Heavy-hitting investment firms dip into DAO strategies via healthy investments in the ShapeShift DAO’s freshly minted Success Tokens; this represents one of the first “DeFi native” raises with an entirely on-chain contract

ShapeShift DAO, a decentralized, non-custodial cryptocurrency platform, and UMA, an Optimistic Oracle that validates data for Web3 protocols, announced today the strategic investment by Coinbase Ventures and Chapter One in a significant portion of the ShapeShift DAO’s recently minted FOX Success Tokens. These investments mark a marquee mobilization of Success Tokens in general, and the FOX Success Token in specific, with large, stable investment organizations.

“We’re honored to have strategic investors Coinbase Ventures and Chapter One aligned with the success of ShapeShift DAO,” said Willy Ogorzaly, head of decentralization for the ShapeShift DAO. “We look forward to working with them to achieve our mission of providing the world with an open-source, community-owned interface to the expanding DeFi universe.”

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ShapeShift, a decentralized, non-custodial crypto platform that launched in 2014, made global headlines in July of 2021 when they announced the decentralization of the company and the largest token airdrop in history. Based on developer-friendly, open source code, ShapeShift provides a safe, private way to interact with digital assets across various chains to track, trade and earn yield from a dashboard. Since its reformation as a DAO, ShapeShift has announced a growing number of DeFi opportunities for FOX Token holders.

“We’re excited to back ShapeShift as an investment in a pre-existing DAO pioneering the decentralized, non-custodial cryptocurrency market,” said Menelaos Mazarakis, investor and head of product, Chapter One. “We believe Success Tokens are a unique way to align incentives and ensure that we are supporting ShapeShift in their growth. With our focus on product and design and ecosystem relationships, we’re excited to support ShapeShift and help them get to the next level.”

Engineered by UMA, Success Tokens provide a way for DAOs to raise funds from long-term strategic investors without the need to sell tokens at a steep discount.

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“Success tokens provide an innovative alternative to the traditional way of fundraising in crypto,” said Kevin Chan, treasurer with UMA. “Instead of selling tokens at a discount upfront, investors are instead given an option to earn more tokens when an objective is reached. This DeFi primitive makes fundraising transparent and helps align the interest of the entire community.”

Success Tokens use UMA’s Optimistic Oracle for resolution, which offers DAO treasury management the tools and flexibility to query precise pieces of data and trust they are accurate.

The Strike Price for the Fox Success Token is $0.8 FOX/USD, and each Success Token is backed by 2 FOX. At expiry, if FOX/USD < $0.8, each Success Token is worth 1 FOX. At expiry, if FOX/USD > $0.8, each Success Token is worth 1 FOX + (expiry FOX/USD price – 0.8)/expiry price.