While we have released some information on Apollo DAO and what we are looking to achieve, we would like to take this opportunity to thank our community for the huge amount of support they have shown despite the limited information available. If you are new to Apollo DAO, please check out our Introducing ApolloDAO post.
Apollo DAO is predominantly known for its auto-compounding vaults based on Terra (which we demonstrated for the Terra Delphi Hackathon) and these will be the first products we launch. However, this is only the beginning of our journey to creating a holistic cross-chain Yield Optimization and Automated Treasury Management Platform. More details will continue to be released on this in due course.
At Apollo, we are extremely bullish on Terra, as well as a number of other layer 1 blockchains, such as Solana, Cosmos, Polkadot and Ethereum and believe there is massive potential in a “multi-chain” future. We believe blockchains will build towards specific specializations and seamless communication and bridging will be constructed across each of them. To this end Apollo DAO will be building the tools and products aimed at supporting and driving the adoption of these chains. Beginning with Terra, we have highlighted several areas, from our own experiences that we believe could benefit from new and improved tools and products, to support both projects and individuals as well as the growth of the overall Terra ecosystem.
Dual Treasury Model
Before we can address the why in what we are building and what our long term vision is we need to highlight our dual treasury model and how it will benefit our community of token holders. More detailed information will be released in due time, but we can provide a brief overview for now.
The Apollo DAO Treasury will be managed by the Apollo DAO team and will be used to fund sufficient runway for the continuous development of the platform and various products.
More significantly, we will also build out the Apollo DAO Warchest which will receive 99% of the platform’s revenue (1% of revenue will be donated to Angel Protocol). The Warchest will be an actively managed fund governed by token holders whilst simultaneously accruing fundamental value back to the token.
Initially the Warchest will comprise a mix of staked Luna and aUST with increasing governance power given to our token holders on how to deploy this capital. Initially we will focus on simple opportunities to seek yield across the Terra ecosystem such as yield farming. We believe this strategy minimizes risk whilst capitalizing on a number of great opportunities, such as farming mAssets and MINE tokens as well as future opportunities with ORION and LOOP. It is our assumption that considering the pipeline of projects currently building on Terra these investment opportunities look set to explode.
As the Warchest grows we will increasingly look for new opportunities, whether it is investing in private/ seed rounds to help other builders in the space, or deploying capital onto other chains such as Solana and Polkadot. We would advocate that Apollo DAO will become the perfect partner for other builders as we will be able to bring the knowledge and experience of our team, our backers and our community.
What Does This Mean For Our Community?
With this in mind, Apollo DAO will be launching a 3 year bootstrapping campaign for our Warchest by distributing 50% of all Apollo tokens to our community in return for staking assets and generating yield on our platform. A percentage of the yield on our various products will go towards the Warchest while the remainder will be auto-compounded back into the user’s staked assets.
This means that by using the various yield products on the Apollo platform users will not only earn yield on the underlying LP assets but also additional yield in the form of Apollo tokens. Token holders will then have the power of governance to create proposals and vote on how best to deploy the Warchest.
Effectively, Apollo token holders will be part of the first decentralized asset management fund built on Terra. Our ultimate aim is to maximize the value of the Warchest, both by deploying capital to the Apollo platform as well as through making smart capital allocation decisions.
Despite only being around for a few months we have already built a strong and diverse community which we are grateful for. We will look to continue to grow and reward the community to ensure we can leverage their expertise in finding and benefiting from the best opportunities available to deploy the Warchest.
We will be releasing more information on our upcoming products shortly, but if you are looking to get involved with Apollo DAO the best place would be to join our Discord.
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