👨🔬 Governance Lab #029
Lab Report #029 - Sushi Bond Program , ATOM Monetary Policy, GHO Swaps, and more
Welcome back to the Governance Lab, your weekly source for all things DAO Governance, DeFi, and the latest from the StableLab team. Our Word of the Week this week is: “More”. More L1s convert to L2s. More DAOs vote to unwind. More grant programs launch. More protocol incentives. More tokenomics restructuring. More treasury management. This is what governance is all about. Enjoy.
At a Glance 👀
🍣 Sushi proposes launching Bond Program on Arbitrum
⚛️ Blockworks recommends ATOM changes
♻️ Aave DAO discusses treasury swaps for GHO
Let’s dive in 🏊
Wanna grab some sushi?
SushiSwap proposes launching a Bond Program on Arbitrum
SushiSwap's core team has submitted a proposal to launch a program on Arbitrum, aimed at generating protocol-owned liquidity. The program involves selling vesting $ARB tokens at a discount to users who purchase the bonds using LP tokens.
The proposal outlines various targeted outcomes, including turning the existing POL ARB into yield-bearing assets, deepening the liquidity of ARB on the Arbitrum network, enhancing the liquidity of blue-chip tokens on Arbitrum, and attracting more developers to the L2.
By offering bonds, SushiSwap allows protocols to acquire liquidity instead of renting, resulting in a reported average return on emissions of 80-90%. The proposal sets a maximum allocation of 12.5M ARB tokens per quarter, spread across up to four quarters, with a minimum ROE target of 80% throughout the sales period. Additionally, the team has requested a success fee of 5% of bond sales.
They split the ATOM
Blockworks recommend a shift in ATOM monetary policy
The Blockworks research team has published a forum post outlining recommendations for modifying the monetary policy of ATOM, the native token of the Cosmos Hub. These proposed changes aim to modernize and enhance the often controversial Cosmos Hub tokenomics. In July, Blockworks, and two other teams, were each awarded a research grant from the ATOM Accelerator DAO to reimagine the inner workings of the Cosmos Hub and its position within the Interchain.
The primary recommendation put forth by the Blockworks team involves a transition from the current dynamic inflation model to a static supply schedule. They suggest a revised inflation schedule that would gradually reduce the future supply of ATOM from around 600 million to approximately 500 million by the end of the decade. Additionally, future proposals are expected to address the future fiscal policy of ATOM.
Currently, ATOM operates on a dynamic inflation model based on the ATOM bond ratio. If the bond ratio exceeds 66%, inflation decreases, while it increases if the ratio falls below 66%. This model was implemented to ensure security and compete with DeFi. However, with the advent of liquid staking, this mechanism is now considered outdated. The high inflation levels have adversely impacted ATOM's value and its perception as a solid store of value. Moreover, the fluctuation in the bond ratio introduces uncertainty regarding the future supply of ATOM.
Just keep swapping
Aave DAO looks to swap treasury assets for GHO
TokenLogic has published a proposal to convert $1.6M from the DAO Treasury into GHO. This conversion aims to facilitate the transition towards utilizing GHO for covering the expenses of the DAO, which include payments to service providers and ongoing initiatives.
The proposal claims the swap of these assets will help improve the peg of GHO. Assets from the Treasury that will be converted include aDAI v2, aBUSD v2, aTUSD v2, aBUSD v1, aEthDAI v3, and aUSDT v2.
❲ Links ❳
🚀 Launches & Deployments
Long Live Paladin V2
📑 Insights & Reports
Optimism Superchain Governance Deep Dive Research
A New Approach to Reward DAO Delegates
Machiavelli for DAOs: Principles for Fixing Decentralized Governance
Machiavelli for DAOs: Designing Effective Decentralized Governance
Making Sense of the DeFi Lending Meta
The Maurauder's Map of Decentralized Stablecoins
Operating Manual for Decentralized Stablecoins
🧗 Milestones & Updates
Applications for RPGF 3.0 are now open
OpenZeppelin Security Updates for Q3 2023 & Q4 Compensation Proposal
Maple Finance Treasury Report Q2 2023
Fuji Finance is closing down
🔒 Security & Hacks
Balancer frontend attacked
🗞️ Miscellaneous
1inch DAO Grants Review Council
Experimental Incentive System for Active ArbitrumDAO Delegates
Spark Lend on zkSync
What’s Next for Maker SubDAOs
GroDAO Votes to Unwind
❲ Proposal Tracker ❳
Aave - Aave V2 Markets Deprecation Plan
Summary: This proposal aims to gradually phase out the frozen markets on Aave V2 Ethereum through a series of LT reductions. The proposal, submitted by Gauntlet, is a follow-up to numerous other related proposals to reduce risk in V2 markets and migrate users from V2 to V3. According to the proposal, Gauntlet and Chaos Labs will undertake a bi-weekly analysis and provide recommendations for each individual LT reduction. A Snapshot will be posted on September 25th.
Balancer - Maxi Funding Proposal Q4 2023
Summary: This proposal aims to secure funding for the Balancer Maxis until the end of 2023. Noteworthy in this proposal is the departure of Solarcurve from the Maxis. The updated core Maxi group now comprises Mike B, Zekraken, Xeonus, Zen Dragon, Danko, and Tritium. The proposal requests a budget of 168K USDC, 31K BAL, and 20 ETH. In response to the Balancer community's request, the Service Provider group will assume a greater role in community business development and sales.
Treasure DAO - Forming the Treasure Arbitrum Representative Council
Summary: This proposal aims to establish a Treasure Arbitrum Representative Council, which will play an active role in Arbitrum governance initiatives. The proposal argues that the formation of this council is necessary to accommodate and represent the size and influence of Treasure DAO in a proactive manner. The community-driven council will primarily focus on the discussion, design, implementation, sponsorship, and voting of various Arbitrum DAO proposals. The proposal suggests the formation of a 7-person council, with three core team members from Treasure serving as council members. These members will receive compensation of 3K ARB per month and serve a term of 6 months. It is worth noting that TreasureDAO currently holds the distinction of being the largest Arbitrum delegate, with over 27M ARB delegated.
RARI - Ecosystem Growth Fund
Summary: This proposal seeks to establish the RARI Ecosystem Growth Fund in order to promote adoption and accelerate ecosystem growth. The Ecosystem Growth Fund will be composed of three parts: Grants Allocation, Strategic Loans, and Strategic Partnerships. In total, the proposal seeks a 1.4M RARI distribution, with 250k allocated to grants, 800k to strategic loans, and 350k to strategic partnerships.
From the Lab
NY State of Mind 🗽
This week, catch us running around New York City for various events.
This Friday, Nneoma will be at Messari Mainnet, participating in a panel discussion titled "How to Fix the Sad State of DAO Governance". She'll be attending several side events. If you happen to come across her, say hi!
Prop 47 🦄
Uniswap governance has just approved a milestone proposal. Prop 47 introduces two valuable initiatives the UNI-ARB Grant Program and the Protocol Delegate Program. Doo will join the UAGP as one of the founding members to help distribute grants to projects contributing to the growth of both the Uniswap and Arbitrum ecosystems.
❲ Our Proposals ❳
🆕 New Proposals
👻 [TEMP-CHECK] Trialling Aave Governance Calls
Protocol: Aave
Summary: Our proposal aims to introduce bi-weekly community calls for the next two quarters. These calls will provide a platform to discuss recent and upcoming governance proposals and decisions. By doing so, we hope to foster a more engaged and informed Aave governance community.
Status: 💬 Discussion Phase
❲ Our Voting ❳
📆 September 16th → September 21st | 🗳️ Total Votes: 22
See our full vote history and rationale here.
Meme
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