The Tam-Zepti proposal for making an initial buy into our own bonding curve ignited further explorations into possible economic and inter-DAO opportunities for the TEC. Coincidentally, after much anticipation, the AGAVE platform launched shortly thereafter. AGAVE, an offshoot from 1hive, is a protocol built on xDAI for Borrowing and Lending various types of token assets. I saw this as a perfect opportunity to seize the momentum and build on the soft-conensus we found around exploring all the possibilities laid out before us, given the success of the Hatch.
We arranged a meeting on September 6, 2021 with representatives of the TEC and AGAVE and after fruitful discussion I can come forward with three opportunities for us to collaborate with AGAVE and provide economic benefit for the TEC. I will draft three different posts to allow us to accurately discuss and iterate on each proposal.
In the aforementioned buy-in forum post we mentioned a unique opportunity to buy into our own Augmented Bonding Curve at the moment it launches, thus acquiring TEC at the best possible rate (perhaps until the Token Thaw begins). What we do with this intial buy-in is where the discussion gets interesting. I will add however we have only reached soft-consensus on doing a buy in at all, but perhaps with stronger proposals we can strengthen the argument in favour.
The basis of this proposal is to use all or a portion of the TEC we bought in to exchange for AGAVE tokens. The AGAVE token, similar to TEC, will be the base token used in their Gardens for community-driven Conviction Voting. Another proposal would be to use all or part of this acquired AGAVE to be locked away in a liquidity pool, creating a permanent economic bridge between our two tokens.
What to consider:
- Do we buy into the Bonding Curve? How much? With what funds?
- How much AGAVE do we want to acquire?
- The exchange rate for TEC/AGAVE
- If we use it for Governance, who controls the tokens? (A sub-DAO was suggested)
- If we create a liquidity pool, who gets the swap fees?
This is a great way to create strong ties with other DAOs. In the case of holding Governance tokens it can keep DAOs value-aligned in that each can have a say in the other’s governance process. The LP token route has lots of potential as well and deserves further exploration. I’d like to open up the discussion here and I would love to hear from a token engineering perspective any further ideas or perspectives around this proposal!