DeFi

• Aave Proposal; [ARC] Polygon and Avalanche v2 -> v3 Treasury Migration

  • This ARC presents the community with the opportunity to migrate our v2 Collector holdings from Avalanche and Polygon to the v3 Treasury holdings.

• The proposal will:

  • Redeem all aTokens held in v2 Collector Contracts and deposit the amounts to gain yield.

  • Upgrade v2 aToken to transmit future income to v3 Treasury Contracts.

• These two activities will transition all current Collector Contract liquidity to v3 and consolidate Treasury Contracts on the Polygon and Avalanche networks to a single address.

• Aave DAO is one of the leading liquidity contributors to the Polygon and Avalanche v2 Liquidity Pools, with collector holdings comprising 3% and 5% of all supply.

• The DAO should convert from v2 to v3 liquidity pools early, so it's not one of the last suppliers to outmoded deployments.

• With v3 giving more security and the DAO prepared to deprecate v2 markets, the DAO can be a first mover in shifting to v3 Liquidity Pools.

• When the proposal passes, Llama will develop an AIP to update the Polygon and Avalanche v2 Liquidity Pools:

  • Transfer all Collector Contract-controlled assets from v2 Liquidity Pools to v3 Reserves.

  • Migrate v2 Collectors' assets to v3 Treasury Contracts.

  • Upgrade aToken to send v2 Collector Contract Revenue to v3 Treasury Contracts.

• Aave Proposal; Helping Aave Think Through RWAs

  • Goldfinch is transforming the $1T+ global private debt industry by offering cost-effective crypto loans to credit funds and FinTechs. 

  • Goldfinch gives crypto lenders access to loan arrangements collateralized with real-world assets.

  • With GHO, Aave will have a censorship-resistant, fully collateralized USD stablecoin.

  • Real-World Assets [RWAs] help the protocol both:

    • Diversify stablecoin collateral beyond crypto leverage.

    • Leverage assets outside crypto to grow GHO into a global stablecoin.

  • Our goal is to help Aave navigate this new asset class and create a strategy for the DAO to access the RWA opportunity while mitigating associated risks.

• Aave Proposal; [ARC] Discussion: V2 -> V3 Migration & V2 Deprecation

  • This ARC helps the community migrate funds from legacy V2 markets to newer, more secure V3 markets.

  • The proposal tries to achieve this by changing the Reserve Factor of the different aTokens supported on Aave V3.

  • Adjusting the reserve factor will reduce depositors' yield, prompting them to relocate collateral and raise borrower rates.

  • The DAO will earn more revenue as its take rate from the generated interest of the market is increased.

  • V3 increases capital efficiency for users and offers a variety of new risk management features to help the DAO securely operate the largest multichain DeFi contract system.

  • The DAO provides various techniques to facilitate user migration, but the authors recommend two: 

    • Reserve Factor adjustment: Reserve Factor (RF) is the percentage of borrowers' interest paid to DAO reserves. It regulates the difference between the Supply APR and Borrow APR.

    • Safety Module coverage: The safety module is Aave DAO's secondary backup (after treasury money) for market shortfalls.

  • This proposal is a call for debate. All stakeholders are welcome to weigh in on the migration and deprecation of V2 marketplaces.

  • After more community conversation, a formal specification and vote section will be created and voted on.

  • The authors advise the community to propose encouraging V2 to V3 users. We encourage the community to build/fund migration tools (ideally via Grants DAO).

• Aave Proposal; [ARC] Integrate Coinbase Pay into the Aave app

  • The purpose of this proposal is to add Coinbase Pay as an additional onramp option within the Aave V2 and V3 UIs.

  • Aave users must link a self-custodial wallet to the app and fund it with cryptocurrencies to offer liquidity to the protocol.

  • Wallet funding with different onramp providers involves numerous KYC processes. This causes user friction and mistakes.

  • Coinbase users can sign in to Coinbase by clicking the Coinbase Pay button on aave.com.

  • Once signed in, customers may use their saved payment method to acquire crypto or move some of their crypto balance to an Aave wallet.

  • The Aave community would gain:

    • Aave customers may buy 200+ cryptocurrencies using 60+ fiat currencies in 90+ countries.

    • Aave users may reduce time by using current Coinbase KYC and stored payment methods.

    • Aave's flexibility: Fiat payment methods of Aave users are safely stored in their Coinbase Accounts.

   

• Element Proposal; EGP-17: Phase 1: GSC Compensation

  • "EGP-# Phase 1: GSC Pay" intends to encourage GSC members to join the DAO with ELFI compensation while outlining their duties and responsibilities.

  • We are working on a more detailed definition of the GSC's job and duties. Stepping stones are a good approach to ease the GSC into a more active position in the DAO.

  • With incentives, GSC involvement and openness will increase. Long-term, make the move to more active participation in the DAO smoother.

• Element Proposal; EGP-18: Introduce Push Protocol Notifications for ElementFi Governance.

  • Introduce Push Protocol Notifications to provide a direct engagement channel to increase participation in Governance.

  • We suggest integrating Element Finance's Governance front with Push Protocol Notifications.

  • Decentralized Push Protocol alerts connect Element Finance with users.

  • Users may receive alerts and act immediately. These alerts alert users to new proposals, voting deadlines, and voting outcomes.

• Balancer Proposal; [BIP-107] Retire TEMPLE/DAI & Enable TEMPLE/bb-a-USD 50/50 Gauge w/10% emissions cap [Ethereum]

  • This proposal is to add a new veBAL gauge for the TEMPLE/bb-a-USD 50/50 weighted pool and deprecate the current TEMPLE/DAI 80/20 weighted pool on Ethereum.

  • TEMPLE is a low-volatility coin focused on price stability and Treasury farming.

  • We want to connect Balancer's stablecoin bb-a-USD with TEMPLE in a 50/50 pool for deep liquidity and easy routing.

  • A new bb-a-USD trading pair would bring considerable TEMPLE trading volume to the Balancer platform and indirectly push more liquidity to bb-a-USD.

  • TempleDAO wants to participate in Balancer governance because we love the technology and share a goal of minimizing price volatility, deep liquidity, and customisable asset exposure.

  • A bb-a-USD pool makes buying TEMPLE tokens with stablecoins other than FRAX simpler.

• Balancer Proposal; [BIP-108] Enable SD/MaticX 80/20 Gauge with 2% emissions cap (Polygon)

  • This is a proposal to enable a Balancer gauge for the 80% SD - 20% MaticX pool on Polygon.

  • Stader Labs' protocol token is SD. SD token holders will get a part of protocol revenue once staking starts.

  • Stader uses SD tokens to reward users on Polygon, hence we aim to develop liquidity for SD on Balancer, our largest market.

  • Stader recommends an 80% SD - 20% MaticX pool on Balancer for Polygon's SD.

  • The MaticX-Matic pool is part of the core group of pools that get a % of fees as direct bribes from the Balancer DAO to ensure good liquidity in a yield-bearing pool.

  • If Balancer enables the gauge, this pool might become the dominant source of SD liquidity on Polygon, helped by the 80% SD concentration.

• Balancer Proposal; [BIP-109] Whitelist Aragon Gnosis Safe for Balancer's VotingEscrow

  • This proposals aims to receive community support for whitelisting Aragon's multisig wallet address on Ethereum, to lock Aragon's "B-80BAL-20WETH LP" position into veBAL.

  • Aragon provides governance and DAO infrastructure for over 1300 web3 applications.

  • As Aragon transitions to a DAO at the end of the year, it wants to use its resources to participate in the meta-governance of web3 projects like Balancer.

  • This proposal is risk-free.

• Balancer Proposal; [BIP-110] Enable T/WETH 80/20 Gauge w/2% emissions cap [Ethereum]

  • Whitelist for veBAL voting WETH-T Pool Gauge w/2% emissions cap

  • Threshold provides a suite of threshold cryptography primitives for data privacy, access restrictions, condition-based encryption, and cross-chain asset bridges.

  • The tBTCv2 bridge will deploy on Threshold. tBTCv2 is a decentralized Bitcoin bridge that allows BTC holders to participate in DeFi on Ethereum.

  • A future tBTCv2 Balancer pool will let us use idle BTC that has never participated in DeFi.

  • Balancer is the second largest source of token liquidity after Curve, and we expect arbitragers to expand trade in both pools.

• Balancer Proposal; [BIP-111] Index Coop x Balancer DAO Partnership

  • Index Coop is proposing a partnership with Balancer DAO that includes fee split arrangements, a token swap, and veBAL gauges.

  • Index Coop leads on-chain structured goods. With over 90% of on-chain indexes, we've seen crypto's patterns and cycles firsthand.

  • The Index Coop team wants to deliver Balancer to custodians, TradFi data providers, crypto intermediaries, DeFi money markets, on-chain aggregators, and wallet interfaces.

  • Index Coop is proposing:

    • Product fee splits

    • OTC token swap

    • Enable veBAL gauges on select products

DeFi

• Aave Proposal; [ARC] Polygon and Avalanche v2 -> v3 Treasury Migration

  • This ARC presents the community with the opportunity to migrate our v2 Collector holdings from Avalanche and Polygon to the v3 Treasury holdings.

• The proposal will:

  • Redeem all aTokens held in v2 Collector Contracts and deposit the amounts to gain yield.

  • Upgrade v2 aToken to transmit future income to v3 Treasury Contracts.

• These two activities will transition all current Collector Contract liquidity to v3 and consolidate Treasury Contracts on the Polygon and Avalanche networks to a single address.

• Aave DAO is one of the leading liquidity contributors to the Polygon and Avalanche v2 Liquidity Pools, with collector holdings comprising 3% and 5% of all supply.

• The DAO should convert from v2 to v3 liquidity pools early, so it's not one of the last suppliers to outmoded deployments.

• With v3 giving more security and the DAO prepared to deprecate v2 markets, the DAO can be a first mover in shifting to v3 Liquidity Pools.

• When the proposal passes, Llama will develop an AIP to update the Polygon and Avalanche v2 Liquidity Pools:

  • Transfer all Collector Contract-controlled assets from v2 Liquidity Pools to v3 Reserves.

  • Migrate v2 Collectors' assets to v3 Treasury Contracts.

  • Upgrade aToken to send v2 Collector Contract Revenue to v3 Treasury Contracts.

• Aave Proposal; Helping Aave Think Through RWAs

  • Goldfinch is transforming the $1T+ global private debt industry by offering cost-effective crypto loans to credit funds and FinTechs. 

  • Goldfinch gives crypto lenders access to loan arrangements collateralized with real-world assets.

  • With GHO, Aave will have a censorship-resistant, fully collateralized USD stablecoin.

  • Real-World Assets [RWAs] help the protocol both:

    • Diversify stablecoin collateral beyond crypto leverage.

    • Leverage assets outside crypto to grow GHO into a global stablecoin.

  • Our goal is to help Aave navigate this new asset class and create a strategy for the DAO to access the RWA opportunity while mitigating associated risks.

• Aave Proposal; [ARC] Discussion: V2 -> V3 Migration & V2 Deprecation

  • This ARC helps the community migrate funds from legacy V2 markets to newer, more secure V3 markets.

  • The proposal tries to achieve this by changing the Reserve Factor of the different aTokens supported on Aave V3.

  • Adjusting the reserve factor will reduce depositors' yield, prompting them to relocate collateral and raise borrower rates.

  • The DAO will earn more revenue as its take rate from the generated interest of the market is increased.

  • V3 increases capital efficiency for users and offers a variety of new risk management features to help the DAO securely operate the largest multichain DeFi contract system.

  • The DAO provides various techniques to facilitate user migration, but the authors recommend two: 

    • Reserve Factor adjustment: Reserve Factor (RF) is the percentage of borrowers' interest paid to DAO reserves. It regulates the difference between the Supply APR and Borrow APR.

    • Safety Module coverage: The safety module is Aave DAO's secondary backup (after treasury money) for market shortfalls.

  • This proposal is a call for debate. All stakeholders are welcome to weigh in on the migration and deprecation of V2 marketplaces.

  • After more community conversation, a formal specification and vote section will be created and voted on.

  • The authors advise the community to propose encouraging V2 to V3 users. We encourage the community to build/fund migration tools (ideally via Grants DAO).

• Aave Proposal; [ARC] Integrate Coinbase Pay into the Aave app

  • The purpose of this proposal is to add Coinbase Pay as an additional onramp option within the Aave V2 and V3 UIs.

  • Aave users must link a self-custodial wallet to the app and fund it with cryptocurrencies to offer liquidity to the protocol.

  • Wallet funding with different onramp providers involves numerous KYC processes. This causes user friction and mistakes.

  • Coinbase users can sign in to Coinbase by clicking the Coinbase Pay button on aave.com.

  • Once signed in, customers may use their saved payment method to acquire crypto or move some of their crypto balance to an Aave wallet.

  • The Aave community would gain:

    • Aave customers may buy 200+ cryptocurrencies using 60+ fiat currencies in 90+ countries.

    • Aave users may reduce time by using current Coinbase KYC and stored payment methods.

    • Aave's flexibility: Fiat payment methods of Aave users are safely stored in their Coinbase Accounts.

   

• Element Proposal; EGP-17: Phase 1: GSC Compensation

  • "EGP-# Phase 1: GSC Pay" intends to encourage GSC members to join the DAO with ELFI compensation while outlining their duties and responsibilities.

  • We are working on a more detailed definition of the GSC's job and duties. Stepping stones are a good approach to ease the GSC into a more active position in the DAO.

  • With incentives, GSC involvement and openness will increase. Long-term, make the move to more active participation in the DAO smoother.

• Element Proposal; EGP-18: Introduce Push Protocol Notifications for ElementFi Governance.

  • Introduce Push Protocol Notifications to provide a direct engagement channel to increase participation in Governance.

  • We suggest integrating Element Finance's Governance front with Push Protocol Notifications.

  • Decentralized Push Protocol alerts connect Element Finance with users.

  • Users may receive alerts and act immediately. These alerts alert users to new proposals, voting deadlines, and voting outcomes.

• Balancer Proposal; [BIP-107] Retire TEMPLE/DAI & Enable TEMPLE/bb-a-USD 50/50 Gauge w/10% emissions cap [Ethereum]

  • This proposal is to add a new veBAL gauge for the TEMPLE/bb-a-USD 50/50 weighted pool and deprecate the current TEMPLE/DAI 80/20 weighted pool on Ethereum.

  • TEMPLE is a low-volatility coin focused on price stability and Treasury farming.

  • We want to connect Balancer's stablecoin bb-a-USD with TEMPLE in a 50/50 pool for deep liquidity and easy routing.

  • A new bb-a-USD trading pair would bring considerable TEMPLE trading volume to the Balancer platform and indirectly push more liquidity to bb-a-USD.

  • TempleDAO wants to participate in Balancer governance because we love the technology and share a goal of minimizing price volatility, deep liquidity, and customisable asset exposure.

  • A bb-a-USD pool makes buying TEMPLE tokens with stablecoins other than FRAX simpler.

• Balancer Proposal; [BIP-108] Enable SD/MaticX 80/20 Gauge with 2% emissions cap (Polygon)

  • This is a proposal to enable a Balancer gauge for the 80% SD - 20% MaticX pool on Polygon.

  • Stader Labs' protocol token is SD. SD token holders will get a part of protocol revenue once staking starts.

  • Stader uses SD tokens to reward users on Polygon, hence we aim to develop liquidity for SD on Balancer, our largest market.

  • Stader recommends an 80% SD - 20% MaticX pool on Balancer for Polygon's SD.

  • The MaticX-Matic pool is part of the core group of pools that get a % of fees as direct bribes from the Balancer DAO to ensure good liquidity in a yield-bearing pool.

  • If Balancer enables the gauge, this pool might become the dominant source of SD liquidity on Polygon, helped by the 80% SD concentration.

• Balancer Proposal; [BIP-109] Whitelist Aragon Gnosis Safe for Balancer's VotingEscrow

  • This proposals aims to receive community support for whitelisting Aragon's multisig wallet address on Ethereum, to lock Aragon's "B-80BAL-20WETH LP" position into veBAL.

  • Aragon provides governance and DAO infrastructure for over 1300 web3 applications.

  • As Aragon transitions to a DAO at the end of the year, it wants to use its resources to participate in the meta-governance of web3 projects like Balancer.

  • This proposal is risk-free.

• Balancer Proposal; [BIP-110] Enable T/WETH 80/20 Gauge w/2% emissions cap [Ethereum]

  • Whitelist for veBAL voting WETH-T Pool Gauge w/2% emissions cap

  • Threshold provides a suite of threshold cryptography primitives for data privacy, access restrictions, condition-based encryption, and cross-chain asset bridges.

  • The tBTCv2 bridge will deploy on Threshold. tBTCv2 is a decentralized Bitcoin bridge that allows BTC holders to participate in DeFi on Ethereum.

  • A future tBTCv2 Balancer pool will let us use idle BTC that has never participated in DeFi.

  • Balancer is the second largest source of token liquidity after Curve, and we expect arbitragers to expand trade in both pools.

• Balancer Proposal; [BIP-111] Index Coop x Balancer DAO Partnership

  • Index Coop is proposing a partnership with Balancer DAO that includes fee split arrangements, a token swap, and veBAL gauges.

  • Index Coop leads on-chain structured goods. With over 90% of on-chain indexes, we've seen crypto's patterns and cycles firsthand.

  • The Index Coop team wants to deliver Balancer to custodians, TradFi data providers, crypto intermediaries, DeFi money markets, on-chain aggregators, and wallet interfaces.

  • Index Coop is proposing:

    • Product fee splits

    • OTC token swap

    • Enable veBAL gauges on select products