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HomeCOINSWhat Is SquidDao (SQUID)? Complete Guide Review About SquidDao.

What Is SquidDao (SQUID)? Complete Guide Review About SquidDao.

What Is SquidDao (SQUID)?

On October 20, 2021, an anonymous group of DeFi veterans came together to launch Squid DAO. These anons believed they could leverage the economic successes popularized by the Olympus and the fundraising mechanisms introduced by Nouns DAOs to create an economic flywheel backed by ETH. From the Abyss, The Great Old One will rise and, with its coming will consume and spawn the shoal. The SquidDao will be many, the Kraken will be few, but all will unite to become SQUID.

SquidDao Storage Key Points

Coin BasicInformation
Coin NameSquidDao
Short NameSQUID
Circulating Supply126.28 SQUID
Total Supply126
Source CodeClick Here To View Source Code
ExplorersClick Here To View Explorers
Twitter PageClick Here To Visit Twitter Group
WhitepaperClick Here To View
Support24/7
Official Project WebsiteClick Here To Visit Project Website

What is Squid DAO?

SquidDao mission is to be the ultimate fair launch project. Squid DAO launched leveraging the Nouns DAO auction mechanism, thereby enabling anyone to bid and participate in its initial offering, regardless of connections and status. Also, the NFT auctions were spread out over several days, spanning all time zones, so that everyone anywhere could take part.

SquidDao stacks ETH in a non-dilutive manner whilst giving the community full control of the systems, fees, and revenues via NFTs (SQDN) and veSQUID governance. Squid DAO was inspired by OlympusDAO and Nouns DAO. Each SQUID is backed by Ethereum-denominated assets (e.g. ETH) in the Squid treasury, giving the token an intrinsic value that it should not fall below. Squid DAO will leverage similar staking and bonding dynamics to OlympusDAO.

SquidDao derives its uniqueness not only from a combination of Nouns DAO and OlympusDAO mechanics, but also from the deployment of the Ethereum in its treasury. Having one of the largest treasuries of Ethereum in DeFi, Squid DAO leverages this in 2 ways. Firstly, through investing in safe yield-bearing strategies, and secondly, by fostering mutually beneficial relationships and partnerships across the DeFi space.

What is the SQUID token?

SQUID is a token that is designed to grow in value versus ETH. So as ETH grows in value, SQUID should grow in value even faster. Every SQUID is backed by at least 1 ETH. However, through the accumulation of income-generating assets in the Squid treasury and market determiners, SQUID can reach valuations well beyond that of ETH.

Keep in mind that having SQUID backed by ETH means that ETH is our safe asset. The USD price fluctuations of ETH do not matter to SQUID. 1 ETH is always equal to 1 ETH. SquidDao share only the correlation to the policies of Ethereum. Squid believes that ETH is truly ultra-sound money, with its fee burning, FAT theory, and decentralization.

How do I participate in Squid DAO?

There are 2 main strategies for market participants Hibernating and Bonding. Hibernators stake their SQUID in return for more tokens, whilst bonders provide LP tokens in exchange for discounted SQUID after a 5-day vesting period. To participate in governance, you can lock your tokens to gain veSQUID, or purchase an NFT through auctions, or on the second-hand market. You can get involved directly on your discord and forums.

Who runs Squid DAO?

Everyone. Squid is DAO-governed, meaning all community members can have a say in governance and the direction of the protocol’s future. You can get involved deeper than voting, by being a builder; there are a multitude of opportunities to contribute to the DAO, and go beyond. Hibernating and spawning are considered beneficial to the protocol, whilst selling is considered detrimental. Hibernating and selling will also cause a price move, while Spawning does not (SquidDao consider buying SQUID from the market a prerequisite of Hibernating, thus causing a price move).

What is a rebase?

Rebase is a mechanism by which your staked SQUID (sSQUID) balance increases automatically. When new SQUID are minted by the protocol, a large portion is distributed to the stakers. Because stakers only see sSQUID balance instead of SQUID, the protocol utilizes the rebase mechanism to increase the sSQUID balance such that 1 sSQUID is always redeemable for 1 SQUID.

What is APY?

Annual Percentage Yield (APY) is simply the reward yield compounded for a full year. It measures the real rate of return on your principal by taking into account the effect of compounding interest. In the case of Squid DAO, your staked SQUID represents your principal, and the compound interest is added periodically on every epoch (2200 Ethereum blocks, or around 8 hours) thanks to the rebase mechanism. Due to the power of compounding, your balance will grow not linearly but exponentially over time.

Why does APY change?

As the reward yield moves up or down based on the amount of staked SquidDao, the APY also changes. In fact, the APY can change dramatically in response to small changes in reward yield, due to the high number of compounding periods in one year (1095 to be exact).

Nile
Nile
Nile Is Very Old Author At Wootfi Blog . We Loves To Write About Altcoin , ICO & Defi . In Free Time He Loves To Play Football .