The Tie Research
Sandclock: Innovating Philanthropy Through Crypto Primitives
By Gustavo Lobo
May 26, 2023
- Our friend John stakes $100,000 inside one of Sandclocks stablecoin vaults. Let’s assume the APY meets their target, at 30% (the actual APY will depend on the vault used, as each vault consists of a different yield strategy).
- John decides he wants to donate 20% of his yield to a charity foundation of his choice.
- After one year, Sandclock has donated $6,000 of his $30,000 yield profit. As John’s donations go through, Sandclock also automatically delegates QUARTZ based on his donations to the Sandclock DAO on his behalf. This gives him governance voting power, along with more exposure to QUARTZ.
- Auto-compounding yield
- Directing portions of their yield to different addresses
- Zero-loss donations
- Bootstrapping liquidity for new projects by incentivizing users to direct a portion of their yield in exchange for tokens.
- Use Sandclock to build up an LP or staked position on a different yield platform, such as Bancor (I.e., sending 80% of your yield into a LINK/BNT pool)
- Diversify your portfolio through Sandclock to automatically sell your yield into an asset of your choice.
- Pay yourself periodically with yield into a pre-paid debit card.
- Automate delta-neutral strategies
- 7% of $QUARTZ total supply is allocated to OTC sales. Sales vest over 3 years, and the team will only call on them if they run out of development capital.
- 30% permanently locked for charity mining, as discussed earlier.
- 2% permanently locked for insurance.
- 5% permanently locked & staked. Yield is redirected into charity, voted on by governance.
- 30% distributed to the treasury for protocol development and liquidity mining.
- 20% allocated to the team, vested over 3 years.
- Treasury Management
- Partnerships/Integrations
- Quarterly charitable donations (through the treasury)
- Pools & Parameters modification
- Christoph Michel (top 4rena leaderboard auditor)—Audit File
- Solidity and CosmWasm audits done by Solidified & Oak Security(formerly known as Cryptonics)—Audit File
- Contract signed with Trail of Bits, who arguably has one of the best track records in the space. No confirmed date, but we can expect another set of audits to be done in May or June.
- Sandclock will be offering built-in insurance for reduced APY to institutions (and later made available to everyone). There is institutional interest from bank treasuries, who will join a pilot when Sandclock is ready.
- The 20% performance fee is not set in stone. Governance voters have the power to change this. Cristiano mentioned that once deployed on Starknet, performance fees should decrease due to inherently lower gas fees.
- Sandclock has partnered with OHM, and has been using Olympus Pro bonds to build their POL (Protocol Owned Liquidity). They also have plans to utilize UMA’s KPI options to incentivize liquidity. Further reading here.
- Sandclock spoke at the 26th Annual United National General Assembly (UNGA) in NYC. Further reading here
- Inc Magazine recently featured Sandclock. Article here
- Proper certifications necessary for NFT Tax Receipts are already in place with the IRS. Since Sandclock first appeared, there has been a big emphasis on being regulatory compliant.
- In August 2021, Sandclock hosted a 2-hour Philanthropy summit, with guest speakers including Raoul Pal, Do Kwon, Kevin O’Leary, and more. Recording link here
- Sandclock is working together with Burocratik, a world-renowned digital branding company, to create a seamless user experience and new UI.
- v1 is launching within the next month, although it depends on the final audits.
- Sandclock’s vaults will support USDC, UST & DAI at launch with a projected APY of 30-60%.
- Sandclock's flagship strategy is basis trading with PoS (proof of stake). When funding rates are favorable, capital is used to short perpetuals, buy spot and stake it. Combined with leverage, it will be interesting to see how this strategy functions in real time as they scale it through the inclusion of other PoS assets like ETH, LUNA, AVAX, etc
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