Values
Abstract
Values DAO is organization to realize and implement a very significant shift in the application of economic theory. This shift can be expressed in the following way: in digital economy, the economic forces of demand versus supply are generalized into forces of internal coordination versus price coordination. Supply and demand pertain only to price coordination, while entrepreneurship/self-organization (which falls outside neo-classical price theory) pertain to internal coordination. The framework of internal coordination theory is able to explain economic productivity and intrinsic value within digital economy, as distinguished from the more specific materials economy.Internal coordination is still underappreciated as a form of economic productivity, with particular relevance to digital economy. Internal coordination is separate from the forces of supply and demand, and is what equilibrates or regulates supply and demand. Thus, it is what motivates natural self-correction and self-governance by market participants themselves from within the market. The market requires a human being, an entrepreneur, to recognize and solve existing coordination problems, outside of the price mechanism. This happens through the negotiation of social norms. The market is only self-regulating and self-correcting to the extent that common sense norms are negotiated and shared by everyday participants, through internal coordination.The dynamics of internal coordination versus price coordination were first articulated in transaction cost economics, by Ronald Coase in his essay The Nature of the Firm (1937), and later by Douglass North in Transaction Costs, Institutions, and Economic Performance (1992). Transaction costs are essentially extra-monetary communication costs of operating in a market. They include costs of planning, deciding, and deliberation. Essentially, transaction costs reflect the normative rules that internally self-govern and self-regulate market activity.
What is Values?
Values is Metaverse Reserve Protocol on Polygon Network based on the $VALUES token. Each $VALUES token is backed by a basket of assets (e.g. MAI, FRAX) in the Values treasury, giving it an intrinsic value that it cannot fall below. Values Protocol gives a possibility to back NFT tokens to the treasury liquidity. Values introduce economic and game-theoretic dynamics into the market through staking and bonding.
Values is partly fork for OlympusDAO with own twist applied for NFT Bonding for metaverse space and based on Polygon network.
What is the point of Values?
Our goal is to build a policy-controlled liquidity system for NFT metaverse space, in which the behavior of the $VALUES token is controlled at a high level by the DAO. In the long term, we believe this system can be used to optimize for stability and consistency so that $VALUES can function as a global unit-of-account and medium-of-exchange currency in a decentralized metaverse. In the short term, we intend to optimize the system for growth and wealth creation.
How do I participate in Values?
There are two main strategies for market participants: staking and bonding. Stakers stake their $VALUES tokens in return for more $VALUES tokens, while bonders provide LP or MAI tokens in exchange for discounted $VALUES tokens after a fixed vesting period.
How can I benefit from Values?
The main benefit for stakers comes from supply growth. The ValuesDAO harvests new $VALUES tokens from the treasury, the majority of which are distributed to the stakers thanks for the $VALUES tokens they offered. Thus, the gain for stakers will come from their auto-compounding balances, though price exposure remains an important consideration. That is, if the increase in token balance outpaces the potential drop in price (due to inflation), stakers would make a profit.
The main benefit for bonders comes from price consistency. Bonders commit a capital upfront and are promised a fixed return at a set point in time; that return is in $VALUES and thus the bonder's profit would depend on $VALUES price when the bond matures. Bonders benefit from a rising or static $VALUES price.
Who created Values?
Values is a fork of OlympusDAO with its twist applied for NFT space on the Polygon Network that will help other projects build a decentralized metaverse. Our core team has combined experience in computer science, cryptography, economy, and design. Followed by years of experience in crypto. We prefer to stay mostly anonymous for the success of this project because of our aim at becoming a Decentralized Autonomous Organization.
Who runs Values?
Currently, most of the decisions are taken by the core team, but we expect to be able to turn this into a DAO-governed model as soon as possible with your help!
What is Staking
Staking is the primary value accrual strategy of Values. Stakers stake their $VALUES on the Values website to earn rebase rewards. The rebase rewards come from the proceed from bond sales, and can vary based on the number of $VALUES staked in the protocol and the reward rate set by monetary policy.
Staking is a passive, long-term strategy. The increase in your stake of $VALUES translates into a constantly falling cost basis converging on zero. This means even if the market price of $VALUES drops below your initial purchase price, given a long enough staking period, the increase in your staked $VALUES balance should eventually outpace the fall in price.
When you stake, you lock $VALUES and receive an equal amount of sVALUES. Your sVALUES balance rebases up automatically at the end of every epoch. sVALUES is transferable and therefore composable with other DeFi protocols.
When you unstake, you burn sVALUES and receive an equal amount of VALUES. Unstaking means the user will forfeit the upcoming rebase reward. Note that the forfeited reward is only applicable to the unstaked amount; the remaining staked VALUES (if any) will continue to receive rebase rewards.
What is bonding?
Bonding(1,1) is the secondary value accrual strategy of Values. It allows Values to acquire its own liquidity and other reserve assets such as LUSD by selling $VALUES at a discount in exchange for these assets. The protocol quotes the bonder with terms such as the bond price, the amount of $VALUES tokens entitled to the bonder, and the vesting term. The bonder can claim some of the rewards ($VALUES tokens) as they vest, and at the end of the vesting term, the full amount will be claimable.
Bonding is an active, short-term strategy. The price discovery mechanism of the secondary bond market renders bond discounts more or less unpredictable. Therefore bonding is considered a more active investment strategy that has to be monitored constantly in order to be more profitable as compared to staking.
Bonding allows Values to accumulate its own liquidity. We call our own liquidity POL. More POL ensures there is always locked exit liquidity in our trading pools to facilitate market operations and protect token holders. Since Values becomes its own market, on top of additional certainty for $VALUES investors, the protocol accrues more and more revenue from LP rewards bolstering our treasury.
(1,1) Bonding
- 1,1 Bonding is the process of buying regular 1,1 Bonds
- Users can swap selected tokens (usually stable coins like DAI and USDC) or LP pairs directly with the Protocol in exchange for discounted $VALUES tokens.
- This allows the Protocol to build reserves of stablecoins which help grow the project and allow us to offer attractive APYs.
- In return, Bonders will receive a linearly vested supply of discounted $VALUES tokens which can be redeemed and staked or traded.
(4,4) Bonding
- 4,4 Bonding is very similar to (1,1) bonding with some differences
- The rewards for a 4,4 bonds are paid in sVALUES(staked $VALUES) instead of $VALUES
- Complete Value of 4,4 bond is staked, not separated into epochs
- Your rewards compound as they are vested, meaning you don't have to stake them, after claiming them
- Bonds have a vesting period of 5 days and you can claim at the end.
- The percentage shown in sidebar is ROI (Return of Investment) after 5 days and not discount.
- Breakdown of percentage is show on the bonds page
- In below example ROI is 12.28 = 0.70% (discount) + 11.58% (Rebase rewards on complete amount)
Note: As you get sVALUES, you get rebase rewards even if you don't claim them.
Claiming just moves sVALUES from contract to your total staked amount.
Learn More:
Website: https://values.finance/
Twitter: https://twitter.com/ValuesDAO
Discord: https://discord.gg/xdNKGffeY2
Telegram: https://t.me/valuesDAO
Author:
Bitcointalk Username: Oscar Melendo
BitcoinTalk Profile URL: https://bitcointalk.org/index.php?action=profile;u=2853231
Telegram Username: https://t.me/JustinHarijawan
Wallet Address: 0x02289F8569Fe42E91A5F9CABfc7b75f756C634D1
