The Ranch, Issue 10
The Ranch, Issue 10
Updates on our on-chain Aave vote, FWB liquidity improvement, and new Harvest dashboard. Plus, Nascent's Simple Security Toolkit + uses for soulbound tokens.
Welcome to The Ranch, Llama’s Substack newsletter.
In this publication, we’ll share quick and easy to digest insights on:
Updates from Llama 🦙
Herd on the Street - interesting insights on DAOs
Opportunities - ways you can get involved with Llama
1. Updates from Llama 🦙
We’re excited to welcome 2 new llamas to the herd.
0x_d24 has experience in TradFi doing M&A work and will be helping out across a range of Llama initiatives.
Kathleen Olstedt is a DAO enthusiast and has worked in D2D growth, biz dev, and the architecture of DAOs.
Aave
After our Snapshot proposal to consolidate Aave’s V1 and V2 Reserve Factors passed with 96% approval, Llama’s engineering team worked to implement the proposal in an on-chain vote, which is live now. Bored Ghosts Development has reviewed our code and verified our governance proposal:
This on-chain proposal includes two AIPs. First, the proposal will consolidate the existing V1 Reserve Factor from Aave’s V1 protocol as well as route any future revenue directly to the V2 Reserve Factor. Considering that Aave’s V1 has just over $100m in TVL today, revenues from the legacy protocol are expected to decrease over time. Consolidating the RFs will allow the community to more efficiently deploy the RF to earn yield and accrue governance power.
Second, the AIP will re-enable the borrowing of DPI on Aave V2. DPI was previously disabled via AIP-44 along with xSushi, though DPI has since been found to be safe.
We encourage all Aave community members to vote in the proposal; for any questions, please reach out to us on Twitter or on Aave’s governance forum.
Harvest Finance
In partnership with Harvest Finance, we unveiled our Harvest Finance Key Metrics Dune Dashboard this week. The dashboard covers important metrics across Harvest’s FARM token emissions, Do Hard Work transactions, and the protocol’s strategic reserve.
On-chain data is extremely valuable, but it’s critical that the data be presented in an accessible manner. Our analytics work will empower Harvest community members to make informed decisions on the future governance of the protocol. On the back of our Dune dashboard, Llama is preparing a Q1 financial report for Harvest which will be released later this month.
Friends with Benefits
Last week, we proposed a Liquidity Improvement Plan for the FWB token. Our Snapshot for the proposal passed earlier today.
To date, most of the liquidity for FWB has been provided by token holders with an eagerness to create a strong foundation for the community. Recently, liquidity has declined, resulting in significant slippage for swaps of material size (>100 FWB).
Llama’s proposal will take advantage of Uniswap V3’s increased capital efficiency to deepen the liquidity of the token. Uniswap V3’s upgrades bring improvements to the user experience for those swapping tokens, but it can be difficult for DAOs to actively manage their liquidity positions. To address the complexities around managing the FWB liquidity position, we’ve partnered with Gamma Strategies, an Active Liquidity Management program.
Llama has developed an escrow contract which will hold 50 ETH and the equivalent value of FWB tokens from the community treasury. Importantly, the contract only allows Friends with Benefits to withdraw from the account; Llama may direct contract funds to ALM providers like Gamma, but cannot withdraw any of the funds itself.
2. Herd on the Street
Insights and articles from the DAO world, curated by our herd.
Simple Security Toolkit - Nascent
Nascent has compiled a repo of practical, security-focused guides and checklists for smart contract development. The repo covers everything from the development process to security incident planning.
Decentralized Society: Finding Web3’s Soul - E. Glen Weyl, Puja Ohlhaver, Vitalik Buterin
So far, web3 has focused on transferring value & financial assets. In this paper, the three authors explore how web3 can encode networks of trust and reputation using technology like non-transferrable “soulbound” tokens, enabling important financial actions like undercollateralized lending.
3. Opportunities
Are you interested in researching and designing novel, crypto-native economic mechanisms? We’d love to chat - let us know in this form!
Stay Up to Date on Llama 🦙
Follow us on Twitter, check out our website, and read our writing on Mirror.