On March 31st, NodeDAO, a decentralized insurance platform, announced that it had obtained the strategic investment of Lingda Capital Trust. Both parties plan to carry out in-depth cooperation in the business field to jointly expand the ecological development of blockchain finance. Lingda Capital Trust is an investment fund based on the market value of its bitcoin. At present, it has developed into one of the largest cryptocurrency asset management investment companies in the world, aiming at promoting the technological progress of blockchain by fostering high-quality encryption projects.
What is NodeDAO
NodeDAO builds a DAO-oriented vault for fund investors to gain revenue while providing risk support services for worthy projects while gaining corresponding reasonable revenues.
As the core of NodeDAO, Vault is a DeFi 2.0 repository to deposit various assets such as LPtoken, mainstream assets and stablecoins to gain revenues by investing in farming and supporting valuable projects. Such revenues will be distributed to NEI holders by way of DAO governance.
This is to say, NodeDAO is owned by NEI token holders and is governed, meanwhile it is responsible for providing the capital behind the insurance. As the asset maintaining the system, NEI tokens represent community membership rights, which allows users to purchase insurance, participate in claims assessment, risk assessment by way of pledging (staking) and participate in community governance, etc.
NEI is a native token of the NodeDAO insurance protocol, which can only be minted or destroyed by the protocol, and the holders have the right to vote on new developments and changes to the protocol. NEI is backed by a basket of assets in the vault, and every 1 NEI is backed by crypto asset worth of 1 USDT, without being hooked. Since each NEI in the vault is backed by at least 1 USDT, when the price of the NEI falls below 1 USDT, the protocol will buy back and destroy the NEI. NEI can always be traded at a price higher than 1 USDT, providing holders with huge space for appreciation, but of course the price of NEI is still ultimately determined by the supply and demand of the market.
The funds in the vault are governed by a protocol, and NEIs can only be minted or destroyed by the protocol. When the price of the NEI falls below 1 USDT, the protocol will buy back with the funds held in the vault and destroy the NEI. The vault will work with various protocols, and initially NodeDAO will launch an insurance product. The premiums for insurance are one of the sources of assets for the vault. In the future, the vault will be financed by more cooperative projects, however, all vault funds will be used only to support NEI asset prices.
With the increase in vault revenues, the supporting price of 1USDT will also increase, thereby contributing to the appreciation of the NEI price.
NODEDAO ADVANTAGES
1. PROJECT TOKEN NEI
NEI mainly comprise several parts: first is that NEIs to be issued additionally after the purchase of bonds by users, which are used to incentivize NEI’s Stake; the other part is tokens repurchased from project revenues, which reduces the amount of NEI in circulation in the NEI market and fuels the NEI price increase in favor of NEI token holders.
2. INNOVATIVE INCENTIVE METHODS
The majority of the relatively popular yield farming projects previously rewarded their holders by issuing additional tokens, which inevitably caused massive sell-offs, making it difficult to maintain a stable price and even leading to the premature collapse of the project. NodeDAO has abandoned the traditional approach of additional issuance and farming to incentivize liquidity, and has adopted a discounted sale of NEIs to obtain liquidity LPs (with a five-day lock-up period) to gain liquidity. When it is necessary to incentivize liquidity, NodeDAO will open a discounted NEI sale event, where users are allowed to buy project tokens at a discount through liquidity LPs. The liquidity LPtoken of the user will be deposited in the vault, increasing the liquidity of the tokens while avoiding the econnoisseur and profit-taking dumping.
3. SUPPORTS OF MORE MAINSTREAM ASSETS
NodeDAO will also launch more discounted purchases of other tokens based on the willingness of the community to vote. For example, users purchase NEI at a discount through mainstream and stablecoin assets such as ETH, DAI and USDC.
4. PROJECT REVENUE DISTRIBUTION
The NodeDAO project revenues are mainly derived from the revenue shares of partner projects. These revenues will enter the vault. A total of 50% of the funds will be used to purchase NEIs to be deposited in the vault; the remaining 50% will be deposited in the vault as a reserve, and when the pool becomes insolvent, etc., the pool will be prioritized for capital injection through the reserve. In addition, if the project continues to be profitable, the reserve fund will also be paid out to the NEI holders after the DAO is passed.
5. Rights and Interests of NEI Holders
Users with NEI have governance rights over NodeDAO and can vote on all proposals for the project.
Media contact
Contact: Edwin Borch
Company Name: Blockmove Technology co.,ltd
Address: 16 Sandilands Road, Singapore, 54600, Singapore
Phone: +65 57886341
Email: kqhiin@hotmail.com
Website: https://nodedao.io/#/
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Source: Panda News
Release ID: 219709
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