The Future of Gold Standard DAO
& how we get there:
Gold Standard DAO: Sustainability Journal Vol.2
Greetings GS Army! Before we begin on what’s in front of us, it is important to look back and reflect on how far we’ve come. Let’s have a look at the milestones achieved so far.
- Syscoin Partnership.
- Lode Partnership.
- The Swiss Association was set up through PwC Switzerland.
- AMA with The Olympians.
- Interviewed by David Morgan & Featured in The Morgan Report.
- Successful IDO. Raised $825,000.
- As seen on Yahoo Finance, Bitcoin Insider, Bitcoin Daily and more!
A new structure for Gold Standard DAO
Over the last couple of months the Gold Standard DAO team has been paying very close attention to the Olympus (3,3) structure and behaviour, as this is what Gold Standard DAO was originally forked from.
We have had the opportunity to gain some very valuable data over this time and have learnt that the (3,3) protocol is not ideal. The staking and bonding mechanism is in effect a system that redistributes value to earlier stakers. It requires a constant influx of new money pumping the price of OHM to keep going, and once that isn’t happening, decreasing APY will only buy more time to recruit for the scheme, ending in an inevitable return to RFV (Risk Free Value).
Basically new investors are required to feed earlier investors through bonding.
This may be used as a distribution event, however it is not a protocol that should be relied on.
For these reasons we have designed Gold Standard DAO V2.
GS DAO’s (Gold Standard DAO’s) mission is to offer decentralised finance backed by tokenized gold.
The Gold Standard DAO approach
As mentioned in one of our previous Medium articles we are moving on and away from the Olympus protocol (3, 3). Gold Standard DAO is planning for the long term and will be built to last in the DeFi space for years to come. The approach is to use the available protocols and tools available within the whole DeFi landscape to offer the best rewards possible for a stablecoin backed by gold. Essentially, putting your money to work for you!
How we will do this is through a concept called: DeFi legos.
Money Legos for Gold
Decentralised finance (DeFi) is becoming highly complex, with the constant creation of new protocols and DApps with varying functionalities. This means that new financial opportunities are continuously developing in the DeFi space, but it can also mean having to go through many layers and protocols to achieve a result. This in turn can mean increased fees — one for each transaction — and increased time requirements for each action on each protocol. The way to bypass these complications, then, is to integrate the elements required into one protocol, thereby building a new protocol that can carry out all the actions needed in one place.
Decentralised Finance (DeFi) Legos are building blocks, each with its own functionality, that can be integrated together to build one protocol with multiple functions. These Lego blocks are built for borrowing, staking, or lending assets, among other things, and can be put together to create a single multi-functional financial application, hence the term “money Legos.”
What Is Composability in DeFi?
By definition, composability is a system design principle that deals with the inter-relationships of components. A highly composable system provides recombinant components that can be selected and assembled in various combinations to satisfy specific user requirements.
In conclusion we are moving towards a much more sustainable method of yield mining for gold assets. The methodology mentioned above would be the direction we are moving towards and away from (3, 3).
We invite you to join us in our discord for further discussions on this, we look forward to hearing what you have to say.