GIP-49: Should GnosisDAO do a BFF Partnership with MakerDAO?
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GIP: 49
title: BFF Partnership with MakerDAO
author: Karpatkey
status: Draft
type: Meta
created: 2022-06-03
Simple Summary
GnosisDAO and MakerDAO are naturally aligned with DAI as a common denominator. Gnosis Chain uses bridged DAI as its gas token so DAI’s adoption is critical for the success of the network.
Gnosis Ltd has already started buying MKR aggressively in the open market so it makes sense to align efforts with the GnosisDAO. Therefore, we propose the following:
- Propose a token swap GNO-MKR of around $70 million to the Maker community
- Explore the use of an institutional MakerDAO vault with the GnosisDAO treasury using GNO + stETH and mint 100 million DAI to be used for the development of the Gnosis Chain
- Explore a GNO grant with MakerDAO growth core unit to expand global adoption and brand awareness of Gnosis Chain
- Rebranding xDAI to DAI
- Increase GNO incentives to DAI pairs on Gnosis Chain
- Periodically buy MKR in the open market using GnosisDAO’s treasury farming rewards
Abstract
GnosisDAO and MakerDAO both share a vision of using DAI to build a decentralized digital global economy that is fair, transparent and efficient.
MakerDAO is one of the most prominent founding players in the DeFi ecosystem, broadly regarded as a blue chip DAO, and creator of DAI: one of the most solid stablecoins in the market, which has had an unwavering performance throughout all market crises so far.
GnosisDAO’s vision and ethos are aligned with MakerDAO’s, and there’s an opportunity of joining forces to improve both DAO’s growth and impact in the ecosystem.
All the suggested actions detailed in the Specification section of this proposal aim to strengthen cooperation between both organizations so that their efforts yield better results.
Motivation
If GnosisDAO joins forces with MakerDAO to carry out DeFi promotional efforts, including social media communication, technical articles authoring, brand awareness, etc, there would be a synergical advancement of those efforts’ impact, resulting in a significant increase in user adoption and positioning improvement, benefiting the DeFi ecosystem in general and both DAOs in particular.
Specification
We propose carrying out the following actions:
Carry Out a Token Swap
We would propose in both Gnosis’ and MakerDAO’s forums the execution of a large token swap of around $70MM, including incentives to maximize user adoption, approached as follows:
The token swap between Maker (MKR) and Gnosis (GNO) would be used to create a liquidity pool in several Liquidity Protocols on Mainnet and Gnosis Chain. MKR/GNO pools will reward liquidity providers with GNO.
Both DAOs would commit to a vesting period of 2 years.
Token swaps have several benefits:
- Treasury diversification
- Economic incentives to strengthen the bonds between both organizations and foster collaboration
- Increase the number of DeFi applications (staking, liquidity provision, etc.) for both DAOs, using the received tokens without selling them
- Increased liquidity of the tokens in different protocols.
Institutional MakerDAO Vault
We’d explore the use of an institutional MakerDAO vault funded by the GnosisDAO treasury using GNO + stETH and mint 100M DAI to be used for the development of the Gnosis Chain. This could potentially result in a lower and more stability fee, critical for the long term planning of the Gnosis Chain funding requirements.
Provide a GNO Grant for the Global Adoption of DAI
MakerDAO Growth has been doing an exceptional job in achieving massive adoption of DAI in South America, having positioned it as the stablecoin of choice among DeFi users in the region. In order to further expand DAI adoption on Gnosis Chain (which also results in overall DeFi users increase) in the entire Latin American region, we suggest exploring a grant for MakerDAO growth. Parallel to Latam’s coverage, a global expansion would be planned and executed, as detailed in the ‘Join forces with MakerDAO to Expand Global DeFi User Adoption and Brand Awareness’ point below, to foster adoption and brand awareness of the Gnosis Chain.
Rebranding xDAI to DAI
xDAI, Gnosis Chain’s native token, would be rebranded to DAI. This will result in an increase of awareness of DAI among GC users and it will also reduce perceived friction of bridging DAI to Gnosis Chain.
Increase GNO incentives to DAI pairs on Gnosis Chain
DAI pairs will be incentivized in the Gnosis Chain with additional GNO, rewarding their liquidity providers with different combinations of GNO to increase the DAI TVL in the network.
Periodic MKR Acquisition
The MKR token would be periodically acquired by the treasury execution team aiming to hold it long term, and increase MKR’s liquidity in different DeFi instruments across different protocols and networks.
Funds to acquire MKR would be taken from GnosisDAO’s treasury farming rewards.
Join forces with MakerDAO to Expand Global DeFi User Adoption and Brand Awareness
This cooperation efforts will be distributed to the most efficient actors in improving brand awareness of both DAOs, expand the DeFi user base and increase DAI’s TVL across networks.
Social Media
Publications will be made by official MakerDAO and GnosisDAO accounts to improve positioning of both DAOs, their products and tokens.
Multi-channel Advertising
Collaboration efforts with cryptocurrency exchanges will allow them to increase the impact and reach of their multi-channel advertising campaigns, that aim to increase DeFi user base, DAI adoption and brand awareness of Gnosis and MakerDAO.
Co-branding and Article Publishing
Technical articles about both DAO’s products and solutions would be co-authored and published online, showing both their logos.
Real-life and Online Events, Presentations and Interviews
Members of both DAOs will join efforts to participate in conventions, podcasts, interviews, presentations, etc. to raise awareness about their solutions (individual and collaborative), mentioning both DAOs and displaying both logos when applicable (for joint projects).
Rationale
The main reason behind all joint efforts is to leverage the synergy that both DAOs could achieve, taking into consideration that both organizations have several common goals such as DeFi user base expansion, DAI adoption and technical improvements, evolution of the ecosystem and an increase in DeFi user friendliness to catalyze massive migration from TradFi to DeFi.
MakerDAO has been considered given their trajectory in the ecosystem, the quality of their products, their evolution, brand awareness and the alignment of their vision with Gnosis’.
This proposal is in phase 3, please vote on Snapshot!
https://snapshot.org/#/gnosis.eth/proposal/0xf7d4422d6089c9499d7bb9c50100a32dfd4e9b62ce9e0a112a1cfcd4a4ca5512