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Compounding For The Community: Beefy on Gnosis Chain

October 26, 2023

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The real promise of Web 3.0 is not in the reinvention of money. It's in the solving of human coordination.

From humanity’s earliest clans and tribes, through our countless hierarchies of military and religious organizations, to today’s behemoth mega corporations, humanity has discovered that improving how we coordinate can lead to drastic improvements in our quality of life. True as that is, still we are plagued by the ailments of tyranny, corruption, and bureaucracy. Still we can do better.

Web 3.0 promises to deliver a new era of tooling and systems to aid in the coordination of mankind. By producing a secure yet flexible foundation for decentralized economies to be built on, smart contract platforms introduce limitless possibilities for improving organizational design and achieving credible neutrality. And by cultivating a strong community of talented and devoted contributors, united by common interests and goals, Web 3.0 can deliver solutions to many of the problems that still plague society’s largest organizations.

With these reflections in mind, we at Beefy are delighted to announce our latest cross-chain foray onto Gnosis Chain. As one of the original community-run chains and home to some of the most talented and innovative projects across the space, it’s always been just a matter of time before Beefy’s would arrive to graze on Gnosis’ bountiful yields.

Gnosis

Gnosis is a developer community that has been building out a broad and horizontal stack of interoperable tools for the Web 3.0 ecosystem since the very early days of Ethereum. Originally founded as a predictions market project as part of ConsenSys, Gnosis spun out into its own community in 2017, before launching officially as a DAO in late 2020.

Since that time, the Gnosis DAO and broader community have gradually expanded the scope of contributions across the entire Web 3.0 stack. Notable highlights include creating swap protocols (CoW Protocol), multisignature wallets infrastructures (Safe), DAO tooling (Zodiac) and prediction market technology (Conditional Tokens). Though Gnosis tends to spin out successful ventures (such as Safe and CoW) into their own organizations, the community and its value remain embedded at the core of all Gnosis-incubated projects.

The DAO’s native $GNO token is primarily used for its governance functions, though the DAO has ensured that the token maintains a wide range of uses across both Gnosis and Ethereum. Users can participate in GnosisDAO through discussions on the DAO's Discord server and forum site, and through voting within the DAO's Snapshot space.

Gnosis Chain

In November 2021, Gnosis expanded once again by merging with xDai Chain to launch what’s now known as Gnosis Chain. The chain is an EVM-compatible proof-of-stake chain, which is wholly owned by its community and operated by a network of over 140,000 validators. It remains closely linked to Ethereum, using the same execution layer and consensus layer clients for ease of access.

Unlike most native chain tokens, Gnosis Chain is built around a stablecoin, $xDai, which is used for the payment of gas fees on the chain. $xDai is pegged to the Ethereum-native $DAI token, which is issued by MakerDAO, and is backed 1:1 with $DAI on Ethereum. Using the native xDai Bridge, users on Ethereum can deploy their native $DAI at far lower fees by bridging to Gnosis.

In recent weeks, Gnosis Chain has witnessed a surge of activity following the arrival of MakerDAO’s $sDAI, which is a yield-bearing version of DAI which earns the DAI Savings Rate (or DSR). In these inflationary times, the static DSR of 5.0% has been highly attractive to users of all shapes and sizes. But with $sDAI on Gnosis, users can access rates closer to 8% because the vast majority of $DAI in the Gnosis bridge contract has been converted to $sDAI, but the proportion of Gnosis $sDAI is far smaller (meaning a greater proportion of interest per Gnosis $sDAI).

Get Me There

Clearly, Gnosis boasts a diverse and innovative ecosystem that's worth exploring. But what if you've never given it a go before? We've got all the tips you need to check it out. 👇

First you'll need some $xDAI on Gnosis to pay for gas. With the official xDai Bridge, you can bridge native $DAI from Ethereum in exchange for $xDAI on Gnosis. Alternatively, try out Jumper's cross-chain bridge for a wider range of assets and chains to bridge, or the official Gnosis Chain Faucet if you just want a couple of cents to try out.

Once you've got yourself some $xDAI, you can check out the details of your transactions on the Gnosis Chain Explorer. It's time to explore the flourishing world of decentralized applications on Gnosis through gnosischain.world. Alternatively, check out the Gnosis DefiLlama page to see the movements of TVL across the ecosystem.

Finally, if you want to securely store your Gnosis assets through the power of abstract accounts, you can spin up a Safe account, and benefit from free sponsored transactions through the Gnosis relayer. And if you want to benefit from the exceptional DSR on $xDAI, use Agave to get your hands on some $sDAI as well.

Compounding For The Community

We’re sure by now you’ll have sensed our excitement to join in on all the amazing work taking place in the Gnosis community. But in reverse, we’re also excited to bring the power of Beefy’s autocompounding vaults to Gnosis. With so many of our existing partners already live on the chain, there’s a ton of yield opportunities to be farming!

Starting today, Beefy is bringing the magic of autocompounding to Balancer pools on Gnosis, by way of our good frens at Aura. Access incredible yields on your staked Ether through our wstETH-ETH, wstETH-GNO and wstETH-AURA-BAL vaults, which are all now live on the Beefy App. And with many more amazing yield opportunities following soon, it's a good time to start bridging assets over to Gnosis Chain!

If Web 3.0 is going to succeed in its mission of solving human coordination, it’s going to both need and result in the successful creation and operation of a large-scale and diverse community to organize thousands of small contributions into meaningful and impactful outcomes. By bringing together Beefy’s veteran cross-chain cowmoonity with the thriving and innovative population on Gnosis, we hope to be taking the next step in our collective mission.

We’ll see you there. 🫡

Gnosis Website | Gnosis Chain Explorer | xDai Bridge | Gnosis Docs

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