TeaDAO is A Metaverse Reserve Currency protocol based on $TEA token. Upgrading OlympusDAO’s “protocol-owned-liquidity” model, TeaDAO enables GameFi 2.0 by Solving the shortage of NFT liquidity.
What is TeaDAO?
TeaDAO is the first Decentralized Metaverse Reserve Currency for GameFi, offering instant liquidity for NFTs through the NFT-as-Bonding-Assets mechanism.
TeaDAO is an upgrade over OlympusDAO’s “protocol-owned-liquidity” model, utilizing 3 concepts: DeFi 2.0 + Metaverse + GameFi in order to enable GameFi 2.0 by addressing the shortage of NFT liquidity.
TeaDAO will be community-owned; TEA holders will decide on TeaDAO’s future via on-chain voting. At first, TeaDAO will operate on the BSC and Ethereum chain. Over 2022, TeaDAO will expand to become multi-chain.
What is the aim of TeaDAO?
There are three main aims of TeaDAO:
To become the first Decentralized Metaverse Reserve Currency for GameFi and beyond
Embracing OlympusDAO’s “protocol-owned-liquidity” model, TeaDAO wants to make it as easy, efficient, and fast as possible to manage your assets, lend/borrow, earn interest on staking, bridge between chains, launch new projects, and much more.
Beyond, we’re working continuously to upgrade the OlympusDAO’s model by creating more utilities for reserve currency when applying it into the GameFi context. GameFi has evolved into a thriving ecosystem of investors and thousands of daily users. However, the current GameFi economy is not prepared to meet the demand of the market when it has to deal with in-game token inflation and NFT illiquidity. TeaDAO will position itself as a financial center to facilitate the long-term development of the GameFi ecosystem through our NFT-as-Bonding-Assets mechanism, allowing GameFi projects to have a sustainable approach for incentivizing and rewarding gamers while balancing the net benefits for both current and new players.
To provide a fair, community-governed, financial infrastructure for stable and dependable growth
TeaDAO will be a fair and DAO-governed metaverse. Every citizen has the ability to act in their own best interests and has the full right to operate and contribute to the development of their own planet. All decisions are formed by community members on the forum and made by token holders through snapshot voting.
To provide long-term value to users
Every decision we make has long-term growth in mind. It is our mission to create something that can provide stable growth while also bringing out the best that GameFi, in particular, and blockchain, in general, have to offer.
Indeed, we are working hard to upgrade the current model of Reserve Currency by providing financial services for GameFi projects so that it can provide more long-term value to our users. GameFi is now a sustainable job as gamers are able to unlock a stable income by selling NFTs to earn TEA - the token price appreciates over time, backstopping the lost opportunity cost of HODLing illiquid NFTs.
The existing flaws of the GameFi Economy
Every GameFi project must incentivize and reward gamers - the only difference is how they do so. In GameFi 1.0, the old approach of rewarding in-game currency with an unlimited supply clearly harms both gamers and GameFi projects when dealing with token inflation. Furthermore, the most recent approach of rewarding gamers with NFTs raises the issue of NFT illiquidity. This creates high barriers to entry for new players and low motivation for current players to stick with the game in the long run.
Less stickiness for players
Gamers earn NFTs as rewards for playing games. However, once they have finished farming, gamers will find it difficult to sell their NFTs at the price they desire because the only way for them to cash out their NFTs is to list them on the P2P marketplace and wait for other people to buy. The illiquidity of NFTs will then decrease players' motivation to stick with the game.
High Barriers for new players
The GameFi protocol has no way of controlling the price of NFTs. The gamers who own the NFT have the right to sell it at any price they want through the P2P marketplace. As a result, it's difficult for new players to afford NFTs to play the game.
It is clear that a critical pain point in almost every GameFi project is the lack of a sustainable approach for incentivizing and rewarding gamers while balancing the net benefits for both current and new players.
TeaDAO as An Ultimate Solution
TeaDAO proudly introduces the first-ever NFTs-as-a-Bonding-Asset mechanism that allows GameFi to grow the ecosystem user base while scaling revenue accrual through more sustainable price-controlled NFT liquidity. GameFi no longer needs to follow the BTC/ETH narrative when it becomes a self-sustaining ecosystem.
TeaDAO allows GameFi projects to create an NFT Liquidity Pool by providing liquidity (stablecoins) into the TeaDAO treasury. These stables are used to mint TEA. Their users then are able to sell NFTs into the pool and receive TEA (which is backed by stables that the GameFi projects have poured into the treasury) in return. Once NFTs are sold into the pool, NFTs are under GameFi projects' control.
How does NaaBA create a Win, Win, Win for Everyone?
For GameFi projects:
Once the NFTs are sold into the pool, the projects now have full control over the NFTs. They can burn NFTs if they think that there are too many NFTs in their ecosystem, increasing their value.
If they think there is a lack of NFTs in their ecosystem, they will recycle the NFTs in the pool by re-introducing/ reselling the NFTs to their ecosystem at a reasonable price. New gamers could now more easily afford an NFT.
By using this service, GameFi projects will somehow be able to control the price of NFT. And by doing so, they will be able to lower the barrier for new players, increase their user base.
For Current Gamers: The NFT Bonding pool will allow them to cash out their NFTs faster. Gamers now unlock a stable income by selling NFTs to earn a scalable reserve currency.
For New Gamers: They will immediately benefit from the NFT price drop and be able to enter the game sooner, leading to increased cash flow. Everyone wins.