1IP:XX 1inch DAO Aqua Revenue Stream Incubator
Core Program Structure
The 1inch DAO Revenue Stream Incubator Program will deploy a total investment of $400,000 into selected teams that develop 1inch Aqua strategies approved by the Grant Reviewers and the 1inch Core Team.
Each team that submits an Aqua Strategy can receive a maximum of $50,000 in funding to develop revenue-generating Aqua strategies. In exchange, the teams that develop these strategies will share a percentage of their gross revenue with the 1inch DAO for an extended period of time, which will be negotiated on a case-by-case basis, thereby creating sustainable income streams for the treasury. StableLab will serve as the program administrator, utilizing the Forse Platform to ensure professional execution and transparent operations.
Motivation
The 1inch DAO should fund an incubator program for Aqua strategy development because Aqua fundamentally shifts DeFi competition from TVL acquisition to formula and strategy innovation, meaning the protocol with the most sophisticated, specialized trading strategies will capture the most volume and fees.
Aqua’s shared liquidity model allows superior strategies to attract liquidity instantly without requiring LPs to migrate capital. By funding teams to develop differentiated strategies, whether constant product AMMs with dynamic fees, concentrated liquidity with inventory-based pricing, or specialized approaches for different asset classes and market conditions, the DAO would create a flywheel where better strategies attract more LPs, deeper liquidity attracts more taker volume through 1inch aggregation. Increased volume generates fees that can be shared back to the DAO as a return on its initial investment. This revenue share model aligns incentives across all participants while positioning 1inch at the center of a strategy innovation ecosystem rather than competing in the unsustainable race for TVL through token incentives.
Key Terms and Requirements
Revenue sharing begins from the first dollar earned by funded projects, with no waiting period or threshold requirements. All participating teams must complete comprehensive KYC and KYB procedures to ensure the legal enforceability of agreements. The program implements milestone-based funding releases, protecting DAO capital by requiring teams to demonstrate progress before receiving subsequent funding tranches. After three years of successful operation, teams will have the option to buy out the DAO’s revenue share at fair market terms.
Application and Tracking System Support
The Forse Platform provides a centralized system for proposal submission and team documentation management. This eliminates the scattered approach often seen in DAO programs, ensuring all information remains organized and accessible. Teams benefit from streamlined communication channels that facilitate efficient interaction between funded projects, StableLab, and the DAO community. All relevant documents, agreements, and progress reports are stored in one secure location, creating a comprehensive record of each team’s journey through the program.
Milestone Management Framework
Clear milestone definitions and tracking mechanisms ensure teams understand exactly what needs to be achieved at each stage of development. The platform enables systematic progress verification before any funding releases occur, protecting DAO interests while supporting team advancement. Evidence collection and assessment tools allow teams to demonstrate their achievements effectively, while StableLab can efficiently review and validate milestone completions. This structured approach maintains accountability while providing teams with clear targets and expectations throughout their development process.
Financial Automation and Transparency
The platform automates revenue tracking and calculations, ensuring accurate and timely processing of the DAO’s revenue share. Distribution management systems handle the flow of funds from projects to the DAO treasury, reducing manual work and minimizing errors. Transparent reporting dashboards provide all stakeholders with real-time visibility into program performance, including revenue generated, milestone achievements, and overall project health. This automation creates clear audit trails and builds trust through comprehensive financial transparency.
Ongoing Support Services
StableLab provides continuous technical troubleshooting assistance to help teams overcome development challenges. Teams gain access to resource connections and guidance that can accelerate their progress and increase their chances of success. Regular progress monitoring and feedback ensure teams stay on track while identifying potential issues early. When problems arise, StableLab offers direct problem resolution support, leveraging its experience to help teams navigate obstacles and maintain momentum toward their goals.
This proposal only requests $2,850/month for the Forse Platform, while StableLab will provide Incubator reviewer services as part of its mandate as a 1inch DAO Delegate.
Support Budget - $34,200/year
Total Budget requested - $434,200
If this proposal is approved, all funds will be paid into and managed through the 1inch DAO Operations Multi-Sig.
Community Visibility and Engagement
Public dashboards display real-time team progress, allowing the entire DAO community to track how funded projects are developing. Monthly progress reports provide detailed updates on each team’s achievements, challenges, and upcoming milestones. Quarterly community calls create interactive forums where teams can present their work, answer questions, and receive feedback from DAO members. Direct engagement channels ensure community members can communicate with teams and StableLab, fostering a collaborative environment that benefits all participants.
Program Timeline and Review Process
The program operates on a twelve-month timeline from launch to comprehensive review. The first three months focus on team selection, application review, and legal formalization. Months four through twelve constitute the main development phase, where teams build their strategies, achieve milestones, and begin generating revenue. At the twelve-month mark, a comprehensive review examines program performance, revenue generation, and overall success metrics.
The review of applications to join the incubator program will be led by StableLab, supported by DAOPlomats, and Arana Digital, as part of their mandate as Recognized Delegates for the 1inch DAO.
Based on this review, the DAO will determine whether to continue the program, potentially with modifications to structure, funding amounts, or management arrangements to optimize future performance.
Creating Sustainable DAO Revenue
This incubator model represents a fundamental shift from traditional grant programs that deplete treasury resources without expectation of return. By structuring funding as revenue-sharing investments rather than one-way grants, the program creates potential for returns that far exceed initial investments. The portfolio approach of funding teams developing Aqua strategies provides natural risk diversification. This sustainable model positions the 1inch DAO as an innovator in decentralized governance while building a permanent portfolio of revenue-generating assets that support long-term treasury health.