The Dao fund is the second line of defense on top of the Bond Mechanism. The DAO fund is controlled by the Developers 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 OWL AWAP is below 1, buybacks will be initiated by the DAO. These 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.
- When OWL AWAP is extremely high, the DAO will sell some OWL to help assist 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.