Major players in the fast-growing decentralized finance (DeFi) space have launched AladdinDAO, a decentralized asset management marketplace to help new or less-informed investors generate returns through liquidity mining.

The project is led by a former Huobi executive and includes the participation of investors including Multicoin Capital and Polychain Capital, according to a press release.

Under the plan, DAO committee members will select the “most promising” DeFi projects.

“Yield farmers self-allocate to the vetted DeFi projects while also incentivizing them with liquidity mining rewards,” according to the release.

The 15 so-called talent hunters of the protocol – the initial members on the Aladdin committee – include executives from Polychain Capital, Digital Currency Group, Multicoin Capital and Alameda. These founding members can subsequently add new members through invitation. (CoinDesk is an independent subsidiary of Digital Currency Group.)

“DAOs are one of the most important innovations in all of crypto,” Polychain Capital founder Olaf Carlson-Wee said in the press release. “Over time, they will take over and decentralize vast portions of the entire economy.”

AladdinDAO’s native token, Aladdin token (ALD), is designed partly as an incentive for the committee members to both select and vote for the best projects, according to the protocol’s white paper reviewed by CoinDesk.

The DAO mining mechanism, according to the white paper, incentivizes committee members to choose high-quality DeFi
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