🟣 Truce on the horizon

Compound and Humpy reach a truce, SEC to amend Binance complain and other news

Author

Carolina
July 30, 2024

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Welcome back to 0xResearch. Here's what we’ve got for you today:

  • Compound and Humpy reach a truce

  • Rocket Pool potential token revamp

  • SEC to amend Binance complain 

  • Blackbird launches Blackbird Pay

Compound and the Humpy whale have reached a truce after a contentious governance battle. The dispute began on Sunday when Proposal 289 was approved, allocating $24M from Compound’s treasury to a yield-bearing protocol led by The Golden Boys, as reported in yesterday’s newsletter. This move was perceived by some community members as a governance attack, with accusations of vote manipulation due to a small group purchasing large amounts of COMP tokens to influence the vote. Now, a new staking product has been proposed to align the interests of all parties involved, leading to the withdrawal of Proposal 289. The new product aims to enhance COMP's utility by distributing 30% of annual reserves to stakers. Although this proposal requires a governance vote by the Compound DAO for implementation, it has already received endorsements from Humpy and other Compound delegates.

The SEC submitted a status report on Monday indicating its intent to amend the complaint against Binance. The original complaint categorized tokens such as SOL, ATOM, and MATIC as securities, and this amendment could potentially impact the necessity for a court ruling on their status as securities.

Blackbird Labs, the company behind the web3 restaurant app Blackbird, has launched a new payments platform called Blackbird Pay. This new payment and check settlement network is specifically designed for restaurants and utilizes Blackbird Flynet, their proprietary blockchain technology. This latest venture follows their successful $24M funding round in October, led by Andreessen Horowitz.

Rocket Pool has recently launched a sentiment poll on their governance forum to assess interest in making significant changes to its token, RPL. Currently the second-largest protocol in Ethereum’s liquid staking, Rocket Pool faces concerns from its community that RPL is not helping the protocol be competitive enough. One major issue is the protocol's ability to meet user demand for rETH, which is constrained by the number of node operators. This number has not been increasing lately and this could be due to the requirement for node operators to acquire RPL as a bond. The proposed revamp suggests removing the mandatory RPL bond, allowing only those who still choose to hold RPL to vote on governance matters.

– Carolina (@GoldDefi)

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Who let the dogs out? The owner of Kabosu, the revered dog behind DOGE, that’s who. When she tweeted her new Shiba Inu dog Neiro two days ago, it opened the floodgates to hundreds of Neiro-themed tokens. The first Neiro token to deploy ran up to a high of $56 million market cap. A second Neiro token deployed an hour later burst to an even higher market cap of $129 million.

Both communities are now embroiled in a fight for who the “real” Neiro is, even if the actual owner has condemned the slew of tokens herself. Both tokens have cratered: the second is currently sitting at a $41 million market cap while the first has fallen to $5.9 million. We’ll never agree who the “real” token is, but that’s okay. Welcome to a permissionless market.

— Donovan Choy (X: @donovanchoy | Farcaster: @donovan)

Two proposals entered the Aave Governance forum this week, outlining several upgrades to the protocol and revised tokenomics. The Umbrella proposal redesigns the Aave Safety Module to implement aTokens as the slashing asset, eliminating the price impact and execution risks associated with selling AAVE to cover bad debts. The AAVEnomics update introduces a “Buy-and-Distribute” program, where net excess revenues (operating profits) will be used to buy AAVE on the secondary market and return these tokens to stkAAVE holders.

Solana Mobile is a highly ambitious foray into the mobile consumer hardware market, seeking to open up a crypto-native distribution channel for mobile-first applications. The market for Solana Mobile devices has demonstrated a phenomenon whereby external market actors (e.g. Solana-native projects) continuously underwrite subsidies to Mobile consumers. The value of these subsidies, coming in the form of airdrops, trial programs, and exclusive NFT mints, have consistently covered the cost of the phone and generated positive returns for consumers.

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According to the Tuesday court documents, the SEC has 30 days to formally file the amendment.

It wasn’t a Trump rally, organizers insisted. Attendees may not have gotten the memo though.

The insights, views and outlooks presented in the report are not to be taken as financial advice. Blockworks Research analysts are not registered broker/dealers or financial advisors. Blockworks Research analysts may hold assets mentioned in this report, further outlined in the Firm’s Financial Disclosures.