The Nata Protocol facilitates sophisticated on-chain M&A deals through a suite of reusable smart contracts tailored for the flourishing on-chain ecosystem of DAOs, VCs, and Institutions.
The rise of on-chain organisations has generated a growing demand for streamlined and reusable methods to facilitate mergers and acquisitions.
DAO treasuries alone already hold ~US$18B, and VCs have injected significant capital into the ecosystem. With the entire crypto market capitalisation now at ~US$1.3T, there's immense potential for business combinations via on-chain acquisitions, mergers, and various other forms of capital reorganisation.
M&A deals exhibit significant variations, particularly in terms, financing, and structuring.
However, the process is structured and repeatable. The Nata Protocol MVP primarily focuses on the deal execution, specifically the Offering and Closing stages where a Buyer acquires a treasury from a Seller through an exchange of assets for treasury (e.g., ETH for a Safe with multiple assets).
Case 1: A Buyer initiates a private offer to a Seller using the Nata Protocol, leveraging the capabilities of the iExec private environment.
Case 2: A Seller initiates a competitive process where multiple buyers submit private bids, with the highest bid winning.
Case 3: Two parties co-own an investment vehicle and initiate a shotgun procedure, where Party A may offer to buy out Party B; and B must either accept the offer to sell at the offered price, or buy out A at the offered price.
The acceptance of an offer triggers Smart Contract execution, transferring the payment price and control over the sold Safe treasury.
Chronicle Oracles: Treasuries with multiple assets receive accurate valuation at fair value, enabling institutions to easily comply with IFRS 3 Business Combinations.
iExec: Private messaging enables buyers to make private offers, with deals being either exclusive or competitive, as the private offering capability extends the possibility of private competitive bidding.
Safe SDK: The Nata Protocol extends the capabilities of Safe's contracts, smoothly executing a treasury transfer in exchange for payment. Account Abstraction allows for policy-making and 'sponsored take-overs'.
Polygon ZKEVM: High scalability opens opportunities for the Nata Protocol to be applied to treasuries and DAOs within this growing ecosystem.
Gnosis Chain: original home of Safe and currently a fast growing DeFi ecosystem where on-chain entities and investments will benefit from the Nata Protocol deal making capabilities. Deployment announced on Twitter.
Integrate the dApp to enable browsing through all existing treasuries, providing summaries of their composition and fair value. It should also allow listing by a Seller, or offering by a single Buyer or multiple Buyers in competitive bidding.
Multiple other methods will be implemented in the Nata Protocol to facilitate upstream and downstream mergers, partial and total spin-offs, and various other deals.