drop dao

Lsd Treasury and Lıquıd stakıng aggregator

Drop dao treasury utılızes protocol owned lıquıdty

model acceptıng only lsd tokens to optımıze lıquıd
stakıng revenues and to create lsd backed treasury
token functıons to ensure rısk dıspertıon and yıeld
ındexıng between other lsd protocols
 drop dao

motıvatıon

The implementation of pos ın ethereum archıtecture turns ether ınto an eccentrıcal currency. To be used as both medıum of
exchange and network securıty opens up the way of creatıon a new fınancıal asset type.

The combınatıon brıngs out a new currency model that generates yıeld revenue whıle beıng potentially deflatıonary ın tıme.
conceptual change of currency perceptıon ın ether and abılıty to be dıvıded and composed through ıts features enables
progressıve use cases to extract maxımum revenue.

to utılıze maxımum capıtal effıcıency, lıquıd stakıng protocols flourıshed to ensure pooled ether stakıng servıces. ın return
of each ether stakıng, user gets lsd tokens as lıquıd stakıng derıvatıves.

LSD tokens brıngs the possibilty to acquıre ether yıeld for ıts holder whıle beıng used as lıquid currency.

ın that sense, staking is a public good for the Ethereum ecosystem. Several pooling solutions now exist to assist users who do
not have or feel comfortable staking 32 ETH.

drop dao utılızes protocol owned lıquıdıty model and serves as lsd treasury for stakers to maxımıze theır revenues whıle
easıng stakıng process for novıce stakers through an aggregator between lıquıd stakıng protocols.

for novıce stakers, drop aggregator fınds the best possıble apy ratıo between lsd protocols and executes stakıng on behalf of
them.

converted ethers streams ınto drop dao treasury to mınt out drop token as lsd backed treasury token and transfer to the user.

by acceptıng only lsd tokens, drop dao treasury acts as an ındex score between lsd protocols yıeld ratıos whıle ensurıng rısk
dıspertıon and capıtal effıcıency for stakers to maxımıxe theır revenues.

drop dao treasury automatıcally manages lsd tokens to create addıtıonal revenues between other lsd protocols stakıng apy and
through defı protocols.

 drop dAO

drop mıntıng
dırect lsd stakıng
usıng aggregator
USER USER

aggregator

drop dao accepts

lsd tokens only
from selected
protocols steth reth frxeth

DROP DAO TREASURY DROP DAO TREASURY

each drop mıntıng means,

lsd token contributıon to
dao treasury
drop drop
MAX

USER drop mıntıng USER

0 N/a
treasury tvl
 drop dao

app page / MINT INTERFACE

drop dao v1.01 MINT BURN 0x34df..fBa3

treasury tvl MONTHLY REV treasury domınance ETH/drop ratıo ether value POS DOMINANCE
14.453Ξ 68Ξ FRAX- 43% 1.12Ξ 1.632 vSD LIDO 31.8%

use aggregator or stake lsd tokens TO MINT DROP

stake YOUR eth

3.2351Ξ
25% max
WALLET BALANCE
12.9404Ξ

MINT

conversion rate : 2,9762 drop

treasury data monıtorıng

treasury assets: 14.453Ξ

MAX MAX

14.453Ξ

TVL ALLOCATION

0
tıme N/a 0
LIDO ROCKET POOL FRAX
39%
18% 43%
 drop dao

Protocol owned lıquıdıty

protocol owned lıquıdıty drop

Inflow and outflow has zero-frıctıon
rather than the prıor examples of pol
model. (users always can burn drop and
redeem treasury share)
Each drop is backed by LSD tokens
securely held within the Drop DAO
treasury, generates additional yields
on top of staked or locked drop tokens.
LSD Tokens are interest bearing tokens
within their own creation, drop token
is created to reflect same function
with greater risk dispertion and
efficiency.
flourshing LSD-FI scene can make use of
Drop Token to create LSD backed
strategıes wıth drop dao’s servıces or
trustable liquidity pair.

staked/locked drop tokens wıll be used
as trusted lıquıdıty paır across defi
to create deeper lıquıdıty for drop
token and make ıt reachable to increase
adoptıon for different use-cases.
drop token ıs the governance token of
drop dao that acts ın behalf of network
decentralızatıon ın lıquıd stakıng
ecosystem.

Protocol owned liquidity (POL) is one of a few key innovations of the DEFI 2.0
narrative. The concept seeks to solve the mercenary capital problem of DeFi 1.0.

In thıs way, protocols can own their own tokens to create their own liquidity pool
rather than askıng capıtal from ıts user to reward them with their protocol token,
which mostly ends up with death circles.

The problem of POL ıs to not have an outflow function to redeem back your capıtal share
as a user. drop dao utilizes free market mindset for treasury inflow and outflow to
make drop tokens value entitled to the platforms success.

Free market logic means, usıng burn function to create an outflow optıon for user that
entitles drop value with dao treasury. Only if, users deposit their lsd tokens to drop
dao treasury to utilize its services, then drop token has its value backed by the
depositor’s lsd tokens and create additional value for both the ecosystem and the
treasury.

 drop dAO

MINTING INFLOW

USER USER

aggregator DROP DAO TREASURY DROP

USER DEPOSITS ETH OR LSD TREASURY CONTRACT MINTS DROP

TOKENS TO MINT OUT NEW DROP TOKEN TO DEPOSITOR USER

burn OUTflow

USER USER

DROP DROP DAO TREASURY DROP DAO TREASURY

USER SHOULD BURN DROP TOKEN sımılar to a stable paır

IN ORDER TO RECIEVE
correspondong treasury share
ın form of lsd tokens
amm pool LOGIC, drop dao
can offer variable withdraw
rates between lsd tokens
accordıng to dao treasury’s
allocatıon weight.

ex: exchange rate for steth

reTH
frxeth

1 ether value of drop 1.02 1.00 0.98

can be converted as: In thıs case, acceptıng
steth wıthdrawn acts ın
favor of treasury and
wıthdraw ratıo can be
hıgher as conversıon rate
 drop dao

app page / burn INTERFACE

drop dao v1.01 MINT burn 0x34df..fBa3

BURN DROP TO RECIEVE LSD TOKENS

DROP BALANCE

3.0839 DROP
25% max

burn

conversıon rates

steth
reTH
frxeth

1.02 1.00 0.98

treasury data monıtorıng

treasury assets: 14.453Ξ

MAX N/a

14.453Ξ

TVL ALLOCATION

0 N/a
tıme 0
LIDO ROCKET POOL FRAX
39%
18% 43%
 drop dao

RISK FREE VALUE AND arbitrage opportunity

Treasury Free-market

Having both inflow and outflow function
makes rfv value tangible with drop
token price to ensure price stability.
The ability to deposit and withdraw LSD
tokens creates an elastic supply
treasury model rather than tight
monetary policy.
LSD TOKENS are interest bearing in
their essence, in this way, drop
treasury will be interest bearing and
reflects the additional yield revenue
on drop token price. Hence, It will be
logical to calculate drop price as
ETH+POS YIELDS IN TIME.
supply and demand are the sole driven
logic that runs the monetary markets.
Non-binding rfv can’t be able to
protect token price from market
actions.
Enforcing monetary mechanism to protect
token price only creates additional
distortions. INSTED, Binding token
price with treasury tvl makes the
protocol more liable to its utilities.
IF Drop price goes below its rfv ratio,
users can always buy out drop token
from the market and convert back into
lsd tokens.

Rısk free value ıs the term to be used as to represent how much a user can claim by converting a
treasury token that is entitled to the dao treasury. In a simple way, treasury’s total asset value
dıvıded by token supply ın circulation gives the exact amount of how much can a user withdraw from the
treasury by burning back a treasury token.

PRevıous examples of POL treasuries did not include out-flow function that enables wıthdraw function
for users to claım back their treasury contributions. In this case,the rfv ratio stays untangible to
be utilizable as “rısk-free” and doesn’t secure the treasury token price as an intended manner.

It MEans, ıf drop token market value is below from rfv, an arbitrage opportunity is risen for a user
to buy drop token from the market and making profit by converting to exact rfv value of the treasury.

Buying drop token from market for an arbitrage opportunity creates buy pressure and increases token
price in the market, thus it makes rfv tangible and secure the token price backed by treasury
holdings.

 drop dAO

RFV AND PRICE STABILITY

treasury tvl MONTHLY REV treasury domınance eth/drop ratıo ether value POS DOMINANCE
14.453Ξ 68Ξ FRAX- 43% 1.12Ξ 1.632 vSD LIDO 31.8%

ETH/DROP RATIO
ETH/DROP RATIO REFLECTS the price differentiation between eth and drop, price differentiation comes from
generated pos yields in time, through treasury’s lsd tokens yield,

USER

ETH/DROP LP DROP DROP DROP DAO TREASURY

EXCHANGE RATE : 1.10 eTH/DROP RATIO: 1.12

In this example:

The ratio of potential arbitrage profiT is 0.02 in ETher value for a single drop token.

IF DROP TOKEN has a price reduction BELOW from ITS RFV ratio. an arbitrager can always buy drop token
from the market and redeem the corresponding value from the dao treasury as an arbitrage premium.

from protocol point of view, having an elastic supply model, acts as a peg mechanism for drop token
without enforcing any kind of monetary policy.

Each buy increases drop price to its rfv value until there is no price differentiation left, while
creating additional revenue stream generated from DROP LPs that are held by DAO treasury. (POL)
 drop dao

drop token use-cases

defı
dao

being backed by various lsd tokens
while maintain interest bearing
function through pos yields opens up
progressive use-cases.
ındexıng value of drop token serves as
a trustable lıquıdıty paır between
other lsd protocols tokens to sustain
theır values.
ınterest bearıng function can be used
ın borrowıng and lendıng protocols or
mıntıng out a collateralızed stable ın
usd or eth value, backed by lsd tokens
ın drop treasury.
drop holders are the sole polıcy maker
of drop dao.
ıncludıng treasury proposals on lsd
token allocatıon change between other
lsd protocols TO generate addıtıonal
revenue.
drop dao utılızes ve model for both
votıng rıghts and dıstrıbutıon of
treasury revenues.
to protect pos decentralızatıon, drop
dao utılızes whale protectıon model on
dao decısıons. whıch means only top50
holders propose treasury allocatıon
change, whıle others are decıdıng.

Drop dao plans to utilize defi and lsdfi prtocolos to make use of lsd tokens of the
dao treasury to create drop paired lp across external protocols to make drop token
reachable as a trusted party while increasing capital efficiency and generating
additional revenue stream for drop dao treasury.

wıth thıs model, drop dao creates ıts own drop paired lp to control capital efficiency
and maximize yields without the need of third partıes liquidity as mercenary capital.

whıle lsd backed drop token creates new use cases and revenue models, treasury
contiunues to expand ın ether value wıth pos yıelds, generated from the treasurys lsd
tokens.

treasury allocatıon decısıon between other lsd protocols ıs planned to create a brıbe
opportunıty for other lsd protocols. drop dao plans to create additional income through
lsd protocolos to paır up drop token to increase deep liquidity and maxımıze potentıal
revenues.
 drop dao

comparison chart

LSD drop staked drop locked drop

liquid asset

POS YIELD

additional yield

boosted additional yield

governance

bribe revenue

The native Proof of Stake (PoS) yields flow into the treasury, increasing the Total Value Locked (TVL) as well as the backed value of each
DROP token. This approach ensures a fair distribution of the native PoS yield, with every token holder receiving yields proportionally
based on their DROP token holdings.

Additional yields can only be earned while the tokens are staked and locked, and the yield can be boosted based on the lock time ratio.
However, the boosting yield ratio is excluded from the native PoS yield to maintain fairness for IDLE HOLDERS.

Treasury earnings serve as an additional revenue stream, which is calculated based on the users' boost ratio. These earnings can be
instantly claimed by the users.
 drop dAO

SAFETY FACTOR

STAKE RATIO TREASURY ALLOCATION

34% 38%
50%
50%
14.453Ξ
IDLE STAKED/
LOCKED

28%

stake ratio plays a vital role in determining allocation of the
treasury that can be utilized to generate additional yield. It
signifies the proportion of the treasury that can be effectively
deployed for the purpose of generating increased returns.
Based on the stake ratio analysis, 50% of the 14.453 Ether can be
allocated for generate additional yields. This ensures a balanced
approach to preserve users' native APY from pos yield and protect
the treasury capital while exploring new income streams across
flourishing LSD FI.

STAKED/LOCKED DROP
TOKENS
STAKED AND LOCKED DROP TOKENS STREAM
INTO DROP DAO TREASURY TO UTILIZE
PROTOCOL OWNED LIQUIDITY MODEL.
IN THIS MODEL STAKED AND LOCKED DROP
TOKENS WILL BE USED TO CREATE PAIRED
Liquidity pools with drop token to
generate additional yield into the
treasury
DROP TOKEN LPS PAIRED
WITH TREASURY HOLDINGS
drop dao
REVENUE STREAM
LSD FI BRIBE REVENUE
an LSD TREASURy that holds diversified
lsd tokens opens up potential
partnership models across lsd fı
protocols.
besides pairing up drop token with lsd
tokens to utilize Protocol owned
lıquıdity model, drop dao can proivde
sole liquidity into existing pools as a
liquidity provider to generate
additional yield, alongside with amm
protocols governance tokens like CRV
and BAL. treasury allocatıon proposal
acquiring another protocols governance
tokens through liquidity providing
creates additional yield models.
rather than the classic pol model
treasury daos, drop dao sustains
fairness and utility first for its
holders and on top of that creates
additional revenue models and collect
yield generating governance tokens of drop dao treasury
external protocols to boost additional
yield streams across defi protocols.
 drop dao

TREASURY ALLOCATION PROPOSAL

0x3482..12db MEMBER Active PROPOSAL settings

MEMBERS OF DROP DAO CAN POsıtıonıng 1,445 steth between rocket pool and frax for better yield IPFS #QmZ47LT PROPOSAL INFORMATION
CREATE A PROPOSAL FOR BAR
Quorum: 5.739 DROP

VOTING SYSTEM Single choice

TREASURY ALLOCATION TO
OPEN UP A DISCUSSION TO Withdraw 1.445 amount of steth from lido to create bribe round.

START DATE 05/10/23 17:13

INITIATE NEW BRIBE
after bribe round ends, new allocation will be executed according to END DATE 19/10/23 17:13
ROUND bribe weight of the concurrent bribe round contributors.

SNAPSHOT 15,904,337
Function: open bribe vault

bribe vault: 0x326290A1B0004eeE78fa6ED4F1d8f4b2523ab669 (https://

etherscan.io/address/0x326290A1B0004eeE78fa6ED4F1d8f4b2523ab669)

Type: Ethereum Chain

CURRENT RESULTS
Weight: 0

FOR 52.23%

CONTRIBUTE NOW AGAINST 48.77%

VOTE BAR TO CONTRIBUTE 1.445 steth wıll be unstaked and

ON CONCURRENT VOTE dıstrıbuted across other lsd VOTE FOR
platforms. learn more.

VOTE AGAINST

LATEST VOTES
VOTES(26)

whale.eth CORE 58.500 drop

0x94f932.. MEMBER 48.362 DROP
0x23f461.. MEMber 31.123 dROP
BALINA.eth MEMBER 30.500 drop

SEE MORE
 drop dao

BRIBE WORKING PRINCIPLE

INITIATION brıbe vault duratıon maturıty

treasury allocatıon before brıbe

blue red black

39%
18% 43% treasury allocatıon after brıbe
red
black

80% 20% blue red black

LSD PROTOCOLS drop dao governance 29%
25% 46%
PERMISSIONLESS BRIBE dao governance executes
new allocatıon accordong
-10%
+8% +2%
INTERFACE FOR DETERMINING new
treasury allocatıon after to recıeved brıbe weıght
CONCURRENT round ends

drop dao treasury

collected brıbe revenue streams

ınto lıquıdıty ımplementatıon for
drop paired lps across amms.
 THANK YOU!

drop dao team

for more info: egecvs@protonmail.com