What is Aladdin DAO?
AladdinDAO (ALD) is a decentralized network that aims to solve the problem of information asymmetry in crypto investments. With the rise of DeFi and yield farming, many retail investors have been left with lost funds due to the failure of some yield farms. AladdinDAO seeks to provide a mechanism for retail investors to make informed decisions on which yield farms to invest in.
The protocol functions as a three-sided marketplace that connects DeFi projects with yield farmers seeking reliable assets. The Boule, a council of elected DeFi veterans, curates the best farms and receives ALD tokens as a reward. The Boule is incentivized based on their contribution value, which is calculated every 14 days.
The initial Boule members are nominated by talent hunters, who are initial supporters of AladdinDAO and feature prominent names in the crypto and DeFi space such as Polychain Capital, Alameda Research, and CMS. 80% of the initial Boule members are nominated by talent hunters and 20% by the community.
Other roles in the protocol include strategy developers who conduct technical integration of liquidity mining programs to the platform. Boule Plus members are a reserve to Boule members and can be appointed in subsequent periods. To become a Boule Plus member, one must stake a certain amount of ALD, provide a verifiable Twitter handle, and pass an AladdinDAO quiz to verify knowledge of the protocol.
AladdinDAO does not have founders as it is a DAO, but it is supported by several prominent names in the crypto and DeFi space, such as Alameda Research, Polychain Capital, Robert Leshner, Kain Warwick, and several other funds and influential crypto people. Its initial Boule candidates feature names like DeFiDad, a prominent DeFi Youtuber, and several other DeFi founders and investors.
AladdinDAO has designed an intricate incentive structure to harness the wisdom of the crowds and develop a decentralized and value-adding network. After the initial selection process, Boule members undergo regular reviews based on their performance. If the total value locked (TVL) in the protocol exceeds the TVL of the previous period, the top five Boule members get promoted to talent hunters. Talent hunters, in turn, earn passive income based on the performance of their nominated council members. If the TVL falls compared to the previous period, the bottom five council members get cut subject to a minimum of 30 permanent council members.
Boule members are incentivized based on a formula that adjusts for absolute profits generated by the protocol, relative profits contributed by their votes, time decay, and weight of vote. The more Boule members vote in favor of a proposal, the less weight their vote carries. Boule Members are rewarded for "Yes" votes to an outperforming pool and "No" votes to an underperforming pool. This design incentivizes Boule Members to vote responsibly, independently, and with a high conviction level. Rewards are paid out biweekly from the DAO mining.
Any project can apply to be added for yield farming services for a fee of 2,000 ALD. More than half of Boule members have to participate in the vote, with a simple majority in favor of the proposal required. If less than half of members vote, 20% more "Yes" than "No" votes are required for the proposal to pass. A Boule member can veto and call for a token holder vote if at least 20% of token holders veto the proposal with a simple majority. In this case, the project’s application is rejected.
Overall, AladdinDAO is a promising project that aims to tackle the problem of information asymmetry in the DeFi space. Its innovative approach to using collective value discovery through a decentralized network can help retail investors make better investment decisions, while also providing liquidity to DeFi projects. The Boule, a council of elected DeFi veterans, plays a crucial role in curating the best yield farms and receives ALD tokens as a reward for their contribution value. With its intricate incentive structure, AladdinDAO incentivizes responsible and independent voting by Boule members, making it a truly decentralized platform.
In conclusion, AladdinDAO has a bright future in the DeFi space, especially given the increasing demand for yield farming and liquidity provision. Its unique approach to solving the problem of information asymmetry has the potential to revolutionize the way retail investors invest in crypto. With the support of prominent names in the crypto and DeFi space, such as Alameda Research and Polychain Capital, and an active community of users, AladdinDAO is well-positioned to become a leading platform in the DeFi ecosystem. As the DeFi space continues to evolve, it will be interesting to see how AladdinDAO adapts and innovates to stay ahead of the curve.
The investment information, comments, and recommendations provided here do not fall under the scope of investment consulting. Therefore, making an investment decision based solely on the information and comments provided here may not yield results that meet your expectations.
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