Treasury seeding with project partnerships

[ericjuta]

Context

• Necc protocol integrates with each of these projects onchain highly dependent on them for key infrastructure
• In return for providing project tokens, $nNECC tokens will be returned at a fixed rate via the treasury; essentially a token swap
  ($nNECC are staked tokens which auto compound in APY)

How is this a project partnership?

• Project tokens are locked into the Necc protocol collateral pools by minting the stablecoin $NDOL and seeding the treasury

• By seeding the treasury, each of the project tokens can get isolated collateral pools to:

$PROJECT -> Mint $NDOL
Burn $NDOL -> $PROJECT
Open an inverse perpetual position with 30X leverage (1 $PROJECT collateral, borrow up to 30 $PROJECT to long or short)
Purchase $NECC bonds at a discount with $PROJECT/$nNECC LP

• Fees from each of these actions are continually locked into the treasury by minting $NDOL and buying $NECC bonds.
• Overtime the treasury and DAO can accumulate more of its project partners liquidity and governance.
• Additional features could get prioritised for project partners such as NFTs that can be used for fee discounts as an example.

What else do staked Necc tokens ($nNECC) do?

• Vote in DAO governance proposals to integrate deeper with project partners at a protocol level
• Be put down as collateral in V2 of the Necc protocol for permissionless markets to accumulate more $nNECC
• Purchase $NECC bonds at a discount with $nNECC/$PROJECT LP
• Sold back at a profit for project tokens in the future by swapping:

$nNECC -> $NDOL -> $PROJECT

Initial steps

• Agree on the following altogether or discretionary for each project partner:

Datasource for $PROJECT price feed
Token swap rate
Minimum safe criteria such as liquidity amount before creating an inverse perpetual market

• Draft project partnership announcement post for publishing on social channels i.e. discord and medium, twitter

Ideal deadline

• As soon as viably possible

[ericjuta]

@kcole16 will edit OP draft, leave feedback here

[ericjuta]

https://neccdao.medium.com/necc-protocol-project-partners-1b8dcc2c4cb0

Published this fwiw