The purpose of this post is to temperature check AAVE owners on authorizing a V3 Business License to Moola so that we may operate a V3 portal on Celo, a carbon-negative mobile-first EVM network that makes financial dApps and crypto payments accessible to anyone with a mobile phone.
Approving a business license for Moola protects the interest of AAVE owners because we earn additional revenue from a new ecosystem without cannibalizing existing revenue, we build an ecosystem around the Aave V3 codebase through cooperation, and we establish precedent for DAOs licensing open source software.
Moola Market pays AAVE owners a licensing fee, paid 67% in AAVE and 33% in MOO (Moola’s governance token) and equal to 11.225% of the revenue factor earned during the licensing period.
How does this protect the interest of AAVE owners?
It was indicated that “the V3 code will be open sourced, together with the main V3 repo, for deployment on the Ethereum, Avalanche, and Polygon networks” (link). Moola is laser focused on serving the needs of Celo users, so approving a business license for Moola enables AAVE owners to earn additional revenue from the Celo ecosystem by deploying a fourth portal, without having to expend additional Aave core team resources or cannibalize existing revenue sources.
Some of Moola’s revenue generating integrations include: Ubeswap, Celo’s largest AMM (excluding Mento) who uses Moola Celo Dollars (mcUSD) and Moola Celo Euros (mcEUR) as the base tokens for incentivized liquidity pools; Poof Cash, a privacy protocol that uses Moola to enable private savings accounts and borrowing; GoodGhosting, a prize-linked savings application that uses Moola for yield generation; and Valora, the leading mobile wallet on Celo that enables users to text crypto payments to any phone number in their contact list.
Paying the licensing fee in AAVE and MOO, as a percentage of Moola’s revenue factor, lets AAVE owners capture the upside potential of Celo network adoption by creating an AAVE buyback mechanism on Celo, while also aligning AAVE and MOO owner’s interests.
Moola can contribute knowledge of best practices related to cross-chain deployments because we participated in the deployment of (and are cosigners on) the community owned Optics bridge that interconnects the Ethereum, Avalanche, Polygon, and Celo networks.
Another benefit to AAVE owners is that approving a business license for Moola establishes a precedent for AAVE owners, and DAOs more broadly, to protect their interests by licensing open source software and by growing the ecosystem through coordinated cooperation.
Moola is drafting a proposed software licensing agreement that AAVE owners can sign via on-chain governance vote, on behalf of the DAO. Since this sort of licensing arrangement is novel and untested from a legal standpoint, approving a license for Moola may also provide AAVE owners with standing to enforce claims against unauthorized use of the V3 software.
About Moola Market:
Moola’s mission is to democratize access to credit and yield by making borrowing and lending easily accessible for users on their mobile phones. Moola is the largest defi protocol on Celo by TVL (excluding Mento).
Moola launched a fork of Aave v1 in Nov 2020 as the first defi protocol on Celo. Moola participated in Celo Camp batch 2 and placed second on demo day. Moola also participated in the DeFi Alliance cohort 4 and is an alumni member.
Moola closed a $1.4m seed round led by Polychain Capital with participation from notable angels, and multiple Celo genesis validators.
Moola is following a path of progressive decentralization. The community treasury and governance decisions are currently controlled by a 6-of-10 multisig. In July, Moola launched MOO with the expectation that ownership of the treasury and governance decisions will be transferred to MOO owners.
In October, Moola initiated a community migration from V1 to V2 of the Aave contracts and successfully migrated $80m in TVL across 10k unique addresses.
Moola markets include Celo’s native asset (CELO), Celo Dollars (cUSD), and Celo Euros (cEUR), with Celo Brazilian Real (cREAL) anticipated to launch in January. App.moola.market is available in 12 languages, has over 27k users from 150 countries, and is optimized for use on mobile phones. Moola mTokens have been used to facilitate over $2.7B in transaction volume. Moola’s core team has 14 contributors.
I am very grateful to the Aave team and community for your hard work and innovative leadership that has enabled Moola to get to where we are today. I would be humbled for AAVE owners to support this proposal for our communities to coordinate on cooperation and enable Moola to start giving back.
Thank you for taking time to consider this proposal.
Moola Market links: