Exploring the DAO2DAO Future - Jeremy Musighi

Transcript

hi i'm jeremy uh head of growth at balancer labs and uh today i'm going to be talking about the dow to dao growth model for decentralized projects this is you know i want to demonstrate to you how this is a mechanism by which positive sum growth is being created and will continue to be created in defy and uh i also want to go through how and why we are using this strategy at balancer after that i'm going to

reveal to you an exciting new development from the balancer community so here's our here's what's on the menu for today starting with the first topic what is doubt to doubt what does this concept actually mean so it's really a multi-faceted picture of a few different mechanisms for coordination between separate decentralized entities first off you have partnerships and

collaborations where dao's established these relationships that benefit both communities and so it happens on a social level it also happens on a technical level where there are technical integrations between protocols so that for example one protocol is actually utilizing the smart contracts of another one that also creates a mutually beneficial relationship because as the application built on top grows the application or the protocol below indirectly grows as well through that utilization

and dow to dao is really this idea of like an ecosystem of co-ownership between decentralized projects and communities you can also think of dow the dao as like a business model for a dow it's kind of like an evolution of the b2b or business to business this is d to d where your growth strategy is based upon um yeah focusing your efforts and your energy on uh serving catering to other dows as your customers basically and so at balancer our growth model is uh really centered around this dow to

dial concept and we focus on creating and supporting a flourishing developer ecosystem that is integrating with the balancer protocol and creating mutually beneficial relationships with these other decentralized communities so that we grow together so second thing here what is balancer um i love talking all about balancer this talk is not all about balancer so i'm gonna give you one quick riff about it so first of all balancer is the most

flexible dynamic customizable amm and there are so many amms out there automated market makers but the question here is what makes balancer particularly interesting and unique what that is is that balancer is designed to be a protocol of liquidity pools that are fully configurable and customizable and when you create a design like this you end up with a protocol you end up with an amm that goes way beyond how we have used amms so far in this like

first inning of defy which is essentially to create liquidity for a token and to help traders you know fulfill trades between one token and another and balancer does that and that's very important and it's great but really the amms go way beyond this and when you have a amm that is designed flexibly as balancer is you can really fully capture the potential of what an amm can be traders are not the only ones who who need to access liquidity and defy protocols need to access liquidity applications need to access liquidity

as the d5 ecosystem grows as more and more people around the world are utilizing d5 protocols that is how balancer will indirectly grow through the so as these applications built on balancer gain more usage they have more users utilizing their platform there's more capital flowing through their protocols that also will indirectly throw through flow through balancer so in other words balancer is the amm of the future and if you believe in the future of defy then you believe in balancer so and if this is uh something that sparks your interest if you're a

developer if you're a project in the space you can reach out to us i'll i'll give you the links for our twitter and discord contacts back to the topic here how are dow to dial relationships formed and there are a few ways technical alignment is created through technical integration smart contracts that are connected to each other i build an application that uses your protocol as part of its core functionality as composable building blocks this uh creates this technical alignment uh for mutual success because as people

use my application they're using your protocol as well indirectly and that's mutual growth that happens on both sides financial alignment can be done in a couple of ways the most common is through token swaps and this is when uh daos agree to trade a certain number of tokens from their treasuries with each other and uh usually they'll also agree that they will hold those tokens for a prolonged period of time they might stake those tokens and it's a symbol of a long-term commitment to each other's success and uh this because both communities want the other token to appreciate

because they hold a meaningful amount of it another more early stage nascent uh way that that dao's can create financial alignment which i find very very exciting is through dow to dao liquidity pools so this is a this can happen after a token swap where uh now my dow and your dao we hold each other's tokens we create a liquidity pool that contains both of our tokens we both provide liquidity into this pool and every liquidity provider in this pool has skin in the game in both of our projects so it's actually like a very sort of uh physical financial representation of a financial

relationship between two communities this uh even even more so when you do this on balancer you can use the balancer pool token the bpt which represents your ownership in this pool actually as its own governance token you can use that token for example to vote on decisions that these communities are making together for example on like a joint project so that pool could basically represent ownership in a joint project and the token for that pool can be the governance token for that project i think this is a huge uh area of potential and i i really want to see it grow and also shout out to prime dow because i believe they were the first

ones to come up with this and they also launched the first doubter down pool which is the prime bowel pool on balancer and by the way this can happen with multiple dowels multiple projects balancer supports multi-asset token pools so even if three four five like and even up to 40 if if that happens sometime in the future could all be financially aligned through shared ownership of a liquidity pool which is basically like this is our financial it's like a contract this is our financial relationship and this is this is you know we work together based on this foundation social alignment happens through

uh governance and community involvement in uh you know decision making token swaps are also a good mechanism for capturing or or bringing this other dow into your community and making them sort of part of the decisions that you make and the discussions that you have the debates what makes a decentralized community strong is having a large diverse set of intelligent actors who are contributing to discourse and who are helping to make the best decisions possible and for all

of these people to be aligned toward around the success of the of the project so when one engaged capable passionate dao meets another one it's mutually beneficial for them to open their doors to each other and and really like capture that talent basically because you know we're seeing already today and i think this is the way it's going to be people are part of many dows you're not just part of one so you know you can be part of dow a which creates a partnership with dalby get involved in the governance and the decision-making process and the voting of both voting is also an important point so

token swaps they don't only create a financial alignment but they you're literally giving voting power to this other community when you do a token swap with them and they have a reason to exercise that vote because they have a vested interest in your success yeah balancer we talk a lot about how balancer protocol is a platform for development it's our whole strategy is about catering to developers in the letting them use our technology helping them use our technology helping them

understand how to use it and creating you know fostering this ecosystem of protocols that are connected to balancer so then the question is well who has built on balancer what what are we actually talking about so i'll go through quickly a few examples going around the twitterverse ave is a big partner of ours we've worked on a few things together most recently we launched the very first boosted pool which is a liquidity pool on balancer that can

allocate up to 90 of its assets into ave to boost yields for liquidity providers i'll go quickly here uh lido for their eath liquid staking they're using a staked eath uh weak liquidity pool on balancer copper which is has grown to be the most popular token launch pad in the d5 space is built on balancer using our liquidity bootstrapping pools bankless the podcast and the dao they're using a bank eth 80 20 pool on polygon and they're also using this as a way to educate their listeners about liquidity pools cal swap aka cal protocol

which is tightly integrated with balancer so that the trades that are happening on on cal swap are actually flowing through the the balancer vault and element finance which has implemented a custom amm on balancer to support their fixed yield products oh yeah and then we have fey protocol ferrari they are using balancer as this really key component of a larger d5 prime brokerage product

so that's very interesting as well okay so i want to tell you about something that i'm very proud of something that is a very exciting development not just for balancer but for the whole d5 space something that has taken a lot of hard work a lot of technical challenges that had to be figured out to develop sort of an elegant solution to something that that we believe is is really crucial for not just for us but for the space and so um what we've developed is the first ever dow to dial revenue sharing model and just this week actually the balancer community voted to enact a permissionless dow-to-dow

rev share model this is an exciting step forward for the d5 space this is a way that daos can more seamlessly align themselves around their success you know we've talked about the ways that dows have aligned themselves so far i think that this can be uh even bigger than the ones that we've already discussed and what this means is so on balancer the way it works is that um very soon everyone who creates a liquidity pool on balancer which anyone can do can actually start receiving 10 to 50 percent of the protocol fees that are generated by that pool so this

means that projects that build on balancer will benefit directly from the financial activity that they helped to generate and this is something that is programmed into the protocol it happens automatically it's plug and play you create a pool and if that pool is being used and there are there's trading activity happening in that pool then you are generating fees it's great for anyone who's like from a sort of individual defy entrepreneur who finds an opportunity for a pool that he thinks will be profitable that would be useful all the way up to you know large projects that are making big integrations with the balancer protocol using our liquidity

pool infrastructure thank you [Applause]