Announcing Our Investment in Goldilocks
We’re thrilled to announce that Hack VC has led the latest investment round in Goldilocks, a grassroots, community-first DAO on Berachain. Goldilocks stands out by bringing together day-one Berachain supporters, builders, and community members, all dedicated to developing and governing a unique set of DeFi primitives within the Berachain ecosystem: Goldiswap, Goldilend, and Goldivaults.
What is Goldilocks?
To understand the Goldilocks vision, it’s important to break down the protocol into its components:
- Goldiswap: a novel automated market maker that facilitates the trading of the Goldilocks governance token (LOCKS) and allows users to access part of the liquidity of their tokens at any time via interest free unliquidatable loans
- Goldilend: an NFT lending platform custom built specifically for the Bong bear (and rebase) NFT's
- Goldivaults: a yield tokenization platform that allows users to separate the yield and principal components of Berachain yield-bearing DeFi positions into two distinct assets that can be used across the Berachain DeFi ecosystem.
Each of these components introduces innovative mechanisms that set Goldilocks apart in the Berachain DeFi landscape.
Goldiswap
Goldiswap is the engine powering the trading and borrowing of the LOCKS governance token, which is central to the DAO’s operations. What makes Goldiswap unique is its novel approach to maintaining token value and liquidity.
- Price-Supporting Liquidity (PSL) and Floor-Supporting Liquidity (FSL) Pools: Goldiswap makes it possible for token holders to access a substantial part of the liquidity of their tokens at any time via unliquidatable interest free loans taken directly from the Goldiswap AMM itself. It achieves this by replacing the traditional uniswap style AMM model with a novel model in which there are two liquidity pools, the "price supporting liquidity pool" (PSL) and the floor "floor supporting liquidity pool" (FSL). While the FSL backs a minimum "floor price" for each token, the PSL supports the actual market price. The AMM is designed so that the amount of FSL backing each token (and hence the floor price) does not decrease. It is also designed to redirect small chunks of the PSL to the FSL over time whenever certain target parameters are hit.
- PRG Tokens for Staking Rewards: Instead of receiving additional LOCKS as staking rewards, users earn PRG tokens. These PRG tokens can be redeemed for the right to buy LOCKS at the floor price, ensuring that the LOCKS floor price remains undiluted even when staking rewards are claimed.
- Borrowing Mechanism: Users can borrow the Berachain-native stablecoin (HONEY) against their staked LOCKS at the floor price set by the FSL. This helps ensure that borrowing does not dilute the floor price and that loan liquidation for borrowers does not occur. As the floor price of LOCKS increases, users can borrow more HONEY against their staked LOCKS position, thereby accessing part of the increasing liquidity of their tokens without needing to sell their position.
Goldilend
Goldilend taps into the unique NFT ecosystem of Berachain, which has its roots in the Bong Bears NFT collection— a collection that started Berachain’s cultural movement and has subsequently grown to a market cap of ~$50M. Goldilend addresses a critical need by creating a secure, robust and highly liquid lending platform custom built specifically for Bong Bear (and rebase) NFT’s.
Goldivaults
Goldivaults enable users to trade the future earnings of yield bearing positions on Berachain's blue-chip DeFi protocols. Users can deposit assets into a yield splitting vault and the vault will automatically use the assets to create yield bearing positions on supported platforms.
The user will receive:
- Ownership tokens representing ownership of the deposited assets.
- Yield tokens representing ownership of the yield that those assets generate over the remaining lifetime of the vault.
The user is then able both to trade those tokens on partner platforms, and to use them across the Berachain DeFi ecosystem, immediately unlocking the liquidity of both their staked assets and their future yield, and enabling a variety of DeFi strategies.
In Conclusion
Goldilocks is a project built by the community, for the community. With its innovative mechanisms and user-centric design, it addresses the core needs of Berachain’s DeFi ecosystem from day one. At Hack VC, we believe in the long-term potential of Goldilocks and are excited to support this team as they continue to launch and govern future products within the Berachain ecosystem. We’re fully aligned with their vision and look forward to the impact they’ll have on the world of DeFi.
The information herein is for general information purposes only and does not, and is not intended to, constitute investment advice and should not be used in the evaluation of any investment decision. Such information should not be relied upon for accounting, legal, tax, business, investment, or other relevant advice. You should consult your own advisers, including your own counsel, for accounting, legal, tax, business, investment, or other relevant advice, including with respect to anything discussed herein.
This post reflects the current opinions of the author(s) and is not made on behalf of Hack VC or its affiliates, including any funds managed by Hack VC, and does not necessarily reflect the opinions of Hack VC, its affiliates, including its general partner affiliates, or any other individuals associated with Hack VC. Certain information contained herein has been obtained from published sources and/or prepared by third parties and in certain cases has not been updated through the date hereof. While such sources are believed to be reliable, neither Hack VC, its affiliates, including its general partner affiliates, or any other individuals associated with Hack VC are making representations as to their accuracy or completeness, and they should not be relied on as such or be the basis for an accounting, legal, tax, business, investment, or other decision. The information herein does not purport to be complete and is subject to change and Hack VC does not have any obligation to update such information or make any notification if such information becomes inaccurate.
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