DXdao is a decentralized organization that develops, governs, and grows DeFi protocols and products. It was created in May of 2019 and has over 400 unique stakeholders with the aim to significantly scale its membership.

DXdao brands itself as a super-scalable collective that focuses on the DeFi ecosystem. It’s characteristics include:

  • No hierarchies – There is no “boss” of DXdao, instead members find consensus through voting. 
  • Symmetry of information – Equal access to information for all members
  • Swarm knowledge – A transparent feedback system that enables decision making with a high degree of success
  • Open for everyone – Access is permissionless and increases the knowledge and effectiveness of the collective

The suite of DeFi products built and governed by DXdao currently includes:

  • Mesa – a frontend DEX of the Gnosis Protocol
  • Omen – a prediction markets platform
  • Mesa – A Dex built on the Gnosis Protocol
  • Rails – a payments application built on Loopring’s zkRollup

DXdao operates with a native ERC20 token DXD. DXD token holders have an economic claim to DXdao’s revenue and it grants its owners future access to a suite of services and premium features in decentralized applications; including gasless transactions, feeless anonymizing of assets, reduced trading fees on DEX protocols and more.

Background

DXdao launched on the Ethereum Mainnet on May 19, 2019 through a collaborative effort of the teams at Gnosis and DAOStack. Reputation (REP) holders govern DXdao – although REP is not a token; it is associated with an Ethereum address and cannot be transferred to other addresses.

During the launch phase users were able to receive REP in 3 different ways:

  • 380k in lock drops rewarded for depositing ETH (80k) or other ERC20 tokens (300k) for a two week period
  • 500k from trading on the DutchX exchange and registering MGN
  • 100k for purchasing REP with GEN

399 Ethereum addresses participated in the initial REP distribution. An additional 27 addresses have earned REP through contributions to DXdao, which has brought the total supply to roughly 1.4 Million REP as of August 2020.

DXD Token
After the initial REP distribution, DXdao moved to launch their token DXD in order to raise funds for the DAO. REP holders voted in April 2020 to launch a bonding curve to mint DXD in exchange for ETH to be held in DXdao’s treasury, which is controlled by REP holders. The price to mind DXD is denominated in ETH and goes up linearly as more DXD is minted. DXdao has a 100k DXD pre-mint that unlocks continuously over three years. The full DXdao treasury can be seen here.

DXD holders are entitled to the financial value created from DXdao products. In the current configuration, 10% of all revenue from DXdao products is deposited into the DXD smart contract buyback reserve as ETH, supporting the price of DXD. REP holders can vote to raise, but not lower, DXD holders’ claim to the 10% of revenue.

Products & Features

One of DXdao’s DeFi products is Mesa – a frontend DEX of the Gnosis Protocol. Gnosis’ mission is to build new market mechanisms for open finance, and operates as a fully permissionless DEX that enables ring trades (order settlements that share liquidity across all orders) to maximize liquidity. Users can use Mesa to trade any tokens supported by the Gnosis Protocol, add liquidity to trading pairs, and track their wallet balance all from one interface.

Another DXdao product is Omen – a prediction market platform where users can create and/or participate in information markets on various topics (crypto, politics, sports, etc.). An oracle provider validates the outcomes and the users who hold shares of the correct outcome collect the crypto held as collateral. In the case of a dispute, an arbitrator can be called to make the judgement.  

When creating markets, users set the market question, the possible outcomes and probabilities of each outcome, a resolution date, and category. At the time of writing Kleros is the only arbitrator available for use on Omen prediction markets.

The markets work by using ERC-1155 tokens to represent the potential outcomes of an event, and they can be bought and sold freely. When the resolution date comes, the market pays out to the holders of the outcome that actually occurred. Additionally, users can opt to provide liquidity for any prediction market, in turn receiving a share of the 2% fee taken from each token trade.

Other DeFi products currently in development by DXdao include Mix.eth, a portfolio manager for the Ethereum ecosystem, and DXswap.eth, a protocol for exchanging ERC-20 tokens.

Why DXdao?

DXdao is on-chain, meaning no individual alone speaks for DXdao. It is a community with many voices that contribute to its permissionless, decentralized nature. Anyone can claim to speak in the best interests of DXdao, but only formal proposals passed by REP holders on-chain can make decisions for the community. Additionally its on-chain nature means the history of DXdao can be viewed on the Ethereum blockchain with all decisions and discussions open for all to see.

DXdao benefits from scaling decentralization, with the financial value (DXD) separate from voting power (REP). REP is earned by community members who contribute to DXdao, meaning more growth and user contributions leads to greater overall decentralization. REP is non-transferrable meaning outside actors with no incentive to act in the best interests of DXdao cannot influence the community. Due to the permissionless and borderless nature of the Ethereum, DXdao functions as a global community where anyone can join and benefit from the collective.

How to Get involved?

Stay up to date with all things DXdao through their Twitter or jump into the discussion on Telegram!