Proposals

TrueFi (TRU)

Proposal: Create incentive program worth up to 25mm TRU to attract new PMs to TrueFi

Author: Ryan Rodenbaugh

Summary: This proposal request to establish an incentive program worth up to 25M TRU to attract new Portfolio Managers to TrueFi. Portfolio managers can earn up to 2.5M TRU based on TVL KPIs.

Key Points:

• Portfolio Managers on TrueFi can launch and run their own funds on TrueFi, using TrueFi’s credit infrastructure.
• TrueFi’s credit infrastructure enables Portfolio managers to launch Credit Vaults, which are smart contracts that coordinate the lending, borrowing, and management of on-chain credit.

• Currently, all TRU emissions to existing lenders, team, and early backers have been distributed. However, 248M TRU (17% of the total supply) remains available for future emissions and other uses.
• Therefore, in order to attract new Portfolio Managers (PMs) and encourage total value locked on the platform. This proposal requests to launch an incentive program, allowing Portfolio Managers to earn TRU based on their credit vault’s total value locked.
• Specifically, PMs can earn up to 2.5M TRU tokens in 250k TRU increments by reaching TVL-based milestones between $50M and $500M TVL.
• Notably, a PM can launch multiple vaults and can earn the same amount of TRU rewards as launching a single vault with higher TVL.

Our Take: With the continued demand for on-chain RWA instruments, this is a great program to potentially improve TrueFi’s RWA market share.

Frax Finance (FXS)

Proposal: Onboard FinresPBC as FRAX v3’s Offchain RWA Partner

Author: Sam Kazemian

Summary: Frax’s founder Sam Kazemian is proposing to establish a partnership with FinresPBC — an entity set up in Delaware (U.S.A) to serve the Frax Protocol with access to Real World Assets (RWAs).

Key Points:

• As part of Frax’s FRAX V3 RWA strategy, the protocol requires access to safe cash-equivalent assets and or cash deposits, such as reverse repo contracts and treasury bills.
• Earlier this year, the Frax team established FinresPBC a public benefit C corporation in Delaware to help accomplish this mission.

• Specifically, FinresPBC’s public mission is to provide Frax Protocol access to safe cash-equivalent assets and near Fed rate yields for the benefit of all without seeking to make a profit or charge fees.
• Furthermore, FinresPBC will continue to expand its traditional infrastructure including meeting the requirements for a Federal Reserve Master Account in the future.
• FinresPBC’s current banking partner is Lead Bank, a crypto-friendly regional bank.

Currently, FinresPBC is capable of conducting the following for the Frax Protocol:

• Hold US Dollar deposits in FDIC-insured IntraFi savings accounts & earn yield on such accounts.
• Mint/Redeem Paxos USDP stablecoin & earn yield.
• Mint/Redeem Circle USDC stablecoins & earn yield.
• Hold/Purchase/Sell United States Treasury bills in segregated brokerage accounts & earn yield.
• Importantly, all yield earned from these products will be returned to the protocol minus any costs/fees incurred to operate FinresPBC.
• FinresPBC will provide monthly reporting, auditing, & attestations, showcasing a full asset breakdown and report of all reserves it holds for the Frax Protocol.

Our Take: This is a significant move for Frax Finance and could provide a large inflow of protocol income. More importantly, it provides a major competitive advantage over other decentralized stablecoins that do not have access to similar traditional finance infrastructure.

MakerDAO (MKR)

Proposal: Deploy Spark on Polygon zkEVM

Author: Jack Melnick

Summary: This proposal requests to deploy Spark Protocol on Polygon zkEVM to support DAI’s growth on the network.

Key Points:

• Polygon zkEVM launched on March 27, 2023, and has crossed $30M TVL and reached over 213,000 unique wallets.
• By launching Spark Protocol on Polygon zkEVM, MakerDAO will be able to capitalise on an early growth opportunity for DAI and sDAI, solidifying their presence on the chain.

• Furthermore, Spark Protocol would begin servicing a new gas-sensitive user base thanks to Polygon zkEVM’s low transaction fees.
• If approved by the community, Spark Protocol will launch with WETH, wstETH, and DAI as collateral with Chainlink as their Oracle.
• Lastly, Polygon Labs will work with the Spark Protocol team to size a grant for bootstrapping the growth of Spark on Polygon zkEVM and help seed liquidity for DAI.

Our Take: Spark Protocol has seen decent growth since its inception. Launching to a cheaper zkEVM chain will allow the protocol to service gas-sensitive users and provide cheap access to the DSR.

Votes

Aave (AAVE)

Proposal One: Gauntlet Recommendation for CRV LTV -> 0 on Aave v2 Ethereum

Status: Finished.

Created: August 1, 2023.

Ends: August 6, 2023.

Leading Consensus: YAE — 919,348 AAVE (100% of total votes).

Summary: This proposal sets CRV’s LTV to 0 on Aave V2 in response to diminished on-chain liquidity conditions for CRV therefore, causing serious concerns over a possible bad debt scenario due to Curve’s founder borrowing a significant amount of stablecoins against his CRV position. Ultimately, this change stops users from being able to borrow against their CRV collateral (users are able to bypass this restriction using a flashloan).

Proposal Two: Cancel Llama Streams

Status: Finished.

Created: August 4, 2023.

Ends: August 8, 2023.

Leading Consensus: YAE — 561,318 AAVE (100% of total votes).

Summary: This proposal ratifies the cancellation of payments to Llama. Llama was a service provider to The Aave DAO, however, the community has expressed to cancel their remaining payment of $240k for the next 2 months, terminating their agreement early due to untimely task completion and mistakes.

Proposal Three: Gauntlet Recommendation to reduce CRV LT, LTV, debt ceiling on V3 Ethereum and CRV LT, LTV on V3 Polygon

Status: Finished.

Created: August 4, 2023.

Ends: August 8, 2023.

Leading Consensus: YAE — 505,740 AAVE (100% of total voting power).

Summary: Given the decline in DEX liquidity for CRV, Gauntlet is recommending reducing CRV LT from 61% to 41%, LTV from 55% to 35%, and debt ceiling from $20M to $5M on V3 Ethereum. Furthermore, they are also proposing to reduce CRV LT from 75% to 65% and LTV from 70% to 35% on V3 Polygon.

Compound Finance (COMP)

Proposal: Initialize cUSDbCv3 on Base

Status: Finished.

Created: August 5, 2023.

Ends: August 9, 2023.

Leading Consensus: For — 645k COMP (100% of total votes).

Summary: This proposal ratifies the deployment of Compound III USDbC (bridged version of USDC on BASE) market on Base. Suppliers on the protocol will receive 30 COMP/day while borrowers will receive 15 COMP/day.