Roadmap

The Growth Phase: Building the treasury

DeFi has categorically shown that with good incentives, users can bootstrap their favorite projects by rapidly expanding adoption and building large protocol treasuries that (when coupled with sound protocol design) can generate yields greater than each user could generate individually.

This is often accomplished through farming and bonding mechanisms. During the PandoraDAO Protocol Growth Phase, we use staking and bonding strategies to build our treasury and incentivize user adoption.

During the growth phase, PDRAI will be emitted as rewards for bonds to provide incentives for user adoption of the protocol.

The total emission rate of PDRAI will be modulated to ensure that the pools are being sufficiently incentivized and driving protocol adoption. However, we believe that more inflation is not better, and we aim to do as little inflation as needed to build the protocol optimally during the Growth Phase.

To help with the rapid expansion of the treasury’s assets, we have adopted a similar bonding mechanism to that first innovated by Olympus Dao. Users can bond assets and will be vested PDRAI. Bonds will be offered at a discount of the PDRAI market price to provide yield to those that purchase them.

When bonds are purchased, the assets will be used to create various LPs (PDRAI-wETH, PDRAI-USDC, PDRAI-DAI) to build POL and generate sustainable yield without having to rely on an inflationary mechanism for yield generation.

The price of the bonds and vesting duration will be continuously evaluated to ensure the sustained expansion of treasury assets. So, keep an eye on the bond page. Generally, greater discounts and shorter vesting durations will be set during the early phases.

The Earning Phase

Once new user adoption and protocol growth have plateaued, the rewards rate of bonds will be slowly dialed down and ultimately stopped; this will mark the end of the Growth Phase.

To continue generating yield for PDRAI holders, protocol revenue will be paid out in rewards to those staked in the Staking contract.