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👨🔬 Governance Lab #021
Lab Report #021 - Aave DAO, Enhanced DSR, CGP 2.0 Renewal, and more
gm gm, welcome back to another edition of the Governance Lab, your source for all things StableLab, DeFi, and the wonderful world of Governance. … Still recovering from ETH CC 🤒… There’s some spicy governance drama this week. On the bright side, it’s all valuable lessons for us to learn from… right?? On the agenda this week: Removals, Deployments, Enhancements, Renewals, and much more.
Also, we have a new Head of Product!! I’m sure you’ve seen him around. Enjoy frens.
At a Glance 👀
🦙 Aave DAO considers removing Llama
➕ MakerDAO votes to enhance its DSR
👛 Compound looks to renew CGP2.0
👨🏫 Marcos Joins as Head of Product
Let’s dive in 🏊
Are You Breaking Up With Me?
Aave DAO debates the removal of Llama as a service provider
The Aave Chan initiative submitted an ARFC proposal to cancel the payment stream to Llama, an active service provider at Aave responsible for Treasury Management, Growth, Analytics, and Protocol Upgrades
The proposal aims to immediately cancel Llama’s current contractual obligations with the DAO two months ahead of schedule and pass over the remaining deliverables and responsibilities to the ACI and TokenLogic.
Marc Zeller argues, “The Aave Chan Initiative (ACI) has evaluated the remaining funds in the Llama stream, which amount to approximately $240k (~$188k in USDC and ~$50k worth of AAVE). This is not about ‘only 2 months left’, but rather, ‘could the DAO allocate a quarter of a million dollars better than with Llama?’ We firmly believe the answer is yes.”
All Eyes on Growth
MakerDAO votes to enhance its DSR
The Maker community approved a governance poll to introduce an experimental growth hack for the DAI Savings Rate.
The 'Enhanced DAI Savings Rate' (EDSR) is a new design that aims to increase the effective DSR for users, promoting growth and utilization of the DSR.
It functions as a one-time, one-way temporary mechanism that decreases over time as DSR utilization increases providing more value to DAI holders.
Currently, the DSR at Maker is 3.49%, but with the new EDSR, it would cap at 8% and decrease over time as DSR utilization increases.
Grants R Us
Compound DAO looks to renew its Grants Program
Following the success of CGP2.0, Questbook has submitted a proposal to renew the Compound community grants program for an additional two quarters.
The proposal requests a budget of $970k to be allocated across three “domains”: Dapps and New Protocol Ideas, Multi-Chain/Cross Chain Strategy & Dev Tooling, and Security Tooling.
The current grant committee will remain the same and includes allthecolors, Doo Wan Nam (StableLab), and Michael Lewellen (Open Zeppelin)
❲ Links ❳
🚀 Launches & Deployments
Public Goods Network Goes Live on Mainnnet
📑 Insights & Reports
The Rook DAO Story: Postmortem of the $25M governance takeover
Mapping Reputation Systems in web3
The Future of Payments Includes Stablecoins
Examining the DeFi Stablecoin Landscape
The Balancer Ecosystem Launch Pad
Collateral Risk Assessment - wstETH
🧗 Milestones & Updates
The Future of Optimism Governance
Introducing Requests for Gants by Aave Grants DAO
Proposal to Extend dYdX Grants Progam v1.5
Maple’s Enhanced DAO Governance Process
🔒 Security & Hacks
Conic Finance Exploited for $4M
UniswapX and the DAO
Overview of the Roles & Responsibilities of Aligned Delegates at Maker
Introducing the Law of Chains
Raising the Aave Safety Module’s Slashing Percentage
dYdX v4: A Beginner’s Guide to Cosmos
Token House Participation and Incentives: An Extended Analysis
📺 Podcasts & Listens
Marin Tvrdić - Lido’s Dual Governance System on Decrypt
❲ Proposal Watchlist ❳
MakerDAO - Adjust Spark D3M Debt Ceiling
Summary: This proposal aims to increase Spark Protocol's current debt ceiling from 20M DAI to 200M DAI. The parameters 'Target Available Debt' and 'Ceiling Increasing Cooldown' will remain unchanged. This is the first of several proposed updates to enhance Spark's user experience by Phoenix Labs, in preparation for the eDSR changes coming to Maker.
Hop Protocol - Launch on Base Mainnet
Summary: This proposal aims to initiate discussions regarding the onboarding and full support of Base, a layer 2 solution, into the Hop ecosystem. The proposal suggests the creation of an incentive program for AMMs on Base, which would include 34k ETH per month and 24k USDC per month.
Rari Foundation - H2 2023 RARI Foundation Operational Budget
Summary: Here, the Rari Foundation requests 611,800 USDC for the operational budget of H2 2023. Included in the budget are DAO compensation, Vendor fees, Marketing, and a Contingency budget.
Aura Finance - Gnosis Chain Deployment
Summary: Here, Aura Finance continues its cross-chain deployment strategy by launching on Gnosis Chain. The proposed deployment would enable Gnosis Chain users ability to leverage the power of BPTs and veBAL.
Summary: This risk parameter proposal from Gauntlet aims to update the supply cap of four assets on the Compound v3 USDC market. In response to increased demand, the supply caps of the following tokens will be increased: WETH, WBTC, UNI, and LINK.
❲ From the Lab ❳
Welcome to the team Marcos!
Please give a warm welcome to Marcos, our newest team member! 🎊🥳
Marcos joins the StableLab team as the new Head of Product, bringing a wealth of knowledge and experience from his previous work on web3 products, including stablecoins and more. We are thrilled to have him join the StableFam. 🙏
Follow Marcos on Twitter (erm X?)
❲ This Week’s Voting ❳
📆 July 21st → July 27th | 🗳️ Total Votes: 19
See our full vote history and rationale here.
❲ Meme ❳
I’d love to hear from you! Drop me a DM on Twitter with your thoughts, feedback, or any comments you may have about the newsletter. I write for you, the reader :)
That’s it for this week. As always thanks for reading and subscribing to the Governance Lab