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Read our article to learn more about MetisDAO:
BinaryDAO is a yield DAO that uses its treasury to bootstrap and invest in early-stage crypto projects, bringing premium DeFi yield to BYTE token holders. BinaryDAO uses its protocol-controlled value to reward its token holders with exceptional yields.
BinaryDAO is a longstanding partner of Metis and will support the Metis ecosystem. We have seen first-generation reserve currency protocols in the past whose goal is to grow their market caps and treasury from bonding. However, BinaryDAO is different as it utilizes its treasury to offer liquidity to high-quality DeFi primitives, effectively turning this DAO into an on-chain liquidity provider. BinaryDAO also farms the projects it provides liquidity for, and all the tokens it earns go to the treasury.
How it works
The DAO grows its treasury by investing and providing liquidity to the Metis ecosystem. Users can lock stablecoins to mint BYTE tokens and stake $BYTE to access the yield generation managed and optimized by the BinaryDAO experts. The partnership with Metis has led to a profit-sharing model, which ensures that those who stake for more extended periods on the protocol benefit the most.
Who needs BinaryDAO?
- DeFi users: With the introduction of new products daily, it is difficult to understand the space. This is not 2010–11 when people would tell you to buy 1BTC and wait five years to sell. As the DeFi space matures, risks are rising while the reward ratio goes downwards. Users can earn by holding or staking BYTE tokens. BinaryDAO’s team evaluates projects to ensure they give their investors the best returns.
- DeFi protocols: Having enough liquidity has been one of the biggest challenges for DeFi protocols. These protocols must get liquidity to bootstrap and sustain their ecosystems. You will also find that the liquidity is usually non-sticky, fragmented, and quickly hops from one protocol to another in pursuit of yield. BinaryDAO has partnered with native projects to provide liquidity and offer seed investments.
$BYTE is the native token in the BinaryDAO ecosystem. The token has two roles; governance and yield. BYTE token does not have a fixed supply; 1 $BYTE is minted for every USD 10 used in the treasury.
Users can earn $BYTE through staking or buy through the mint function. About 15% of all BYTE tokens will go to development to ensure rapid innovation and growth.
Most tokens are inflationary and have fixed emission schedules that may not align with the project’s progression, leading to potential dilution. $BYTE has unique tokenomics that aligns emission directly with protocol earning, making it a non-inflationary token. New tokens can only be created through:
- Staking. Users can stake $BYTE long-term and earn a passive income from Metis. Chances of dilution for existing buyers don’t exist since new BYTE tokens are only created based on the protocol’s earnings.
- Minting. A user can mint new BYTE tokens by locking stablecoins slightly lower than the $BYTE market price. BinaryDAO’s treasury is strengthened through minting, increasing the protocol’s overall earning potential. The new tokens are minted close to the market price, meaning no inflation.
BinaryDAO Public Sale
BinaryDAO held its public sale in mid-March 2022 and had clear objectives. The sale was as follows:
- Presale (250k BYTE) at $2
- NFT Sale (250k BYTE) at $3
- Public Sale (2m BYTE) $4.5 [due to fully subscribed sale on bonding curve from $2-$4.5]
The total circulating supply of $BYTE is around 2.5 million. The total supply released is about 3.2 million, with about 480,000 locked for development and 222,000 locked in an LP in treasury. After the public sale, 2.72 million $BYTE was scheduled to be minted to go to the community, with a protocol-mandated 15% allocation for development. The 480,393 $BYTE (15%) will be locked and vested with a 6-month lock and linearly vested for over two years after the unlocking to avoid dumping and price manipulation.
The team at BinaryDAO is now making yield mechanisms for BYTE more direct through these changes:
- Yield mechanism for BYTE will now be a combination of BYTE bought back from treasury earnings plus newly minted BYTE tokens based on treasury earnings.
- Several factors such as bond issuance, staking percentage and treasury earning will determine the ratio of buybacks vs mint.
- The team is getting rid of CODE token and all the staked BYTE positions will not be transferable.
A public sale of the Bits Collection NFTs was held between March 4 and March 7, 2022. There will only be 2,500 NFTs, and they were offered at a mint price of 300 $m.USDC. A snapshot of NFT holders was taken on March 17, and BinaryDAO airdropped them 100 $BYTE for each NFT held.
Once the protocol goes live, these NFTs will also act as utility NFTs. Holders will be able to stake these NFTs and unlock a boost to the APY of the BYTE tokens they have staked. Although, the boosted APY feature will be limited to 1 NFT per wallet.
Users with more than one NFT can trade the extras on marketplaces, such as TofuNFT, among other compatible platforms to be listed later.
Reserve currency protocols such as BinaryDAO are an important addition to the Metis ecosystem. All BinaryDAO public sale events have sold out, indicating strong interest and confidence in this project.