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- Bonzo Bytes Newsletter - #49 π΅ποΈ
Bonzo Bytes Newsletter - #49 π΅ποΈ
π¦ Bonzo Vaults Preparing for Full Launch with New Yield Display Coming Soon
Hello, Bonzo Community!
Welcome to the first Bonzo Bytes newsletter of 2026.
π§ Listen to the full π Space recording: December 9 Bonzo Bytes Space
Bonzo Vaults: Preparing for Full Launch
Bonzo Vaults officially launched in beta at the end of 2025. This marks a major milestone for Bonzo Finance and introduces automated yield strategies built for the Hedera ecosystem.
Bonzo Vaults are yield optimization engines that simplify liquidity management and bring institutional-grade DeFi tooling to users across Hedera. Vaults automate routing, rebalancing, and compounding so users do not have to actively manage positions themselves.
π Explore Vaults here: app.bonzo.finance/vaults
Bonzo Vaults v1 launches with three initial strategies:
Single Asset DEX
Dual Asset DEX
Leveraged Liquid Staking for HBARX*
Initial vaults support deposits in assets such as HBAR, HBARX, USDC, BONZO, SAUCE, and additional Hedera ecosystem tokens. These strategies are designed for longer-duration participation, with the vault handling ongoing liquidity management on behalf of users.
As liquidity grows and strategies are tuned, additional Single Asset and Dual Asset DEX vaults will be added. Assets being evaluated for addition include, but are not limited to, the following: wBTC paired with HBAR or USDC, as well as wETH paired with HBAR; additionally, xPACK, GIB, and GRELF.
Bonzo Vaults v1 is a beta release, and community feedback is encouraged. The Bonzo Finance Labs team will use feedback to drive fast iteration cycles, following the same process used to bring Bonzo Lend out of beta.
As with all DeFi protocols, Bonzo Vaults involve smart contract and market risk. Please do your own research and understand the risks before participating.
Since the soft launch, the team has been gathering community feedback and making improvements. Most fixes have been cosmetic, such as adjusting how assets are displayed on individual vault pages. The team has also been working to improve users' understanding of what's happening inside each Bonzo Vault.
*Deposits currently disabled for further testing but will be re-enabled soon
New Yield Display Coming Soon
The biggest update coming to Vaults is a completely redesigned yield display system, currently live on the staging site and undergoing final testing.
The initial launch included an earnings display that showed both the change in token ratios within the vault and the change in asset prices. While technically accurate and holistic, this approach didn't clearly enough emphasize actual earnings from harvest events.
The new display focuses specifically on yield earned from harvests over time. It will appear as its own tab in the position performance section called "Yield," showing a graph that tracks yield accumulation for the two assets being earned every time a harvest occurs in the vault.
The update will roll out soon, followed by additional vault launches and asset support as Bonzo Vaults transitions out of beta.
Expanding Asset Support
As Vaults exits beta, the team will add support for more assets, particularly those bridged via LayerZero's Stargate or borrowed from Bonzo Lend. This includes wrapped Ethereum and wrapped Bitcoin from LayerZero's Stargate Bridge, which can be immediately deposited into vaults and routed through SaucerSwap's liquidity pools.
The expanded asset support is designed to attract users from other networks into the Hedera ecosystem by giving them productive uses for the assets they're bridging over. More ecosystem-native assets will also be added in the coming weeks.
The full launch will include proper marketing and outreach to drive broader adoption beyond the early beta users.
π Learn more about Bonzo Vaults in the blog post: Bonzo Vaults: Automated Yield Strategies for Hedera DeFi
Bonzo Finance TVL & Scoreboard Update
Hedera Foundation Restructures to Streamline Growth
The Hedera Foundation announced a significant organizational restructuring this week, narrowing its focus to three priorities: improving market efficiency, supporting existing grantees, and strengthening infrastructure for network access.
Importantly, several things are not changing. All existing grants will continue as planned, Hedera Council governance remains intact, and Hashgraph will continue building enterprise-grade products.
What is changing is how the ecosystem organizes its work. Business development efforts are being consolidated into Hashgraph, following feedback that navigating multiple Hedera entities created unnecessary friction. The Foundation framed this move as a shift from experimentation toward long-term, sustained adoption.
Why This Matters
During the Space, Brady shared context on how this realignment brings Hedera closer to the standard operating model used across other successful blockchain networks. Typically, ecosystems separate responsibilities into three layers: the network itself with decentralized governance, a Labs organization responsible for product, partnerships, and growth, and a lightweight foundation focused on grants and stewardship.
Brady noted that Hederaβs earlier structure spread responsibilities across several entities with overlapping missions, which diluted focus and created confusion. Consolidation, in his view, strengthens alignment while preserving decentralization.
Looking Ahead
Two open questions remain: which metrics will best define network success, and how Hedera balances enterprise adoption with native web3 growth. Brady emphasized that strong DeFi infrastructure remains essential, since liquidity, stablecoins, and onchain activity ultimately underpin mainstream adoption.
Read more in the Hedera Foundation blog post: Whatβs Next for Hedera Foundation
Aave Labs Signals Revenue Sharing After Governance Tensions
Aave Labs is proposing a new framework to share off-protocol revenue with AAVE token holders following a governance dispute that erased roughly $500 million from AAVEβs market cap.
The issue surfaced in December, when the community realized that revenue generated from app.aave.com, the primary user interface, was being retained by Aave Labs rather than flowing to the DAO. This sparked a proposal to move brand and front-end assets fully under DAO control. The vote failed, with a majority voting against and a large portion abstaining.
Why This Is Bigger Than Aave
During the Space, Brady explained that this situation reflects a broader structural reality across DeFi. Most major protocols operate with three distinct layers: a DAO governing the protocol, a Labs entity that owns and operates the front-end, and separate revenue streams for protocol fees versus interface fees.
That structure creates tension when investors hold both equity in the Labs company and governance tokens in the DAO. In this case, those overlapping interests played out directly in governance, highlighting unresolved questions around revenue rights, incentives, and legal constraints across DeFi.
What Happens Next
Aave founder Stani Kulechov has since announced that Aave Labs will formally propose a model for sharing non-protocol revenue with token holders. While details are still pending, critics of the earlier vote have called the move a step toward better alignment and transparency.
Brady noted that governance tokens across DeFi ultimately need clearer paths to value accrual. When a protocol as large as Aave works through these questions publicly, the outcome is likely to influence how the rest of the industry approaches similar challenges.
Friday, January 16: Weekly Bonzo Bytes
Join the weekly π Space for Bonzo updates, Hedera ecosystem highlights, and broader crypto and DeFi news.
Thank you for being part of Bonzo Finance and the Hedera DeFi 2.0 journey.
- The Bonzo Finance Team
The views shared in this newsletter are personal opinions and do not represent official Bonzo Finance advice. Any forward-looking statements about Bonzo Finance and its associated projects involve risks and uncertainties. Please do your own research and consult a professional before making any investment decisions. Bonzo Finance is not liable for any actions taken based on the information provided.