Momoka Scaling Solution for Lens - Why is it a game changer...✨🌿🧵

What is Momoka? 🤩 🌿

Momoka is an Optimistic L3 scaling solution, that will process transactions at hyperscale, and is designed to support the next generation of web3 social users.

See Lens' post for the deep rundown 👀

Momoka address an issue that is as old as blockchains, block space scarcity...which translates to on-chain data storage scarcity. You may have come across the debate on whether NFTs who's metadata is saved on-chain are more valuable or not, or are we clogging up these chains.

This is a concern with blockchains because the more congested execution chains become, the more expensive they are to use. Hence, there has always been a concern regarding the feasibility of social media on-chain.

A lot of Lens apps currently are built in way they've obfuscated away the user having to pay gas on very TXN they create on Lens, subsidising them on the backend. A large part of this is because people would find it hard to stomach having to pay to make a comment, for example.

With Momoka, there is the choice of what should be on-chain and what doesn't have to be. I think this is particularly important because there are things you'd want on-chain and things you might not, like a causal comment.

This does a two of things:

Firstly, it improves the overall experience of using Lens apps as we're not going to have to wait for small interactions like comments to be indexed anymore. Low latency, Instant Verification!

Secondly, this dramatically decreases the costs of on-chain interactions as the network as a whole will be less congested with a lot of what people do Lens not being on-chain.

This has the added benefit of making it easier for Lens apps to reach revenue generation if they continue to subsidise on-chain activities and implement viable revenue models. Moreover, this allows for a more sustainable and productive ecosystem.

Aside from all it does for Lens and the viability for decentralised social, it addresses the same issues experienced by projects building in web3 gaming and so many other niches. It'll be interesting to see how Momoka evolves to support potentially various ecosystems in future.

Big congratulations to @lensprotocol, Arweave and @bundlr-network on the announcement 🥳

I'll be verifying 🫡 🌿

@llamaxyz.lens is thrilled to propose a revised outlook for the @aaveaave.lens Safety Module to the community.

Following feedback, the strategy was split in 6 posts on the Aave forum.

The summary can be found here, but this post will dive into each topic

governance.aave.com/t/discussion-safety-module/12029/9

The strategy aims to improve the SM design on several aspects, such as:

~ Increase the SM cover value

~ Improve Incentives management

~ Increased SM depositors rewards

~ Reduction of the cover cost

PART I: Migrate the StkABPT to @balancerprotocol.lens V2

The publication proposes an update of the initial SM pool parameters to consider several configurations on Balancer

~ B-80AAVE-20wETH

~ B-80AAVE-20wstETH

~ B-50AAVE-50wETH

~ B-50AAVE-50wstETH

Proposal I: governance.aave.com/t/temp-check-safety-module-update-part-i-migrate-aave-weth-balancer-v1-pool-to-balancer-v2/12748

PART II: Assets diversity, SM Categories & Slashing

This proposal introduces risk tranching by creating 3 categories with different slashing, parameters & rewards

~ Single Assets: Similar to current design (Reduced emission, 30% max slashing)

~ Volatile & Stable BPTs: LPs staked in Balancer gauges through @AuraFinance

(BAL + AURA rewards, 45% max slashing for volatiles, 60% max slashing for Stables)

Proposal II: governance.aave.com/t/temp-check-safety-module-upgrade-part-ii-asset-diversity-sm-categories-slashing-updates/12749

PART III: Enable smBPT gauges

This proposal proposes to improve the capital efficiency in the SM by creating gauges on smBPT instead of classic BPT

To generate enough BAL + AURA rewards, the Aave DAO will need to attract vote on the associated gauges, which can be done by voting or creating vote incentives for veBAL & wrappers holders.

Classic gauges would dilute the SM reward budget since anyone could receive yield while bypassing the SM risks & cooldown.

smBPT allows anyone to deposit in the pool & earn fees, but only SM depositors would receive BAL + AURA rewards.

Proposal III: governance.aave.com/t/temp-check-safety-module-upgrade-part-iii-enable-gauges-on-bpt-in-safety-module-smbpt/12750

PART IV: Incentives management upgrade

This proposals focuses on updating the current AAVE reward budget management

~ 25% of the current SM budget as liquidity mining on single assets (no gauges)

~ 75% of current SM budget as vote incentives on smBPT gauges through Warden Quest by @paladin.lens for volatile & stable BPTs categories

This allows to leverage the premium of gauge weight power compared to direct liquidity mining and benefit from several Quest benefits such as

~ Defined amount of votes needed

~ Fixed reward / vote paid to voters

~ Ability to retrieve unspent rewards

~ Incentivize veBAL & wrappers

Proposal IV: governance.aave.com/t/temp-check-safety-module-upgrade-part-iv-incentives-management-upgrade/12751

PART V: veToken Management framework

This proposal aims to define a framework to manage the strategic assets locked on the collector contract by electing a committee in charge of the following actions

~ Lock / relock assets

~ Cast gauges votes

~ Monitor the market

~ Create the Quests

~ Claim & Compound the yield

Proposal V: governance.aave.com/t/temp-check-safety-module-upgrade-part-v-vetoken-holding-management-framework/12752

PART VI: Future considerations

This proposal aims to recap the design proposed and add future considerations for this strategy

~ Progressive incentives migration to the new design

~ Incentives budget sustainability

~ Protocol Owned liquidity considerations

~ Framework to add new assets to the SM

Proposal VI: governance.aave.com/t/temp-check-safety-module-upgrade-part-vi-future-considerations/12753

Looking forward to get feedback on the forum and discuss these topics with the community