👨🔬 Governance Lab #018
Lab Report #018 - Spark Multichain Strategy, 8020 Initiative, Euler v2, and more
gm gm frens welcome back to the Governance Lab, your weekly source for all things StableLab, DeFi, and the tumultuous world of DAO Governance. Apologies for the Friday edition, I was touching grass. DeFi 1.0 is having a resurgence, talks of introducing a “DeFi Circuit Breaker”, Maker goes up thanks to Spark and other catalysts, Aave passes Maker in TVL, and Starknet votes to upgrade. This and many more storylines below. Enjoy :)
PS: Hope you all have a wonderful and restful weekend 🫶
At a Glance 👀
⚡️ Spark Protocol Multichain Strategy
💯 The 8020 Initiative
💳 Euler Labs Gives v2 Update
Let’s dive in 🏊
❲ The Rundown ❳
We’re Going Multichain
Phoenix Labs outlines a Spark Protocol Multichain Strategy
As work moves out of Maker Core, Phoenix Labs has proposed carrying forward the Multichain Strategy initiated by PECU
According to the post, the stated goal of this strategy is to expand to other chains and L2 solutions to reach a broader user base.
Below is the proposed phased rollout of this strategy:
Phase 1: Permissionless Deploy - In this phase, Spark Lend is deployed on a remote chain. Domain teams are encouraged to seed liquidity and demonstrate user demand.
Phase 2: Spark Bridge Deploy - In this phase, a cross-chain bridge module called Spark Bridge is activated to allow AllocatorDAOs to deposit and withdraw from that Spark Lend instance.
Related, Karpatkey submitted a proposal on Tuesday to launch Spark Lend on Gnosis Chain with the initial collateral types of GNO, WETH, wstETH, and wxDAI. This would kickstart Phase 1 of the Multichain Strategy.
The 80/20 Vision
Balancer launches the 8020 initiative
Balancer has announced the launch of the 8020 Initiative, a collection of protocols integrating 8020 BPT into their governance tokenomics.
The initiative aims to solve the current pitfalls (low supplied liquidity pools) with single-sided staking of governance tokens by configuring a two-asset pool consisting of 80% of one asset and 20% of another. Protocols would use an 8020 pool BPT token instead of a single token as their governance token.
Participating protocols include Aave, Alchemix, Radiant, Paraswap, Timeless, and more.
The post claims the model offers the following benefits: deeper liquidity, asymmetric upside and reduced impermanent loss, efficient incentive programs, and hedging and price appreciations
Give Credit Where It’s Due
Euler Labs provides Euler v2 Status Update
On Tuesday, Michael Bentley, CEO at Euler Labs, posted on the Euler forums the first of many planned status reports detailing the current development of Euler Protocol v2.
In the report, a new primitive called the Credit Vault Protocol (CVP) is introduced to replace the core functions of the protocol. The CVP is designed to allow users to permissionlessly create and deploy their own Credit Vaults and serve as a building block for a variety of sub-protocols.
The post further describes three new sub-protocols that will be launched on top of the CVP (final names TBD):
Euler v2 - a new lending and borrowing protocol
Isomorph - a new synthetic asset protocol that supports USD and ETH-denominated stablecoins
Levr - a new DEX and Oracle protocol integrated with Euler
Security code audits are now underway. No launch date for v2 was provided.
❲ Links ❳
🚀 Launches & Deployments
Introducing Encumber, Non-custodial DeFi
Hidden Hand v2 is live
dYdX v4 Testnet goes live
📑 Insights & Reports
Building an Oracleless Lending Protocol on Univ4
The State of Liquid Staking
🧗 Milestones & Updates
Starknet DAO Votes on Alpha Upgrade
Lido DAO Passes Onchain Proposal to Stake 20K ETH
Aave Passes MakerDAO in TVL
Pendle Finance hits TVL ATH
Results of the Safe Grants Council Vote
yETH Begins Bootstrap Phase
🗞️ Miscellaneous
Current State (& Future) of DeFi Perps
Abracadabra DAO Discusses Legal Wrapper
SafeDAO Governance Framework
MakerDAO GovAlpha Gives Notice of Offboarding
Llama Submits Arbitrum Grants DAO Proposal
Proposal to Develop a Lido Risk Monitoring Dashboard
🔒 Security & Hacks
Multichain (possibly) hacked for 90M+
EIP-7256 DeFi “Circuit Breaker” Proposed by Core Devs
📺 Podcasts & Listens
Sidney Powell: Running an On-Chain RWA Business (Maple Finance) on the Kerman Kohli Podcast
Sunny Aggarwal: How Osmosis Could Become Cosmos’ DeFi Hub on 0xResearch Podcast
❲ Proposal Watchlist ❳
Aura Finance - Optimism Deployment
Summary: This proposal looks to deploy Aura Finance on Optimism. As part of the protocol’s strategic cross-chain deployment, the move would offer users the ability to deposit BPTs on Optimism, utilize cross-chain veBAL delegated boost, and allow for seamless bridging of AURA tokens to Optimism.
Aave - Framework ARFC and TEMP CHECK Proposals
Summary: Here, the Aave Chan Initiative proposes a formal governance framework for ARFCs and TEMP CHECK proposals. According to the proposal, a TEMP CHECK serves to gauge community sentiment without the need for service provider involvement. An ARFC is a precursor to AIP onchain votes that may include service provider input. The proposal further outlines the template requirements, the voting guidelines, and any special considerations for each proposal type.
Aave - Acquire wstETH & rETH
Summary: This onchain proposal seeks to convert unproductive ETH balances in the Aave Collector Contractor to produce a more meaningful yield for the DAO. The proposal will swap current awETH and ETH balances to ~1,600 ETH equal amounts and convert them into wstETH and rETH.
Arbitrum - Accelerating Arbitrum Leveraging Camelot
Summary: Here, the Camelot team requests 12M ARB to fund liquidity incentives for Arbitrum-focused projects on the DEX. The proposal claims the funds will be used to deepen liquidity, support integration partners, and launch new protocols. Camelot looks to distribute incentives across the following categories: Ecosystem Builders 50%, Integration Partners 25%, Core Pairs 15%, & Liquid Staking Derivatives 10%.
Compound Finance - Deploy Compound III on Linea
Summary: This proposal seeks a BSL exemption to launch Compound III on the Linea Network, an L2 zkEVM incubated by Consensys.
❲ From the Lab ❳
Doo @ Blockchain Infrastructure Forum
On Thursday, our COO Doo gave a talk at the Austrian National Library in Vienna, Austria. The 2-day event focused on discussions and conversations with pivotal stakeholders in the blockchain infrastructure ecosystem. Topics discussed, debated, and workshopped included, Infrastructure Management, Governance, and Validator Classification.
Special thanks to the organizers for inviting us to present.
Exploring Revenue Options for 1inch DAO
On Tuesday, Kene submitted a new forum post to kickstart community discussions focused on finding new revenue-generating options for the 1inch DAO. With the passing of 1IP-28, which discontinued the swap surplus, the DAO currently finds itself without a revenue source.
❲ This Week’s Proposals ❳
🆕 New Proposals
🎠 1IP-XX: Reduce 1inch Governance Quorum to 5m Unicorn Power (UP)
Protocol: 1inch
Summary: As a result of 1IP-26, which changed how governance power is calculated, reaching proposal quorum at 1inch DAO is now more difficult. Here, we propose lowering quorum from 10M UP down to 5M UP.
Author: Kene
Status: 💬 Forum Post → Gathering community feedback
❲ This Week’s Voting ❳
📆 June 30 → July 06 | 🗳️ Total Votes: 20
See our full vote history and rationale here.
❲ Meme ❳
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