Introduction

What is DAO Finance?

DAO Finance is the algorithmic reserve currency protocol available on Fantom Network based on the FAO token. Each FAO token is backed by a basket of assets (e.g. DAI) in the DAO Finance treasury, giving it an intrinsic value that it cannot fall below. DAO Finance also introduces unique economic and game-theoretic dynamics into the market through staking and bonding.

What is the point of DAO Finance?

Our goal is to build a policy-controlled currency system, native to the Fantom Opera network, in which the behaviour of the FAO token is controlled at a high level by the DAO. In the long term, we believe this system can be used to optimize for stability and consistency so that FAO can function as a global unit-of-account and medium-of-exchange currency. In the short term, we intend to optimize the system for growth and wealth creation.

We intend to achieve price flatness for a representative basket of goods without the use of fiat currency, in order to allow the cryptocurrency industry to detach once and for all from the traditional finance world!

How do I participate in DAO Finance?

There are two main strategies for market participants: staking and bonding. Stakers stake their FAO tokens in return for more FAO tokens, while bonders provide LP or DAI tokens in exchange for discounted FAO tokens after a fixed vesting period.

How can I benefit from DAO Finance?

The main benefit for stakers comes from supply growth. The protocol mints new FAO tokens from the treasury, the majority of which are distributed to the stakers. Thus, the gain for stakers will come from their auto-compounding balances, though price exposure remains an important consideration. That is, if the increase in token balance outpaces the potential drop in price (due to inflation), stakers would make a profit.

The main benefit for bonders comes from price consistency. Bonders commit a capital upfront and are promised a fixed return at a set point in time; that return is in FAO and thus the bonder's profit would depend on FAO price when the bond matures. Taking this into consideration, bonders benefit from a rising or static price for the FAO token!

Who created DAO Finance?

Dao.Finance is a fork of Olympus on the Fantom Network. Our team is mostly anonymous, born from the DeFi Community. We aim at becoming a Decentralized Autonomous Organization, and we are actively working towards that goal.

Who runs DAO Finance?

Currently most of the decisions are taken by the core team, but we expect to be able to turn this into a DAO-governed model as soon as possible!