FIP 43 - FRAX <> RenaissanceDAO Partnership

TLDR

RenaissanceDAO partners with FRAX to bridge FRAX liquidity to Aurora.

SUMMARY

RenaissanceDAO will create an ART-FRAX pool and allow bonding with FRAX to users. Once enough liquidity has built up in the ART-FRAX pool, we want to extend this partnership through AMOs. FRAX expansions are sent to this AMO to purchase and stake $ART. The AMO will increase FRAX’s balance sheet and improve ART-FRAX liquidity. RenaissanceDAO benefits from accumulating stable coins in the early stages and presents a creative investment opportunity for FRAX to provide liquidity in the NFT market. The purpose of the Renaissance <> FRAX partnership is to grow algorithmic stablecoins into Defi and NFT markets together.

WHY FRAX <> RENAISSANCE?

The RenaissanceDAO is an upcoming community-driven project designed to drive innovation in NFT ownership by utilizing the time-tested foundation of OHM’s reserve currency on Aurora . To date, we are a community of twenty eight-thousands, who rally behind the convergence of art, blockchain technology, and autonomy via decentralization.

Our vision is to create and own the largest decentralized NFT liquidity pools, using DeFi primitives, that facilitate trading of fractionalized NFTs. We believe that this approach lowers existing barriers-to-entry for numerous market participants who are currently unable to interact with “blue-chip” NFTs, which continue to highlight the strong negative correlation between risk and price in the NFT ecosystem. In this sense, fractionalization allows buyers to allocate their funds to safer assets—positions that can be entered and exited with ease via designated liquidity pools.

Renaissance’s token, $ART, is built to accelerate and aggregate investment into the digital art space. Proceeds from issuances of $ART tokens are funneled into purchasing NFT collections, decided by the community of tokenholders. Overtime, as the Treasury begins to amass a collection of NFTs, the expectation is for the $ART token to act as an index token of all the underlying digital art assets.

TECHNICAL DETAILS

DAO governed NFT purchases - 20% of bond profits are allocated to the NFT treasury. These funds will be used for NFT purchases that are directed by active community voting at each epoch. The ability to participate in governance will be obtained through staking, and all votes will be obscured through zero knowledge proof until the NFT purchase has completed.

Fractionalized NFT liquidity pool / decentralized NFT exchange - Purchased NFTs from the treasury will be fractionalized and listed for internal IDOs (stakers only) to establish liquidity pools, which can be utilized by any user to freely trade the fractionalized shares through our NFT-Automated Market Maker (AMM).

Renaissance DAO has chosen and will continue to use FRAX as the predominant and first stablecoin to be used in the treasury. We fully support the innovation, vision, and community of FRAX.