This new VC way brings on-chain fund management into the YFLink ecosystem

Decentralized autonomous organizations (DAOs) could come up with a new paradigm for various old world ideologies (except those related to iced tea).

Common examples include the management and reorganization of supply chain models, borderless identity processing, credit and loan management, and even mortgage of principal and debt. for additional use.

But a new project is going a step further with what the DAO model can achieve.

Enter LINKPAD: A protocol claiming to be the first decentralized venture capital fund that allows its investors access to pre-sale crypto projects and other level 1 chances.

LINKPAD TL; DR pic.twitter.com/MothTRTOxI

– LINKPAD (@linkpadio) November 18, 2020

The latter can cause a chord or two for people who have been in the crypto game long enough – excellent pre-sales or limited to the rich and well-off or claiming to “tie up. connected “together. This is arguably the opposite of crypto ethos – such as inclusiveness and financial equity – and LINKPAD hopes to change that.

“We understand that there exists an environment where large venture capitalists have access to pre-sales, private sales and seed rounds that typical retail investors cannot enter. family. “

The plot of ‘Linkie’

LINKPAD is part of the YFLink ecosystem, which is itself a fork of the Yearn Finance protocol, uses its own administrative token, YFL, and relies itself on Chainlink’s LINK token (for both to exploit into Link Marines’ meme energies and also to move away from Yearn’s yCRV Latch).

Since then, YFLink has grown to its current $ 30 million market cap with a strong, engaged community of 6,500 people on Twitter. Its upcoming main use case is LinkSwap, a community-run Automated Market Maker that helps minimize the impermanent loss challenge (ask SushiSwap users), cutting down on unavoidable carpet pulling. exit (hello Harvest Finance) and develop the YFL use case beyond a mere governance token to a more value accumulation mechanism.

Hence, YFLink treasury is expected to see a portion of each transaction made on LinkSwap to be used for further project development. However, part of those, that , according to LINKPAD founder Cole Petersen (who also writes for this publication), could be directed towards strategic investment in early stage projects, thereby creating better value for both YFL and the owner. in its possession.

“Essentially, we are looking to build a venture fund with a fraction of the fees generated by the LINKSWAP platform and use these funds to make initial investments in early stage projects. To minimize transparency and liquidity issues, we will only invest in tokens, not equity, ”Petersen explained in a blog.

How will it work?

Although LINKPAD is still just a proposal (the fund itself is incubated and working), its mechanism calls for transferring half (50%) of the treasury fee sent to the LINKPAD fund.

All such moves will be duly audited and wholly owned by the YFL ecosystem, with all profits from token allocation reinvested back into the governance vault. Such a design is expected to help YFL token holders enjoy even more revenue, as the image below shows:

The funds themselves will find their way into different investment paths: such as investing seeds in early stage projects, providing liquidity on LinkSwap, productive farming on the aggregate DeFi space (only low-risk ones, fully audited) and invest in other communities-led projects.

To ensure no Yam scam, a public Ethereum address will be released to the community and used to track all fund movements. In addition, the group page can be access here and the wallet keys will be held by people holding multiple characters from four different teams.

DAO funds have been tried before but there is no mechanism like LINKPAD. Could this be completely different and pave the way for similar community-owned funds on other crypto projects?

Only time will tell.

(Project scoping and announcements can be accessed here.)

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