Monthly DAO Update: October 2022
Hello, degens! After months of work & ivangbi crying over Fortnite losses, the devs finally locked him up and got the V2 through… Only to deliver a product that even went beyond anything even the DAO expected. Multiple different governance proposals were passed to bring you a safe and operationally sound product. Read more on V2:
And so far, the result speaks for itself:
1. TVL crossed $100 Million, double the LM estimate
We begin with the KPI everyone obsesses over the most, the TVL. Gearbox community has managed to grow to over $100 million in TVL so far! The lending side has had a liquidity mining program activated, you can see the details here. Or if you want to go ahead and add liquidity here to earn that sweet, sweet $GEAR. A total of $119M has been lent by 2944 liquidity providers as of writing this: https://app.gearbox.fi/pools/
TVL is not a fugazi metric here though! The amount of available liquidity determines how much Leverage Ninjas are able to play with.
The DAO has also voted to remove the 1% liquidity fee that was in place and it’s expected to be removed before 15th November. So you can disregard it.
On the borrow side, there are no incentives right now. With $60M+ borrowed at the time of writing this update, it has all come organically! It’s truly awesome to see, getting the product to a potentially real PMF 💪
We have been actively onboarding Leverage Ninjas in order to bring to life the idea of composable leverage. Make sure you come hang out in the community and have your addresses added to the Ninja list.
This borrowing has led to above average organic APY, when coupled with the additional GEAR APY starting this week. It makes for a very lucrative opportunity. Don’t miss the opportunity to 4.5%+ on stables and 8%+ on stables. You can go ahead and supply passively below. These GEAR yields can be extremely volatile and subjective as the token is not transferable. Please treat this number with scrutiny, as DAO voters are biased in estimating their worth!
2. We released a launch-game for fun, LOL
In the interest of helping our VCs pretend like they are GameFi investors too [joke, no such agenda]... we released a brand new game to help onboard users to the DAO. Fair warning, though — it is not all fun and games. If your wallet does not seem to have the required levels of degeneracy, we send you straight to the McDonald’s hiring page:
For those with transactional history, consider playing the game. It is simultaneously a walk down multiple rug-pulls and torched-down DeFi farms. .. in case you are wondering why we did it — read below.
3. Gearbox V2 — LIVE! ⚙️🧰
After months on efforts and feedback from the community, observations of our ape-brethren and an ever-evolving understanding of what the market needs, we shipped V2 . Here’s the crux of what you need to know.
What you really want to know, Allowedlist, has been expanded significantly to include multiple assets, pools, vaults and protocols. The allowedlist is what enables Gearbox to be composable by letting the CAs access new strategies. You can see the exact details on the same below.
But but how do you access them? V2 makes sure you accessing so many different strategies doesn’t require you to move around a lot and go to multiple protocols. You can simply go ahead and use our Ready strategies.
One click and you can have your position open with your preferred base asset and leverage. Oh and btw, you can finally access up to 10x leverage but that can carry multiple risks so manage them wisely. If leverage is not your thing, you can still earn above average APYs on stables and ETH here.
You can read more about Gearbox and V2 in this coverage by IntoTheBlock or Delphi Digital. You should also go ahead and access our docs.
The analytics team has also done a good job putting together some statistics on how traders using the platform have performed so far. The most profitable trader has already made ~43% APY.
You can see the numbers here:
The interface shows the worst case scenario. That is because the dApp uses Chainlink oracles to calculate prices in the UI instead of spot prices, which quite often deviate. So, the interface presents an overly pessimistic scenario. You can check Zapper or Zerion instead for the prices and value of your Credit Account closer to reality. Just input your Credit Account address into Zapper, and you can see all the positions there. Learn these tricks & tips.
4. Risks, Security and Insurance: All Upgraded
With all the additions, improvements and new features, it becomes vital to test out the safety of the product. We take this as an absolute top priority and this is also the reason why V2 is being launched in Ninja mode. Our approach to security has 3 key facets though:
- Risk management: As per our partnership with Risk DAO, they have helped us develop a 3 sided risk strategy that enables the protocol to function seamlessly and recommend bounds to minimise risks:
For a more complete coverage, you can check out this report by them.
- Security: With a new V2 codebase, it’s vital we test it out for bugs. While Ninja Mode provides protection against hacks, the DAO a go ahead post multiple audit completions last month. These have been carried out by Consensys, Sigma Prime and ChainSecurity. You can see the detailed reports on the links here.
Apart from the audits, the DAO has gone ahead and doubled the payout on our bug bounty to $300k till the end of the year, post which we’ll have a $50k (33%) increase on our current base for critical bug discoveries:
- Finally, Insurance: say you do decide to sell the farm and put it all into passive LP like Michael Saylor did with Bitcoin — it may be wise to get insurance for it. The big brains at Nexus Mutual have done a great job offering insurance covers for our users. As of writing this, it costs ~2.5% of the cover amount for a year’s worth of coverage for your LP position.
That’s how the Gearbox Risk Committee has worked on reducing the risk for the protocol and provide you a safer experience. Want to learn how to get the skills for you to safely farm and trade on chain with Gearbox?
Read the Gearbox Leverage Bible here.
5. Wen Token?
The vote to enable token transferability is likely to go live in the middle of November. The token unlock is planned for the 1st Week of December after liquidity is raised through Gnosis Auction. All these plans are at the final stage of planning, please weigh in if you have experience with that!
You can check the complete details below:
6. Financial Update
As of end of October, the DAO treasury stands with about $5.22M in its address and an additional 5.09B GEAR Tokens. Contributors were allocated $59k and a further ±3.9 million tokens over the month of work (vested for 12 months). While the only other expenditure was $120K paid out for Audits of the new V2 codebase. The protocol generated ~$74K in revenue with majority coming through the LP fee which should go away within a week. In terms of Obligations, the DAO now has only GEAR obligations as shown.
See more int he mothly DAO reports section of Notion:
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:
