The Ranch, Issue 9
Our first financial report for Tribe DAO, Aave <> Balancer partnership, & dYdX analytics updates. Plus, insights from around the DAO world.
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 EFRA, a designer, to the community. EFRA worked on the artwork for our last Mirror post (see below!).
This week, we shared our first set of quarterly reports with the Tribe community. In addition to our Q1 2022 Tribe DAO Quarterly Presentation and Q1 2022 Tribe DAO Quarterly Report, Llama has developed two Dune dashboards tracking key FEI metrics (Fei Protocol Metrics, Fei Protocol Lending Markets).
These reports and dashboards are the culmination of months of hard work from Llama team members including Elliott Watts, Matthew Graham, scottincrypto, ETHpanda, and PrairieFi. We’re excited that our work has already enabled others to perform detailed analysis (e.g. Messari’s recent report) on Fei.
We encourage you to look through the full report, but in the meantime, a few highlights:
FEI's circulating supply fluctuated significantly over Q1 and is down 28.2% (to $559.5m in Fully Diluted Supply) since Jan 1.
Tribe DAO spent >$36.5m on incentives for providing liquidity to various FEI pools in Q1.
FEI held its peg, ranging from $0.9965 to $1.0005. FIP-73 reduced various PCV LPs, leading to the peg tightening and FEI trading above $1 for the first time in Q1 2022.
In Q1, Tribe DAO generated $5.0m in PCV income and $8.7m in total income. Meanwhile, the DAO had $49.4m in expenses, resulting in a net loss of $40m. Excluding Liquidity Mining rewards & the REPT-b repayment, net income totaled $8.2m.
As part of our ongoing work with Aave, we’ve proposed a partnership between the Aave and Balancer communities.
In the last several weeks, we've split the proposal into two parts. In Part 1, we proposed that Aave and Balancer perform a token swap, with Aave receiving 200,000 BAL and Balancer receiving an equivalent value of AAVE tokens (using the 90 day moving average price). The Aave community passed a Snapshot supporting this proposal on April 13. We plan to deposit BAL tokens (along with required ETH) into the Balancer 80/20 BAL/ETH pool. The resulting veBAL will be used to direct BAL rewards to pools which support aTokens, increasing TVL for Aave.
This week, we launched a Snapshot for Part 2 of our proposal. Here, we propose that Aave acquire an additional 100,000 BAL via a Bonding Curve contract. These BAL tokens will be held in the Reserve Factor until further details regarding Aura emerge, upon which the Aave community can determine whether to deploy the BAL to receive veBAL or auraBAL. Voting is open until May 11th; we encourage Aave community members to reach out to us with any questions and to participate in the Snapshot vote.
We were recently awarded a grant to build an analytics dashboard for dYdX. As part of the dashboard, we’ll provide insights into drivers of trading behavior and user activity on the platform.
Last week, we continued downloading and processing data to prepare it for visualization on the dashboard. This week, we’ll continue working on different visualizations for the dashboard.
2. Herd on the Street
Insights and articles from the DAO world, curated by our herd.
Private Rounds or Public Auctions? Fundraising in the Age of the DAO - Jordan Stastny & Sam Bronstein
Jordan and Sam break down the pros and cons of fundraising via private rounds and public auctions and explore 3 specific types of public auctions that DAOs can use to diversify their treasuries.
Liquidity is bandwidth - Liquidity Wizard, founder of Tokemak
Liquidity Wizard explores how liquidity is to web3 as bandwidth is to the Internet. In a web3-based economy, all users need to interact with liquidity in order to interact with tokens.
Are you interested in researching and designing novel, crypto-native economic mechanisms? We’d love to chat - let us know in this form!