Products and Mechanisms

Towards sustainable finance

Products and Mechanisms

When the composability characteristic is taken into consideration, a focused and creative builder community is necessary in order to create competent mass adoption products and design patterns from open finance primitives. To this end, proposals that abstract away the complexities of DeFi for end-users and strengthen the ties between the value generating products of the community and the PRIME token will likely be favored. Token sinks—a family of value capture mechanisms where tokens are locked or removed from circulating supply—are a strong example. We can, in general, imagine four types of proposals submitted to the PrimeDAO

  • Integrations Composability reaches its true potential when seamless interactions between protocols and contracts are managed by interoperability and integrations. PrimeDAO will play a crucial role in curating and selecting proposals towards such integrations.

  • Security PrimeDAO will research and support sustainable methodologies for establishing systemic auditing patterns that survey composability attacks and inform the DeFi community towards the mitigation of these risks.

  • Modeling & Simulations Token engineering is an emerging field informing the creation of robust tokenomic systems. A critical component of designing with such engineering rigor is to be able to simulate prospective systems ahead of time in order to "..provide robustness against exploits, unintended consequences and cascade failures". PrimeDAO will seek partnerships with communities and providers in order to bring this discipline to the core of DeFi.

  • Usability & frontend improvements User experience and adoption will be a major focus for PrimeDAO. Resources will be allocated by the community towards improvements to "the last mile" of DeFi

Captured value is then cycled towards builder teams who continue to improve, secure, imagine, and implement new DeFi products and protocols for PrimeDAO. The DAO, as oversight body, can ensure that the builder proposals it funds are approved on the grounds that they contribute to the token mechanics and the resilience of the DeFi ecosystem. While such efforts are commonplace in the protocol layer, collective focus and experimentation has not been cultivated to this extent in the emerging DAO space.

A schematic demonstrating the flow of engagment between PrimeDAO's stakeholders and products.