TeaDAO
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Creating Value
The protocol generates value through Bonds and Staking.

The Treasury

The Treasury is the multisignature-protected safe in which we keep the majority of the stablecoins and volatile coins owned by the DAO. The treasury is used for a few main purposes:

Inflows

Bonding

Bonding is one of the ways in which TeaDAO generates profits. The protocol will sell bonds of other tokens like DAI for discounted TEA tokens, which will then be vested for gradual release to the bonding party. This allows full-time users to actively manage their TEA portfolio and generate significant rewards over time whilst also supporting the growth of the TeaDAO by financing its liquidity and facilitating upwards price movement.

Trading Fees

Certain features within the TeaDAO Ecosystem like Bond-as-a-Service and NFT-as-a-Bonding-Asset will generate trading fees from their use. These fees will in part go to the treasury.

Investment Returns

The returns from investments are owned by the treasury.

Outflows

Investments

Whilst investments remain in the treasury, it's relevant to list them as a 'temporary outflow' since they are being converted from stablecoins (risk-free) to other coins (volatile).

Buyback

TeaDAO employs an auto-liquidation mechanism, which has been incorporated into the source code and operates automatically. Users can deposit $TEA into the treasury and receive backing assets in return when the open market price of $TEA is lower than the backing price.

Staking

Staking is an integral part of the TeaDAO. Users will stake their TEA, locking it into the ecosystem and receiving compounding rewards in sTEA (which will always be exchangeable for TEA at a 1:1 ratio) generated by bond sales. Over time, the amount of TEA owned by stakers will increase, bringing more profit and reducing exposure risk. Staking TEA becomes less risky and more profitable over time since an increasing share of TEA will protect investors from negative price action.
Staking locks your TEA and gives you an equal balance of sTEA, which compounds automatically. To unstake, sTEA is burned for an equal balance of TEA.

Revenue Mechanic

Phase 1: For the first month,
  • 50% of reward tokens are used as a staking reward.
  • 40% will be used to provide single-sided liquidity to GameFi pools. The decision to allocate liquidity to which GameFi pools and how much liquidity to allocate will be made by veTEA holders through voting. The trading fee will be distributed to veTEA holders based on the pool for which they voted.
  • 10% will be distributed to Team. Once Phase 1 ends, the Team will receive rewards from staking and other activities similar to regular holders.
Phase 2: After one month,
  • 50% for staking reward
  • 50% for single-sided liquidity