pTokens Launches pNetwork DAO with PNT Staking

https://defirate.com/pnetwork-dao/

pTokens – a trustless bridge for interoperability – has summoned its DAO to handle all protocol governance using PNT tokens.

Built by Provable Things, pNetwork offers a platform to port assets to and from Ethereum using wrappers called pTokens. The most popular version of these wrappers is pBTC – an Ethereum-based version of Bitcoin similar to renBTC. Underpinning the pNetwork is a set of decentralized validators who post a bond in PNT governance tokens to operate a node on the network. Whereas this aspect was a great way for validators to have skin in the game, it’s largely limited to a technical audience.

Today, PNT rewards can be earned by any user by joining the newly launched pNetwork DAO and participating in governance. Built on Aragon, users stake PNT for governance-wrapped tokens called daoPNT. To encourage users to participate in voting, pNetwork is allocating up to 28.35M PNT (47.25% of the total supply) via governance reward inflation.

Similar to other governance-based rewards like KyberDAO and Nexus Mutual, PNT is only rewarded to active contributors. As illustrated in the DAO interworking post:

“A DAO member is considered active and only becomes eligible for rewards if they are daoPNT holders and the check confirms that they have voted on at least all proposals except one within the two week period.”

The rewards are projected to provide 42% APR in the first year followed by 21% in the second year. Stated another way, if you stake your PNT via the pNetwork DAO and vote on every proposal, you will earn a 42% return on your initial PNT contribution (denominated in PNT).

The pNetwork DAO features a 7 day cooldown period and is expected to kick off it’s genesis governance polls in the coming weeks!

DeFi DAOs Heat Up

The launch of the pNetwork DAO comes in tandem with a suite of other DeFi DAOs from projects like Kyber, Aave, Curve and bZx.

While Curve will also be built on Aragon, it’s interesting to recognize that many DeFi projects have opted in to building their own framework instead of using an out of the box solution like Aragon. Still, Aragon-based tooling offers much more flexibility in the future upgradability of these DAOs, and is quickly becoming the leading platform for large organizations to field future governance.

Backed by the recent ANT liquidity program, Aragon will also look to ship a native chain this year, allowing DAOs to port their governance to a low cost, real-time transaction relayer which harnesses all the benefits of Aragon in a scalable fashion.

Over the next few months, it will be super interesting to see the different levels of engagement each of these DAOs receives. While using liquidity mining to incentivize participation is a step in the right direction, the bigger conversation is around making governance interesting enough that tokenholders would participate with no rewards in mind.

If nothing else, it’s great to see governance taking center stage and is a trend that we at DeFi Rate are extremely excited to watch unfold.

To stay up with pTokens for all DAO related events, be sure to follow them on Twitter or join the conversation on Discord!

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Why Decentralized Energy (DeEn) is Necessary to Power the DeFi Revolution

https://medium.com/lition-blog/why-decentralized-energy-deen-is-necessary-to-power-the-defi-revolution-cf71dd6f6b54?source=rss------defi-5

DeEn must be considered a critical component to DeFi if we are to build a truly accessible, efficient, and transparent new world.

Continue reading on Lition Blockchain »

Announcing Continuous Auditing and the results of the pNetwork DAO

https://medium.com/@provablethings/announcing-continuous-auditing-and-the-results-of-the-pnetwork-dao-f9c6525cfb17?source=rss------ethereum-5

We are proud to announce the successful security audit of the pNetwork DAO codebase performed by Cryptonics Consulting. And to show our…

Eidoo and pNetwork launch their DAO

https://en.cryptonomist.ch/2020/07/30/eidoo-pnetwork-launch-dao/

pNetwork has launched its DAO (Decentralized Autonomous Organization) to gradually become an increasingly decentralized platform.

To encourage participation in this DAO, users will be able to use their PNT tokens for voting and staking.

In this case, there is an APR of up to 42% and users will be able to comfortably use the Eidoo ecosystem to take advantage of their tokens and then vote and participate in the governance of pNetwork.

From the second year, the APR will become 21%.

The whole system is based on Aragon, a platform that hosts the management of communities specifically to manage the DAOs. 

It will consist of 3 main elements:

  • A staking app for the tokens;
  • A voting app to vote on the various proposals;
  • A reward app to receive all the compensation.

In addition, almost half of the PNT tokens will be staked. These tokens come from the team, from the Eidoo card’s staking program.

The circulation supply can be used by the various users to participate in the whole ecosystem.

The token will be PNT, and can be used to enter and exit the DAO.

When staking, daoPNT will be generated that will be used to vote and, to prevent abuse, there will be a lock period of 7 days.

The daoPNT tokens will also be used to receive interest earned over time by actively participating in the DAO.

The relationship between Eidoo and pNetwork

A few months ago, Eidoo announced a change in its token economy, integrating pNetwork and changing the ticker of the EDO token to PNT, the crypto at the basis of the pNetwork ecosystem.

pNetwork is a system created by Provable Things, an English company that belongs to the holding company Poseidon, of which Eidoo is also part.

In fact, who held EDO tokens ended up owning PNT, with an exchange rate of 1 to 1.

 

The post Eidoo and pNetwork launch their DAO appeared first on The Cryptonomist.

Aave Announces Aavenomics Token and Governance Upgrade

https://defirate.com/aavenomics-upgrade/

Aave, the rising money markets protocol, announced its token and governance upgrade Aavenomics: a formalized path to the decentralization and self-sustainability of the network.

For those looking for a quick TLDR, check out the post’s sleek Flashpaper. For those looking to do a deep dive, the full interworking cans be found here.

Token Economics

The upgrade features a handful of key additions and changes to the growing lending protocol. First and foremost, Aave’s native token LEND will migrate to a new token AAVE at a rate of 100: 1 following approval from LEND holders via the Genesis Governance Poll. In turn, the total supply will shift down from 1.3B LEND down to 16M AAVE.

While 13 million AAVE will be claimable by LEND holders at the aforementioned rate, the remaining 3M AAVE will be allocated to the Aave Ecosystem Reserve – a bootstrapping fund for protocol incentives governed by AAVE tokenholders.  The protocol’s ecosystem reserve will be allocated between a handful of different incentives, including both the “Safety” and “Ecosystem” incentives. With that, the reserve’s Safety incentive allocation will be distributed to holders who deposit AAVE into the Safety Module (SM). The Safety Module acts as an insurance reserve for Aave users in the instance of a shortfall event and in return, will receive rewards along with a percentage of the protocol fees. With that, it’s important to note that Aave will be transitioning away from the current burn model in favor of this dividend-like token model.

What’s interesting about the Safety Module is that it not only features vanilla AAVE in the module but it also leverages a Balancer pool to incentivize market liquidity. Naturally, the Balancer pool will also accrue BAL rewards and trading fees for Safety Module Stakers on top of the protocol’s native incentives – showcasing DeFi’s composability at its finest.

The other piece to the incentive puzzle is the introduction of Ecosystem Incentives. In line with the current trends in DeFi, Aave will be implementing a liquidity mining mechanism into the protocol. Therefore, users who supply or borrow assets from Aave will earn rewards.

Lastly, Aave governance may also elect to allocate a portion of the Ecosystem Incentives to fund or bootstrap applications building on the Aave ecosystem.

Governance

With the introduction of the Aave Ecosystem Reserve along with the team’s dedication towards decentralization and self-sustainability, Aave Governance is a critical piece to the Aavenomics upgrade.

The driving force behind Aave Governance is the introduction of Aave Improvement Proposals (AIPs) which represent modifications to the protocol that are ratified on-chain by AAVE tokenholders. An interesting design piece to this is that users who holder AAVE in cold storage or even staked via the Safety Module can use their token weight to vote on AIPs. Passive tokenholders also have the option to delegate their voting power to Aave Protocol Politicians.

Aave tokenholders will also play a role in adjusting Aave Policies, a set of governance defined rules that control the parameters behind the protocol, and individual money markets. As such, there are two main types of policies available for governance changes.

The first is Protocol Policies which dictate the overarching behavior of the Aave Protocol including risks, improvements, and incentives. The second is Market Policies which define the context and parameters behind each market within the protocol, like the Uniswap Money Market or the TokenSet Money Market. Changes to Market Policies may include adding or removing supported assets, adjusting loan-to-value ratios, or modifying interest rate models.

Closing Thoughts

With Aave’s explosion into the DeFi ecosystem this year along with their ability to consistently innovate with new products, like credit delegation, the Aavenomics announcement is right on brand with what the team has built to date.

The protocol is not only introducing emerging trends prevalent in DeFi like yield farming but also leveraging the blooming composability available within Ethereum’s DeFi ecosystem. The introduction of the Aave Safety Module provides AAVE tokens with a claim on the protocol’s cash flows while also featuring a Balancer pool to maximize rewards.

While the exact timeline on the Aavenomics mainnet launch has been kept high-level, we can expect that this upgrade will serve as a driving catalyst for Aave’s next leg in growth similar to Kyber’s recent upgrade in early July or the announcement of Bancor V2.

At the time of the announcement, value locked in the Aave protocol is up 13.2% to $424M in total assets while LEND surges 16% to $0.31 valuing the protocol at $395M.

If you’re interested in staying up to date, make sure to follow Aave on Twitter. For those looking to get involved in the discussions surrounding Aavenomics, make sure to join the official Discord!

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DerivaDEX Raises $2.7M For Decentralized Derivatives Exchange

https://defirate.com/derivadex-exchange-raise/

DerivaDEX – a new DEX for derivatives contracts on Ethereum – is unveiling their new DeFi product along with announcing a $2.7M raise from leading investors.

DerivaDEX is aiming to build a community-owned exchange for traders to speculate on and hedge with a suite of leveraged derivatives products in a non-custodial, transparent nature in line with the ethos of DeFi. On brand with the current trend, the exchange will be underpinned by native governance token (DDX) which will be distributed to users via a liquidity mining model. While details are sparse, DerivaDEX is planning on launching in Q3 2020 while also kicking off a series of incentivized opportunities for early partners and adopters, including testnet competitions, insurance mining, and more.

With today’s announcement, the team also disclosed their $2.7M investment round led by some of the top investors and community members in DeFi. Notable names include Polychain Capital, Dragonfly Capital, Coinbase Ventures, Three Arrows Capital, Calvin Liu, and others.

In the broader lens, DerivaDEX is looking to bridge the gap at the intersection of trading and blockchain engineering to build an intuitive, secure, transparent derivatives exchange that can compete with the liquidity and UXs of centralized exchanges while providing the security and transparency of DEXs.

DerivaDEX is attempting to solve this with three core properties:

  1. DerivaDEX DAO – a decentralized autonomous organization responsible for managing the protocol and minimizing any single point of failure. The DAO will be governed by the protocol’s native token, DDX.
  2. Open Order Books w/ on-chain settlement: DerivaDEX’s system offers capital efficiency by building an order book market style with off-chain price fees, matching engine, and liquidation operators to solve for speed and efficiency. Moreover, this design enables the DEX to represent any asset in existence with minimal slippage.
  3. Liquidity Mining: DerivaDEX is aiming to leverage the emerging trend of liquidity mining to bootstrap and incentivize participation in governance and operations of the DEX.

Closing Thoughts

With current non-custodial derivatives exchanges dominated by dYdX along with the recent entrance of MCDEX, the DeFi derivatives exchange sector is starting to heat up. Given BitMEX’s historical dominance in offering perpetual swaps, there’s no shortage of an addressable market for these protocols either. Billions of dollars in volume are traded on a daily basis with these exchanges, so offering a non-custodial and entirely transparent alternative (with an intuitive UX) should be enticing for the DeFi community.

The cherry-on-top with the recent entrants of MCDEX and now DerivaDEX is the introduction of liquidity mining (or yield farming). Users can now earn some attractive rewards by using the respective exchange products, something that dYdX and CEXs at large currently lack.

As mentioned, the team is planning on launching a suite of incentivized programs for new users to test out the product. If you’re keen on getting involved, you can sign up here to be notified of any of the upcoming programs.

For more details on DerivaDEX, you can read up on their official announcement post here. And if you’re looking to stay up to date on the latest developments with the new exchange, make sure to follow them on Twitter!

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[GUIDE] Incentivized Governance Protocol & How Voting Works in CBDAO

https://medium.com/@coinbreeder/guide-incentivized-governance-protocol-how-voting-works-in-cbdao-7ea3a35a0aec?source=rss------defi-5

Decentralization, incentivization and democratization are what makes up the core principles of the blockchain and we believe that…

Continue reading on Medium »

Commodities trading made easy thanks to Mettalex’s decentralized platform

https://medium.com/fetch-ai/commodities-trading-made-easy-thanks-to-mettalexs-decentralized-platform-517eaca538de?source=rss------defi-5

Commodity exchanges can be complex, but Mettalex will lower the barriers to entry by providing a simple low cost, low risk solution.

Could Compound’s Governance Token COMP Be Deemed a Security?

https://cointelegraph.com/news/could-compounds-governance-token-comp-be-deemed-a-security

Examining COMP’s ability to pass the Howey test for being qualified as investment contracts and to be considered a security.

Innovation springs eternal in the digital asset ecosystem, and with Compound’s launch of its governance token, COMP, last month, the burgeoning world of decentralized finance continues to pick up steam. The broader cryptocurrency community has embraced COMP, which now trades on OKEx, Binance and Coinbase Pro, among other digital asset exchanges, while other investors were dumping Compound tokens after listing on major exchanges, according to the report by Flipside Crypto. By democratizing access to liquidity and yield, DeFi is in many ways the next logical step in cryptocurrency’s seemingly unstoppable march toward disrupting the traditional financial services markets.

However, innovative blockchain and cryptocurrency applications do not occur in a regulatory vacuum. Issuances of digital tokens must always take into consideration United States federal securities laws, lest they fall victim to the cold, hard grip of the U.S. Securities and Exchange Commission, with Telegram as a case in point. Therefore, it is imperative to ask the question: “Is Compound’s token, COMP, a security?”

Related: Compound’s COMP Token Takes DeFi by Storm, Now Has to Hold Top Spot

What is COMP?

Compound is a decentralized protocol that establishes money markets with algorithmically set interest rates based upon supply and demand, allowing users to lend and borrow various digital assets. COMP, on the other hand, is the native Compound ERC-20 token that allows for decentralized governance of the Compound protocol. Those who hold COMP may debate, propose and vote on all changes to the Compound protocol.

COMP is distributed on a daily basis to users of the Compound protocol. Each time a user interacts with the Compound protocol — e.g., by supplying, borrowing or repaying assets — COMP is automatically distributed to the user.

The Howey test

A “security” under U.S. federal securities laws includes the exceptionally broad concept of an “investment contract.” Whether any asset (including a digital asset) constitutes an investment contract and, thus a security, is determined by applying the Howey test.

An asset is deemed a security when all four criteria of the Howey test are met:

  1. An investment of money. 
  2. In a common enterprise. 
  3. With a reasonable expectation of profits. 
  4. To be derived from the efforts of others.

Investment of money

While seemingly straightforward, the first prong of the Howey test does not specifically require a traditional investment of cash. As the SEC stated in the DAO Report, a digital asset can satisfy this prong if exchanged for cash or “other contributions of value.” Perhaps more importantly, as stated in the cease-and-desist proceedings of Tomahawk, the SEC has highlighted that “free” distributions of tokens or “airdrops” in exchange for economic gain can satisfy this prong of the Howey test.

While COMP is issued for “free” to users, it is offered in exchange for their participation in the Compound market. Once users hold COMP, they will be able to vote on updates to the Compound protocol, as well as the underlying lending and borrowing mechanics.

Common enterprise

In one of the SEC’s rare pieces of public guidance on the topic of digital assets and the application of the U.S. securities laws, it explicitly stated that a common enterprise typically exists in the digital asset context. With respect to COMP, the token’s purpose is to actively promote the distributed governance of the Compound protocol — making it very likely to qualify.

Expectation of profits

The third element of the Howey test requires an expected return from profits. COMP is now available on multiple secondary trading markets. According to the SEC, the existence of a secondary trading market is typically an indication that people wishing to buy the digital asset may be expecting profits. It is worth noting that COMP has been trading at a 100% premium since its initial launch on June 16, 2020. Whether or not there is an “expectation of profits” typically depends on the intent of the purchasers of COMP.

Furthermore, the expectation of ancillary benefits does not diminish or serve to undermine this analysis. Therefore, if individuals purchase COMP to earn profits but also obtain some ancillary benefits, such as governance rights with respect to the Compound protocol, then the investment can nonetheless still be deemed to be made with an expectation of profits.

From the efforts of others

The fourth and final element of the Howey test requires that a return on an investment originate from the efforts of others. It would seem clear that the value of COMP is derived intrinsically from the value, operability and success of the underlying Compound protocol and its effective implementation of DeFi.

There is also no doubt that individual holders of COMP, by participating in the governance of Compound through their COMP ownership, may contribute to such returns. Unfortunately, it would appear that Compound, albeit indirectly, may likely continue to play a leading role in the development and success of its protocol. While the company will be distributing approximately 2,880 COMP to its users over the next four years, shareholders and founders of Compound will retain almost 50% of the total supply of COMP, and Compound will continue to create and focus on services that run on its protocol. While this state of affairs by no means indicates that the return on investment with respect to COMP will originate solely from Compound itself, in order to satisfy this prong of the Howey test, profits need not come exclusively from others, but rather “primarily” or “substantially.”

The final verdict

Where does this leave us? COMP’s recent listing on Coinbase is of particular significance, given that the market views the platform as an informal arbiter in these matters — only listing tokens that it believes are not securities. Unfortunately, the SEC has the final say, and the Howey test is as expansive as it is nebulous.

Despite COMP’s utility and decentralized governance mechanics, if history is any indication, there is a strong likelihood that the SEC would view COMP as satisfying each of the Howey test prongs and, therefore, constitute it a security regardless of the fact that it has yet to make such a definitive statement concerning any of the most widely distributed tokens on major U.S. exchanges.

It is worth noting that this determination says nothing of the regulatory implications of the underlying DeFi mechanics. Participants in traditional retail lending can attest to the myriad state lending laws, licensing obligations and money transmission implications. As DeFi continues to challenge traditional lending mechanics, we cannot help but contemplate the challenges that such a structure may also pose to traditional lending regulation. However, we leave that discussion for another time.

The views, thoughts and opinions expressed here are the authors’ alone and do not necessarily reflect or represent the views and opinions of Cointelegraph.

This article was co-authored by Ethan Silver and William Brannan.

Ethan Silver and William Brannan are attorneys with Lowenstein Sandler. They advise cryptocurrency, blockchain and digital asset businesses navigating federal and state regulatory frameworks. They also counsel cryptocurrency trading platforms, exchanges, custodians and related businesses with respect to federal securities laws and work with technology-focused broker-dealers and robo-advisors on formation, structuring and regulatory matters. Ethan is the chair of the firm’s fintech practice, in which Will is counsel.

Governance Tokens: Surveying Ethereum’s Most Popular DeFi Projects in 2020

https://blockonomi.com/governance-tokens/

Governance tokens, which give holders the right to influence the direction of decentralized finance projects, have been among the biggest hits in the Ethereum ecosystem this year.

Indeed, at the time of writing the combined market cap of Ethereum’s top 8 DeFi governance token projects had risen to over $4.3 billion USD. For comparison, bitcoin’s market cap is currently $169 billion, ether’s is $26 billion, XRP’s is $6 billion, and bitcoin cash’s is $4 billion.

This reality suggests these governance tokens are becoming increasingly popular in the cryptoeconomy for giving users a direct stake in managing DeFi platforms. However, it remains true that many folks in the space still don’t understand these tokens and what they do. To highlight Ethereum’s reigning and rising governance tokens, let’s survey the largest ones as well as two newcomers, Curve’s CRV and mStable’s MTA.

COMP

Market cap: $1.68 billion
Current total supply: 10,000,000
Current price: $168

COMP, the governance token of the money market protocol Compound, is presently the largest governance token per market cap. The token gives its community of holders the ability to vote on key changes to Compound. COMP can also be delegated to others for voting.

In blooming as a decentralized lending and borrowing hub, Compound was already very popular in DeFi before its COMP token went live in June 2020. Since then, COMP liquidity mining, which allows users of Compound to earn COMP proportional to their activities, has helped propel Compound to being the largest DeFi dApp in general with nearly $700 million worth of assets locked in its protocol right now.

SNX

Market cap: $669.6 million
Current total supply: 194,006,803
Current price: $3.45

SNX is the native asset of Synthetix, a decentralized platform for issuing Ethereum-based synthetic assets that can track real-world assets like currencies, commodities, and more. In December 2019, the Synthetix team announced a transition to decentralized governance, wherein a few major Synthetix stakeholders would initially control the project’s treasury ahead of SNX token holders eventually taking over the treasury and protocol.

SNX already has utility beyond this governance aspect, as users can lock SNX up as collateral to create Synths like sUSD, i.e. synthetic USD. To this end, SNX is not strictly a governance token, but it is evolving toward this additional model.

MKR

Market cap: $447.4 million
Current total supply: 1,005,577
Current price: $444.93

MKR, the governance token of the popular DeFi borrowing and stablecoin project MakerDAO, was the DeFi ecosystem’s original governance token. Since then, the asset has inspired multiple other projects toward decentralized governance and has served as the early bar against which these other projects measure their tokens against.

MKR is used to vote on important changes to the Maker protocol, like the addition of new collateral types. MKR doesn’t have in-built vote delegation functionality (like COMP) for now, but plans are in motion to bring delegation to the token. Compared to many peer projects, MKR is also noticeably deflationary, as MKR fees paid to the Maker protocol get burned.

LEND

Market cap: $385.5 million
Current total supply: 1,299,999,942
Current price: $0.30

LEND is the collateral and governance token of Aave, a rising decentralized borrowing and lending protocol on Ethereum. Aave is akin to Compound in what it offers to DeFi users, though Aave provides unique features like flash loans and credit delegation, i.e. the ability to let others borrow against your collateral.

When staked, LEND confer voting rights and also earn their holders fees generated by the Aave protocol. At the same time, these staked LEND serve as a defense for Aave in the case of mass liquidation episodes.

KNC

Market cap: $333.8 million
Current total supply: 210,552,294
Current price: $1.59

KNC is the native token of the Kyber Network, an on-chain liquidity aggregator protocol that lets users make decentralized trades. In July 2020, the Kyber team rolled out the Katalyst upgrade and KyberDAO, which allow users to stake KNC in order to earn voting fee rewards and and govern the Kyber Network. Notably, Kyber is among Ethereum’s most popular decentralized exchanges as things stand.

BAL

Market cap: $294 million
Current total supply: 35,870,000
Current price: $8.20

Balancer is an Ethereum-based automated market maker (AMM) that’s somewhat similar to Uniswap. In contrast to Uniswap’s two-token liquidity pools, though, Balancer offers the ability to open up pools composed of up to 8 different ERC20 tokens. BAL is the governance token of Balancer and lets holders decide the direction of the protocol. The newly launched project is also offering a liquidity mining campaign, in which Balancer users are rewarded with BAL on a running basis.

BZRX

Market cap: $286 million
Current total supply: 1,030,000,000
Current price: $0.28

bZx is a decentralized lending and margin trading protocol, and its team is behind the Fulcrum and Torque platforms. This summer, protocol’s builders unveiled the v3 token model of BZRX, the governance token of bZx. This token can be staked to earn protocol fees, as well as Balancer fees and BAL rewards for serving as a liquidity provider in an underlying Balancer pool.

UMA

Market cap: $187.3 million
Current total supply: 100,312,319
Current price: $444.93

Launched in April 2020, UMA is the governance token of the UMA protocol, which can be used to create a wide range of synthetic, “priceless” assets. These assets are priceless because they minimize oracle use in not relying on an on-chain price feed. Accordingly, UMA tokens give holders the right to help decide important protocol parameters, supported asset types, and more. Moreover, in the case of price request disputes UMA holders step in to fulfill requests through the UMA protocol’s Data Verification Mechanism.

CRV

(Stats TBD)

Curve, a decentralized exchange protocol for efficient stablecoin trades, is currently the 8th-largest DeFi project according to tracker site DeFi Pulse. In June 2020, the Curve team announced plans to launch CRV, a governance token, and CurveDAO, an Aragon-based organization that would be used to decentralize Curve’s governance going forward. CRV, which will be rewarded (even retroactively) to Curve users, will have an initial supply of 1 billion. The token’s inflationary schedule will eventually get the supply to just over 3 billion tokens. Reportedly, CRV will be released to the public by the end of summer 2020, at which point price discovery will begin.

MTA

(Stats TBD)

MTA is the governance token of mStable, a meta-stablecoin protocol that lets users create mASSETS, e.g mUSD, using underlying baskets of stablecoins like USDC, USDT, and Dai. MTA had its initial offering on July 18th on the Gnosis-backed Mesa exchange protocol, which is focused on superior liquidity in relying ring trades. 2.66 million MTA were released during the sale, the proceeds of which were delivered to the mStable project’s associated Aragon DAO. Notably, MTA can be staked for earning platform fees and interest.

Conclusion

With the rise of governance tokens like the ones above will come factions, and from these factions will come protocol politicians, who will approach the newfound politics of these DeFi platforms in different ways.

For example, some protocol politicos for lending platforms will be more permissive toward adding a wide variety of supported collateral types, including more centralized assets like USDC, WBTC, and so forth. Conversely, other politicos will be more conservative and lean toward keeping these DeFi platforms as non-reliant on centralized solutions as possible.

This is just a taste of what’s to come, too; the potential of this political arena is now just beginning to take shape, just as the wider DeFi sector is.

The post Governance Tokens: Surveying Ethereum’s Most Popular DeFi Projects in 2020 appeared first on Blockonomi.

iEarn Releases YFI Governance Token with Liquidity Mining

https://defirate.com/yfi-governance-token/

iEarn – a fan-favorite liquidity aggregator – has shared the blueprints for a YFI governance token in tandem with a suite of new liquidity pools.

Best popularized for the Y Curvepool, iEarn offers a number of avenues for users to earn passive interest for supplying capital to any number of the protocols supported pools. Historically, iEarn pools have earned some of the best lending rates in all of DeFi, with the yearn.finance pool aggregating $8M in AUM in tandem with a historical return of just over 10% APY since launch.

Today, iEarn introduced a suite of new, existing, and discontinued products including:

  • yTrade – Trade top stablecoins DAI, USDC, USDT, TUSD and sUSD with up to 1000x leverage using an initiation fee or 250x without an initiation fee.
  • iLiquidiate – An automated liquidation engine for Aave defaults.
  • iLeverage – Open a 5x leveraged Dai Vault using USDC as collateral.
  • iPool – A y.curve.fi <> sUSD curve.fi meta pool offering the best rates between Curve’s two most popular pools. (Discontinued)
  • ySwap – A stable AMM allowing for single-sided liquidity provision while collecting interest and rewards.
  • *.finance – TBA credit delegation platform using Aave undercollateralized loans.

What emerges is a sophisticated lending and arbitrage protocol that routes liquidity across different corners of DeFi to earn the best returns. Using lending protocols like Curve, dYdX, Compound, and Aave along with AMMs like Uniswap and Balancer opens the door for cross-protocol returns extremely difficult to mimic as an average user.

As if that wasn’t enough, the incentive to use iEarn just got a little sweeter.

YFI Governance Token

Following in line with the wider trend of liquidity mining, YFI can ONLY be earned through usage of any of the aforementioned pools. This is in stark contrast to something like COMP and BAL in which a portion was held by the time and another portion was offered in an Initial DEX Offering. Instead, the only way to earn tokens is through usage, and iEarn was very blatant about stating the token has 0 value outside of governance.

It’s likely that the most popular way to earn will be through the yCurve stablecoin pool, and Curve graciously put together a guide on this works here.

YFI Rewards Pool

Outside of openly memeing that YFI has 0 financial value, the project has created a pretty strong token model under the hood. Off the bat, iEarn pools aggregate a suite of rewards and fees including (but not limited to in the future):

  • yearn.finance interest
  • COMP
  • CRV
  • curve.fi/y trading fees
  • ytrade.finance leverage fees and liquidation bonuses
  • yswap.exchange system fees
  • iliquidate.finance liquidation bonuses
  • system dust (unassigned interest or fees)

All of these fees are collected on a regular basis and routed to a Vault which normalizes all the above-mentioned income to aDAI. Once in aDAI, YFI holders can claim a pro-rata share of that reward pool directly from the contract address by burning YFI tokens.

iEarn has stated that they will be releasing an interface for the burning and redemption of these fees in the coming weeks. Last but not least, iEarn has also shipped a staking dashboard to make it easy for users to stake and unstake their position across any of iEarn’s various liquidity pools.

Closing Thoughts

Underpinning this whole ecosystem is an incredibly meta ecosystem at play. While you need 1000 IQ DeFi knowledge to get involved, those who are savvy enough are sure to reap the rewards of the most organic, strongly-designed DeFi token to date.

As aggregate liquidity continues to heat up, we’ll keep reminding users that it’s a good time to be a yield farmer – so long as you keep in mind that there’s a lot of inherent risks that come with it.

Until then, be sure to keep up with iEarn on Twitter.

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The post iEarn Releases YFI Governance Token with Liquidity Mining appeared first on DeFi Rate.

Decentralized Gaming Platform BetProtocol Integrates Band Protocol To Launch Esports & Sports…

https://medium.com/bandprotocol/decentralized-gaming-platform-betprotocol-integrates-band-protocol-to-launch-esports-sports-9212ffe922ea?source=rss------defi-5

BetProtocol, one of the leading betting protocols providing technology for over 12+ operators, has strategically partnered and integrated…

Continue reading on Band Protocol »

Rarible Launches NFT Governance Token With RARI Liquidity Mining

https://defirate.com/rarible-rari-token/

Rarible – a leading NFT exchange – has announced details for a native governance token, RARI.

As one of the first to tokenize governance rights in the NFT sector, Rarible is rolling out a unique marketplace liquidity mining scheme to reward its collectors for usage.

“Over half of RARI’s total supply is reserved for sellers and buyers on Rarible marketplace, who will receive RARI through weekly distribution according to weekly purchases and sales volumes.”

This unique integration of DeFi’s hottest trend integrated into a more consumer-friendly fashion put Rarible on our radar as they look to introduce a suite of well designed incentives to spur marketplace growth. Best of all, RARI is not being sold in an Initial DEX Offering, a strong signal that the company has all the best intentions in mind for the rollout of their new token.

What’s to Know?

Rarible is set to issue 25,000,000 RARI in total, starting at an initial value of $0.34/token. This valuation comes on the back of the marketplaces $2.5M preseed valuation and is set to issue 75,000 RARI or roughly $25,500 in rewards each week through marketplace mining. Here’s a look at how the supply breaks down.

Just as with Compound‘s even split to lenders and borowers, Rarible will allocate the 75,000 RARI weekly reward pool evenly between buyers and sellers. Rarible has made it clear that the marketplace liquidity mining process can be amended as necessary, and this in and of itself is one of the key areas where RARI governance is likely to come into play.

Over time, Rarible will look to transition to a DAO for the decentralized governance of future protocol decisions. In the meantime, RARI will act as soft signalling for important protocol decisions like fees, features and reserve pool allocation. Rarible has hinted they will be looking into something like Aragon Court for mediation, suggesting that the DAO will likely be Aragon-based.

RARI Airdrop

To kickstart this initiative, Rarible will be hosting two airdrops to reward both new and existing users for their support of the platform. Here’s who it’s set to shape up:

All in all, this airdrop dynamic sets a fascinating retroactive precedent where those who were most active prior to the airdrop being announced receive the most upside. Plus, for any NFT owners who happened to come into possession of a Rarible NFT, there might be an unexpected residual benefit stemming as a result.

Governance Tokens Heat Up

After a multi-year drought in which utility tokens were laughed out of the building, it’s truly amazing to see all the ways in which different crypto-based products are leveraging governance tokens to highlight the best and brightest aspects of web 3 technology.

As someone who has only used Rarible a very select few amount of times, this new incentive program immediately makes me want to dive deeper – a sure signal that many others are likely to do the same.

While it’s unclear if NFT-based governance will be as hot a topic as DeFi governance, there’s no denying the two are closely intertwined. With this, we’ll be sure to keep a close eye on the project as the distribution pans out of the coming months.

To stay up with Rarible, follow them on Twitter or check out the marketplace today!

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Aave Raises $3M for Aavenomics Governance Migration

https://defirate.com/aave-governance-raise/

Aave – a sector-leading lending protocol – has closed a $3M round on the back of LEND tokens in lieu of their upcoming Aavenomics upgrade.

Positioning themselves as a protocol for money market creation, Aave’s latest round saw $3M worth of contributions from Three Arrows Capital and Framework Ventures when LEND was $0.10 per token. Since then, LEND has soared to over $0.25 per token ahead of an Aavenomics governance upgrade in which LEND will migrate to AAVE with a suite of new protocol incentives.

This comes in tandem with other reputable funds like ParaFi and Spencer Noon’s DTC Capital, both of which have made it public that they also hold significant positions in LEND. DeFi Rate has also received intel that many other prominent DeFi funds have been accumulating positions in LEND, giving good credence to the DeFi token‘s parabolic growth in recent weeks.

Aavenomics Teaser

The raise foreshadows the launch of Aavenomics – a governance upgrade in which the migration to AAVE will introduce new protocol incentives through staking and yield farming. In short, users will stake AAVE as insurance against protocol deficits in return for both AAVE rewards and the vast majority of protocol fees. The staking module is expected to offer both vanilla AAVE staking in tandem with an 80/20 AAVE/WETH Balancer pool. This gives flexibility for those looking to stake with just AAVE while incentivizing those to provide market liquidity to Balancer in exchange for BAL rewards and swap fees.

AAVE staking comes in tandem with yield farming rewarding from protocol usage, similar to COMP and BAL liquidity mining schemas which have driven exponential growth in recent weeks. While the details have yet to be released, we expect users to earn AAVE rewards from lending and borrowing any of Aave’s 20+ supported assets along with special liquidity incentives similar to Synthetix‘s LP rewards.

Distributed Governance

Outside of vast protocol incentives, AAVE governance will distribute key decision making to tokenholders though onchain voting. Using Aave Improvement Proposals (AIPs), AAVE holders will dictate key protocol, market and risk policies for both Aave and different money markets like the Uniswap Money Market. Aave has vocalized that its governance process is meant to stimulate large amounts of discussion before going to an onchain vote, contrary to what we’ve seen so far with Compound and it’s 48-hour window voting periods.

These upgrades will be publicized in a formal Aavenomics governance paper in the next two weeks, kicking off a countdown to Genesis Governance in which LEND tokenholders will be able to vote on the start of AAVE migration in tandem with the proposed incentive allocations mentioned above.

Credit Delegation

Last week, we covered Aave’s proposal for Credit Delegation, essentially letting any two parties enter into undercollateralized lending agreements to use a counterparties capital as collateral to draw a line of credit with aTokens. While the program is set to be largely limited to OTC trading desks and exchanges to start, Credit Delegation is another example of Aave’s continuous innovation in the vibrant DeFi sector.

Aave Continues to Shine

As if it wasn’t clear enough, Aave has solidified itself as a force to be reckoned with in the great crypto landscape. With top firms publicizing their token holdings in tandem with the upcoming Aavenomics, it’s clear that the protocol for money market creation has a very bright future lined up for the coming months.

It’ll be interesting to see how the lending wars pan out, with protocols like Aave, Compound and bZx fighting for TVL in a rapidly growing sector full of strong incentives.

If one thing is for sure, DeFi Rate plans to play a big role in Aave governance and will be introducing a formal protocol bid upon the launch of Genesis Governance in a few week’s time.

To stay up with Aave, be sure to follow them on Twitter or join the conversation on Discord.

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KyberDAO: first proposal put to the vote

https://en.cryptonomist.ch/2020/07/14/kyberdao-first-proposal/

Today, July 14th, 2020, at 7:00 AM UTC, the first proposal on KyberDAO was put to the vote

On July 7th the update of the Katalyst protocol was successfully launched, and over 50 million KNC tokens were locked during the first week to take part in the vote. 

Katalyst is an important technical update to meet the liquidity needs of the DeFi space, and KyberDAO serves to decentralize the governance of Kyber Network, align incentives among interested parties and empower the community with the possibility to directly contribute to the development of the network. 

During the first 24 hours of staking, more than 10 million KNC tokens were locked, followed by an additional 25 million KNC from 3,100 unique addresses, representing more than 12% of the circulating supply. 

After the launch of staking on Binance, more than 50 million KNC were staked, equal to 20% of the circulating supply. 

KNC holders who staked their tokens in the Genesis Epoch (Epoch 0) can now vote on KyberDAO’s first Epoch 1 proposal to decide how network fees will be allocated in the next Epoch, and in particular what percentage is allocated to Burns, Voting Rewards, or Reserve Rebates. 

An epoch lasts 2 weeks. 

In this first vote, voters will be given 4 options, one of which would maintain the status quo of 5% to Burns, 65% to Voting Rewards, and 30% to Reserve Rebates, while the other 3 options would make changes to it. 

KNC holders who are unable to vote can still earn rewards by delegating their tokens and voting power to KyberDAO pool operators, such as xTokens. 

Other operators will be enabled in the coming weeks, such as Staked.US, Stake Capital, StakeWith.Us, RockX and Hyperblocks, while crypto wallets such as Trust, Enjin, Status, Coinbase mobile, imToken, Alpha Wallet and others with built-in dApp browsers can already be used to access the Kyber.org web app.

Kyber Network claims to be the leading liquidity provider in the DeFi space, with over 100 dApps integrated with its open source and permissionless protocol. 

The KNC token debuted in the crypto markets in September 2017 at around $1.8, while now, after an all-time high of over $5.7 in early 2018 and an all-time low of $0.1 at the end of 2018, it oscillates around $1.5. 

Since the beginning of 2020, however, its value has grown by over 700%, particularly with two spikes in early June and early July. 

The post KyberDAO: first proposal put to the vote appeared first on The Cryptonomist.