This Week’s Forum Threads (July 19th)

Honourable Mention:

  • Aave debates offboarding TUSD from all of its platforms and receives a proposal to help Harmony One hack victims.
  • Truefi received a proposal to launch a T-Bill fund on their platform from Adap3r Digital.
  • Synapse debates selling their ARB for ETH.

Important Forum Threads:

DAI’s Enhanced Saving Rate

Rune has proposed deploying a one-time increase to the DSR (DAI saving rate). The DSR has successfully stabilized the supply of DAI, as the rate is high compared to other stablecoin offerings in DeFi. Unfortunately, the DSR has not caused any growth in the supply of DAI. Hence, Rune recommends creating an Enhanced Dai Saving Rate to increase rates to spur the growth of DAI. Unlike the DSR, this would be a one-time increase in the savings rate, which would decrease based on the DSR demand and utilization rate until it disappears.

This thread is important for two reasons: The first is that DAI holders using the DSR will get a bump in their rate. The second is that MakerDAO’s endgame plan requires DAI demand to grow. If there is little demand, Endgame as a strategy is in jeopardy, and MakerDAO may need to reevaluate its plans. For these two reasons, I recommend readers follow this thread.

SAFE Alignment Program

Safe has received a proposal to instantiate a novel program where Safe can accrue some value from the projects built on its platform. As users may recall, Safe is the DAO that governs the popular multisig wallet solution called Safe (prev. Gnosis Multisig) with their token SAFE. Safe is by far the most popular multisig solution for EVM chains and is used by protocols, exchanges, DAOs, and users with high requirements for security. As of this post, Safe protects 1.93M ETH on Mainnet alone, and there are thousands of newly created Safes each week. Safe is in a league of its own when it comes to multisig. As a refresher, I also recommend a report I wrote on Safe a while back when the token launched.

According to the proposal, 183 projects are built on top of Safe’s contracts, making the Safe ecosystem reasonably extensive. However, Safe has little way to capture value from these projects. However, the Value Align Program proposed in this forum thread could change that. At the proposal’s core is the idea that projects use Safe exchange revenue or their token with Safe in exchange for SAFE tokens and support from SafeDAO. Safe would then have financial upside and a stake in the projects building on top of it, and projects using Safe would have some ownership in a critical protocol. Safe is a critical project for the entire EVM ecosystem, one with a strong moat and one lacking some way to monetize its product. This proposal could change their challenges around monetization and be a strong catalyst for the token if this program takes off.

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