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The fund is controlled by the MyBricks 2.0 team and is used to conduct buybacks and acts as a reserve to help maintain the peg.
The Dao fund is the second and most important line of defence on top of the Bond Mechanism. Reserves generated by the MyBricks 2.0's Protocol will be injected through the DAO and will effectively buy investors that are cashing out their returns, in essence, helping maintain the 1-to-1 ratio of USDC/MyUSD. The DAO fund is controlled by the team and will later move to a governance system to vote on using funds in certain areas of the project and outside including investment, marketing etc.
Information about the DAO is as follows:
- When MyUSD TWAP is below 1, buybacks will be initiated by the DAO. These will be done at a time decided by the core team and not published until after the protocol is back in expansion to prevent front-running.
- Incinerator: Burns of MyUSD will be performed by the core team periodically, essentially decreasing the circulation supply and helping maintain the peg ($1).
- When MyUSD TWAP is extremely high, the DAO will sell some MyUSD to help assist in bringing back to peg and prepare its reserves for buybacks below 1.
- The DAO fund will hold a range of assets at the discretion of the core team.
- The fund may or may not invest in safe projects to earn yield and grow itself at the discretion of the team.
This is an illustration of the DAO Buybacks effect on the MyUSD price action. Buybacks will be initiated by the DAO and will be done at a time decided by the core team and not publicised until after the protocol is back in expansion to prevent front-running. All transactions made by the DAO can be found here.