Better Bonds, Better Roadmap, Papa DAO.
Intro: Decentralized Reserve Currency Protocols have the DeFi world by storm. But what is the intrinsic value we now see on all the networks? This article covers Papa DAO, an Avalanche Network decentralized reserve currency protocol. Let’s just call it a DAO 🤝
Why are these DAOs important?
The goal is to build a policy-controlled currency system, in which the behavior of the DAO token is controlled at a high level by the DAO. However, each DAO has a different roadmap.
Short-term, the goal is to develop the system for growth and wealth creation. Oh, now you’re following 👀 The long-term goal varies from DAO to DAO. PAPA’s goal is to create a system that allows for stability and consistency. $PAPA is the token based on PAPA DAO. It will be a medium of exchange for real-life and in the Metaverse.
“Wolf, I still don’t understand what all the buzz is about?”
How to get involved?
To participate in PAPA there are (2) approaches:
- Staking: stake tokens in return for more PAPA tokens.
- Bonding: Provide LP tokens, MIM, USDT, or WAVAX in exchange for discounted PAPA tokens after a fixed short locking (vesting) period.
As the DAO grows, the plan is to add a variety of other tokens from gaming projects and the Metaverse.
The Pros and & Cons of staking and bonding
Stakers: The protocol mints new tokens from the treasury, the majority of which are distributed to the stakers. The gains for the stakers come from auto-compounding their balances. That being said, there is a risk in price exposure. As long as the token balance outpaces the price drop, stakers will make a profit.
Bonders: benefit from price consistency or an increase in price. Capital is committed upfront and promised a fixed return at a set point in time. The return is given in PAPA tokens. There is also a risk of price falling below the bond price.
Let’s recap what we've learned before going on:
- Decentralized Reserve Currency Protocols are creating a free-floating reserve currency.
- Short-term, the goal is to develop the system for growth and wealth creation.
- (2) ways to get involved: staking and bonding.
Great! We now have a better understanding, let’s take a deeper look at PAPA DAO and its mechanics.
Papa DAO Deep Dive 👇
The protocol generates value through staking and bonds.
Staking is integral with PAPA. Staking locks your $PAPA into the protocol and compounds the rewards that are generated by bond sales. Staking $PAPA becomes less risky over time as price action and volatility stabilize. Staking is the primary value accruing passive strategy. Given a long enough timeframe, even if the price falls your PAPA balance will eventually outpace the fall.
When you stake your PAPA you receive an equal amount of sPAPA. Your sPAPA rebases every epoch (8 hours). Unstaking your sPAPA burns the token and you receive your PAPA. However, if we are in the middle of a rebase you will forfeit the rewards for that rebase.
Bonds of other tokens are sold for discounted $PAPA tokens. The $PAPA tokens are then vested over a short period. Investors are actively claiming rewards and staking. This allows rewards to grow over time and also supports the growth of the PAPA DAO. Bonding is actually the second value accrual strategy. When you mint PAPA tokens you actually sell your assets in order to buy a bond. This is why you receive discounted tokens.
Bonding is more active and a short-term strategy, the price discovery mechanism of the bond market is unpredictable. Therefore you have to monitor it more when compared to staking.
Purchasing bonds allows PAPA DAO to own its own liquidity, protocol-owned liquidity, or (POL) for short.
POL protects token holders. This allows PAPA to own its own market and accrue more revenue from LP rewards. Allowing the treasury to grow and adding more certainty for PAPA investors.
What's the (3,3) about?
Simply put (3,3) (2,2) (1,1) are labels that give certain actions regarding game theory.
Game theory is the study of mathematical models showcasing the advantages and disadvantages of specific choices. (3,3) is the idea that everyone is cooperating. While (-3, -3) is the worst outcome.
AMA Roadmap
- (4,4) Bonds
- Farming
- Adding Metaverse and Gaming Liquidity Bonds
- Launchpad for Metaverse Gaming
- PAPA Bank
- PAPA DAO Pro
- PAPA NFTs
- PAPA Bridge
Getting Involved and Contributing
One way to get involved with DAOs is through buying the tokens. That being said, all crypto communities need more hands-on. What do I mean by that?
If you’re looking to get involved with DAOs, but don’t know where to start join a community. Show your face, get familiar with the people in the community and what everyone does. Don’t be afraid to ask questions. Look for areas where you feel like you can help. What is your talent?
- 🧏 Translator
- ✍️ Writer
- 🖥️ Developer
- 🐸 Meme lord
- 👾 Graphic Designer
- 🌐 Community Manager
Contributing to your communities is the easiest way to showcase your talent. Did you recently write an article about the project/community? If so share it! Translate blogs and share them! The point is to just do it! With enough consistency and development, you can raise your rank within the DAO. Your crypto success is a direct reflection of your contribution to the space.
Conclusion
- PAPA DAO is a Decentralized Reserve Currency Protocol.
- Staking is the primary value accruing passive strategy.
- Bonding is the secondary value accruing passive strategy.
- You don’t need $$$ to be involved with a DAO, show the community what kind of talent you have!
I hope this helps break down and understand not only PAPA DAO but other DAOs as well!
So what are you waiting for, go make that money you degen!
Experienced and Written By young crypto wolf🌕
🌗For any further questions you can find me on Discord:
Discussion Channel: https://discord.com/invite/vHYMU8ruyk 🌓
