Monat: März 2022

The MakerDAO community leader ‚monet-supply‘ on March 14 made a proposal on the MakerDAO forum outlining an alternate token economic mechanism. The proposal seeks to introduce a new token stkMKR to replace the current governance token, MKR.

If the proposal goes through, it shall present a tokenomics shift in MakerDAO.

Immediately the proposal was made, the community erupted and very many responses were made and most of them were in support of the proposal.

Following the development, the proposal will need to be passed as a MIP (Maker Improvement Proposal) for it to be voted by the MKR holders, a process that takes two weeks.

What the proposal seeks to address

The proposal seeks to address several issues affecting the current MakerDAO tokenomics that use the “buyback and burn” mechanism. Monet-supply said that the proposal shall address issues like lack of targeted incentives since all the capital is returned to the MKR holder through the buyback and burn mechanism.

Monet also says that the current system has limited deterrence against governance attacks especially when it comes to voting manipulation.

⚒️ @MonetSupply presented an idea of an alternative token economic mechanism that could supplement the current MKR buyback value accrual system.

stkMKR? Read the entire thread:https://t.co/1hEORZTblu

— Maker (@MakerDAO) March 14, 2022

The proposed solution

Besides an overhaul of the tockenomics mechanism, the ‚monet-supply‘ proposal proposes introducing a new token stkMKR to replace the MKR as the governance token of the MakerDAO.

According to the proposal, the stkMKR token shall act as a bonding or staking token and shall be issued to those who deposit MKR for governance purposes only.

A section of the proposal reads:

“stkMKR will be non-transferable and represents MKR staked in governance. Staked tokenholders will receive a share of MKR tokens purchased through surplus auctions, so stkMKR will be backed by an increasing amount of MKR over time.”

The post MakerDAO community leader proposes the governance token, MKR, to be replaced appeared first on Coin Journal.

Aave V3 sees the leading DeFi lender expand beyond Avalanche, Ethereum, and Polygon.

Aave, one of the leading decentralized finance (DeFi) platforms in the market, has announced V3 of its protocol.

The third version sees Aave expand its liquidity pool to six other blockchains, the platform said in a release.

As per the announcement, V3 going live allows access to the lending protocol’s features to Avalanche, Polygon, Fantom, Optimism, Harmony and Arbitrium. Other than these six blockchains, Aave is set to deploy the latest iteration of its protocol to the Ethereum mainnet.

„Aave V3 is the result of continuous iteration resulting from community involvement and ecosystem growth,“ said Stani Kulechov, founder and CEO of Aave Companies. 

On what next for the DeFi protocol, Kulechov added:

“V3 brings new and existing Aave community members to participate in the Aave DAO, which will continue to shape the future of DeFi.”

What’s new with Aave V3?

According to Aave, “V3 brings groundbreaking new features that span from increased capital efficiency to enhanced decentralisation.”

1/ Aave V3 is here! 👻  
The most powerful version of the Aave Protocol to date, V3 brings groundbreaking new features than span from increased capital efficiency to enhanced decentralization. Read what’s new in V3 in the thread below👇or visit https://t.co/H3jTyKRqNs to dive in! pic.twitter.com/LXzn7660nA

— Aave (@AaveAave) March 16, 2022

Among the new features, Aave users will benefit from enhanced cross-chain asset flow and a 20-25% reduction in transaction costs via gas optimisation. An “isolation mode” will enhance security, while high efficiency will unlock the user’s ability to access even higher borrowing.

Compatibility with different blockchains means DeFi investors on the protocol can seamlessly deposit and borrow assets from one network to another.

For example, a user could deposit on the Polygon chain and proceed to borrow on the Avalanche network. If they wish, they could repay the loan on another blockchain, say Ethereum.

“Along with the launch of V3, there’s also a fully redesigned & refreshed Aave app on IPFS where users will be able to access simplified transaction flows, enjoy faster load times, & gain enhanced visibility into their holdings,” the platform said in the announcement.

Users can also access Aave V3 via multiple wallet integrations, including Instadapp, 1inch, DeFiSaver and ParaSwap.

The post Aave launches V3 of its DeFi protocol, expands to six blockchains appeared first on Coin Journal.