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image credit: @messhup
Nouns are an experimental attempt to improve the formation of on-chain avatar communities. While projects such as Cryptopunks have attempted to bootstrap digital community and identity, Nouns attempt to bootstrap identity, community, governance, and a treasury that can be used by the community. Degen Vibes are NFTs that stream DeFi tokens to holders in real-time. Degen Vibes are minted and sold via auction, one at a time. A portion of auction proceeds are invested in DeFi and streamed to collectors. A portion of proceeds are kept in the treasury, controlled by a DAO of Degens. The initial plan is for the auction cadence to settle at one per 24 hours after the first 50. But this ongoing cadence could be changed by the DAO if members vote to do so. Streamonomics refers to the tokenomics of streaming tokens to multiple recipients as an incentive mechanism. Inspired by OHM but with an infinite supply NFT collection with generative art on top of sudoswap liquidity? Sounds very Degen tbh
Planet Degen is dying due to neglect of the environment and overuse of natural resources. Climate change has caused severe damage and only 3,333 Degens remain as the only known surviving inhabitants. The Degens are now turning to on-chain carbon markets, specifically KlimaDAO, as a solution to fix the issue. They are also auctioning off their species, called Degen Vibes, on the Polygon network in WETH to raise funds for their survival. Proceeds from the auction are invested in DeFi to earn yield for Degen owners. Members of the Degen Vibes community, who are also members of the DAO, control the treasury and decide the future of the species through voting on proposals. The first two proposals include deploying modified contracts and reserving a percentage of the treasury to add liquidity to the VIBES/OHM pair.
Nouns are an experimental attempt to improve the formation of on-chain avatar communities. While projects such as Cryptopunks have attempted to bootstrap digital community and identity, Nouns attempt to bootstrap identity, community, governance, and a treasury that can be used by the community.
ELI5 of our proposed tweak: Degens auction NFTs, they issue tokens, they invest a treasury with on-chain governance! And they stream rewards to the NFT collectors. Inspired by OHM but with an infinite supply NFT collection with generative art on top of sudoswap liquidity? Sounds very Degen tbh
NFTs that stream DeFi tokens to holders in real-time. Degen Vibes are minted and sold via auction, one at a time. A portion of auction proceeds are invested in DeFi and streamed to collectors. A portion of proceeds are kept in the treasury, controlled by a DAO of Degens. The initial plan is for the auction cadence to settle at one per 24 hours after the first 50. But this ongoing cadence could be changed by the DAO if members vote to do so. Streamonomics refers to the tokenomics of streaming tokens to multiple recipients as an incentive mechanism.
Bids are submitted in WETH. When each auction ends, the auction is settled and the Degen is transferred to the winning bidder. The reserve price (minimum bid amount) is 0.05 WETH (subject to change). The time period for bidding varies from 2 hours to 24 hours. All bidders (including winners) receive VIBES tokens.
The WETH proceeds from Degen Vibes auction are immediately and automatically invested in DeFi and start earning yield for Degen owners. The WETH is invested in the "Best Yield" vault on Idle Finance. The current strategy for Idle WETH Best Yield is invested 100% in Aave V2 (Polygon). Idle tokens representing the vault shares are issued to the Degen Vibes contract. Distribution of proceeds is as follows:
50% for the past, 50% for the future :
50% is streamed back to past Degen collectors & artists. 10% is used for bootstrapping protocol-owned liquidity. (POL) The remaining 40% goes to the treasury, which is controlled by the DAO.
Planet Degen is dying. The inhabitants of the planet have neglected the environment and used up natural resources at an unsustainable rate for years. Climate change has caused coastal flooding, forests have become deserts, temperatures continue to rise, and air quality has become almost unbreathable. They call out on-chain carbon markets as one of the best ways to fix this shit. They are besties with KlimaDAO.
Most species of life have suffered from mass extinction. The only known surviving inhabitants are 3,333 Degens. But the Degen Vibes cannot survive for long on the surface. Their only hope is to descend, one by one, to the LTL Art Collective, the OG CLUB. The only entrance to the DegenVibes CLUB, deep below the planet's surface, is via an elevator that has space for only one Degen at a time.
As time passes, more and more Degens will join the CLUB, forming a DAA. Together the Degens must plan for the survival of the species. How to best use the limited supply of GOOD VIBES to sustain themselves? Can they develop tools and accessories to reverse climate change and heal the planet? Or should they develop spaceships and related technology, to embark on a space voyage in search of a new hOHM? And could the rumors be true, that some of the Ohmies have managed to survive as well? Members of the Degen Vibes CLUB will have to decide where the Odyssey goes from here...
Degen Vibes combine NFTs with DeFi. The degenerative art is inspired by Cryptopunks. The treasury aspect is inspired by Nouns. The DeFi and money streams aim to explore a new community that collides the worlds of NFTs and DeFi. Grab your Dog and join the Club.
Degen Vibes is powered by Superfluid, Uniswap, Chainlink, Compound, DAI by Maker, and hosted on Skynet. The website (dapp) are modified from Nounds DAO, as is the Auction House contract, which was itself modified from the Zora Auction House contract.
Deploy modified versions of the current contracts with Thirdweb deploy. In a perfect world, the dapp will be refactored in Next.js, TailwindCSS, and Typescript, and the V2 marketplace MVP powered by Reservoir can be integrated to facilitate secondary sales.
Reserve a percentage of the treasury to be used to add liquidity to the VIBES/OHM pair. The percentage of treasury needed is 20% of MarketCap. The V3 tokenomics of OHM, would make our treasury twice as efficient to build up treasury-owned liquidity to the VIBES token. Example: $100K could be used to pair VIBES with OHM, versus, setting up two $50K pools, one against ETH and one against DAI. OHM has $60M of liquidity on Balancer.
The Degen Auction Contract will act as a self-sufficient noun generation and distribution mechanism, auctioning one noun every 24 hours, as long as there are degens needing a new home.
Each time an auction is settled, the settlement transaction will also cause a new degen to be minted and a new auction to begin.
While settlement is most heavily incentivized for the winning bidder, it can be triggered by anyone, allowing the system to trustlessly auction degens as long as Ethereum is operational and there are interested bidders.
Degen Vibes is an experiment that combines NFTs and DeFi. The proceeds of each auction are sent to the treasury. That's when the Degen magic starts:
- The ETH from the winning bid is swapped on Uniswap for DAI The resulting DAI is then deposited in Compound Finance, and begins to earn yield
- A portion of the Compound tokens (cDAI) representing the deposits are then upgraded to "Super Tokens" in the Superfluid protocol.
- Then Degen Super Tokens then begin streaming -- every second -- back to Dog owners:
- 10% of of the proceeds of the auction stream back to the Degen Owner over the next 365 days. If the Degen is sold or transfered, the stream switches to the new owner.
- 40% of the proceeds of each auction are shared by all current Degen owners and streamed to them over the next 365 days.
- 20% of the proceeds for each auction go to the owner of the 10th Degen before this one. For example, 20% of the proceeds of the auction for Degen 11 will get streamed to the owner of Degen 1, over the next 365 days.
- In future, the Club may decide to change the DeFi investments and distributions in interesting ways.
Degen Vibes are currently on testnet. The plan for a mainnet launch would include a DAO to manage the Club and treasury. To start, this might be comprised of a small number of Degenfathers, with all Degen owners automatically joining the DAO. LFG
VIBES -- are ERC20 tokens issued to all bidders of Degen Vibes auctions, including both unsuccessful and winning bidders. VIBES tokens are issued at a ratio of 1000:1 based on the bid submitted. For example, a bid of 1 WETH would result in 1000 VIBES tokens. The apparent paradox between a capped supply and inflationary farming rewards is resolved by periodically halving the emission rate.
Degen Vibes owners are members of the DAO: one Degen equals one vote. DAO members control the treasury and decide the future of Degen Vibes. The goal is to design something that allows NFT ownership with real yield. The DAO may review buybacks to ensure the token trades in line with its treasury value, inspired by OHM reverse bonds, a market-driven version of buybacks.
Any member of the community can create a proposal on the Discord forum for discussion before being posted to Tally for a governance vote. The core team will be initially comprised of OG community members who are primarily responsible for facilitating off-chain processes. These can include but are not limited to, establishing a strategic vision, coordinating working groups to execute community-approved initiatives, and proposing strategic initiatives to the community via DIP.
They represent the brand DNA we cultivated over the past 25 years with LiveTheLifeTV. They showcase our passion for surf, film, photography, etc, ... These characters are playful, they appeal to our culture code, & they tap into our deep-seated love of DAOs, NFTs, and DeFi. They hold the visions of the Degen Vibes we enjoy. We generated a 10K collection based on the Nouns traits that are fully aligned with the LiveTheLifeTV brand DNA: surf, skate, wine, film, and photography. We tweaked the backgrounds with photography-based visuals, and color-graded them through a "multiply" layer.
Degen Vibes are degens in the same spirit as the Cryptopunks. We call it degenerative art.
Art Work may be submitted and voted on by the club, with winning artists earning a cut. Stay tuned.
cc0 places emphasis on our ability to communicate a story, build a world and bring others along.
The Nouns brand and artwork are in the public domain or “CC0″. This essentially means that you can do whatever you want with it without worrying about any kind of copyright infringement. Not only does the Nouns DAO allow you to repurpose the artwork and brand, but it actually encourages you do to so — and may even pay you for it! All the money generated from the Nouns auctions goes directly to the DAO treasury. The treasury currently holds more than 27,000 ETH. The treasury exists for Nouns DAO participants to allocate resources for the long-term growth and prosperity of the Nouns ecosystem.
The artwork for Degen Vibes was inspired by the pixel art of Cryptopunks. Degenerative art has some traits that are more than others. They represent the brand DNA and showcase our passion for surf, film, photography, etc, ... These characters are playful, they appeal to our culture code, & they tap into our deep-seated love of DAOs, NFTs, and DeFi. They hold the visions of the Degen Vibes we enjoy. We generated this collection based on the Nouns traits that are fully aligned with the LiveTheLifeTV brand DNA: surf, skate, wine, film, and photography. We tweaked the backgrounds with photography-based visuals and color-graded them through a "multiply" layer. We used a modified Hashlips repo to match the Thirdweb flow.
These Degens are just getting started. Possible next steps and additonal features include:
- Gas cost optimizations
- Feature: every 52 days, a prize from the treasury earned by a random Degen owner.
- Feature: a pre-auction tool where artists can submit Art and the community can vote on which Degns are minted to the collection (portion of proceeds to artists).
- Explore other DeFi options (OlympusDAO, JonesDAO, Dopex, Aave, Balancer, etc.)
- Explore and simulate incentivized tokenomics models
- Smart contract refinements to support fully decentralized operation
- DAO governance implementation (Tally Integration)
- Support for resale auctions in the dapp (V1/V2 marketplace mvp)
- Mainnet launch! 🐻⛓️ thoon
Degen Vibes is composed of two smart contracts and a front-end dapp that manages periodic NFT minting and auctioning Degens to the highest bidder.
The auction house contract is a modified version of the Zora Auction House contract. While the idea is for auctions to last 24 hours, minting one Degen each day, it is currently set to 10 minutes for development and demo purposes. Once the contract is deployed and initialized, it calls the ERC721 contract to mint a new Degen. At this point the Degen is not transferred to the Auction House but is held by the ERC721 contract pending the outcome of the auction. When the auction is over, a transaction to settle the auction triggers the transfer of the Degen to the winner and the transfer of the ETH proceeds to the ERC721 contract, which also acts as a treasury. That's when the DeFi starts...
The Degen contract leverages OpenZeppelin contracts to provide standard ERC721 functions, but also doubles as a treasury that not only holds funds, but invests them in DeFi and streams the result back NFT holders via Superfluid Finance. When an is won, the Degen contract transfers the Degen to the winner and receives the ETH proceeds. Immediately, the following is triggered:
- The Degen contract calls the Chainlink price feed oracle for ETH/DAI to get the latest price for DAI.
- Using the Chainlink data to set a reasonable slippage margin, the ETH is then swapped for DAI using Uniswap v3.
- The DAI is then immediately deposited in Compound Finance, where is starts to earn yield and COMP token rewards for the treasury. The contract now holds cDAI tokens representing the deposited DAI.
- A subset of the cDAI is then "upgraded" to cDAIx via the Superfluid protocol.
- Multiple streams of cDAIx being streaming -- every second -- back to the auction winner, and also to other Degen owners, according the following formula: 10% of auction proceeds stream back to the holder of that NFT over 365 days, PLUS 40% of the proceeds are divided among all Degen owners at the time, and streamed to them over 365 days, PLUS 20% of the proceeds are streamed to owner of the 10th degen prior, over 365 days (proceeds from Degen 10 stream to the owner of Degen 0, proceeds from Degen 11 stream to Degen 1, etc.)
- After 365 days, anyone can act as a "closer", and send a transaction to close the streams that are eligible. An instant (not streamed) reward equivalent to 30 days of flow is earned.
- When a Degen is sold or transferred, the streams are redirected automatically to the new owner.
The front-end dapp is hosted on Fleek decentralized storage. (Alternatively, the "Deploy to Skynet" Github Action can make deploying the dapp super-easy!)
The dapp primarily interfaces with the Auction House contract. User can connect their wallet, submit bids and settle auctions, which triggers the minting of a new Degen and starts a new auction. The dapp also displays the cDAI balances of the treasury and connected user, showing the real-time changes as funds are streamed out of the treasury to Degen owners.
The goal of the project is merge NFTs and DeFi in a way that hopefully provides some incentivizing tokenomics that could fuel an active community of Degen owners. A future feature could be a way for artists to submit new Art Works, and the community can vote for which Art will get minted as part of the collection, with a portion of auction proceeds streaming to artists. A governing Dog DAO might decide to change the investment and stream distribution strategies.
Because 100% of Degen Dog auction proceeds are split between streams to Dog owners, donations to charitable causes, and the DAO treasury, founder(s) are compensated with Degen Dogs. Every 11th Dog for the first year of the project (ids #0, #11, #22, #33 and so on) will be automatically sent to the dogMaster multisig to be shared among the founding members of the project. Founder distributions don't interfere with the cadence of auctions. Dogs are sent directly to the dogMaster Multisig, and auctions continue on schedule with the next available ID.
To submit a proposal to the DAO, you must hold at least 0.25% of the total Degen supply. This equates to 1 Degen up until the supply reaches 400 Degens. Examples of proposals include:
- funding Degen community projects
- compensating DAO members or 3rd parties for services that benefit the DAO
- investing treasury funds through onchain governance
A quorum is the minimum number of total votes -- whether for, against, or abstain -- needed for a proposal to succeed. The quorum threshold is 20% -- a value that can be changed by DAO. This means that at least 20% of minted Dogs (at the time the proposal was made) must submit a vote. Proposals that do not meet this threshold will not be executed, regardless of the number of votes for and against the proposal.
Voting can begin immediately after a proposal is created, although the DAO could implement a delay between proposal creation and the start of voting, if desired. The voting period is approximately 7 days.
A Timelock is a delay between the end of the voting period for a successful proposal and when the proposed transaction(s) actually can be executed. This delay gives DAO members time to react before execution. For example, a DAO member who is unhappy with a proposal may decide to sell their token or take other steps they deem appropriate. The timelock delay for Degen Dogs is 2 days.
The thresholds and time periods mentioned above are settings that can be adjusted by the DAO via proposals. For example, the DAO may decide to change the proposal threshold or the length of the voting period in future.
Initially, the Degen DAO governance grants veto power to the founder(s) of the project. A key reason is that, due to the one-at-a-time auction process, the total supply of minted Dogs is very low in the early days. This could enable a single person to execute successful proposals before the community has had chance to grow and develop. The goal is for the veto power to be renounced (on-chain) at the appropriate time -- feedback and suggestions are welcomed in this regard.
Tally provides a governance UI that DAO can use to submit and vote on proposals. Proposals and votes submitted via Tally get submitted on-chain to Degen DAO governance contracts and are subject to the above thresholds and time periods.
The Degen Treasury is contracts that holds the tokens of the DAO and executes the transactions approved by the DAO, after the timelock delay has passed. For these reasons, the contract can also be referred to a Timelock or Executor. The contract itself is based on the timelock/executor contract of Nouns DAO, which in turn is is a modified version of Compound Lab's Timelock. The "admin" of the Treasury is set to the DAO Governance contract, meaning that a successful governance proposal is required for all transactions.
Designed to ensure that there is always enough liquidity in the system to facilitate transactions as well as secure the network. Users are able to deposit assets into consensus vaults and receive an ERC4626-like receipt. Degen Vibes #1, the very first auction, will be used to add liquidity to the VIBES/OHM pair. Protocol Owned Liquidity allows for crypto assets to build a permanent, algorithmically deployed liquidity base for our VIBES/OHM pair.
The DAO treasury aims to own almost all of the liquidity of its token. This grants two major benefits to the DAO. Firstly, it grows the treasury value via the trading fees collected. Secondly, it allows for user security as there will always be ever-deepening trading liquidity for those that wish to increase or reduce their holdings.