The Curation Game
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The Curation Game

Overview

What is the Coordinate Curation Game?

This is a spinoff of Coordinape's own GIVE tokens at MCON2 and the MetaFactory Curation Game BUT with IRL activities + NFTs + exclusive rewards + token airdrops

Coordinape = an intersubjective process for acknowledging and rewarding value creation in communities

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Curation = Finding high quality things before others can find it by using your personal unique perspective.

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Game = Something fun with friends.

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Coordinate Curation Game = Intersubjective process for finding high quality things in a fun way.

Why and What are you curating for Debt DAO?

Two of the core principles of crypto are permissionlessness and censorship-resistance, meaning that anyone can do anything they want. Anyone can launch a token, a project, a DAO.

So in all this spam, how do you find something worth spending your time and effort on?

This is the core purpose of curation. At Debt DAO we have created a permissionless Marketplace for providing credit to DAOs. Any DAO can create a loan and anyone can lend to them. This game focuses on curating DAOs worthy of taking out loans, ones that won’t rug pull, get hacked, fail to repay or implode on themselves.

Do you think you have what it takes to find great DAOs in all the noise out there? Then join our curation game ;)

Experiment Design

Hypothesis

Game Outcome

  1. Running a curation Game is cheaper and has a higher success rate than hiring BD people

Methodology

  1. The Coordinape model is the most effective because it's directly integrated into your community/social graph and provides information on those being curated as well as the curators themselves.
  2. Physical Kong chip for referral tokens is the best medium because it requires actually having a relationship with the person you curate. We think this social/trust based component, especially in crypto for BD, will be effective at having a high close rate.

Expected Outcomes

  1. Identify ~3 high quality borrowers (>$100k/month revenue, > 3x DSCR (revenue coverage of debt repayments) that will be excited to launch with Debt DAO this month
  2. Identify ~1 high quality lender (>$10M assets to allocate to DAO lending) that will be excited to launch with Debt DAO this month
  3. Identify ~5-10 high quality curators that join our network to earn $DEBT by recruiting lenders and borrowers
  4. Engender deep convo between people about their own projects and how it can relate to Debt DAO → If you want to earn referral rewards then you have to know what Debt DAO is, what we want, and listen to the person you’re talking to to see if they’re worth GIVEing

How To Play The Curation Game

Player Types

Curators

People interested in actively playing the Curation Game to scout out good borrowers and lenders.

You might work at a service DAO, be a DAO treasury manager, run a VC fund, or be in any other role that gives you insights into the internal workings of DAOs and what makes a DAO actually functional instead of the shitshow known as the UK Government.

Borrowers

DAOs that build products and protocols and already have significant success and product market fit. They have revenue and are looking for financing to take their DAO to the next level.

For example, our first line of credit was $2,500,000 in size for REDACTED Cartel based off their CVX bribing rewards. They used it build out their Pirex product which now generates revenue for them and is synergistic with their Hidden Hand product which also generates significant revenue. They not only fully repaid the loan, but because the loan was in UST, they profited from the depeg.

Lenders

Mandate to earn yield on stable coins and/or ETH.

Ideally cryptonative investors e.g. DAO treasuries, stablecoin providers, or asset manager DAOs but off chain TardFi funds are ok too if that’s the best you can do.

Curator Cheatsheet

Debt DAO focuses on revenue-based financing for growth stage DAOs. We are looking to curate the best DAOs to take out a Line of Credit to fund their operations, asset acquisitions, product development, protocol owned liquidity, or any other value adding activity that will increase their protocol/DAO’s revenue.

What to look for in Curators

  1. Boots on the ground DAO treasury managerService DAO contributor Venture investor
  2. Desire to improve DAO operationsKnows cryptonative credit will usher in a new era of DAO treasury managementInterested in facilitating education for potential borrowers and lenders
  3. If you are like us and don't want to do work, you can curate other curators by delegating to them and giving them your Kong chip. Since we are in the process of figuring out "what to look for in a curator" ourselves please let us know what your thoughts are so we can steal them :)

What to look for in Borrowers

  1. Product-market fit
    1. Ability to create exciting new products that people love using
    2. Low/no token emissions directly to product users
    3. High retention of capital and users through the bear market
  2. High revenue
    1. "Debt Service Coverage Ratio" (DSCR) is the ratio of revenue to expected loan repayments and is a common metric for evaluating how risky a loan is. >3x is ideal so for every $1 of interest accrued they make $3 in revenue
    2. Diversified revenue streams from multiple products and earned in multiple tokens
    3. +++ if the borrower wants to integrate our Spigot contract to trustlessly back their loan with revenue instead of a trusted (🤢🤮) setup
  3. High revenue
    1. "Debt Service Coverage Ratio" (DSCR) is the ratio of revenue to expected loan repayments and is a common metric for evaluating how risky a loan is. >3x is ideal so for every $1 of interest accrued they make $3 in revenue
    2. Diversified revenue streams from multiple products and earned in multiple tokens
    3. +++ if the borrower wants to integrate our Spigot contract to trustlessly back their loan with revenue instead of a trusted (🤢🤮) setup
  4. High revenue
    1. "Debt Service Coverage Ratio" (DSCR) is the ratio of revenue to expected loan repayments and is a common metric for evaluating how risky a loan is. >3x is ideal so for every $1 of interest accrued they make $3 in revenue
    2. Diversified revenue streams from multiple products and earned in multiple tokens
    3. +++ if the borrower wants to integrate our Spigot contract to trustlessly back their loan with revenue instead of a trusted (🤢🤮) setup
  5. Low burn rate
    1. Low/no token emissions at all
    2. Reasonable spending on contributors salaries at an individual level and in-aggregate
  6. Strong treasury balance sheet
    1. >10% of treasury in stablecoins or ETH
    2. Low correlation between assets in treasury and broader market
    3. “Gearing” is the total amount of debt to assets on the balance sheet. < 20% is ideal so $20 debt for every $100 in their treasury.

What to look for in Lenders

  1. Investment mandate
    1. Desire to generate interest income through providing liquidity throughout DeFi
    2. Yield on stablecoins and/or ETH
    3. Ability to lend at longer durations such as 1 year
  2. Lender Type
    1. Cryptonative investors Asset manager/investment DAOs DAO treasuriesStablecoin issuers
    2. Off-chain investorTardFi funds

Curation Game Rewards

If you give or receive multiple tokens for being a curatee or curator, you can spread them across rewards for your category or concentrate them on one reward.

Curators

Curators will only be rewarded if the borrower or lender they they curate closes a deal that gets repaid without default.

You can redeem your GIVE tokens for:

  1. $DEBT token airdrop
  2. Exclusive swag by MetaFactory
  3. Access to our private discord
  4. Other early community rewards

Borrowers

Borrowers must get funding through the Debt DAO Marketplace to be eligbile for curation rewards. You can redeem your GIVE tokens for:

  1. Moving up higher in the Debt DAO due diligence waitlist
  2. 1-1 support to setup your Spigot contract which will greatly reduce your interest rate and the amount of collateral you will need to post.

Lenders

Lenders must deposit into a Line of Credit or Pool on the marketplace. You can redeem your GIVE tokens for:

  1. Priority deal flow with first right of refusal. You'll see the most curated borrowers before we propose them to non-curated lenders
  2. Access to our private discord for all the alpha about borrowers and our platform
  3. Feature requests. You ask for it, we make it (within reason 😚)

Instructions for Playing Curation Game

Curators

  1. Come meet the Debt DAO team at the Hydration Station in DAOist Bogota. We’ll be there bright in early if you want to get a hands-on tutorial or an early start
  2. We will register a [Kong chip](TK link to Kong) to you and record your wallet address and twitter handle for future comms and airdrops
  3. You will receive your Kong Chip. Each Kong chip has an NFC in it. If you need help remembering Curation Game rules, hold your Kong chip to your phone and this docs page will pop up to help guide you.
  4. You go do u and frolic like a ___[Bob insert some other British funny thing here too]___
  5. Learn about other DAOs at the event. REALLY LISTEN TO THEM. Ask them questions related to the Curator Cheatsheet to get better results
  6. Once you find THE project you want to curate, give them your Kong chip
  7. Give your Curatee a link to this docs site so they have the rules of the Curation Game and know what and how they can claim rewards for being curated.
  8. Await further instructions from Debt DAO. We continuously evaluate and rank all the curators, borrowers, and lenders on our Curation Game Leaderboard and start notifying people that rewards can be claimed

Borrowers

  1. Get your DAO’s financials prepared before the event. Know your burn rate, current treasury balance, revenue per month, etc etc
  2. Ask your dev team to research the Spigot and Spigoted Lines of Credit and see if/how you can integrate it
  3. Stop by the Hydration Station in DAOist Bogota to talk with Debt DAO about your financing needs
  4. Get ready to shill (but not too hard) and describe your ideal deal to curators at the event
  5. IF you receive a Kong chip, come by the HydrationStation and talk to the Debt DAO team
  6. Await further instructions from Debt DAO. At some point after devcon we'll evaluate and rank all the curated borrowers and lenders and start notifying people that rewards can be claimed

Lenders

Give thought to the range of terms you would give to a borrower under various structures

  1. Interest Rate
    1. Drawn Rate
    2. Facility Rate
  2. Tenor
  3. Collateralization
    1. % of cashflows
    2. % min collateral ratio
  4. Ask your technical team to research the Spigot and Spigoted Lines of Credit to ensure a full understanding of the interactions as a lender
  5. Stop by the Hydration Station in DAOist Bogota to talk with Debt DAO about your strategy
  6. Await further instructions from Debt DAO. At some point after Devcon we'll evaluate and rank all the curated borrowers and lenders and start notifying people that rewards can be claimed

Experiment Analysis

Costs

Costs of a Curation Game for 200 people:

  1. Kong Chips - $ 1,345
  2. Branded coin boxes - $800? (We couldn’t order in time :’(, only had this idea 3 weeks ago!)
  3. Airdrop to Curators - XX.XX% $DEBT

BD/Sales for 1 person:

  1. $10,000 - $15,000 / month

Results

Curation Game revenue:

  1. TBD?????

BD/Sales revenue:

  1. TBD?????

Start your own Curation Game

We love open source and collaborative learning. We forked this idea from Coordinate and we hope you fork it from us and improve it even more. If you do, please let us know! We’d love to update these docs for others to learn.

Happy Slaying 👹

ARCHIVE

[ARCHIVE] Curation Game - OG DAOist Bogota
XGitHub

Dev Docs

Product Docs

Borrower FAQ

Lender FAQ