One of the most well-known developers in the DeFi space, Andre Cronje, creator of the Yearn Finance protocol, announced the launch of Coordinape, a platform designed to help the Yearn community manage monthly grants efficiently and transparently.
Andrew Cronje, creator of the well-known protocol DeFi Year Finance, published a document in the protocol blog where he talks about the new platform Coordinape which will help the project community manage monthly grants efficiently, adequately supporting those who contribute to Yearn's development. Cronje highlighted that in a decentralized protocol like Yearn, there is no hierarchy or administration or human resources, but rather governance carried out directly by the project participants; that is, its own community of users.
Yearn Finance allocates $40.000 per month to the grant budget, which supports contributors to the protocol. Cronje highlighted that each contributor receives a grant according to their contribution to the protocol, after being voted on and approved by the community, one by one. However, this mechanism is not scalable for the DAO Yearn, a Decentralized Autonomous Organization that allows governance token holders to vote on proposed improvements and changes to the project, including decisions on how Yearn's resources and grants are managed for its growth and development.
Cronje’s proposal, Coordinape, solves the scaling problem for active resource management, making this process easy and efficient. In his post, Cronje noted that through Coordinape, Yearn contributors will receive a fixed amount of “allocation points.” These points can then be allocated or distributed within Coordinape to other community members who have contributed to the network. Based on the allocated points, each contributor will receive their corresponding percentage of the monthly grant, as long as they have participated and contributed to the project during the month of the grant to be distributed.
Yearn Finance recognizes all those who add value to the platform as contributors.
It may interest you: Ethereum Vaults Launched: How Did Yearn Finance Become So Big on Ethereum?
Creating a decentralized and efficient “payroll”
“Coordinape allows each contributor to allocate tokens to all the people they consider to add value, so when you look at the total allocation across all contributors it’s a pretty accurate and efficient way to allocate asymmetric rewards. There’s nothing else that does this.”
According to Cronje, the grant management platform allows each member to allocate points to other members, commensurate with their contributions. Thus, members with the most points will receive a weighted share of Yearn’s monthly grant budget. Cronje noted that the way Coordinape simplifies resource allocation in the DAO is also an efficient solution for other DAOs or decentralized organizations that face a similar problem when distributing funds.
DAOs can make use of this solution to assign and reward their contributors and participants autonomously, all through an efficient and transparent system. Coordinape is a DO (decentralized operations) that aims to solve the problems of a structure for making operational decisions within a team of collaborators. This platform “provides a visual reflection for DAOs to understand how value flows through the network”, point out the developers of Coordinape in their document technical.
Conflicts in trustless systems
On the other hand, despite Cronje's enthusiasm for this new platform, there are those who question its transparency. The way Coordinape works, which allows members to assign points to other participants, can corrupt the transparency of the platform if a group of its participants coordinate to favor or harm other members.
Despite the doubts, Tracheopteryx, a protocol designed for organizational operations on Yearn, claims that the crypto and DeFi space is made up of highly collaborative people; he also noted that incentives are not so high as to motivate platform manipulation, making Coordinape a scalable platform resistant to attacks. Sybil.
Finally, Cronje noted that Coordinape is still in closed off-chain development, but an open-source version deployed on Layer 2 will be released soon. Ethereum, which other DAOs can adapt to meet the growing needs of their communities.
Continue reading: Yearn Finance is the victim of a million-dollar flash loan attack, but all is not lost
