USD2 & Lago DAO Launch
||| LDP#001 PASSED on 2022-09-12
Date Proposed: 9/10/2022
Date Passed: 9/12/2022
LDP#1 pertains to:
• Ratifying the Lago DAO
• Deploying USD2 decentralized stablecoin contracts
• Deploying an interface for users to interact with the USD2 contracts
• Allowing Kaddex DEX liquidity providers to accrue future LAGO token rewards for providing liquidity in the USD2/KDA pool
This proposal marks the beginning of the Lago DAO, a decentralized entity that exists to govern and safeguard the operations of the USD2 decentralized stablecoin. Henceforth, Lago DAO operations will be carried out as a consequence of the Lago DAO Proposal process.
The custodian of the Lago Protocol is Lago Finance Foundation, established in the Cayman Islands. The articles of association of the Lago Finance Foundation require its supervisor to operate on the basis of the advice received by the Lago DAO. This means the Lago Finance Foundation is the custodian and steward of the wishes of the Lago DAO.
The operations of the Lago DAO, including voting procedures, quorum, and other items will be spelled out further in future LDPs.
The first item proposed is for the Lago Finance Foundation and/or its subsidiaries to deploy the USD2 decentralized stablecoin contracts on to the Kadena blockchain as well as an interface to interact directly with those contracts to enable permissionless mint and redemption operations.. This will mark the TGE event of the USD2 stablecoin.
This interface, available at https://usd2.lago.finance/, shall restrict access to users in sanctioned countries and by certain sanctioned wallets . It will also include the following disclaimer: “By using this product, you hereby acknowledge and agree that this product is in beta form and has not been reviewed for bugs, viruses or any other harmful code and may not meet any performance or reliability standards or otherwise be error-free. Your use of this product is at your own risk and, to the maximum extent permitted by law, Lago (BVI) Inc. (and its affiliates and subsidiaries and their officers, directors, employees, and contractors) disclaim any and all liability to you and/or any third parties for the same. This product is being provided to you “as-is” and “with-all-faults” and we hereby disclaim all guarantees, warranties, and/or representations of any kind, whether express or implied.”
The second item proposed is for the Lago Finance Foundation to incentivize minting and liquidity of USD2. Specifically, to reward users with LAGO tokens who provide liquidity on the Kaddex DEX in the USD2/KDA pool. The amount proposed for this purpose is 0.5% of total LAGO token supply, exactly 5 million tokens, over a period of six months. This incentive is not available to U.S. Persons.
These LAGO tokens will both help to deepen the liquidity of USD2 as well as to further decentralize the Lago DAO, since their holders will be able to vote on DAO proposals.
The LAGO token rewards accrue for a certain amount of time (based on a LAGO TGE, as sanctioned by a future Lago DAO proposal) and thereafter can be claimed by their prospective owners. Any tokens that are not claimed within a month of the proposed distribution date will be returned to the Lago DAO treasury. All efforts deemed reasonable and prudent will be employed to avoid distributing tokens to U.S. persons.
Lago encourages the entire Lago Finance community to participate in this Lago DAO proposal, including by discussing it in the Lago DAO Discord Server, #dao channel.
To vote in this Lago DAO proposal, the voter must have a future claim to LAGO tokens as of the LAGO TGE event. Votes will be directly related to the total amount of future LAGO tokens assigned to the voter. Each LAGO token will count as 1 vote toward the respective option chosen.
9/11/2022 – 9/12/2022
Lago DAO Discord Server, #dao channel
Vote Success Criteria
50% + 1 of votes for Pass
Vote Failure Criteria
50% + 1 votes for Reject