TL;DR: ADAM aims to address the current loopholes of digital asset management. ADAM Vault is a decentralized token vault for any on-chain institutions, organizations and DAOs. ADAM DAO is the community who will govern the operation of ADAM Vault.
What does ADAM stand for?
Association of Decentralized Asset Management (ADAM) is created to enhance the infrastructure of digital asset management.
What is ADAM Vault?
ADAM Vault is a DAO incubation platform and a decentralized token vault. It is launched by ADAM with the purpose create DAOs in the simplest way and manage their assets through a fully on-chain treasury tool.
ADAM Vault is an all-in-one solution for the asset management of any institution and organization, which provides a wide variety of features: building a DAO, on-chain voting, smart-contract guarded execution, treasury management, minting member tokens, setting-up liquidity, listing on CEX and more. The vault is based on the Ethereum blockchain and will be deployed to Layer 2 zk-rollup for enabling lower gas fees for DAO creations and executions at the later stages.
The next trend on Web3 — DAOs
Web3 has been recognized as the mainstream of the future societies. It isn’t only representing a new format of the internet, but directly affecting how we are living and interacting with each other daily. Meanwhile, DAOs are becoming the next trend on Web3 after crypto, metaverse, NFT, etc.. They are the major way for communities on Web3 to exist in, i.e., where people exchange all their opinions, values, and information in the future.
By investigating the drawbacks of the existing Web3 communities, we have come up with 2 significant elements for developing a DAO successfully — Security and Liquidity
When it comes to the security of a DAO’s asset, people usually would think of its governance model at first. But what really matters is actually the safety of their treasury.
The most widely adopted treasury model now is the multi-signature treasury, which intends to avoid theft by getting more members’ decisions involved. Yet, it is not effective in stopping anything and only a few members’ consents are required to still pull the rug out from under you. Although the core idea behind blockchains and cryptocurrencies is “trustless,” depending solely on the judgments of a small number of individuals falls well short of the goal.
Additionally, tiny communities have little room and few opportunities to utilise their potential. Despite being in a decentralised environment, tiny DAO governance tokens have little market liquidity for members to sell and transfer. An actual implication of tokenization should be unleashing all of different communities’ values through liquefying their governance tokens
ADAM, therefore, is created to cultivate the truly trustless DAOs with sufficient liquidity.
How does ADAM work?
To know more about how ADAM Vault supports DAO creation, here are its 5 key features:
1. BUILD
With ADAM Vault’s templates, anyone can establish a DAO with ease. All of the templates offer the finest DAO governance and configurations, which have been examined by lawyers and governance specialists. DAO developers merely need to select modules and set preferences without writing any code in a simple user interface. The DAO configuration might also be altered without the use of templates.
2. VOTE
Voting and execution are always separated in modern DAOs because of the disconnection of their platforms and the absence of on-chain processes. The users of ADAM Vault can raise on-chain proposals and vote in their DAOs through our portal directly. By encapsulating all the information of the proposals and voting processes in a smart contract, ADAM Vault can address the problem. So, the smart contract would restrict what the executors could do with respect to the DAO settings and the treasury assets when they are executing. This is putting a halt to rug pulls and building a new DAO 2.0 standard.
The user interface for producing a Proposal is comparable to that for constructing a DAO, since both employ modular, code-free templates. There are different Proposals available for various goals. For instance, the General Proposal allows for voting on general issues, the Governance Proposal modifies DAO settings, and the Budget Proposal authorises treasury expenditures. Budget Proposal, which is intended to take the role of multi-sig protocols, is a type of pre-approved authorization for spending treasury assets. Airdrops, prize distribution, token vesting, wage distribution, investment authorization, etc. are all uses for the Budget Proposal.
3. PAY
No DAO asset can be moved out from the treasury while in default. The Executors were only permitted to send, trade, and stake DAO assets with an approved Budget Proposal. They may then administer the treasury in the DAO Wallet on ADAM Vault, as if they were managing their own assets, in accordance with all the specifics of the approved Budget Proposal.
4. MINT
With the personalised tokenomics, creators can quickly generate member tokens for their DAOs. To prevent securitisation concerns, the token value is based on the DAO membership value but not the treasury value. To achieve this, DAOs on ADAM Vault have the treasury assets within self-custodied accounts of every DAO Member. This has avoided the current problem of most DAOs’ treasuries — they were constructed as a commingled pool of assets.
5. LIQUIDITY
To allow early liquidity for new DAOs, ADAM will 1) pair new DAOs’ tokens with ADAM’s utility token, $ADAM, to create liquidity pools on DEXs, and 2) partner with multiple CEXs to enable a fast-tracked approval process for token listings of DAOs on ADAM Vault. Our DAOs will be acknowledged to have better governance.
To know more, read ADAM’s Litepaper.
DAOs on ADAM are safer.
DAOs are managing pooled funds in a crypto-native way, but their governance structure is at a rudimentary stage. They are facing numerous developmental difficulties. A growing number of scandals and rug pulls have occurred as a result of the lack of restrictions on DAO executors and managers.
ADAM Vault will restructure DAO governance practices to safeguard the interests of all DAO members on our platform. No DAO asset can be transferred outside of the DAO Wallet by default. The DAO executors can only move DAO assets with an approved budget proposal. To determine the timing, locations, and amounts for the transfer of DAO assets, these constraints are outlined in a budget proposal.
Putting the entire process from proposal creation to vote to execution on-chain, guarded by smart contract but not human.
With the feature of self-custodied account for each DAO member, the DAOs on ADAM Vault are further set apart from the market. Although the majority of DAOs are designed as a commingled pool of assets, the assets of every DAO member are completely safeguarded on ADAM Vault. Every Member’s account is a managed/discretionary account that is exempt from audits from a legal standpoint.
Who governs ADAM and its tools?
ADAM DAO is a decentralized autonomous organization that governs the development of ADAM. Progressive decentralisation will allow $ADAM holders to participate in the ADAM decision making.
Where can I use ADAM?
Only invited parties can access and use ADAM in the current stage. Stay tuned to our Twitter, and join us on Discord for updates.