Open Bakery

A dev-collective focused on applications on top of the Ethereum ecosystem.

Open Bakery is a small group of developers mainly focused on DeFi applications and blockchain technology who are currently experimenting with different ways to sustainably fund operations.

Protocol Security And Sustainable Development

DeFi projects usually rely on charging fees in order to sustain their operations. The competitive nature of these protocols coupled with its open source permissionless nature, a.k.a. simple forks, often leads to projects attempting to outdo each other by offering cheaper and cheaper fees for their services.

This can result in a race to the bottom, where services are offered for lower fees in order to remain competitive which may ultimately lead to a situation where the fees charged by these protocols are not sufficient to sustain their operations.

A potential improvement to this idea could be to focus on the relationship between the utility of a blockchain, block space demand, and its security budget.

Demand Through Utility

Protocols should be focused on increasing the utility of a blockchain through features that make it more useful and valuable to users. By doing so, they can increase the demand for block space and can generate revenue through transaction fees by providing security through validation. Protocols that don’t want to validate can simply hold liquid staking derivatives.

Either way allows them to sustain themselves by securing the blockchain they build on top of. Transaction fees and/or block rewards can then be used to pay for the protocol's operations and development.

Development Setbacks

Open Bakery is currently working on various tools on top of Uniswap V3. From a simplified way to become a market maker to strategies for what to do with the earned trading fees, unfortunately as it currently stands, we end up spending a lot more time trying to figure out how to get funding than actually building.

Uniswap V3 Tools we are currently building:

• Simple Liquidity Provision

• Fee Management Strategies

• Collective Staking Pools

• Automatic Loan Repayments

In order to continue development in a sustained way we must first take a detour.

EXIT10 is the protocol which allows Open Bakery to bootstrap funds in order to start its staking operation in an attempt to utilize blockchain demand to pay for its own applications.