Utilise the DAO Fund to extra incentivise BALN stakers

Hi Guys,

Firstly, before I get into my idea is there anywhere to find out what tokens the DAO fund currently holds? I can see at the time of me writing this the DAO fund has a total amount of funds = $3.6M.

I thought we could use a portion of these funds to invest via OMM Finance using a stablecoin such as BnUSD (Once this has been added to OMM) and then split the interest earned to BALN stakers. We would need to ensure there are available funds within the DAO to use when required however just an initial idea to potential leverage the DAO fund to benefit BALN stakers. i.e. $1M invested in OMM Finance would produce an extra $400K approx. per year if BnUSD’s interest rate was similar to the other stablecoins on OMM.

Please let me know your thoughts everyone!

Jake Edwards

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Hey Eddie - you can find DAO Fund holdings here. Overall the idea of lending on Omm makes sense and is something I’d be interested in pursuing

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Hey Scott,

Appreciate the response.

What’s your thoughts on the fine details here - do you believe investing 100% of BnUSD from the DAO to OMM Finance is suitable? (Depending on the interest rate on OMM)

Lastly, all interest accrued should be paid to BALN stakers proportionally via weightings etc. This would mean that the DAO itself would be in the exact same position in terms of holdings and the BALN stakers benefit from 100% of the interest.

Let me know your thoughts. If any other community members have further ideas to add to this, would love to hear your suggestions.


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Hi Scott,

If we have no further discussion / input from the community could we proceed with an on chain vote for this?


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I think this is a good idea banks in the real world are there to make money and it should be no different for balanced. Payouts should be strictly only to stakers of Baln. How much of the earnings should be distributed is another question. I would like to see a good portion as we are just utilizing the DAO fund. As long as the DAO fund can reclaim the utilized funds at anytime when needed. But it is a shame to not utilize funds which is low risk ie supplying stable coins on OMM.

I like the idea overall but let’s consider a few things. I want to explore what the actual goal is.

If the DAO Fund lends on Omm, that’s the same as taking interest away from other bnUSD lenders. It’s in the best interest of Balanced and the ICON DeFi community to have high interest rates on bnUSD, so do we want the DAO lowering the rate?

If the goal is to grow the DAO Fund, then yes depositing a large amount of our reserves into Omm is a good idea. If the goal is to increase the attractiveness of lending bnUSD, then we need to be more careful about this.

As for automatically distributing profits to BALN stakers, this would add a considerable amount of complexity to the process when I think we could instead vote for some sort of occasional distribution to BALN stakers via a DAO Fund proposal. It’s just much easier from a development standpoint for a similar result.

Also, depositing into Omm and managing the position of the DAO is something that could be much easier once Optimus is live, so I’d like to speak with their team about that as well

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What if instead of supplying bnUSD, we use a portion of the DAO fund to purchase iUSDC and USDS and supply those on OMM?

This way, we can grow the DAO Fund without impacting bnUSD borrowers. I believe it would also increase the attractiveness of lending bnUSD, since the rates for the other two stable coins would decrease.

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