Discover more from Governance Lab
👨🔬 Governance Lab #026
Lab Report #026 - GHO Freeze, Aave Treasury, Liquidity Observation Lab, Redacted x Mantle Partnership, and more
gm frens welcome back to the Governance Lab, your weekly source for all things StableLab, DeFi, and governance. RWAs are seeping into DeFi, it almost seems inevitable at this point. People are debating service provider agreements, peak Bear Market things. Strategic partnerships continue on pace as protocols abandon and form new alliances in order to bootstrap liquidity and adoption, and a pretty interesting liquidity incentive program is set to begin soon at Uniswap.
All this and more below, enjoy. 🤖
At a Glance 👀
🥶 Aave freezes GHO while debating treasury moves
💧 Steakhouse proposes the Liquidity Observation Lab at Lido
♻️ Gauntlet seeks renewal at Compound
🦋 Redacted poses partnerships with L2 Mantle
Let’s dive in 🏊
Let it GHO
GHO minting gets frozen while Aave DAO debates treasury changes
On August 24th, Aave Companies announced a temporary pause on GHO minting due to an integration issue. Shortly after, an AIP was posted by BGD Labs to unpause and freeze borrowings for the stablecoin as they work on a proper fix. On Wednesday, a new proposal to address the underlying technical issue and reduce the borrowing limit of GHO to 35M passed a vote. Separately, there is an ongoing proposal on Snapshot to increase the GHO borrow rate. See details below.
Aave DAO is keeping itself busy as it works through a handful of treasury management proposals to strengthen the platform. Below is a quick outline:
Views from the Observation Lab
Steakhouse proposes reWARDS Committee revamp at Lido
Steakhouse has presented a proposal to replace and streamline the existing reWARDS Committee at Lido DAO, aiming to better support the development and longevity of stETH applications.
According to the proposal, the Liquidity Observation Lab (LOL) would replace the old committee and focus on three things: 1) boost liquidity in stETH applications, 2) help applications that can enrich the stETH ecosystem, and 3) promote liquidity measures across different applications.
The proposal looks to improve on the current committee’s mandate of tracking and deploying incentives for Lido assets by increasing focus on analytics and impact analysis, driving more incentives to fewer higher impact projects, better tracking of incentive activities for accountability, and the removal of LDO as token incentives.
Gauntlet submits renewal proposal at Compound
Gauntlet has submitted a proposal to renew their existing risk service provider engagement at Compound for an additional 12 months. The risk service manager has contributed to Compound since 2021 helping the protocol maximize its capital efficiency while mitigating risk.
Gauntlet's proposal seeks to expand their engagement by extending their existing coverage to include not only current and upcoming markets in Compound III and Compound II, but also Arbitrum, Polygon, and Base.
The proposal outlines the outcomes and expectations of the engagement, including improving value at risk, liquidations at risk, and borrowing power, and providing risk parameter change steps, dynamic risk dashboard, and market downturn risk reviews.
The proposed service fee for this new engagement is $2M ($1.8M last year) to be paid entirely in COMP.
Stake With Me
Redacted seeks partnership with Mantle
Redacted Cartel, the DAO building the Redacted ecosystem, has submitted a proposal to form a strategic partnership with the Mantle Network.
To foster the expansion of their new LST pxETH, as well as their upcoming DINERO stablecoin protocol, Redacted’s proposal entails staking 50K ETH into pxETH (Pirex's LST), establishing pxETH pairings with Mantle's LST, and choosing to send batch transactions through Redacted's private mempool.
The proposal claims to optimize utility for Mantle blockspace, address the lack of liquidity and flexibility in staking Ether, and offer unprecedented utility for staked Ethereum.
❲ Links ❳
🚀 Launches & Deployments
1inch live on Base
Introducing Hats: The Onchain Roles Protocol
SuperRare’s NFT Curation Staking Protocol Goes Live
📑 Insights & Reports
🧗 Milestones & Updates
MakerDAO Governance Changes
Proposed Spark Pre-farming Airdrop Formula
Welcoming Base to Optimism Governance
Balancer DAO H1 2023 Treasury Review
Index Coop Q2 2023 Update
PoolTogether Upgrades to Governor Bravo
🔒 Security & Hacks
Balancer Exploited for 900k
Notion Resource: Crypto-Economic Governance Design
A Note on the Future of the Cosmos Hub
Lido on Cosmos: Initial Deployment
OP Governance Analytics Dashboard
Nethermind Technical Grant Analysis at 1inch
compUSD: Reserve x Compound
Request for Delegates at Connext Network
Aave: TokenLogic Proposal
📺 Podcasts & Listens
Lucas Manuel: MakerDAO Endgame at Chainsafe
Charles d'Haussy: Inside dYdX Cosmos and the Mainnet Launch on Bare Metal Podcast
❲ Proposal Tracker ❳
98.36% ‘Yes Deploy V2’
🟩 PASSED | YIP-75: Launch V3
100% ‘Yes’ Voting Ends on Sep 1st at 23:47 UTC
🗳️ LIVE | [ARFC] Increase GHO Borrow Rate
100% ‘YAE’ Voting Ends on Sep 2nd at 18:43 UTC
Rocket Pool - GMC Treasury Diversification
Summary: This proposal seeks to diversify the Grants Management Committee treasury by converting incoming monthly payments of RPL to USDC. The GMC currently receives 3,275 RPL per month for grant distribution. According to the proposal, 20% of these funds would be swapped to USDC in order to attract more applicants through the use of stablecoins.
Summary: This proposal seeks to establish a well-defined framework and selection process for service providers at Aave DAO. The objective is to implement a competitive bidding system that ensures the DAO obtains the most favorable rates and services available in the market. Under the proposed framework, Vendor-specific Engagements (VSE) would be introduced for engagements with a specific focus and treasury request ranging from $100K to $250K. Core Protocol Contributor (CPC) encompasses proposal requests over $250K and involves selecting from a pool of vendors in a competitive market.
Stargate DAO - Stargate Foundation 12-month Budget Proposal
Summary: This proposal aims to approve a 12-month budget for the Stargate Foundation. The proposal requests a total of $1.8M, split evenly between USDC and STG tokens. The allocated budget will be utilized for dedicated support, technical assistance, legal services, marketing initiatives, and other essential operational expenses.
Aave - sDAI Onboarding
Summary: This proposal suggests onboarding sDAI as a collateral-only asset into the Aave V3 Ethereum pool. By integrating the liquid DSR deposit token into Aave V3, Aave users will benefit by earning DSR yield while simultaneously leveraging their assets as collateral. The proposal outlines the specific parameters that need to be adjusted in order to integrate the asset.
Summary: Here, Gauntlet and Gamma Strategies have submitted a joint proposal to fund, analyze, and execute an ARB liquidity incentive program at Uniswap. The proposal outlines a collaborative effort among various entities and protocols including Gauntlet, Angle, Arrakis, Open Block Labs, and 0xPlasma, to deploy LP rewards in an efficient and effective manner. In total, the proposal requests 2M ARB, with 1.835M ARB allocated to a multisig for the distribution of rewards, 150K paid to Gauntlet, and 15K allocated to OpenBlock Labs for their analysis work.
From the Lab
📜 Kene Web3 Lagos
This week, Kene is heading to Lagos, Nigeria for the annual Web3 Lagos Conference. On Friday he will be delivering a presentation on the value of governance smart contracts. If you happen to be in the area, don't miss the chance to drop by and say hello! 🤝
💯 1500 Governance Votes
We’ve officially crossed the 1500 governance vote mark!!
It’s been a red-hot summer for governance proposal activity. Hope you’ve been keeping up
❲ Our Proposals ❳
✅ Proposals Passed
Result: 87% ‘YES’
❲ Our Voting ❳
📆 August 25th → August 31st | 🗳️ Total Votes: 25
See our full vote history and rationale here.
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