A little bit of chit-chat
An on-chain proposal is live asking for 588,000 ATOM to fund the ATOM Accelerator DAO Grant Program. The program aims to boost community participation and unlock collective intelligence by encouraging individual and team-based initiatives. The grants will focus on open-source code, public goods, and ecosystem initiatives that create value for ATOM holders. The grant program will run for nine months, and the outcome of the program will be evaluated based on the grant program end of mandate report. The primary goal of the program is to drive value for ATOM.
Join us on February 15th for an insightful online event as we take a deep dive into the topic of MEV on Osmosis. Discover the differences between MEV extraction in the Cosmos ecosystem and other networks, and learn about the efforts to mitigate MEV and the teams exploiting it. Explore the challenges and opportunities in this rapidly growing landscape and understand Osmosis’s approach compared to the established Ethereum MEV landscape. This event is a must-attend for those interested in the future of the Cosmos network and the role of MEV in it. Save your spot.
The Evmos Manifesto
Evmos has announced its roadmap for 2023, outlining its commitment to the Evmos mission. The roadmap breaks down into three key pillars: EVM Extensions, the Evmos SDK, and the dApp Store.
EVM Extensions – Stateful Precompiled Contracts on Evmos: The Evmos network is focused on elevating what’s possible for EVMs by enabling Evmos’ smart contracts to cooperate with Cosmos modules. This is done through the use of stateful precompiled smart contracts, which are a special set of natively-implemented smart contracts that are bundled with an EVM instance at fixed addresses. These extensions will allow developers to create their business logic for connecting with other smart contracts and app chains in the Cosmos ecosystem, freeing applications from the confines of a single blockchain.
Evmos SDK: The Evmos SDK is being built as a tool for developers to construct the platforms necessary for hosting cross-chain applications. It is a toolchain to build homes for future applications, allowing developers to construct a technology stack optimally built for their needs. The SDK will be used by projects such as Argus and Canto to provide modular EVM Extensions that offer an interface into the requisite state.
dApp Store: The dApp Store will be a one-stop shop for all things decentralized. It will be a curated list of the best-decentralized applications built on the Evmos network, providing users with an easy and accessible way to discover and use decentralized applications. The dApp Store will be an essential component in the ecosystem, driving further growth and adoption of decentralized applications and the Evmos network.
In terms of dates, here’s a summary of the expected deliveries:
What to do with the MEV?
A new on-chain proposal around how Osmosis should initially handle the revenue generated by the ProtoRev module. The purpose of the proposal is to recommend how the revenue should be allocated once the ProtoRev module is implemented as part of the v15 upgrade.
The ProtoRev module is a new and innovative feature for automated market makers (AMMs), which aims to improve the economic sustainability and user experience for Osmosis. The ProtoRev module will check for possible arbitrage routes after every transaction and determine the most profitable arbitrage opportunity.
The revenue captured by the ProtoRev module will accrue to an account controlled by Osmosis governance and will not be shared with stakers or liquidity providers. This decision was made to ensure that the revenue generated by the ProtoRev module is utilized in a manner that maximizes its benefits to the Osmosis community. The community can decide how this revenue should be allocated once the ProtoRev module is implemented and the revenue has accumulated enough capital to make a material impact. The waiting period of a minimum of 4 months is recommended to allow the revenue to accrue to the dedicated account controlled by governance, giving the community sufficient time to make a well-informed decision on the best use of the revenue. The ProtoRev module will initially conduct trades in OSMO and ATOM so that the account will hold a mix of these two assets.
The benefits of the ProtoRev module for Osmosis include the ability to capture in-protocol MEV as protocol revenue, one of the most significant competitive advantages that Osmosis has over other decentralized exchanges. The ProtoRev module will also improve the UX of Osmosis by keeping asset prices even across pools and running cyclical arbitrage at the end of each block to rebalance the pools. According to projections, during a stable bear market, MEV is expected to reach $1368 per day, with 70-80% of this being recovered by the ProtoRev module. With the addition of links to more chains, the potential return from the ProtoRev module in arbitrage alone may be a significant part of protocol income in the future.
The Tweet of the Week
Cosmos for Kids
Airdrops List
Here’s a list of upcoming airdrops.
Wrap Up
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A little bit of intergalactic music for you