Angel DAO

Cryptocurrency investment fund powered by the 'wisdom of the crowd' concept, which will be facilitated and governed using a DAO.

Comment

Abstract

Cryptocurrency investment fund powered by the 'wisdom of the crowd' concept, which will be facilitated and governed using a DAO (Decentralized Autonomous Organization). The DAO will be powered using an ERC-20 utility token, called $ANGEL (for being a ‘mini’ Angel investor), which will function as a voting measure, and as an investment vehicle. The DAO is built in a way that all participants feel incentivized and rewarded for the service and the knowledge they provide to the community.

Problem Definition

Being profitable in investing is quite a challenging task to be successful in the long run, especially when investing all by yourself. It’s scary and many investors often try to look up tips from other investors. This issue is 'on-steroids' in the crypto space, where new investors are vulnerable to rug-pulls, exploits, and high volatility. In this definition, we will discuss the main advantages of investing as part of a fund or investing as a big group of individuals. Buying significant allocation reduces an asset's available supply, reducing its long-term sell-pressure, which is taken into consideration when placing a substantial investment. It can work in favor of the investment but can also present difficulty in selling the entire stake later. High net-worth institutions/individuals receive deals or private allocation opportunities that a layperson investor won't usually encounter. Investing with a group combines the minds of dozens of different perspectives that will inevitably use the power of the wisdom of the crowd to make better investing decisions over time. Investors are getting more and more sophisticated nowadays. In crypto, small investors are more vulnerable to hacks, exploits, and rug pulls from the protocols they integrate with or invest in. A well-managed fund can obtain the expertise to verify and audit the places they put their money into. When finding the right crypto project to invest in, tons of information must be explored and learned (like on-chain analysis and vesting emissions) to make the best investing decisions. More eyes mean an increased likelihood of finding this relevant information.

Architecture & Concept - Keep it Simple, Stupid.

The users that are part of the DAO will be able to share their thesis regarding an investment opportunity with the other members of the DAO. Each proposal has to include information about on-chain data, technical development, technical analysis, and market perspective in order to persuade the other holders that this investment might be profitable investment. If the proposal passes and gets a super majority (67% or more) of the votes in favor of this investment, the DAO will use the fund in their reserves to purchase the accepted amount of tokens and will hold onto them, until another proposal is passed which agrees on selling this particular allocation and accepting the profit/loss.

Canva diagram of a standard proposal: Proposal Publication Graph

Successful investments will increase the liquidity in the overall pool and the value of each individual token share. In the case that an investment is not successful, this will decrease the overall pool as it marks a loss for the DAO and each individual token share value will shrink.

Multiple proposals can be submitted and approved simultaneously until all the available reserves in the DAO’s pool are used up in investments.

Tokenomics & Token Use case

Each token will have a double-sided utility: Voting. Each token will give its holder 1 Voting Point in any proposal that is published by the DAO participants. Pool share. Each token is a claim for a percentage of the total DAO pool, which can be redeemed at any time. Each token will increase in value if the investments made using the funds of the DAO were successful, as each token represents more funds (although the same percentage). In case the opposite scenario happens, each token will decrease in value, as it represents fewer funds (although the same percentage). The APY is determined by the performance of the decentralized investing fund and can be directly influenced by the members of the DAO proposing the best investment suggestions and collectively researching new investments. The initial & max supply is 100,000,000 tokens, which will represent 100% of the pool. Each token will be valued at 0.01$ and will be sold in a public sale (Equal to the 1,000,000$ that needs to be raised). We will conduct a 'Fair Launch' to increase Decentralization - There is no founding team allocation, no early investors, and no vesting schedule.

Check out this Figma diagram: Buying & Selling Example

Proposals & Predefined rules

To ensure the healthiness & sustainability of the DAO in the long term, it will have the following predefined rules: Proposal Publication will require a holding of at least 500,000 of the pool and will be limited to 1 proposal a week, to avoid members spamming proposals. Anonymous voting. Each voting will be anonymous the entire time of the open voting and will be revealed only after the actual transaction has been finalized on the blockchain to avoid front-running the big DAO transactions. Supermajority. A proposal can only be marked as an acceptable deal if it is voted on with a supermajority (67% or more) of the votes when proposed to the community. Any amount of votes under 67% means we cannot be confident that the proposal correctly shows the desires of the members of our DAO. This system will also reduce centralization by big holders that may try to influence or divert the results of a vote. Low Price impact. We will require at least x20 of the total liquidity of the required investment amount to avoid high slippage trades which will affect the new investment pool's ratio significantly. (the investment amount is less than 5% of the total liquidity)

DAO Participants

Participants in the DAO are incentivized to work in favor of the DAO, which will help the DAO create better investments to see their share in the pool grow in value (their receipt to redeem their share is the token itself). We forecast that investors will use the advantages that such decentralized funds bring to the table and will help to accelerate its success to see their shares grow.

0.9% of all successful trades will be collected as a fee and distributed to ensure active participation in the DAO and not just passive holders, proportionally to those who voted in the proposals for that investment, as retribution for their effort. In addition to that, another 0.1% will be collected and will be sent out to the proposal creator. (results in a total of 1% total fee taken from the investment.)

Fee Revenue & Business Model

Besides the previous fee, we will charge another 0.5% fee on each transaction which will be saved in the DAO treasury. These funds will be used to maintain the development of the project, sustainability, and insurance.

Technical Specs

The DAO funds & tokens will be minted on the EVM - compatible chain, which means the most obvious investments will be ERC-20 tokens & staking pools on the EVM-compatible chains. Cross-chain swap providers and bridges will be used for this matter. All proposals will be publicized using the snapshot platform.

Backend

  • Solidity.
  • Smart contracts: proposal passed scenario, proposal declined scenario, fees deduction, fees distribution, DAO reserve pool, $ANGEL tokenomics.
  • DEXs API
  • Price Oracles.

Frontend UI

  • HTML & CSS.
  • Portfolio ‘Pie-Chart’ that will track the value of investments.
  • Available $ANGEL tokens to purchase from DAO’s treasury.
  • Stats: Participants Number, Live Proposals, etc.
  • Proposal Publication Platform.
  • Estimated APY

UI Example

Built With

Share this project:

Updates