Wildfiredao.ethWildfire Gov Update 8/26/22
DeFiAave Proposal; [ARC] Risk Parameter Updates for Ethereum Aave v2 MarketThis ARC proposes suspending deposits, disabling borrowing, and sending 100% of the interest paid by FEI borrowers to the Reserve Factor in reaction to the Tribe DAO's intention to reach a terminal state.The TRIBE governance token and the DAO's assets are being dissolved by Tribe DAO. Due to this, FEI will be backed by DAI 1:1 and redeemable at 1FEI:1DAI. Tribe DAO is entering a terminal condition, and the FE...
Wildfiredao.ethWildfire Gov Update 10/18/22
DeFiAave Proposal; Add TRYB to Aave V3 on Avalanche Network, Isolation ModeBiLira would like to onboard TRYB. This AIP lists BiLira (TRYB) on AAVE V3, Avalanche Network, Isolation Mode, the only 1:1 Turkish Lira-backed stablecoin.The full-reserve stable cryptocurrency BiLira (TRYB) is built on the Ethereum blockchain and available on 6 blockchains. It is secured, collateralized 1:1, and ERC-20 token compliant.TRYB (BiLira) is Aave's good borrowing and collateral asset.Aave will get more ...
Wildfiredao.ethWildfire Gov Update 8/12/22
DeFiAave Proposal; ARC: Add OP as Collateral to AAVE v3The objective of the proposal is to add the OP token to Aave V3 on Optimism as a collateral asset. As the pool's initial liquidity is bootstrapped, the Optimism Foundation may additionally provide incentives.Optimism is an L2 scaling solution that will be introduced by the end of 2021 and is EVM equal. Currently, optimism supports more than 100 dapps and $500 million in on-chain value. Having already saved its customers over $1B in g...
Wildfiredao.ethWildfire Gov Update 8/26/22
DeFiAave Proposal; [ARC] Risk Parameter Updates for Ethereum Aave v2 MarketThis ARC proposes suspending deposits, disabling borrowing, and sending 100% of the interest paid by FEI borrowers to the Reserve Factor in reaction to the Tribe DAO's intention to reach a terminal state.The TRIBE governance token and the DAO's assets are being dissolved by Tribe DAO. Due to this, FEI will be backed by DAI 1:1 and redeemable at 1FEI:1DAI. Tribe DAO is entering a terminal condition, and the FE...
Wildfiredao.ethWildfire Gov Update 10/18/22
DeFiAave Proposal; Add TRYB to Aave V3 on Avalanche Network, Isolation ModeBiLira would like to onboard TRYB. This AIP lists BiLira (TRYB) on AAVE V3, Avalanche Network, Isolation Mode, the only 1:1 Turkish Lira-backed stablecoin.The full-reserve stable cryptocurrency BiLira (TRYB) is built on the Ethereum blockchain and available on 6 blockchains. It is secured, collateralized 1:1, and ERC-20 token compliant.TRYB (BiLira) is Aave's good borrowing and collateral asset.Aave will get more ...
Wildfiredao.ethWildfire Gov Update 8/12/22
DeFiAave Proposal; ARC: Add OP as Collateral to AAVE v3The objective of the proposal is to add the OP token to Aave V3 on Optimism as a collateral asset. As the pool's initial liquidity is bootstrapped, the Optimism Foundation may additionally provide incentives.Optimism is an L2 scaling solution that will be introduced by the end of 2021 and is EVM equal. Currently, optimism supports more than 100 dapps and $500 million in on-chain value. Having already saved its customers over $1B in g...
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DeFi
Aave Proposal; Risk Parameter Updates for Aave v2 Ethereum (USDC LT and LTV)
A proposal to adjust 2 total risk parameters, including Liquidation Threshold (LT) and Loan-To-Value (LTV) for USDC on Aave V2 Ethereum.
By disabling borrow or freeze throughout v2 markets, AAVE community has reduced risk across numerous highly volatile assets.
This proposal prioritizes protocol security and risk mitigation over market optimization.
This ARC has two goals:
Reduce Liquidation Thresholds and raise Aave price manipulation capital ratios.
Encourage v3 user migrations: This also helps migration to v3, where these assets may be used in E-mode.
Liquidation Threshold reduction may qualify user accounts for liquidation, thus we want to inform the community at each stage.
Chaos Labs recommend using the Risk-Off Framework 2 to reduce AIPs by up to 3% to mitigate this impact.
Wildfire Stance: We support the 150bps LT decrease & LTV 80% option because it is the best step to take to reduce the impact of the recommended Liquidation Threshold reductions and also minimize the number of executed accounts and liquidation value.
Aave Proposal; Risk Parameter Updates for Aave v2 Ethereum (DAI LT and LTV)
A proposal to adjust 2 total risk parameters, including Liquidation Threshold (LT) and Loan-To-Value (LTV) for DAI on Aave V2 Ethereum.
A proposal to adjust 2 total risk parameters, including Liquidation Threshold (LT) and Loan-To-Value (LTV) for USDC on Aave V2 Ethereum.
By disabling borrow or freeze throughout v2 markets, AAVE community has reduced risk across numerous highly volatile assets.
This proposal prioritizes protocol security and risk mitigation over market optimization.
This ARC has two goals:
Reduce Liquidation Thresholds and raise Aave price manipulation capital ratios.
Encourage v3 user migrations: This also helps migration to v3, where these assets may be used in E-mode.
Liquidation Threshold reduction may qualify user accounts for liquidation, thus we want to inform the community at each stage.
Chaos Labs recommend using the Risk-Off Framework 2 to reduce AIPs by up to 3% to mitigate this impact.
Wildfire Stance: We support voting for a 300bps LT decrease & LTV of 80% since the USD worth of liquidations and user losses is low between 150bps and 300bps.
Element Proposal; Reconsidering EGP-5
This proposal aims to clarify the implementation of EGP-5’s retroactive airdrop and cease its incentives.
Motivation:
Lack of effectiveness: EGP-5 needed to broaden distribution, keep TVL, and draw new customers. The incentive scheme has yet to be publicized, so it's unclear how it will attract new customers.
Unclear Implementation: Side-channel debates have arisen around EGP-5's token distribution criteria. The DAO's integrity is in danger if an incentive program continues without a distribution proposal.
Better Alternatives: To properly incentivize these users, ELFI might be issued to YT holders continuously or upon maturity. This would increase Element's local asset demand and long-term involvement.
Specification:
Clarified Implementation of EGP-5: From April 29th through October 29th, liquidity providers will get 5479 ELFI based on their share of Element's TVL across all pools (denominated in USD). Wallets' accumulated ELFI will be airdropped.
Cease EGP-5 Incentivization: EGP-5 calls the incentivization an "experimental measure" with no end date. The DAO should officially vote on whether to maintain EGP-5's incentivization policy.
Discuss and Propose Alternate Incentivization Strategies: Incentivization tactics can increase and maintain users, but they must be carefully applied. The community is encouraged to comment on and suggest strategies.
Infrastructure & Tooling
Optimism Proposal; Grants Council
This proposal seeks to make some changes to the Season 3 Governance Fund Grants:
Creating a more streamlined and consistent process for proposers
Setting a pace for grant distributions
Defining a clear scope, with clear differentiation from Partner Fund
Creating accountability via smaller grant sizes and milestone-based distributions
Reducing the workload on delegates so that they have more time to weigh in on high-impact votes, better positioning the grants process within the broader responsibilities of Token House governance
Wildfire Stance: The Grants Council proposal is also favorable for the OP ecosystem because we were able to experience firsthand the inefficiencies and conflicts present in the previous grants process. We believe that creating a specialized body is the best way to keep the grants program functioning properly and always respecting the mission of the OP collective
Optimism Proposal; Protocol Delegation Program
A total of 5M OP would be delegated across as many as 23 protocols, using idle tokens in the Other Initiatives category of the Governance Fund. Delegations will be made at the beginning of each Season, for a maximum of 2 Seasons.
Each protocol will receive a flat delegation amount
Protocols that are Optimism Native will receive a multiplier of 1.25x the flat rate
DeFi
Aave Proposal; Risk Parameter Updates for Aave v2 Ethereum (USDC LT and LTV)
A proposal to adjust 2 total risk parameters, including Liquidation Threshold (LT) and Loan-To-Value (LTV) for USDC on Aave V2 Ethereum.
By disabling borrow or freeze throughout v2 markets, AAVE community has reduced risk across numerous highly volatile assets.
This proposal prioritizes protocol security and risk mitigation over market optimization.
This ARC has two goals:
Reduce Liquidation Thresholds and raise Aave price manipulation capital ratios.
Encourage v3 user migrations: This also helps migration to v3, where these assets may be used in E-mode.
Liquidation Threshold reduction may qualify user accounts for liquidation, thus we want to inform the community at each stage.
Chaos Labs recommend using the Risk-Off Framework 2 to reduce AIPs by up to 3% to mitigate this impact.
Wildfire Stance: We support the 150bps LT decrease & LTV 80% option because it is the best step to take to reduce the impact of the recommended Liquidation Threshold reductions and also minimize the number of executed accounts and liquidation value.
Aave Proposal; Risk Parameter Updates for Aave v2 Ethereum (DAI LT and LTV)
A proposal to adjust 2 total risk parameters, including Liquidation Threshold (LT) and Loan-To-Value (LTV) for DAI on Aave V2 Ethereum.
A proposal to adjust 2 total risk parameters, including Liquidation Threshold (LT) and Loan-To-Value (LTV) for USDC on Aave V2 Ethereum.
By disabling borrow or freeze throughout v2 markets, AAVE community has reduced risk across numerous highly volatile assets.
This proposal prioritizes protocol security and risk mitigation over market optimization.
This ARC has two goals:
Reduce Liquidation Thresholds and raise Aave price manipulation capital ratios.
Encourage v3 user migrations: This also helps migration to v3, where these assets may be used in E-mode.
Liquidation Threshold reduction may qualify user accounts for liquidation, thus we want to inform the community at each stage.
Chaos Labs recommend using the Risk-Off Framework 2 to reduce AIPs by up to 3% to mitigate this impact.
Wildfire Stance: We support voting for a 300bps LT decrease & LTV of 80% since the USD worth of liquidations and user losses is low between 150bps and 300bps.
Element Proposal; Reconsidering EGP-5
This proposal aims to clarify the implementation of EGP-5’s retroactive airdrop and cease its incentives.
Motivation:
Lack of effectiveness: EGP-5 needed to broaden distribution, keep TVL, and draw new customers. The incentive scheme has yet to be publicized, so it's unclear how it will attract new customers.
Unclear Implementation: Side-channel debates have arisen around EGP-5's token distribution criteria. The DAO's integrity is in danger if an incentive program continues without a distribution proposal.
Better Alternatives: To properly incentivize these users, ELFI might be issued to YT holders continuously or upon maturity. This would increase Element's local asset demand and long-term involvement.
Specification:
Clarified Implementation of EGP-5: From April 29th through October 29th, liquidity providers will get 5479 ELFI based on their share of Element's TVL across all pools (denominated in USD). Wallets' accumulated ELFI will be airdropped.
Cease EGP-5 Incentivization: EGP-5 calls the incentivization an "experimental measure" with no end date. The DAO should officially vote on whether to maintain EGP-5's incentivization policy.
Discuss and Propose Alternate Incentivization Strategies: Incentivization tactics can increase and maintain users, but they must be carefully applied. The community is encouraged to comment on and suggest strategies.
Infrastructure & Tooling
Optimism Proposal; Grants Council
This proposal seeks to make some changes to the Season 3 Governance Fund Grants:
Creating a more streamlined and consistent process for proposers
Setting a pace for grant distributions
Defining a clear scope, with clear differentiation from Partner Fund
Creating accountability via smaller grant sizes and milestone-based distributions
Reducing the workload on delegates so that they have more time to weigh in on high-impact votes, better positioning the grants process within the broader responsibilities of Token House governance
Wildfire Stance: The Grants Council proposal is also favorable for the OP ecosystem because we were able to experience firsthand the inefficiencies and conflicts present in the previous grants process. We believe that creating a specialized body is the best way to keep the grants program functioning properly and always respecting the mission of the OP collective
Optimism Proposal; Protocol Delegation Program
A total of 5M OP would be delegated across as many as 23 protocols, using idle tokens in the Other Initiatives category of the Governance Fund. Delegations will be made at the beginning of each Season, for a maximum of 2 Seasons.
Each protocol will receive a flat delegation amount
Protocols that are Optimism Native will receive a multiplier of 1.25x the flat rate
Proposal to add gauge support for a newly created qETH/ETH pool on Ethereum.
Tranches is a yield-enhancing asset tracker launched on BNB Chain in June 2021.
The base of the Tranches ETH liquid staking solution on Ethereum is the qETH/ETH pool.
The qETH/ETH pool is a key component to a seamless user experience, and Tranchess hopes to offer a comparable increased yield for Ethereum users with the ETH liquid staking fund.
A veBAL gauge would encourage users to engage and aid in fast increasing the pool's initial liquidity for a more seamless swapping experience.
The pool would organically expand with the protocol, and we anticipate facilitating the incentivization with Hidden Hand and the Balancer bribery story.
Wildfire Stance: We support the addition of this gauge since it will expand Balancer's ecosystem and serve as an excellent source of liquidity for DeFi.
Balancer Proposal; [BIP-128] Peace Treaty
Aura, Balancer, the veBAL whale, and Humpy have all had fascinating recent months.
Rationality is important in decentralized organizations, even when they don't always agree with others.
When opposing points of view can be discussed civilly and constructively and people can participate in government, the Balancer is a stronger community.
Aura, Balancer, the veBAL whale, and Humpy have been talking to each other in the past several days and have reached an agreement and would like to formalize on-chain as a BIP.
Wildfire Stance: We supports the consensus that was reached with all parties. This agreement will be better for the advancement and progress of Balancer.
Balancer Proposal; [BIP-129] Swap BAL for USDC using Aave’s Bonding Contract
According to current data, the DAO will run out of stablecoins sometime in Q3/Q4 2023.
Although progress has been made in raising funds, it would still be wise to extend the DAO's runway as soon as possible.
Through the use of Aave's one-way bonding curve contract, a chance has arisen to smoothly convert BAL to USDC.
In essence, this may be seen as a Treasury exchange involving Aave DAO, BAL for USDC.
They would utilize this BAL to lock in veBAL and cast votes for Aave-enhanced pools.
Wildfire Stance: We support this proposal as it boosts runway and increases operating capital for the DAO.
Balancer Proposal; [BIP-130] Kill FDT/WETH Gauge
It would be wise for Balancer to remove the gauge for FDT/WETH in light of the previously announced shift of FDT to BOND.
This builds on earlier suggestions, such as eliminating the FEI/WETH gauge when TribeDAO disbanded.
WIldfire Stance: We support the proposal as it is the next best step considering the migration.
Protocols that already have an Optimism delegate will receive a multiplier of 1.25x the flat rate. Delegates must have identified their protocol affiliation in a delegate commitment posted by 11/9/22 (end of Season 2) and have voted on at least 10 votes through Season 2.
Protocols may receive both multipliers if they meet both criteria
Wildfire Stance: The issue of self-delegation for native OP protocols has been discussed in the community for quite some time and there seems to be consensus on two things:
It is OK to reward native OP protocols
There should be some safeguards to avoid unfavorable scenarios (suggestions regarding this have already been added to the proposal)
Proposal to add gauge support for a newly created qETH/ETH pool on Ethereum.
Tranches is a yield-enhancing asset tracker launched on BNB Chain in June 2021.
The base of the Tranches ETH liquid staking solution on Ethereum is the qETH/ETH pool.
The qETH/ETH pool is a key component to a seamless user experience, and Tranchess hopes to offer a comparable increased yield for Ethereum users with the ETH liquid staking fund.
A veBAL gauge would encourage users to engage and aid in fast increasing the pool's initial liquidity for a more seamless swapping experience.
The pool would organically expand with the protocol, and we anticipate facilitating the incentivization with Hidden Hand and the Balancer bribery story.
Wildfire Stance: We support the addition of this gauge since it will expand Balancer's ecosystem and serve as an excellent source of liquidity for DeFi.
Balancer Proposal; [BIP-128] Peace Treaty
Aura, Balancer, the veBAL whale, and Humpy have all had fascinating recent months.
Rationality is important in decentralized organizations, even when they don't always agree with others.
When opposing points of view can be discussed civilly and constructively and people can participate in government, the Balancer is a stronger community.
Aura, Balancer, the veBAL whale, and Humpy have been talking to each other in the past several days and have reached an agreement and would like to formalize on-chain as a BIP.
Wildfire Stance: We supports the consensus that was reached with all parties. This agreement will be better for the advancement and progress of Balancer.
Balancer Proposal; [BIP-129] Swap BAL for USDC using Aave’s Bonding Contract
According to current data, the DAO will run out of stablecoins sometime in Q3/Q4 2023.
Although progress has been made in raising funds, it would still be wise to extend the DAO's runway as soon as possible.
Through the use of Aave's one-way bonding curve contract, a chance has arisen to smoothly convert BAL to USDC.
In essence, this may be seen as a Treasury exchange involving Aave DAO, BAL for USDC.
They would utilize this BAL to lock in veBAL and cast votes for Aave-enhanced pools.
Wildfire Stance: We support this proposal as it boosts runway and increases operating capital for the DAO.
Balancer Proposal; [BIP-130] Kill FDT/WETH Gauge
It would be wise for Balancer to remove the gauge for FDT/WETH in light of the previously announced shift of FDT to BOND.
This builds on earlier suggestions, such as eliminating the FEI/WETH gauge when TribeDAO disbanded.
WIldfire Stance: We support the proposal as it is the next best step considering the migration.
Protocols that already have an Optimism delegate will receive a multiplier of 1.25x the flat rate. Delegates must have identified their protocol affiliation in a delegate commitment posted by 11/9/22 (end of Season 2) and have voted on at least 10 votes through Season 2.
Protocols may receive both multipliers if they meet both criteria
Wildfire Stance: The issue of self-delegation for native OP protocols has been discussed in the community for quite some time and there seems to be consensus on two things:
It is OK to reward native OP protocols
There should be some safeguards to avoid unfavorable scenarios (suggestions regarding this have already been added to the proposal)
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