I analyzed & summarized the workings of Warden Pledge (/ Pledge), a product created by @paladin.lens

In a nutshell, Pledge is at the crossroads between Warden Boost, where you can monetize your veBoost, and Quest, where you can incentive your future return via underlying protocols with the $veToken system (@curve.lens , @balancerprotocol.lens , @angleprotocol.lens, @StakeDAOHQ:) establishing the veBoost market on $veToken

Let's go to have a look on my thread: twitter.com/0xboka/status/1712820956744569058

This week, I analyzed and synthetized the workings of @lensprotocol

In short, @lensprotocol has positioned as a veritable toolbox for decentralized social networks (Web3.0). The aim of @lensprotocol is not to become a social network, but to build an ecosystem with numerous decentralized communities, ideas, applications, tools & systems &, ultimately, governed by DAOs!

There's only one thing you can do: build applications on top of it using this fabulous development kit for decentralized applications: @lensprotocol , as many teams supported & pushed by the project have already done

Users can become Lens's users by obtaining ProfileNFTs if they are on the @lensprotocol whitelist. This whitelist grows over time, enables us to stabilize the protocol step by step & to maintain the growth of @lensprotocol according to its use cases, its uses, the applications built on the top, etc…

ProfileNFT is the heart of @lensprotocol interactions, data is not attached to a private database belonging to a company but to the users, it contains the history of all the posts, mirrors, comments & other content about the user

FollowModule, linked to a ProfileNFT, contains a logic to be executed when a user wants to follow a profile, it is the bass of this famous decentralized social graph linked to the user

Users can follow others Lens ProfileNFT and receive an FollowNFT (ERC721). Content creators & communities can add parameters to this FollowNFT. These FollowNFTs have the ability to manage governance features for DAOs! Wouah!

CollectModule contains the logic to be executed when a ProfileNFT attempts to collect a publication, allowing users to transform publications & comments into NFTs (ERC721)

ReferenceModule contains the logic to be executed when an user wants to comment or to mirror a publication. The conditions of the parent publication's ReferenceModule must be respected.

Users can publish publications:

• which can be collected in NFT (ERC721) thanks to the CollectModule because it has a URL

• and add certain conditions to their publications using the ReferenceModule

Users can post comments linked to publications:

• which are subject to the conditions of the parent publication (of the sender user) via the Publications ReferenceModule

• which can be collected in NFT (ERC721) using the CollectModule, as it has a URL

• and add certain conditions (comments & mirror comments), using the ReferenceModule

Users can reflect publications:

• that can't be collected in NFT because they have no URL (like posts or comments)

• which allows you to add conditions to mirror, thanks to the ReferenceModule

Users can monetize their contents when other users want to collect their posts in NFT, thanks to ReferenceModule

@lensprotocol is not yet open to all, and available on whitelist, as the team wants to control the growth in the number of users for various reasons. @lensprotocol governance is currently managed by a multisig, but decentralizing Lens governance is not an option for the team! Good vision!

Spoiler, in my opinion, @lensprotocol is not a protocol: it's an ecosystem. Lens supports, finances & helps the development of many projects, the goal of these teams: to build dapps on @lensprotocol ! Today, the flagship product is undoubtedly @lenster.lens , in which we can see how the @lensprotocol works in practice!

What I like about @lensprotocol :

• their desire to develop a genuine ecosystem & there are many more applications than those shown on this infographic (www.lens.xyz/apps),,) not to mention the Lens protocol partnerships

• everything has been done to make @lensprotocol a complete toolbox for building decentralized social networks & applications that feed this ecosystem

We can see a few suggestions for improvements to @lensprotocol :

• we still need to build the applications supported/funded by @lensprotocol , as some don't yet have users

• FollowNFT has built-in governance capabilities (to manage DAOs), but I haven't yet seen any DAO tools or projects deployed on @lensprotocol , maybe there already are?

This week I analyzed and synthesized the functioning of the @aaveaave.lens ve protocol

In one sentence, @AaveAave is the leader of decentralized money markets, but especially one of the biggest DeFi protocols, maybe the biggest in terms of TVL. @aaveaave.lens allows users to deposit assets & earn interest or borrow assets by providing collateral & paying interest

You can:

• Have a first step of composability on your assets by depositing them as collateral

• Borrow assets with your collateral: handy when you don't want to sell your long position 😉

• Make loops in order to create a healthy leverage effect (leverage < collateral), beware of liquidations!

1. Liquidity providers deposit their tokens in @aaveaave.lens%E2%80%99s lending pools, depositors receive a yield based on the utilization rate of their assets & aTokens (= proof of deposit)

2. At the heart of the @aaveaave.lens protocol, the lending pools are smart contracts, they manage & regulate all the users' lends & borrows, they mint & burn the aTokens when the users deposit & withdraw from the supply

3. Once a collateral is deposited, depositors can borrow assets by paying interests, they can vary mainly according to the asset borrowed & the utilization rate of this asset

4. The borrowers can choose a variable rate which benefits the markets so in the vast majority of the cases, more interesting, this one depends on the offer & demand or a stable interest rate which is not modified in the short time

5. When you are a borrower, the health factor is the most important thing of your loan, it is absolutely necessary to monitor and control your HF, it is a security index on your loan:

   • 1: you are not at risk of potential liquidation, everything is fine

   • =1: you are potentially subject to liquidation, but your position is probably not yet profitable enough for the liquidators

   • <1: your loan will get liquidated, you will lose your deposit & loan because borrow > lend

6. Health factor formula: ∑ (value collateral * liquidation threshold) / ∑ value borrow

7. Like any money market, and any loan, there are liquidators on @aaveaave.lens: external liquidators (bots) can liquidate potential positions (with a HF < 1) to avoid @aaveaave.lens having bad debts (uncollateralized debts), to compensate themselves, these liquidators earn a liquidation bonus

8. All asset prices on @aaveaave.lens are provided from oracles: notably Chainlink

9. Users can adjust 2 well known parameters with the release of @aaveaave.lens V3:

   • Isolated mode allows to restrict the collateral to one asset: other assets are not subject to liquidation

   • E-mode: allows to maximize collateral when assets are correlated (example: different stablecoins)

10. The @AaveAave treasury earns an interest on those paid by the borrowers, this interest corresponds to the reserve factor, it depends on the borrowed asset & the rate paid by the borrowers

AAVE holders & liquidity providers of 80AAVE/20ETH (liquidity pool on @balancerprotocol.lens ) can stake their tokens in the Safety Module and earn a yield paid by the ecosystem reserve

11. The ecosystem reserve is intended to reward stakeholders participating in the @aaveaave.lens protocol, including external contributors involved in governance such as @llama, @aavechan or @aavegrants, the development team, as well as participants in the Safety Module

12. The Safety Module serves as an insurance for the lending pools in the @aaveaave.lens  protocol, let's imagine that Aave generates a bad debt, the safety module can insure up to 30% of these losses: but this has never happened!

13. AAVE holders can participate in the governance of the @aaveaave.lens  protocol, they can

vote & decide on the outcome of Aave Improvement Proposals (AIPs):

• adjust the liquidation thresholds

• change protocol fee model

• add/remove allowed token, contracts & protocol list

• govern insurance pool, money market & ecosystem reserve

What I liked about @aaveaave.lens :

• There is no need to store your tokens to participate in the governance, unlike vetokenomics, so there is no lock of tokens, just a cooldown period of 10 days in the safety module, this allows to ensure coverage on the lending pools in case of market down

• It is a leading protocol of the current DeFi: in a word a bluechip of the DeFi

@stani.lens Maybe you are interested by theses kind of infographics on Lenster?

This week I analyze & synthesize how the @APWineFinance protocol works.

A mention to @Ulydev at @APWineFinance who helped me with the design of the schema.

In one sentence, APWine has created a layer of derivatives on DeFi returns.

You can:

• Take advantage of the composability of DeFi

• Tokenize your return on an asset, to get the return & hedge on its volatility

• Speculate on the variations of the return of an asset

1. Users can deposit an Interest Bearing Token (iBT) on @APWineFinance against Principal Tokens (PT) and Future Yield Token (FYT)

2. The types of assets on APWine:

   • iBT = the asset and its interest (which accumulates over time)

   • PT = only the asset of the iBT, without its yield

   • FYT = the yield of an asset over a specific period of time

   • The underlying: the tokens on which the iBT is based

3. Users can trade their tokens (ERC20) on APWine's automated market maker according to 2 liquidity pools: PT/underlying and PT/FYT, this leads to a slippage according to the amounts involved and a small fee

4. AMM means liquidity providers, who can deposit their tokens (PT/underlying & PT/FYT) against lp token (proof of deposit), rewards and liquidity mining paid in APW

5. APW holders can lock their tokens for up to 2 years against veAPW

6. veAPW holders:

   • Boost increase the quantity of rewards (max *2.5)

   • Get voting power proportional to their lock time (which will decrease with time)

   • Earn voting right to vote the proposal of the DAO

   • Earn rewards APW

   • Use voting power to decide on pool incentives

7. Fees from the AMM are redistributed 30% to the @APWineFinance protocol treasury and 70% to the veAPW holdeurs

What I liked about @APWineFinance:

• APWine allows for a new form of DeFi yield composability, across many protocols, such as: @LidoFinance, @StakeDAOHQ, @paraswap, @Paladin_vote

• Keep an eye on this protocol, as a new version of APWine is eagerly awaited

In order to better understand the DeFi & its innovative protocols, more or less complex, I analyze and synthesize the functioning of the protocols in collaboration with the teams

This week I synthetize the funtionning of Liquity protocol.

1. The users open a trove to mint $lusd (stable $) (> 2000$) against collateral $eth, they can close it at any time by repaying their debt in full

2. When 1 $lusd < 1$, users can swap 1 $lusd / 1$ $eth

3. The $lqty holders stake (or unstake) their $lqty to earn $lusd & $eth from borrowing & redemption fees

4. The liquidity providers deposit $lusd in the stability pool to over collateralize users’ troves earning $lqty

5. The liquidators close out liquidating troves (collateral *1.1 > debt) & earn 0.5% of collateral $eth

6. Liquidity is fully automated: the parameters cannot be changed. The troves mint $lusd, are collateralized by $eth and the stability pool over collateralizes the troves

7. Recovery mode kicks in when the total collateral ratio (TCR) of the system falls below 150%, there are several variants depending on the events (see diagram) but stay above 150% collateral and everything will be fine

What I liked about Liquity:

 -  has no governance: the parameters are defined at the time of deployment

 -  can be deployed on a multitude of frontend operators, so censorship resistant

 -  As a borrower, you don't have to worry about debt accumulation because the interest rate is zero

In order to better undertand the DeFi functioning & its more or less complex protocols.
This week I synthetize the functioning of Angle Protocole.

1. The users mint (or burn) stablecoin against collateral available on Angle Protocol.

2. The standard liquidty providers bring collateral/stablecoin and receive a prood of deposit ($sanToken), they can stake (or unstake) it.

3. The hedging agents open perpetual futures (with marging & leverage) to cover the collateral deposited by the users.

4. The Angle Core module invests the protocol’s collateral reserves in DeFi strategies to accumulate interests

5. Different keepers :

   • watch over the futures opened’s liquidations
   • adjust the invested reserves in the DeFi strategies
   • trade the arbitrations to maintain the $agEUR’s peg
   • distribute $angle at the different types of users

6. The Angle Borrowing module allows at the users to lend (or borrow) $agEUR against a collateral available on Angle Protocol

7. The $veangle holders (vetokenomic) represent the Angle governance :

   • control the protocole
   • implement changes of parameters
   • add (and modify) new components and functionalities

8. The $veangle holders :

   • earn a part of yield from protocole DeFi strategies
   • boost increase the quantity of rewards (max *2.5)
   • vote for gauge rewards weight to orient the Angle Protocole’s liquidty mining