The Ranch, Issue 12
A Public Goods Alliance between Gitcoin & Radicle. Plus, updates on our work with Aave and PoolTogether.
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 🦙
Gitcoin / Radicle Public Goods Alliance
As web3-native DAOs, Gitcoin and Radicle share similar missions of growing the public goods ecosystem. The Gitcoin and Radicle communities have rallied around this public goods mission and informally worked together over the last few years, co-hosting events and integrating Radicle in Kernel.
A formal alliance will allow Gitcoin and Radicle to:
Collaborate on a shared vision through governance in each other’s communities
Develop synergistic features and products
Set precedent for future community alliances
Diversify each DAO’s governance base
The Public Goods Alliance will make each DAO a top 10 delegate in the other’s governance. We’ve proposed that each community form a metagovernance committee which will be responsible for keeping track of all partner DAO governance proposals and voting on behalf of their own community.
A Snapshot for the proposal is live on Gitcoin’s Snapshot page. We encourage the Gitcoin community to vote here.
Llama’s April 2022 financials for Aave are live on Aave’s forum. April was a challenging month given poor market conditions across DeFi. Aave also saw a decline in its Polygon market due to MATIC incentives being turned off in early March. Our financials detail several key metrics for Aave as of April 30, 2022:
Total treasury: $323.5m
YTD net profit for Ethereum V1 & V2: $3.2m
YTD net profit for Polygon: $1.9m
Meanwhile, we put forward and executed a proposal to add CVX, the governance token of Convex Finance, to the Aave protocol. The listing will give Aave a first-mover advantage as CVX is not listed on any other major lending protocols. Further, Llama believes that CVX has the potential to be a significant revenue generator for Aave, based on demand for CRV.
Finally, we executed our proposal to consolidate Aave’s Reserve Factors and re-enable borrowing of Index Coop’s DPI. Consolidating Aave’s Reserve Factors will allow the DAO to more easily deploy assets to earn yield and accrue governance power.
PTIP-74, a proposal to renew PoolTogether’s Treasury Working Group (TWG) for a third quarter, is now live. Llama Brave New DeFi will lead the working group as chair and will be joined by fellow llama Yuan Han Li.
TWG outlined several core responsibilities in their forum post, including:
Quarterly review of DAO inflows/outflows
Analyze protocol-owned liquidity (POL) options, performance
Regular reviews of /recommendations for Prize tiering, simulation
Asset management analysis, options
Identifying potential yield sources, assessing risk
For more information on PoolTogether’s TWG, see their Notion page.
2. Herd on the Street
Insights and articles from the DAO world, curated by our herd.
Building an Economy Within a DAO - DAOn the Rabbit Hole
Shreyas joined the Rabbit Hole podcast to discuss his ideas on building an internal economy within a DAO. In the podcast, he touches on economic infrastructure for DAOs, experimenting with token distribution, and how DAOs like Friends With Benefits build internal economies.
Announcing Interest Protocol - GFX Labs
GFX Labs announced their fractional reserve banking protocol, Interest Protocol, earlier this month. Interest Protocol claims to generate more loans with less liquidity risk than popular lending protocols today as it uses fractional reserve banking while remaining over-collateralized.
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