About HAI DAMO
Hedge Against Inflation ( HAI DAMO ) is the first decentralized asset management organization (DAMO), providing exposure to the most dominant and promising projects in the crypto space. They achieve this by combining revolutionary DeFi mechanisms with traditional finance paradigms.
HAI DAMO is airdropping their new governance token “DAMO” to API3 stakers. The snapshot of API3 stakers will be taken on August 22nd, 2021 and stakers who were staking at least 18 API3 by the snapshot date will be eligible to receive free DAMO at a ratio of 18 API3 : 1 DAMO.
| Platform | Total Value | Max. Participants | Website |
|---|---|---|---|
| Polygon | 50,000 SKL | Unlimited | Click Here To Visit |
DAMO Protocol and Token
DAMO stands for DAO-operated Asset Management Organization. More plainly, a DAO that specifically governs the management of assets. In this case specifically, it is the management of the composition of on-chain ETFs. Governance will be achieved through the voting powers granted by ownership of the $DAMO token.
Collectively, the DAMO will control the parameters for portfolio allocations, holdings, stability fees, and liquidation ratios. HAI DAMO will be a fully operational DAO once they can prove through repetition that the governing smart contracts are robust enough to handle the responsibilities of the platform and an effective method for incorporating off-chain activities has been established.
HAI ETF Tokens
HAI DAMO Airdrop $HAI ETF tokens are collateral-backed crypto assets whose value represents a composition of other tokens. It is synonymous to a share of $QQQ or $SPY in the fiat market, although the method of capitalization is significantly different. After a user deposits collateral in a vault, they can withdraw up to 75% of their collateral’s worth in $HAI tokens. This method ensures that the value of each $HAI token is overcollateralized and thus ensures its base price at a minimum.
After $HAI has been generated, it can be used the same as any other token; held for gains, provided as liquidity, or traded on an exchange. Identical to other collateral-backed tokens, each $HAI ETF token is backed by an excessive amount of collateral which guarantees that the total value of collateral is always higher than the total amount of $HAI debt, thus ensuring the integrity of the price of $HAI.
Decentralized Governance
It is the nature of the ETF to optimize the relationship between volatility and exposure. In the fiat world, this is accomplished in a centralized manner by portfolio managers. We believe this traditional method to be inadequate when understood in the context of a market. A market price is purely a reflection of the aggregate information of all market participants, therefore we believe our ETFs should be ruled not by algorithms and quants, but rather by a collective consensus from all stakeholders.
DAMO Token Role in Governance
The $DAMO token is a representation of power in the DAMO Protocol. Owning $DAMO entitles a user to participation in ecosystem. This participation includes creating and voting on proposals, as well as being eligible for airdrops from partners.
DAMO Token
$HAI DAMO Airdrop will be released through liquidity mining events and airdrops over a 12 month period. $DAMO has a soft cap, meaning that there will be a static number of tokens released, but additional tokens can be minted and burned in the event of a surplus or deficit after a liquidation. The soft cap of 32 million tokens will always be the target supply that the protocol strives to maintain. This mechanism is nearly identical to that of MakerDAO. They believe this mechanism is extremely well balanced and proven, so therefore they are adopting it for protocol as well.
Conclusion
It is evident that a lack of maturity exists in crypto asset markets. Compared to other traditional financial instruments, crypto assets are the Wild West. HAI DAMO provides structure and legitimacy to crypto assets by creating robust investment vehicles through the market power of the collective, rather than that of a centralized institution. We are committed to building a trustless ecosystem to create and manage decentralized investment vehicles for the broader market. Decentralized asset management will prove to be a more sustainable investment strategy due to the ability for the DAMO to react to market changes and market sentiment in a proverbial instant. By catering to these underrepresented entities, HAI DAMO will gain a share of the trillion dollar institutional bounty.