👨🔬 Governance Lab #038
Lab Report #038 - Aave DAO Financial Services, Cosmos Inflation, ApeChain, and more
… and we’re back. Welcome back to the Governance Lab, your weekly source for all things StableLab, DeFi, and DAO Governance. As the holiday season approaches, one might expect a slowdown, but in the world of DAO governance, the activity is non-stop. Calls for hard forks, approval of governing councils, onboarding of service providers, emergence of new rollups, and countless other developments below.
At a Glance 👀
🤝 Aave DAO votes to onboard Karpatkey x TokenLogic
🪐 Cosmos reduces inflation rate, hard fork discussion ensues
🔴 ApeChain A-Team Assembles, Optimism Superchain a possibility
🎙️ New StablePod episode w/ Matt Dobel (Gauntlet)
Let’s dive in 🏊
Financial Services
Aave DAO votes to add Financial Service Providers
Aave DAO is currently deliberating on a joint proposal that aims to introduce Karpatkey and TokenLogic as the designated financial service providers. According to the proposal, the partnership would span an initial period of 180 days, with a total budget of 400K GHO. Together, TokenLogic and Karpatkey will manage the DAO’s treasury, covering crucial areas such as Treasury Management, Strategic Assets’ Liquidity, and Safety Module.
The proposal emphasizes the reason for this collaborative approach to comprehensively address the interconnected nature of the DAO's financial operations. Karpatkey brings their expertise in professional DAO finances, encompassing planning, operations, strategy, and treasury management. On the other hand, TokenLogic, born out of Aave, has made significant contributions in various capacities. It is worth noting that their previous solo service provider proposal at Aave DAO was canceled earlier this year.
However, there has been some feedback in the forums expressing concerns about the bundling of different scopes, the necessity for clearer KPIs, and the uncertainty surrounding the future of the GHO Liquidity Committee.
Grab a Fork
Cosmos reduces inflation, critics call for a hard fork
Last week, the Cosmos Hub community approved a reduction to the max inflation parameter for its native token ATOM from 20% to 10%. This reduction lowers the staking rewards earned by validators helping secure the network from 19% to 13.4%. Changes to the ATOM inflation were motivated and initiated based on research conducted by Blockworks that found Cosmos to be overpaying for its security.
In response to the inflation adjustment, Jae Kown, the founder of Cosmos, has initiated efforts to hard fork the Cosmos network. This proposed new chain, named AtomOne, would distribute ATOM1 tokens to existing Cosmos stakers.
Monkey Business
ApeCoin DAO receives proposition to join the Optimism Superchain
Ben Jones, Co-founder of Optimism, has presented a proposal to the ApeCoin community. The proposal extends an invitation to launch the ApeChain, a Layer-2 rollup, on the Optimism Superchain. In his proposal, Ben highlights the numerous benefits that come with establishing an L2 on the Superchain. These advantages include seamless deployment and maintenance, a voice within the Optimism community, a potential revenue stream, and access to innovation. The proposal emphasizes the presence of other prominent teams actively building within this network, such as OP Labs, Base, Zora, Worldcoin, Risc0, and more.
Additionally, a separate but closely related proposal has been submitted seeking approval to form a special community task force known as the "ApeChain A-Team." This task force will be responsible for conducting research, overseeing deployment, and managing the forthcoming ApeChain launch. Members of this group include Nicholas Lin (former EF), Jimmy X (from Velodrome), Rooter (from Solend), Ripleys (former Two Sigma), and others. The proposal suggests two potential routes to cover costs: launching an ApeChain token or providing funding through ApeCoin grants.
❲ Links ❳
🚀 Launches & Deployments
Announcing JTO: The Jito Governance Token
Stakewise v3 is live on mainnet
crvUSD live on Aave
📑 Insights & Reports
Risk Management Framework for DeFi Protocols
RetroPGF: To Infinity And Beyond!
Aera Protocol: Behind the Scenes
The Governance Flywheel
🤝 Integrations, Partnerships, & Raises
Contango x Spark Protocol
🧗 Milestones & Updates
MakerDAO Protocol Economics October Report
dYdX launches $20M in incentives
Update on the initial unlock of DYDX
GHO repegs
GHO Liquidity Committee: First month report
AGD Grantees Sep & Oct 2023
🔒 Security, Risk, & Hacks
KyberSwap exploited
Indexed DAO Governance Attack Thwarted
Element Finance Council LockingVault Vulnerability: Post-Mortem
Compound Comet Vulnerability Disclosure
🗞️ Miscellaneous
Prisma Finance: Peg keeping mkUSD
Lido: Tally Research Grant
PancakeSwap: Launch veCAKE
Optimism: AI Assistant for Governance Support
Arbitrum: Reframing Incentives on Arbitrum
Hedgey Finance - Arbitrum STIP Dashboard
📺 Podcasts & Listens
Rune Christensen: Crypto Problems, T-Bills, Maker Rebrand, and more on the Defiant
Ben Jones: The Collective Becomes Self-Aware at Onchain Summit
❲ Proposal Tracker ❳
⛓️ Arbitrum - Proposal to Backfund Successful STIP Proposals
Current Results: 62% ‘FOR’ Vote Ends: Dec. 2nd
⛓️ dYdX - Launch a Social Mitigation Strategy for MEV
Current Results: 47% ‘YES’ Vote Ends: Dec. 3rd
⚡ Aave - Gauntlet Renewal 2023
Current Results: 64% ‘YAE’ Vote Ends: Dec. 1st
⚡ Aave - Upgrade Safety Module with StkGHO
Current Results: 84% ‘YAE’ Vote Ends: Dec 1st
Summary: Here, Marc Zeller proposes upgrading the Safety Module by reducing the safety incentives of StkAAVE and StkBPT, creating a GHO safety module, and introducing the StkGHO stablecoin asset. This enhancement to the Safety Module intends to further mitigate risk and provide protection against shortfall events. The proposal outlines a targeted liquidity pool of 9M GHO with an APR range of 12-15%.
✅ Gearbox - V3 Governance Framework
Summary: This proposal aims to enhance the existing governance framework at Gearbox DAO, to better equip the community for a potential L2 expansion in 2024. The proposal outlines three key upgrades to accomplish this goal: a reshuffling of the Guards, the establishment of a Veto Admin role, and the inclusion of a Fee Treasury multisig. The first upgrade focuses on rearranging the signers on the timelock 6/12 multisig, replacing them with more active and committed individuals. The second upgrade involves the creation of a 3/12 emergency response multisig, responsible for detecting and preventing any erroneous or malicious transactions. Lastly, the final upgrade introduces a new multisig to manage the extra fees generated by V3, keeping them separate from the foundation's operational budget.
💬 Balancer - Ensuring continued balance in DAO snapshot votes
Summary: This proposal seeks to address a growing imbalance in vote distribution and governance participation at Balancer. The proposal suggests capping the maximum voting power of any individual Snapshot voter to 40-45%. The proposal notes the power and influence that Aura has amassed and seeks to diversify and encourage a more diverse set of participants through structured programs.
💬 Lido - wstETH on Linea
Summary: This proposal seeks formal community recognition of the deployed wstETH token as canonical on Linea along with a transfer of ownership of the wstETH bridge contracts to the Lido DAO. Linea is a zkEVM L2 incubated by Consensys and launched in July with a TVL of over $140M. The integration proposal claims to help drive further adoption and utility of wstETH, improving the user experience. The proposal outlines technical implementation timelines, design details, ownership breakdown of the contracts, and more.
From the Lab
Inside Gauntlet: The Future of DAO Service Providers 🎙️
On the latest episode of StablePod, we chat with Matt Dobel, Head of BD at Gauntlet. During our conversation with the leading Risk Management Service Provider, we dive into Gauntlet’s B2D approach, how to help DAOs mature, how we can improve the Service Provider framework, and much more.
Maker SubDAOs: Unlocking Scalability 🔓
Dive into our latest report on the scalability of MakerDAO and DAOs more generally. SubDAOs are revolutionizing Maker by introducing innovative and ingenious incentive designs. While Maker Core remains static, true innovation and experimentation lie at the periphery within SubDAOs.
❲ Our Voting ❳
📆 Nov 17th → Nov 23rd | 🗳️ Total Votes: 18
📆 Nov 24th → Dec 30th | 🗳️ Total Votes: 16
See our full vote history and detailed rationale HERE.
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