A NEW DAO WANTS TO BRING SANITY TO THE TIPSY WORLD OF DEFI

Last updated: June 19, 2025, 22:32 | Written by: Olaf Carlson-Wee

The world of Decentralized Finance (DeFi) can often feel like a rollercoaster – exciting, innovative, but also volatile and, let's face it, a little bit ""tipsy."" With new protocols, tokens, and platforms popping up seemingly overnight, navigating this space can be overwhelming, even for seasoned crypto veterans. r/PrimeDAO: The Prime Development Foundation today announced its preliminary launch of PrimeDAO, a decentralized prime broker for the open financeThe rapid pace of innovation, while exhilarating, also introduces significant risks and instability.Imagine trying to build a stable financial future in a world where the rules are constantly changing. This VC says he doesn't want to play a game of DeFi musical chairs. Please note, this is a STATIC archive of website cointelegraph.com from, cach3.com does not collect or store any user information, there is no phishing involved.That's the challenge DeFi faces. Get the latest up-to-the minute news on Bitcoin from ADVFNEnter Decentralized Autonomous Organizations (DAOs), specifically one promising project aiming to bring order and structure to the chaos: PrimeDAO. What Can You Do in DeFi? The DeFi space aims to transpose all kinds of financial services to trustless systems, ideally run by community-driven decentralized autonomous organizations (DAOs). Think about trading, lending, and asset management. DeFi offers services that are not possible in traditional finance, e.g, staking and cross-chain protocols.PrimeDAO envisions itself as a decentralized prime broker, with the ambitious goal of fostering stability and promoting best practices within the DeFi ecosystem. This VC says he doesn't want to play a game of DeFi musical chairs.[BREAK] PrimeDAO, a decentralized prime broker, hopes to bring stability to the wild world of DeFi.[BREAK] To learn more about this new initiative, we interviewed one of PrimeDAO's members, Alon Goren - a co-founder of the Draper Goren Holm venture fund.[BREAK] All of these products popping up overnight are a part of why it isBut how does a DAO actually achieve this?How can decentralized governance tame the wild west of crypto? Projects like MakerDAO link DeFi to real-world assets, like tokenized real estate. This opens up new ways to use DeFi. Profitable Opportunities: DeFi earns investors attractive returns through staking, yield farming, and liquid provision. You can earn from 3% in stablecoin pools to 20% in riskier pools.Let's delve into the specifics of PrimeDAO, explore the broader landscape of DAOs in DeFi, and understand how these innovative organizations are shaping the future of finance.

Understanding PrimeDAO: A Decentralized Prime Broker

PrimeDAO is positioning itself as a critical piece of infrastructure for the DeFi world. Yuga Labs CEO Greg Solano has drafted a proposal to dissolve the ApeCoin DAO and replace it with ApeCo, a new entity designed to refocus the ecosystem. According to Decrypt, Solano posted the Ape Improvement Proposal (AIP) on J, calling the current DAO structure unfit for purpose. The.It aims to offer a suite of services traditionally provided by prime brokers in traditional finance but in a decentralized and transparent manner.Think of it as a one-stop-shop for DeFi participants seeking to optimize their strategies, manage risk, and access a broader range of opportunities.Alon Goren, a co-founder of the Draper Goren Holm venture fund and a member of PrimeDAO, highlights the importance of such initiatives in bringing much-needed stability to the DeFi space.He emphasizes that the current fragmented and rapidly evolving nature of DeFi requires robust infrastructure to ensure sustainable growth.

What services does PrimeDAO offer?

Risk Management: Providing tools and frameworks to assess and mitigate risks associated with different DeFi protocols and strategies.
Capital Efficiency: Helping users optimize their capital allocation across various DeFi platforms to maximize returns.
Strategic Partnerships: Facilitating collaboration and partnerships between different DeFi projects to foster innovation and interoperability.
Governance Participation: Actively participating in the governance of other DeFi protocols to advocate for best practices and promote responsible development.

By offering these services, PrimeDAO seeks to create a more professional and mature DeFi ecosystem, attracting institutional investors and paving the way for wider adoption.

The Rise of DAOs in DeFi: A New Era of Governance

DAOs are revolutionizing how organizations operate, particularly in the DeFi space.They represent a shift from traditional hierarchical structures to community-driven governance models, where decisions are made collectively by members through voting mechanisms. Today, DAOs oversee everything from DeFi networks to social impact initiatives. The greater integration of new technology has hastened this expansion, creating the path for additional improvements in governance and operations. Key Trends: DAO Development in 2025 AI-Driven Governance and AutomationThis decentralization fosters transparency, reduces the risk of centralized control, and empowers users to actively participate in the evolution of the platforms they use.

Why are DAOs so popular in DeFi?

Transparency: All decisions and transactions are recorded on the blockchain, ensuring accountability and trust.
Community Governance: Token holders have the power to propose and vote on changes to the protocol, fostering a sense of ownership and participation.
Automation: Smart contracts automate many of the processes involved in managing a DeFi platform, reducing the need for human intervention and minimizing errors.
Innovation: DAOs encourage experimentation and innovation by allowing community members to contribute ideas and proposals.

Today, DAOs oversee a vast range of activities, from managing DeFi lending platforms like Aave (where members vote on adding new assets and loan parameters, managing a treasury worth over $1 billion) to curating digital art collections like PleasrDAO.This widespread adoption highlights the versatility and effectiveness of DAOs in governing decentralized systems.

DAO Development in 2025: Key Trends Shaping the Future

The DAO landscape is constantly evolving, with new technologies and governance models emerging to address the challenges and opportunities of the decentralized world. The Supreme Lord Lao (T ish ng Lǎojūn 太上老君), also known as the Heavenly Honored of Dao and Virtue (D od Tiānz n 道德天尊), with his full title being the Heavenly Honored of Dao and Virtue of the Supreme. Read moreAs we look towards the future, several key trends are shaping the trajectory of DAO development:

AI-Driven Governance and Automation

Artificial intelligence (AI) is poised to play a significant role in enhancing DAO governance and automation.AI-powered tools can analyze vast amounts of data to identify potential risks, optimize decision-making processes, and automate routine tasks, freeing up human members to focus on more strategic initiatives. A new DAO wants to bring sanity to the tipsy world of DeFiSource: CointelegraphPublished onImagine AI algorithms suggesting optimal voting strategies or identifying potential vulnerabilities in smart contracts.

Community-Powered Governance

The best DAOs in 2025 thrive because of active, engaged members.This involves not just flashy roadmaps, but true community input.Instead of centralized banks, DAO members collectively decide how DeFi platforms evolve, ensuring that the direction of the project aligns with the needs and desires of its users.

However, DAOs need to find a balance between community input and efficient decision-making. ""But the fact that the power stems from the DAO doesn't mean that the DAO should directly vote on what brand of toilet paper is used at Arbitrum events,"" as one commentator astutely observed.The challenge lies in structuring governance processes to ensure both inclusivity and efficiency.

Real-World DAOs Shaping DeFi: Examples

Several DAOs are already making a significant impact on the DeFi landscape.Here are a few notable examples:

Aave DAO: As mentioned earlier, Aave DAO is a leading decentralized lending platform where members govern the protocol and manage its treasury.
MakerDAO: MakerDAO is responsible for the creation and maintenance of the DAI stablecoin, linking DeFi to real-world assets like tokenized real estate.
Uniswap DAO: Uniswap DAO governs the Uniswap decentralized exchange, allowing token holders to vote on protocol upgrades and other important decisions.

Navigating the Complexity of Setting Up a DAO

While DAOs offer many benefits, setting one up correctly can be complex.It requires careful planning, technical expertise, and a deep understanding of the legal and regulatory landscape.This is where professional DAO development teams come in. PrimeDAO, a decentralized prime broker, hopes to bring stability to the wild world of DeFi. To learn more about this new initiative, we interviewed one of PrimeDAO's members, Alon Goren - a co-founder of the Draper Goren Holm venture fund.These teams bring the expertise needed to design secure and efficient systems, creating custom solutions that meet a project's unique needs.By partnering with experts, organizations can launch a DAO faster and with fewer risks.

What are the key considerations when setting up a DAO?

Legal Structure: Determining the legal status of the DAO is crucial for compliance and liability purposes.
Governance Model: Choosing the right governance model, including voting mechanisms and decision-making processes, is essential for ensuring effective community participation.
Smart Contract Security: Auditing and testing smart contracts are critical to prevent vulnerabilities and protect against potential attacks.
Treasury Management: Establishing a clear and transparent system for managing the DAO's treasury is essential for financial stability.

Organizations like the Axion DAO are even taking the step of establishing themselves as legal entities under the Utah DAO Cooperative Acts, showcasing the increasing formalization of the DAO landscape.

The Challenges and Criticisms of DAOs

Despite their potential, DAOs are not without their challenges and criticisms.Some common concerns include:

Security Risks: DAOs are vulnerable to smart contract exploits and governance attacks, which can lead to significant financial losses.
Decision-Making Inefficiency: The decentralized nature of DAOs can sometimes lead to slow and cumbersome decision-making processes.
Regulatory Uncertainty: The legal and regulatory status of DAOs remains unclear in many jurisdictions, creating uncertainty for participants.
Lack of Accountability: It can be difficult to hold individuals accountable for their actions within a DAO, particularly when decisions are made collectively.

The recent proposal by Yuga Labs CEO Greg Solano to dissolve the ApeCoin DAO and replace it with ApeCo highlights some of these challenges. Information platform at the intersection of tech and finance. Hyperliquid-based Felix Protocol Crosses $100 Million in Outstanding LoansSolano argued that the current DAO structure is ""unfit for purpose,"" suggesting that the decentralized governance model may not always be the most effective approach for every project.

Beyond DeFi: The Expanding Applications of DAOs

While DAOs are primarily associated with DeFi, their applications extend far beyond the realm of finance.DAOs are being used to govern everything from social media platforms to charitable organizations. But the fact that the power stems from the DAO doesn t mean that the DAO should directly vote on what brand of toilet paper is used at Arbitrum events. Top DeFi stories of the week This week in DeFi governance. VOTE: Uniswap DAO votes to establish licensing process for new v4 version. VOTE: ZkSync DAO to greenlight Ethereum emulationThe ability to facilitate collaboration, transparency, and community ownership makes DAOs a powerful tool for a wide range of use cases.

Consider the example of a DAO attempting to purchase Blockbuster and transform it into a DeFi streaming platform.This ambitious project demonstrates the potential of DAOs to disrupt traditional industries and empower communities to take control of their favorite brands. The DeFi world is growing, and its effects will be big. It will change how we see banking, investing, and financial services. Whether you re a crypto expert or new to it, DeFi offers a thrilling chance to explore new finance frontiers. How can I participate in governance decisions of a DAO or DeFi protocol?The DAO plans to raise $5 million by minting NFTs, which can be sold for 0.13 ETH each, with the goal of managing Blockbuster via an on-chain governance model with the community.This innovative approach showcases the potential of DAOs to revitalize struggling businesses and create new opportunities for community participation.

DeFi Education and Regulatory Scrutiny

As the DeFi ecosystem continues to grow, it's crucial to promote education and understanding of these complex technologies. PrimeDAO, a decentralized prime broker, hopes to bring stability to the wild world of DeFi. To learn more about this new initiative, we interviewed one of PrimeDAO s members, Alon Goren a coOrganizations like the DeFi Education Fund are playing a vital role in providing resources and advocating for responsible regulation.In fact, the DeFi Education Fund and Uniswap Foundation sent a letter to SEC Crypto Task Force leader Hester Peirce on May 27, requesting that the Securities and Exchange Commission avoid regulating most decentralized autonomous organizations. Crypto Industry Pushes for Reduced DAO Regulation as SEC Shifts Direction. The DeFi Education Fund and Uniswap Foundation sent a letter to SEC Crypto Task Force leader Hester Peirce on May 27, requesting the Securities and Exchange Commission avoid regulating most decentralized autonomous organizations.The industry is pushing for reduced DAO regulation as the SEC shifts direction.

The regulatory landscape surrounding DAOs remains uncertain, with regulators grappling with how to apply existing laws to these novel organizations.It's important for policymakers to strike a balance between protecting investors and fostering innovation.Overly restrictive regulations could stifle the growth of the DeFi ecosystem, while a lack of regulation could expose users to significant risks.

How to Participate in DAO Governance

One of the most exciting aspects of DAOs is the ability for individuals to actively participate in governance decisions.Here's a general overview of how you can get involved:

Acquire Governance Tokens: Most DAOs require you to hold their native governance token to participate in voting.You can typically purchase these tokens on decentralized exchanges (DEXs).
Stay Informed: Keep up-to-date with the latest proposals and discussions within the DAO community.Many DAOs use forums, Discord channels, and other communication platforms to facilitate discussions.
Participate in Discussions: Share your thoughts and opinions on proposals and engage in constructive dialogue with other community members.
Vote on Proposals: When a proposal is put to a vote, use your governance tokens to cast your vote in favor or against the proposal.
Delegate Your Vote: If you don't have the time or expertise to actively participate in governance, you can delegate your voting power to another community member who you trust.

Conclusion: The Future of DeFi and the Role of DAOs

The future of DeFi is inextricably linked to the evolution of DAOs. In the world of Web3, a Decentralized Autonomous Organization (DAO) is gaining traction to facilitate collaboration between individuals and organizations. According to SnapShot Labs, there were more than 6,000 DAOs as of June 2025 compared to roughly 700 in May 2025.These decentralized organizations offer a promising path towards a more transparent, accessible, and equitable financial system. In this article, we ll take you inside the best DAO projects leading this year, explain what makes a DAO great, and explore where decentralized governance is headed. The best DAOs in 2025 thrive because of active, engaged members not just flashy roadmaps. DAOs automate decision-making and money management, reducing bureaucracy and building trust.While challenges remain, the potential benefits of DAOs are undeniable. While DAOs promise many benefits, setting one up correctly can be complex. Professional DAO development teams bring the expertise needed to design secure and efficient systems. They can create custom solutions that meet a project s unique needs. By partnering with experts, organizations can launch a DAO faster and with fewer risks.From bringing ""sanity"" to the tipsy world of DeFi, as PrimeDAO aims to do, to enabling community ownership and driving innovation across various industries, DAOs are poised to reshape the way organizations operate and how individuals interact with the world around them.

Key Takeaways:

DAOs are revolutionizing governance: Shifting power from centralized entities to community members.
PrimeDAO aims to bring stability: By acting as a decentralized prime broker.
AI and Community are driving DAO evolution: Enhancing efficiency and inclusivity.
DAOs extend beyond DeFi: With applications in social media, charities, and even revitalizing businesses like Blockbuster.
Participation is key: Get involved by acquiring governance tokens, staying informed, and voting on proposals.

As the DeFi landscape continues to evolve, DAOs will undoubtedly play a crucial role in shaping its future.So, whether you're a seasoned crypto investor or just curious about the potential of decentralized governance, now is the time to explore the world of DAOs and discover how you can participate in building a more transparent and equitable financial system.