DeFi Collective community call

New contributors & Ant of the month

New contributors onboarded:

• Spicypiz for on-chain analytics
• Stengarl for content creation and communications
• Sagaciousyves for protocol reviews and in-depth technical dimensions

The first anniversary of the collective is approaching in a month. Various activities are planned for this milestone like the first wave of protocol reviews.

New ant of the month

ABertoG is the new Ant of the month. She alerted the team about the availability of the "DeFi Collective" ENS domain (an unknown address was holding it, but the ENS expired). We were able to snap the deficollective.eth ENS, now resolving to the main treasury

The Ant of the Month status involves a delegation of 10,000 USDC in Pooltogether. The delegate does not own the 10,000 USDC but gets all lottery winnings and any extra incentives. On average, an Ant of the month receives $150-$200/month.

The team wants to highlight that valuable contributions, not just content creation, can come in various forms.

Stengarl

Joined the DeFi collective at the beginning, and onboarded as a contributor thanks to content creation.

Initially focused on live recaps and news sharing on Discord. Now, the goal is to improve communication and cooperation between supported protocols, so we can create a "genuine DeFi alliance" where supported protocols can build with each other.

Spicypiz

Initially hired for content strategy, Spicypiz is now a data analyst as he demonstrated lots of skills with Dune. He's now responsible for building dashboards for the collective.

Impact dashboard features:

• Historical vote tracking
• TVL impact analysis
• Volume tracking
• Project-specific zoom views

Impact dashboards are available through the "Impact" section of the DeFi Collective website.

The Collective's dashboards (10:00)

There are two sets of dashboards:

1. Public transparency dashboards, focusing on voting activity with liquidity-driving positions (e.g., Velo/Aerodrome)
2. Internal revenue tracking dashboards, which track revenues from fees, bribes, and liquidity-providing positions. This data is processed and contextualized in monthly reports

This automation is a significant time-saver compared to previous manual processes. That said, we are still in the process of validating automated data against manual inputs.

Even internal tools are made publicly accessible, showing the Collective's commitment to transparency in their operations.

The collective encourages feedback and suggestions for dashboard improvements

0xPossum enters the chat (18:50)

0xPossum is building Possum Labs, developing immutable, ownerless protocols with positive feedback loops for all participants (Positive sum = Possum)

Possum's first product is Portals, which allows the staking of various tokens (ETH, stables...) to get future yields.

Possum portals is a future yield protocol where you can stake tokens or stablecoins to get yields in advance Future yield protocols such as Pendle or Spectra use an AMM (Automated Market Maker) to make future yields tangible.

Meanwhile, Possum Portals adopts a timelock logic: the longer we lock the tokens, the more we get immediate yields.

Collective supported Possum with liquidity for PSM token, as liquidity is crucial for the Portals product

Introduction of Possum Core

Possum Core is a new on-chain governance system. Possum Core features:

• Users can stake PSM tokens to earn Core Fragments (CF).
• Stakers choose a commitment duration (up to 1 year), with longer periods yielding higher CF accrual rates (starting at 12% APR up to 72% APR).
• Users can withdraw their stake anytime but may forfeit proportional rewards if withdrawn during the commitment period.
• Unlike veToken systems, users can continue staking beyond the commitment period without needing to prolong a lock, maintaining their CF accrual rate.
• Core V1 is preloaded with 400M PSM amount to support generous staking rewards without long-term economic strain. Core V2 is anticipated to address scalability and sustainability.

Possum Core has been live since last Friday, and TDC is whitelisted on the core!

Why does Possum Core exist?

Current systems often create a "pseudo-democracy" or oligarchic voting (only major token holders participating) leading to uneven distribution of power.

Furthermore, the Collective noticed a lack of innovation in governance models. The thing is, we need upgrades because there are misaligned incentives, especially in Venture Capital (VC) Funded projects where VCs often prefer to maintain control.

Possum Core adopts a whitelist system for recipient addresses (to be decentralized in future iterations), so it allows individual decision-making on token distribution and doesn't need consensus among all stakers for fund allocation.

The Collective is soon 1 year old (27:15)

We are one month away from the first anniversary of the Collective. The team plans to make it a significant event:

• General article reflecting on the first year of activity and plans
• First batch of protocol reviews
• Participation in podcasts and media events

The collective aims to raise the profile of the collective through the anniversary event and encourages community support in relaying content and messages.

The Collective is nearing completion of the initial set of protocol reviews. There will be a new website for protocol reviews inspired by L2BEAT to provide a color-based overview of projects' decentralization status (green, yellow, red) according to our guidelines.

Speaking of protocol guidelines, there will be a 2nd version to be released, at the same time as protocol reviews.

So people would access detailed information on specific protocols, and identify decentralization issues in each protocol.

Florian mentions working on the background aspects of the Collective and reviewing legal aspects of the protocol guidelines.

BOLD strategy for Liquity V2 (33:00)

About the protocol

Liquity V2 is scheduled for November of the current year. Here are the improvements:

• Acceptance of LSD tokens (e.g. rETH and stETH) as collateral
• Switch to an interest rate-based model, where borrowers can define their interest rates
• Low interest rates increase the risk of being first in line for redemptions

75% of interests paid by users will be distributed to stability pool depositors, and the remaining 25% to the "Protocol Incentivized Liquidity (PIL)" module.

This PIL module will be controlled by LQTY stakers. The longer LQTY are staked, the greater their voting power and potential rewards (including bribes). Users can unstake at any time but will lose the accumulated "extra" voting power associated with their stake duration.

So LQTY stakers will allocate 25% of interest rates to any address contributing to BOLD growth. For example, we can have liquidity incentivization like BOLD/USDC on Uniswap v4, or more complex initiatives involving protocols or multisigs for active fund usage.

DeFi Collective as a liquidity initiative

The Collective plans to become a liquidity initiative for BOLD, developing le stablecoin on Optimism and Base networks.

Half of the received BOLD will be used as voting incentives on Velo/Aerodrome, and the other half will be matched with stablecoins from the treasury to supply liquidity pools

All this will be combined with the DeFi Collective's voting power:

• 6 million veVELO
• 400,000 veAERO

That would be equivalent to $8,000 worth of emission incentives weekly.

The first round of voting for the initiative will be shortly after the Liquity V2 launch in November.

An article will be released before the end of the month to detail the initiative and gather community feedback, hoping to inspire other projects to share their plans similarly.

Details about the BOLD strategy (38:40)

The primary focus is on Optimism and Base, as these networks were chosen due to having the most capacity and potential impact.

Arbitrum is not initially included due to limited liquidity driving capabilities, despite having a decent Ramses position.

There's a possibility of a second initiative for Mainnet bonds in the future.

Previous experience with LUSD liquidity support on networks like Linea and Mantle was not fruitful long-term.

Liquidity initiative submission process

• Anyone can submit a liquidity initiative on BOLD
• Requires burning 500 BOLD as an anti-spam measure
• Veto system in place to prevent misuse

Detailed reports will be provided on activities and usage of received BOLD stablecoins.