OpenSwap DAO + openDAO developement

Name of DAO

OpenSwap DAO // OpenDAO // OpenTAO

Proposal overview

OpenSwap DAO/TAO

Decentralised Autonomous Organization // Trusted Autonomous Organisation

21.12.2021

Overview

The basic principle for this grant request is to develop a state of the art DAO contract generation application that not only openswap can use but any organisation. The main goal for the contracts is to seamlessly manage, though the use of multiple wallets/users (AKA protocol angels). The Angels will have the ability to submit dynamic contract execution through a voting platform. This will enable Angels to manage funds as they wish(given they all agree) through a decentralised consensus algorithm. Overall you will be able to do the following:

1: send transfers.

2: add liquidity to any protocol you wish.

3: wrap tokens

4: collect farming rewards

5: execute trades

6: remove liquidity,

7: deploy contracts in parallel to the DAO to add Functionality.

8: vote on approval of execution or deny the execution based on quorum and total votes

9: add farms to a DeFi protocol.

10: change farm coefficients.

11: declare new function calls.

Overall, this could be considered a multi managed dynamic contract manager with user consensus.

Another interesting feature is the fact that lambda users(given a certain supply(can be changed by vote)) can create proposals and submit ideas that all other users can vote upon.

Proposals will have statuses based on where the voting is at.

Stage 0: Angel/Protocol user submits proposal

Stage 1: angels vote to push proposal to general vote,

Stage 2: general vote

Stage 3: proposal is approved and applied,

Stage 4: proposal is denied and no action is taken.

This grant should also include the creation of our own dao which will also serve as proof of concept for the openDAO project.

We are also working on a decentralized Job manager but that will be considered in an other grant.

Milestones

  1. Write Contracts
  2. Write SDK
  3. Test contracts locally
  4. Develop User Interface
  5. Deploy contracts on testnet with UI
  6. Open Testing on testnet
  7. Security Audit.
  8. Deployment on Mainnet
  9. Open DAO to external Organisations
  10. Deploy OpenDAO to all EVM compatible chains.

Specifications

The DAO contract will be able to execute any tx on behalf of itself given the Angels agree. Only angels will be able to submit and vote on internal txs. This could be used to pay people, manage protocol funds. Receive donations, deploy other contracts etc…

The DAO will in turn be hooked up to a custom Job management contract which will manage jobs of internal workers as well as work rate, hours worked, all verifiable on chain. This will come as a later step. Maybe even a secondary grant.

User Vote token will be non transferable, non buyable, non sellable. Only way to get voting power is to earn it through protocol participation.

Angels will be Identified through the use of NFT. the NFT token will be sent to Angels. In the case an angel goes rogue or tries to sell the NFT, the NFT can be burnt through vote. Same applies to regular vote tokens if malicious intentions or spam arises.

As for licenses, we will keep the contracts open sourced but licensed in order to protect intellectual property. The ability to create new DAOs will however be open to anyone on any chain with a small fee for deployment of contracts. Which will be automated, only needing gas. OpenSwap mentality is against greed and therefore no fees will ever be put up. Same applies for taxation in any way.

Complexity

This is a very complex set of contracts that will need a lot of testing and no rushing. Hopefully the grant itself will be sufficient in order to develop this never before seen self managing DAO .

For audits alone we expect to pay at least 30k usd. Workload will be large and will need the hire of multiple UI developers in order to develop the front end. On my part the development of contracts is already beyond the 200h mark and I still have much to do but it’s looking feasible and amazing.

Features

  1. External Proposals

Trusted and well established members of the community can propose to the team what they want applied or done on a protocol level.

  1. Internal Proposals

Angels have the possibility to create execution proposals and vote whether they agree it should be executed.

  1. Angel NFT Authentication

Burnable ERC721 for Angel authentication. Managed by the DAO/TAO itself

  1. Fund Management

Can manage its own treasury which includes unlimited possibilities including swapping, providing liquidity, collecting rewards, distributing rewards,

  1. Self Interaction

Can Interact with itself to change some of the core functionality and set different consensus parameters

  1. Dynamic functionality addition

Can add new features and contracts on top of original contracts to add functionality. For example: a contract that can send a given amount split into X users and their respective addresses.

  1. Defined Function Calls

Easy to use, self explanatory, function encoding.

End note:

OpenSwap will undertake a series of projects, most of which are mentioned in our roadmap. If we could submit each step as an individual grant that would be great. We could also propose an enormous single grant with all steps but i’d rather we do it on a per project basis. Giving us time to work or rest in between grant completion.

The following are planned but not listed in order:

OrderBook

Lending protocol

Job Management

MultiChain deployment of Openswap DEX (Multiple DEXs, One farm, One Token)

Accidental loss Insurance for openswap, and maybe others

Launchpad/ IDO for newer projects

Fiat gateway

Automated Tax declaration tooling for OpenSwap

//Open Finance Project//

CeFi reserve based stablecoin

Cefi POS(point of sale) terminal integration

And more to be thought out.

Proposal ask

150k to 300k usd

Metrics for success

Internal Angels: 5-9
External Users: 800+
Funds managed by DAO: 150k usd min.

External links

21 Likes

Looking forward to it!!!

4 Likes

Amazing!!
Wen OpenDAOs for everyone!

3 Likes

POS integration, tax tooling, :drooling_face: :drooling_face:

5 Likes

This is something that will be extremely beneficial for everyone. Taking it to the next level!

1 Like

Superb! Let’s go openswap :heart_eyes:

2 Likes

Going to be a big step forward

3 Likes

There’s nothing new I can say about the OpenSwap team that Harmony isn’t already aware of, as their good reputation is well deserved! Bullish on OpenDAO!

2 Likes

Thank you for submitting a proposal to Harmony’s $300M Ecosystem Fund

We plan to resume reviewing grant proposals after the holidays, the first week of January. In the meantime, we would love :blue_heart: to have the Harmony community participate to ask questions and provide feedback.

If you have more details to add, please do so by replying to this thread. Thank you again and we look forward to catching up after the holidays.

5 Likes

Hi,

Interesting idea and the proposal has a good bit of information already. I have a few questions to ask which I don’t believe I saw in the information above:

  1. You define a new term “Angel” which to me sounds like what other DAOs might call “Council(member)” or “Governor” - is that correct?

1a) What does the Angel selection process look like?
1b) How long are their terms?
1c) Are they compensated or uncompensated?
1d) You mentioned the use of NFTs to verify Angel status, which can be burnt if one goes rogue – how many total Angel NFTs can be minted (if you burn one, I assume you have to mint a new one to replace that Angel)?
1e) Can you provide more detail on how the vote process for rogue Angels look like? Who is voting?
1f) Under metrics for success you wrote 5-9 Internal Angels - what’s the max Angel cap? Is it fixed forever or expandable over time? Are all Angels “internal” or are there “external” Angels?

  1. You mentioned the protocol will take no fees - can you explain a bit more about how, if at all, the treasury will be built up? You also mention a Job Management contract for payment of internal workers - where will the funds come from? (I assume Angels, if compensated, would be done so as an “internal worker” and through the protocol treasury)

  2. For external proposals, you wrote “trusted and well established members of the community” - can you explain how that is determined?

  3. If I am reading it correctly, after this contract generation platform is developed by OpenswapDAO, anyone can then use the tool to create their own DAO w/ their own Angel structure (which may have different rules, but the same base framework), correct?

Thanks!

6 Likes

Hi, first of all, thank you for showing so much interest and asking some very interesting questions !

So for the answers :

You define a new term “Angel” which to me sounds like what other DAOs might call “Council(member)” or “Governor” - is that correct?

Angels in the OpenSwap DAO context are indeed the governors of the protocol. The name of the nft issued will be settable once on deployment for other DAOs

1a) What does the Angel selection process look like?

For OpenSwap DAO we already have a few trustworthy people who have been contributing since the launch of the protocol i may ask for KYC which hopefully all will agree

1b) How long are their terms?

For OpenSwap terms dont have a specific time limit. the goal of this is to have people contribute as much as they can, and for as long as they can. In the case an Angel feels he is no longer contributing he can withdraw himself, or if other Angels feel a member is no longer contributing as to what they think is beneficial to the protocol they can vote to have him removed

1c) Are they compensated or uncompensated?

All Openswap collaborators are compensated already, so there is no reason for them not to be in the future

1d) You mentioned the use of NFTs to verify Angel status, which can be burnt if one goes rogue – how many total Angel NFTs can be minted (if you burn one, I assume you have to mint a new one to replace that Angel)?
1e) Can you provide more detail on how the vote process for rogue Angels look like? Who is voting?
1f) Under metrics for success you wrote 5-9 Internal Angels - what’s the max Angel cap? Is it fixed forever or expandable over time? Are all Angels “internal” or are there “external” Angels?

That is up to the DAO. If an angel is burnt, they can either replace the person, or find a new one. there is no cap on max Collaborators. To create a new angel, an angel has to create the proposition under internal propositions, then other angels have to agree or disagree.

Concerning the internal/external context, internal are proposition which execute a tx of any kind. Externals are propositions which have no direct effect on chain.

Internal propositions are only made available to Angels. However, an angel can create an external proposition, then if voters agree, an angel can create the internal version(public) which will apply the modification on chain.

You mentioned the protocol will take no fees - can you explain a bit more about how, if at all, the treasury will be built up? You also mention a Job Management contract for payment of internal workers - where will the funds come from? (I assume Angels, if compensated, would be done so as an “internal worker” and through the protocol treasury

Lets just say openDAO is my selfless contribution to the blockchain space. A legacy i need to leave behind to make sure OpenSwap will remain a safe place even after a die(its a wild world we live in, we never know)

To fund the OpenSwap DAO the protocol has 12.5% of inflation reserved for maintenance, development, etc… since it’ll be a contract donations can also take place. however i have no faith in this being a source of income for the DAO

For external proposals, you wrote “trusted and well established members of the community” - can you explain how that is determined?

Currently , the Openswap team is very dedicated and have shown to be faithful and politically correct. But like mentionned above, KYC may be requested in the future.

If I am reading it correctly, after this contract generation platform is developed by OpenswapDAO, anyone can then use the tool to create their own DAO w/ their own Angel structure (which may have different rules, but the same base framework), correct?

That is Correct ← Simplicity at its finest

If you have any more questions following this don’t hesitate. This was quite fun, and thanks for the great questions.

Take Care,

Alex | OpenSwap

9 Likes

This is a great idea!

3 Likes

OpenSwap don’t rush things and focus on security before everything else… I see it being one of the most trusted dex on Harmony in the near future.

Keep up the good work guys!

4 Likes

Love it! Great work openx team.

6 Likes

Much obliged, Jimbo and others!

The project is still growing and has quite the way to go until we are satisfied with functionalities, but in the meantime we’ve built a very solid foundation of both economically and technically safe and sound project that is unique in its approach and design. The team’s mindset overall is just putting heads down and keep working with compassionate communication with our users in-between.

Thank you guys for being with us to this day, I see new and older supporters in this thread and it warms my heart.

3 Likes

I approve this message. ALL THE WAY.

1 Like

can we have some news on this sirs?

2 Likes

Hello @Biosensei :blue_heart:

I should have more information tomorrow.

:slight_smile:

Apologies for the delay to the OpenSwap team, and thanks for your patience while we work through the backlog of funding requests.

3 Likes

No problem sir
Was just wondering

1 Like

Love OpenSwap! Hope this gets approved soon :slight_smile:

1 Like