It was a busy week in the governance forums, despite the negative regulatory news. Here are the threads I recommend you follow.
It’s a GHO!
After much debate, discussion, and testing, Aave is finally ready to launch its stablecoin GHO. Aave Companies, an Aave service group, has proposed that Aave launch GHO on Aave v3 with two initial facilitators. The first facilitator will be the v3 Ethereum Pool. Users can borrow GHO against their collateral on the Ethereum mainnet in the Pool Facilitator – much like other battle-tested CDP models. The second facilitator, meanwhile, is the FlashMinter. This facilitator allows users to borrow and repay GHO in the same transaction. The proposal hopes that the Flashminter Facilitator will be a powerful tool in helping GHO maintain its peg.
One of the largest DAOs launching a new product is something people should pay attention to. Doubly here. GHO could bring much-needed liquidity to the DeFi space, and as Aave DAO will retain 100% of the revenue from GHO, it could act as a significant revenue stream for them. However, Marc Zeller, an Aave community leader, has already proposed allocating some GHO revenue as Safety Incentives – which could give Aave stakers rewards in AAVE and GHO tokens.
Osmosis Takers
Proposed by White Marlin Staking and from discussions with the Osmosis Dev team, this proposal outlines the creation of a .15% taker fee for all swaps conducted on Osmosis. The taker fee would be on the input value of trades in addition to the LP swap fees charged by the pools. For example, if the pool charges a .2% swap fee on trades, adding the taker fee would bring the total fee to .35%. Taker fees are fees charged to whoever is swapping as opposed to maker fees which come from the LP. According to the proposal, Osmosis will distribute proceeds from the fees – presumably to token holders.
The addition of new fees to protocols can be powerful revenue-generating catalysts. Osmosis, in particular, has notable volume, through which they accrue significant fees. YTD Osmosis has accrued $2.48M in fees. A .15% taker fee on top of the existing fees would’ve earned the protocol an additional $1.8M YTD. Due to the potential for new fees driving additional revenue to the protocol, I recommend following how this thread plays out.
Pocket Network Double Whammy.
This week is a double whammy for Pocket Network as there are two proposals in their forum that I recommend people be aware of. The first and most recent is the release of RC – 0.10.0. RC-0.10.0 is a technical release that changes the consensus rules of Pocket Network by doubling the block size, implementing flexible session block height, deploying Tendermint layer DDoS protections, patching caching issues, and giving address owners additional controls for changing output addresses. Technical proposals go unnoticed by the larger market as they are often incremental and sometimes limited in their impact. But, I recommend following technical releases that change a network like this one in the off chance it causes issues.
Secondly, readers should follow Pocket Network’s Accelerated Road to Revenue proposal. In April, Pocket Network adopted the Road to Revenue plan. The DAO began charging gateway operators a small fee in POKT as part of the Road to Revenue plan. The DAO then burned any collected POKT. The accelerated plan seeks to make POKT deflationary by reducing emissions from 610K POKT per day to 220K POKT per day. Reducing the emissions by this level could drastically change how the token performs, so I recommend watching if the Pocket Network adopts this accelerated plan.