The DeFi Collective is partnering with BottoDAO

The DeFi Collective is excited to announce a strategic collaboration and partnership with BottoDAO, the community governing Botto Project.

What is Botto?

BottoDAO is a decentralized autonomous organization (DAO) that governs Botto, the first decentralized AI artist built on Ethereum that creates artwork in collaboration with human input from its community of engaged stewards.

Botto launched in October 2021 and generates art weekly, which the DAO community filters through active voting to help train Botto and ultimately select favored artworks for sale. BOTTO is the project’s governance token, and a portion of Botto’s revenue is shared with voters as active rewards.

Ethos Alignment

• Community-driven approach: BottoDAO bolsters BOTTO’s long-term liquidity strategy for the community’s overall benefit and in alignment with The Collective as a committed crypto native partner versus more costly and extractive liquidity support arrangements.
• Innovation: BottoDAO can focus on pioneering the development of Botto as an artist, while The DeFi Collective leverages its experience in DeFi to bolster Botto’s visibility in the broader crypto space through the introduction of novel mechanisms enabled by Liquity V2’s BOLD stablecoin.

The BOTTO/BOLD Partnership Strategy

This collaboration introduces the BOTTO/BOLD pool on Aerodrome.

For BottoDAO, the pool bolsters Botto’s presence on Base’s growing ecosystem and reduces transaction costs. For The Collective and Liquity Protocol, this will allow BOLD to be the primary stablecoin swap route for BOTTO, thereby facilitating wider accessibility to stablecoin users thanks to Coinbase’s recent integration of trades for tokens on Base.

This liquidity pool will be a vAMM pool with 0.3% swap fees. BottoDAO contributed $25K in BOTTO tokens from their mainnet Protocol-Owned Liquidity (POL), while the Collective matched with $25K in BOLD, creating a robust liquidity foundation on Aerodrome.

Sustained Voting Support: The Collective commits 100K veAERO voting power to support the BOTTO/BOLD pool weekly, ensuring consistent emissions and attractive yields for liquidity providers.

Vote Incentive Allocation: 20% of the BOLD allocated for Aerodrome bribes from our Liquity V2 PIL initiative will be dedicated to supporting the BOTTO/BOLD pool, amplifying its attractiveness to veAERO holders.

Success Metrics

The Collective will evaluate this partnership based on:

• Liquidity Health: Maintaining deep, stable liquidity that supports seamless trading and integration opportunities.
• Trading Activity: Consistent volume demonstrating real utility and user adoption.

The Collective looks forward to supporting BottoDAO’s creative vision while furthering both BOTTO’s and BOLD’s adoption across diverse use cases.

Particularly, this partnership seeks to support Botto’s crypto and DeFi related awareness as highlighted in the Billion Dollar Robot economic analysis published by CyborgDAO in early 2024, wherein it was noted that:

“Botto’s design skillfully blends artistic elements with aspects of well-known DeFi protocols, including token governance, staking rewards, and liquidity mining, anchored by a core protocol token. The incentives linking its governance network, NFT collection, and revenue sharing are robust. These elements should be leveraged by the core team members and DAO holders to promote Botto within the larger crypto community. As a decentralized autonomous artist, Botto represents one of the most innovative and exciting crypto primitives currently being developed on Ethereum, with the potential to create lasting impact and inspire entire sub-ecosystems.”

The Collective believes this collaboration with BottoDAO is especially timely in light of recent tweets about the need for human input in AI development from Vitalik Buterin, the founder of Ethereum, as well as from The Ethereum Foundation on AI agents. Notably, Botto’s development trajectory has incorporated both human input in training Botto as well as building out Botto’s agent system.

Ultimately, we anticipate this collaboration will inspire additional cross-vertical partnerships and demonstrate the power of the decentralized ecosystem to create positive-sum outcomes for all participants. The future of DeFi lies not in isolated protocols, but in thoughtful collaboration between projects that share common values and complementary strengths, as this partnership hopes to exemplify.