🍱 Answer to SushiSwap’s Troubles May Be Transforming into On-Chain DAO
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BUSTED SushiSwap has been whipsawed by busted deals and the departures of key leaders. And yet the decentralized exchange remains one of DeFi’s second-largest DEX by trading volume and now, a coalition of of other projects is rallying to get behind it.
PROPOSAL A Snapshot proposal, based on a post from Sushi’s forums, is imminent, according to its author, Justin Bram of Ondo Finance, a protocol that bills itself as a decentralized investment bank. Ondo’s co-founder Nathan Allman authored the proposed changes. The proposal calls for another group of projects putting their collective weight behind Sushi to turn the project into a multi-chain DeFi force.
TRIGGER The proposal, called Poke Bowl, would formalize Sushi as an on-chain DAO, which means voting will trigger smart contracts to execute and establish a legal entity for the project. The move would take assets like the protocol’s Twitter and Discord accounts off-chain. Both entities would be governed by SUSHI holders, according to the forum post, which preceded the Snapshot proposal.
REVENUES The community for Anchor, a Terra-based stablecoin money market protocol, is discussing the project’s future as revenues continue to fall short of the roughly 20% yields it promises depositors.
ITERATION The fix? Calling on the freshly-launched Terra Foundation Guard to top-up Anchor’s Yield Reserve with $450M while developers scramble to cook up Anchor’s new and improved v2 iteration. That’s according to ‘N3m0’, an Anchor community member and researcher at crypto VC firm Hashed.
MOBILIZED Anchor offers depositors a fixed annual return of roughly 20% by redistributing fees from borrowers and rewards from other assets staked in the protocol. However, when the protocol revenues are lower than 20%, funds are mobilized from its Anchor Yield Reserve to pay out investors.
DeFi Social Media
COMPOSABLE The announcement says that “the purpose of the Lens Protocol is to empower creators to own the links between themselves and their community, forming a fully composable, decentralized social graph.”
PROTOCOL The first thing everyone wants to know about any new protocol is: when token? Well, the new Lens Protocol from the Aave team mentions a “fair launch” in its announcement post, so there must be something on the way…
PERMISSIONLESS So, if that’s top of mind, join their Discord and get on the #FairLaunch channel, but it’s also worth getting into what the protocol actually is: a permissionless social graph that will permit any developer to build on it. What’s more, no one can kick anyone off it.
HYPED Getting on the whitelist for a hyped NFT drop can mean tens of thousands of dollars in profits. But with new projects launching daily and whitelist requirements getting more arduous, some NFT collectors and flippers are looking to outsource the task.
SEARCH A search for “NFT whitelist” on popular freelancing website UpWork shows over 1,000 job postings offering $3-$5 an hour. Here’s an example.
MINT Whitelists are lists of blockchain addresses that are given early access to an NFT mint, sometimes at discounted prices. Originally intended as a way to reward early community members and avoid gas wars, the influx of new entrants into the NFT space has led to fierce competition for these coveted slots.
SURGE The DeFi markets have surged to post an emphatic recovery from January’s lows despite lingering concerns about heavy-handed regulation. The combined capitalization of DeFi tokens sits at $121B, having bounced 16.7% since posing a local low of $103.7B on Feb. 3 according to CoinGecko.
TERRA Just two of the top 100 non-stablecoin DeFi assets have shed value since the beginning of January, while one-third of tokens rallied by more than 30%. Terra (LUNA) jumped 7% in the last seven days and is the sector’s top token with a market cap of $23.5B. It represents almost a fifth of the entire DeFi capitalization.
Idex (IDEX) + 70.2%
bZx Protocol (BZRX) + 64.2%
Benqi (QI) +52.8%
STP Network (STPT) + 39.7%
Just (JST) + 38.6%
REVENUE Maybe it’s the decentralized architecture? Or maybe it’s liquidity mining Whatever the cause, LooksRare, the newly launched NFT marketplace, pulled ahead of the centralized market leader, OpenSea, in terms of protocol revenue almost immediately, according to data site TokenTerminal.
AIRDROP In the last 30 days, LooksRare produced $307M in protocol revenue vs. $110M at OpenSea. LooksRare launched with an airdrop of its LOOKS token to past OpenSea users, and it has been growth hacking marketshare ever since by giving more LOOKS to anyone who makes a trade on the platform (also known as liquidity mining). Though much of that volume has come from wash trading done to boost LOOKS rewards.
REWARDS LOOKS currently trades at $3.44. Its high point so far was $7.07 on Jan. 20, according to CoinMarketCap. For context, daily rewards in LOOKS are worth roughly as much as trading revenue.
Prof. Andrew Hall writes that DAOs can solve thorny governance problems by looking to antecedents in the political world.
GOVERNED DAOs can reshape society by bringing democratic control to important economic and social activities previously governed through more hierarchical means. But as many people have pointed out, DAOs have not yet achieved their goal of true decentralization.
MECHANISMS Participation in DAO governance is too low, and tokenholders often lack the expertise and time to make informed decisions. Many DAO decisions are taken by a small number of actors, and we lack formal mechanisms to ensure these decisions are aligned with the interests of the tokenholders at large.
MILLENNIA As it turns out, these challenges are identical to the governance challenges faced by democratic societies in the physical world. Lessons we have learned from two millennia studying and designing democratic governments provide useful insights into improving DAO governance.
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Ethereum scaling project Polygon has raised $450 million in a private token sale.
Crypto asset manager Valkyrie will have an exchange-traded fund (ETF) with exposure to Bitcoin mining firms available for trading on the Nasdaq Stock Market starting Tuesday.
Crypto has grown a lot in 2021!
“What problem are you solving by building this Metaverse for cats?” “Well, today cats don’t have a Metaverse to hang out in. With Cataverse, they will!”
Poloniex Exchange @PoloniexAnnouncement 📢 🆕 Listing: @FantomFDN $FTM wallets are now open and full trading for FTM/USDT, FTM/USDC and FTM/BTC will be enabled at 06:00 AM UTC today. Deposit: https://t.co/T8V6CQvXtg Details: https://t.co/5hs1x3IfFj https://t.co/h7q9RH8pdO
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🧑💻 ✍️ Stories in The Defiant are written by Brady Dale, Owen Fernau, Samuel Haig, DeFiDad, and yyctrader, and edited by Edward Robinson, yyctrader, and Camila Russo. Videos are produced by Robin Schmidt, Alp Gasimov and Daniel Flynn. Podcast is led by Camila, edited by Alp.
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