Read the proposal: BalancerDAO's collaboration with BanklessDAO (Sponsorship, Written content and Podcast) - Google Docs

Authors: @eagle, @grendel, @siddhearta, @Andrea BalancerDAO

Date: 13 January 2022

SUMMARY

BalancerDAO offers to sponsor one BanklessDAO newsletter for the entire 2022 in exchange for a strong economic incentive in BAL for the BANK/WETH pool on Polygon.

Moreover, Balancer is interested in awarding a grant to BanklessDAO for obtaining media coverage concerning its DAO and the aforementioned BANK/WETH liquidity pool on Polygon.

BACKGROUND

Balancer is a well-known DeFi platform, which recently decided to launch its DAO.

Balancer and BanklessDAO collaborated together in the last season. Balancer has awarded to BanklessDAO an educational grant and has launched a liquidity BANK/WETH pool on Ethereum. Recently, Balancer has launched a BANK/WETH pool on Polygon.

BanklessDAO published two articles on medium:

• Balancer Enables DAO Growth Through Customized Liquidity

• How to provide liquidity to the Bankless 80/20 Pool

BanklessDAO has additionally prepared graphics related to the BANK/WETH Ethereum liquidity pool. Nittra’s talent has been pretty much appreciated!

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Balancer highly respects and considers BanklessDAO’s mission in the blockchain ecosystem as a media node and as a point of reference for DAOs and blockchain culture and would like to sponsor a BanklessDAO newsletter for the entire 2022.

In addition, Balancer wants to award an additional grant to get media coverage concerning the Polygon liquidity pool and the launch of the BalancerDAO.

MISSION & VALUES ALIGNMENT

The mission of BanklessDAO is to help the world go Bankless by creating user-friendly onramps for people to discover decentralized financial technologies. Due to its characteristics, Balancer is the perfect example of a DeFi project which could help the world go Bankless, in allowing to create liquidity and to earn from assets which are deposited in the Balancer’s pool. Moreover, in launching its DAO, Balancer - in line with the more advanced web 3.0 culture - demonstrates the willingness of decentralizing its operations.

Moreover, this type of collaboration demonstrates that BanklessDAO has reached a mature status, where projects show up and demand for client services. In the future, sponsorships and paid services will make our DAO financially sustainable.

SPECIFICATION / BUDGET

1. Polygon BANK/WETH liquidity pool incentives and BanklessDAO Newsletter sponsorship

BanklessDAO is requested to deposit in the BANK/WETH 80/20 Polygon liquidity pool:

• 4M BANKS
• 14 WETH

Balancer will grant for the entire 2022 a weekly reward of 300 BAL (apx. 5k USD) for depositors. It means that if, for instance, BanklessDAO holds 50% of the liquidity in the pool, a revenue of 10k USD in BAL will be granted to the DAO treasury on a monthly basis (as 1200 BAL per month have a value of apx. 20k USD).

As consideration of the pool incentives, BanklessDAO will host BalancerDAO as the main sponsor on the “Weekly Roll-up” newsletter or the “State of the DAOs” newsletter for the entire 2022. The precise collocation of Balancer’s sponsorship will be determined on a seasonal basis.

2. BalancerDAO’s grant for media coverage

BalancerDAO would like to award to BanklessDAO a grant of 7k USD in BAL for:

• A medium post where the collaboration between Market and BanklessDAO will be announced (500 USD)
• 2 medium articles, which will be tweeted 2 times by the BanklessDAO account and that will be mentioned in the weekly roll-up. (2,500 USD)
  • Article 1: The Multi-chain Strategy of Balancer
  • Article 2: The Creation of the Balancer DAO (with a short version in the State of the DAOs DAO Spotlight section)
• A Crypto-Sapiens Podcast where the founders will present the Balancer DAO (2,000 USDC)
• A strong marketing campaign concerning the liquidity pools (4 tweets with graphics prepared by designers) (1,000 USD)
• 1,000 USD for the project champions

FINANCIAL IMPLICATIONS

In order to get the pool incentives on a yearly basis, BanklessDAO is requested to deposit in the BANK/WETH 80/20 Polygon liquidity pool:

• 4M BANKS
• 14 WETH

Funding should be provided by the BanklessDAO treasury

As to the media coverage, Balancer will cover the entire costs.

BRAND USAGE

Every published item will present BalancerDAO and BanklessDAO logos together.

SUCCESS METRICS OR KPIS

Success will be evaluated from the number of views of the articles, the likes of the tweets and from the number of the participants at the podcast and at the workshop.

Moreover, Balancer will also evaluate whether the media coverage has brought an increment in the usage of the BANK/WETH liquidity pools.

NEXT STEPS

The proposal requires a snapshot vote.

In case of approval, the champion of the proposal will organize the teams to cover the planned work.

Writers’ Guild Client Services will organize the written content and the publication on Medium. BalancerDAO’s founders will be put in contact with representatives of Crypto-Sapiens in order to organize the podcast.

SQUAD BACKGROUND

@Eagle is the Legal Guild Coordinator and member of the Grants Committee. He is a Law Professor and Lawyer interested in blockchain technology, DAO governance and DeFi

@Grendel is the Translator Guild Coordinator and member of the Grants Committee. He is a IT entrepreneur who designs and implements fungible and non-fungible tokenization blockchain projects.

@andrea Balancer is a Balancer core contributor and marketing strategist

@siddhearta is the Bankless DAO Newsletter Coordinator.

A very interesting partnership with the BalancerDAO great work @EAGLE @Grendel @siddhearta and the balancer team @andrea … Thank you

I think this is an awesome cooperation for both DAOs and a no-brainer for sure. Great work!

would love to see this come to fruition.

Perfect, no-brainer for me yes yes yes!

Great proposal, solid partnership. Great job guys!

This is precisely the type of partnership the bDAO needs leveraging its media DAO strength.
Brilliant.

I overall support this direction, but can you unpack the following?

As I understand, LPs will earn a share of 300 BAL on a weekly basis and some of this will go directly to the DAO treasury? Or will there be a separate contribution to the bDAO treasury on a monthly basis?

Clarity would be helpful, thanks.

Sure man:

The weekly 300 BALs are an incentive for EVERY liquidity provider (every BANK tokenholder can deposit funds).

The DAO treasury will probably be the biggest liquidity provider and therefore get a significant share of the 300 weekly BALs.

I made the example of 50% of the liquidity granted by the BanklessDAO treasury. At the beginning the share/percentage of the Treasury will probably be more/higher. When lots of liquidity will be deposited in the pool, the share/percentage of the Treasury could become smaller.

I really hope that my explanaition is clear. If not, please tell me!

That makes sense, thanks.

I think the connection between 5k per week and 20k per month (50% of which would be going to DAO treasury ~ 10k) was not apparent.

Solid proposal. Onwards and upwards.

Thank you for the feedback. I have added an additional short explanation.

Balancer is a well-respected, longstanding DeFi protocol that adds value to the web3 ecosystem. It was also one of the first ways to add value to BANK holders. Excited for this partnership and for the collaboration with Crypto Sapiens too.

This is a very exciting proposal and I thank you for leading this initiative on behalf of the BanklessDAO.

I am wondering if you could please provide your estimations for the ROI to the BanklessDAO Treasury over the next year. And/or over a longer term if you think that makes more sense.

Surely there are benefits to having this Balancer LP on Polygon and this partnership with Balancer that are difficult to measure, but just in terms of the 4M BANK and 14 weth going out, what should we expect coming back in 2022?

Thanks again for bringing this exciting opportunity to our community!

Solid partnership - looking forward to adding LP in the future as well! Stellar job as always

Hey Chuck, thank you for the comment and your question.

From a pure economic point of you it is difficult to calculate how much BAL the treasury will get from the deposit, as it will depend from how BANK tokenholders will behave (i.e. how much BANK/WETH they are going to deposit in the pool in addition to the 4MBANK and 14 WETH). Nevertheless I think that the final amount will be 50-80k USD for 2022.

Please note that the 4M and 14 WETH are not “lost”. They will only be deposited in the pool. It means that after one year, theoretically the treasury could withdraw from the pool and have back its initial deposit. Of course some impermanent lost could arrive, but it is arguable that it will not be substantial given the 80/20 balance and the current price of BANK and WETH.

In addition, creating liquidity is of paramaunt importance for our DAO. Perhaps putting part of the treasury in the liquidity pool would have been a good idea for the growth of the DAO also without such a strong incentive.

Finally, making a partnership with Balancer - an important DeFi project in the space - could bring significant indirect advantages. After Balancer, other projects could step up and follow the same path in terms of collaboration. This would mean a lot for us, as the goal is to become financially indipendent.

Thank you for clarifying this and adding in your estimation for 2022 ROI, @Eagle. So it sounds like 10-20% ROI (at recent BANK and WETH prices) with the ability to replenish our treasury with the pooled BANK and WETH after 1 year if needed. Stoked about this partnership!

Great proposal! Definitely needs to be passed!

A strong proposal deserving our support. Great work Eagle, siddhearta, and Grendel.

Pretty good strong proposal Eagle and team! A no brainer for em

This summary of expected revenue is very helpful, as the mechanics are quite involved.