The fund controlled by the developers of BASED Finance that conducts buybacks and acts as a reserve to help maintain the peg.
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 BASED is below peg buybacks will be initiated by the DAO
- When BASED is above peg the DAO will sell BASED to to accumulate stables and prepare to buyback if the peg goes 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.