The Ranch, Issue 4

Updates on our work with Fei, Aave, and PoolTogether. Plus, a new protocol for token distribution and Luca Prosperi's thoughts on DAO treasuries and $RAI.

Daniel Schlabach

Feb 24

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 hope everyone had a good time in Denver last week!

We welcomed Elaine, a new analytics wizard 🧙 to our herd. Elaine has a background in risk and financial modeling and has built dashboards with Flipside Crypto and Dune

Fei

Llama recently released a dashboard for Fei Protocol covering the key metrics on Fei’s stablecoin usage, TRIBE governance token distribution, and Protocol-Controlled Value. Shoutout to ethpanda for the incredible work on the dashboard.

Llama’s Fei dashboard includes current and historical key metrics for the Fei stablecoin. One can easily see the total supply and lending/DEX liquidity for FEI at any point in time.

Our dashboard makes it easy to track the changes in FEI supply over time, as well as the platforms on which FEI is being held.

Aave

Llamas Matt, Jean, and dydy continued their work with Aave. Recently, they proposed adding support for CVX, Convex Finance’s governance token. CVX is not listed on any major lending markets, and Llama’s proposal to list CVX on Aave will give it a meaningful first-mover advantage. In addition to the demand for borrowing and lending CVX, aCVX revenue could be used to direct CRV and CVX incentives to those who stake Curve LP tokens on Convex Finance.

Along with Noah Citron of Index Coop, the team passed a governance proposal to extend Aave V2 liquidity mining incentives for another 90 days (at a 30% reduced rate). The action will result in a 30% reduction in rewards (to 1,078 stkAAVE per day, or approximately $140,000 at a token price of $129). The distribution of stkAAVE is pro-rata based on the dollar deposit value.

Note: TVL per token is as of February 3, 2022

Meanwhile, Elliott shared the January ‘22 Treasury Report to Aave’s governance forum. Some highlights:

Total treasury balance: $337 million
Ethereum V1/V2 revenue -12.1% from December to $2.1 million
Polygon Network revenue +2.1% from December to $1.2 million

We’re currently working to integrate data from Avalanche into our reports. Please reach out to Elliott or anyone on the Llama team with any questions or feedback.

PoolTogether

Llamas BraveNewDeFi and Yuan Han Li continue their work with PoolTogether's treasury working group. As the TWG approaches its first operational quarter, it will need to approach governance for renewal.

PTIP-54 recently passed its governance vote, which will result in funds from PoolTogether V3 migrating to PoolTogether V4 and Notional.

Meanwhile, a new proposal, PTIP-56 has been shared on PoolTogether’s governance forum. The proposal hopes to optimize the user experience for remaining V3 depositors and minimize remaining costs to the protocol. The proposal would eliminate new deposits for USDC, Dai, COMP, GUSD, and UNI pools on Ethereum V3. After PTIP-54, all reserves from V3 will migrate to V4, so PTIP-56 also proposes setting the reserve rate for V3 at 0%.

2. Herd on the Street

Insights and articles from the DAO world, curated by our shepherds.

Introducing Locke Protocol
Locke is a new protocol that enables fair, protocol-enabled token distribution. By using streaming auctions, Locke gives market participants a way to access time-weighted average prices for tokens. Rather than competing in gas wars or timing the market, users can instead have price transparency and receive guaranteed allocations.

DAO Treasury Management: Cut the Chase - Luca Prosperi
Luca covers a host of DAO treasury management topics, starting with a basic question: how can we apply our current mental models of managing treasury assets to crypto projects? He goes on to explore how Fei and Olympus manage their treasuries, then provides a breakdown of Reflexer’s $RAI token, and how it might be useful for prudent treasury management.

3. Opportunities

We're still looking for talented artists and graphic designers 🖌 to help us with graphics for social media and blog posts. If you fit the bill, let us know in this form!

The Ranch by Llama