I had looked more into it. Its definitely a mechanism I haven’t seen before.
It seems like you stake FLASH get rewarded 1 of 3 tokens depending on preference. It was mentioned the DAO earns yield. Seems the yield is from FLASH issuance repaying the debt over time to the DAO.
So the question becomes what’s backing the value of FLASH since I’d imagine if DAOs are using this for fundraising, they will dump their flash earned for spends, which then gets hopefully bought by users who want to earn project tokens through future staking. But it does set up the three DAOs to compete at dumping to some extent.
Normally staking the DAO’s own assets result in farming which is the DAO giving away its token, but this staking is productive for the DAO since it builds liquidity of its products. The DAO is giving away its token for the service of building liquidity.
With Flash the DAO is giving away its its token for an uncertain value of FLASH over time to Users who have no need to hold or provide services to the DAO.
On one hand, this means less loss to the DAO from a liquidity mining service. On the other, its not really a productive giveaway in terms of creating direct benefits for the DAO. Though it does form some form of Marketing service.
Maybe those new DOUGH holders will stake DOUGH? But what if they just insta sell?
So lets look at it from a marketing perspective. Other marketing drives may pay out DOUGH with less recouped cost. However these other marketing drives will likely include information, and educational material about PieDAO services.
Our growth plan includes metrics on performance. Are we able to apply metrics to this?
Is this form of marketing productive?
For reference uniswap market
atm ~$50k liquidity on market. ~$50k volume last 24 hours.