ABCDE guarantees 10k ETH liquidity to BendDAO through Strategic Partnership by buying BEND tokens from DAO Treasury

BIP Ideas
#1

ABCDE Capital guarantees 10k ETH liquidity to BendDAO through Strategic Partnership by buying BEND tokens from DAO Treasury

Authors: ABCDE (ABCDE.com)

Date Created: August 24th, 2022

Date Posted: August 24th,2022

# Summary

We (ABCDE Capital) propose that we guarantee 10k ETH liquidity to the BendDAO ETH pool, and in exchange, the BendDAO community can sell 20% of the BEND token supply (2 billion BEND) from DAO Treasury with an 18-month lockup for a total of 2,400 ETH to ABCDE as a strategic partner.

By having ABCDE become a member of the BendDAO community, this proposal will help to grow the BendDAO ETH Reserves and bolster BendDAO’s position as the market-leading NFT liquidity protocol.

We believe this will benefit the BendDAO community and propose to finalize these transaction terms in a Snapshot vote to execute the deal in the coming week.

# MISSION & VALUES ALIGNMENT

We share the same mission with the BendDAO community which is to provide better liquidity for NFTs. ABCDE also guarantees 10K ETH as the reserve fund to support BendDAO‘s ETH pool.

The DAO Treasury Diversification can help the BendDAO community

  • To build and grow even during bear market conditions;
  • To rebuild the ETH depositor’s confidence;
  • To empower the BendDAO ecosystem.

# SPECIFICATION

We jointly propose the following terms:

  • Guarantee 10K ETH as a reserve fund for BendDAO ETH reserve pool
  • 2 billion BEND (20% of supply) to be sold by the DAO treasury at a purchase price equal to 2,400 ETH.
  • Acquired tokens will be locked with an 18-month lockup through veBend.

## NEXT STEPS

Snapshot voting by community and transaction execution.

## OUR BACKGROUND

ABCDE is an 400mm fund investing in web3 builders co-founded by Huobi co-founder Du Jun and former Internet&crypto founder BMAN.

We are builders, entrepreneurs, influencers and the most valuable partners behind the builders.

1 Like
#3

For how long is the 10k ETH liquidity guarantee? Is it a one time injection of 10k eth, or if liquidity drops will you put in more? When would you be allowed to remove your ETH liquidity?

3 Likes
#4

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#5

What is the basis for 2 Billion BEND Equal to 2,400 ETH
Reserve Fund is a relatively broad concept. Even reserve funds can still receive interest income.

If the deal goes through, locked Vebend will receive the majority of the agreed revenue in 18 months, plus interest income on reserves, and I don’t think 2400E is a very sincere offer

2 Likes
#6

Very important point, regardless of the content of the rest of the proposal would definitely need to know more about this ‘10,000 ETH liquidity guarantee’.

#7

Agreed, that veBEND they’d lockup would basically just give a fair amount of revenue past the 2,400 ETH initial acquisition. I want to see more stipulations not just them locking up veBEND and still earning income.

#8

ABCDE proports to bring some financial assets (10,000 ETH) as a Reserve Fund for BendDAO in exchange for 2,000,000,000 veBEND (~$0.0078 28AUG2022) paid for with 2,400 ETH (833k BEND/ETH).

I appreciate the initiative to create a reserve fund but have reservations about selling that much $BEND in exchange for $ETH.

I would like to see more soft skills that ABCDE can offer via this assumed partnership. ABCDE brings very key co-founders to the table, Du Jun and BMAN. Both of whom have done great things within the industry and likely can leverage an extensive network of protocols, people, skills and funds to the support of BendDAO.

Should BendDAO consider this proposal I would like to see a much more extensive offer from ABCDE’s side for the industry connections, other project partnerships and team additions they could bring to the table.

It is good offer to begin with but I believe it needs further refinement of the financial terms as well as the non-financial (more human) terms that ABCDE and BendDAO can agree upon.

Editing following guoxinchen’s post below:

I agree with everything guoxinchen.eth has to say. If the financial terms were adjusted and other (non-financial) features or terms were brought to the table by ABCDE (BizDev with other protocols, support from risk management folks etc) then it would be certainly more considerable (assuming the financial terms were re-written). But as it stands right now there simply isn’t enough meaningful terms being offered by ABCDE to make this a more desirable offer. This proposal should not be accepted in it’s current state.

2 Likes
#9

Thanks to ABCDE Capital for raising a suggestion.
However, I think the proposal is not acceptable.

  1. 20% is too many tokens and would have a very bad impact on the community governance of BendDAO (the general threshold for proposal adoption is 5%-15% of circulation)
  1. The price is too low and BendDAO, as the leader of the NFT lending circuit, should be at a premium, not a discount.
  1. Non-interest related,There is no clear business relevance to BendDAO and this partnership can only be a purely capital type partnership and will not help BendDAO grow its business
4 Likes