DXdao | Introduction to DXdao

hello youth global hackers and uh welcome to our short video about dx dao i'm going to do my best to give you a short overview of dxdow and the products that we have and the opportunities that may make sense to hack on so to start with dxdow brief history it was launched in 2019 through a collaboration with gnosis and dao stack there was an initial staking period as it was called where people could lock up tokens to earn initial voting power in the dao the voting power is known as reputation it's non-transferable and that makes textile unique compared to many projects and that yeah the voters can't sell their their voting power they have to earn it through making contributions to dx dao so that was at the inception and then the the next step that was important for dxtel was to raise capital by issuing an erc20 token called dxt that happened in the spring of 2020 and over the course of d5 summer dxdow was able to raise 25 000 ether which powers its treasury today and puts the treasury upwards of 50 million dollars giving the external lots of capital to develop its suite of d5 products so uh i'll dive right in and talk a bit about the products uh that dx now is developing and also about how the external has actually taken over its own governance and plans to you know actually offer these governance tools as a service to the community no no plans to monetize those but everything that dxdot does is open source and the governance is very key aspect of of what dxdow does so but i'll start with the the product so there's a prediction market platform called omen uh and there's a dex called swapper and there's other things in the works but the only two that are live right now are swapper and omen so i'll start with swapper swapper is a dex that's based on a fork of unit swap v2 with a key modification to the smart contracts that enables the dow to change both the swap fee on individual pairs and the protocol fee across the board that is kind of fed back into the dow so so the swap fee is how much the user is paying to the liquidity providers and then the protocol fee is a fraction of that swap fee and the protocol fee is directed back to dx tao and um in this in the near future to the swapper guild so guild is what we call sort of a sub-dial that we're forming around individual products so swapper would be the first guild to go live for dx tau and when the guild is ready dxo will transfer ownership of the swapper protocol and of the fees derived from that protocol to the guild itself and the guild will be governed by the swapper token holders and this swapper token is the rc20 and so it has similar to many other projects out there it will be governed by the erc20 token which you could could potentially buy on the open market in addition to the uniswap v2 at the smart contract level that's the core with the core is based on you know core contracts you have periphery contracts which are uh include the router that handles um kind of the logic above the individual pairs um in addition to that txt has also developed farming contracts and it's referred to diy farming or do-it-yourself farming um and we call it diy farming because the user can go to the front end and create farming campaigns with a few clicks of a button on the smart contract level any erc20 token can be used to stake and any erc20 token can be used as the reward token what is exposed in the ui is the ability to use swapper liquidity provider tokens as the stakeable tokens and then any token as the reward token so if you're looking to build on top of swapper you could look at things that might be cool to do around the diy farming or you could potentially leverage the liquidity providing tokens that are available from the core smart contracts a recent development with swapper is the launch of the swapper token and the deployment to the arbitrom layer 2. so that is another area of active development within dx dow is how to bridge liquidity across chains um how to make that easier in the ui um yeah so in addition there's also a stats website txtats.edu that exposes information about uh the trading on swapper so yeah if you're looking to build upon swapper those are the kind of elements to think about and how to tie together and where to build on it the next big product that textile has is omen which is a prediction market platform so again at the smart contract level this is based on the conditional token framework by gnosis the conditional token framework is very flexible and powerful and allows the allows you to create conditions which have any number of outcomes right so you can ask a question who will be the president and you could have outcomes candidates a b c d and um and using that basic building block you can then actually create markets around that and so what omen does is it supports um two types of markets uh uh two two types of outcomes and then creating allows markets to be built on that so the two types of questions you can ask for either categorical or um scalar so categorical has discrete outcomes like a b c d uh so on and so forth you know either you know hillary clinton or donald trump will win the election and those are the discrete categorical outcomes the other type of question you can ask is one that has a scalar outcome so this could be like what will the price of ether be at the end of the month and it could uh and the answers could fall within a range such as like two thousand dollars to five thousand dollars and so that's why it's called a scalar because the the outcome can happen along the scale uh between the two endpoints but it is necessary to specify two end points um so once you set up the the condition the question uh with either scalar or categorical outcomes the with the other piece of omen is to have a market that is created around that and omen will set up uh its own variety of a fixed product market maker or or automated market maker so very similar to the to the table markets that you see on balancer which is a generalized version of the markets that you see on unit swap so constant product markets that can have more than two tokens all the way up to eight tokens trading within that market and and yeah and oman has its own variety of this where the liquidity uh is deposited first the outcome tokens are minted from the conditional token framework and then all of the outcome tokens are deposited into the fixed product market maker so what is trading on the fixed product market maker is not the underlying collateral that was used to enter but rather the outcome tokens which are either you know uh a b c d for the catechol categorical markets or long and short for scalar markets so so yes scalar markets have tokens as well and they're they're both long and short and those are the only two that you could have in a scalar market um and then at the front end yet of omen on omen.etha link it enables the users to to create these markets and to also participate in them um in addition to the market and the product in in the sorry in addition to the conditions and the fixed product market maker omen at the smart contract level also has to deal with how to answer the questions this is done through reality.eth which acts as the oracle so reality.

etha operates in a pretty simple way of anybody can come and stake on the outcome so if you think the answer is a you put down a little bit of stake saying it is a and if somebody disagrees with that answer they can come and stake on say outcome b by providing an increased amount of stake and this game could continue add infinitum um but there is a short uh a circuit breaker mechanism for that uh oracle answer uh because if if say people feel that the answer is trying to be like stolen manipulated by a whale you can actually expend a certain amount of capital to call the arbitrator so it will kick it out of the reality system into the arbitration system to be decided once and for all by the arbitrator itself right now the arbitrator is either dx now itself and through the governance the voting of dx dow or using claros court so the claros token holders uh if if claros was used as the arbitrator would be deciding the outcome uh when arbitrator is called so a fairly complex system the front end also provides some additional functionality including the ability to trade into different collateral tokens such as like die into c die and the reason to do that is to have an interest bearing collateral token so that while the participants are in these prediction markets their capital is continuing to earn money instead of just sitting there locked up in the prediction market doing nothing um so so yeah lots of cool primitives there in omen lots of food for thought if if you wanted to try to build something on top of it something to do with prediction markets you could think beyond the kind of core pieces and more abstract ways of how to use prediction markets in innovative ways maybe for governance or helping to inform decisions in other ways so the final topic i'd like to touch on is the extent of governance itself which in the future could be something used by by others everything again is open source takes now adhering very stringently to a strict open source philosophy of everything the front ends the smart contracts being open source and accessible by the public to develop on top of so um i'll explain first the extent governance model and then some of the other things we're doing in addition to that so dxtab itself is governed today by reputation which i explained earlier is a non-transferable token that is earned by making contributions to dx dow differing uh you know providing contrast for the excel from other liquid token governance models that are more common however deekstyle has this issue now where txt token holders have no say in governance so there are plans uh in dxdow to develop what we are calling governance 2.0 which will come combine uh both dxd and rep holders into uh having the governance power over dxtau so the primitives of you know dxd the financial token and reputation the one earned by providing contributions to doing work for the excel will remain in place but what will be added is a new way of calculating governance power that will derive from both txt held by the governor and their reputation health and it will require people to have in order to have voting power it will require the participant to have both dxd and reputation so in one way you could think of this as different personas right it would support a speculator or investor who would want to just hold the financial token uh uh it could support a worker who just wants to get their reputation and have recognition for their work you know in order to build their resume credit for other things within blockchain and also and importantly it would support a persona that acts as governing the system right so this would be somebody who's uh truly interested in participating in governance not just a speculator not just a worker but somebody who has a vested interest financial interest in the network and has proven their ability to contribute value and on top of that wants to be a governor and participate in voting that is the the core idea around kubernetes 2.0 for dx style itself that is actively being developed uh for the future uh right now there's the existing system is is based on the dow stack smart contracts which uses the reputation in addition to that core governance power there's a concept in from the dowstec system known as holographic consensus and what this is useful for is providing a way to filter votes and focus voter attention on on issues that needs their attention obviously there's a lot of smaller things that need to be done on a more frequent basis and some more important decisions that can be really pivotal for the dow and in order to enable operations it's important to only consume the necessary bandwidth from the voters right so what holographic consensus allows is for uh uh proposals to go into what is called a boosted state and so when participants up up stake they provide some stake onto proposals and it can go into a boosted state and when in a boosted state a proposal can pass with only a relative majority which means only more votes for it than against it so it could be a relatively small amount of total voting percentage but as long as more is in favor a boosted proposal can pass at the end of the boosted period uh and so this enables you know less you know controversial less important proposals that are necessary for day-to-day operations to get passed through the dow without consuming the entire bandwidth of all the voter participants so at the extent we think the holographic consensus system is very important for enabling scalable operations and that's a key part of the governance that exists today and will continue to exist in governance 2.0 one key difference though between the current system and governance 2.0 is that the current system uses gen as the staking token that so when the user participant is is staking on the proposal to say it should get boosted they're using gen token today and in the future with governance 2.

0 it will be the dxd token which is the dxdot token that is used to do the staking so that that's um the dxdot governance moving towards governance 2.0 built originally on dow stack codenamed currently dx vote for the one being actively developed by dx dao in addition to that i mentioned earlier that the products will eventually have their own guilds right which will be their own governance system so to support the guilds dx down has also developed a guild governance contracts which support governance by erc 20 tokens having certain quorum thresholds uh and et cetera but that system is a little simpler and does not include holographic consensus doesn't include non-transferable voting but this system will be used for the individual product governance components yeah and with that i think i've covered the key live elements of the dx style ecosystem that could provide hackers like yourself building blocks uh for the for the hackathon and there's a lot of cool stuff that you can start thinking about how to combine these products into each other how to extend them how to you know create efficiencies whether it's through better governance or deployments of dapps or better statistics around the exchanges or the uh or the prediction markets um yeah or or who knows on how what other ways you might be able to combine them to create new products so if you have any ideas or questions about this definitely reach out to any of the dxdot contributors in the eth global discord and hopefully this this provides you with some food for thought and an initial idea on how to engage with the dxtel ecosystem and yeah happy to answer questions myself and there's several other contributors on on the discord so i hope you hope you found that informative and happy hacking and good luck