As the crypto markets approaches a possible inflection point inclining possibly towards a more bearish bias, the MM team has been hard at work to build a solution geared towards minimising the impact that a possible crypto winter/autumn could do to our ecosystem.
This solution of ours seeks to reinforce our ecosystem, ensuring all our partner projects (projects that made leaps of faith pegging their token price to ours through MMF liquidity) positively benefit through a stronger $MMF token price and liquidity.
One major concept: Protocol-Owned-Liquidity (POL). This will be the name of the game moving forward. The MM community is a strong one, but be that as it may, there are still mercenary farmers amongst us. These mercenary farmers tend to provide liquidity to the MM ecosystem only to move on when yields drop, and these are generally not users who believe in the MM ecosystem and larger game plan that the team has set out to achieve. This is where having protocol-owned-liquidity is important, to ensure that liquidity provided to our ecosystem stays within the ecosystem. Protocol-owned-liquidity are locked and it helps ensure perpetual liquidity for our tokens.
The MMDAO product will be launched to achieve this protocol-owned-liquidity goal. Through the use of a bonding system, users will sell their liquidity tokens to our MMDAO where users will receive a $MMD token. This $MMD token can then be used for single staking to earn the premium earned through the selling of bonds.
(1) Different Mechanics
Unlike traditional rebasing DAOs inspired by Olympus, our solution only seeks to borrow the concept of accumulating POL through selling bonds at a premium. There will be no rebasing mechanism as it is generally too complicated for the laymen to understand. Instead, we will be implementing a staking mechanism. Also, it generally results in overinflation in circulating supply at the beginning before the project has amassed sufficient liquidity (which results in huge dumps) before the project is ready. Most importantly, the main token to be used as backing will not be $DAI (as opposed to what all projects currently do), but $MMF will be used. Each $MMD token that exists in circulation will always be backed 1 to 1 $MMF minimally.
(2) Huge Backing From Onset
The team will be placing all POL that has been accumulated thus far from trading fees (~$1mil USD), and will continue using POL from trading fees to back the $MMD token. We currently have the highest trading volume on Cronos (attached below data from dexscreener) and we expect this POL from trading fees to increase exponentially as our platform increase in user base and consequently, trading volume.
Also, the team will grow the token backing through the use of 4 main strategies outlined below. With a total of 4 main strategies (trading fees POL, yield generation, decentralized venture capital, partnerships that increases accumulation), we will be the first DAO to be able to aggressively increase token backing as opposed to the current narrative for all Ohm forks where token prices are skydiving.
(3) Low Bond ROI
This is a long term game that we are playing in order to accumulate POL. This is why we will not adopt crazy bond discounts of >10%. We look to ATTRACT ONLY users who firmly believe in our ecosystem by not providing a high bond ROI. Users who hold $MMD will benefit in the mid to long term from an increasing token backing as the treasury grows. Key focus is on sustainability.
(4) Bond Assets
The MMDAO will seek to sell bonds for the following types of assets: $MMF, $SVN, MMD-MMF LP, MMF-CRO LP. Our concept is different compared to what all other Ohm forks are doing where they seek to accept DAI tokens.
Why these tokens? Because we are backed by the $MMF token, it is only sensible to accumulate $MMF tokens to grow the backing. Since $SVN tokens are pegged 1:1 to $MMF, it achieves the same task of becoming backing for $MMD. MMD-MMF LPs are important to facilitate price stability and trades for the $MMD token. MMF-CRO LPs are the bedrock of our entire MM ecosystem, and we will seek to accumulate that as well.
(5) Growing Token Backing
The $MMD token is backed by the $MMF token, and hence we seek to accumulate $MMF tokens to increase the backing over time. To do so, the team has multiple strategies that will be implemented to ensure that the $MMF tokens backing $MMD increase over time, increasing the intrinsic value of $MMD.
(6) Yield Generation
The team will utilise the funds generated from bonds to generate yields. This will include the use of high-yielding auto-compounded vaults on MMO to earn $MMF and $MMO. At the same time, because each $MMD token is backed by the $MMF token, a larger fund allocation will be prioritised towards svn.finance to provide liquidity for the SVN-MMF pair as this will exponentially grow treasury (especially since each SVN is pegged 1:1 MMF, and hence works perfectly as treasury backing).
(7) Partnerships
MMFinance will deepen its partnership with all our partners, including Croissant Games with their battle tested RNG solutions to integrate its games to allow play-to-win games directly against the MMDDAO treasury to exponentially grow the treasury of $MMF, $SVN, $MMD tokens to further increase backing. Date of integration will be released at a later time. We will also seek to supply $MMF on lending platforms like Mimas Finance to generate yields and grow the backing of $MMD.
(8) Decentralized Venture Capital
The DAO will use the MMF tokens from treasury to invest in promising launchpad projects to aggressively grow the DAO treasury. Many Ohm forks have promised to become a decentralized VC fund, but few have achieved so, and will be able to do so.
Why do we think we can do this for you as an investor?
Because of the network effects that MMFinance has built thus far, we are one of the de-facto launchpads on Cronos, which allows our team to gain a more in-depth access to some of the most promising projects in the cryptosphere for you. With this, the DAO fund will use the treasury assets to invest in the launchpad projects that are launched off MMFinance, which is a huge win-win for all up and coming projects and long term token holders involved. The DAO fund is also not opposed to accumulating blue-chip NFTs, and will seek to identify and accumulate Cronos blue chip NFTs to serve as further backing.
With that, we hope it provides a convincing case for what the MM team deems as an important stepping stone towards ensuring stability for our entire MM ecosystem. We treasure the projects that launch off us, and this is our assurance to any future projects of the depth and stability of the MM ecosystem moving ahead.
Very soon. Better load up some $MMF if you want to get your hands on some $MMD #NFA
Our team is busy preparing the contracts and UI required for this. A firm date will be announced in due time, so do look out for our next announcement where we address and FAQs asked by our community members.
With that, #LFCRO 🔥
Twitter: https://twitter.com/MMFcrypto
Telegram Group: https://t.me/MMFcrypto
Announcement Channel: https://t.me/MMFann
Price Channel: https://t.me/MMFPrice
Website: http://mm.finance/
Medium: https://medium.com/@MMFinance