Today marks the launch of BAL x PRIME, the first DAO2DAO pool that tokenizes a collaborative relationship between Balancer and PrimeDAO. This blog outlines the potential of DAO2DAO pools to align cryptonetworks, introduces the Prime Pool Beta, and shows how to participate in BAL x PRIME — the first DAO2DAO pool (Spoiler: There is yield involved 🌱).
Since the launch of PrimeDAO in November 2020, the Balancer protocol has played a crucial role in the PRIME ecosystem. Initially coined the Prime LP Manager, PrimeDAO has been governing all parameters of its main liquidity pool on Balancer, existing of 20% ETH and 80% PRIME via the PrimeDAO governance mechanism in Alchemy.
Inspired by the potential of Liquidity Bootstrapping Pools to cultivate liquid and accessible token launches, PrimeDAO set out to revamp the LBP experience for users and project teams alike. Through a grant from Balancer Labs, the development of what is known as Prime Launch started. Prime Launch allows anyone to bootstrap a token without needing to write a single line of code. The product provides a crisp and user-friendly interface, support, and ecosystem of service providers that will enable the best permissionless launch experience.
With the development of Prime Launch, PrimeDAO became a Balancer v2 launching partner. The collaboration extended from protocol usage to active contribution, focused on the development scope. Nevertheless, as Prime aims to unleash the mature coordination capacity of DeFi — a big question arrived: How do we allow the entire PRIME and BAL community to participate in and benefit from this collaboration?
The potential for DAO2DAO pools to create a more collaborative DeFi space is well described by Jeremy Musighi, Head of Growth at Balancer Labs:
“PrimeDAO and Balancer Labs share a vision for the future in which DAOs pool their energy and resources to collaboratively tackle shared challenges, rather than replicating work and allocating resources inefficiently through competition. Balancer liquidity pools are customizable and mutually owned pools of assets, which serve as the perfect mechanism to represent relationships between cooperative DAOs that are incentivized to succeed together. Balancer Pool Tokens (BPTs) not only represent each member’s ownership stake in a DAO2DAO pool — they also serve as a joint governance token with the same DeFi functionality of any ERC-20. BAL x PRIME is the first exciting step towards a more collaborative future.”
The Impact of DAO2DAO Pools
As cryptonetworks are interoperable and therefore co-dependent by design, we need models that guarantee productive collaboration between different protocols towards shared goals.
A single DAO’s challenges to remaining competitive in the fast-paced blockchain ecosystem are monumental, given its members' limited amount of attention. However, if multiple DAOs were to coordinate and attack shared hurdles, sharing resources and market exposure, it would amplify the network effect and help ensure the survival of the alliance as a whole.
This is where the DAO2DAO pools come in — collaborative pools that embody relationships between two (or multiple) DAOs.
DAO2DAO pools can serve as a stepping stone for extended cooperation between DAOs. Some examples of DAO2DAO use-cases include:
- Shared liquidity: DAOs can form a Liquidity Commons, cementing political-ecosystem alliances.
- Mutual ownership: By co-providing liquidity to a smart pool consisting of their respective tokens, a family of DAOs can establish mutual skin in the game.
- Common Goods funding: DAO2DAO Pools can be used to start a joint venture between multiple DAOs, for example, to fund a common good.
- Co-governance: The DAO2DAO pool tokens can be used to govern the relationship between the DAOs and the products that are created as a result of the DAO2DAO collaboration.
- Co-farming: DAOs can combine their ecosystem rewards to create collaborative farms that yield more for users.
DAO2DAO pools may unleash a transformation from simple “Monoculture” token use cases to “Polyculture’’ token use cases. “Monoculture” use cases are concentrated on serving a single purpose within a specific token economy where a single set of governors control all aspects of it. In contrast, in “Polyculture’’ use cases, a token is ingrained in a multi-faceted value network, and governance happens by various sets of governors on multiple levels of the cryptonetwork.
More on this — and how Prime will help DeFi transition from a competitive industry to a cooperative network — in a future post!
Prime Pools Beta
BALxPRIME is the first DAO2DAO Pool released at the public beta version of Prime Pools DAPP, which aims to build on the innovative momentum of LP Manager by further enabling collaboration and alliance between decentralized autonomous organizations.
As with the LP Manager, Prime Pools are built using the Balancer Protocol. With its upcoming v2 launch, Balancer takes a big step towards being a primary source for decentralized liquidity. You can learn more about the upcoming v2 launch here.
We believe that the Prime Pools app will integrate and align an ecosystem of DAOs under shared incentives and a common monetary policy.
Participate in BAL x PRIME
The BAL x PRIME Pool (BLxPR), consisting of 50% BAL and 50% PRIME, aligns the values and incentives of the Balancer Protocol and PrimeDAO by providing shared liquidity and mutual ownership.
The Pool contributes to the development of Prime Launch and Prime Pools, two products developed by PrimeDAO on top of the Balancer Protocol.
BLxPR token holders can support the collaboration and benefit by doing so. The token provides ownership of BAL & PRIME tokens, access to BLxPR channels, voting rights in the BLxPR Snapshot DAO, and maybe most importantly, the ability to yield both BAL and PRIME rewards!
PrimeDAO is setting aside 125,000 PRIME tokens for 13 days of liquidity incentives to reward BLxPR supporters! The liquidity rewards will start right after the publication of this blog. The pool will also earn BAL rewards for providing liquidity to the Balancer protocol.
Participating in BAL x PRIME is easy — just follow the simple steps below ⬇️
How to mint and stake BLxPR 🌱
1. Acquire the amount of BAL and PRIME you want to add to the BLxPR pool. Both tokens are most liquid on Balancer protocol, and users also receive BAL rewards for swapping tokens. Get the tokens here.
2. Head back to the BLxPR Overview page of Prime Pools and press on the purple Mint BLxPR button. Now select the tokens that you want to provide to the pool, enter your desired amount of BAL and PRIME, and unlock both assets. Now press the mint BLxPR button and confirm the transaction to get BLxPR tokens.
3. After acquiring BLxPR tokens, head over to the BLxPR Farm page, press the Farm BLxPR button and enter the amount of BLxPR you want to stake, and press the Farm button.
You can claim your Rewards at any time by heading over to the BLxPR Farm page and signing the transaction.
Congratulations! You’re now part of the first DAO2DAO pool and actively contribute to the collaboration between PrimeDAO and Balancer. This is just the start! As a BLxPR holder, you get access to the BLxPR channel in the Prime Discord and will have voting rights in the BAL x PRIME Snapshot DAO. Want to get hands-on and help the collaboration through development or evangelism? Join the Discord Channel and let’s collaborate!
PrimeDAO’s mission is to facilitate the wide adoption of open finance by coordinating and cultivating projects that promote safety, reliability, liquidity, and open access, while avoiding centralized appropriation of critical financial infrastructure through decentralized governance.
If you or a DAO you participate in wants to collaborate with PrimeDAO or launch a DAO2DAO — hop into our Discord channel and let’s make it happen!