Monthly Bonzo AMA - July 🐵💬
The Spaces focused on updates and insights regarding Bonzo Finance, primarily discussing the Bonzo Vaults. Key points included the upcoming timeline for Bonzo Vaults launch, expected by end of Q3, with contracts and UI development underway. Vaults will be rule-based and open for strategies developed by anyone in the community. Key risks include smart contract vulnerabilities and strategy misconfigurations. The conversation stressed the importance of generating protocol revenue for sustainability, especially during potential bear markets. Discussions also touched upon NFT utility, token listing, and buyback strategies.
Summary of the Twitter Spaces Recording
Introduction
The Twitter Spaces session began with technical troubleshooting and light-hearted discussions about loading screens and Easter egg messages from Bonzo Finance's UI. Participants eventually transitioned into the main topics of discussion centered around Bonzo Vaults, token strategies, risks, and future plans.
Discussion on Bonzo Vaults
Launch Timeline and Testing
The talk focused on the anticipated launch of Bonzo Vaults. The tech team is completing final testing stages, including main net contract tests distinct from those on the test net. An audit is scheduled to start next week with hopes to complete by late July. The UI development is parallel to contract testing, aiming for a launch ideally in August or early September.
Management of Vaults
Bonzo Vaults are planned to be rule-based rather than AI-driven initially. Once contracts are ready, infra contracts will be deployed on the blockchain—for tasks like strategy deployment. Strategies are open for developers familiar with Solidity, but will require vetting by the Bonzo team for security assurance.
Strategies and Tokens
Initial vault strategies include automated concentrated liquidity management for SaucerSwap V2 pools and leverage liquid staking. While exact token support wasn't specified, Goring noted that strategies often begin with reward-bearing tokens and top ecosystem tokens.
Risks Associated with Bonzo Vaults
Smart Contract Risks
Brady discussed the inherent smart contract risks in DeFi, emphasizing the compounded risk when vaults manage liquidity across multiple protocols like Saucer Swap.
Misconfigurations and Slippage
Goring added concerns about potential strategy misconfigurations, slippage, and impermanent losses similar to manual trading scenarios.
Impact on Bonzo Token
Bonzo Vault revenue contributes to buyback programs funding protocol incentives. This mechanism aims to ensure sustainable operations and support long-term protocol health, indirectly benefiting Bonzo tokens.
Handling Bear Markets and Token Strategy
Both Brady and Goring emphasized the importance of generating protocol revenue to weather bear markets, tying back operational stability to revenue like other business models. The goal is also to encourage widespread token distribution among engaged governance holders.
Asset Listings and Protocol Scope
While specific new asset listings were not disclosed, Brady highlighted the methodical, risk-aware process for listing assets—especially balancing meme coins' volatility against potential lending protocol risks.
NFT Utility and Community Engagement
The session invited community contributions for NFT utility ideas post Season 3, with some suggestions around gated feature testing but ruled out rate discounts due to inherent risks.
Preparation for Future Developments
Plans include open-source code verification upon protocol launch and focus on long-term readiness despite market conditions.
Closing Remarks
The discussion concluded with humor and appreciation, thanking participants and promising insights on vault progress. This session highlighted Bonzo Finance's strategic approaches to vault deployment, risk management, and ecosystem health.