This Week (and a bit) in SquidDAO — December 21, 2021

Welcome to our weekly (and a few days extra) recap of all things SquidDAO for the period ending December 21, 2021. While things slowly wind down for the holidays, SquidDAO continues to push forward.

veSQUID Locking and Lockers Rewarded

As of this writing, approximately 26+ SQUID have been fully locked into veSQUID! On what will forever be known as Boooolish Sunday, machibigbrother, our largest investor, locked his full set of SQUID (11+) for the full four years. Others followed and we showed excellent momentum ahead of the locking deadline. Lockers were duly rewarded with the retroactive bonding fees, receiving almost US$1 million together with NFT holders.

Admittedly, there were some issues regarding communication of the exact locking deadline and we are working hard to see if all Diamond Tentacles can potentially be rewarded.

Rewards have been paid out in wsSQUID and will continue to be paid out in wsSQUID in connection with future bonding fees. We are working on a wsSQUID liquidity pool on SpiritSwap on FTM that will also be subject to additional rewards on SpiritSwap! So hold on to these for some potentially juicy APR.

SquidOHMas Winds Down

Thank you once again to our friends at OlympusDAO as we wind down a successful 12 Days of SquidOHMas highlighted by 12 delectable NFTs and wider engagement with the Olympus community. One of our community members and Shillz, edo, did some calculations (thank you, edo!). We raised a total of 1346.13 OHM, or an average of 112.17 OHM per NFT. At current prices this equates to $48k per NFT (or 12.31 ETH) and $576k Total (147.75 ETH). SquidDAO will continue to explore partnership opportunities.

Onboarding Effort for wsSQUID as Collateral within Abracadabra and Rari

One of our Kraken, homme, has put in a ton of work over the last few days as he pushes to add to the utility of SQUID. Thus, he’s begun two processes with Abracadabra and Rari Protocol, both of which would ultimately allow wsSQUID to be used as collateral for borrowing stables. Of course, we need to balance utility with the negative effects of any liquidation cascades, but this is the sort of initiative that will continue to help differentiate us from other protocols.

As many of you know, the likelihood and speed at which these ideas can come to fruition are based on community support. We strongly encourage larvae to head to https://forum.abracadabra.money/t/proposal-onboard-wssquid-wrapped-squid-dao-staked-squid-as-collateral/1257/ and provide thoughtful support for this proposal. Please also engage with detractors constructively!

Bonding fees have officially been raised to 25% per snapshot vote

As previously publicized, we raised our bonding fee from 10% to 25% in accordance with a passed snapshot vote. As a result, when 1 SQUID is purchased through bonds, an additional 0.25 SQUID will be generated. Of this 0.25 SQUID, the dev team’s share will remain 0.05 SQUID, and the remaining 0.2 SQUID will be split 0.1 SQUID and 0.1 SQUID between veSQUID holders and NFT holders. Thus, this increase in fees will result in a 4x from bonding fees for veSQUID holders and NFT holders!

Proactive Bond Policy Update

Our newly enacted Policy team were hard at work with some publicised changes to bonding variables. However, the larger piece of news was announced in the Discord at https://discord.com/channels/899531896571187210/899600248836591637/922614613835669536. The summary is that the protocol intends to turn off the bond supply as price trades closer to RFV so as to ensure bonds are not being sold at below RFV (given the bonding discount). Variables were also set out for when the bonds would be turned back on, should they ever be turned off. Kudos to the team for proactively thinking about market conditions and sending out a clear message for the Shoal.

That’s a wrap for this week! We wish you and yours all the best for the upcoming holidays! Keep inking!

This Week (and a bit) in SquidDAO — December 21, 2021 was originally published in Squid DAO on Medium, where people are continuing the conversation by highlighting and responding to this story.

Welcome to our weekly recap of all things SquidDAO for the week ending December 12, 2021. We had another action-packed week so let’s jump right in.

Team Changes

Firstly, big congratulations to our key community members, zoption and Zencephalopod for being promoted to Helmsmen at the start of the week. Each of these two enterprising souls have been massive contributors to our success with zoption being one of the brains behind SquidOHMas and Zencephalopod providing a great deal of input on the engineering side of things, not to mention his army of Discord bots!

SquidDAO Policy Team

Kraken successfully established a SquidDAO policy team, 40 votes in favor, 0 votes against. From the Snapshot: The ‘Policy Team’ powers will cover all policy decisions including: changes to bonding, addition of new assets for bond, changes in APY, and generally all decisions related to SquidDAO’s policy.

The Snapshot for election of team members just closed, so we can expect an announcement on this shortly. Currently, it looks like the initial Policy Team will comprise: Squid3, 0xvisual, BlindSquirrel, Letters and Arcrenciel, provided each of them agree to participate. We’ll look out for further news on this one.

Evolution of SQUID: veSQUID Launched!

The biggest news from a token perspective was the announcement of veSQUID. While there were some initial hiccups with the implementation, it is now possible to lock your sSQUID for a period from 1 to 4 years. in huge news, the protocol’s largest investor and backer, machibigbrother, max locked his 11 SQUID for 4 years (!!). This doesn’t mean max locking makes sense for you — all individuals’ circumstances are different. We put together an explanatory article on veSQUID. Please read larvae, so you can make an informed squidvestment!

12 Days of SquidOHMas

While SquidDAO has been fortunate to make investments with a number of excellent protocols, we announced probably our largest partnership in our brief history by launching 12 Days of SquidOHMas — a partnership with OlympusDAO to launch a limited edition NFT collaboration spanning 12 NFTs from Squid 83 to Squid 94. Unlike our other auctions to date, we are only accepting bids in OHM. OHM raised from these auctions has already been staked so that we can benefit from OHMonomics! There are additional plans afoot for the OHM that are currently being discussed and voted on by Kraken such as a potential creation of an LP pool involving OHM — details of which are still being ironed out. Regardless, we’re extremely excited about this collaboration as it could form the blueprint for future collaborations with other key DeFi protocols. Also check out our Medium article for more details on this partnership.

yAxis Partnership

On December 9, we also announced our partnership with yAxis, through which we completed an OTC trade for 85,000 $yaxis which are now max-locked and will give SquidDAO a significant percentage of the yAxis gauge. It is our intent that this will enable higher yield farming strategies as we look to grow SquidDAO’s treasury.

ICYMI:

Some interesting articles to read and podcasts that you may want to listen to this week include:

• Bludex.eth updated his OHM fork valuations on Twitter and then updated with a very detailed Medium.
• Bigsquid chatted with yAxis in a high alfa chat.
• Chickenboo wrote an article on the upside of Squid NFTs.

This Week in SquidDAO — December 12, 2021 was originally published in Squid DAO on Medium, where people are continuing the conversation by highlighting and responding to this story.

Not financial advice. Please do your own research. Locking SQUID is a step that cannot be undone for the period of the lock-up.

SquidDAO has been innovating since Day 1 with our stealth fair launch combining an NFT revenue stream with OHMonomics. We take yet another step on the path of innovation with the launch of veSQUID. What is this new species of SQUID? What does it mean for SquidDAO? How can you evaluate whether it makes sense for your portfolio?

Animal Planet’s Guide to Squid

Before we can properly evaluate veSQUID and its potential ramifications, let’s first understand what veSQUID is. The easiest way to break this down is to understand the various tokens that get you from SQUID to veSQUID.

SQUID: The fundamental SquidDAO token that can be purchased on the open market on Ethereum Mainnet. SQUID represents an ownership interest in SquidDAO. With treasury backing like OHM, except 1 SQUID is backed by a minimum of 1 ETH, though currently backed by 100+ ETH as you can see on our Dune dashboard.

sSQUID: Staked SQUID, which allows SQUID that you bought on the open market to benefit from the automatic rebasing that takes place every 2,096 blocks (approximately every 8 hrs). For as long as there is more ETH in the treasury than there are SQUID tokens, the protocol will continue to print SQUID to distribute to all sSQUID holders in the form of more sSQUID. This is why numba go up on the Stake page.

wsSQUID: Wrapped Staked Squid, while sSQUID is great and all, it presents major challenges from a technical standpoint if we actually want to use sSQUID in other DeFI applications, for example as collateral for a loan. wsSQUID allows users to benefit from staking their SQUID while still interacting with DeFi apps and protocols. Now, you could theoretically borrow against your SQUID while retaining all the benefits of being in sSQUID. wsSQUID is also the species of SQUID that’s available for sale on AVAX (and other sidechains / L2s in the future).

Calculating wsSQUID: wsSQUID does not convert directly 1:1 into sSQUID; instead it is based on snapshots in time and is thus converted to and from sSQUID using the current index (you can find this on the SquidDAO dashboard.

Example: If the current index is 2, if you convert 1 sSQUID to wsSQUID you divide sSQUID (1) / current index (2) = wsSQUID (0.5). To convert wsSQUID to sSQUID you merely do the opposite by multiplying wsSQUID (0.5) * current index (2) = sSQUID (1).

veSQUID: Vote-Escrowed wrapped staked Squid, the new squid on the block! veSQUID represents the next step in SQUID evolution and follows similar mechanics to veCRV (the Vote-Escrowed version of CRV token from Curve Finance). In exchange for locking your sSQUID for a set period, you will receive a set ratio of veSQUID in return. veSQUID gives you the right to vote on SquidDAO initiatives — currently only NFT holders can do so — and the right to receive a share of bonding fees from the protocol. Most importantly, veSQUID is non-transferable and cannot currently be bought or sold.

Voting? Bonding Fees? Plz explain, ser.

Voting: Like any DAO, we want our community to have a say in the governance of the DAO. Currently, this is enabled through snapshot votes where each NFT = 1 vote. However, that doesn’t take into consideration a huge number of our shoal — the SQUID holders. By implementing veSQUID, you will receive a vote for the amount of veSQUID you own pro rata to the entire voting pool. For purposes of voting only, NFTs count as 1 veSQUID, thus the total voting pool is all the NFTs in existence plus all veSQUID.

Example: If there are 90 NFTs in existence and enough SQUID locked to equal 40 veSQUID, there would be votes equivalent to 130 veSQUID (90 veSQUID of voting power deriving from NFTs + 40 veSQUID) in existence. DAO initiatives are the key way that we govern ourselves and our growing treasury of over 15,000 ETH.

Bonding Fees: Bonding fees are paid when anyone purchases a bond at SquidDAO. Right now, for every 1 SQUID purchased through bonds, this will generate 0.025 SQUID to be paid out pro rata to veSQUID holders and 0.025 SQUID to be paid out pro rata to NFT holders.

Example: Assume SQUID costs 200 ETH, and you purchase 200 WETH of SQUID Bonds. This means you’re entitled to 1 SQUID that will be available to be claimed incrementally over the next five days. Since you purchased 1 SQUID through bonds, the protocol will create an extra 0.1 SQUID, and that 0.1 SQUID is split 50–50 as bonding fees (split yet again 50–50 between all veSQUID holders in one group and all NFT holders in the other group — so each group receives 0.05 SQUID to be split pro rata among themselves) and development fees (for community contributors including the dev team).

Note: According to this passed snapshot, the amount of bonding fees is going up 4x to 0.25 SQUID per 1 SQUID purchased through bonds, but the timeline for the release of the new bonding contract is TBD. After this goes into effect, veSQUID holders will receive pro rata 0.10 SQUID per 1 SQUID purchased through bonds and NFT holders will receive pro rata 0.10 SQUID per 1 SQUID purchased through bonds.

All bonding fees are paid out in wsSQUID and will be paid on a pre-determined schedule. Since it is paid out in wsSQUID, these amounts will be unlocked.

What about all the bonding that’s taken place up to now? What happened to that SQUID?

We didn’t forget about that! SquidDAO has been tracking all bonding fees from the outset. If you lock your sSQUID before 5:00 AM UTC on December 20, 2021, you will be eligible to receive retroactive bonding fees. These fees represent all bonding fees up to 5:00 AM UTC, December 20, 2021, calculated using the current construct of a 10% bonding fee, of which 25% goes to veSQUID holders (pro rata) and the other 25% goes to NFT holders (pro rata).

Why did SquidDAO release veSQUID?

You’re participating in DeFI and the future of France, why would you not expect innovation! For SquidDAO, releasing veSQUID aligns the interests of long term holders of SQUID (locked SQUID cannot be dumped) with that of the overall DAO. We want to reward people that have a long-term vision for the DAO and are willing to work in support of it. But nothing in life is free, in exchange, veSQUID holders receive voting and bonding fees to compensate for taking on the risk of a locked investment in the volatile world of crypto.

Got it, so how do I get some?

You can lock your sSQUID here. The amount of veSQUID you receive is proportionate to the period of your lock-up. Currently, that means if you lock up 1 sSQUID for 1 year, you receive 25% equivalent in veSQUID (after taking into account the index), and this goes up proportionately up to a maximum lock-up period of 4 years, where you receive 100% equivalent in veSQUID (after taking into account the index).

Example: Assuming the current index is 2:

If you lock 1 sSQUID for 1 year, you receive 0.125 veSQUID

(1 sSQUID / 2 = 0.5 wsSQUID * 25% (1 year lock) = 0.125 veSQUID)

If you lock the same 1 sSQUID for 4 years instead, you would receive 0.5 veSQUID

(1 sSQUID / 2 = 0.5 wsSQUID * 100% (4 year lock) = 0.5 veSQUID)

All veSQUID is subject to linear decay.

veSQUID cavities? Wut?

veSQUID will decay over time. This means your ability to receive bonding fees and voting power will reduce linearly. And unlike tooth decay, there’s nothing you can do about it. What this means is that your 0.25 veSQUID or 1 veSQUID in the examples above will drop to 0 over the period of the lock-up. If you want to retain the maximum economic and governance value of veSQUID, you need to relock during your lock period and the decision to relock can be taken at any time (remember: gas fees!).

Example: You have 0.125 veSQUID from your 1 sSQUID that you locked for 1 year (assuming index of 2). 6 months into the lock-up, you have 0.0625 veSQUID (50% has decayed away since half your lock-up period has passed). You can either relock your 1 sSQUID for a full year, and get back up to 0.125 veSQUID (assuming index still at 2), or you let this veSQUID number continue to decay to 0 at the end of the lock-up period.

How do I get my sSQUID back?

Only at the end of the lock-up period, you will be able to unlock your sSQUID (this would be whatever amount you put in at the beginning plus all rebases since the lockup).

Does veSQUID make sense for me?

That is really up to you to decide, but some questions you ought to consider before locking are:

1. Do you believe in the SquidDAO mission such that the length of the lock-up period makes sense? Remember, you cannot sell during this period.
2. Given decay, are you open to the idea of re-locking to retain maximum governance and protocol fee rights?
3. What do you think the bonding fees will be going forward and how do you think your share in these fees will change?
4. Do you believe the fee ratios (soon to be 25% bonding fees, of which 40% distributed to veSQUID holders, the other 40% goes to NFT holders) will stay the same or change? If so, do you want to be able to vote on that direction?
5. How many others are going to ape in? veSQUID holds governance and fee protocol value and the fewer people that lock up their SQUID, the more such value is concentrated in the hands of veSQUID holders.

Calamari to Colossal Squid — the journey from SQUID to veSQUID was originally published in Squid DAO on Medium, where people are continuing the conversation by highlighting and responding to this story.

Not financial advice. As always, do your own research.

Edits: December 21, 2021 — to reflect new bonding policy and veSQUID implementation

On October 26, 2021, the very first SquidDAO NFT was sold for 20 ETH. SquidDAO released in stealth mode, so buyers were taking a chance on a fledgling DAO offering (the most expensive sold for 497 ETH!). Forty-three days later, Squid 80 sold for 13.3 ETH, all of which went straight to the SquidDAO treasury, which now has over 15,600 ETH. What’s the secret to the success of these NFTs? Why are they still being sold for large amounts of ETH? And why might a discerning anon consider purchasing one?

Why did SquidDAO release Squid NFTs?

Simply put, SquidDAO’s mission is to stack ETH — using that ETH for the betterment of the ETH ecosystem by investing in protocols at various stages and to provide returns to our hibernators (SQUID stakers). Squid NFTs provide a massive revenue stream to achieve this goal. By all measures, the NFTs have been a runaway success! At first, each NFT came with a full $SQUID token, then 0.1 SQUID, and finally 0 SQUID, as the DAO treasury grew. Now, each NFT provides governance rights and, soon, income generation. In total, these NFT sales have raised 7,874 ETH for the SquidDAO treasury.

But ser, no $SQUID given— why buy?

In simple terms, it’s transferable cash and governance rights.

Bonding Fees

With the planned implementation of veSQUID (a future mechanism to lock $SQUID for periods of time in exchange for voting rights and bonding fees — similar to Curve’s veCRV mechanics) each Squid NFT will receive bonding fees equivalent to 1 veSQUID multiplied by the current index. Bonding fees are paid when anyone purchases a bond at SquidDAO. Right now, for every SQUID purchased through bonds, this will generate 0.05 SQUID to be paid out pro-rata to veSQUID holders and 0.025 SQUID to be paid pro-rata to NFT holders.

[Editor’s Note: Edited to clarify that bonding fees paid to veSQUID holders and NFT holders will be split 50–50 and each pool will then be disbursed pro-rata to their respective holders]

Example:

Assume SQUID costs 200 ETH, and you purchase 200 WETH of SQUID Bonds. This means you’re entitled to 1 SQUID that will be available to be claimed proportionally over the next five days. Since you purchased 1 SQUID through bonds, the protocol will create an extra 0.1 SQUID, that 0.1 SQUID is split 50–50 as bonding fees (paid to all NFT holders — including you — and to veSQUID holders — split again, 50–50) and protocol fees (for the dev team).

The best part about this — it’s retroactive — i.e. every bond to date has accumulated bonding fees, and these will all be paid out when veSQUID is implemented to NFT holders and other veSQUID holders.

[Editor’s Note: According to this passed snapshot, the amount of bonding fees has been increased 4x to 0.25 SQUID per 1 SQUID purchased through bonds, but the timeline for the release of the new bonding contract is after the retroactive bonding fee calculations were made. Going forward, veSQUID holders will receive pro rata 0.10 SQUID per 1 SQUID purchased through bonds and NFT holders will receive pro rata 0.10 SQUID per 1 SQUID purchased through bonds.]

On-Chain Voting Rights

SquidDAO will implement on-chain voting for all SQUID holders to have a say in the governance of SquidDAO. You will gain voting rights if you lock your SQUID for varying periods as veSQUID (similar to the Curve model). To reward early adopters and to recognize the importance of NFTs to our ecosystem, each Squid NFT will provide voting power equivalent to 1 veSQUID * current Index. By owning a Squid NFT, you can turbocharge your say in the governance process given that Squid NFTs are currently being auctioned off for less than the cost of 1 SQUID. Even at this early stage, NFT holders have already made several votes to determine the future of SquidDAO.

Fully Transferable

The rights to bonding fees and voting are attached to the NFT, not a particular wallet. So if you purchase these NFTs on the secondary market, you will receive these rights once they’re fully implemented.

Squid NFTs are true alpha generators; they will pay out a dividend based on protocol bonding and provide you with amplified governance (relative to purchasing SQUID outright).

But none of these are available right this instant, so what do I get right now?

Patience, young larvae. While you’ll have to wait before you can start collecting SQUID through bonding, you do get access to these benefits for each NFT you own:

Access to #👑Kraken / Wider Kraken network

The #👑kraken channel within the SquidDAO Discord is where the magic happens. Owning a Squid NFT gives you exclusive access to this channel. Here you can network and be part of a community that cares deeply about SquidDAO, ETH and DeFi. It doesn’t hurt that a number of Kraken are also whales with varied interests across crypto. If you’re interested, as many Kraken are, you can also go on to join #daobuilders and really contribute to SquidDAO.

Your access isn’t limited to #👑kraken. Communities are what makes or breaks the success of a protocol and our Kraken are the foundation on which SquidDAO’s success is based. As further services that plug us into other protocols are rolled out, you will have exclusive access to private Discord channels within those communities as well. There are immense opportunities for being part of this select group of investors if SquidDAO executes on its growth plan.

Voting on DAO initiatives

Each NFT currently gives you one vote for DAO initiatives through Snapshot (to be replaced with on-chain voting in the future). These range from new investments and partnerships to recognizing our contributors through Coordinape. At this stage, with 15,000 ETH in the treasury and available for deployment, each NFT possesses a great deal of power to direct where this capital should be allocated.

Amazing Artwork with Future Collector Value

Anyone that’s seen the Squid NFTs can see how talented our community of artists are, reflecting each of their distinctive styles and themes. They also make for awesome profile pics! We will help provide a springboard for other talented artists going forward and to use NFTs to generate partnership opportunities with other protocols.

A Potential Discount

The current Squid NFT auctions are being auctioned for far less value than that of an actual SQUID token. This represents the market discount given future initiatives are not completed in full. So you’re effectively purchasing 1 veSQUID worth of rights from bonding fees and voting at a fraction of the cost. An investor needs to determine what the impact will be on the value of these NFTs once these initiatives are fully implemented.

I’m in! How can I get my hands on one of these?

Welcome to the Squidadel! We’re excited you want to be a part of this! The best way is to participate in the Auctions that take place every day on the SquidDAO page.

https://squid.xyz/#/auction

Good luck paralarva, and look forward to seeing you in #👑kraken!

– ChickenBoo 🐔

A current Kraken and cartoon chicken with a taste for ETH, DeFI and SQUID

More than a JPEG — Squid NFTs was originally published in Squid DAO on Medium, where people are continuing the conversation by highlighting and responding to this story.

Olympus themed NFTs are coming to the Squidadel to honor the Ohmies.

TLDR Ser:

1. SquidDAO is auctioning 12 Olympus God-themed Squid NFTs.
2. Bidding currency will be only $OHM
3. One NFT auction per 24 hours — so only 12 chances to get a rare OHM Squid NFT
4. Each NFT comes with governance voting power and protocol fee share.

Ready to ape ser — more details:

12 Days of Squid x OHMas starts December 8th

NFT auctions will begin December 8th 5 PM EST — Squid auction 83. Each auction lasts 24 hrs; however, time is added when a bid occurs in the final 5 minutes.

Only bids in $OHM will be accepted for these special Olympus DAO themed NFTs.

Why bids in $OHM?

SquidDAO is dedicated to building a long term partnership with OlympusDAO. As a result, SquidDAO has committed to holding and staking OHM collected via auctions.

While it is true the Krakens of SquidDAO horde stacks of ETH in the deep waters of the shoal — over 10,000 ETH in our first 30 days — we have decided to diversify into OHM. By offering OHM-only bidding on NFTs, SquidDAO opens itself up to new potential community members.

Krakens and Olympians love ultrasound monies. Therefore, with open tentacles, SquidDAO welcomes the chance to hold up to 10% of its treasury in sOHM. This is in addition to 10,000 ETH already in Kraken’s strong tentacles. Together we are frens and looking for LTR with Olympians.

When OHM bonds ser?

After the OHM auctions are complete, SquidDAO will work with Olympus to release OHM bonds. This will allow Ohmies to get exposure to SquidDAO ETH treasury, without selling OHM.

building a community-owned decentralized financial infrastructure to bring more stability and transparency for the world.

Olympus & SquidDAO love ultrasound money. especially considering up to 33% of the Olympus treasury is full of ETH — a well loved treat of the Kraken.

What is SquidDAO?

A mashup of Nouns DAO auctions, Olympus DAO mechanics, and Curve locked vesting and revenue share.

Our vision is to be the future of finance, embracing fairness, transparency, meritocracy, partnership, and equal access, all with ETH as the unit of account to shift people’s perception of value by pricing everything in ETH, rather than US dollars. ETH is money; let’s start treating it that way.

Main website — https://squid.xyz/

Join our Discord — https://discord.gg/squid-dao

What is OlympusDAO?

Needs no introduction anon or NAGMI — https://www.olympusdao.finance/

Olympus is building a community-owned decentralized financial infrastructure to bring more stability and transparency for the world. Join their discord: https://discord.com/invite/olympusdao

SquidOHMas: SquidDAO and OlympusDAO Partner To Launch OHM-themed Squid NFTs was originally published in Squid DAO on Medium, where people are continuing the conversation by highlighting and responding to this story.

Ever wondered how the Squid DAO treasury works — currently the home of over 15,000 $ETH? Ever wondered where this massive treasure chest of ETH comes from, and what it’s doing on the bottom of the ocean?

Today we’re going to dive into the Deep Blue and cover the various sources of revenue, how and where the tokens flow, and some of the initial plans for putting all that ETH to work. Let’s jump in!

Revenue Sources

The beauty of Squid DAO is that there are a number of different ways the protocol generates revenue.

NFT Auctions

Inspired by the Nouns DAO model, one fresh Squid NFT ($SQDN) is auctioned off to the highest bidder each day. Bids are placed with ETH, and 100% of the ETH from the winning bid goes directly into the Treasury. Holders of Squid NFTs are referred to as Krakens, and being a Kraken bestows added financial and community benefits. The NFT Auctions have been wildly successful, with the first 75 NFTs raising 7,805 ETH for the treasury.

Bond Sales

Bond sales are already covered by the docs in detail. The treasury sells bonds to raise different types of assets. To date the treasury has issued two types of bonds: WETH-SQUID Sushi LP tokens & WETH. Selling WETH-SQUID LP bonds enables the protocol to own its liquidity, which in turn brings in its own trading fees. Selling WETH bonds enables the protocol to accrue more ETH to stack in the treasury and be put to work earning yield.

Protocol-Owned Liquidity — LP Fees

Protocol-Owned Liquidity means that Squid DAO owns its own pool of liquidity on decentralized exchanges. To start, Squid DAO provides liquidity on Sushi Swap. When users swap in and out of $SQUID, Sushi charges a trading fee of 0.25% that goes to the liquidity providers. As Squid DAO owns the overwhelming majority of liquidity for SQUID, nearly all of these trading fees are collected as revenue back to the treasury.

ETH Investment Strategies

One of the key differentiating factors for Squid DAO is the fact that it is deploying its sizable treasury to earn yield, further increasing the value of SQUID. Squid DAO is attempting to stack as much ETH as possible and using this ETH to deploy to DeFi protocols for generating yield. ETH is ultrasound money, and we prioritize holding ETH and its derivatives.

Squid DAO is partnering with some of the best protocols in DeFi to deliver the best possible risk-adjusted returns. Initial investments are being done in allocations of 100–250 ETH per investment. As the investments generate yield and the team automates more of the processes, the allocations will grow.

Are you a DeFi protocol or have a great idea on how Squid DAO can earn even more yield on its ETH treasury? We want to hear from you. Come pitch us your best ETH yield strategies. All our partnership conversations happen in public on our discord.

Snoop DAO Revenue Sharing

Snoop DAO is a fork of Squid DAO that is focused on stacking as much $DOG as possible, as well as other DOG-meme cultural tokens. As an official fork, Snoop shares 10% of all DOG raised via NFT Auctions as well as 5% of bond fees. That is, for every 1 SNOOP minted from bonds, an additional 0.05 SNOOP is generated as a fee and distributed to the Squid DAO treasury. To date, over 885M DOG has been brought in through the Snoop DAO partnership.

Treasury Wallets

Now that we’ve covered where the revenue comes from, let’s take a look at the actual wallets involved. There are two main wallet addresses used to hold Squid DAO funds:

• 0x61d8a57b3919e9F4777C80b6CF1138962855d2Ca (Primary)
• 0x42e61987a5cba002880b3cc5c800952a5804a1c5 (Multisig)
• Zapper Bundle (for convenience)

The Primary wallet contains all the assets raised from selling bonds — namely the big swell of WETH and LP tokens. Access to move treasury funds is gated by a timelock contract. This introduces a 24-hour delay between a proposed transaction and its execution. At a practical level, this commits Squid DAO to increased transparency with its community. Potential dangerous operations are effectively broadcast 24-hours before being executed, which provides time to cancel the operation before it harms the treasury.

ETH from the NFT auctions get deposited into the Multisig wallet, as does the DOG received from the Snoop DAO revenue sharing agreement. Currently, the Multisig wallet is used to manually deploy ETH for investment in yield earning activities. It is a 3 out of 8 multisig, meaning that 3 of the 8 owners need to sign each transaction in order for the transaction to be executed.

About Squid DAO

Squid DAO’s mission is to be the future of finance, embracing fairness, transparency, meritocracy, partnership, equal access, all with ETH as the unit of account. Squid DAO stacks ETH in a non-dilutive manner, while giving the community full control of the systems, fees, and revenues via NFTs (SQDN) and veSQUID governance.

About SQUID 55

Squid 55 likes the taste of wasabi and the smell given off by a calculator in full effect. Don’t be mistaken though, he might be a good writer, but he can also whoop some paper hands.

Inside The Squid DAO Treasury was originally published in Squid DAO on Medium, where people are continuing the conversation by highlighting and responding to this story.

Squid DAO’s mission is to be the future of finance, embracing fairness, transparency, meritocracy, partnership, equal access, all with ETH as the unit of account.

Squid DAO stacks ETH in a non-dilutive manner, while giving the community full control of the systems, fees, and revenues via NFTs (SQDN) and veSQUID governance.

Staking SQUID will ultimately outperform simply holding ETH.

Squid DAO Inception

On October 20, 2021, a group of DeFi founders, devs, and degens came together to initiate the true fair launch inception of Squid DAO. These founders believed merging proven models, from various DeFi and NFT protocols, would enable them to build a truly community-owned ETH-backed investment vehicle.

Most importantly, this creates a flywheel by auctioning governance rights and protocol revenue packaged in beautiful NFT art. The treasury brings in ETH (ultra sound money 🦇🔊) everyday from NFTs, bond sales, and the yield on the ETH is invested, creating a powerful, long term store of value at the intersection of DeFi and NFT.

Squid DAO Inspiration

Squid DAO merged successful aspects from different protocols to build a new model for DAOs — funded by NFTs, powered by DeFi.

• NFT auction funding mechanism & NFT-based governance — Nouns DAO
• Locked token governance — Curve Finance
• Protocol owned liquidity model — OlympusDAO
• Immaculate inception, fair launch, community owned — Yearn Finance
• Ether as reserve currency — Ethereum Community

This is the classic example where 1+1=3.

The combination of these best practices together result in greater value than the sum of the parts.

Treasury Strategies

Squid DAO’s major advantage is its singular focus on getting and stacking ETH safely.

ETH is ultra-sound money and the new benchmark.

By being 100% allocated to ETH, Squid DAO can beat nearly all traditional benchmarks while also enabling anyone to participate in the network in a permissionless and censorship-resistant manner.

Fair and equitable finance — this is the future of finance.

Governance Rules

Users that participate in governance through Kraken NFTs or veSQUID tokens will receive 50% of revenues generated from Squid bonding. (The other 50% will be distributed to protocol contributors).

1 NFT = 1 Vote

1 veSQUID = 1 Vote

In order to obtain veSQUID, users will need to lock their sSQUID for a predetermined time period — in the same manner as Curve Finance.

• 1 SQUID locked for 4 years will equate to 1 veSQUID
• 1 SQUID locked for 2 years will equate to 0.5 veSQUID
• 1 SQUID locked for 1 years will equate to 0.25 veSQUID
• 1 SQUID locked for 6 months will equate to 0.1 veSQUID

Protocol fees will be awarded pro-rata to active voters based on their voting power.

Specifically, governance compensation will be paid out based on bonding fees collected by the smart contracts. The SQUID system has an adjustable fee function, meaning the protocol’s fees can be changed via governance votes. As of the time of this post, protocol bonding fee stands at 10% of all SQUID bonded.

Roadmap

Tokenomics

• wsSQUID
• veSQUID
• Squid assets as collateral

Governance

• Launch of full snapshot governance processes
• Protocol fee payout to voters

Eth Investment Strategies

• Collect CRV CVX
• Yearn Partner Program
• Leverage DeFi protocols to stack ETH and strengthen industry relationships
• Eth 2.0 node, sqETH

NFTs

• Onboard new NFT artists
• New NFT collections
• DeFi infused NFTs

We invite you to join our Discord and follow us on Discourse and Twitter for developments updates.

Squid DAO’s Mission Statement was originally published in Squid DAO on Medium, where people are continuing the conversation by highlighting and responding to this story.