Welcome to The Ranch, Llamaâs Substack newsletter.Â
In this publication, weâll share quick and easy to digest insights on:Â
Updates from Llama đŠ
Herd on the Street - interesting insights on DAOs
Opportunities - ways you can get involved with Llama
1. Updates from Llama đŠ
We welcomed one new llama to the pack - welcome to Jean Brasse! Jean has done great work with Jarvis, Mimo, and Angle, creating various Euro pools on Curve Polygon.
In case you missed it, check out our first Mirror post on Economic Infrastructure for DAOs.
Aave
Llama proposed deploying $26.7 million of Aave's Ethereum Reserve Factor with the intention of retaining TVL, earning additional yield, and accruing metagovernance voting power in other DeFi protocols. Weâve proposed the following allocations across Balancer, Curve, and Convex:
Aave stands to earn yield in the form of:
Swap fees
aToken yield from Aave v2
Governance token incentives (BAL, CRV, CVX, stkAAVE and LDO)
Importantly, Llamaâs proposal will also allow Aave to accumulate metagovernance voting power along with yield generation.
Gitcoin
Llama submitted a proposal to diversify Gitcoinâs treasury on Gitcoinâs forum. Some quick takeaways from the post:
Lead an open, transparent, and community-led process to diversify Gitcoinâs treasury
Exchange $15 million of GTC tokens for stablecoins, giving Gitcoin 1 yearsâ worth of operating expenses in stablesÂ
Rationale:Â
De-risk Gitcoinâs treasury & allow Gitcoin to operate from a position of strength
Allow contributors to receive payment in stables if they choose
Ensure GTC tokens are held by long-term partners
A 5-person working group from the DAO will lead the treasury diversification, reviewing strategic partners based on criteria selected by the DAO. Partners will be asked to speak with the community on a public platform to elaborate on their interest, value add, vision, and values.
With a high degree of community involvement, we hope Gitcoinâs process can serve as a template that other communities can use in their treasury diversifications.
PoolTogether
Llama has joined PoolTogetherâs Treasury Working Group. As part of Llamaâs work with PoolTogether, llamas BraveNewDeFi and Yuan Han Li worked to create a comprehensive analysis on the Fei Protocol <> Ondo Finance Liquidity as a Service Program.
We found that using LaaS would:Â
Create deeper liquidity for the POOL token on Uniswap v2
Allow PoolTogether to transition away from POOL drip for LPsÂ
Allow PoolTogether to earn TRIBE incentives for their first 3 months of participation in the program
If PoolTogether uses Fei and Ondoâs LaaS program, it would need to face over $200,000 (>14%) in Impermanent Loss to equal the current cost of providing liquidity!
2. Herd on the Street
Insights and articles from the DAO world, curated by our shepherds.
Tokemak, the Kingmaker of Web3 - Sterling Archer
Tokemak aims to become a liquidity layer for web3, unifying and routing liquidity between different DEXs and chains. Using Tokemak, stablecoins looking to increase liquidity and adoption can now avoid expensive farming costs by owning and staking TOKE.Â
Adding a âSeatbeltâ to secure governance proposals - Uniswap
We need better tools for DAO governance. Uniswapâs new tool, Seatbelt, aims to improve the governance process by generating reports on proposals prior to votes, giving the community crucial information assessing governance proposals. Today, the Seatbelt test suite checks Ethereum for new proposals every hour and publishes its checks on Github.
3. Opportunities
Llama is looking for Dune wizards đ§đ»ââïž to join our herd! If youâre interested, please fill out this form and weâll get back to you!
Stay Up to Date on Llama đŠ
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