BendDAO x Bankless Consulting

BIP Drafts
#1

Title: Bankless Consulting assistance to BendDAO

Authors: Shaun/dancingpenguin.eth#2590, ETS#6012, CM13#5471

Date Created: 15.09.2022

Date Posted: 19.09.2022

Summary

Hire Bankless Consulting to assist with brand recovery, governance restructuring, and tokenomics restructuring

BACKGROUND

Bankless Consulting has been actively attempting to find advantageous partnerships for BendDAO in an attempt to raise utility, increase the token price, and create utility for all stakeholders and the Defi ecosystem as a whole. As we are familiar with BendDAO, we are prepared to offer assistance in repairing brand perception, improving governance processes, restructuring BendDAO’s tokenomics to a safer, less risky state, and help set up a system for advantageous OTC trading of liquidated NFT’s in the event of a cascading NFT market failure. We have been invited by Pump#1742 & CodeInCoffee.eth#7795 to submit this governance proposal.

MISSION & VALUES ALIGNMENT

This project is part of a DAO to DAO relationship that seeks to improve and stabilize BendDAO.

SCOPE OF WORK

Bankless Consulting will provide recommendations, help create partnerships, and assist in implementation in marketing/branding,governance, tokenomics, and emergency liquidation mechanics.

SPECIFICATION

Bankless Consulting will provide the following assistance:

  • Marketing: Crafting a marketing response including twitter AMA’s, social media strategy, community outreach, and creating connection and brand image repair with various NFT communities. This is specifically to broadcast the recent problems BendDAO has been facing as success stories during a troubled market.
  • Governance: Assistance and creation of a more comprehensive governance structure, modeled off of BanklessDAO, designed to increase engagement and voting
  • Tokenomics/DeFi: There will likely be more rapid NFT market downturns. It is important to have a plan in place on how to handle this before it happens. As such, we can help reform, stabilize, and put into place plans so that BendDAO can act immediately to prevent such catastrophes or the formation of bad debt owned by BendDAO

FINANCIAL IMPLICATIONS

For their services, Bankless Consulting will charge 20,000 USDC

SUCCESS METRICS OR KPIS

Success will be measured by

  • Twitter/community sentiment towards BendDAO improving,
  • The implementation of a plan to prevent contagion and improve the tokenomics of the platform,
  • Improved governance participation as measured by voting.

NEXT STEPS

Bankless Consulting will form a team and begin work immediately to advise and assist BendDAO. We will complete our work within 8 weeks. Bankless Consulting has enjoyed our interactions with BendDAO and will continue to be available after that point should additional work be needed. One potential step following this work is helping establish partnerships between NFT gaming companies, chain ecosystem development funds, other DeFi protocols, and BendDAO.

OUR BACKGROUND

​​Bankless Consulting is the world’s first web3-native consulting firm. Based globally, in true web3 fashion, we have consultants on every continent, from a diversity of backgrounds, with decades of experience in management, technology, finance, marketing and governance.

  • For this proposal
  • Against this proposal

0 voters

1 Like
#2

Thanks for the proposal from Bankless DAO. They are very supportive to BendDAO when BendDAO was facing the liquidity crisis last month. Besides that, Bankless DAO try to bridge BendDAO to AAVE DAO for the potential collaboration.

#3

My recommendation is to proceed with this proposal after the financing is completed.
Because after the financing is completed, benddao will set up a treasury committee to standardize the use of treasury funds.

2 Likes
#4

“One potential step following this work is helping establish partnerships between NFT gaming companies, chain ecosystem development funds, other DeFi protocols, and BendDAO.”

Maybe list the projects that Bankless Consulting plan to connect for BendDAO.

1 Like
#5

“Maybe list the projects that Bankless Consulting plan to connect for BendDAO.”

So connecting BendDAO to other projects is something that we actually were exploring (and continue to explore), with us spending a lot of time setting up a conversation with AAVE and BendDAO. Other partnerships are very much possible, either in terms of partnership, chain expansion, mergers, etc. However this proposal seeks to help BendDAO fix some tokenomics and branding problems that we feel is detrimental to building partnerships with other protocols. The important part of the sentence you quoted is “One potential step following this work” We don’t see exploring partnerships and connecting BendDAO with other projects as part of this governance proposal, but rather we want to help in the following three areas:

1)Marketing/Branding
2)Governance
3)Tokenomics/DeFi

Make sense? We think that connecting with other protocols and making partnerships will be easier once these three areas are improved, particularly (1) and (3).

#6
  • The implementation of a plan to prevent contagion and improve the tokenomics of the plat form

Would you mind to share more about this? I personal very curious about what the tokenomics issue BendDAO have now, thanks for joining the community for making BendDAO better.

1 Like
#7

Great question. One of the problems that BendDAO has is a potential feedback loop between collateral NFT liquidation and a dropping floor price from a large number of NFTs of a collection hitting the market at once. This dropping floor price would cause more NFTs used as collateral to be liquidated, which could not be absorbed by the buy side of the NFT market, and cause a spiral to continue to the detriment of both BendDAO and the NFT community. The BAYC community were actually aware of this and sounded alarm bells a few days before a liquidity crisis of BendDAO, when it looked like this feedback loop might happen. BendDAO’s response to this crisis was to speed up the timing of the liquidation auctions, which had the advantage of having them be sold faster to increase liquidity, but was also in our eyes dangerous… faster auctions means less eyes on the auction, which means a smaller market to sell them to. In certain market conditions this just speeds up the spiral, causing faster liquidations and a very rapid drop in NFT floor prices.

There are lots of ways to change your system that reduces the risk of a spiral, including finding ways to increase the number of buyers looking at your liquidation auctions, having different NFT liquidation mechanics that kick in at different times, setting up liquidation sales in such a way that reduces the risk of the floor price dropping, and also changing the actual tokenomics and mechanics of your collateral system.

#8

Every proposal related to the Bend treasury should be proposal in the forum and discuss by the community, if the community vote more yes on the proposal then we can make a snapshot to let the veBend token holders to vote, that’s the process for every single money ask the treasury should follow.

We as the BendDAO dev team make sure the process is executed but no personal promotion here. We will make the treasury not own by BendDAO dev team multisig anymore in the future, it should be owned by the community elected multisig.

1 Like
#9

Would be happy to edit this part out, however it seems like the post has been up too long for edits. Apologies! If this proposal moves out of discussion to an actual governance vote, let’s remove that part, obviously!

1 Like