How does it work?

The simplified concept of how LobbyFi is operating is depicted below.

TL; DR:

1. Users delegate the voting power to LobbyFi

2. Parties participate in syndicate auction for / instantly buy the total voting power of LobbyFi

3. Depending on the outcome, the vote on the proposal is cast

4. The rewards are distributed among the delegators.

And a more detailed description...

At its core, LobbyFi is a marketplace for governance voting power, enabling governance token holders to "rent" their votes to interested buyers in exchange for financial compensation.

The Mechanics of LobbyFi

1. Delegation of Voting Power: Users who hold governance tokens in a DAO can delegate their voting power to the LobbyFi platform. This delegation is facilitated through the native delegate function of the governance token, ensuring a secure and seamless process. It is noteworthy to mention, that it in no way means locking the tokens - these are staying in the user's custody at all times.

2. Auctions and Instant Buys: LobbyFi offers two primary mechanisms for acquiring voting power:

   • Auctions: Interested buyers can participate in auctions to bid on the delegated voting power. The highest bidder wins the right to utilise the voting power for a specific proposal or period.

   • Instant Buys: For those seeking immediate access to voting power, LobbyFi provides an instant buy option, allowing buyers to purchase voting power at a predetermined price.

3. Casting Votes: Once a buyer has acquired voting power, the on-chain vote is being atomically cast The smart contract either casts the vote directly on-chain or signals the vote to platforms like Snapshot, depending on the DAO's governance mechanisms via an automated agent.

The Technology Behind LobbyFi

LobbyFi's smart contracts are designed to ensure the security, transparency, and efficiency of the GovernFi marketplace. Here is a comprehensive landscape of smart contract, just 3 of them:

• LobbyFiProxy: A UUPS proxy contract that enables seamless upgrades to the platform's implementation, ensuring adaptability and future-proofing.

• Implementation: The core smart contract responsible for executing direct buys and syndicate auctions, creating and managing proposals, and managing rewards for delegators.

• DelegationHoster: This contract receives delegations from token holders and executes the voting process on their behalf.

Benefits and Use Cases

LobbyFi offers a multitude of benefits for both governance token holders and those seeking to influence DAO decisions:

• Increased Participation in Governance: By incentivising token holders to delegate their voting power, LobbyFi enhances on-chain participation rates, leading to more robust and representative governance outcomes.

• Making Governance Tokens Sexy (again) with Risk-Free Revenue: Token holders can earn additional income from their governance tokens without having to trust any new smart contracts or expose their assets to risk.

• Democratised Influence: LobbyFi empowers smaller stakeholders and community members to participate in DAO governance, counteracting the influence of larger holders and promoting a more equitable decision-making process. In scenarios where large stakeholders propose actions that contradict the DAO's values, LobbyFi allows the community to collectively pool their resources and bid against these proposals.

LobbyFi's innovative approach to DAO governance has the potential to revolutionise the way decentralised organisations operate, fostering greater participation, transparency, and democratisation in the decision-making process.