PrimeDAO and Balancer create the first ‘DAO2DAO’ Pool
Tokenizing a collaborative relationship between multiple DAOs
In this edition,
BAL x PRIME (BLxPR) is the first DAO2DAO pool running on the Balancer protocol that can be accessed through the new Prime Pools Beta dAPP.
DAO2DAO pools are liquidity pools governed by multiple DAOs that enable a coalition of DAOs to cement political-ecosystem relations.
The pools allow alliances of DAOs to share liquidity, have mutual ownership over a pool, co-govern and co-farm them. The mechanism also facilitates DAOs to fund common goods.
BALxPRIME is the first DAO2DAO Pool released at the public beta version of Prime Pools dAPP, which aims to unleash the mature coordination capacity of DeFi by further enabling collaboration and alliance between DAOs.
The pool is the first instance of the DAO2DAO Pools, proposed as a result of two research cycles on DAO 2 DAO relations and collaboration mechanisms spearheaded by BlockScience and Curve Labs. The main motivation behind the BLxPR D2D Pool was to provide a tool for both PRIME and Balancer’s communities to participate in and benefit from the collaboration between the DAOs.
“Balancer Pool Tokens (BPTs) not only represent each member’s ownership stake in a DAO2DAO pool, they also serve as a joint governance token with the same DeFi functionality of any ERC-20. BAL x PRIME is the first exciting step towards a more collaborative future.” Explains Jeremy Musighi, Head of Growth at Balancer Labs.
How do DAO2DAO Pools work
DAO2DAO Pools are managed by Prime Pools, an application to govern and access pools. The pool parameters can be adjusted by members participating in PrimeDAO governance. This mechanism allows the multiple DAOs to share liquidity and ownership of a pool, as well as, co-govern and co-incentivize liquidity in them. The Pools also facilitate DAOs to fund common goods, which opens up a new venue to explore collective ownership in DeFi.
Renç Korzay, the lead of Prime Pools, believes that the pools may help DeFi transition from a competitive industry to a cooperative network:
“Imagine a DAO trying to grow in this competitive fast-paced ecosystem. Imagine the challenge they will face. Now imagine if we have 8 organizations with the same approach attacking the same challenges collaborating and sharing resources. It will amplify the network effect and help the scaling of the alliance as a whole” says Renç in his presentation on Prime Pools.
PrimeDAO is setting aside 125,000 PRIME tokens for 13 days of liquidity incentives to reward BLxPR supporters. The pool will also earn BAL rewards for providing liquidity to the Balancer protocol.
Balancer and PrimeDAO Relationship
Since the launch of PrimeDAO in November 2020, the Balancer protocol has played a crucial role in the PRIME ecosystem. Initially coined the Prime LP Manager, PrimeDAO has been governing all parameters of its main liquidity pool on Balancer.
Inspired by the potential of Liquidity Bootstrapping Pools to cultivate liquid and accessible token launches, PrimeDAO set out to revamp the LBP experience for users and project teams alike. Through a grant from Balancer Labs the development of what is known as Prime Launch started. Prime Launch allows anyone to bootstrap a token without needing to write a single line of code. The product provides a crisp and user-friendly interface, Support, and an ecosystem of service providers that will enable the best permissionless launch experience.
With the development of Prime Launch, PrimeDAO became a Balancer v2 launching partner, expanding the collaboration from protocol usage to active contribution on the development scope. Prime Pools is another giant step in a productive collaboration between two parties.
“PrimeDAO and Balancer Labs share a vision for the future in which DAOs pool their energy and resources to collaboratively tackle shared challenges, rather than replicating work and allocating resources inefficiently through competition.” Says Jeremy
How to mint and stake BLxPR 🌱
1. Acquire the amount of BAL and PRIME you want to add to the BLxPR pool. Both tokens are most liquid on Balancer protocol, and users also receive BAL rewards for swapping tokens. Get the tokens here.
2. Head back to the BLxPR Overview page of Prime Pools and press on the purple Mint BLxPR button. Now select the tokens that you want to provide to the pool, enter your desired amount of BAL and PRIME, and unlock both assets. Now press the mint BLxPR button and confirm the transaction to get BLxPR tokens.
3. After acquiring BLxPR tokens, head over to the BLxPR Farm page, press the Farm BLxPR button and enter the amount of BLxPR you want to stake, and press the Farm button.
You can claim your Rewards at any time by heading over to the BLxPR Farm page and signing the transaction.
Congratulations! You’re now part of the first DAO2DAO pool and actively contribute to the collaboration between PrimeDAO and Balancer. This is just the start! As a BLxPR holder, you get access to the BLxPR channel in the Prime Discord and will have voting rights in the BAL x PRIME Snapshot DAO. Want to get hands-on and help the collaboration through development or evangelism? Join the Discord Channel and let’s collaborate!
PrimeDAO’s mission is to facilitate the wide adoption of open finance by coordinating and cultivating projects that promote safety, reliability, liquidity, and open access, while avoiding centralized appropriation of critical financial infrastructure through decentralized governance.
If you or a DAO you participate in wants to collaborate with PrimeDAO or launch a DAO2DAO — hop into our Discord channel and let’s make it happen!