We recently contacted the team from DXdao to learn more about their platform, which helps develop, govern and grow DeFi protocols. Communications, Marketing and Community Lead Keenan Luke answer all of ours questions. Topics covered include the overall vision, technical developments and features, tokenomics, the governance model and plans for the future.
Here's the list of shortened questions:
1. The motivation behind DXdao
2. How does DXdao help?
3. Best resources to track growth and performance
4. Scaling solutions
5. Best resources to track growth metrics
6. The Omen, Swapr, and Mesa products
7. DXdao bonding curve
8. The Swapr AMM
9. Conditional farming
10. The challenges to DeFi adoption
11. Upcoming developments for 2021
1. What was the *AHA* moment that made you realize the market needed a platform like DXdao?
The origin story and the separation between voting power (Reputation) and financial value (DXD token). These primitives create a very powerful governance foundation to give core contributors and investors a say in DXdao. Reputation (REP) is non-transferable and can be slashed, so it is very hard to buy/sell.
This creates a more long-term focused governance system and also one that can scale easily. Issuing new REP does not dilute anyone’s wealth; instead it grows the pie by including new participants in governance. This allows DXdao to scale to a global organization.
2. Could you give the readers an elevator pitch for DXdao?
DXdao is a ‘decentralization maximalist’ and runs entirely on-chain. There is no foundation. Contributors are paid through DAO proposals and the products are hosted on IPFS with the ENS domains owned by DXdao.
DXdao is multi-chain with bases on Ethereum mainnet and xDai. Omen, Swapr and Mesa are also on both mainnet and xDai with an upcoming launch of Swapr on Arbitrum.
3. Is there a dashboard that gives us a comprehensive view of growth and performance metrics of DXdao?
Swapr has a dashboard called DXstats that shows the protocol's growth and performance. Swapr has exceeded $3 million in TVL which is almost 4 times higher than the previous month. We expect these numbers to grow as we roll out Swapr's features, beginning with DIY farming.
Omen also has a dashboard, held on Dune Analytics. This contains data such as bet volume, user count and the number of markets created. It’s important to note that these analytics currently only consider Omen on mainnet; Omen has had a large focus on the xDai ecosystem in 2021.
4. Are you concerned at all about scaling? Are you looking to implement solutions like that of Optimism or zk-Rollups?
Fantastic question. As an on-chain organization, DXdao has felt the pain of rising gas costs, and last fall successfully deployed a DXdao base on xDai, where we now conduct the majority of our governance.
For our products, the migration to Layer 2 and scalable solutions is the major trend of 2021 and represent a huge opportunity for the products to gain users. We think Abritrum (an optimistic roll-up) is going to be the first true Layer 2 to market. We’ve been working with their team the last couple of months and are excited to launch Swapr there when Arbitrum goes live soon.
We are also a believer in a multi-chain world and we think there can be a lot of UX improvements to the bridging process. We’re building a fast-exit liquidity protocol and also a new bridge UI for Swapr.
We’re interested in checking out zksync and other zk-rollup solutions as they roll out.
5. DXdao governs three products: Omen, Swapr, and Mesa. How do these come together to support your overall vision?
DXdao’s core mission is to build decentralized products with governance. There are a lot of opportunities in DeFi now and DXdao plans to build out an ecosystem of products that it develops, invests in or launches.
Omen is a prediction markets platform and is positioned well as that new industry is emerging. Mesa and Swapr, meanwhile, are tools new projects can use for token launch and distribution. Mesa is an IDO platform that protects against front-running and comes with all sorts of customizable features for any token sale. Swapr is a multichain, governance-enabled AMM with an easy to use do-it-yourself farming campaign launcher - perfect for any project looking to distribute their token to new communities.
These are just the first of many products to be launched through DXdao. In the future, DXdao can become an incubation platform for projects to get funding, their first users and distribute their token.
6. What is the DXdao bonding curve?
After the initial REP distribution, DXdao moved to launch a token (DXD) to raise funds for the DAO. On April 25, 2020, REP holders voted to launch a bonding curve that would mint DXD in exchange for ETH kept in DXdao's treasury, which is controlled by REP holders.
The cost of minting DXD is denominated in ETH, and it increases linearly as more DXD is released. DXdao profits were to be distributed to the bonding curve's buyback mechanism, which set a price floor for investors to sell into.
DXdao has since voted to pause the bonding curve, preventing additional minting and limiting the supply to 148,976 DXD. Contributors are actively exploring revised profit distribution methods including buyback-and-burn, dividend distribution, and more.
7. Tell us about your AMM Swapr and how development is progressing.
DXdao is gearing up for an imminent launch of Swapr Beta! This release includes a host of new features, most exciting is multi-chain functionality, do-it-yourself farming and eco-routing, which finds the best price for the user even if it’s not on Swapr.
The farming feature should be particularly attractive to projects that want to run liquidity mining campaigns but don’t have the time to set up complicated staking contracts. Projects can configure and launch four different types of farming campaigns, all from the Swapr UI.
Swapr Beta is fully compatible on both xDai and Ethereum mainnet. The community is discussing plans for a Swapr Beta farming campaign, so be on the lookout for fresh yield from Swapr!
8. One of the more interesting features of Swapr is conditional farming. Can you give a brief explainer on that?
Swapr allows anyone to build incentive campaigns using any ERC20 token. In future releases, this will include wrapped conditional tokens whose value is tied to a future event. You might create a conditional token that only pays out if certain criteria are met, such as if a liquidity pool exceeds a certain TVL threshold.
9. What do you see as being the biggest challenges for DeFi adoption?
There is still a lot to abstract away to make it easy to use for everyone. Identity and recovery are especially tough problems. We’re optimistic about the layer 2 scaling solutions coming onboard.
10. Could you give us some insight into what you are planning for the rest of 2021?
DXdao is planning for the “rolling thunder” of 2021, a huge snowball effect that is anticipated to start in the near future. The following are some of the major initiatives:
1. The DXD buyback program has been proposed by DXdao and is awaiting a multicall installation to begin taking place.
Although this program authorizes $1 million of DXD to be purchased, a recent proposal suggests that buyback reserve funds may be used to purchase an additional $8.2 million.
2. Swapr Beta is expected within 2 weeks, additional features and farming campaigns are aimed to launch in the months thereafter.
There are already discussions of introducing the SWPR token and expanding to additional chains. Swapr is already considered the #2 Multi-chain DEX by DefiLlama!
3. In Q2, Omen plans to tokenize, launching the OMN token, the Omen governance Guild, and liquidity mining rewards.
There has also been community signaling to further discussion between DXdao and Gnosis surrounding Omen and the potential implementation of GIP-9.
4. Mesa V2 is deep in development. Its MVP is nearing completion; fair multi-chain token offerings are on the horizon.
Thank you very much, Publish0x, for allowing us to share a little more about what's going on at DXdao! We welcome everyone and anyone to get involved in the community.
For more information on DxDAO, check out their various channels here:
The Publish0x team will publish more interviews with up-and-coming DeFi projects in the weeks to come. Stay tuned for these!