Metaverse Backup Protocol
DAO values are organizations to realize and implement very significant changes in the application of economic theory. This shift can be expressed in the following way: in the digital economy, the economic forces of demand versus supply are generalized to the forces of internal coordination versus price coordination . Supply and demand is only concerned with price coordination, while entrepreneurship/self-organization (which is outside of neo-classical price theory) is concerned with internal coordination. The internal coordination theory framework is able to explain economic productivity and intrinsic value in the digital economy , as distinguished from more specific materialeconomy. Internal coordination is still under-appreciated as a form of economic productivity, especially regarding the digital economy. Internal coordination is separate from the forces of supply and demand, and it is this that balances or regulates supply and demand. Thus, this is what motivates self-correction and natural self-regulation by market participants themselves from within the market. The market needs a human being, an entrepreneur, to recognize and solve existing coordination problems, beyond the price mechanism. This happens through the negotiation of social norms. Markets are only self-regulating and self-correcting insofar as common sense norms are negotiated and shared by day-to-day participants, through internal coordination. The dynamics of internal coordination versus price coordination was first articulated in transaction cost economics, by Ronald Coase in his essay The Nature of the Firm (1937), and later by Douglass North in Transaction Costs, Institutions, and Economic Performance (1992). Transaction costs are essentially the extra-monetary communication costs of operating in the marketplace. They include the costs of planning, deciding, and deliberation. Fundamentally, transaction costs reflect normative rules that govern themselves and regulate market activity internally.
How does it work?
At a high level, Value consists of a protocol-managed treasury, protocol-held liquidity (POL), bond mechanisms, and wagering rewards designed to control supply expansion.
The sale of bonds generates profits for the protocol, and the treasury uses those profits to print $VALUES and distribute them to stakeholders. With liquidity bonds, the protocol can accumulate its own liquidity. See the entry below on the importance of POL.
What is Value?
Values is the Metaverse Reserve Protocol on the Polygon Network based on the $VALUES token . Each $VALUES token is backed by a basket of assets (e.g. MAI, FRAX) in the Value treasury, providing an intrinsic value that cannot fall below it. Values Protocol provides the possibility to support NFT tokens to treasury liquidity. Value introduces economic dynamics and game theory to the market through betting and bonding.
The partially forked value for OlympusDAO with its own twist applied to NFT Bonding for the metaverse space and based on the Polygon network.
How can I profit from Value?
The main benefit for stakeholders comes from supply development. Beavers reap new $VALUES tokens from the repository, most of which are passed on to stakeholders who desperately need the $VALUES tokens they advertise. Furthermore, the gains for stakeholders will come from their automatic strengthening equilibrium, but value openness remains a significant consideration. That is, assuming the increase in the symbolic equilibrium outperforms the expected decrease in costs due to the expansion, the stakeholder will create a profit.
The principle benefit for bonders comes from the consistency of values. Bonders deliver capital openly and are guaranteed a reasonable return at the appointed time; the return is in $VALUES and in this way the bonder’s profit will depend on the cost of $VALUES as the bond grows. Bonders benefit from rising or static $VALUES fees.
What is Value for?
Our goal is to build a policy-driven liquidity system for the NFT metaverse space, where the behavior of the $VALUES token is controlled to a high degree by the DAO. In the long term, we believe this system can be used to optimize stability and consistency so that $VALUES can function as a global unit of account and medium of exchange currency in a decentralized metaverse. In the short term, we intend to optimize the system for growth and wealth creation.
How do I participate in Values?
There are two main strategies for market participants: staking and bonding . Stakers share their $VALUE tokens in return for more $VALUE tokens, whereas binders give out LP or MAI tokens in exchange for discounted $VALUE tokens after a fixed vesting period.
How can I benefit from Value?
The main benefit to stakeholders comes from supply growth. ValuesDAO harvests new $VALUES tokens from the treasury, most of which are distributed to stakeholders thanks to the $VALUES tokens they offer. As such, the profits for shareholders will come from their automatic pooling balances, although price exposure remains an important consideration. That is, if the increase in the token balance exceeds the potential drop in price (due to inflation), the stakeholders will profit.
The main benefit for bonders comes from price consistency. Bonders provide upfront capital and are promised a fixed return at a specified point in time; the return is in $VALUES and thus the bonder’s profit will depend on the price of $VALUES when the bond matures. Bonders benefit from rising or static $VALUES prices .
Who creates Value?
Values is an offshoot of OlympusDAO with a twist applied to the NFT space on the Polygon Network that will help other projects build a decentralized metaverse. Our core team has combined experience in computer science, cryptography, economics and design. Followed by years of experience in crypto. We prefer to remain anonymous for the success of this project because of our goal to be a Decentralized Autonomous Organization.
Who runs Values?
Currently, most decisions are taken by the core team, but we hope to turn it into a DAO regulated model as soon as possible with your help!
What’s at stake?
Staking is the main value accrual strategy of Values. Stakers stake their $VALUES on the Values website for rebase rewards. Rebase rewards come from the proceeds of bond sales, and may vary based on the amount of $VALUES wagered in the protocol and the rate of return set by monetary policy.
Staking is a passive long term strategy. An increase in your stake of $VALUES translates into a cost base that continues to fall and converges to zero. This means that even if the market price of $VALUES falls below your initial purchase price, with a sufficiently long betting period, the increase in your $VALUES bet balance will eventually outweigh the decline in price.
When you stake, you lock in $VALUES and receive the same amount of sVALUES. Your sVALUES balance is automatically rebase at the end of each epoch. sVALUES is transferable and therefore can be composed with other DeFi protocols.
When you cancel a bet, you burn sVALUES and receive the same amount of VALUES. Unstaking means the user will forfeit the upcoming rebase reward. Note that canceled prizes only apply to the amount not wagered; remaining VALUES staked (if any) will continue to receive rebase rewards.
What is a bond?
Bonding(1,1) is a secondary value accrual strategy of Value. This allows Values to obtain its own liquidity and other reserve assets such as LUSD by selling $VALUES at a discount in exchange for these assets. The protocol quotes the bonder with terms such as the price of the bond, the number of $VALUES tokens entitled to the bonder, and vesting requirements. Binders can claim multiple rewards ($VALUES tokens) when they vest, and at the end of the vesting term, the full amount will be claimable.
Bonding is an active short term strategy. The secondary bond market price discovery mechanism makes bond discounts more or less predictable. Therefore bonding is considered a more active investment strategy that must be monitored continuously to be more profitable than staking.
Bonds allow Value to accumulate its own liquidity. We call our own liquidity POL . More POL ensures there is always locked out liquidity in our trading pool to facilitate market operations and protect token holders. Due to Values being its own market, in addition to the added certainty for $VALUES investors, the protocol derives more revenue from the LP rewards that strengthen our treasury.
- 1.1 Bonds is the process of buying 1.1 Common bonds
- Users can exchange selected tokens (usually stable coins like DAI and USDC) or live LP pairs with the Protocol in exchange for discounted $VALUES tokens.
- This allows the Protocol to build a stablecoin reserve that helps develop the project and allows us to offer attractive APYs.
- In return, Bonders will receive a linearly discounted supply of $VALUES tokens that can be redeemed and staked or traded.
4.4 Bonds are very similar to (1,1) bonds with some differences
- The payoff for the 4.4 bond is paid in sVALUES(stake $VALUES), not $VALUES
- The Complete Value of 4.4 bonds is at stake, not separated into epochs
- Your rewards increase as they are given, meaning you don’t have to risk them, after claiming them
- The bonds have a vesting period of 5 days and you can claim at the end.
- The percentage shown in the sidebar is the ROI (Return on Investment) after 5 days and not a discount.
- The percentage details are displayed on the bond page
- In the example below the ROI is 12.28 = 0.70% (discount) + 11.58% (Rebase reward on complete amount)
Note: When you earn sVALUES, you get rebase rewards even if you don’t claim them.
Claiming simply transfers sVALUES from the contract to your total bet amount.