In late 2021, two DeFi DAOs — Fei Protocol and Rari Capital — embarked on what was supposed to be a transformative merger. The idea was simple: Fei, with its algorithmic stablecoin, would join forces with Rari, a pioneer in permissionless lending pools, to create a DeFi powerhouse governed by a single DAO. Their communities approved the merger with overwhelming support, and in December, Tribe DAO was born.
Nine months later, it was dead.
The Fei-Rari collapse sent shockwaves through the ecosystem, but it was hardly the only DAO M&A, even in 2021. Gnosis and xDAI (a qualified success), Aragon and Vocdoni (a middling failure), Yearn and Cream/Sushi/Pickle (hard to tell) all came together. Since 2020, more than 65 deals have been executed by DAOs looking to scale, merge or consolidate. Today, the state of DAO M&A is more vibrant than ever.
Traditional M&A has clear playbooks. Corporate boards negotiate deals, investment banks…
