Benefits of OliveDAO
Why OliveDAO is better than the current state of generating liquidity
The current state of generating liquidity for web3 tokens is highly fragmented, expensive and unsustainable.
Builders of web3 projects at the moment are forced to settle for either of these two choices:
  • Provide high APRs and incentivize liquidity providers to provide liquidity for your tokens through liquidity mining programs, or
  • Seek centralized market makers who charge upfront fees, monthly retainer fees and advisory token allocation along with paying high exchange listing fees in return for providing liquidity on centralized exchanges.
There is a need for a decentralized, community-owned market maker that saves these protocols money and expensive methods of generating liquidity for their projects.

Enters OliveDAO

OliveDAO is a community-owned protocol where protocol token holders decide how much and where to direct liquidity. It is novel and many notches better than the current state of generating liquidity in a number of ways:
Properties of Liquidity
LP Pools
CEX Listing
Expensive (token emissions)
Expensive (upfront fee + monthly retainer + exchange listing + call option on your tokens)
No cost (DAO-to-DAO token swap)
Uncertain (susceptible to vampire attack)
Predictable (lasts as long as MM contract lasts)
Type of Capital
Mercenary (dries up when incentives are exhausted)
Diamond Hands (we are not interested in selling your tokens)
Capital Efficiency for LP
Low (requires 50:50 in Protocol & USDC)
High (can provide deeper liquidity with limited capital)
High (LPs need to stake only single sided liquidity)
Liquidity Uptime
24x7 (as long as LPs exists)
MMs are known to pull liquidity during market crashes
24x7 (permanent source of liquidity)
Impermanence Loss
LPs suffer from IL
No IL (covered by protocol through design)
Ethos of web3
Transparent & Decentralized
Opaque & Centralized
Transparent & controlled by Community
Could be high for low liquidity
Controlled by MMs
Low due to deep liquidity
Price Volatility
Could be high in times of low liquidity
Controlled by MMs
Low due to deep liquidity
The above are just some of the ways in which OliveDAO will upgrade how liquidity gets generated.
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