The DAO Fund:
Litepaper

A brief look at how the DAO Fund works

A managed
portfolio of
cryptocurrencies

100% of the funds from the sale of DAO tokens are placed into a diversified cryptocurrency portfolio including day trading, arbitrage, defi, leveraging, altcoins and mainstream coins.

How the value of
DAO Tokens are calculated

X ÷ Y × 1.045 = Z

We use this basic formula to calculate the sale price of DAO tokens.

X =

the USD value of
funds held in the
DAO fund.

Y =

the amount of DAO
Fund tokens in
circulation.

Z =

sale price
of DAO
Tokens

DAO Tokens
Gain value when
they are bought
AND sold.

When users buy DAO Tokens from the DAO Fund, 100% of the funds (minus necessary transfer and conversion fees) are placed into a managed cryptocurrency portfolio.

When users sell DAO Tokens, The DAO Fund places buy orders on the Waves Exchange at exactly 12% less than the current sell rate. This 12% reduction on exit becomes the gain for remaining DAO Token holders, so when users sell their DAO Tokens back to the DAO Fund, the value of DAO Tokens increases.

Designed to
Minimize Risk
& Volatility

During periods where the DAO token value grows substantially, a portion of the growth is held in the reserve fund. The reserve fund is liquidated during periods of DAO token loss to reduce drawdown and to increase stability.

The DAO Fund takes a percentage of the fund to pay for management. The rate taken reduces with the amount in the fund. The daily fee for the first 300k managed is 0.05% and it goes down from there to 0.01% as the fund grows.

Audited
& Secure

The defi leveraging platforms we utilize are audited by multiple firms such as Techrate, Rug Doctor, and Solidity Finance. The majority of our fund holdings are located inside of major leveraging platforms with over 100 million USD in currency staked. The well known “Master Chef” smart contract code is the baseline for most of our platforms of choice and several billion dollars in combined currency is currently invested in this particular smart contract code across hundreds of platforms.

High Risk Assets
Insured by Fund

All coins that are held by the DAO underneath the top 100 are insured by traders in the DAO Fund and any losses from the purchase of these coins are paid for by the traders insuring the coin. The cost of this insurance is 30% of the increase in value of the insured coins.

Let’s Get Started