As the core of the Hodl Finance DAO ecosystem is the Market Making and Investment layer. The main source of revenue is Market Making. The core contributors have over 3 years of experience running Market Making algorithms to make steady returns and to perfect them to adjust to market conditions.
Market Making is in simple terms, providing liquidity to the market, and because of the liquidity, the market gets more efficient. The liquidity comes from setting buy and sell orders in a tight range, collecting exchange fees, and making profits on small moves. It is the core business of HFD because the Core Contributors have seen that in the overall market of DAOs, the treasuries get depleted and the token Hodlers are the ones that pay for the expenses. With Market Making and Realized Profits, the operations costs can be paid. In addition, the global crypto market is still very illiquid and inefficient for bigger market participants. This is why we want to make Market Making accessible to all and make the crypto market as a whole more efficient.
The governance system works with $eHFD, which holders can get when staking their tokens in the Single Side Staking pool (SSS). Staking is mandatory for governance to work. After staking Hodlers can use their tokens to vote and make a proposal on the forum which then will be advanced towards the snapshot of HFD.
Yes, there will be staking. This will be available in the staking section on the dashboard. The staking will be depleting the Staking Treasury and will take out 0.05% per day, meaning that the rewards will logarithmically go lower per day. Make sure to stake for the most rewards and growth in voting power.
65% of the Realized Profits will be allocated to repurchase $HFD, which will then be transferred to the Bonding Treasury to replenish its supply. Swaps conducted by the Bonding Treasury will, in turn, generate additional liquidity for the DAO to invest in the Market Making and Investment layer. This process leads to an increase in Realized Profits, creating a circular economy with continuously growing liquidity. Consequently, tokens will not be burned; instead, they will be utilized to buyback $HFD and further boost liquidity.
The reason behind the buyback mechanism is to get more tokens in the Bonding Treasury and garner more liquidity for the DAO. Providing liquidity for all and making the market more efficient.
These R&D works will be published on our socials when confirmed. Make sure to join the Discord to see weekly sneak peeks of what HFD is building.
The ventures part of the DAO works like a normal ventures company, investing in the future of the crypto space. There is also a part of these ventures that will be invested in that do not only receive funding but also consultancy to ensure the success of the venture.
The venture side is focused on everything that is crypto-related and innovative new projects. As long as it passes the HFD guidelines.
Tokens held in the Bonding Treasury are sold at a discount ranging from 5% to 40%, depending on the lock-up period. The oracle, which connects to the prize of the liquidity pool and major exchanges, determines these discounted prices. The discounts are as follows: 5% for a 1-year lock-up, 10% for a 2-year lock-up, 17.5% for a 3-year lock-up, 27.5% for a 4-year lock-up, and 40% for a 5-year lock-up.