NodeDAO is a DAO-oriented vault or a decentralized insurance protocol
NodeDAO announced the launch of the innovation of DeFi2.0 with DAO, making full use of the governance mechanism of DAO to ensure the orderly development of the project and achieve a win-win situation with community users. Meanwhile, NodeDAO adds an insurance SaaS platform to ensure the asset security of community users. Once it was launched, it was favored by major communities all over the world.
What is NodeDAO?
NodeDAO is a DAO-oriented vault or a decentralized insurance protocol. It mainly brings stable benefits to users by providing risk support services for valuable DeFi projects.
In concepts similar to NodeDAO, OHM and Convex have occupied the head position. Why does NodeDAO attract widespread attention? This article will analyze the possibility of the future development of NodeDAO together.
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Token Economic Model of NodeDAO with Unique High-yield System.
According to the data, the native token of NodeDAO is NED with the number of initial issue 30,000. Staking’s return rate is 100%. 90% of newly added NEDs are allocated to stakers and bonders, while 10% to DAO.
In order to ensure that the circulation quantity of NED in the trading market can match its ecological development, NED can only be mined or destroyed by the protocol. The token holders decide the development and change of the protocol by voting. NED is supported by vault’s portfolio of assets. Every NED is supported by at least one USDT. To guarantee the value of NED, whenever the price of NED is lower than one USDT, the protocol will automatically buy NED from the market and destroy it.The protocol controls the assets in the vault. When certain conditions are met, it will mint and burn NED. Set the destruction permission agreement to support its price. ) This unique mechanism determines that NED’s price in the actual market has a huge space for appreciation.
In addition to the above contents, NodeDAO also combines several popular DeFi products and novel marketing methods, which can ensure the positive ecological development of the project and bring rich and stable benefits to investors. Such as:
Selling NED at a Discount in Combination with Bonds can Cffectively Improve TVL and Stimulate NED Prices to Rise.
According to the introduction of team members, NodeDAO abandoned the traditional way of issuing additional shares and mining to stimulate liquidity. It provides NED tokens through bonds. Bond buyers exchange NED with insurance collateral providers (LP) tokens (USDT, USDC, BUSD, DAI) at a discounted price (lower than the market price).
The maturity time of the bonds is 15 rebase epochs (that is, 5 days, 8 hours per epoch), with a payout per rebase epoch. The bondholders received 6.66% of the vested amount after the first period. After the second period, bondholders get 13.32%, and so on. The gradual increase of interest rate prevented the direct market impact.
When NodeDAO needs to incentivize liquidity, it will start selling NED at a discount, and users can buy project tokens at a discount through liquidity LP. The liquidity LP token of users will be deposited in the vault, which effectively ensures the continuous growth of TVL in the vault and provides favorable conditions for the rising price of NED.
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Stable High Investment Revenue
As mentioned above, NodeDAO can be understood as a venture fund (vault) operating in the form of DAO. This is not only an interesting way to invest in future finance, but also a stable income channel can be set up through the cooperation of venture funds and several DeFi projects to solve the problem of the source of NodeDAO’s operating funds.
The 50% of the proceeds obtained through project cooperation are used to purchase NED to keep it in the vault; The other 50% is kept in the original assets of the vault as part of the reserve assets. When the amount of assets is lower than the liabilities in the fund pool, the protocol uses reserved assets to provide fuel for the fund pool. When the project achieves sustainable growth and a stable income stream, after an agreement is reached through DAO, the reserved assets can be distributed to NED holders, creating high investment income for NED holders.
Conclusion
NodeDAO not only has absolute innovation advantages in token economy, but also integrates multiple insurance services in terms of products. Through the close integration of smart contract security insurance and SaaS, it will lay out an ecosystem with new development potential and huge scale of node insurance.
In terms of operation, DAO autonomy will be started, and DAO will complete the investigation and supervision of nodes, which has full advantages in transparency and security. Of course, adopting DAO autonomy will give NED holders the right to participate in the governance of NodeDAO, so that they can obtain certain governance benefits.
On the whole, NodeDAO will be one of the projects with great development potential in the current encryption market, and it will create a new field in DeFi 2.0.
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