August 17, 2022: $MAI to Mainnet ☯️ 🧙♂️
Governance Action on $MagicCRV, $BTRFLY, $MAI, $DOLA and $arUSD
Browsing DeFi governance forums is like seeing tomorrow’s news today. Today we recap recent DAO action on $MagicCRV, $MAI, $DOLA, $arUSD and $BTRFLY
$MagicCRV
Over the past year a spate of protocols began receiving approval to lock $CRV via smart contract. In a prior article we noted many of these whitelists were merely seeking authorization for multisigs to participate in governance, so we shouldn’t expect these to rock the landscape.
Among the more interesting applications being built atop $CRV is Abracadabra’s proposed $MagicCRV. The full proposal was discussed in May, with no subsequent updates until a new governance forum post dropped on Monday.
The community is debating locking a third of their 10MM $CRV tokens for max lock. This would have some spillover effects across the broader flywheel. For one, they’re seeking to discontinue their $SPELL bribes, instead using their voting power to directly vote on gauges.
“Instead of relying on $SPELL bribes to attract liquidity, Abracadabra will be able to use its newfound voting power to directly vote on gauges.”
The proposal explicitly describes this as the first step towards the launch of $MagicCRV. Let’s see where the big brains take this next…
$MAI on Mainnet
It’s been over a year since we covered Qi DAO, and the Old Master themed protocol has advanced ages in this time.
Qi Dao has built a sprawling empire among various sidechains but avoided mainnet to date. They’ve accumulated a healthy $82MM TVL across 10 chains, most notably Polygon and Fantom. This TVL supports $MAI, a token soft-pegged to the dollar and serving as over-collateralized debt positions backed by a diverse set of assets. Notably, this basket of 60 assets excludes riskier assets like $USDC.
$MAI’s cross-chain presence is evolving into a useful method of moving value among these diverse chains. Utilizing Multichain, cBridge, and Allbridge, the team boasts the capability of moving $MAI seamlessly among 20 chains.
You’ll note this list of chains overlaps heavily with everywhere that Curve has a presence. This is no accident — the team has integrated Curve into its architecture, with a healthy Curve pool on nearly every sidechain where their presences coincide.
Now that they’ve honed their craft in the minor leagues, they’re ready to join the big leagues. A $MAI pool recently launched onto mainnet and concurrently hit the governance forum in search of $CRV rewards.
Given how well they’ve honed their craft on so many chains, we’re likely to see Qi Dao become a strong addition to the DeFi ecosystem on Ethereum. Hopefully they’ll help us all stack up some Wu Wei.
Some more background:
$DOLA
A proposal to raise the A parameter for the $DOLA pool has turned contentious. In terms of crypto dramas, the hysterics hit maybe a 2-3 on a scale of 10, but even minor skirmishes in crypto are more fun than anything else.
Inverse Finance’s $DOLA is second only to $USDD in terms of Rewards tAPR for USD pools, making it a tempting choice for dollar yield.
Is it safe? The risk/reward tradeoff was one of many points of contention in the forum.
The risk assessment team has been raising some red flags on this move, singling out the protocol’s high bad debt ratio, a consequence of two price oracle incidents in Q2. @Cryptoharry replied with details on how the team plans to stabilize this:
We’re executing weekly repayments and have earmarked future revenue (e.g. doing our own liquidations) from future products for this purpose. Currently, the majority of these repayments are funded by selling bonds (via Olympus Pro). See our bond stats here.
It’s an interesting discussion, thanks in part to the loads of in-depth analyses presented. Please do your civic duty by reading through the discussion and offering your thoughts!
Arable
Another token making the leap from Avalanche to mainnet, Arable Protocol bills itself as “synthetic multi-chain trading and synthetic farming.”
They’re presently seeking a mainnet gauge for their over-collateralized $arUSD stablecoin.
Initial reaction from the forum is that the request is promising but premature.
Being early is by no means a knock against this interesting protocol. It’s an innovative concept and we’re eager to see how the Synthetic Farming concept evolves.
BTRFLY v2
In a presumably uncontroversial move, a proposal dropped to migrate the Curve v2 gauge from Redacted’s v1 $BTRFLY to v2.
It’s always incredible to see the progress from the community, which is also behind so much activity at Pirex.
Disclaimers! Author has no stake in any mentioned tokens except $CRV