieve a higher return than anywhere else. For example, the Convex pool has 40% APR in CRV/CVX and Spiral DAO gives 60% APR in SPR when COIL’s market cap is 220% of Treasury value.
Other protocols. Yield rewards are stored and collected instead of being sold, reducing the circulating supply and selling pressure of accumulated tokens.
token holder. Spiral DAO allows users to participate in the governance process of numerous protocols by holding just one token – SPR, a token with a coverage ratio designed to grow over time.
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