Brainstorm ideas for Darknode Community Fund

Soon© we’ll have a Darknode Community Fund that will start collecting ~$50k/month. That’s a really substantial amount out there, in the real world, with which a lot of things can be done. And one of the best ways to use that kind of money is to fund 3rd party dapp development that will utilize RenVM.

So while we wait for the treasury, DAO and all that to come online, let’s not waste time and start coming up with ideas. What can be built, that will use RenVM?

And please feel free to share even the craziest and/or non-technical ideas!

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In my mind DN community fund should be looking for ideas that either directly increase RenVM’s use and volume or increase our treasury by generating additional cashflow (so that we’ll have more resources at our disposal to build or incentivize for increased RenVM usage). So here are a couple of them:

  1. Dapp that automatically takes a certain amount of $ from the treasury and allocates it in an agreed yield bearing asset. This will expedite the growth of the DN fund, while still keeping funds liquid at all times.

  2. Build an arbitrage bot of our own. Arbitrage requires high amounts of money and has very thin margins. Pretty sure there are talented guys out there who have the skill, but not the bankroll to do this. And with the cross-chain world upon us there will certainly be plenty of juicy arbitrage opportunities. We might as well get an extra slice from them.

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We should fund better analytics and data insights to understand how to make better decisions for setting optimal mint/burn fees. We need more granularity into the breakdown of how the REN minted assets are being used down to the APY level.

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With regards to the arbitrage bot idea we could link up with Keeperdao to borrow renbtc in order to facilitate larger trades.

Also perhaps we could agree for reduced RenVM fees for the bot to help give it an advantage over the rest of the market and make consistent returns.

Other ideas

We could contribute funds to the Badger fund which is being used to incentivise renbtc minting.

Provide Renbtc / Btcb liquidity on pancake swap

Help develop a staking service for smaller token holders with share of profits going to the fund. Alternatively buy out / enter into a co ownership of the site currently in production by a community member (renpool.io)

Create a uniswap type app for ren tokens

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The main consideration I’d like to draw attention to is store of value intermediate to spending the funds. In my opinion the truest form of store of value is in a share of a business or protocol with profitshare or utility. It therefore would make sense to have the funds kept as REN tokens or at a minimum something like yUSDC or fCRV-RENBTC. I think the worst move is storing such a large sum as USDC.

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I have some non-technical ideas.

  1. Rename our token. Drop the “en”, just rBtc rDoge rFil… We are early player, why use the long token name.

  2. Make more lending protocol support renBtc as collateral. btc is a good asset to be collateral, if the market is shaking fiercely, people have to mint the renBtc. Makerdao had support renbtc, add renBtc/eth lp is better. If aave and comp support renbtc is great, the curve pool can update, haha.

  3. Cut down bridge time. As we know, the btc wait 6 confirms to mint success, it’s safe but too long time. If we can reduce the confirms number or dnamicly adjust it.

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Integrate RenVM into Zapper. This would allow you to Zap BTC in and out of any of their supported pools.

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First implementations should be from the medium article “12 app ideas using renvm”.

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Just speaking as a community member, it would also be cool with a command center that is built by the community. It’s straight-forward front-end work anyone could create, because all the on-chain data about how much rewards a darknode has accrued etc. can be read on-chain of course. Things like withdrawing rewards are simply contract calls that anyone can add to a UI, it’s not centralized to the Ren team in any way. And that command center could have more custom stats, custom themes, and be edited and governed to the community’s liking.

It could even integrate the governance discussions so there is one place where you manage your darknodes and vote and discuss proposals on, making things easier and could increase governance participation.

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Yes - support this very much

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A liquidity protocol built on RenVM that lets you start and finish on the same chain as the application you want to use. Rather than hold renBTC specifically on Ethereum, you could simply put renBTC in the protocol’s Ethereum address (controlled by RenVM) and get access to the protocol’s renBTC reserves on every chain. This has some key advantages.

The protocol could call contracts on other chains on your behalf using funds that already exist in its reserves on that chain. For example, rather than “cross” chains from Ethereum to Avalanche to do a swap and “cross” back to Ethereum, you could provide liquidity in advance and simply perform the swap with renBTC already on Avalanche and leave the resulting funds in the same Avalanche address in RenVM’s control under your name.

This would eliminate the confirmation time of two burns from each round-trip transaction, save the sender two mint and two burn fees, and accrue LP fees for providing liquidity. The protocol would be responsible for burning-and-minting what extra is needed in addition to load-balancing between reserves, which, along with increased usage of RenVM, may compensate for circumventing mint and burn fees. Ultimately, this efficiency could make interoperability faster, cheaper, and more viable through RenVM.

EDIT: Another major feature of such a protocol: native stablecoin interoperability. For example, the protocol could have native USDT in its pools on Ethereum and Solana, so if you deposit USDT on Ethereum, you get access to native USDT on Ethereum and Solana at the same time without ever having to wrap it anywhere. A native, 1:1 stablecoin bridge.

EDIT 2: One could build an interest-bearing, chain-agnostic wallet on this protocol that gives you access to super-fast liquidity and the best quotes on all chains from a single UI. You wouldn’t have to worry about which chain your liquidity is on or deal with chain-specific wallets and transactions; it would be as if you owned the same amount of renBTC on every chain at the same time.

For the Telegram discussion, follow this link to the initial message, right click, and select “View replies”.

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I would love to discuss opportunities for partnering. I believe there is a lot of value that could be added to the ecosystem. Some of the Ideas I have are below:

  • Funding could be used to help deploy renpools faster i.e. if a pool as 80k REN, funds could be used to deposit the remainder 20k REN to get the pool registered immediately. For that pool, once registered, the community fund could immediately select “Request for Withdraw” with that 20k position which would offer the position to any new comers to “Take the Spot”. The 20k would be returned to the community fund and it can be used to fill another pool if close enough.

  • Funding could also be used to help with withdraws. If a pool owner from a registered pool wants to withdraw(“Request Withdraw”) from the pool i.e. request withdraw 30k REN from the pool. The fund could be used to “Take the Spot” of that position. The fund would deposit 30k REN and the pool owner would be able to withdraw the 30K and get access to the REN immediately instead of waiting for a deregistration while also keeping the darknode registered.

  • The fund would be able to withdraw rewards as well if they are a poolOwner(partial or full owner of the pool).

  • Funding for an audit would definitely be beneficial.

Here are low hanging fruit ideas. If there is a process for applying or if anyone wants to reach out to discuss further opportunities/ideas feel free to message me. Thank you for the renpool.io shout out! :slight_smile:

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I think this is an amazing idea and one that deserves plenty of further thought and discussions with the team if technically feasible. It would offer up instant cross chain liquidity with assets backed 1:1 in a decentralised protocol. What’s not to like.

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Interesting! I think this is something the community should spend time discussing, about the community dev fund not only being a dev fund but a more general kind of treasury that could hold REN and use that to run more nodes/improve efficiency for something like renpool.io which helps the small REN holders but also earns more rewards to the fund itself!

I def like the idea of the community controlling a more general kind of treasury like that.

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Just a simple integration bounty.
If you integrate RenVM and bring in 50k in darknode fees within the first 4 four months of operation, you are eligible for a 25k bounty. Actual numbers can of course be different.

Benefits: extremely simple, no upfront cost, clear benefit to Darknode operators

Challenge: what bounty size would be necessary to entice new integrators? We want to avoid only paying out to integrators what would have integrated anyways

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That’s brilliant imo! We could be super aggressive on this because we know even if someone tries to abuse it it pays back more to the community anyway. And we could have staged payouts where each time you hit a certain threshold of rewards for RenVM, you get a grant, up to some certain final level. Because there might be a risk someone tries to design a quick pump and dump farm, so we’d rather give grants to dapps that serve RenVM long-term.

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+1 The command center is already great, but there is certainly potential in adding more detailed information and presenting it to all node operates, adding snapshot governance, and many other great ideas that can help operators manage, troubleshoot, switch cloud providers, add coverage insurance, lots of potential.

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I really like this idea! We could even substantially increase the bounty once the treasury has more funds (payed out after certain milestones). This is basically “Incentivized Liquidity” not for farmers, but for developers. And in my opinion this is EXACTLY where incentives should lie. Great idea, Thomm!

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I could try sometime to help dev as I free up

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Personally I’ve been using the burn feature for btc payments for various items (blockclock mini for example) I’d love to see a product where renvm can be used for btc payments with any asset supported.