Monthly DAO Update: January 2023
GM GEARHeads and welcome to the first DAO update of the year. And what a first month of the year it was as the markets went up only and so did our Ninjas. More on that in the protocol update, for now this is another one of DAOs effort to keep things transparent and accounted with our monthly DAO Update.
Speaking of DAOs efforts, January turned out to be a very energetic one with multiple new things being planned, pushed and executed. Decentralised DAO, token utility, Gearbots bringing automation on chain, launch of Third Eye Analytics and so much more. All of this has been covered in the article below so read on to know all about how the DAO is doing.
You can read our previous updates on our medium or check the DAO work on our notion.
1. Rise of the Gearbots: Automation on chain🤖
The Devs being the chads they are kicked off the year with the news of V2.1 and gave away alpha on what we can expect. The first of those are the “Gearbots”, Gearbots are open sourced, immutable, automation contracts that enable a user to operate a credit account without any manual intervention, apart from setting the operational parameters.
The devs held a workshop and brainstorming session on a YouTube stream with chads from Mellow Protocol, Brahma Finance, Wonderland and Gelato Network. You can view the same below.
With Gearbots, we’ll be able to add a key few UX features that have previously helped CEXes ease user operations. Limit Orders, Stop Loss, Health Factor Stabliser, Strategy switching and more will be available on Gearbox post V2.1 audit.
The stream also focused on how you can safely build a bot as well as automate it. The workshop also gave a live demo on the same and coded a limit order on the stream itself.
You can learn more about bots from the article below:
2. Third Eye Analytics are now here!
At the beginning of the month we unveiled a new intelligence tool that has been in the works for over a year, Third Eye Analytics or TEA. TEA looks at the data that is neither easily visible on etherscan or our existing charts app.
For the users, this meant a webpage that could enable them to check the details of their closed accounts, compare their performance with other users, and have graphs for monitoring changes in different parameter values
As for the gearbox Risk committee, this meant to make arbitrary queries on this data to determine various health checks, bad debt, and liquidation efficiencies. Making the protocol safer and enabling proactive movement to mitigate risks.
Given Third Eye is open sourced, anyone can contribute to it, you can check the details on GitHub. You can find the complete details on TEA in the article below.
3. Token Utility Discussions kicked off
Everyone’s most awaited aspect of the Token finally had a pre-GIP started. At the moment, the pre-GIP is supposed to serve as an idea board but we have multiple early ideas that could potentially turn into meaningful token utility options.
The current options being discussed include a possibility of using $GEAR staking to reduce fee for users, using our upcoming features and automation upgrades to turn $GEAR into the spend mechanism for a feature economy on the dApp, added access to more degen vaults and collateral, using $GEAR as a backstop for your account, possibility of a veGEAR or not and so much more.
Go ahead and chime in your opinions and feedback. We will probably see this develop into a comprehensive plan over the next few weeks. IF any utility does finally get approved, it’ll then be followed by with the actual development and any audits. So while we have great opportunities for utility, these are largely medium term plans.
4. OBRA DAO Governance Framework adoption?
To ensure the growth of the DAO into something where powers aren’t centralised yet work gets done and delivered is a key priority at the moment. To get there, we have had a discussion come through and now ready to be sent to vote. The discussion is based on the OBRA model basis the Safe DAO governance forum.
The proposal aims at creating new “Initiatives” where submissions are invited to align the DAO on a certain strategy, the resources required to fulfil them and the timelines. If it’s something that members feel they need, they can go ahead and approve it. A similar process is to be followed for creating Sub-DAOs. We already have a Sub-DAO pre-GIP up..
BD Sub-DAO proposal: Submitted by an ex-core member, Jared Hedglin, is the proposal to create a BD Sub-DAO that’ll aim at increasing TVL, managing institutional side of things and ensuring development or process to ensure future BD growth for Gearbox DAO. You can read all of it here.
For the current contributors, the model also a proposes a longer term vesting based new payment structures that incentivises contributors to commit another year to the DAO. If contributors commit to this but don’t complete the year, they lose 75% of the tokens they would get otherwise. If they are already unsure of or don’t want to commit another year, they can continue with the current method and no multiplier. You can read all of this below.
5. Balancer Liquidity Mining Update
We had GIP-39 come out with the aim to seed a pool on Balancer. This was to be done by deploying 300ETH and equivalent value of $GEAR to a balancer pool. Further, a third of the $GEAR from Cider was to be diverted to this pool while the Curve pool’s utilisation was to be moved from 4 months to 6 months. Given the abnormally high APY on Curve GEAR/ETH pool, this was an understandable move.
The GIP went live but in a first for the DAO, couldn’t reach quorum. While there was clear preference to seed the pool. The same proposal will now be relaunched as GIP-39(2) in order to vote and approve the quorum
You can check the voting page below.
Part of the reason why quorum couldn’t be reached was because more than 11% of the circulating supply is currently LPed in the curve pool. This liquidity was further provided by previously active members. In order to correct this a proposal had been created to add these members back to the voting pool. You can check it here.
6. Financial Update
As of end of December, the DAO treasury holds $5.06M in its address and an additional 4.59B GEAR Tokens. The realised revenue for the month of January was 23k while spends were at 156k. Contributors were sent $57k and earned a further ±3.6 million tokens over the month of work (vested for 12 months). While the other expenditures were: $87K paid out for the Gearbox V2.1 audit by Chainsecurity and $11K for an Immunefi Bug bounty payout.
For GEAR outflows, 2M were paid out to multisig participants, 11.8M for vesting contracts of the contributors and a further 350K GEAR for the 0xCider dev.
This puts the DAO in a healthy financial place with a runway of over 2 years even after factoring in growth.
Other headliners
Smol things we couldn’t cover above.
Protocol Update
Our protocol update again came out this month and had the secret to “win” on Gearbox. It covers everything from how CAs are being used to what integrations are used the most. From what ninja commonalities enable them to make money to what not to do and lose money. Read it to learn more or just because of how interesting a read it makes.
Brahma and Mellow new vaults
Brahma and Mellow BOTH introduced new vaults on Gearbox. For the people who want to use Gearbox but don’t qualify the Ninja requirements, this can be a great fit. Read below to learn more.
What next?
What you can expect to see this month? Here’s some early alpha
New collaterals and integrations
Discussions for new collaterals and integrations coming soon? Devs gave some alpha with the approval for the audit but nothing is confirmed for allowedlist there yet. Anyway, discussions on MiM and cbETH are already underway in the forums. Discussion on adding LUSD as a collateral are underway too.
LLSD
The bigger one, with the above cbETH discussion, the goal of the DAO is to enhance it’s LLSD cohort to 2 of the key 4 players: LIDO and Coinbase. rETH and frxETH still don’t have a chainlink oracle and thus can’t be added but we are likely to see more developments in this direction soon. Meanwhile you can read this article on LLSD below.
That’s it on this month’s DAO update. If you would like to earn passively, remember to LP into our Lending Pools to earn GEAR. If you want to take leverage as Ninja just ping us on Discord or post on the forum.
Otherwise you can always get involved with the DAO — 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:
