DeFi

• Aave Proposal; Updated Proposal: Chaos Labs - Risk & Simulation Platform

  • This platform will onboard new collateral kinds, assets, and bespoke protocol research with publicly available analysis and outcomes.

  • Chaos Labs will focus on risk management and parameter recommendations for all v3 markets. This includes:

  • Risk parameter recommendations and tooling for the community covering:

    • Borrow & lending caps

    • Collateral factors

    • Interest rates

  • Asset listing risk analytics & tooling

  • Open-sourced agent access

  • Extending the AAVE v3 Risk Analytics App 3

  • Community Risk Calls

  • Payment System :

    • Base fee $500k

    • $350k in incentive compensation depending on community platform delivery.

    • The whole term is 12 months, after 6 months, Aave DAO can terminate the contract if Chaos Labs' deliverables are unsatisfactory.

• Aave Proposal; [ARC] Change Admin role of Optimism and Arbitrum V3 markets

  • Aave V3 Arbitrum & Optimism markets are overseen by the Community Guardian, a 6/10 elected multisig of 10 Aave community members responsible for enforcing community snapshot on-chain judgments.

  • This ARC replaces the community guardian with Aave governance contracts for Arbitrum & Optimism V3 markets.

  • Fading the guardian position promotes decentralization of the Aave protocol.

  • If this AIP gains governance approval, the community guardian will have the power to freeze markets or cancel AIP votes in event of crisis or harmful AIPs.

• Element Proposal; EGP-XX: DAO Asset Unwind + Consolidation

  • Unwind derivative assets in the GSC and DAO wallets, and combine them to DAO wallet

  • Element DAO has $175k in Yearn derivatives. The GSC wallet holds $45,000 in Element LP and Balancer LP derivatives. To optimize DAO operations, these assets must be unwound and added to the DAO treasury.

  • The DAO may have non-ELFI assets, but none are DAI, ETH, or USDC. Derivative positions in the GSC and DAO Treasury must be unwound for the DAO to use these assets.

  • Assets transferred between the DAO treasury and the GSC wallet eschew the Element DAO governance method for funding the GSC wallet.

  • By unwinding ‘all’ assets and consolidating them in the DAO treasury, the DAO will be able to follow transparent distribution or treasury policies.

  • For ‘each’ wallet, unwind derivative assets into basic assets. USDC should replace all stablecoins.

    • Swap wBTC to USDC

    • Swap stETH for ETH

    • Send all converted ETH and USDC from the GSC wallet to the DAO treasury after unwind.

• Balancer Proposal; [BIP-78] Delegate Aave Holding to Llama

  • The proposal allows the Balancer community to delegate any AAVE and stkAAVE proposal power and voting rights to Llama.

  • Llama is active in the Balancer and Aave communities, seeking connections to unlock development potential. We noticed that Balancer isn't engaging in Aave governance; thus, we'd want to allow the community to delegate governance power.

  • The AAVE holding has not participated in Aave's governance since the AAVE <> BAL token swap, which is unsatisfactory given the need to increase governance participation inside DeFi.

  • Balancer's AAVE and/or stkAAVE holdings will be used in Aave's governance. Balancer's voting powers will always be used to advocate Balancer's interests in the Aave community. If needed, Llama will consult the veBallers via the Discord Ballers channel.

• Balancer Proposal; [BIP-79] Enable COMP/wstETH Gauge [Ethereum]

• This pool employs the new weighted pool factory to apply protocol fees to yield tokens. This gauge would be a "core pool" under BIP-19, meaning protocol fees would be used to buy votes.

• Balancer has acquired significant COMP/WETH liquidity, which presents an opportunity to bootstrap a yield-bearing version with wstETH. This should result in higher protocol income and allows this liquidity to be self-sustaining via BIP-19 in case a large COMP/WETH voter decides to move on.

• If Balancer can secure our position as the primary liquidity source, it will be profitable in the long run.

• Balancer Proposal; [BIP-80] Enable bb-rf-asUSD/bb-rf-aUSD Gauge [Optimism]

  • This pool uses the new composable stable pool factory, allowing us to apply the protocol fee to yield-bearing tokens.

  • bb-rf-asUSD (Beets Reaper Aave Boosted sUSD) uses a linear pool to deposit sUSD into a Reaper sUSD Vault that only deposits into Aave. bb-rf-aUSD represents boosted USDC, USDT, and DAI.

  • Synthetix moved to Optimism, becoming sUSD the most traded stablecoin outside the regular three. Since Aave lists sUSD as an asset, enhanced pools can deliver the best intrinsic yield on sUSD liquidity in the network.

• Balancer Proposal; [BIP-81] Enable wstETH/bb-rf-aUSD/bb-rf-aWBTC 50/25/25 Gauge [Optimism]

  • This pool uses the new weighted pool factory, which allows us to apply the protocol fee to yield-bearing tokens.

  • bb-rf-aWBTC (Beets Reaper Aave Boosted WBTC) implies we're utilizing a linear pool to deposit WBTC into a Reaper WBTC Vault that exclusively deposits into Aave.

  • bb-rf-aUSD represents boosted USDC, USDT, and DAI. wstETH is wrapped and staked ETH by Lido.

  • We want to be the primary source of wstETH liquidity on Optimism. To increase trading activity, part of this method involves adding wstETH to weighted pools with non-correlated assets.

  • This pool is a variant of the popular "tricrypto" pool on Curve. We will increase yield side costs by giving wstETH a 50% weighting without significantly (if at all) reducing trading efficiency compared to equal weighted.

• Balancer Proposal; [BIP-82] Enable bb-rf-aWETH/wstETH Gauge [Optimism]

  • This pool uses the new composable stable pool factory, allowing us to apply the protocol fee to yield-bearing tokens.

  • bb-rf-aWETH (Beets Reaper Aave Boosted wETH) implies we're utilizing a linear pool to deposit weth into a Reaper WETH Vault that exclusively deposits into Aave.

  • wstETH is liquid-staked ETH. bb-rf-aWETH is Beets Reaper Aave Boosted wETH.

  • This pool is the cornerstone of our plan; we'll roll out more wstETH pools to boost trade volume. This pool showcases increased pools' power.

Infrastructure & Tooling

• Pokt Proposal; Stake Weighted Servicer Rewards - R&D Reimbursements

  • This proposal seeks to reimburse @msa6867 for his work on PIP and PUP 21 for helping create stake-weighted rewards

  • This reimbursement would be 300,000 $POKT which in market value be equivalent to ~$22,800 but has saved the infrastructure costs upwards of hundreds of thousands of dollars

  • The node consolidation objective achieved:

    • Lower costs for node runners.

    • Increased network security with the increase in validator threshold caused by the stepping of PIP22.

    • Reducing node count at a protocol level allows for a faster healthy network with reduced bloating

  • Other objective achieved

    • Prevent starving small node runners of rewards or forcing them off the network

    • Maintain WAGMI/FREN emission objectives

    • Preserve DApp QoS even on chains with less volume

    • Isolate node rewards from the consolidation choice made by other node runners

    • Avoid the draconian alternative of forced consolidation or adding stake

    • Is implementable on a one-to-two-month time scale

  • Dissenting opinion:

    • This payment seems like a lot of money in terms of Pokt compensation, this will need further deliberation.

DeFi

• Aave Proposal; Updated Proposal: Chaos Labs - Risk & Simulation Platform

  • This platform will onboard new collateral kinds, assets, and bespoke protocol research with publicly available analysis and outcomes.

  • Chaos Labs will focus on risk management and parameter recommendations for all v3 markets. This includes:

  • Risk parameter recommendations and tooling for the community covering:

    • Borrow & lending caps

    • Collateral factors

    • Interest rates

  • Asset listing risk analytics & tooling

  • Open-sourced agent access

  • Extending the AAVE v3 Risk Analytics App 3

  • Community Risk Calls

  • Payment System :

    • Base fee $500k

    • $350k in incentive compensation depending on community platform delivery.

    • The whole term is 12 months, after 6 months, Aave DAO can terminate the contract if Chaos Labs' deliverables are unsatisfactory.

• Aave Proposal; [ARC] Change Admin role of Optimism and Arbitrum V3 markets

  • Aave V3 Arbitrum & Optimism markets are overseen by the Community Guardian, a 6/10 elected multisig of 10 Aave community members responsible for enforcing community snapshot on-chain judgments.

  • This ARC replaces the community guardian with Aave governance contracts for Arbitrum & Optimism V3 markets.

  • Fading the guardian position promotes decentralization of the Aave protocol.

  • If this AIP gains governance approval, the community guardian will have the power to freeze markets or cancel AIP votes in event of crisis or harmful AIPs.

• Element Proposal; EGP-XX: DAO Asset Unwind + Consolidation

  • Unwind derivative assets in the GSC and DAO wallets, and combine them to DAO wallet

  • Element DAO has $175k in Yearn derivatives. The GSC wallet holds $45,000 in Element LP and Balancer LP derivatives. To optimize DAO operations, these assets must be unwound and added to the DAO treasury.

  • The DAO may have non-ELFI assets, but none are DAI, ETH, or USDC. Derivative positions in the GSC and DAO Treasury must be unwound for the DAO to use these assets.

  • Assets transferred between the DAO treasury and the GSC wallet eschew the Element DAO governance method for funding the GSC wallet.

  • By unwinding ‘all’ assets and consolidating them in the DAO treasury, the DAO will be able to follow transparent distribution or treasury policies.

  • For ‘each’ wallet, unwind derivative assets into basic assets. USDC should replace all stablecoins.

    • Swap wBTC to USDC

    • Swap stETH for ETH

    • Send all converted ETH and USDC from the GSC wallet to the DAO treasury after unwind.

• Balancer Proposal; [BIP-78] Delegate Aave Holding to Llama

  • The proposal allows the Balancer community to delegate any AAVE and stkAAVE proposal power and voting rights to Llama.

  • Llama is active in the Balancer and Aave communities, seeking connections to unlock development potential. We noticed that Balancer isn't engaging in Aave governance; thus, we'd want to allow the community to delegate governance power.

  • The AAVE holding has not participated in Aave's governance since the AAVE <> BAL token swap, which is unsatisfactory given the need to increase governance participation inside DeFi.

  • Balancer's AAVE and/or stkAAVE holdings will be used in Aave's governance. Balancer's voting powers will always be used to advocate Balancer's interests in the Aave community. If needed, Llama will consult the veBallers via the Discord Ballers channel.

• Balancer Proposal; [BIP-79] Enable COMP/wstETH Gauge [Ethereum]

• This pool employs the new weighted pool factory to apply protocol fees to yield tokens. This gauge would be a "core pool" under BIP-19, meaning protocol fees would be used to buy votes.

• Balancer has acquired significant COMP/WETH liquidity, which presents an opportunity to bootstrap a yield-bearing version with wstETH. This should result in higher protocol income and allows this liquidity to be self-sustaining via BIP-19 in case a large COMP/WETH voter decides to move on.

• If Balancer can secure our position as the primary liquidity source, it will be profitable in the long run.

• Balancer Proposal; [BIP-80] Enable bb-rf-asUSD/bb-rf-aUSD Gauge [Optimism]

  • This pool uses the new composable stable pool factory, allowing us to apply the protocol fee to yield-bearing tokens.

  • bb-rf-asUSD (Beets Reaper Aave Boosted sUSD) uses a linear pool to deposit sUSD into a Reaper sUSD Vault that only deposits into Aave. bb-rf-aUSD represents boosted USDC, USDT, and DAI.

  • Synthetix moved to Optimism, becoming sUSD the most traded stablecoin outside the regular three. Since Aave lists sUSD as an asset, enhanced pools can deliver the best intrinsic yield on sUSD liquidity in the network.

• Balancer Proposal; [BIP-81] Enable wstETH/bb-rf-aUSD/bb-rf-aWBTC 50/25/25 Gauge [Optimism]

  • This pool uses the new weighted pool factory, which allows us to apply the protocol fee to yield-bearing tokens.

  • bb-rf-aWBTC (Beets Reaper Aave Boosted WBTC) implies we're utilizing a linear pool to deposit WBTC into a Reaper WBTC Vault that exclusively deposits into Aave.

  • bb-rf-aUSD represents boosted USDC, USDT, and DAI. wstETH is wrapped and staked ETH by Lido.

  • We want to be the primary source of wstETH liquidity on Optimism. To increase trading activity, part of this method involves adding wstETH to weighted pools with non-correlated assets.

  • This pool is a variant of the popular "tricrypto" pool on Curve. We will increase yield side costs by giving wstETH a 50% weighting without significantly (if at all) reducing trading efficiency compared to equal weighted.

• Balancer Proposal; [BIP-82] Enable bb-rf-aWETH/wstETH Gauge [Optimism]

  • This pool uses the new composable stable pool factory, allowing us to apply the protocol fee to yield-bearing tokens.

  • bb-rf-aWETH (Beets Reaper Aave Boosted wETH) implies we're utilizing a linear pool to deposit weth into a Reaper WETH Vault that exclusively deposits into Aave.

  • wstETH is liquid-staked ETH. bb-rf-aWETH is Beets Reaper Aave Boosted wETH.

  • This pool is the cornerstone of our plan; we'll roll out more wstETH pools to boost trade volume. This pool showcases increased pools' power.

Infrastructure & Tooling

• Pokt Proposal; Stake Weighted Servicer Rewards - R&D Reimbursements

  • This proposal seeks to reimburse @msa6867 for his work on PIP and PUP 21 for helping create stake-weighted rewards

  • This reimbursement would be 300,000 $POKT which in market value be equivalent to ~$22,800 but has saved the infrastructure costs upwards of hundreds of thousands of dollars

  • The node consolidation objective achieved:

    • Lower costs for node runners.

    • Increased network security with the increase in validator threshold caused by the stepping of PIP22.

    • Reducing node count at a protocol level allows for a faster healthy network with reduced bloating

  • Other objective achieved

    • Prevent starving small node runners of rewards or forcing them off the network

    • Maintain WAGMI/FREN emission objectives

    • Preserve DApp QoS even on chains with less volume

    • Isolate node rewards from the consolidation choice made by other node runners

    • Avoid the draconian alternative of forced consolidation or adding stake

    • Is implementable on a one-to-two-month time scale

  • Dissenting opinion:

    • This payment seems like a lot of money in terms of Pokt compensation, this will need further deliberation.