Composable Finance
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Composable Finance

Leveraging Bribe Protocol and Mercenary DAO to Drive Adoption of Composable’s Cross-Chain Vision

Bribe Protocol and Mercenary DAO are Composable Lab’s latest incubations, with both constructed to keep governance decisions transparent, on-chain, and less dominated by whales. I see a future where Composable Finance provides a pipeline of value-adding proposals to a number of DeFi protocols, seeking for them to integrate Mosaic and become a part of the Composable ecosystem. To help these proposals pass, Composable and its users can leverage Mercenary DAO to accumulate governance tokens of these protocols, directing the tokens to pools on Bribe and rewarding those who backed the proposal. Composable can even eventually open up the use of Mercenary DAO in this manner for other projects seeking to enhance their chances of passing a proposal. In this manner, Composable recognizes and utilizes the power of decentralized governance in helping us spread our infrastructure through the DeFi industry, uniting the space.

Introducing Mercenary DAO

Through non-stop building and shipping in Composable and Composable Labs, we have built a suite of innovative products that are first-in-class in DeFi. First is Mosaic, a chain-agnostic, transfer availability layer that has in-built liquidity forecasting and rebalancing, along with several layers of assurance that transfers go through. Next is Instrumental, the first application that allows users to transfer LP positions between L1 and L2s to take advantage of the biggest APY across different layers and chains. We have also built Angular, a cross-chain money market that enables several isolated pools for the same assets, with different collateral types/ratios and risk/reward ratios that lenders can choose to be exposed to. These are just a few examples of our work thus far, and represent incredible progress in interoperable technological advancement.

However, just building interoperable technology is not enough to unify the DeFi space — we must also obtain adoption from the broader DeFi community. Without integrations into various dApps and projects in the industry, our technology cannot achieve its goals of true chain- and layer-agnosticism. Further, with each new addition to our ecosystem, the value of the ecosystem grows to users and existing connected projects. Thus, it is crucial for us to integrate with other DeFi protocols — and that is why we need a mechanism to guarantee that Composable’s ecosystem continues to obtain new integrations and grow.

Mercenary DAO is thus being incubated by Composable Labs. This project serves to accumulate a large amount of governance tokens in DeFi protocols we want to have Composable integrated with, so that we have enough voting power to successfully pass our proposals for integration. This is facilitated by its own native token, $WAR.

This mechanism is similar to an activist fund in TradFi, or how Convex and others have accumulated CRV governance tokens to influence Curve gauges. However, the goal of our plan isn’t short-term financial gain, but it is instead to enforce an examination and deliberation of our cross-chain products. If successful, the integration of our cross-chain DeFi products is value-adding to all parties involved. The efforts we are undertaking is therefore unlike the Curve Wars or self-serving activist investors, and instead battles against inertia and the mostly dormant governance in ‘governance tokens’ to bring the benefits of an interoperable ecosystem to all protocols and users in DeFi.

As usual, Composable wants to reward the community members that join us in promoting the cross-chain, cross-layer revolution. The plan is to allow to bond tokens in certain protocols in the war of integration that we are trying to win. The bond tokens will represent ownership in Mercenary DAO and $BRIBE and take advantage of yield farming opportunities, providing those who assist our efforts with a yield. Stay tuned for further developments in this model as we determine the optimal means of delivering rewards to our supporters.

Recap of Bribe

Bribe provides the infrastructure and tooling to incentivize governance participation from all token holders. Bribe has previously discussed its mechanisms in detail, but to recap, depositors stake their governance tokens in Bribe pools for proposals. Then, bidders borrow the staked votes to push their governance agenda and share rewards with depositors. Compared to the current norm of whales borrowing the needed governance tokens from Compound, this ensures that smaller token holders can share the upside as well, all while making the “bribery” that already exists in decentralized governance more transparent.

The Aave pool on Bribe is now live, offering AAVE and stkAAVE holders the chance to stake their tokens to earn rewards on proposals to add MIM and FRAX as collateral assets.

Composable Finance will similarly leverage Bribe to drive adoption of our protocol deep into the DeFi ecosystem, with the additional help of Mercenary DAO.

Composable x Bribe x Mercenary DAO

Composable Finance will use Bribe and Mercenary DAO to push integration of its cross-chain DeFi products with other DeFi protocols; meanwhile, Bribe and Mercenary DAO are DeFi innovations themselves in opening up on-chain governance to smaller token holders.

Composable Finance will identify the protocols most suited for governance intervention (e.g. integrations with its products); Mercenary DAO will accumulate these governance tokens in exchange for $WAR. Composable Finance will use $BRIBE emissions to direct governance tokens on Bribe pools. Once there are sufficient governance tokens on Bribe pools to command the attention of targeted protocols, Composable will bid on the Bribe pools and use the staked tokens to influence governance decisions. If successful, Composable’s proposals will get passed and participants will be rewarded with payout of the bids and $BRIBE emissions.

High level view of how value gets created and distributed

High level view of how Composable uses Mercenary DAO and Bribe

Summary

To bring about a cross-chain DeFi future, adoption via decentralized governance is as essential as the technology or the products themselves. Bribe and Mercenary DAO are the latest incubations from Composable Labs, tackling on-chain, cross-chain governance by incentivizing the participation of all token holders and pushing the integration of Composable products in a transparent way. We hope you’ll join our efforts to push the Composable ecosystem forward using these tools, advancing interoperability while ensuring supporters are rewarded along the way.

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If you are a developer with a project you think fits our ecosystem and goals, and you would like to participate in our interactive testing landscape at Composable Labs, reach out to me on Telegram at @brainjar.

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