GM, this is your Daily Bolt briefing.
In today’s edition, we’re bringing you up to speed on two important integrations and acquisitions in DeFi:
Gravita Protocol, a liquity fork focused on LSTs, and their integration with Bunni Protocol.
MakerDAO’s Endgame Plan involving sub-DAO's and acquisitions of projects like Spark Protocol…
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1/ Gravita - Developments from Gravita and Bunni
Preview: In this Gravita Protocol’s Twitter Spaces, Rhett and Dakotah discuss the partnership between Bunni Protocol and Gravita and the latest developments from both projects. Click here to listen to the full episode (56 mins).
Read our Note (6 mins) and save 50 mins.
Here are some key takeaways:
Bunni Protocol is a liquidity engine for Uniswap.
Rhett says that Gravita Protocol is a fork of Liquity, an ultra-low-cost borrowing platform.
He says that users can bring assets like ETH, and mint their debt token, GRAI.
He highlights the importance of liquidity for GRAI token and says that the partnership with Bunni helps to improve liquidity in this regard.
He talks about the Bunni governance process to get a gauge approved and implemented for the pool. He says that Gravita recently went live with their first Bunni gauge.
He says that the partnership allows Gravita to create a GRAI-USDC pool, which is beneficial for Gravita. The efficiency of Bunni’s veLIT emission system helps with incentives.
Dakotah says that oLIT is a unique feature of the Bunni protocol. It's a token that can be converted into the protocol's native token, LIT, at a discount.
Rhett says that this concept is beneficial for the Bunni Protocol and its users as it provides a way for users to acquire LIT at a lower cost, and it allows the protocol to grow its treasury for future deployment.
Dakotah says that future plans include expanding to wherever Uniswap v3 is available and considering building on top of other DEXs.
He says that the team is working on cross-chain gauges, which would allow voting to occur on the mainnet while providing oLIT incentives on layer-2 solutions.
2/ 0xResearch - Maker's Expansion to Lending Markets with Spark Protocol
Preview: Matt, Dan, Effort Capital and Sam discuss several topics about the markets, Spark Protocol and DSR. (DAI Saving Rate) Click here to listen to the full episode (72 mins).
Read our Note (8 mins) and save 64 mins.
Here are some key takeaways:
Matt talks about the issue faced by Arbitrum, where it was temporarily unable to post transactions to the mainnet. He refers to this issue as degraded performance rather than a complete shutdown.
Matt and Effort agree that social consensus plays a crucial role in assessing the performance of blockchain protocols, even though it may sometimes be seen as a convenient answer. They recognize that blockchain is ultimately a technical solution to facilitate agreement within a community.
Sam explains that MakerDAO is transitioning from using Peg Stability Modules (PSMs) to Automated Market Makers (AMMs) for liquidity provisioning.
Sam talks about Spark's plans to expand to other chains and follow user trends. The strategy involves using a direct deposit module to move DAI across layer-2's native bridge and deposit it into the Spark.
Sam says that Spark collaborates with protocols like Element and Sense to introduce fixed-rate lending.
He talks about the importance of fixed-rate lending in traditional finance and its potential in DeFi. He says that fixed-rate lending can help bootstrap a yield curve in DeFi.
Sam says that Spark Protocol is a project that was built off an Aave V3 fork. It was chosen due to Aave's robust and battle-hardened codebase that already had a significant network effect and numerous integrations.
Sam says that the acquisition of Spark by MakerDAO is a unique event in the DeFi space. It's not a typical acquisition, but rather a merger where Spark will become a part of MakerDAO's ecosystem.
Sam says that the end game for MakerDAO involves the creation of sub-DAOs that will have the autonomy to adopt their own brands and products. He says that the end game for MakerDAO would involve smaller teams within many sub-DAOs.
If you read these 2 Notes on Revelo Intel you would have saved: 1 hour and 21 minutes!
Bear market is when you learn... Bull market is when you prosper
Want to know the ins and outs of crypto from a true insider?
Launchy is a builder-investor focused newsletter where they cover the latest web3 products, strategies, and trends.
They also provide their personal takes as a builder/investor on current news, regulations, deals - all in just a 5 minute read.
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