FAQ

All the questions and answered related to the DAOventures product and DVG governance token

General

Why did we create DAOventures?

  • The DeFi environment is still in its infancy due to its poor user experience, anonymous founders, inexperienced teams, and technical issues. We aim to build the simplest and best tool to invest and manage your DeFi portfolio.

  • Our core team researched, analyzed, and followed the latest DeFi protocols to filter the best from the rest. Our main value proposition is focused on simplicity. We intend to improve user adoption and trust and aspire for the best performance by selecting risk-averse strategies.

  • Gas prices have been really high, and it was expensive to invest by ourselves, so we pooled our funds together. We decided to build a solution that will help a lot of people.

What are network fees?

Network fees are collected by us on deposits to perform several activities such as maintaining the price of the DVG token. Network fees are collected based on tier. It means that when the deposit fee reaches a certain threshold, the fee will be lower than normal.

What are profit-sharing fees?

Profit-sharing fees are collected by us from your profits earned when you withdraw your tokens. Same as network fees, the profit-sharing fees are collected to maintain the whole DAOventures ecosystem.

Why do I need to approve before the deposit?

This is to authorize our products to utilize your tokens. Be careful of products that never ask you to approve first before deposit!

How do DAOventures protect users from black swan events?

In the unlikely event of extreme market volatility or a critical issue, the team can perform an “Emergency Withdrawal”. Emergency Withdrawal is a function that allows us to exit any interaction with the external product. When a critical issue arises and the team determines it threatens users’ funds, the team will immediately execute the emergency withdrawal function to withdraw all invested tokens from the affected product. This ensures minimum loss to the funds of our users.

Is there any Liquidity Provider (LP) token received after depositing?

Yes, the amount of Liquidity Provider token is proportional to your deposit amount in total locked value.

What is the vault-strategy mode?

It is an interaction method between vault and strategy. A Vault is a place where users interact with, for example, deposit and withdraw tokens. These tokens will be sent to strategy by vault. Strategy is a place to do all the yield farming stuff.

So, the token is sent to strategy by vault? Why don't users send tokens directly to strategy?

This is because we don’t want users to do anything when there is a change in strategy. Change in strategy is needed when we upgrade to a higher yield strategy or vesting the strategy when there is a problem in the product. Traditionally, users need to withdraw all tokens and deposit them into a new strategy when a change in strategy, but with vault-strategy mode, our team will help to move your funds to a better strategy.

How does DVG make sure that new strategies are not “rug pulls”?

  • Multisig Approval - New strategies have to be approved by multisig wallet holders to be implemented.

  • Time Lock - New strategies must deploy to Ethereum, register in the vault, wait for 2 days before being approved by the multisig wallet. Within these 2 days, the community can also help to review the upcoming strategy to ensure that the strategy is not a malicious strategy.

Flash Loans can be implemented by smart contracts only. We just do a simple thing - block any smart contract to interact with our products.

Is this safe? How risky is this?

Our Smart Contracts are audited by independent third parties. Before deciding to participate in any investment, you should carefully consider your investment objectives, strategies and your risk appetite. Most importantly, do your own research before the investment.

Revenue

Business Model

DAOventures' business model is plain and simple. It is an "Asset fund manager" that takes a small % of fees to maintain the platform. All fees and profit shares are recorded on the smart contract for transparency.

Fees

What are the Fees?

  • 0.5%-1% network fee on funds deposited to the DAOventures strategies for operational and development cost.

    • Deposit below $50,000 USD = 1%

    • Deposit between $50,000.01 USD to $100,000 USD = 0.75%

    • Deposit over $100,000 USD = 0.5%

  • 20% fee for profit sharing with the DAOventures protocol sustainability and the DVG DAO community pool.

    • 8% goes to Community profit sharing via DVG buyback on Uniswap or other DEXs and shared with users via DVG staking

    • 8% goes to the Daoventures treasury to for operational costs

    • 4% goes to the strategy makers

(Profit sharing fee cannot exceed 30% in order to prevent rug pull)

Where do the fees go?

  • They go to a dedicated DAOventures treasury contract that is controlled by a multi-sig wallet to ensure transparency and reinvested back into the project for long-term success. This is the address: 0x59E83877bD248cBFe392dbB5A8a29959bcb48592

Governance

What is the name of DAOventures’ Governance Token?

DVG Token $DVG

What is the purpose of $DVG governance token?

  • $DVG is created with a 100% fair launch. There is no pre-mining for the team & advisor, heck, we pay for the security audits and development ourselves.

  • We also believe in long-term success by encouraging more market participation into DAOventures as supporters. Hence, the deflationary distribution model, with low daily inflation rate to market selling pressure. Simple and proven to work!

  • We also believe that late market adopters should also get an opportunity to participate in up-and-coming DeFi protocols as many users did when YEARN.finance first launched. $YFI is only limited to 30,000 tokens and it has completed its mining reward distribution. The only method to participate in the YEARN protocol is to acquire the $YFI token from the secondary market (priced at $30,000 on Sep 4 2020 according to CoinGecko).

What is DVG exactly?

  • $DVG is the governance token that allows holders to vote, propose, and approve any consensus or proposal that governs the DAOventures protocol.

  • Consider it as “equities/shares on a decentralized finance protocol”.

What are my benefits as a $DVG holder?

  • You would be able to propose, vote, approve, and “set the direction” for the future growth of the protocol.

  • As a reward, $DVG could be traded in the secondary market. The prices are determined by the free market.

  • $DVG holders will also receive shared % from the profits of the DAOventures product (if staked in the governance contract, similar to YEARN)

How do I acquire $DVG governance token?

  • $DVG is “mined” by staking ‘dv LP token’ (or equivalent dao_stablecoin) into the ‘DAOventures governance’ smart contract.

  • ‘dv LP tokens’ are minted by providing liquidity to the DAOventures product.

  • The amount of $DVG rewards are split proportionately based on the amount of liquidity provided in the pools. i.e., 1,000USDC in a 10,000USDC pool equals 10% of the pool. Proportion per block will be distributed to LP's smart contract.

  • Or, you can buy it from someone else after they successfully “farm” it.

Can I buy it from the DAOventures team?

  • We recommend earning it yourself by depositing liquidity into the smart contract pool.

  • Or, you can buy it from the secondary market i.e., Uniswap or Pancakeswap pool.

  • The treasury will add a Uniswap pool to enable more liquidity in the market. See treasury and multisig for details.

Theoretically, how can I profit from $DVG as compared to being a pure LP provider?

  • LP provider gets their yield% from the DAOventures product strategies. Upon withdrawal, there will be a 20% withdrawal fee from the profit.

  • 10% will be contributed to the treasury for continuous operations and development of the protocol (similar to YEARN) and 10% will be distributed to $DVG holders proportionately in the $DVG DAO community pool in the smart contract.

  • This ensures that $DVG holders will be rewarded even if they have moved their capital to other DeFi protocols. We believe in giving back to the community and supporters.

  • Of course, all of these treasuries will be in multi-sig wallet ensuring transparency and vested interest for all signatures (nomination will be announced later)

Community

What is it? Does it really matter?

  • Governance proposes how features are added to the DAOventures ecosystem. Users start a proposal on the community, discuss it and gauge the sentiment of the proposal. If a lot of users agree with it then it can be posted on-chain for everyone to vote on.

How many people need to vote to pass a proposal?

  • The quorum is 20%, which means that 20% of the staked $DVG needs to vote on a proposal for it to pass or else it will fail. Also, it has to have at least 50% of the votes for yes.

  • You can post your proposal on-chain first but if people haven't talked about it, they probably won't vote for it.

How can I make a proposal?

  • Raise the topic on Discord or Telegram and discuss it with other community members.

Who can make a proposal?

  • Anyone can post a proposal both on Discord or Telegram and on-chain.

How do I vote?

  • Stake your $DVG and then you can cast your vote for a proposal that is on-chain on the voting dashboard.

Treasury

Details

  • Minted $DVG tokens are sent to respective ‘treasury smart contract’. Treasury smart contract will be fully ERC-20 compliant.

    • 15% goes to the core team, tech, ops, and future hires. All tokens will be vested and distributed equally over 4 years to ensure vested interest with the DAO community believers.

    • 15% goes to the DAO community pool smart contract. All tokens will be vested and distributed equally over 4 years to ensure vested interest with the DAO community believers.

    • Balance 51% goes to the LP’s distribution in the smart contract.

    • 19% are used for pre-sale, liquidity for AMM pools, and kept in treasury.

  • Core team, tech, ops, and future hires

    • Core team = 8% of treasury funds are distributed to the core team All distribution for core team vests per block.

    • Tech and Ops = 7% used for daily operations; engineering & innovation of DeFi products.

  • DAO community pool for GP/advisors, growth, and community.

    • Community & Growth = 7% kept for further development and growth use; ie Referral programs, smart contract audits, bugs bounty, community rewards, etc

    • Partners and Advisors = 8% used for regional development, partners referral, advisory fees, etc.

  • ‘Treasury smart contract’ parameters and variables can only be changed by multi-sig approvers. See below for ‘multi-sig approvers. The treasury will also receive 5% from the profit-sharing of LP’s withdrawal.

Multi-Sig Approvers

// aka ‘board of directors in the real world’ (refer to Yearn multisign approach)

  • Total 9 signatures for Multi-Sig approvers (using Gnosis Multi-sig)

    • Nomination to be confirmed by co-founders; Alvin Foo and Victor Lee

    • Weights are a mixture of the core team, initial LPs, and ‘active+engaging DAO community members.

  • Quorum parameters:

    • Approve == 5 of 9 multi-sig.

  • All approvals will be published on DAO smart contract to ensure transparency.

Technical Support

I sent my ETH transaction but it says pending? How do I fix this?

  • You should always make sure to set your gas properly if you want a transaction to go through quickly. Check current gas prices at Ethgasstation or gasnow.

  • If you're using MetaMask and you put your transaction through but it's going too slow, you have the option to speed it up by clicking the speed up button below your last pending transaction under "activity". This should resend the same TX again with a higher gas price to get it confirmed faster.

  • If you've tried everything and your transaction is still stuck pending, you can fix it by sending a transaction to the nonce of the first stuck transaction with a high gas price to overwrite the stuck queue. Here's a good guide explaining how to do this.

Why is the withdrawal fee so high?

  • If you're seeing higher than normal fees while using the Yearn ecosystem then it may be due to Ethereum congestion and abnormally high gas costs. Check Ethgasstation. Your options are to wait until gas prices drop or spend the money to process your transaction now.

  • If the gas prices are crazy high, that means there is an error and the transaction will not be able to process.

Feedback

If you have questions about what it is, who we are, or how to operate then we can help:

If you have any feedback or any suggestion or something else you can directly reach us at