What Is Muse (MUSE)?
Trade, swap & sell NFTs. The NFT20 protocol offers NFT liquidity pools to help developers build the next generation of NFT apps. The first paragraph of this pinned topic will be visible as a welcome message to all new visitors on your homepage. It’s important! Edit this into a brief description of your community. In line with thinking about the future of MUSE as a DAO as well as the anticipation of the indexooor and subsequent marketplace, I would like to put forward a few suggestions in regards to what Muse as a community can do to better position MUSE sustainably and to capture value from all and future products as well as incentivise new participation and benefit all community members.
While devs have been busy working hard and shipping, there has been a ton of new and innovative technology in the key spaces of DAOs and NFTs. First I would like to touch on protocol owned liquidity and suggest how MUSE may better handle this for sustainability.
Muse Storage Key Points
|Circulating Supply||508,554.00 MUSE|
|Source Code||Click Here To View Source Code|
|Explorers||Click Here To View Explorers|
|Twitter Page||Click Here To Visit Twitter Group|
|Whitepaper||Click Here To View|
|Official Project Website||Click Here To Visit Project Website|
Future Ecosytem and Economy
I believe your treasury is currently being utilised at yearn to generate yield, but I believe it can be better utilised. Olympus DAO have been pioneering in the DAO and protocol economy landscape, I believe their bonding mechanics have been sufficiently tested and adopted by various other protocols and DAOs. Offering bonds would not only bootstrap liquidity, but allow to have DAO owned liquidity with LP fees going to the treasury.
All of this while harmlessly incentivising new participation via bond discounts. This would put an end to unnecessary emission which eventually will be exhausted and allow to grow an economy around MUSE. Bonds can be offered via the Olympus pro service in MUSE-ETH as well as potentially MUSE-gOHM. Bonds will be denominated in our native governance token unless choose to personally hold OHM/gOHM in your treasury.
Muse seen quite a few interesting interpretations as to how a decentralised marketplace may bootstrap but none have been both effective and fair to the community. By introducing MUSE bonds, the DAO can effectively manage different systems within the economy. With the upcoming marketplace there have been discussions about rewards and fees, this provides the opportunity to introduce a reward system that coincides with provided liquidity and demand, preventing existing holders from being diluted.
Further rationale in regards to the points brought up here can be provided. I have created this thread with initial ideas based off what I have seen in the evolving space of crypto and NFTs and to kick start discussions.
Impact of selling native tokens
At the core of it, the product offers a programmatic way for DAOs to trade native tokens for LP tokens without price impact of selling native tokens onto the shallow liquidity pools. However, it is important to note that MUSE has done some treasury diversification in the past and a portion of our treasury ETH/Stable coins can be added to liquidity pools to basically achieve same effect without bonds.
IMO, if Muse are able to, I would support running a short term bond program to test out the impact of Olympus Pro and reassess at the end of the period. Someone should also take up this responsibility to analyse and compare. At the same time, there are some unannounced projects that are also tackling this issue by pairing DAO tokens with community’s ETH or stablecoins to provide liquidity on DEXes (yields will be tranches to incentivise ETH or stablecoin contributors).
Muse I do also believe a programme as such would only be effective at scale/volume and right now MUSE is still in its infancy in regards to the wider market. I suggested this more as a step down the path of sustainability and in anticipation of demand from the upcoming products to position the DAO well to capitalise on this via PoL. Personally, I would say the product is more beneficial to as a DAO as it allows to own your own liquidity rather than renting it from LPs at the price of token emission and generating this revenue for the treasury instead. The real benefits come into play where we can leverage this liquidity for other use cases down the line and build a sustainable economy around it.
An example being establishing cross-chain liquidity for possible implementation in the upcoming multi chain marketplace. In addition to this, the cost-basis of bonds need be appealing enough taking into account gas fees and bonder illiquidity. If future marketplace fees and incentives are shared between sMUSE stakers similar to NFT20 revenue and Muse provide in return for LP bonds I feel its fair to assume bonding would be attractive on this premise as well as the discounted tokens. Again, this is just one example of how they could utilise PoL and align it with future plans.