DXdao (DXD)

From their website (7-7-2020):

"The DXdao is a decentralized organization initialized in May of 2019 and has over 400 unique stakeholder addresses. It develops, governs, and grows DeFi protocols and products."

Basics

• Based in:
• Founded in: 5-2019
• Mainnet release:
• From this article on DAOs (26-8-2020):

"DXdao is a collective of over 400 stakeholders that develops, governs, and grows DeFi protocols and products. Those who hold DXD tokens, which is the DXdao native ERC20 token, have an “economic claim” to the organization’s revenue. This also offers access to services and features in DApps that DXdao powers, like gasless transactions, feeless anonymizing of assets, reduced trading fees on DEX protocols and more.

“I joined DXdao because I felt DAOs would play an important roll in making sure DeFi is actually decentralized.”
— John Kelleher, founder of Level K

DXDao collectively owns Mix.eth, Omen.eth, Mesa.eth, and DXswap.eth. You can learn more about each of the DApps on their website."

History

• From its FAQ (7-7-2020):

"Originally incepted to own the DutchX trading protocol, the DXdao was created in May 2019 in an effort led by Gnosis but open to all. The initial distribution of reputation was carried out in a fully open process, with any would-be member able to earn reputation in a number of ways. Since then, the DXdao has directed its own actions according to its members. In one short year, the DXdao has grown into a broader-scoped and more capable collective."

• DAOStack says (4-11-2020) they have 'helped Gnosis launching [DXdao] last year on Alchemy.'

Audits & Exploits

• Bug bounty program can be found [insert here].
• Scored 72% on DAOmeter (21-2-2023), scored very low on Voting (no staking and no delegates), low on Treasury (no custom tooling and no dedicated team) and a little low on Community (no ongoing payroll and no clear onboarding process) and Security (no security module).
• From their announcement (16-11-2020):

"The Swapr contracts have been audited by Sunfish Technology."

Bugs/Exploits

• DXdao governance vulnerability disclosed, $80 million could be withdrawn (20-10-2022).

Governance

• From its FAQ (7-7-2020):

"The DXdao reputation holders vote on proposals on-chain, using DAOstack's alchemy interface and holographic consensus. This means some proposals can pass by a relative majority, and other times an absolute majority is needed. This depends on the type of proposal, and if the proposal is boosted by reaching a specific staking threshold. In general, though, the DXdao coalesces around ideas and achieves rough consensus via off-chain, less formal methods, such as weekly calls, discussion forums, chat groups, etc. All of these are open to the public."

• Delphi entered the DXdao (21-8-2020).
• From an interview with DeFi Prime (9-8-2020):

"DXdao has been producing at a wildly fast pace, with two live products they are actively governing and/or developing for. A lot of my attention has been on Omen, a decentralized prediction market application that lets you create a prediction market in a matter of minutes. It boasts a simple and intuitive interface for creating and staking in markets, with a very dedicated community behind it and Kleros Court as an arbitration platform. The powerful thing about prediction markets is that people are rewarded for reporting truthful information. Regardless of the sides of any debate, the prediction market forces acknowledgement of a clear consensus. Decentralizing the process allows it to be automated, permissionless, and more efficient than they would otherwise.

Creating content and messaging that explains all of these products and builds the brand of the DAO is a challenge, as everyone here are self-starters. No single person is calling the shots, which means that anyone can jump in with ideas and get to work on them. While the DXdao moves forward as a collective, it’s great to ask, “What do you think of this as the next content piece?” in a group chat, and pool our concepts together so that we can keep our efforts collaborative."

Treasury

• From their blog (5-6-2021):

"REP holders passed a new program to diversify the treasury at the end of April, building on the first program where $3m of stablecoins were acquired. The program authorized another $5m of stablecoin purchases given the treasury’s heavy exposure to ETH."

Token

Token allocation

• From its FAQ (7-7-2020):

"The DXdao is issuing DXD token through a continuous fundraiser. The DXD token is a brand new token. Purchasers of DXD are funding the efforts of the DXdao in exchange for a right to future cash flows. DXD tokens will be sold to the public in exchange for ETH according to a bonding curve. The curve slope is linear and positive, so each successive DXD is sold for more than the previous. DXD can also be sold back into the curve, although at a lower rate than purchased. The slope of the bonding curve was specified such that $300,000 USD worth of ETH would be invested once 12,000 DXD was issued.

The DXdao itself will receive an initial pre-mint of 100,000 DXD tokens. Thus, 12,000 DXD sold would represent just under 11% of the DXD supply. The 100,000 DXD issued to the DXdao will vest monthly over 3 years (i.e. 1/36th = ~2775 DXD will be vested each month for 36 months). Before the curve turns into a positively sloping function, there is a flat section of the curve where the first $50,000 raised will be for DXD sold at a lower, constant price. This $50,000 period also acts as a 'kickstarter', wherein any amount invested can be withdrawn before the $50,000 is reached. (All USD denominations above are in ETH terms using current prices.)"

Utility

• Value accruement mechanisms are present, but are currently (1-9-2020) set to 0. 
• From this video interview (14-9-2020). One of the DXdao members talks about revenue and confirms that right now Omen is not creating revenue for the DXdao, but the social contract states that when it does start creating revenue (which this person says could be done in a bunch of different ways) it will go towards the buy back treasury for the bonding curve. Also says Omen and Mesa are the only 2 live products. He says Mesa is also not making revenue, he thinks there could be fees added to the frontend, although he thinks these extra fees would make Mesa less competitive. He mentioned that Gnosis Protocol generates revenue that goes towards OWL, he says Gnosis has incentive programs in the works where Gnosis would give GNO to DXdao, GNO generates OWL tokens which get burned by the Gnosis Protocol, so one path towards revenue could be holding GNO in the DXdao treasury and making money off of how well Gnosis Protocol does with operating fees. Another path could be taking fees from IDO projects. But for now the focus is on getting market share since the DXdao is only a few months old. 

Tech

• Whitepaper can be found here (12-7-2019).
• Code can be viewed here (7-7-2020).
• Built on: Ethereum, ERC20.

Upgrades

• From their blog (5-3-2021):

1. "DXdao aims to align the interests of DXD and REP holders by combining their influence into a single voting power equation. Longer DXD governance lockups will result in heavier weighting. Inactive REP addresses are subject to a decay function.
2. New Governance compensation rewards those who participate in “Good Governance”.
3. REP to be distributed to DXD holders; additional to bonding curve purchasers. Vested DXD to be distributed to active REP addresses."

Scaling

• From their blog (29-1-2021):

"Plans to launch Swapr, Omen and a DXdao base on Arbitrum, a Layer 2 scaling solution that uses an optimistic rollup."

Their Projects

• "DXDao collectively owns Mix.eth, Omen.eth, Mesa.eth, and DXswap.eth. You can learn more about each of the DApps on their website."

DXventures

• From the introduction (17-3-2021):

"On March 8, 2021, DXdao REP holders voted to pass a signal proposal in support of DXventures, a focused, internal investment fund to seek out and invest in promising projects that are solving the pain points of decentralized organizations."

Swapr (SWPR)

• From this September update (8-10-2020):

"DXswap has not launched yet but the past month was full of activity as the community gears up for mainnet. Events in the market, namely the launch of Sushiswap and subsequent launch of the UNI token, have altered the launch strategy. Rather than focusing on attracting liquidity with DXD rewards, the community is focusing on leveraging DXswaps advantage: governance."

• From their announcement (16-11-2020):

"Swapr is a governance-enabled decentralized exchange, based on a fork of Uniswap

1. Swapr is the first AMM to allow for adjustable fees for liquidity pools through governance
2. DXdao will be the first DAO to use its treasury to seed a new DeFi protocol
3. Conditional farming is a novel way to incentivize Swapr LPs based on a future liquidity threshold
4. Swapr dApp and core contracts must be ratified by DXdao REP holders through several governance proposals

The DXdao community is proud to announce the alpha launch of Swapr on Ethereum mainnet. Swapr is the first automated market maker (AMM) to allow for adjustable swap fees through governance and has been organically developed within the DXdao community (code name: DXswap). The contracts have been audited by Sunfish Technology."

• From their blog (5-6-2021):

"Swapr Beta will be live on mainnet and xDai. Elsewhere, Swapr had its best month ever in terms of trade volume with over $6.6m across xDai and Mainnet."

Mesa

• Originally started by the Gnosis team, but moved over to DXdao. "You can trade on Gnosis Protocol using Mesa, the first dapp built on the protocol, developed and maintained by the DXdao."

• From this article about IDOs (18-9-2020):

"Mesa is a DApp built on the Gnosis Protocol which has been utilized to launch several token sales, including those for MTA, DMG, and DIA. Using Gnosis’ ring trading feature, Mesa allows investors to participate in a token offering using any ERC-20 token listed on Gnosis.

Mesa takes an innovative approach to token sales, allowing buyers and sellers to place sealed buy and sell orders in advance before the sale begins, and asynchronously matching orders via batches of 5 minute mini-auctions. This approach is designed to mitigate gas wars from occurring at the time the sale starts, allowing participants to compete on price alone."

• It has been launched on xDai (3-11-2020).

Omen

• A prediction market launched (1-7-2020) by Gnosis, governed by DXdao.

Rails

• From the announcement (24-9-2020):

"Rails is a layer-two payment solution that can transfer ETH and ERC20 tokens between users instantly and gas-free. Rails uses the Loopring zkRollup and Loopring Relayer API to facilitate the non-custodial transfers at near-free costs. DXdao is responsible for hosting and managing the front end, while Loopring takes care of all of the protocols and mechanisms that make it possible.

Rails’ release is just the starting point, with many plans for additional features soon, such as supporting gas-free swaps. For now, Rails is limited to executing gas-free transfers between users and dApps that are registered on Loopring’s zkRollup. In the upcoming Loopring v3.6 release (circa December 2020), users will be able to transfer assets to any Ethereum address, not just those already on the rollup."

• Is live (8-10-2020).

Roadmap

• Can be found [Insert link here].

Usage

• Has over 400 unique stakeholder addresses (7-7-2020).

Team, Funding, Partnerships, etc.

Team

• Full team can be found [here].
• Created by Gnosis. But now mostly run by DAO members.
• Ingamar Ramirez; DAO member
• Chris Powers

Funding

• From its FAQ (7-7-2020):

"Its treasury holds various capital assets, some of which garner revenues or rewards from other projects or DAOs. It also holds cryptocurrencies worth more than $10,000 USD, including GEN (DAOstack’s native token), ETH, DMM and more. A portion of DXdao revenue is allocated to the reserve, increasing the value of all outstanding bonding curve tokens. This is currently set at 10% of revenue, for a minimum of 5 years. The revenue allocation here can be increased at a later date, but never decreased."

• From a blog by DAOstack (6-11-2020): "It opened its DXD token sale and raised over 10 million US dollars."

Partners 

• Delphi entered DXdao (21-8-2020).
• Works on Rails together with Loopring (24-9-2020) who has been a member of the DAO since the start.
• Partners (6-11-2020) with DMM and Aluna Social.