The Ranch, Issue 14
Updates on our work with Gitcoin, Radicle, and Aave. Plus, an idea for adding rarity to Nouns & an exploration of protocol owned liquidity.
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 7 new llamas to the herd! Within the last two weeks, 0xDoing, 0xBill, Luca Prosperi, Sov, vapeape, bobbay, and Andrea have joined the community to help grow the DAO economy.
Gitcoin / Radicle Public Goods Alliance
Our Snapshot on Radicle’s space is now live for voting. and will be open until Monday, July 18. The proposal will see Radicle receive 500,000 GTC in exchange for an equivalent dollar amount of RAD, making both DAOs top 10 delegates in one another’s governance. Soon, the vote will move to the on-chain portion of each DAO’s governance process.
Llama’s smart contracts have gone through internal review and are now being reviewed by developers in the Gitcoin and Radicle communities. Meanwhile, Llama has worked to assemble the metagovernance committees and spin up the multisigs needed for the committees to vote on governance proposals.
We published our on-chain proposal for an Aave <> Balancer token swap, in which Aave acquire 200,000 BAL in exchange for 16,907 AAVE. The exchange rate was determined using a 90 day moving average (1 AAVE = 11.83 BAL). Once the proposal is executed, Aave’s mainnet Reserve Factor will receive the BAL tokens.
This proposal is only step 1 of Aave’s strategic investment in Balancer. Aave will be able to pair BAL (as well as aBAL, redeemed for BAL) with ETH and deposit the assets into the Balancer V2 BAL:ETH (80:20) pool. This LP position will then be locked for 1 year and the veBAL used to vote BAL rewards to pools that support aTokens, in turn driving TVL to Aave or AAVE liquidity pools.
The code for our proposal has been verified by BGD Labs and can be viewed on Github.
The proposal is live, so if you're an Aave holder, please vote! We've received just over 270k AAVE votes for the proposal and are 50k AAVE away from quorum.
Last week, Llama shared an analysis of Gitcoin’s Treasury runway to the forum. In the analysis, we look at several scenarios using different assumptions for GTC price and stablecoins in the treasury. Currently, Gitcoin is undergoing a smaller, $3m treasury diversification to fund short term needs of workstreams, as well as a larger diversification of up to $15m. Gitcoin’s Season 14 budget indicated a monthly spend of around $1.2m.
We encourage you to read the full report, but a few quick takeaways under different GTC prices & diversification levels:
No Treasury Diversification
9.3 years of runway if token price remains flat
4.7 years of runway if token price falls 50%
0.9 years of runway if token price falls 90%
$3m Treasury Diversification
9.3 years of runway if token price remains flat
4.8 years of runway if token price falls 50%
1.1 years of runway if token price falls 90%
$15m Treasury Diversification
8.9 years of runway if token price remains flat
5.0 years of runway if token price falls 50%
1.8 years of runway if token price falls 90%
To the extent that it’s helpful to members of Gitcoin DAO, Llama will work to include these types of analyses in our period financial reporting.
Meanwhile, we shared Gitcoin’s June 2022 financials. Our monthly reports are intended to provide the community members with a detailed understanding of treasury health, monthly spending, and emissions of GTC.
Gitcoin’s treasury balance has decreased slightly since May as a result of GTC price depreciation. The full report can be accessed here.
2. Herd on the Street
Insights and articles from the DAO world, curated by our herd.
Extending Nouns Through Invisible Traits - Austin Green
What would an invisible Noun look like, and how could Nouns DAO use such a trait to introduce rarity to the Nouns ecosystem?
The Search for Sustainable Liquidity - Daniel Schlabach
Is Protocol Owned Liquidity dead? In this piece for Tally, I examine the different options that DAOs can use to offer liquidity for their native token, including Llama’s Active Liquidity Management solution
If you’re a solidity engineer looking to work on on-chain governance proposals, apply to join our community! You will get to work with a talented group of engineers and deploy smart contracts for top protocols like Aave, Balancer, Gitcoin, Uniswap, and Radicle, among others.
Stay Up to Date on Llama 🦙
Follow us on Twitter, check out our website, and read our writing on Mirror.
Thanks for reading The Ranch by Llama!
Umm ... wow ... seeing my name mentioned totally made my day ngl. Very excited to be here and see how I can help.