For most of the major DeFi applications, Decentralized Autonomous Organizations (DAO) have now become the governance medium of choice.
Thus, it is important for investors who want to enter the DeFi space to understand the various DAOs running the show, which makes DeepDAO one of the most important tools any investor can have.
Why DAOs are becoming increasingly important in DeFi
The idea of decentralized autonomous organizations was inspired by the decentralization of cryptocurrencies, which are not controlled by a single central bank or government. DAO came into existence in 2016 and is aimed at eliminating the human factor in the organizational structure.
A DAO is essentially an automated system where decisions are being run by programming codes in the form of smart contracts on the ethereum platform. For instance, Venture DAOs, or those that invest in DeFi products, are being run automatically as it makes decisions on investments, capital allocations, and others depending on the instructions on its programming.
The main goal of DAOs is to keep human intervention during day-to-day operations at the minimum. This eliminates human error as well as potential manipulation making it a very efficient organizational structure.
With its advantages, over half of DeFi’s $1 billion capital is being managed by DAOs. Its use cases continue to grow every day as the structure is now being applied in open source software development, gaming, democracy, energy, freelance work, sports, healthcare, and insurance.
How DeepDAO can make DeFi investing a lot easier
There are over 2,000 DAOs in the DeFi space at the moment, each composed of thousands of members and managing increasingly larger pools of assets. Given such a scenario, those who want to participate and invest in DAOs would find it very hard to take a pick as even seasoned investors might not be up to date with the latest developments in the space.
This is where DeepDAO comes in. The team’s mission is to explore, rank, and analyze all DAOs in several dimensions to come up with comparative metrics for DAO performance, funding, legal status, or community involvement.
What Coinmarketcap did to tokens and cryptocurrencies is now being done by DeepDAO for DeFi. While Coinmarketcap is primarily a place to check rankings of tokens, DeepDAO likewise ranks and analyzes top DAOs across multiple metrics making it easier for investors to identify potential targets at a glance.
At the moment, Deep DAO is featuring DAOstack, Moloch type DAOs, and The LAO but the team plans to include other platforms and DAO types soon. There are even future plans to include DAOs on platforms other than Ethereum.