The Ranch, Issue 28
Updates on our with with Aave. Plus, a framework for progressive decentralization and the launch of Aave V3!
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 published our Q4 2022 financial report to Aave’s forum. Q4 saw significant developments within the Aave ecosystem, including new long term contracts between the DAO and service providers like Llama and Chaos Labs and the renewal of Gauntlet’s contract.
In line with the tougher macro environment, revenue dropped 35% quarter over quarter to $3.7m. Gross profit, while still negative, increased quarter over quarter as Q3 saw a significant retroactive payment to Aave Companies.
In the last two weeks, we proposed and executed 3 on-chain proposals:
AIP-144: Ethereum v2 Collector Contract Consolidation - This proposal consolidated the long-tail assets in Aave V2’s Collector Contracts into USDC, enabling the DAO to deploy its treasury productively.
AIP-145: Renew Aave Grants DAO - Llama wrote the payload for a proposal to renew Aave Grants DAO. AGD will receive an approval for $3.25m of funds from the Ecosystem Reserve and Collector Contract.
AIP-146: Repay Excess CRV Debt on Ethereum V2 - This proposal will repay excess debt from Aave V2 Ethereum’s CRV market by acquiring CRV with aUSDC from the Collector Contract.
We discovered an issue with the AIP-144 Swap Contract with respect to the aUST asset after the proposal was executed. There were ~$20k worth of funds at risk, which we whitehat-rescued. We also confirmed that this issue affected only aUST in the proposal scope and no other assets. Due to the rescue, Aave Protocol and Aave DAO will not bear any loss from this issue. We share more about this proposal in our disclosure on the Aave governance forum.
2. Herd on the Street
Progressive decentralization: a high-level framework - Jad Esber & Scott Duke Kominers
Jad Esber & Scott Kominers outline a framework for how to progressively decentralize and introduce the concept of “minimum decentralizable units” (MDUs).
The Launch of Aave V3 on Ethereuem 👻
A proposal to active Aave V3 on Ethereum passed its on-chain vote earlier this week. We look forward to working with the protocol’s new features to increase usage and TVL. Read more about Aave V3’s new features here.
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Stay Up to Date on Llama 🦙
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