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Stag and Elk
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How will Stag DAO work?
How is Stag DAO different
There is a good chance you are reading this document and thinking, "Sounds like Ohm fork #1501". However, we bring a serious proposal to the table that is different to what any other project is doing (to the best of our knowledge).
We aren't trying to be an AMM and an OHM fork. A bit of borrowing from Peter to pay Paul if you ask us - not a real solution to the DeFi 1.0 liquidity token emission incentivisation model that AMMs employ to secure their liquidity. Instead we are forming partnerships to help ensure AMMs have significant enough liquidity to allow for large transactions without punitive price impact. Not only are we creating our own value through our own utility, we are borrowing or leaning on the existing value of existing AMM's.
Fundamentally, Stag DAO is different in that we aren't just trying to create another reserve currency based on Fiat.
What is the point of a reserve currency if it's simply backed by Fiat? Isn't crypto supposed to be about moving to a more decentralized and equitable-for-all economy? Stag DAO will have an emergency fall back fund of 1:1 with the USD. This is, however, only a safety measure for those not yet convinced by the future value of ELK.
More importantly, STAG will be backed 1:1 with ELK. Not only will we have our treasury to prop up the price of STAG during bear cycles, we will also have a bottom dollar backing of whatever the current price of ELK is. Which, as the utility of Elk grows, so too does its value. In a crypto apocalyptic (black swan) event where ELK has some how dropped below $1 and the Stag DAO is in its dying throes, we will call upon our reserve treasury of stablecoins to back each and every STAG for 1 USD, the same as other OHM forks.
Last modified 6mo ago
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