Thread by @Rafi_0x

1/ $DOUGH @PieDAO_DeFi (piedao.org)
PieDAO offers fully decentralised market weighted token indexes (the equivalent to crypto ETFs), some serious innovation such as PieVaults and Ovens, a major partnership with NFTX, and is still only at $14M mcap...

2/With PieDAO, you can for example invest in a weighted portfolio of DeFi bluechips ( $AAVE, $MKR, $SNX, $YFI ..) through the $DEFI+L token, in a basket of smaller/high growth DeFi names ( $BAL, $REN, $UMA, $LRC ) through the $DEFI+S token, or on a 70/30 mix of both with $DEFI++

3/ Another PieDAO favorite is $BCP (Balanced Crypto Pie), with the ultimate “buy it and forget it” portfolio allocation: 1/3 $WBTC, 1/3 $WETH and 1/3 $DEFI++.

I seriously suspect most people would do better by just buying and holding $BCP than by actively trading…

4/ PieDAO offers two types of token indexes. The original “Pies”, which are managed through auto rebalancing @BalancerLabs pools, and the newer PieVaults, which are where the really cool stuff happens: yield-bearing assets, asset lending and meta-governance.

5/ PieVaults combine the benefits of diversified token indexes with yield farming strategies, so instead of just holding the underlying assets, the protocol also applies them in different yield strategies (lending, staking…) to earn extra passive yield for the token holders.

6/ $YPIE was PieDAO’s first PieVault, giving full exposure to the Yearn Finance Ecosystem ( $YFI, $SUSHI, $K3PR, $CREAM ), including yield earning strategies.

The image below shows how most assets in the index are invested and earn yield passively to their holders.

7/ All token indexes (Pies and PieVaults) are fully collateralised and can be redeemed for the underlying assets at any time, and tokens can either be bought from the market or minted with the corresponding ETH amount (which is swapped for each token) through the platform.

8/ So if any of the index tokens trade above or below the market value of the underlying assets, this creates an arbitrage opp. that helps return the token to its fair price (eg arbitrageur buys token on @SushiSwap below market value, and redeems it on PieDAO for market value)

9/ All new token indexes or any modification to the list of assets in existing indexes are voted through governance by $DOUGH token holders, and PieDAO takes governance so seriously that they have implemented another impressive innovation: meta-governance.

10/ This means that $DOUGH token holders can also vote on governance matters relating to the tokens held by PieDAO as collateral for their PieVaults ($YFI, $AAVE, $MKR, $SUSHI, etc)

So through meta-governance, $DOUGH basically becomes a governance passport for the DeFi ecosystem

11/ Because minting new Pie index tokens involves a large amount of token swaps (from ETH to each of the underlying assets), this is a very gas intensive process that could price out smaller investors.

To solve this issue, PieDAO created another awesome solution: the Oven.

12/ Via the Oven, smaller investors can deposit the amount they want to invest (can be as little as 0.1 ETH), and the Oven will wait until a minimum of 10 ETH is deposited to mint the next batch of tokens, allowing all investors to split the gas costs and save up to 97% in fees

13/ PieDAO’s latest index, $PLAY, developed in partnership with NFTX, is the ultimate Metaverse index, tracking tokens related to games, Metaverse and NFTs ($AXS, $MANA, $ENJ..) but also actual tokenised NFTs (Punks, Hashmasks..) thanks to NFTX’s indexes

14/ And what about the $DOUGH token?

As mentioned above $DOUGH is the governance token of PieDAO as well as a DeFi governance passport, but the main news is that $DOUGH will soon also become a revenue accruing token, earning a share of PieDAOs streaming fees.

15/ These are small streaming fees (0.7% to 1%) taken from the revenue earned by different underlying assets in PieDAO’s indexes.

For Pies managed through Balancer smart pools this comes from swap fees, and for PieVaults, this comes from the underlying yield earning strategies

16/ The max supply of $DOUGH is 100M, with 6.9M tokens currently in circulation. Token allocation and vesting schedules can be seen below, where Epoch 1 and Epoch 2 correspond to tokens minted by the early PieDAO community, which are now vesting over 1y to 1.5y periods.

17/ As seen above 60% of the supply is reserved for incentives such as liquidity farming, and a new liquidity farming campaign called Doughpamine just started on April 12th, noting that most of the liquidity rewards will also be subject to a 1y vesting.

18/ Liquidity rewards will be given to users staking ETH/DOUGH or PLAY/DOUGH SushiSwap LP tokens, and currently APRs are an amazing 1430% for PLAY/DOUGH and 545% for ETH/DOUGH, as there is a 4x boost to rewards in the first month, to help bootstrap liquidity.

19/ In order to avoid “farm & dump” strategies and to incentivise long term investors to participate, most of the farming rewards will be vested over 12m, and during the first month of boosted rewards there will be a 5% withdraw fee on staked LP tokens.

20/ Thanks to this liquidity program, the DOUGH/ETH pair has now reached $5M in liquidity, and PLAY/DOUGH pair $2.7M. Considering that $DOUGH itself is still only a $14M market cap token, this is a sizeable amount of the supply currently locked, and with very little sell pressure

21/ The team, including @Alexintosh, @williamx0, @MickdeG010, @dimarconicola,
@uegabs, are established figures in the DeFi space, are super active and helpful in their Discord, and have a history of collaboration with other reputable projects such as NFTX, Sushi, Loopring…

22/ In short, PieDAO is creating great new investment vehicles through their token indexes, bringing real innovation to DeFi through their PieVaults, Oven, and Meta-Governance, doing great partnerships, all while still at a $14M mcap..

23/ A few links:
- Project documentation: docs.piedao.org
- Team presentation: medium.com/piedao/meet-so…
- DOUGH token economics: medium.com/piedao/dough-v…
- Doughpamine farming program: forum.piedao.org/t/doughpamine-…
- Vfat: vfat.tools/piedao/