If you missed a few governance things of the past few weeks, this is for you.Fellow farmers, unite! We have been collectively turning these fertile lands (not your sister, don't worry) into wastelands. Coming as a swarm in full force and annihilating the entire supply of crops within days, Ethereum lands start to feel the effects. But fear no more, we must collectively now decide on how to keep the crops growing while buying a house every second week...
This isn't really a joke. And it's not DeFI policing either! It's governance, ser.
So we have yEarn making proposals in MakerDAO, Aave supporting yEarn, then you try to vote for a gauge increase in renBTC pool by asking your CRV friends to pamp your REN bags... super fun, right? The combination of these things makes for powerful play controlling hundreds of millions of dollars.
You see, people chase yields, always and forever. When you increase the yield on sBTC CRV gauge to triple digits, it automatically makes for a good case to get some sBTC and put it into the pool. That immediately influences the fees on swaps, the volumes, and the interest for sBTC itself. Even centralized platforms like FTX and NEXO jump in. Now go a bit further and look at YAM. So you deposit COMP SNX and other governance coins. With high yields, you end up increasing the demand for these governance coins. That boosts the DeFi index for traders, borrowing rates for Compound and Aave, and so on. The indirect effect of semi-ponzis helping more legitimate projects: twitter.com/Rewkang/status/1296737576166944768
Here are some cool snippets:
-> Yearn and YAM deciding to allocate some of the reserves to Gitcoin open-source projects: twitter.com/bantg/status/1298591059606474753.
-> Curve DAO started and was immediately seeing the boost in Compound APY rewards. The Michael wanted to vote as a founder and fat-fingered a huge governance part… but holders came together and reduced his vote strength.
-> Since veCRV has VoteLock against gaming it via lending-borrowing governance tokens, Y contract had to be first approved to vote for the boost in CRV rewards, meaning for about a week longer Y is waiting to vote for the boost: twitter.com/iearnfinance/status/1298858608533397504. But as we see, the gauges are somewhat similar to how the initial weight started.
-> Credit Delegation launched by Aave, and then immediately proposed by Aave to include it in yVaults to increase APY: twitter.com/iearnfinance/status/1298303842296135680
-> Like many other protocols, farming issuance long-term neither captures more TVL nor is a good idea for price performance. Compound is trying to find an answer to this question: twitter.com/compoundfinance/status/1298720987144286209
-> SNX’s DAO, Yearn’s YCombinator idea, MetaCartel Ventures and Moloch DAO being more active, and so on. A lot of cool initiatives! We will talk about them later.
PS: this in now way relates to scam DAOs your paid chat admins are launching. Those are not experiments but are blatant moneygrabs. Cancelling such people is a must.