- APY.Finance 5 of 16 votes are currently live which will decide where the initial deposited funds of their protocol will be deployed to earn yield. These 5 pools are Curve-Aave, Curve-sAave, Curve-Compound, Curve-USDT and Curve-sUSD.
- Index COOP has started the initial vote to onboard a new index to their protocol. This new index, called JPG, will track a basket of market-cap weighted blue-chip NFTs, including Cryptopunks, Autoglyphs, BAYC, Squiggles and Cool Cats. If passed, individuals interested in the broad NFT market will be able to gain exposure through a single token. Index COOP will leverage NFTx to create their index.
- Ribbon Finance has tabled a long-looked-forward-to proposal to make their tokens transferable. Although RBN tokens were originally issued through airdrop and liquidity mining in May of 2021, the team decided to make the tokens non-transferable to ward off mercenary capital. If passed, this proposal would be the first step in creating a liquid market for trading RBN tokens.
- Shapeshift is looking to build up its own protocol controlled liquidity by selling discounted FOX tokens with a vest in exchange for FOX/ETH LP tokens. Uniquely, Shapeshift has decided to bypass Olympus Pro’s product offering and instead would conduct the program on their own. If successfully implemented, the protocol will start accumulating liquidity and also save the 3.3% fee charged by Olympus Pro.
- Tokemak is spinning up their Reactors and holding votes to decide on which of the 42 candidate protocols will receive the first Generalized Tokemak Liquidity. The competition has been surprisingly fierce with protocols gaining and losing the lead throughout the weekend. Only the top five protocols will receive Reactors. OlympusDAO, Alchemix, TracerDAO, Sushi and Frax Finance are currently in the lead.
- Frax Finance [FIP-21b] voters have struck down a proposal to approve the FRAX/DAI pool as their DAOs first Gelato.Network managed Uniswap v3 position. Deciding which pools to manage under Gelato’s G-UNI standard is the first step in completing the Frax gauges laid out in the first part of FIP-21a.
- Frax Finance [FIP-22] has also recently voted to implement a bond program under the aegis of Olympus Pro. However, unlike Shapeshift, Frax Finance will pay need to pay a 3.3% fee to OlympusDAO for their bond product. I am interested to see which protocol conducts a more successful bond issuance, Frax with OlympusDAO or Shapeshift on their own. We should note these are not bonds in the traditional sense, but rather a forward contract between the protocol and users who participate.
- Gro Protocol, a newer yield farming dapp, has recently voted to shift GRO DAO Token liquidity from their LBP to other AMMs. The Gro core team will deploy liquidity to DeFi AMMs concurrently with a new reward-vested liquidity mining program. There has been no decision on which AMMs they will choose, but Sushiswap, Uniswap and Balancer were all presented as possibilities in the proposal.
- The Rarible community has decided to fund a new NFT Crowd Investing and Management Protocol, called Crowd. This NFT management protocol will fractionalize, sell, lend, exhibit, and distribute income to NFT holders. Rarible DAO has purchased 5% of Crowd’s tokens for a $50k seed investment. Rarible will distribute funds when Crowd developers meet predetermined milestones.
- Synthetix is incorporating an additional dynamic fee on top of the protocol’s base fee. As per the proposal, this dynamic fee will increase during times of high volatility to disincentivize front running Synthetix’s oracle feed. As prices stabilize, this fee will decay to 0. Additionally, the base fee will be reduced as it is no longer needed to punish front runners during market turbulence. According to the proposal, the reduction in the base fee and addition of the dynamic fee should bring the cost of trading on Synthetix down drastically for non-front-runners.
*Synthetix is not pictured as voting is done by the elected representatives of the Spartan Council and is a different voting model.
In The Forums
- Synopsis: Societe-Generale Forge, a regulated subsidiary of Societe-Generale, has applied to onboard 40m EUR of OFH tokens to MakerDAO as collateral. OFH tokens are mortgage-backed covered bonds issued by Societe-Generale and rated AAA by Moody’s and Fitch. OFH tokens use the CAST standard, which is an open-sourced standard designed in 2019 to experiment with the issuance of security tokens on public blockchains. Societe-Generale themselves are licensed by the Autorité de Contrôle Prudentiel (French bank regulator). The OFH collateral will be used to mint up to 20m DAI.
- Pro Argument: This is an incredible opportunity to further bridge TradFi and DeFi. If this pilot project is successful, it could lay the groundwork for MakerDAO to access similar types of collateral to back DAI. The AAA rated bonds are also relatively low-risk, which is important given the would-be use as stablecoin collateral.
- Counter Argument: Like MakerDAO’s discussions regarding legal representation, which I covered in DAO Digest #3, this proposal creates some interesting legal and structural challenges. Societe-Generale recognizes that they cannot legally interact with a DAO. Thus, MakerDAO would need to appoint a representative or legal entity to act in their stead, who could then be at risk themselves. The community was also not thrilled that the bonds themselves yield ~0%, so the monetary benefit to MakerDAO is questionable. However, as SebVentures points out, the greater benefit to MakerDAO is in creating a process to onboard bonds to DeFi.
- Our Opinion: While the collateral is low yielding and requires trust, as a long-term strategic decision this would give Maker a key foot in the door for integrating more closely with TradFi. How much the community values that latter point will be the deciding factor on whether or not this likely passes.