# Allo Ideas

## Elastic Funding

Elastic Funding is a decentralized funding platform that applies principles from elastic restaking to enable fractional capital commitments, risk diversification, and dynamic fund reallocation. With threshold-based activation, elastic slashing, and incentive-driven diversification, it enhances capital efficiency and mitigates systemic risk in decentralized project financing.

[Litepaper](https://hackmd.io/@carlb/elastic-funding)

#### **Use Cases**
1. **Decentralized Project Crowdfunding** – Startups and DAOs can raise funds dynamically while reducing risk for investors through fractional funding.
2. **DeFi Protocol Treasury Management** – DeFi projects can allocate funds efficiently across multiple initiatives while maintaining liquidity.
3. **Risk-Managed Venture Funding** – Crypto VCs and DAOs can diversify investments across multiple projects while utilizing elastic slashing for risk mitigation.
4. **Public Goods & Grant Funding** – Organizations funding open-source projects or public goods can ensure capital efficiency with reallocation mechanisms.
5. **Community-Governed Investment Pools** – DAOs and investment communities can create diversified, self-balancing funding pools with threshold-based activation.
6. **Lending Protocol Collateral Management** – Lenders can use dynamic reallocation to protect capital when borrowing projects fail.
7. **Tokenized Real-World Asset (RWA) Funding** – Investors can distribute capital across tokenized assets like real estate or renewable energy projects.

#### **Target Customers**
1. **Decentralized Autonomous Organizations (DAOs)** – Looking to fund ecosystem projects with risk diversification. *(Could potentially be an AragonDAO Plugin)*
2. **Venture Capital (VC) Firms & Investment DAOs** – Seeking efficient capital allocation across multiple blockchain startups.
3. **DeFi Protocols & Treasury Managers** – Managing liquidity and treasury funds with flexible capital allocation.
4. **Crowdfunding & Grant Platforms** – Adopting more capital-efficient and resilient funding models.
5. **Institutional & Retail Crypto Investors** – Interested in structured, risk-adjusted investment opportunities.
6. **Web3 Incubators & Accelerators** – Providing diversified funding structures for early-stage blockchain projects.

#### **Alternative Business Models**

1. **Success Fee Model** – Take a percentage of successfully funded projects, incentivizing the platform to attract high-quality projects and funders.
2. **Staking & Yield Generation** – Require funders to stake the platform’s native token to access investment opportunities, with staked assets earning yield from transaction fees or protocol incentives.
3. **Enterprise & White-Label Solutions** – License the Elastic Funding technology to DAOs, VCs, or DeFi platforms that want to implement custom funding mechanisms within their ecosystems.

## Domain Allocation Morpho Vault
The Domain Allocation Morpho Vault is a yield-based funding mechanism that distributes passive yield from deposited USDC to approved projects. By leveraging Morpho Vaults, it ensures sustainable funding without depleting the principal. Projects submit funding requests, which are reviewed and approved via a multisig governance process.

The amount of funds distributed to projects every month is determined by the size of the principle in the vault.

- USDC Tokens are transferred to a Morpho Vault where they generate ~8% yield
- 8M USDC in Vault = ~53.000 USDC per month in yield to distribute to projects
- Projects submit funding requests
- Safe Multisig approves funding requests (configurable threshold and signers)
- Configure min and max amount that applications can request to determine the maturity of the projects that are eligible

Inspired by Octant (yield-based funding) and Celo Proof of Ship (monthly allocation pools).

Vest per milestone completed.

## Alloy
A bottleneck in traditional grant-making processes is the manual review of large volumes of proposals. By applying AI models to pre-screen submissions, the system can flag low-quality or misaligned proposals early, and offer suggestions to improve them before they are submitted. This helps domain experts focus on high-potential applications, reducing administrative overhead.

## aida (AI Domain Allocation)
Automatic Domain Allocation where pools are created with KPI targets, for example # transactions. Projects submit proof that is researched by AIs that come up with decisions.

## AlloVerify

KYC and KYB for Projects seeking funding. Manages all the legal compliances for payouts of funding.

Could be built on Stripe Identity:
- https://docs.stripe.com/connect/identity-verification

Bridge.xyz would be ideal if we can get access:
- https://www.bridge.xyz

## DeepFunding UI

[Moved to Deepfunding UI](https://hackmd.io/@carlb/deepfunding)

---

A UI where anyone can upload a dependency graph + weights and run a funding round. For example DeepFunding (OSS), Music, Citations, etc.

The DeepFunding UI enables anyone to create a funding round for a project and its dependencies.

The platform is composed of a set of building blocks:
- **Dependency Graph** - Includes GitHub projects and their dependencies. Selecting one node will list all projects it's dependent upon. [Link to GitHub Dataset](https://github.com/deepfunding/dependency-graph)
- **Weights** - these weights come from either human jurors or AI models. They determine the importance of each dependency for a project. Platforms like Pond or Kaggle are used as leaderboards to measure the efficiancy of the model compared to human jurors. [Link to Pond competition](https://cryptopond.xyz/modelfactory/detail/2564617)
- **Distribution** - tokens are sent to the projects in accordance to the weights. Ideal would be to send to a GitHub repo without knowing any wallet address. Drips might have a solution to this [Drips Claim GitHub repo docs](https://docs.drips.network/get-support/claim-your-repository/). If not, a solution for this should be built on Allo.

#### Example User Flow

1. **Select Project** - a user selects a project to fund and is navigated to a page that lists all of the project dependencies
2. **Funding Amount** - enter an amount of funding (and token)
3. **Choose Model** - choose a model of weights that determines how much each dependency should receive compared to the others
4. **Distribution** - transfer tokens to each project calculated as: `amount = total funding amount × weight`


## Simple RetroFunding / Bounties

[Moved to ADA - Allo Domain Allocation](https://hackmd.io/@carlb/ada)

---

Instead of Rounds that happen every x months. Keep it ephemeral and flip it on it's head where people instead ask for what they want to see and fund them (bounties).

Projects can then apply to bounties and receive upon approval. Each bounty has a set of approvers where for example 3/5 must approve (could be a safe multisig for simplicity and trust).


## Prediction Market as a Service
Make it easy and simple for companies like X.com and WeatherX to implement prediction markets in their software.

Like Stripe but for Prediction Markets.

Could be built on UMA:
https://docs.uma.xyz/developers/optimistic-oracle-v3/prediction-market

## AlloDAO Futarchy

*Note: I haven't read the paper by Robin Hanson yet so this is written with limited understanding*
> https://mason.gmu.edu/~rhanson/futarchy2013.pdf

1. Community suggests Objective Functions
2. Voters use quadratic-voting to determine the important ones
3. Humans + AI Agents create proposals in alignment to the agreed upon Objective Functions
4. Humans + AI Agents place bets on the proposals they think will have impact towards the Objective Function the proposal targets.