GM Digest #370 — SOL Restaking
Gm with Valuable Alphas / Insights — Make Sure to DYOR. All of This is Not Financial Advice. Ape at Your Own Peril
Jito Restaking
• The @jito_sol Foundation introduces Jito Restaking, a hybrid staking, restaking, and LRT platform with two main components: the Vault Program and the Restaking Program
• The Vault Program handles Liquid Restaking Tokens (LRTs) and customizable delegation, while the Restaking Program manages AVS’s, operators, and reward distribution
• Jito Restaking provides a scalable infrastructure for securing onchain and offchain activities with multi-asset staking and nuanced slashing conditions
• It enables diverse staking strategies, dual-asset restaking, and liquid restaking tokens
AAVEnomics Update
• New @aave proposal seeks feedback on leveraging the Safety Module Umbrella update to create a clear path and roadmap for the Aave protocol's fee switch, termed "AAVEnomics”. It builds on the BGD Aave Safety Module - Umbrella 29 proposal
• The proposal aims to further mature the protocol by redistributing excess revenue to key ecosystem actors, creating new synergies
• The Safety Module, a crucial defense line for the protocol, is inefficient in its current state, relying on secondary liquidity to liquidate assets during shortfall events. The Umbrella update proposes segregating coverage and eliminating reliance on secondary liquidity, focusing on slippage-free debt burn coverage
• An immediate step is to segregate StkGHO and StkAAVE Safety Module coverages, improving efficiency and protecting the GHO stablecoin. The proposal suggests using GHO in the Safety Module to clear excess debt by burning it, maintaining the GHO peg
• The proposal also introduces the idea of ending the "seize and sell" doctrine, which is inefficient and creates price pressure on AAVE. Instead, StkAAVE will evolve into a staking role, collecting rewards from protocol revenue. The Aave DAO will manage secondary liquidity through a "Buy & Distribute" program, funded by excess revenue
• The introduction of "anti-GHO" tokens will replace the current GHO borrow rate discount, aligning AAVE stakers with GHO borrowers more efficiently. Anti-GHO tokens, non-transferable ERC-20 tokens, can be used to repay GHO debt or be deposited in the GHO Safety Module
• The introduction of "anti-GHO" tokens will replace the current GHO borrow rate discount, aligning AAVE stakers with GHO borrowers more efficiently. Anti-GHO tokens, non-transferable ERC-20 tokens, can be used to repay GHO debt or be deposited in the GHO Safety Module
• The Aave protocol aims to activate the "Buy & Distribute" program, increasing protocol sustainability by funding AAVE token purchases and distributing them to the ecosystem reserve. This new system introduces a constant demand for AAVE on secondary markets
• Lastly, the proposal envisions the potential for Aave DAO to monetize its coverage beyond the Aave protocol, exploring third-party protocols and networks for new revenue opportunities
Tokemak Autopilot
• @TokemakXYZ’s Autopilot introduces automated liquidity (autoLP) through "Autopools" to simplify this process
• These Autopools use the ERC-4626 standard, allowing assets to be deployed and rebalanced automatically across different pools and DEXs, optimizing returns and reducing costs
• Users deposit assets into Autopools and receive a receipt token, such as autoETH. Post-launch, permissionless Autopool creation will allow users to customize risk profiles and issue corresponding tokens
Introducing Gimme
• @yearnfi introduced Gimme, the easiest way to earn the best risk adjusted yields in DeFi powered by Yearn Vaults and launching on @0xPolygon
• Users will just have to go to the Gimme website and will be able to see the yields provided on major stablecoins and tokens and deposit that token. The protocol also allow users to Zap their spot tokens into any other deposit token further simplifying the UX of the protocol
Karak x Maker
• @Karak_Network announced native staking functionality for @MakerDAO’s MKR
• In Phase 1, Karak will be launching native staking functionality for $MKR enabling $MKR holders to deposit their tokens into Karak and earn Karak XP. Soon the $MKR staked on Karak will be used to secure and decentralise a wide range of DSSs allowing holders to earn additional rewards on their $MKR tokens. This unique concept allows holders to leverage an external consensus mechanism bootstrapped by Karak to earn restaking rewards on their tokens
• For Phase 2, Karak will also be building restaking for NewGovToken Activation which will also help power, secure, and decentralize novel DSSs built on Karak allowing Karak to stack rewards for the Maker community where they can earn Restaking rewards on top of the native Activation rewards together. $MKR restaking will also auto upgrade to the NewGovToken when it launches
Misc News
• @safe is now live on @LineaBuild
• @CyversAlerts announced that @monoswapio on Blast has been exploited for an estimate loss of $1.3m
*Reminder to Size Your Entry for Degen Plays and Take Your Principal Out (Take Profits) Whenever You Hit Your Target*