What is going on with this project?

I’m trying to understand the logic of this project. You’ve been running an ICO on coinlist for about 6 months, have collected who knows how much money, and your goal is to simply perform buybacks with the staking rewards?

How is the complexity of what you offer reduced over just purchasing the tokens on my own?

With the closed nature of this project (no liquidity), it seems super risky with very little upside.

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And, further, why should I purchase coins on coinlist for $2 when I can purchase them for $1 on uniswap?

Thanks

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Hi @cbsense thanks for the questions. The purpose of StakerDAO is to create a community managed cross chain asset builder. In order to get there, we are working on launching a handful of projects and then will launch the governance token (STKR) that will be distributed to the community. Once STKR is live, the community will have a set of tools where they can submit ideas, vote on proposals, and fund them from the STKR treasury. I expect that to happen in the next month or so.

BLND is the first project that will be managed by STKR, but we also have wXTZ and wALGO launching in the next few weeks. So there is a much bigger picture here, and BLND is one part of it.

BLND itself is an Index token. It (should) track the value of the underlying assets (currently XTZ, ALGO, and ATOM). StakerDAO publishes a NAV (data.stakerdao.com) that shows the NAV and price per token. Currently that is $1.98 - which means that StakerDAO has locked $1.98 for every BLND in circulation.

What is missing, is a way for blnd holders to be able to exchange their BLND for the underlying value directly with StakerDAO. We do that in a small way with the monthly rewards auction, but not enough liquidity to let holders exit when they want. This is what is causing the Uniswap price to be lower than the NAV.

We have a solution for this coming. Coinlist registered holders will be able to exchange the BLND for the underlying value in USDC soon. Hopefully by the end of March. Additionally we have some new ways that holders will be able to put their BLND to work and increase yield coming soon as well, as it ties to the governance token. We will be announcing these elements soon.

I appreciate that BLND is a bit different than other projects, and I am hopeful that once the full set of products and features rolls out in the next month, you will have a clearer understanding of the value here.

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Yes, my hostility comes from the fact that this project seems to have a permanent on-ramp but no off-ramp. Without the off-ramp it just seems like a perpetual money collecting machine with only promises of possibly being able to exit via the buyback. Do you have a timeline for how long it will be before it’s possible to redeem BLND for the underlying? Would that be via coinlist or via the dao directly? Thank you.

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I understand your frustration. In the original architecture, we outlined a process where the governance process can authorize a redemption period at the NAV. As we thought about implementing this, it became apparent that we needed a programmatic way to exchange BLND for NAV fees, and that is what the DAO is building currently and will launch as soon as practical. I feel confident that 1) we will have this set of smart contracts ready to launch by the end of March and 2) that the governance process will authorize it.

I personally recognize that this is a gap in our deliverable for BLND and I hope we rectify it soon. Thank you for your patience!

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Note that this Blend exchange will only be available to addresses that have registered with Coinlist.

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By “distribute” do you mean that they will be given out - not sold - to the community?

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Yes. The goal is to distribute tokens to community members so they can govern the project going forwards. There will be no STKR token sale.

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Hi Jonas, if the BLND tokens are trading at a discount on Uniswap, should you be purchasing these and cost averaging the buying cost by the rest of the current holders down?

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Hi Greg. Once the BLND whitelist exchange launches, Coinlist registered BLND holders will be able to sell BLND back to StakerDAO at the NAV. I would presume that some of those holders will take the initiative to buy up underpriced BLND on uniswap and then sell them at NAV. So in general I think this architecture will remedy the discount we see on BLND on Uni currently. Does that answer your question?

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Thanks for the update Jonas! It’s exciting.

Question: “The goal is to distribute tokens to community members so they can govern the project going forwards”

Do you know who qualifies as “community members”?

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We can’t be specific quite yet on that. But generally we hope to engage people who are using our products and give them the ability to make those products better via governance.

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