The Hedgey protocol is enabling powerful partnerships between DAOs through locked token swaps.
DAO-to-DAO token swaps are a new way for DAOs to collaborate with each other. In doing locked token swaps, DAOs are able to use their native tokens to invest in other DAOs, which are in turn equally invested in them. This creates aligned interests and a strong foundation for future collaboration and partnerships.
In combining Hedgey’s token locking protocol and our D2D swap protocol, we’re creating a simple way for DAOs to invest, collaborate, and participate in the upside of DAO partnerships.
D2D swaps, through our UI or directly in your Gnosis Safe
In early August, Sperax and Layer2DAO launched the first D2D swap on Arbitrum using Hedgey. Each DAO swapped locked tokens (1 year) through the Hedgey protocol.
In addition to this being the first D2D swap on Arbitrum, it was the first D2D swap executed completely from within each DAOs Gnosis Multi-Sig wallet. This allowed the DAOs to execute a swap while avoiding any external wallet connections. Both of these are huge wins for the future of decentralized DAO token operations.
After countless D2D swaps between DAOs like GnosisDAO, Alchemix, Thales, Saddle, Sperax, Layer2DAO, and Agave, we built a dedicated DAO-to-DAO swap page making the process easier than ever. Our DAO-to-DAO swap app has it’s own Gnosis Safe app to make it efficient for DAOs to create and execute these powerful swaps directly from their multi-sig wallets.
Using NFTs as financial vehicles
When the Sperax <> L2DAO swap was executed, each DAOs tokens were locked in escrow contracts, with each DAO receiving a unique access key representing their ownership of the locked position.
To create this key, our protocol uses NFT technology, minting each DAO a unique 1/1 NFT that acts as a unique access key to the locked tokens allocated to the DAO. Each NFT has the optional ability to represent its token voting rights on Snapshot, maintaining the same voting rights as liquid tokens. To claim tokens after the unlock date, each DAO will redeem (burn) the NFT in exchange for the underlying tokens.
In addition to being a powerful DeFi primitive, using NFTs as financial vehicle adds a visual layer to otherwise invisible token positions. In the case of Sperax and L2DAO, each DAO received a unique PfP image NFT representing their locked token position.
Launch your own D2D swap.
Using Hedgey’s DAO-to-DAO swap protocol uses our audited DAO-to-DAO swap contract (which received a 10/10), and allows DAOs to swap locked or unlocked tokens without escrow.
Our article on our DAO-to-DAO swap launch walks you through the whole process of creating your own swap, and can be viewed below.
We’re pulling in tons of awesome DAOs into our Hedgey DAO Builders Alpha group. Hop in, introduce yourself, and get collaborating! You can also hop in our Discord and chat more with the team.
Documentation: