Nova Begins: Roundup
A lot has happened in our first three months as Nova DAO. But fear not, we’ve got the full scoop for you below — and we’ve put some effort in to getting through it all in a (roughly) digestible amount of text this time!
Nova Claims: That’s a wrap!
Our $Dogira -> $NOVA conversion bridge operated for a total of 3 months, as approved by DAO Proposal.
This period has now passed, with both bridges having now passed their expiration date, and initiating their shutdown logic successfully.
As designed, all unclaimed $NOVA tokens were burned — permanently removing them from the supply.
A total of 312,137,963 tokens were burned, equating to around 22.3% of the total supply! Following this, a new DAO Vote will be held to propose 22.3% of the DAO’s $NOVA fund holdings are burned, keeping both ratios in-line.
With this, it’s now time to move forward — and towards building Nova DAO into the incredible decentralized ecosystem that’s more than deserving of the community that have rallied to it.
Nova x DeFi Girls
Yield pairs have went live, as have our first round of reward claims!
To manage DeFi Girls’ yield rewards system, we built and freely released our Gamma Reward Calculator, allowing DeFi Girls holders to benefit from exposure to Gamma’s auto liquidity management service, while also being able to accurately determine the exact rewards earned across any given time period.
Gamma pools automatically re-balance pairs to remain in very tight liquidity, effectively allowing them to earn a disproportionate amount of pair fees; but due to this constant rebalancing (often dozens of times per day, per pair!), keeping track of exact earnings can be almost impossible.
Our Gamma Reward Calculator looks up any given pool’s historical emissions across any set date period, calculates the exact amount of fees owed per re-balance to the given wallet’s staked LP, and tallies up all of the rewards earned during the given period.
The short version: accurate reward tracking, for one of the best real yield systems within the DeFi space 🔥
DeFi Girls Polygon Redeployment
This redeployment will be carried out by Studio Nova, and will include both on-chain royalties, and blocklist functionality, to ensure that the DeFi Girls community can continue to grow their DAO & rewards treasury without any fears of future platforms suddenly u-turning on their creator incentive policies.
As a note: this blocklist functionality would be solely for blocking Marketplace protocols which attempt to circumvent the on-chain royalties implementation. As an example, if OpenSea were to (again) disregard pre-configured DAO/Treasury/Creator royalties for collections, their marketplace router could simply be blocked, rather than another new redeployment/airdrop being needed. Any additions/updates to this blocklist must be ratified by the DAO.
The DeFi Girls Contract will be held under the Nova DAO Multisig, ensuring that user safety and transparency remains paramount throughout operations.
With moving to Polygon PoS, DeFi Girls holders will benefit from high speed transactions, and minimal gas fees; both massive boons when it comes to growing a fledgling community.
And thanks to Polygon’s low gas fees, no action need be taken by any member of the DeFi Girls community — we’ll be conducting a 1:1 airdrop to all holders within the upcoming days.
In short: Studio Nova/Nova DAO will be handling everything — no action is needed from any DeFi Girls holder. Your DeFi Girl NFTs will automatically appear on your Polygon wallet.
If you’ve not got a Polygon wallet yet, fear not — all you need to do is add the Polygon Network to your wallet of choice (i.e: MetaMask), and you’ll have the exact same wallet address you had on Ethereum.
In lieu of payment towards Studio Nova for development and redeployment, DeFi Girls will instead donate $2,000 (in USDC or ETH) to the Nova DAO Treasury 💜🎧
USD..oge?
Our whitepaper proposal for an algorithmic stablecoin, hardened specifically for low-liquidity/volume environments has now gone live; and offers to bring both a much-needed stablecoin boost to Dogechain, and real yield rewards to all dogecoin stakers.
Our proposed hyper-collateralization model foregoes the yield ponzinomics of printing, and requires a linearly scaling level of backing for each USDO that enters circulation; while maintaining fully decentralized, transparent mint and burn mechanics.
This model is not being proposed for profit, nor for charity — it’s a proposal for a much-needed service, and filling a huge gap on a chain where we hope to launch our own GameFi offerings in the future.
As noted in our DAO proposal (and coupled with us having a busy dev period even prior to this), we do expect that implementing/testing and deploying USDO will push MetaVice towards a Q1 release, rather than our targeted Q4.
With that however, we believe that the availability of a stablecoin on DogeChain will dramatically boost both the uptake of our own releases, but prove a massive benefit to the entire chain — while also drawing more eyes to Nova DAO, given the novel backing/incentive mechanism employed within the USDO proposal.
That, and come on, a doge-backed stablecoin sounds hilarious. Who in their right mind wouldn’t take notice of a doge-backed stablecoin?
USDO Q&A
Below, we’ve captured some common questions from our Nova Telegram Community, and our answers on those queries.
Q: What’s different between this and LUNA/UST?
A: LUNA/UST was under-collateralized — with only around 10% of the circulating supply actually being backed. By contrast, USDO is over-collateralized (to an extreme degree); linearly scaling from 350% collateralization, to 2,000% collateralization depending on the value of the underlying asset. This would mean that from a market peak, the underlying value can drop by 95%, and the pegging would be maintained.
Q: How does this benefit Nova DAO?
A: While the system’s heartbeat component remains centralized, 10% of all fees generated will be held by Nova DAO. However, with a suggested fee rate of 0.25% (giving Nova DAO an effective return of 0.025% of the fees), it’s assumed this will be quite a low return/would likely only contribute towards centralized server costs.
However, the availability of a stablecoin on Dogechain, and the general liquidity that this would provide (coupled with single-staking rewards for wrapped doge) would greatly incentivize their ecosystem, which we have received grants for building on; a healthier ecosystem on Dogechain would in short, ensure greater returns for our future product launches on the chain.
Q: How do the fees work? Why can’t they be higher to increase profits?
A: A small fee of 0.3% is charged whenever a user mints or redeems USDO. 90% of that fee will be rewarded to stakers, while 10% is retained by Nova DAO.
This fee is primarily for incentivizing stakers whom are securing the USDO protocol, given their risks of needing to wait out any market pullbacks for collateralization levels to increase. However, the higher the fee, the lower the peg is maintained; in the case of a 0.3% fee, USDO’s actual peg would be closer to $0.997 than $1 on the button.
Fee scaling is in places for situations where the network is under-collateralized, in order to further incentivize stakers. This runs to a maximum of charging a 5% fee for mint/burn events if the network falls under 50% collateral; adding a comparatively enormous incentive to stakers to further secure the network. This means that the USDO price pegging can drop to $0.95 — and while not ideal, this fee and associated cost ensures the network is well-hardened in the case of peak market drawdowns.
Q: Won’t the hyper-collateralization model result in a much lower circulating supply than other stables?
A: Yes, supply is essentially sacrificed for network security. While USDO would be exponentially more difficult to grow than say, UST or any equivalents, it repays that by offering exponentially more security to all USDO holders.
Q: Couldn’t this model de-peg to the upside?
A: This is actually a possibility, yes — the protocol may result in being “over-secured”, with supply not being released fast enough to meet demand on decentralized exchanges. However, given the base redemption value will always remain at $1 in underlying assets (sans fees), we expect that any upside de-pegs would be temporary.
However, as always, neither Studio Nova nor Nova DAO can predict how assets are traded on decentralized marketplaces — and as such, we always advise caution when interacting with them.
Onward!
We’ve definitely got our plates full, and we’re enjoying every bit of it so far. The past short few weeks has seen us at Studio Nova get to enjoy getting back into the thick of development — and we’ve also got some gorgeous artwork to showcase to you with the unveiling of MetaVice, courtesy of our extremely talented Mabiruna.
We’ve a lot more in the pipelines — here’s to getting back into the driving seat.
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Discord: https://discord.gg/NovaDAO
Home: https://novadao.io
