👨🔬 Governance Lab #013
Lab Report #13 - ACI Orbit, DSR, Fee Switch, and more
gm, welcome back to the Governance Lab, your weekly source for all things StableLab, DAO Governance, and of course DAO drama. LSDs ..erm rather LSTs are the talk of the town, again. Fears of LST cartelization are ringing. MakerDAO increases the “interest rate” of DeFi. Delegates are finally getting recognized across the governance ecosystem. And lots more.
This week, we:
🧑🏻🚀 Join the ACI Orbit Pilot Program
🗳️ Cast 33 Proposal Votes
👀 Submit a proposal at 1inch to stake $1M DAI to DSR
Let’s dive in 🏊
🧑🏻🚀 Jumping into Orbit at Aave
We’re honored to announce we have been chosen to participate in the Pilot Orbit Program at Aave, which aims to incentivize top-quality delegates. Orbit will look to fund three delegate platforms over the next 3 months for their contributions to Aave governance. The program hopes to lay the foundation for what delegate incentives may look like at Aave DAO. Other delegates in the program include Flipside and LBS Blockchain Society.
🙏 Special thanks to Marc Zeller, the Aave Chan Initiative, and the entire Aave community.
📋 Get your Surveys in!
The kind folks over at the DAO Research Collective are running a survey focused on DAO delegation. A USDC reward is available to the first 200 survey participants. You can see the current results of the survey here.
Also, as part of Delegation Week, the team at the DRC is aiming to publish a comprehensive report on the current state of DAO delegation. We’re excited to announce that we were featured and interviewed for this report. Keep an eye on our socials for the report once it drops.
❲ This Week’s Proposals ❳
🆕 New Proposals
🎠 1IP-XX: Stake $1M DAI to earn yield from DAI Saving Rate
Protocol: 1inch
Summary: This proposal looks to generate revenue for the 1inch DAO by staking $1M DAI to MakerDAO’s DSR. To accomplish this, the DAO would swap $800k USDC from the treasury for DAI and add to its existing holdings of $194K DAI for a total of $1M DAI. With the recent change to the DSR rate, 1inch can expect to earn a 3.4% yield.
Author: Kene
Status: 💬 Forum Post → Gathering community feedback
💬 Awaiting Feedback
🎠 1IP-XX: StableLab <> 1INCH Grant Request
Protocol: 1inch
Status: 💬 Forum Post → Gathering community feedback
✅ Proposals Passed
🧮 [RFC] End Current DAO Expenses While Protocol is Non-Operational
Protocol: Euler Finance
Results: 100% Yes, End Current DAO Expenses
🐇 RFC: Renewal of the Hop Delegate Incentivization Trial
Protocol: Hop Protocol
Results: 99.85% FOR
❲ This Week’s Voting ❳
📆 May 26 → June 01 | 🗳️ Total Votes: 33
See here for our full vote history and rationale.
External Files 🗂️
❲ News ❳
MakerDAO looks to Raise DSR
As part of a batch of Stability Scope Parameter changes, the Risk Core Unit has put forward a proposal to raise the DAI Savings Rate from 1% to 3.49%. The DSR serves an important role in the ecosystem as one of the safest and most reliable methods to earn interest on DAI. With the passing of a recent governance poll, the proposed changes will be added to the next available Executive governance vote, where they will likely be ratified by Maker governance.
On Twitter, community member Monetsupply noted motivation for the increase as perhaps being, “part of the stability scope- dsr is benchmarked vs tbills and avg revenue earned on psms think the logic is market will grow more efficient eventually, better to be a first mover”.
In December of last year, the DSR was raised to 1%. where it has remained until now. Look for shifts in the broader DeFi market.
Uniswap Fee Switch Vote Falls Short... Again
On Thursday, GFX Labs’ polling proposal to turn on a fee switch at Uniswap failed to pass a governance vote. The controversial vote ended with a 45.32% “No Fee” vote against a 42.34% “1/5” vote. There were actually three total snapshot votes to determine different parameters. However, the most important vote to turn on a version of the outlined fee options failed to pass.
EDIT: Alana from the UF clarified on Twitter, “Seeing some tweets about the Snapshots tied to @labsGFX Fee Switch Proposal. 3 Snapshots were posted to get feedback -- they're not the Temp Check/ not part of formal Uni gov process. ‘Once the polls are closed, we'll use the polling data to propose a formal Temperate Check.’”
For now, the Uniswap fee switch will remain off. Enjoy the forum discussion here.
❲ Links ❳
Monetsupply shares MakerDAO market conditions and competition analysis for May 2023
Recognized Delegate Programs are in vogue
LSD Cartelization and the Risk to Ethereum Consensus
The Gold Standard of Decentralization is On and Offchain
Accountability in Decentralized Technology Communities
Unleashing Warlord, an index of CVX and AURA
Enter Frax Governance 2.0
Introducing Prisma Finance, LSTfi
Velodrome V2, a new era
Optimism Ecosystem Contribution List
Circle to launch USDC natively on Arbitrum
Thread breakdown of Curve’s lending-liquidating algorithm LLAMA
Top 5 Issues of decentralized governance
Element DAO Manifesto passes governance vote
The three types of decentralization for protocols, plus a decentralization factors table for tokenized consensus protocols and tokenized smart contract protocols
Rune discusses Endgame on the Empire Podcast (Blockworks)
❲ Proposal Alpha ❳
Aave DAO considers integrating DSR into V3
MakerDAO votes to onboard rETH to Spark
Aave Temp Checks deploying V3 on Scroll
Steakhouse proposes staking all treasury ETH into Lido
❲ Meme ❳
