Revenue-as-a-Service (RaaS)?

Protocol growth in DeFi has been (and continues to be) based upon TVL and the resulting yields. From a protocol perspective, more is needed for adoption and scalability. The issue of protocol-owned liquidity has been innovatively solved by Olympus Pro (yes we are ohmies). Fiscus DAO increases protocol and token revenue through solving the off-chain vs on-chain dilemma. (i.e. revenue can be generated off-chain systematically and to scale).

The solution that Fiscus DAO accomplishes brings off-chain legacy financial structures on-chain via smart contracts, NFTs and decentralized insurance.

The Past:

Off-chain structured finance solutions have evolved over the last 30 years to provide riskless solutions to providers of collateral (organizations and investors). A simplified example of this is described as the following:

• Borrower Bob seeks to build a solar farm.
• Borrower Bob receives financing approval.
• The financing mechanism (project finance arranger) requires a “set aside” or collateral reserve equal to 10% of the project cost.
• Borrower Bob seeks an Organization to partner and set aside the reserve requirement.
• The set aside / reserve is placed in escrow (legacy form of a smart contract) and remains untouchable by Borrower Bob.
• Borrower Bob is willing to pay a premium for the set aside.
• The premium can be paid to the Organization from the financing itself or from revenue or additional financing derived from the project.
• Borrower Bob pays the Organization a premium of X% and returns the principal amount.
• Organization can receive principal and premium upon the closing of the financing mechanism, providing zero project related risk to the Organization.

End result: Organization receives principal and premium (revenue) of X% within X days with the risk being limited to the opportunity cost if the financial mechanism fails to perform.

And now for something better…

The Present (Fiscus DAO):

On-chain solution structured as Revenue-as-a-Service (RaaS). A simplified example:

• Borrower Bob seeks to build a solar farm (real world asset).
• Borrower Bob receives financing approval (term sheet/approval letter verifiable on-chain)
• The financing mechanism requires a “set aside” or collateral reserve equal to 10% of the project cost.
• Borrower Bob seeks an Organization (Fiscus DAO or Protocol) to partner and set aside the reserve requirement (in DAI/native token)
• The set aside / reserve is placed in a smart contract with smart contract insurance.
• Smart contract performance insurance is arranged (offsetting any opportunity cost).
• Via the previously agreed upon smart contract Borrower Bob agrees to pay the premium and principal to the Organization (Fiscus DAO or Protocol).
• The financing mechanism (project finance arranger/oracle) funds the smart contract as agreed (ETH/OHM/DAI).

End result: Organization (Fiscus DAO or Protocol) receives principal and premium (revenue) of X% within X days.

Additionally, the v2 and v3 could include:

• Entire smart contract could be sold as a bond
• Ongoing revenue (paid in ETH/OHM/DAI) from off-chain real world assets
• Protocols could issue a specific fixed expiration bond (NFT) on their protocol, incentivizing and paying in their native token, while receiving ETH/OHM/DAI from the source smart contract
• Requirement that project ownership must be on-chain
• Requirement that vendors, suppliers, clients of project be on-chain
• Requirement that all monetary transactions occur on-chain
• The world becomes on-chain (that’s the point, right?)

What’s the point of RaaS?

The obvious is revenue and stability. RaaS provides protocols with non-correlated revenue that can be paid to them in a stablecoin, perhaps OHM if they are saavy, thereby increasing their treasury, operations, goals, desires, and crypto dreams.

The larger picture is about adoption. Assimilating off-chain assets and revenue can provide large scale adoption. By absorbing projects at their genesis event (financial beginning) it allows for the projects vendors, suppliers, developers, clients, and employees to be incentivized to join the crypto ecosystem.

A simple example could be that of on-chain multi-family housing. Tenants of the project could be incentivized with a reduction in rent in exchange for paying with a certain token. Vendors/Contractors could be paid via smart contract. The options are endless and the projects currently active in the space have blazed a trail. Fiscus DAO takes it a step further and tackles the issue at the source with allows for even greater incentives.

…And what about the token (FISC)?

The Fiscus DAO token will benefit from a robust treasury filled with ETH/OHM/DAI stemming from our use of the Revenue-as-a-Service model directly (we’ll do it for ourselves), it benefits from other protocols utilizing RaaS (we’ll take a fee), and we’ll continue to push the envelope of adoption, stability, and growth through hodling, staking, noding, and minting. Thereby creating a token worthy of your wallet, tweet, and gas fees.

More to come as we bring on developers, contributors, communicators, and the Fiscus Community.

(Perhaps Fiscers? No, sorry bad name, we’ll need to put out a bounty to name the community properly)