The DeFi Collective is designed to support maximally decentralized protocols. There are currently four main methods harnessed to achieve the core objective of maximizing the number of Stage 2 DeFi protocols and the value they secure:

1. DeFiScan: DeFiScan analyzes protocols’ decentralization status, helping to raise awareness for genuine DeFi.
2. PermaLP: The Collective assets are mobilized to ensure a constant product liquidity baseline on pairs involving Stage 1 & 2 tokens.
3. Community Relays: Velodrome & Aerodrome voting strategies, managed by the Collective, to further support liquidity on tokens of Stage 1 & 2 protocols.
4. Liquidity Support: Incentives are directed to pairs involving Stage 1 & 2 tokens, helping to attract and retain liquidity.

DeFiScan

• Goal: Allow anyone, even non-technical users, to properly assess the decentralization stage of a given protocol.
• Mean: A neutral and fact-based framework to review the decentralization status of protocols.

DeFiScan is a framework to review the decentralization stage of DeFi protocols. The results of DeFiScan’s reviews are also used internally within the Collective to determine where to provide the most support and deploy assets.

PermaLP

• Goal: Grow synergetic and mutually beneficial synergies with Stage 1 & 2 protocols.
• Mean: Matched donations to secure a wide liquidity baseline for projects & sustainable revenue streams for the Collective.

Maximally decentralized projects often need help with liquidity management. In addition to its existing activities, the Collective sometimes provides additional support to Stage 1 and Stage 2 protocols by matching donations received with its own assets to permanently supply liquidity. The Collective commits to keep supplying the assets in liquidity pools in perpetuity, although freedom of allocation is preserved for strategic reasons: while the funds remain in a pool, their DEX or pairing might evolve. Rewards earned with these permaLP positions are used to serve the core objective of the Collective further.

PermaLP Arrangements Overview

The table below provides an overview of the ongoing and previous permaLP sources:

PermaLP Tracking

A Dune Dashboard facilitates tracking the Collective’s permaLP positions. All permaLP positions are secured with a separate wallet, 0x9c413014c0b8b853b93953537d9aF112aD821345, resolved at permalp.deficollective.eth to ease their tracking further.

Community Relays

• Goal: Supercharge the liquidity growth activity by enabling the community to join the effort.
• Mean: veVELO/veAERO relays, enabling any holder to seamlessly and effortlessly support maximally decentralized DeFi protocols with their position.

Deposit - DeFiScan Stage 1 & 2 Support Flywheel veAERO/veVELO Relays

The Collective operates a relay on both Velodrome and Aerodrome. Relays are a voting strategy that any holder of veAERO/veVELO can opt-in to while remaining in complete control of its assets and the rewards it earns. The Collective relays vote exclusively on pools involving tokens from Stage 1 & 2 protocols. Community members who hold veAERO/veVELO and would like to support the most decentralized protocols can delegate here:

• 🚲 DeFiScan Stage 1 & 2 Support Flywheel veVELO
• ✈️ DeFiScan Stage 1 & 2 Support Flywheel veAERO

A comprehensive Dune Dashboard is made available to track the voting power, APR, votes, and weekly balance compounded of each relay:

• DeFiScan veVELO Relay Tracking
• DeFiScan veAERO Relay Tracking

DeFiScan veVELO Relay Votes Tracking

DeFiScan veAERO Relay Votes Tracking

Liquidity Support

• Goal: Support the liquidity of tokens associated with Stage 1 & Stage 2 protocols.
• Mean: Liquidity-driving positions are harnessed to direct a continuous flow of incentives to relevant token pairs.

The DeFi Collective was built to give genuine DeFi projects an edge. It supports them with offchain means, such as advising on tokenomics, protocol design, or communications, as well as onchain means—the most notable and measurable of which is liquidity growth.

The Collective harnesses liquidity-driving tokens, including veVELO (Velodrome), veAERO (Aerodrome), and veRAM (Ramses). These allow the Collective to vote regularly on the respective DEXes, whereby the DEX emissions incentives to liquidity providers of the liquidity pools that receive the most votes. In line with DeFiScan’s reviews, the Collective votes on liquidity pools containing tokens of Stage 1 & Stage 2 DeFi projects. It helps to attract liquidity providers and hence grow the liquidity for the token - thus we refer to it as liquidity growth support.

This following section provides all the context for our community to follow the liquidity growth support provided to Stage 1 & Stage 2 DeFi projects on the main chains the Collective is active on: Optimism, Base, and Arbitrum.

Optimism (Velodrome)

Optimism is the chain where the Collective has the most impact, thanks to a large veVELO position (~0.63% of the gauge):

veVELO Position Overview

veVELO Active Votes

These votes are active for the current voting period, which lasts a week. Pools voted on by the Collective receive increased VELO emissions, helping them attract more third-party liquidity providers.

veVELO Vote History

This dashboard enables you to track the evolution of the Collective’s strategy weekly.

Find the full context on our activity on Optimism in the dedicated Dune Analytics dashboard:

🌐 Full Dune Dashboard: 🐜 Pools - Optimism (Velodrome)

Base (Aerodrome)

Base is the second top chain for the Collective, thanks to a growing veAERO position.

veAERO Position Overview

veAERO Active Votes

These votes are active for the current voting period, which lasts a week. The Collective’s veAERO vote directs AERO emissions to targeted pools, helping them to attract more third-party liquidity providers.

veAERO Vote History

This dashboard enables you to track the evolution of the Collective’s voting weekly.

Find the full context on our activity on Base in the dedicated Dune Analytics dashboard:

🌐Full Dune Dashboard: 🐜 Pools - Base (Aerodrome)

Arbitrum (Ramses)

Arbitrum is the third top chain for the Collective.

veRAM Position Overview

veRAM Active Votes

These votes are active for the current voting period, which lasts a week.

veRAM Vote History

This dashboard lets you track the evolution of the Collective’s weekly voting.

Find the full context on our activity on Arbitrum in the dedicated Dune Analytics dashboard:

🌐 Full Dune Dashboard: 🐜 Pools - Arbitrum (Ramses)