Requesting input and feedback from PrimeDAO for a potential DAO Partnership between PrimeDAO and BalancerDAO.
The proposal is also being discussed on the Balancer forum here ←
A docs version of this proposal with Comment rights open can be found here.
Partnership Purpose
The partnership aims to align the interest of the parties to intensify the collaboration between the organization. With PrimeDAOs relaunch, it seeks to further commit to the building on the Balancer Protocol and supporting the decentralization and development of the BalancerDAO.
The current Prime product suits, consisting of Prime Launch (LBP interface), Prime Rating (research sub-DAO), Prime Pools (DAO governed Balancer Pools) and Prime Deals (Interface for DAO agreements) aim to provide substantial value to BalancerDAO and aligned DAOs.
Background on the Partnership
The relationship between BalancerDAO and PrimeDAO goes back to Q4 2020. Since the launch of PrimeDAO in November 2020, the Balancer protocol has played a crucial role in the PRIME ecosystem. Initially coined the Prime LP Manager, PrimeDAO has governed all parameters of its main liquidity pool on Balancer, existing of 20% ETH and 80% PRIME via the PrimeDAO’s initial governance mechanism (Alchemy by DAOstack).
In Q1 2021, PrimeDAO set out to revamp the LBP experience for users and project teams alike after an uncomfortable experience with another launch product. Through a grant from Balancer Labs, the development of what is known as Prime Launch started. Prime Launch allows anyone to bootstrap a token without needing to write a single line of code. The product provides a crisp and user-friendly interface, support, and ecosystem of service providers that will enable the best decentralized launch experience (going live on December 13th, 2021).
With the development of Prime Launch, PrimeDAO became a Balancer v2 launching partner, and the collaboration extended to active technical and organizational development. In Q2 2021, Balancer and PrimeDAO made headlines by starting BLxPR, the first DAO2DAO pool, a shared liquidity pool between Balancer and PrimeDAO.
Since then, the teams have continued to work together, and various PrimeDAO contributors have supported the development of BalancerDAO and the Balancer Protocol.
After successfully re-branding and raising seed funds, PrimeDAO has grown to over 30 full-time contributors and is ready to launch its product suite and solidify relationships with aligned DAOs. Some of the DAO that have recently partnered include DeFI Safety and Gitcoin.
Commitment of the Organizations
Both parties agreed that they intend to contribute the following towards this partnerships:
D2D Collaboration
- PrimeDAO’s primary aim is enabling D2D collaborations and shares this vision with Balancer. PrimeDAO will support the development of the BalancerDAO and, where possible, share learnings and resources with BalancerDAO.
- BalancerDAO will get early access to Prime Deals , an Interface for DAO to DAO interactions, such as token swaps co-liquidity provision, and joint venture formation, to give input, to ensure the product serves the needs of BalancerDAO.
Technical
- PrimeDAO will continue to host Balancer LBP through Prime Launch and support the development of LBPs on Balancer.
- PrimeDAOs builders will continue to support the development of the Balancer Protocol.
- PrimeDAOs will support the development of the Balancer Protocol on alternative blockchains, currently evaluating the deployment of Balancer V2.0 on Celo and xDAI chain in collaboration with Symmetric, with the potential for it to develop into a Balancer Friendly Fork.
Operational
- Both DAOs will actively share DAO operational learnings and workflows, starting with a bi-monthly knowledge-sharing session covering three topics relevant to both DAOs. The first session will be organized in mid-January.
Marketing
- To ensure both entities will profit from each other’s reach and marketing or sales activities, we will do co-branded communication & services where applicable.
Co-liquidity provision:
- To align governance interests, between the two organizations, the creation of a co-liquidity pool is proposed with the following details; 25,000 BAL from the Balancer Ecosystem Fund would be transferred to PrimeDAO at the end of PrimeDAO own LBP to bootstrap a PRIME / BAL pool with 50/50 weights and 2,5% trading fees. Right after the conclusion of the PRIME LBP, PrimeDAO will seed a pool with the 25,000 BAL and match it with the same $ value in Prime. Once the pool is initiated, PrimeDAO will transfer 50% of the Balancer Pool Tokens to the Balancer Ecosystem Fund to complete the transaction.
The pool will again be called the Balancer <> PRIME pool (BLxPR) and function as a liquidity bridge between the two DAOs. The BLxPR pool will be one of the two main liquidity pools for PrimeDAO.
Governance
- The BLxPR token will be added to the Snapshot strategies of both DAOs to allow BLxPR token holders to participate in the Governance of both protocols.
- A new snapshot will be set-up with the BLxPR as the governing token. This snapshot will be used to govern issues related to this DAO agreement.
Pool Optimization
- PrimeDAO aims to create deep liquidity between BAL <> PRIME to be able to bring more projects and liquidity to the Balancer Protocol. PrimeDAO aims to do this by actively engaging in D2D agreement with other DAOs and creating PRIME / xxx pools on the Balancer Protocol .
- PrimeDAO also aims to leverage the various upcoming Balancer Pools in combination with PrimeDAOs existing products. Prime Rating could potentially be utilized to create research-driven managed pools and Prime Deals could be connected to the Balancer Protocol to allow multiple DAOs to bootstrap a pool together in a completely permissionless way.