Starknet Foundation Establishes DeFi Committee to Boost Ecosystem

Starknet Foundation has officially launched its DeFi Committee. Announced on November 9, 2023, the committee is set to play a pivotal role in developing Starknet’s DeFi landscape. This initiative marks a strategic step by the Foundation, demonstrating its commitment to expanding and nurturing the DeFi sector within its network.

The DeFi Committee, chaired by six prominent members from various facets of the crypto and blockchain industry, has been meticulously selected by the Starknet Foundation Board. Members include Damian from Starknet Foundation, Itamar Lesuisse of Argent, Jane Ma from zkLend, Mentor Reka of AVNU, Richard Thomas-Pryce of Nostra, and Vitaly Yakovlev from ZKX. These members bring a wealth of knowledge and expertise, positioning the committee to effectively strategize and implement its goals.

The committee’s mission is multifaceted but centers around the development of an on-chain liquidity incentive program. This program aims to establish Starknet as a leading choice for both developers and users of DeFi applications. The committee’s effectiveness will be assessed using primary metrics such as Total Value Locked (TVL) and daily trading volume, alongside secondary metrics like liquidity spread and depth.

The DeFi Committee of Starknet Foundation has outlined a detailed roadmap to steer its efforts in enhancing the DeFi ecosystem, spanning across four crucial phases.

Initially, the committee will focus on the Strategy Assessment phase. This involves a thorough evaluation of the network’s current capabilities, focusing on its readiness to support core DeFi functionalities. The team will examine the existing infrastructure to determine how it can better cater to the needs of various DeFi projects, especially in terms of liquidity solutions. The outcome of this phase will be a comprehensive strategy report, specifically tailored for the Foundation’s internal use, outlining key findings and suggestions for advancing the network’s DeFi capabilities.

Following this, the committee moves into the Monitoring and Incentives phase. This stage is crucial for setting up the right metrics and systems to continuously monitor the DeFi landscape within Starknet. In order to accomplish this effectively, the committee plans to collaborate with external partners. Their goal is to establish a robust monitoring framework alongside an incentive framework. These frameworks are expected to play a significant role in tracking the growth and efficiency of DeFi projects on the platform.

The third phase, Proposal Formulation, is where the committee aims to synthesize the insights gained from the earlier stages. This phase is all about creating a detailed and actionable proposal that includes a wide array of elements such as necessary incentives, targeted programs, and other critical aspects identified during the initial phases. The deliverable from this phase is an incentive program proposal, which will be presented to the Foundation for consideration. This proposal is anticipated to encapsulate the committee’s vision and strategies for the DeFi ecosystem.

Finally, the committee will engage in Execution Oversight and Iteration. Once the Foundation and its Board give their nod of approval, the committee’s role shifts to overseeing the actual implementation of the proposed plans. This phase is crucial for ensuring that the rollout of the incentive programs and other initiatives is aligned with the committee’s recommendations and objectives. The committee will not only manage but also iteratively improve the execution process, ensuring that the implemented strategies align well with the evolving needs of the DeFi ecosystem on Starknet.

Throughout these phases, the DeFi Committee is set to lay the foundation for a robust and thriving DeFi environment within Starknet, reflecting its commitment to driving innovation and growth in the decentralized finance sector.

An allocation of 50 million STRK tokens has been earmarked for the Committee’s initiatives. Reflecting on the past successes of committees like the EAG and Ecosystem Onboarding Committee, the Starknet Foundation anticipates the DeFi Committee will play a crucial role in accelerating the growth of Starknet’s DeFi ecosystem.

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