DeFi

• Aave Proposal; Security and Agility of Aave Smart Contracts via Continuous Formal Verification

  • This proposal builds on proposal 6308 to secure Aave-based smart contracts using formal verification and manual code review.

  • Certora has strengthened Aave's security and increased security community interaction in the last six months.

  • We want to boost Aave's security and allow agile product development.

  • This proposal will discuss Certora and formal verification, our progress in the past six months, and our security ambitions for Aave.

  • full details in the Governance Forum: https://governance.aave.com/t/security-and-agility-of-aave-smart-contracts-via-continuous-formal-verification/10181

• Aave Proposal; [ARC] Gauntlet <> Aave Renewal

  • A proposal to continue Gauntlet's 12-month engagement with Aave on ongoing market risk management to optimize capital efficiency and minimize insolvency and liquidations for long-term sustainable growth.

  • Gauntlet tries to enhance critical metrics without raising the protocol's net insolvent value:

  • Value at Risk: Conveys capital at risk due to insolvencies when markets are under duress.

  • Liquidations at Risk: Conveys capital at risk due to liquidations when markets are under duress.

  • Borrow Usage: Provides information about how aggressively depositors of collateral borrow against their supply.       

  • Gauntlet's service cost reflects our dedication to protocols and great protocol alignment.

  • The yearly upfront cost is log(Number of Assets, 10) * Total Borrow * Marginal Base Fee tier bps.

  • A 25% discount applies to yearly engagements.

  • If we invoiced today (38 distinct assets and $2B Total Borrow), it would be ~$2.4M each year.

  • Total Compensation:

    • 70% stablecoins (USDC, DAI, USDT)

    • 30% AAVE (at 30d VWAP)

  • Payment Schedule:

    • 30% of the insolvency refund's stablecoins are put in a vault.

    • Stablecoins/AAVE are streamed linearly over 1 year.

• Aave Proposal; Deploy Aave V3 on BNB Chain

  • BNB Chain's DeFi ecosystem is strong and its GameFi strength. BNB is the second-largest TVL chain with ~$7B.

  • BNB Chain intends to expand its DeFi capabilities and provide additional methods.

  • AAVE, one of the major DeFi ventures, leads the crypto debt markets and adds value to our ecosystem.

  • The v3 provides innovation, capital efficiency, security, and room for new initiatives. 

  • The v3 also adds innovation, capital efficiency, and security and can be leveraged by other projects. AAVE's model has been tested and is one of the most mature projects.

  • BNB Chain is willing to collaborate with the AAVE team to promote liquidity, bootstrapping users, and integrations to ensure AAVE's success. 

  • AAVE would have access to DeFi's second biggest TVL, the chain with the most active users and transactions, and a robust DeFi ecosystem with multiple ways to use its product. 

  • This will boost the DAO's treasury and provide a new revenue stream that, given BNB's weight in DeFi across chains, might be AAVE's most important.

  • We hope the AAVE community would embrace this concept and have a fruitful discussion before governance.

• Balancer Proposal; [BIP-104] Enable the STG/bb-rf-aUSDC Gauge [Optimism]

  • This pool uses the new weighted pool factory and contains a boosted / linear stable coin wrapper bb-rf-aUSDC - Beets Reaper Aave Boosted USDC.

  • Stargate aims to make Balancer its liquidity center by shifting liquidity there.

  • The protocol will earn yield on the enhanced share of this pool, making token pairing more efficient for both sides.

  • Under BIP-19, this gauge would become a "core pool" and employ protocol fees to buy votes. 

  • Bribes are unique to the Optimism chain, therefore read about them in the "Value" section.

  • This pool will help STG holders place their governance tokens and bb-rf-aUSDC to benefit LPs, traders, and Balancer.

  • This strengthens Stargate's collaboration and optimizes liquidity for everyone.

• Balancer Proposal; [BIP-105] Enable STG/bb-a-USD Gauge [Ethereum]

  • This pool uses the new weighted pool factory and contains a boosted / linear stable pool token bb-a-USD - Balancer's AAVE boosted stable pool token.

  • Stargate wants to keep shifting liquidity to Balancer.

  • For vote-escrowed Stargate governance, STG must be staked.

  • Stargate develops cross-chain/omnibridge solutions. Both parties will benefit from the protocol's yield on the enhanced share of this pool.

  • Under BIP-19, this gauge would become a "core pool" and employ protocol fees to buy votes.

  • Stargate helps Balancer achieve Defi multichain supremacy.

  • LPs, traders, and Balancer will profit from STG holders' governance tokens and bb-a-USD in this pool.

  • This strengthens Stargate's collaboration and optimizes liquidity for everyone.

• Balancer Proposal; [BIP-106] Enable sfrxETH/wstETH/rETH Gauge [Ethereum]

  • This pool employs the composable stable pool factory and contains staked frax eth (sfrxETH), wrapped staked ETH from Lido (wstETH), and rocket ETH from Rocket pool (rETH).

  • Rocket pool and lido have become ecosystem cornerstones by using metastable / composable stable pool types to leverage their yield-bearing assets.

  • Staked frax eth will join these two giants to ease trade and LPing across ETH's varied staking schemes.

  • Under BIP-19, this gauge would become a "core pool" and employ protocol fees to buy votes.

  • Balancer clearly prioritizes staked assets on all networks.

  • Balancer allows liquidity providers to exchange staked assets with different providers by varying the protocols that deliver them.

  • Balancer's users and the protocol profit tremendously from yield-bearing assets.

  • This Ethereum asset pool will be diversified and entertaining for everyone.

• 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 that prioritizes price stability and Treasury farming.

  • Our approach has provided $25–$40M in TVL to the Balancer Boosted Aave USD pool over the past 30 days.

  • The new TEMPLE/bb-a-USD 50/50 weighted pool needs a veBAL gauge. 

  • TempleDAO first seeded a weighted LP pool TEMPLE/DAI 80/20 for its great farming efficiency and little danger of temporary loss. 

  • We seeded our LBP pools with DAI instead of FRAX for accurate pricing.

Creator Economy

• Super Rare Discussion; Governance Funding Framework

  • This post was written by Callum about two weeks ago outlining the creation of an RFP Framework and Governance Fund that will allocate $250,000 USDC and 2.5M RARE (~3% of USDC and ~0.1% of RARE)

  • The Genesis of this proposal comes from the Can the Devs Do Something Proposal and the Wildfire proposal, where the common feedback was positive but the infrastructure was requested to be put in place

  • To quote Callum on the specifics of the RFP framework: “We anticipate the primary focus areas for outcomes of proposals going through this framework to be:

    • Governance processes and mechanisms

    • RARE token mechanisms

    • Community participation incentives (artist, collector, contributor)

    • Outreach and exposure initiatives”

  • Wildfire/FE is planning to create a solid framework that emulates something like ENS Small Grants

  • The ‘Governance Fund’ will also follow a standardized framework for a proposal which will be submitted to a committee for deliberation and approval

• Bankless Tempcheck; Guest Pass

  • The main issue that this temp check is bringing up is that the Guest Pass for Bankless DAO is infinitely renewable

  • This allows bad actors to “sidestep” the current guest pass levels and game the system which is an incentivization for “value-extracting” activities rather than value-adding ones

Infrastructure & Tooling

• Rocket Pool Discussion; Governance Process Fixes

  • Wander from the Grants and Bounties Committee is coming forward with ideas for improvement in RPIP-4

  • “Specify ‘promising community sentiment’”

    • Wander states that promising community sentiment is vague and leads to bad actors taking advantage of the ambiguity of this guideline

    • A simple fix would be voting on whether this sentiment actually aligns with a 30% threshold from at least 30 votes on the forum

     

  • “Higher Threshold for Vote Success”

    • Wander states that a 66% threshold for simple approval polls and a 15% margin for a multi-choice poll would solve a lot of the issues surrounding community fracture and the decisiveness of the community

     

  • “Lengthier Debate Times”

    • Wander does not feel that 7 days is an ample amount of time to debate on a discussion, rather he would like to see at least 21 days due to the inconsistency that people check the forum

     

  • “Required Research and RPIP-1 changes”

    • Finally, Wander states that all changes should have “an abundance of research” that accompanies changes along with certain specifications that should be made in RPIP-1

    • RPIP-1 has some verbiage that is left up to interpretation, so he suggests it be re-written

DeFi

• Aave Proposal; Security and Agility of Aave Smart Contracts via Continuous Formal Verification

  • This proposal builds on proposal 6308 to secure Aave-based smart contracts using formal verification and manual code review.

  • Certora has strengthened Aave's security and increased security community interaction in the last six months.

  • We want to boost Aave's security and allow agile product development.

  • This proposal will discuss Certora and formal verification, our progress in the past six months, and our security ambitions for Aave.

  • full details in the Governance Forum: https://governance.aave.com/t/security-and-agility-of-aave-smart-contracts-via-continuous-formal-verification/10181

• Aave Proposal; [ARC] Gauntlet <> Aave Renewal

  • A proposal to continue Gauntlet's 12-month engagement with Aave on ongoing market risk management to optimize capital efficiency and minimize insolvency and liquidations for long-term sustainable growth.

  • Gauntlet tries to enhance critical metrics without raising the protocol's net insolvent value:

  • Value at Risk: Conveys capital at risk due to insolvencies when markets are under duress.

  • Liquidations at Risk: Conveys capital at risk due to liquidations when markets are under duress.

  • Borrow Usage: Provides information about how aggressively depositors of collateral borrow against their supply.       

  • Gauntlet's service cost reflects our dedication to protocols and great protocol alignment.

  • The yearly upfront cost is log(Number of Assets, 10) * Total Borrow * Marginal Base Fee tier bps.

  • A 25% discount applies to yearly engagements.

  • If we invoiced today (38 distinct assets and $2B Total Borrow), it would be ~$2.4M each year.

  • Total Compensation:

    • 70% stablecoins (USDC, DAI, USDT)

    • 30% AAVE (at 30d VWAP)

  • Payment Schedule:

    • 30% of the insolvency refund's stablecoins are put in a vault.

    • Stablecoins/AAVE are streamed linearly over 1 year.

• Aave Proposal; Deploy Aave V3 on BNB Chain

  • BNB Chain's DeFi ecosystem is strong and its GameFi strength. BNB is the second-largest TVL chain with ~$7B.

  • BNB Chain intends to expand its DeFi capabilities and provide additional methods.

  • AAVE, one of the major DeFi ventures, leads the crypto debt markets and adds value to our ecosystem.

  • The v3 provides innovation, capital efficiency, security, and room for new initiatives. 

  • The v3 also adds innovation, capital efficiency, and security and can be leveraged by other projects. AAVE's model has been tested and is one of the most mature projects.

  • BNB Chain is willing to collaborate with the AAVE team to promote liquidity, bootstrapping users, and integrations to ensure AAVE's success. 

  • AAVE would have access to DeFi's second biggest TVL, the chain with the most active users and transactions, and a robust DeFi ecosystem with multiple ways to use its product. 

  • This will boost the DAO's treasury and provide a new revenue stream that, given BNB's weight in DeFi across chains, might be AAVE's most important.

  • We hope the AAVE community would embrace this concept and have a fruitful discussion before governance.

• Balancer Proposal; [BIP-104] Enable the STG/bb-rf-aUSDC Gauge [Optimism]

  • This pool uses the new weighted pool factory and contains a boosted / linear stable coin wrapper bb-rf-aUSDC - Beets Reaper Aave Boosted USDC.

  • Stargate aims to make Balancer its liquidity center by shifting liquidity there.

  • The protocol will earn yield on the enhanced share of this pool, making token pairing more efficient for both sides.

  • Under BIP-19, this gauge would become a "core pool" and employ protocol fees to buy votes. 

  • Bribes are unique to the Optimism chain, therefore read about them in the "Value" section.

  • This pool will help STG holders place their governance tokens and bb-rf-aUSDC to benefit LPs, traders, and Balancer.

  • This strengthens Stargate's collaboration and optimizes liquidity for everyone.

• Balancer Proposal; [BIP-105] Enable STG/bb-a-USD Gauge [Ethereum]

  • This pool uses the new weighted pool factory and contains a boosted / linear stable pool token bb-a-USD - Balancer's AAVE boosted stable pool token.

  • Stargate wants to keep shifting liquidity to Balancer.

  • For vote-escrowed Stargate governance, STG must be staked.

  • Stargate develops cross-chain/omnibridge solutions. Both parties will benefit from the protocol's yield on the enhanced share of this pool.

  • Under BIP-19, this gauge would become a "core pool" and employ protocol fees to buy votes.

  • Stargate helps Balancer achieve Defi multichain supremacy.

  • LPs, traders, and Balancer will profit from STG holders' governance tokens and bb-a-USD in this pool.

  • This strengthens Stargate's collaboration and optimizes liquidity for everyone.

• Balancer Proposal; [BIP-106] Enable sfrxETH/wstETH/rETH Gauge [Ethereum]

  • This pool employs the composable stable pool factory and contains staked frax eth (sfrxETH), wrapped staked ETH from Lido (wstETH), and rocket ETH from Rocket pool (rETH).

  • Rocket pool and lido have become ecosystem cornerstones by using metastable / composable stable pool types to leverage their yield-bearing assets.

  • Staked frax eth will join these two giants to ease trade and LPing across ETH's varied staking schemes.

  • Under BIP-19, this gauge would become a "core pool" and employ protocol fees to buy votes.

  • Balancer clearly prioritizes staked assets on all networks.

  • Balancer allows liquidity providers to exchange staked assets with different providers by varying the protocols that deliver them.

  • Balancer's users and the protocol profit tremendously from yield-bearing assets.

  • This Ethereum asset pool will be diversified and entertaining for everyone.

• 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 that prioritizes price stability and Treasury farming.

  • Our approach has provided $25–$40M in TVL to the Balancer Boosted Aave USD pool over the past 30 days.

  • The new TEMPLE/bb-a-USD 50/50 weighted pool needs a veBAL gauge. 

  • TempleDAO first seeded a weighted LP pool TEMPLE/DAI 80/20 for its great farming efficiency and little danger of temporary loss. 

  • We seeded our LBP pools with DAI instead of FRAX for accurate pricing.

Creator Economy

• Super Rare Discussion; Governance Funding Framework

  • This post was written by Callum about two weeks ago outlining the creation of an RFP Framework and Governance Fund that will allocate $250,000 USDC and 2.5M RARE (~3% of USDC and ~0.1% of RARE)

  • The Genesis of this proposal comes from the Can the Devs Do Something Proposal and the Wildfire proposal, where the common feedback was positive but the infrastructure was requested to be put in place

  • To quote Callum on the specifics of the RFP framework: “We anticipate the primary focus areas for outcomes of proposals going through this framework to be:

    • Governance processes and mechanisms

    • RARE token mechanisms

    • Community participation incentives (artist, collector, contributor)

    • Outreach and exposure initiatives”

  • Wildfire/FE is planning to create a solid framework that emulates something like ENS Small Grants

  • The ‘Governance Fund’ will also follow a standardized framework for a proposal which will be submitted to a committee for deliberation and approval

• Bankless Tempcheck; Guest Pass

  • The main issue that this temp check is bringing up is that the Guest Pass for Bankless DAO is infinitely renewable

  • This allows bad actors to “sidestep” the current guest pass levels and game the system which is an incentivization for “value-extracting” activities rather than value-adding ones

Infrastructure & Tooling

• Rocket Pool Discussion; Governance Process Fixes

  • Wander from the Grants and Bounties Committee is coming forward with ideas for improvement in RPIP-4

  • “Specify ‘promising community sentiment’”

    • Wander states that promising community sentiment is vague and leads to bad actors taking advantage of the ambiguity of this guideline

    • A simple fix would be voting on whether this sentiment actually aligns with a 30% threshold from at least 30 votes on the forum

     

  • “Higher Threshold for Vote Success”

    • Wander states that a 66% threshold for simple approval polls and a 15% margin for a multi-choice poll would solve a lot of the issues surrounding community fracture and the decisiveness of the community

     

  • “Lengthier Debate Times”

    • Wander does not feel that 7 days is an ample amount of time to debate on a discussion, rather he would like to see at least 21 days due to the inconsistency that people check the forum

     

  • “Required Research and RPIP-1 changes”

    • Finally, Wander states that all changes should have “an abundance of research” that accompanies changes along with certain specifications that should be made in RPIP-1

    • RPIP-1 has some verbiage that is left up to interpretation, so he suggests it be re-written