DeFi

• Aave Proposal; Aave DAO Stance on Ethereum POW Fork

  • This ARC requests that the Aave DAO make a commitment to favoring the Ethereum Mainnet's Proof of Stake consensus above any Ethereum forks using an alternative consensus (such as Proof of Work).

  • With the transition from Proof of Work to Proof of Stake, Ethereum is experiencing a fundamental revolution that has been long anticipated. This concise overview provided by BGD Labs provides more information regarding this alteration and its effects.

  • Testing has shown the code for the Aave Protocol to be fully operational after the Ethereum consensus upgrade. For public testing during their merging, Aave V3 was also installed on the Ropsten and Goerli testnets.

  • It is widely agreed among developers working on the protocol that any fork of Ethereum operating an alternative consensus cannot sustain a functional Aave Market (such as Proof of Work). The Aave DAO should think about firmly suggesting that the Aave Protocol commit to the Ethereum Mainnet, which operates under Proof of Stake consensus, in order to guarantee continued survival of the protocol for the community.

  • Countless other dApps and experiences in the DeFi ecosystem are powered by the Aave protocol, which is one of the biggest DeFi applications in the world by TVL. The DeFi ecosystem should receive a clear message from the DAO about its position on the Ethereum merger.

• Aave Discussion; [ARC] Ethereum v2 Reserve Factor - aFEI Holding Update

  • This ARC suggests redeeming all aFEI for FEI and trading it for DAI in response to Tribe DAO's intention to enter a terminal state. Approximately 619,185.82 aFEI units are now held by The Aave DAO in the Ethereum Reserve Factor. This proposal offers the community the chance to lessen exposure to the FEI stablecoin due to the uncertainties surrounding the future of Tribe DAO and FEI.

  • Risk can be further minimized by exchanging the FEI holding for a stablecoin with a more secure future after exchanging the aFEI for FEI. The FEI can be converted into DAI in this proposal by using the Tribe DAO Peg Stability Module, which carries a 0.03% cost.

  • Three primary liquidity providers dominate the market for FEI lending, which is highly concentrated. The top three liquidity providers are Tribe DAO, Aave DAO, and Badger DAO, with contributions of 88.76%, 5.47%, and 2.72%, respectively. All aFEI would be redeemed for FEI, according to Fei Labs' proposal, which would eliminate 10,067,143.35 units of FEI from the loan market. However, the number of FEI units held in the credit market is only 9,033,330.80.

  • 11,308,536.17 units of aFEI are now supported by the market, with 2,275,205.37 units of debt and 9,033,330.80 units accessible for users to borrow or for lenders to redeem their collateral from. Any User wishing to claim 9,033,330.80 or less may do so at this time, but things could change very fast once Fei Labs or other parties begin redeeming aFEI, which will reduce liquidity.

  • Aave DAO is in danger of getting stuck in an illiquid situation with 619,185.82 units of aFEI. Before Aave DAO redeems its position, the FEI held in the lending market will fall below 619,185.82 units, turning it into a trapped lender until the moment when borrowers pay back their loans. The market is anticipated to unwind as major liquidity suppliers redeem aFEI, which will boost utilization and interest rates and, presumably, prompt borrowers to repay loans.

  • By redeeming its aFEI before liquidity runs out, this plan aims to keep Aave DAO from becoming a trapped lender in the FEI market. Given recent developments, we implore all market participants to act responsibly.

• Balancer Discussion; [BIP-XX] Set Protocol Fee on Yield

  • A new mechanism called the ProtocolFeePercentagesProvider has been created as part of recent development work into the new composable stable pool and weighted pool factories to add existing and future types of protocol fees. The protocol fee on yield, which will define the percentage of yield the protocol takes as a fee on tokens like wstETH and bbaUSD, is the first new form of protocol fee to be implemented.

  • I suggest starting the protocol charge on yield at 50% as well, given that the protocol fee is now set at 50%. In the future, governance is free to change this proportion as they would any other protocol fee.

  • It should be noted that current metastable pools like wstETH, rETH, maticX, and stMATIC do not differentiate between swap fee and yield fee; instead, a 50% protocol fee is charged regardless of the source of the money.

• Balancer Discussion; [BIP-XX] Introduce Gauge Framework v1

  • Recently, a large number of projects with a relatively low market valuation have flooded Balancer with gauge approval requests. A small number of pools that contain tokens with a comparatively high market value currently account for the vast majority of Balancer's revenue.

  • Striking a balance between optimizing for revenue generation and supporting small cap or newer businesses that can one day develop to become substantial revenue generators themselves is becoming more and more important.

  • The goal of this "Gauge Framework v1" is to provide the Balancer community with a straightforward and impartial grading system that they may use to go through all present and upcoming gauges. There are two stages to the analysis: first, an "overall" factor is derived by combining a "weight" factor and a "market cap" factor.

  • The second step would use a "revenue" element, which would enable those tiny pools that are producing large revenue to meet the barrier, while all gauges scoring below that threshold would go on. A pool will be required to migrate to a new gauge with a 2% maximum cap on the emissions it can collect if it is still below the threshold after phase 2.

Public Goods

• ENS Discussion; Non-ETH Address Verification

  • This discussion brings up a solution to adding Non-ETH addresses to ENS by Alpha-Numeric verification of chains like BTC or dodge

  • This would allow ENS to be utilized across many chains other than ENS and build up the use case

  • This discussion also brings up the point to start off small and simple by starting with BTC first and moving on step by step

Creator Economy

• Bankless Discussion; Bankless DAO Gitcoin Grant Proposal

  • This discussion raises the issue that the bDAO ecosystem grants round hasn’t reached a consensus on Gitcoin

  • The overall thesis of Bankless is to drive the awareness and adoption of bankless money systems like Ethereum

  • The three main public goods projects to do so are the Bankless Academy, Bankless Africa and International Media Nodes

  • Bankless Academy:

    • A structured set of courses to help disseminate information on web3 and reward with POAP as a proof of knowledge

  • Bankless Africa:

    • This is purposed to help with the web3 development in Africa specifically

    • Aims to be the native web3 educational platform in Africa

  • International Nodes Media:

    • This project focuses on non-English speakers (85% of the population) by translating and transcribing educational material about web3

    • This project has seen tremendous growth in the past year with Q1 of 2022 growing by 52% alone

Infrastructure & Tooling

• Rocket Pool Discussion; Committee Selection Process

  • This discussion reviews the protocols for the committee selection process

  • Nominations:

    • Nominees are posted for 5 days on the forum

    • You can nominate anyone and also ask to be taken off

    • If spots aren’t filled the process will restart

  • Nominee information sharing requirements:

    • Alignment statement

    • Conflict statement

    • Contribution statement

    • If a nominee does not provide these he/she will be removed from the race

  • Membership Selection:

    • Option A - unweighted voting

    • Option B - weighted voting

  • This discussion is still in the works and could use feedback and deliberation

DeFi

• Aave Proposal; Aave DAO Stance on Ethereum POW Fork

  • This ARC requests that the Aave DAO make a commitment to favoring the Ethereum Mainnet's Proof of Stake consensus above any Ethereum forks using an alternative consensus (such as Proof of Work).

  • With the transition from Proof of Work to Proof of Stake, Ethereum is experiencing a fundamental revolution that has been long anticipated. This concise overview provided by BGD Labs provides more information regarding this alteration and its effects.

  • Testing has shown the code for the Aave Protocol to be fully operational after the Ethereum consensus upgrade. For public testing during their merging, Aave V3 was also installed on the Ropsten and Goerli testnets.

  • It is widely agreed among developers working on the protocol that any fork of Ethereum operating an alternative consensus cannot sustain a functional Aave Market (such as Proof of Work). The Aave DAO should think about firmly suggesting that the Aave Protocol commit to the Ethereum Mainnet, which operates under Proof of Stake consensus, in order to guarantee continued survival of the protocol for the community.

  • Countless other dApps and experiences in the DeFi ecosystem are powered by the Aave protocol, which is one of the biggest DeFi applications in the world by TVL. The DeFi ecosystem should receive a clear message from the DAO about its position on the Ethereum merger.

• Aave Discussion; [ARC] Ethereum v2 Reserve Factor - aFEI Holding Update

  • This ARC suggests redeeming all aFEI for FEI and trading it for DAI in response to Tribe DAO's intention to enter a terminal state. Approximately 619,185.82 aFEI units are now held by The Aave DAO in the Ethereum Reserve Factor. This proposal offers the community the chance to lessen exposure to the FEI stablecoin due to the uncertainties surrounding the future of Tribe DAO and FEI.

  • Risk can be further minimized by exchanging the FEI holding for a stablecoin with a more secure future after exchanging the aFEI for FEI. The FEI can be converted into DAI in this proposal by using the Tribe DAO Peg Stability Module, which carries a 0.03% cost.

  • Three primary liquidity providers dominate the market for FEI lending, which is highly concentrated. The top three liquidity providers are Tribe DAO, Aave DAO, and Badger DAO, with contributions of 88.76%, 5.47%, and 2.72%, respectively. All aFEI would be redeemed for FEI, according to Fei Labs' proposal, which would eliminate 10,067,143.35 units of FEI from the loan market. However, the number of FEI units held in the credit market is only 9,033,330.80.

  • 11,308,536.17 units of aFEI are now supported by the market, with 2,275,205.37 units of debt and 9,033,330.80 units accessible for users to borrow or for lenders to redeem their collateral from. Any User wishing to claim 9,033,330.80 or less may do so at this time, but things could change very fast once Fei Labs or other parties begin redeeming aFEI, which will reduce liquidity.

  • Aave DAO is in danger of getting stuck in an illiquid situation with 619,185.82 units of aFEI. Before Aave DAO redeems its position, the FEI held in the lending market will fall below 619,185.82 units, turning it into a trapped lender until the moment when borrowers pay back their loans. The market is anticipated to unwind as major liquidity suppliers redeem aFEI, which will boost utilization and interest rates and, presumably, prompt borrowers to repay loans.

  • By redeeming its aFEI before liquidity runs out, this plan aims to keep Aave DAO from becoming a trapped lender in the FEI market. Given recent developments, we implore all market participants to act responsibly.

• Balancer Discussion; [BIP-XX] Set Protocol Fee on Yield

  • A new mechanism called the ProtocolFeePercentagesProvider has been created as part of recent development work into the new composable stable pool and weighted pool factories to add existing and future types of protocol fees. The protocol fee on yield, which will define the percentage of yield the protocol takes as a fee on tokens like wstETH and bbaUSD, is the first new form of protocol fee to be implemented.

  • I suggest starting the protocol charge on yield at 50% as well, given that the protocol fee is now set at 50%. In the future, governance is free to change this proportion as they would any other protocol fee.

  • It should be noted that current metastable pools like wstETH, rETH, maticX, and stMATIC do not differentiate between swap fee and yield fee; instead, a 50% protocol fee is charged regardless of the source of the money.

• Balancer Discussion; [BIP-XX] Introduce Gauge Framework v1

  • Recently, a large number of projects with a relatively low market valuation have flooded Balancer with gauge approval requests. A small number of pools that contain tokens with a comparatively high market value currently account for the vast majority of Balancer's revenue.

  • Striking a balance between optimizing for revenue generation and supporting small cap or newer businesses that can one day develop to become substantial revenue generators themselves is becoming more and more important.

  • The goal of this "Gauge Framework v1" is to provide the Balancer community with a straightforward and impartial grading system that they may use to go through all present and upcoming gauges. There are two stages to the analysis: first, an "overall" factor is derived by combining a "weight" factor and a "market cap" factor.

  • The second step would use a "revenue" element, which would enable those tiny pools that are producing large revenue to meet the barrier, while all gauges scoring below that threshold would go on. A pool will be required to migrate to a new gauge with a 2% maximum cap on the emissions it can collect if it is still below the threshold after phase 2.

Public Goods

• ENS Discussion; Non-ETH Address Verification

  • This discussion brings up a solution to adding Non-ETH addresses to ENS by Alpha-Numeric verification of chains like BTC or dodge

  • This would allow ENS to be utilized across many chains other than ENS and build up the use case

  • This discussion also brings up the point to start off small and simple by starting with BTC first and moving on step by step

Creator Economy

• Bankless Discussion; Bankless DAO Gitcoin Grant Proposal

  • This discussion raises the issue that the bDAO ecosystem grants round hasn’t reached a consensus on Gitcoin

  • The overall thesis of Bankless is to drive the awareness and adoption of bankless money systems like Ethereum

  • The three main public goods projects to do so are the Bankless Academy, Bankless Africa and International Media Nodes

  • Bankless Academy:

    • A structured set of courses to help disseminate information on web3 and reward with POAP as a proof of knowledge

  • Bankless Africa:

    • This is purposed to help with the web3 development in Africa specifically

    • Aims to be the native web3 educational platform in Africa

  • International Nodes Media:

    • This project focuses on non-English speakers (85% of the population) by translating and transcribing educational material about web3

    • This project has seen tremendous growth in the past year with Q1 of 2022 growing by 52% alone

Infrastructure & Tooling

• Rocket Pool Discussion; Committee Selection Process

  • This discussion reviews the protocols for the committee selection process

  • Nominations:

    • Nominees are posted for 5 days on the forum

    • You can nominate anyone and also ask to be taken off

    • If spots aren’t filled the process will restart

  • Nominee information sharing requirements:

    • Alignment statement

    • Conflict statement

    • Contribution statement

    • If a nominee does not provide these he/she will be removed from the race

  • Membership Selection:

    • Option A - unweighted voting

    • Option B - weighted voting

  • This discussion is still in the works and could use feedback and deliberation