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FxDAO's monthly update (May 2023)

· 2 min read

Between papers and lines of code: One of the "challenges" of creating a legally incorporated DAO is the paperwork, not because is something impossible to do but because of how much time we need to spend on it… But we are happy that April was the month of the paperwork and that we should soon be fully approved 🙌.

This means we aim to be the first legally incorporated DAO working on the Soroban network and hope to also be the first incorporated DAO fully running on Soroban as soon as the network touches main net.

Software Progress

Not only from paper the DAO lives, so we continue working on the protocol and we completed the Safety Pool contract at the end of last month. This pool is the tool that keeps the protocol healthy… How does it do it? This pool uses its reserves (protocol's issued tokens) to liquidate the open vaults that are under the min collateral rate. By doing this both the depositors in the pool and the protocol itself win, on one side the depositors participate in liquidations which gives them the opportunity of profiting from them and the protocol keeps its vaults healthy IE it avoids the protocol getting insolvent.

Now, we also faced a "blocker" in the integration of the Safety Pool contract with the Vaults contract where there are some limitations in the current Soroban preview (You can check a related Github ticket here), because of this we started refactoring both the Vaults' contract and the Safety Pool so they can overcome these limitations. It's possible in the future this won't be a limitation anymore in the network but because we are not sure when it's going to be supported, we are using a workaround. This will delay the development but we are still going to try to keep our roadmap intact.

What's next?

With the paperwork out of the way we can fully focus on the coding side, once we have refactored the current contracts so they can fully integrate, we will start with the Protocol's token Staking Pool which is the second tool used to keep the protocol healthy… Once both are done we will also release an article explaining both tools with more details.

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