1) Definitions
Ethernaal: A collective made of artists shaped around the tattoo and blockchain industries, managing it´s own brand, marketplace, art collections, treasury, partnerships, gallery and museum curation.
Decentralized Finance: an ambitious attempt to decentralize core traditional financial use cases like trading, lending, investment, wealth management, payment and insurance on the blockchain.
StakeDAO: Allows individuals and entities to effortlessly and trustlessly participate in emerging digital economies. StakeDAO provides financial instruments and services on top of the leading Decentralized Finance protocols and staking networks.
2) Context
Unlike many project in the blockchain industry, Ethernaal has the particularity to count in it´s user base a majority of non-crypto initiated individuals. Ethernaal´s artists compounded community reaches over one million users coming directly from the tattoo world with little, if not any at all previous knowledge or experience in the crypto or NFT aera.
On the other side, the Decentralized Finance (DeFi) world is savage and complex for the any user, initiated or not, funds are lost in millions, laying the grounds for the entertaining stories of Rekt HQ, but with the right people, knowledge, and tools, DeFi can become a smooth and joyful ride, hence the choice of working into establishing a partnership with the most valuable players of the game, StakeDAO.
3) Requirements for Ethernaal ´s partner
Deciding to allow Ethernaal´s user to gain from DeFi exposure was conditioned by the team´s ability to secure a partnership with a DeFi player. Upon risk assessment the team had established a list of requirements to mitigate the possibilities of undesirable happenings concerning Ethernaal treasury and user funds:
- The partner should work as a collective / be DAO governed and includes elements of decentralization
- Funds management must be non-custodial
- The selected partner must be a recognized and legitimate entity from the DeFi ecosystem
- Individuals heading the project are known/ identifiable and gained a reputation in their field through achievement and experience
- The partner must offer a simple and user friendly interface
- Insurance protocol or system must be offered
- The Ideology behind the project must be compatible with Ethernaal´s ideology.
Based on the above requirements, we started to mark down our checklist and found that there were only one partner we would go with if offering this product to our users, StakeDAO.
4) StakeDAO Compliance & Ethernaal´s requirements.
StakeDAO Compliance with our original checklist was easily evidenced with little due diligence:
The partner should work as a collective / be DAO governed.
StakeDAO is a decentralized collective, DAO governed.
Funds management must be non-custodial.
Fund management is non-custodial.
The selected partner must be a recognized and legitimate entity.
StakeDAO has already established many partnerships with top tier DeFi ecosystems.
Individuals heading the project are known/ identifiable and gain a reputation in their field through achievement and experience.
StakeDAO contributors are recognized actors of the DeFi and crypto-industy.
The partner must offer a simple and user friendly interface.
StakeDAO offers an user friendly interface.
Insurance protocol or system must be offered.
StakeDAO has a partnership with Tidial to provide funds insurance.
The Ideology behind the project must be compatible with Ethernaal´s ideology.
StakeDAO shares the vision of a fair economic world that empowers individual to achieve a greater financial freedom.
5) Ethernaal treasury & StakeDAO.
StakeDAO services are leveraged to benefit both Ethernaal collective treasury and it´s individual users in the different ways, including passive earning.
$NAAL holders can earn additional income from DeFi ecosystems simply by staking their Tokens.
The Ethernaal treasury function on the logic of perpetual accumulation and punctual redistribution based on a treasury defined proportion, the aim being to increase over time both the treasury and the distribution to stakeholders and perpetually as long as the channels of incomes are kept active. These different channels meant to augment the collective treasury are shown below (Subject to changes, new channels are added as per the deliveries of the various proof-of-concept found in the whitepaper).
The channels shown above demonstrate how Ethernaal produces a continuous flow of income and fees which augment the treasury as per the daily operations, part of this income is redirected into the DeFi channel.
6) Quarterly Benefit distribution and DeFi position augmentation
Every Quarter, Ethernaal will process to the benefit distribution to $NAAL holders (From Jan 2022) and LP Providers (Before Jan 2022).
On a monthly and Quarterly basis, 10% of the benefits generated by the ecosystem are allocated to StakeDAO position in order to grow the Ethernaal collective Treasury.
25% of the benefit generated in the previous quarter is to be shared as part of profit distribution between the different treasuries and among eligible tokens holders who have stacked their $NAAL (or supplied in LP) for the full quarterly period (from 00.01 GMT the first day of the month until 23.59 GMT on the last day of the quarter) as per distribution table (see whitepaper).
5% of the benefit generated in the previous quarter is to be shared between the membership categories eligible in staking requirements (Whom have stacked their $NAAL (or supplied in LP) for the full quarterly period (from 00.01 GMT the first day of the month until 23.59 GMT on the last day of the quarter). Curators shares 35% of the split, Mecenes 30%, Patrons 20%, Unicorns 10% & Angels 5%.
Ethernaal Membership is obtained via long term staking commitment and unlock access to a portion of benefit distribution dedicated. Membership classes NFT are scarce and not transferable.
7) Annual rebalance, DeFi Yield and Treasury distribution
Every Year, Ethernaal will process to the rebalance and distribution of a part of its treasury to $NAAL holders (From Jan 2022) and LP Providers (Before Jan 2022) eligible through staking requirements.
On a Yearly basis the DeFi positions are rebalanced to reflect 10% of the total amount of the treasury post-distribution, all profit and extra liquidity generated from the various DeFi position are added to the distribution pool .
The Annual distribution treasury will take a split of 20% of the total amount hold in Ethernaal treasuries (excluding the Museum, emergency treasury, NFT treasury, Liquidity pool treasuries along with any $NAAL holding) and share it among qualified eligible $NAAL Holders as per distribution table (see whitepaper) .
A 5% Bonus Annual distribution treasury is shared among the Ethernaal Membership Class Token holders. (Curators shares 35% of the split, Mecenes 30% Patrons 20%, Unicorns 10% & Angels 5%).
8) Ethernaal and StakeDAO; DeFi as a service for the tattoo industry
Ethernaal´s partnership with StakeDAO also entitles individual users to undertake the learning curve process via their academy before acquiring crypto-currencies or starting to stake their holdings and profits into simple pools and/or efficient DeFi strategies to effortlessly grow passively their capital in the crypto-tattoo industry.
