Changes to the DEFI Investments in the BlockTunes DAO

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Hello everyone, I wanted to bring you a quick update on the state of the @blocktunes DAO and some of the things that have been happening this week.

First off, we have had our first few artists get signed up and getting ready to start publishing some music to the BlockTunes platform!

We have all the main functionality up and running, just working out the details, and also working on documenting some HowTos and setting up a whole section on the site for that.

But the main reason for today's post is to discuss some big changes we have made and what we are wanting to do going forward.

Farming Changes

We had to make some farming changes in the DAO. We decide with a heavy heart to move the CUB farm over to the CAKE/BNB farm on Pancakeswap and farm the CAKE token instead.

A couple of things sparked this change. We had the opportunity to onboard a couple of decent size investors, but actually what scared them away is that they had never heard of CUB and when they went digging, they didn't like the lack of liquidity in their markets and the fact that they didn't even use their own exchange. The points that were brought up made allot of sense from an outside investor standpoint. Too many people got rug pulled in the early days of BSC DEFI and even after explaining that CUB was ran by the Leofinance crew, they still didn't like the small amount of liquidity. They suggested to move into a stronger farming platform like Pancakeswap to farm.

If we are farming CAKE tokens, it makes it easy to harvest the CAKE and then deposit directly to Venus without having to do an exchange. This also makes it easier for us to be able to pay out dividends to our bTUNES DAO token holders in the form of CAKE tokens. CAKE has a much bigger name and brand than CUB and if we are trying to attract money outside of the Hive ecosystem, we are going to have to go with the bigger name. Not to mention that interacting with the DAO smart contract is not cheap on gas and the less transactions we have to make the better.

Another reason is that we are also using the Venus protocol to store our main investments as Venus tokens. We have BNB, BUSD, and CAKE all working in that platform earning varying interest.

Venus is a lending platform, basically BSC's version of Compound Finance and we are using this for a couple of reasons. One it is a way to have tokens earning interest passively while still being able to be liquidated if an investor wants to burn their LP tokens, which removes your portion of any liquidity in the DAO and you have your choice on what asset or assets you can pull out. You will then have Venus tokens that you can either keep and earn on or remove from Venus and keep the base asset.

The second thing Venus allows us to have is an internal credit line. This can be used to help grow the brand, use for marketing, or just use to help build the farming portion of the DAO and then pay back the loans with the farming rewards.

CAKE FARM VS VENUS ALLOCATION

As far as the allocation, we have been advised to keep the ratio of 70% and 30% that we planned. The 70% of the funds from the token sales will go into the Venus side of the allocation and the 30% would go into the CAKE/BNB farm. With the rewards from the farm, we can start with a 50/50 split of reinvesting 50% into the vCAKE tokens, which is the Venus wrapped CAKE, letting it earn a nice variable APR, and then the other 50% can be distributed as dividends to bTUNES token holders on a weekly or monthly basis.

These possible investors are some actual financial advisors and they gave us this advise for free while they decided to not invest currently and it seems to be the consensus on the best course of action. We started out kind of just throwing it to the wind and using a higher risk investment, but this advise, I think we can hopefully get a sound and solid footing to move forward.

We will be only investing in the CAKE/BNB pool for now as it has the highest payout mulitplier at 40x and is paying out a solid 41% APR.

For Venus, we currently have BNB, BUSD, and CAKE all earning interest. As we sell bTUNES tokens and build up funds in the DAO we will be creating votes on other investments for Venus starting with Bitcoin, then Ethereum and Polkadot. Again, these Venus token assets will all be able to be liquidated from the DAO. That is why we are focusing the 70% allocation to these investments.

You can see the details of the investment yourself on DeBank
https://debank.com/profile/0x6758359582ec5c602f5121095807b062a15a9d5d?chain=bsc

And you can visit the XDAO Dashboard which is still in BETA:
https://www.xdao.app/56/dao/0x6758359582Ec5C602f5121095807B062a15A9d5d

Moving Forward

Now that we have our foundation laid and our game plan on the board and being put to action, we are ready to start onboarding DAO investors. If you are interested in helping be apart of the future of the music industry, then you should come and see what we are trying to build! The OpenTunes NFT collection commission for BlockTunes is already set to be received by the DAO address so any sale on the NFT marketplace, the DAO will get a 10% cut and the rest goes to the artist.

Purchase bTUNES tokens for any payment method we accept on the site, or go to the XDAO dashboard and purchase them directly! For any tokens purchased in the DAO, we will burn the equivalent amount from our initial issuance for the token sale. This will keep the token supply at 20k until the end of the token sale. More on this in another post.

If you are interested in governance and want to get in on the ground floor, check out governance board sale where you can get a special NFT, and your first bTUNES tokens! After the sale is complete we will issue your governance token from the DAO through a DAO vote.

Opening Act Bronze Level
Second Act Silver Level
Headlining Act Gold Level

If you are in the United States, you will need to be an 'accredited or sophisticated investor' or just be smart enough to use a VPN to view the Governance board sale. If you don't it will look like an empty category.

For now, keep a look our for new music being minted on the OpenTunes collection
and new announcements on releases, giveaways, and more!

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5 comments
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(Edited)

BlockTunes sounds amazing. Will have to get some of those governance tokens. I think this is going to be huge.
I am not a musician but appreciate all music.
That is cool we are both Hive Engine Witnesses, I set my Server up in Japan as I did not notice any HE Witness nodes in Asia :-D

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(Edited)

Yeah mine are out of Germany, the nodes are a really good price, but certainly slower network speed than the other one I was using before, give and take you know, lol. $7 per node vs $40, lol.

And I hope BlockTunes is going to take off. Just the beginning! If you want to get into governance you can, or you can purchase just the investment tokens.

Actually going to put up a vote tonight on Hive to make some changes to increase the farming rate of the DAO for now to build more growth into the DAO, but thanks for the interest! It's not just for Artist, but for fans as well!

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I am wanting to get into governance and need to get really serious about WorkerBee. Hive is my Home online, it is where I prefer to spend the majority of my time so being able to contribute to its growth is an amazing calling for me 😀

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