DAO for DeFi in a Few Clicks: the Case Study of Homebase on Tezos
On the 10th of September, TQ Tezos launched Homebase on mainnet: it is a templates-based platform for creation of DAOs. Version v0.4 allows one to create a contract to govern project funds or a smart contract in a few clicks.
We created a test organisation on Homebase and reviewed the platform.
What is DAO
DAO (decentralised autonomous organisation) is a smart contract for collective governance of blockchain projects. They allow investors to vote and automatically count votes, and sometimes to automatically implement the decisions that had been made. Thus, algorithmic stablecoin DAO participants can change the collateral factor for new tokens, expand the list of tokens to be collateralised, or vote to add new currencies.
No matter how useful a DAO could be to the project’s evolution, collective governance is but an option. In most cases, developers focus on core functionality and implement contracts and UI for DAO in a matter of months or even years after the project launch.
Homebase makes use of the concept by the Crunchy.network developer Joshua Dechant, DeFi-as-a-Service. Instead of starting everything from scratch, developers can fill in the template and launch a DAO smart contract in a few clicks.
At the time of writing, Homebase supports two kinds of organisations:
- RegistryDAO: a decentralised storage for key-value pairs. It allows users to introduce proposals linked to the Tezos Agora post ID, and to vote for them.
- TreasuryDAO: collective governance of tez and FA2 tokens locked in the DAO.
Users can experiment with DAO on the florencenet (a testnet) or create a decentralised organisation on the mainnet straight away. The app supports Spire, Temple, Galleon, Kukai, Umami, and Airgap wallets.
Homebase’s main page lists organisations created by other users. Homebase has a graphic interface yet developers can also publish a DAO smart contract using the Tezos client as described at Tezos Commons GitHub.
Launching DAO on florencenet
First you need to go to the web app Homebase, select the network and link the wallet. We chose florencenet to avoid spending real tez in case of an error. Then, Homebase offered a selection of contract templates: TreasuryDAO or RegistryDAO. We chose the former.
Fill in the info on your DAO: specify the token contract that users will employ to introduce their proposals, as well as the organisation’s name and the addresses of the administrator and the protector.
Then set up the voting parameters: the number of cycles of voting, delay before implementation, proposal lifetime, and the minimum stake for proposal-making. On top of that, specify the percentage of the stake returned to the authors of failed proposals, and the minimum/maximum number of tez for voting.
Then set up the quorum and the conditions to pass and execute a proposal.
In the end, confirm the template was filled in correctly. You have to sign two transactions when creating a DAO: one to publish a contract with metadata, the other to publish the DAO contract. Originating the contracts cost us 6 tez. Afterwards, Homebase offered us to show the DAO control room. This page allows you to make a deposit in the organisation’s tokens, fill up the treasury (in tez), look through the most active participants, and propose to send tokens from the treasury to an address.
Homebase is quite a useful tool for projects seeking to activate decentralised governance at early phases. We liked the option of linking Agora post ids to voting as it makes learning about the proposal’s contents easier. Hopefully, Homebase devs will add other templates for DAO creation. It could seriously boost the evolution and the decentralisation of Tezos-based projects.
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