Vote Incentives Market

Spiral DAO strives to become the primary buyer/seller within the vote incentive marketplace and aims to make it as rational as possible. All liquidity in the DAO will be POL (Protocol-Owned Liquidity), and the DAO will seek gauges for all important protocols. POL + gauges allow Spiral to collect the majority of emissions from the bribes market directly into the Treasury DAO.

Maintaining balanced treasury exposure

Vote incentives markets are an essential instrument for Spiral to sustain a desirable proportion of different assets. Spiral DAO "arbitrages" bribe markets to gain more yield, greater exposure, and rebalance the Treasury.

For example, if the DAO wants to increase the proportion of BAL in the treasury and decrease CRV, the DAO will do the following:

  1. sell CRV votes on the vote incentive market for stablecoins

  2. with those stables buy votes on Aura/Balancer vote incentive market

  3. allocate those votes to the POL gauge

  4. get an additional emission of BAL/AURA

As a result of these measures, the relative portion of BAL-AURA tokens in the treasury will increase while the CRV portion decreases as it will use its own emissions-by-votes to get stables.

By engaging this mechanism, we create additional liquidity for the vote incentives market.

Thus, as a byproduct of how the Spiral DAO operates, it makes the vote incentives market more rational and efficient for all participants and protocols that engage in voting mechanics.

Last updated