Gearbox DAO update: April’23
The biggest difference between a DAO and a privately being built project is the fact that key information, or Alpha, as some might say, is never hidden. The building happens in front of everyone and transparency is as important as the actual tasks themselves. In our effort to ensure that, here’s another round of our Monthly DAO report that will give you an overview of all that the DAO discussed, executed and went through in April.
We publish these DAO reports monthly, you can sift through our medium to find the monthly updates. Or check the DAO work on our notion.
And with April through, we are 1 month closer to the much awaited V3 release. But between then and now, it’s going to be a lot of building, a lot of discussions and details regarding what’s next as the discussions flow. April on these terms did not disappoint. From a whole new pre-V3 announcement to tokenomics discussions taking shape. From a detailed overview of 2023 to lending market attracting even more protocols. April was an important one for the DAO, so read on to know all the alpha in 4 minutes.
1. Gearbox Protocol pre-V3 to launch in May
The big one from the previous month! The devs proposed an upgrade to the current codebase’s security. While the security module was earlier to be deployed alongside the complete V3 update, the devs proposed deploying the security module earlier. The DAOs decision to move forward on that discussion makes even more sense given the recent exploits in DeFi. The new version, pre-V3, features the security module designed for V3, Curve and convex MiM pools that enable our ninjas to make 40%+ and expansion of our LLSD(Leveraged staking) cohort with cbETH.
The new security module update eliminates any low or no traction features that could potentially lead to security complexities, fixes system bugs, upgrades existing code to the best practices and has been audited by Chainsecurity.
The security module will be the one used in V3 as well, possibly with more upgrades. The V3 codebase in fact will be built atop the V2 codebase and won’t be a completely new one. This is done considering that V2s code has now stood a test of time. Thus, “a battle tested codebase” to which upgrades are made will make a safe base for Gearbox protocol going forward.
2. 2023 Overview
With Q1 ending and multiple things happening, it was essential for the DAO members to recap what has already happened on the DAO and Protocol side. Q1 also saw some larger(and longer) discussions kick off around important topics such as tokenomics, L2s and more that’ll eventually be executed in the remainder of the year. The DAO released an overview of both the sides of the year to help all readers stay up to date and to ensure transparency across developments. You can read it below.
The overview captures the V3 launch details, Protocol’s lending to Gearbox, update on assets and adapters addition, LLSDs, Gearbots, OBRA model and more for Q1.
While the remaining of the year discusses key points such as tokenomics, expanding to L2s, leverage trading, security update, Balancer and Aura adapters and so much more. Go ahead and read the update to know everything in depth.
NOTE: The update only discusses the points mentioned across Gearbox forums into conisderation for 2023. The actual deliveries can be significantly more, different and subject to DAO votes. These are at the moment discussions that have traction within the DAO itself.
3. Tokenomics progress
$GEAR is still a governance token but with V3 coming in, we’ll see addition of Mid-Tails. These will generate additional, higher revenue. This revenue’s division will be up to the GEAR stakers. While the stakers are supposed to divide between the lenders and the DAO, there is no reason why a vote on stakers getting a share too won’t be possible.
Basis the same capability created through Quotas, Overkoalafied has come up with tokenomics ideas for the same. A discussion is now in place and can be followed on the below forum.
The current suggestions are
- Revenue Sharing
- veNomics
- Liquid Wrappers
- AAVE style safety module
- Part of GEAR feature economy
Go ahead and read them out and discuss to push utility for GEAR tokens.
4. Balancer lending to Gearbox markets: Update
Balancer and Aura started lending assets to the Gearbox stablecoin pools in order to boost the yields for underutilised capital in their pools back in February.
Gearbox till date has seen over $3M of asset value lent from Balancer. In an effort to increase this further, the DAO approved a proposal to introduce voting incentives in form of $GEAR for Aura users.
As per the proposal, 1M $GEAR tokens will be sent to Aura as incentives every two weeks in an attempt to increase the allocation of the pool. The first incentive has already been sent and we should find out the results over the coming weeks. Read the snapshot above for complete details.
5. Analytics UI Updated
Gearbox’s UI has had some great inputs from the chad users and discord GEARHeads. The devs listened and have upgraded the UI for the dApp. The newer UI features better collection of metrics including average leverage, the health factor levels and more. Links to more data sources to help you better analyse decisions before taking action, better visualisation for Credit Accounts, ability to dig deeper into individual CAs and more.
The lending pools will now display APYs for 3 different timelines to help you make better decisions. V3’s launch should see more UI advances taking place. You can read about the complete update in this thread by Ivan.
As the update says, you can check these for yourself at: charts.gearbox.fi/pools
6. Financial Update
As of end of April, the DAO treasury holds $4.89M in its address and an additional 4.5B GEAR Tokens. The realised revenue for the month of April was 43k while spends were at 95k. Contributors are to be sent $64k for April, while grants and sub-DAO fundings made up the rest of the spends.
For GEAR outflows, 22M were deployed as a part of the LM programs. While the rest(11M) were paid out to contributors as per the obligations.
This puts the DAO in a healthy financial place with a runway of over 2 years even after factoring in growth.
Other notable updates
Spaces with LIDO and Blocmates
Discussing LSD, Shanghai’s effect and relevance of Gearbox to the LSD ecosystem.
VIBES: Community program’s funding topped up
Explorers and the all new Learners rejoiced as VIBES received another round of DAO grants to grow the community. VIBES now aims to increase the PR presence, KOL count and increase community rewards with the newly received funding.
VIBES Community Report #3 went live
The report on what all was done with the funding from the 1st grant. Who all the winners are and recognition for our community members that pushes us forward.
Curve GEAR/WETH emission alteration
The DAO voted to extend the timeline of the Curve LM by reducing emissions by half as per GIP-49.
NOTE: The GIP was reversed in May
And that’s all for the DAO update bosses. If you would like to join — just get involved on Discord. Discuss, research, lead and share. Call contributors out on their bullshit and collaborate on making things better. Here is how you can follow developments:
- Website: https://gearbox.fi/
- dApp: https://app.gearbox.fi/
- User Docs: https://docs.gearbox.finance/
- Developer Docs: https://dev.gearbox.fi/
- Forum: https://gov.gearbox.fi/t/start-here-forum-rules/
- Blog: https://medium.com/@gearboxprotocol
- Github: https://github.com/Gearbox-protocol
- Twitter: https://twitter.com/GearboxProtocol
- Snapshot page: https://snapshot.org/#/gearbox.eth
- And, of course, the DAO working docs:
