Recapitulation of TAODAO FINANCE PROJECT AMA event held at AMA LOVERS CLUB.
Date: Friday, 7th May, 2021
Time: 16:00 UTC
The TAODAO FINANCE PROJECT team was represented by @Cowboyepoch, @XConfucius, @StableFiat and @Wowwa who judiciously shared with us detailed knowledge and information about TAODAO FINANCE PROJECT.
1st Segment: INTRODUCTION
Q1: Can you please introduce yourselves and your background, also introduce the team working on TaoDAO?
ANS: Yup! I'm Cowboy, working on building the community, marketing and design elements of the project. Been in crypto since 2017 and have successfully run mutliple creative agencies in my time, now switching the focus to work in the DeFi space
Hi I'm 0xC, I found crypto in early 2017 during my last year in university, and have been involved ever since. I studied a mPHYS in theoretical physics and am a self taught programmer, really getting into solidity during last defi-summer when i was aping into various farms :)
Hello all Ama Lovers,
I'm Budi, I'm a Bsc software engineer.
I'm a FullStack developer with years of experience in the banking industry.
Im in crypto since 2017. I strated develop in Solidity few years ago and I knew this is it!
Currenly doing mostly the Solidity part of the project.
I'm happy to be here with you and with all of my friends at Tao Dao team :)
We also have 2 more devs that are unavailable at the moment, both are full stack developers, R0bster is a full stack solidity with a bsc in comp sci, currently finishing off a masters in IT security.
you may see them in the communities as r0bster and escobar :)
I will interduce Escobar as well. he his another team member who couldn't be here with us today.
Escobar is a software engineer. worked for 12 years developing for SAP and global banks, 3 years full stack solidity.
Developed 3 defi projects with a combined market cap of over $200m.
Escobar currenly is on the front end position :)
I'm Stable Fiat. One of the founders of $TAO DAO. Outside of crypto I've spent many years creating campaigns in the advertising industry. Joined Crypto in Defi Summer last year. Since which I have helped launch a couple of 50mil mc tokens
Thats everyone, think we can start 🙂
That's the whole team, we currently are looking to hire more developers and community managers to help our growing community.
Q2: Can you introduce TaoDAO, why was it created? What problems does it solve and how?
ANS: Tao DAO is a DAO governed bank, our aim is to create a defi primitive asset that is consistent, decentralised and can act as collateral. The majority of defi is still using centralised stablecoins pegged to the dollar, and we aim to create something which is not pegged and whose monetary policies are DAO governed. This is a utopian idea that is yet to be achieved by anyone in its entirety.
TAO is this asset. It has an elastic supply, which grows when the treasury reserve grows. Each TAO is backed by 1BUSD, which is the current reserve requirement. This does not mean that it is pegged, much like many financial products there is a premium above its balance sheet. The protocol then uses inflation generated currently only by bonding to reward stakers and liquidity providers. The key is to grow our supply and liquidity in order for us to be able to be integrated thoroughly as collateral. We started on BSC as we believe this has the best demand and also currently similar protocols like TAO are on ETH where many people are priced out, our goal is to become a multi-chain primitive for defi.
Bonding is the process in which someone can sell their LP tokens to the protocol in return for TAO over 5 days. You would essentially buy tao at a discount to market value, and paying with LP tokens. Because the protocol only cares about the intrinsic value, it is able to split the excess value of the LP share between the bonder, single-sided stakers and LP stakers.
The inflation is controlled by the DAO, so that there is a reserve runway that will allow us to give people predictable returns in the short-medium term currently.
Q3: I'm curious, what are the rewards accrued to the stakers??
ANS: So currently, the protocol inflation is split 50/40/10 to LP Staking reserves/ Staking reserves and DAO.
Stakers are enjoying >200k% APY, thanks the power of auto-compounding 0.53% every epoch (6 hours)
LP stakers have 1000% APR for providing liquidity.
These rewards can be sustained for 50 days at the current rate, assuming we close the bonds tomorrow.
Put simply, if someone bought today and staked today, their break even would be 70% below market price in 50 days, or in other words you will increase nearly 300% in your TAO position. The aim of the protocol is to generate reserves in TAO so offer rewards at a predictable rate.
Q4: TaoDao is a project in it's early days with alot on the way to be achieved
How is TAO designed to be sustainable?
ANS: Just like any currency, inflation is used to incentivise economic activity. As long as we have mechanisms to generate inflation we can incentivise anything. Currently we want to grow and build liquidity, therefore we are incentivising stakers, and those who sell us liquidity that become owned and locked to the protocol. We are a handful of days old and currently we have $1.3m Protocol owned liquidity, and $340k BUSD in treasury reserves. So where does inflation come from? Right now it is just LP bonding that generates rewards, the details of the maths can be found in our gitbook. We are able to value the LP shares at risk free value and the way to mint TAO is to deposit either reserve assets (BUSD) or principle assets (LP shares) into the treasury. Then the treasury will calculate how much TAO it can mint backed off those assets and return it to the reward pool contracts. Currently we have generated $21.6m TAO in reward reserves which allows us to sustain these APY/APR for the coming 50 days.
by knowing the amount of TAO in reserves, and representing the APY in TAO we can easily calculate our runway. We hope to build analytic tools like DUNE for this on BSC for the community to see. Here is the gitbook if anyone is interested in the maths. https://taodao.gitbook.io/taodao/
Q5: Can you give an overview of your Tokenomics, and the utility of the $TAO token?
ANS: We are in the bootstrapping phase at the moment, which means our main goal is grow liquidity and supply. We hope to get TAO to be come collateral in lending markets, for derivatives, for betting markets - but to get there we must first be liquid enough to liquidate collateral. Here are some stats:
225k Total supply
107k Circulating supply
We also raised a private round of $540k for development through pTAO, an option to buy TAO. They are vested at a total of 5.4% of circulating supply, the team also has pTAO vested at 7% of supply. The vest fully unlocks at 1 billion circulating supply which we think correctly incentivises with growth of the project rather than just time. If we do not grow - the unvested pTAO is worthless.
Q6: So finally on this segment, What are the next steps for TAO?
ANS: During the bootstrapping phase, depending on community governance we will be launching BUSD bonds and Sales contract. This will be a far more efficient way of increasing supply and thus generating rewards. We just need more liquidity in order to sustain this growth. Our aim is to make our direction lead through community governance, we will as a team propose ideas as like others will and we can decide on the direction we want to go. We have already spoke a little in the discords and have discussed ideas on implementing more longer term token economics for staking, partnerships with vault strategies, becoming cross chain and having betting markets, where people can lock their staked TAO for a binary prediction, such as a UFC fight.
The long term goal is to be a primitive collateral for a multi-chained De-FI. We believe BSC is the best place to start in search of growth.
We have many of our own ideas but we encourage community to share with us their ideas.
In my eyes, the beauty is that Dao can easily change the algorithem behivor in order to change the problems it solves. which gives a lot of power and control to the community.
Thats the key to our success.
Yes, The community can also choose to vote how to distribute its protocol profits. As part of our Tao philosophy of "going with the flow" we understand that there will be ideas and implementations that we have not imagined yet that will be imagined by those least expected.
2nd Segment: LIVE Questions
Q1: I read that TAODAO is a folk of $OHM that's Olympus finance project I think, after checking Taodao has the same website frontend just as Olympus. What really differentiate you from Olympus? Since you said there are some advancement. Also, Olympus is doing well in the crypto space, how do you intend to mesaure up with this standard?
ANS: We all have been deeply involved in algostables, so have the investors over the past year. We believe OHM design was the best design seen so far. They have been audited and thus we decided to fork their code as a base and build upon it in our own direction. BSC seemed to be a place untapped by these types of assets and i believe that DeFI unlike some ETH maxis believe would become a multi-chained world, and therefore it is important to tackle this in that way. The fork of the website was my choice to speed up our launch, we will be creating our own website, growing our developer team and getting audits for our new contracts and go down our own journey to differentiate ourselves. We dont think they serve as competition at this juncture as we are on different chains.
Q2: It would be great if you can boost our confidence and trust in you, by telling users about your SECURITY STANDARDS, especially your smart contract is it AUDITED? Can we also take part in the GOVERNANCE. Of TAO DAO?
ANS: Ohm contracts are audited by peckshield, we purposely changed as little as possible to retain this protection. Liquidity is locked in wault currently until the end of the month by which we will have voted in a DAO multisig comprised of community, team and investors. All governance will be discussed in discord and on forums, voted through scattershot.
Q3: Whats the difference between $TAO and $pTAO?
ANS: $TAO is our token
$pTAO stands for Pre-TAO, it's what the private investors received in the private round.
They can convert $pTAO to $TAO as a fixed % of circulating supply (around 5%)
It is growth locked.
As supply grows they get to vest more.
If it doesn't grow they can't vest.
This aligns their incentives with the protocols and all other investors, since they must help it grow to realise their investment.
Q4: What is that one unique thing about TAO DAO that makes it stands out and why is it backed by BUSD as this is the first time I will see a project backed by BUSD?
ANS: This is important as we aim to become an uncorrelated asset to macro crypto assets. This means our treasury should be comprised off assets that provide uncorrelated returns. We started with BUSD just to make it simple enough :)
Q5: Investigating their project, they say that their token is not linked to US dollars or their exchange policies, but it has a relationship with BUSD that if it is anchored to the dollar, could you tell me what difference is there in using a crypto asset from the US dollar?
ANS: Busd was chosen as it is the most liquid fiat currency on BSC. We do not believe regulation and centralisation poses an issue in the short to medium term. Even DAI which is a billion dollar protocol has yet to see regulation hit. We thought it would be better to favour growth than decentralisation at he current point. We hope to transition to other assets and currencies. Although we hold BUSD as reserve it does not mean we are impacted by their monetary policy. The reserve serves the purpose to buy back below its intrinsic value and burn TAO, providing a long term price floor at 1$. not pegged to 1$.
Q6: The secret to success in business or marketing is always different, because it will make all investors notice and remember. So what differences does TAODAO promise to bring that will make investors jump in?
ANS: We're heavily focused in the early stages in educating people with no prior knowledge, we believe building as strong community as possible is crucial for this kind of project, in terms of a marketing strategy, we want to promote organic growth and build from the ground up whilst also starting campaigns that will clearly outline our short term and long term goals. Saying that though this is an ambitious and new concept to the crypto space so we will be making sure our marketing campaigns match the ambitious nature and have a bold message about the future of the crypto space with us in it.
Q7: Whats the difference between $TAO and $pTAO?
ANS: TAO is the token backed by reserves that everyone uses. pTAO is just an option to purchase TAO at intrinsic value. They send pTAO + 1 BUSD (or whatever the intrinsic value is at that time) to the Exercise contract to receive TAO. They can only exercise a certain % of circulating supply. This means that the more circulating supply grows - the more the pTAO can be unlocked.
Q8: Been a DAO, how does the community get involved in the project?
ANS: It is as easy as joining our discord, there are plenty of people who talk there every day!
Q9: The secret to success in business or marketing is always different, because it will make all investors notice and remember. So what differences does TAODAO promise to bring that will make investors jump in?
ANS: It'll be hard to ignore us with the growth and milestones we'll hit, especially in the BSC space.. There isnt a project like this and we will like to let the protocol do the talking eventually 😉
Q10: Are you currently in need of developers to support your project? what are the requirements and processes of applying for this service?
ANS: Yes we are looking for more full stack solidity developers to our V2. You can apply by dming me after this.
Q11: There are three ways of launching a project in DeFi
1. A vested round with VCs who add more value than just funds
2. A “fair” launch with about 100 quadrillion tokens to one BNB
3. Mute the telegram and promise the website will be up soon
Which way did Tao Dao Finance choose and why? What is the benefit of choosing these way?
ANS: #1 ser, Sorry this statement was a joke in the medium article. Hopefully most people got that (#2 & #3 are scams)
Q12: What are your current plans to onbroad new clients and what market are you targeting?
ANS: We are currently looking to target those who are more long term incentivised and believe in a future of decentralised mutli-chained defi. It is important to us to have investors of a long term mindset - rather those who are looking for a quick gain in a short period.
Follow Us On Our Various Social Media Communities For More Update;
TG Announcements: http://t.me/TaoDAO_Annoucement
TaoDAO App https://taodao.finance/stake
TAO Staking Calculator (created by sh4dow)
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