Gearbox DAO Update: June’23
We are back again with our monthly DAO update. The goal of these updates is to quickly capture all the important developments from the month before. So here’s Gearbox’s June summed up in the next 3 minutes. Feat Curve V2, Trading dApp, Organic growth of lending market.
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. These reports cover key announcements from our twitter, gov forum, votes and other communication channels.
1. Curve V2: Bringing in 3 digit APYs on Curve
With the Gearbox security and risk framework improved through the V2.1 update, the protocol is now capable of adding more volatile pools. More volatile pools are likely to produce higher APYs and with leverage, these APYs can soar.
The Curve V2 pools that were approved by the DAO vote for addition prove the above claim. Overall, 5 new pools are to be added:
- Tricypto
- LDO/ETH pool
- CRV/ETH pool
- CVX/ETH pool
- OHM-FRAX BP
These pools will have an initial limit of $5M each at a protocol level and will only be available for a borrow against ETH(apart from OHM-FRAX BP). You can check the APYs these pools are capable of producing at different leverage levels in the post above. The complete details on the same will drop over the next week as the pools go live.
You can get access to these either by dropping your address on the governance forum or by pinging us on discord.
2. Solving the LM emissions and organically growing lending
With June, Gearbox kicked off a new concept called “The Contributor Blueprint”. This is where contributors bring up a specific and highly relevant community concern and then address it with a possible course correction that the DAO may adopt.
The first “Blueprint” discussed organic growth of the lending market. The thread highlights how borrow rates dictate the possible organic lending rates, while risk determines the required lending rates. This enables you to see how an evolving risk system will enable Gearbox to add higher APY pools such as the Curve V2 pools and trading pools. Which should take the possible organic lending rates up to the required risk adjusted rates. And hence remove the need for an LM and grow lending organically. Read the thread to know the complete details. All the additions are subject to a DAO vote.
3. Gearbox trading dApp first look
Gearbox this year will be putting to vote the launch of its trading dApp. The trading dApp will be the first spot leverage trading protocol on chain. The dApp’ll be using Uniswap as its AMM and the traders won’t be made to trade against a “house”. This will be possible as the leverage is created through spot assets. Below is the first look.
Till now, Gearbox’s focus was on growing the TVL through Leverage Farming and the UI wasn’t supportive of trading needs. This was for 2 key reasons.
- Trading required a more sophisticated and battle tested risk framework, which with quotas and limits Gearbox will have.
- V1 users showed higher preference for farming and hence a farming-first V2 had more likelihood of PMF.
You can read the complete details of product and DAO development strategy here.
But with the above 2 now sorted, the devs have debuted the first look of the trading UI. More details to follow next month. ⚙️🧰
4. Governance Update
There were a total of 5 votes that went live in June.
GIP-59: Allocate GEAR to EXMO earn program- EXMO is a regulated CEX with over a million users. The proposal aimed at taking Gearbox’s lending pools to their earn program with a GEAR boost. This will enable Gearbox to increase it’s TVL and to acquire more lending users.
GIP-60: Istnabul ETHGlobal Funding- ETHGlobal Istanbul will be happening right after Gearbox V3 launch and introduction of trading dApp. The DAO approved 3rd tier of sponsorship which will help push amplification of the above at the events.
GIP 61 and 63: Curve V2 pools addition- As stated above, the DAO approved addition of 5 Curve V2 pools that will help the protocol grow.
GIP-62: DLTExperts Onboarding and Contributor Update- The proposal aimed at approval of addition of DLTExperts, set up by Gearbox’s inventor, 0xMikko, as a contributor. Additionally it requested contracts for 2 contributors. The proposal went through taking Gearbox’s contributor count to 15.
You can go through all the votes on the link below.
5. Financial Update
As of end of June, the DAO treasury holds $4.49M in its address and an additional 4.3B GEAR Tokens. The realised revenue for the month of April was $75k while spends were at $125k. Contributor costs were at $75K while $50K was spent between Risk DAO and paying for gas for V2.1 deployment.
For GEAR outflows, 24M were deployed as a part of the LM programs and to incentivise voting on the bb-g-USD Balancer pool. While the rest(1.1M) were paid out to Risk DAO.
This puts the DAO in a healthy financial place with a runway of over 2 years even after factoring in growth.
What else
Other updates that you are likely to see over the coming weeks
a. Forum launched in Discord
To make discussions easier, forum was launched in Discord. Click on the image below to check out the topics that are live atm.
b. Gearbox Risk Framework upgrade.
To reduce the trust based nature of multisig and deployments. As well as to increase the transparency around how the code works itself, Gearbox will be launching a real time risk management soon. You can see the 1st version below
c. Diversification into LUSD
To reduce the centralisation and counter party risks of the treasury and to embrace decentralisation, a proposal to partly diversify the treasury to LUSD will go live soon.
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:
