Welcome back to the Governance Lab, your weekly source for all things StableLab, DeFi, and DAO Governance. Lots of chatter surrounding RWAs to end the year. DAOs are going on a governance hiatus or about to briefly pause for the holidays (and to recharge). Teams are gearing up for a wild 2024, and so are we. I hope you’ve enjoyed reading this publication throughout the year as much as I’ve enjoyed writing about the storylines, drama, and everything in between. Lots of work left to do so rest up and I’ll see you next year.
P.S. Governance Lab will return on Jan. 11th. Happy Holidays 🎉
At a Glance 👀
🫧 Osmosis considers OGP renewal
🏦 ArbitrumDAO discusses diversifying into RWAs
📐 Euler Foundation requests 2024 funding
Let’s dive in 🏊
Grants Program
Osmosis considers Osmosis Grants Program V3
Since 2022, the Osmosis Grants Program has successfully funded over 80 grants with $4.6M in funding, leading to growth and development within the Cosmos-based ecosystem. Now, the Osmosis community is considering a proposal to extend this program for an additional 12 months, implementing some adjustments and refinements along the way. OGP V3 aims to shift its approach, closing inbound grant applications and focusing on designing and implementing high-impact RFPs. This strategic shift allows the OGP to be more streamlined by issuing fewer generalized grants while identifying suitable providers for the proposed RFPs. The proposal outlines three main categories of focus, including Core Product Roadmap Initiatives, Osmosis Ecosystem Development, and High Priority Cosmos Development. Additionally, the OGP plans to kickstart an initiative to partner with market-maker providers to source liquidity for projects.
Spearheading the operations of the program are Program Leads RoboMcGobo, Kam Benbrik, Max Einhorn, and Reverie, supported by a seven-person reviewer committee. The proposal outlines a total budget request of $9.2M, with $2.2M allocated for grants and $7M designated for market maker inventory. Currently, the Osmosis community is debating the contents of the proposal, with some concerns raised regarding the Market Making initiative.
Endowment Program
ArbitrumDAO discusses diversifying into RWAs
ArbitrumDAO is currently exploring plans to venture into Real World Assets. The proposal, titled "Arbitrum’s Stable Treasury Endowment Program," presents a framework for the DAO to diversify 10 or 25M ARB into stable and liquid real-world assets, such as treasury bills and other money market assets, launched natively on Arbitrum One. The proposal, drafted by the Arbitrum Treasury and Sustainability Working Group, seeks to diversify the Treasury which holds around 3.5B ARB, a significant amount of native tokens.
By diversifying into RWAs, the proposal seeks to earn a risk-free rate of return through highly liquid assets that can be reclaimed by the DAO at any time. Additionally, adopting RWAs will not only support this new type of financial product but also establish Arbitrum as a leading platform for RWAs. STEP 1 also serves as the initial seed for the creation of an Arbitrum Endowment Fund, which will utilize the interest earned from these assets.
Currently in the discussion phase, the proposal has a timeline that spans several months before full implementation. If this initial proposal is approved, a service provider will also be vetted and sourced through a voting process. The proposal lists five potential candidates for consideration: Ondo Finance, Backed Finance, Centrifuge, Mountain Protocol, and OpenEden TBILL.
❲ Links ❳
🚀 Launches & Deployments
Gearbox v3 is live
📑 Insights & Reports
oSnap: A case for off-chain governance?
DAO Challenges: Insights from the Governance Geeks
Liquid Restaking Tokens: A New Frontier for Yield
Preparing Optimism for the Superchain Future
Decentralizing DeFi Frontends
How to Measure Risk Models (Part I)
🤝 Integrations, Partnerships, & Raises
Fyde Treasury Protocol raises $3.2M
🧗 Milestones & Updates
Aave Governance v3 Slightly Delayed Again
ENS November Treasury Report
Curve Vote for Summer Hack Recovery
MakerDAO Market Conditions and Competition Analysis December 2023
🗞️ Miscellaneous
1inch Anthias Labs Delegate Dashboard
Introducing smkUSD
Frax DAO approves onboarding $20M onto Centrifuge
Gnosis DAO: Should the GnosisDAO onboard into Centrifuge Prime?
Stargate: Integrate Stargate with Near via Aurora
MakerDAO: Updated Rate System
dYdX: Add TIA-USD
❲ Proposal Tracker ❳
💬 Euler - Euler Foundation Operational Funding
Summary: This proposal aims to secure funding for the Euler Foundation for an additional 12 months, amounting to 400K USDC and 5K EUL. The primary purpose of these funds is to cover the operational and administrative expenses associated with the DAO. These expenses encompass a range of services, including legal counsel, professional directors, service firms, and technical infrastructure providers. The proposal also emphasizes the Foundation's commitment to providing quarterly statements to the Euler community.
💬 Balancer - Grants DAO Service Provider Proposal Q1 2024
Summary: This proposal aims to renew the engagement between Balancer DAO and the Balancer Grants DAO service provider for Q1 2024. Since 2022, the Balancer Grants DAO has been instrumental in running the community grants program funding and growing the Balancer ecosystem. With the upcoming release of V3, this proposal seeks to secure continued funding for the program. The proposal focuses on several key areas including Analytics, Custom Pool Types, Education and Tooling, Research, Swap Aggregators, Wrappers/Infrastructure, and Yield Aggregators. The Balancer Grants SP comprises 5 contributors, consisting of 1 Lead and 4 Reviewers. Overall, this proposal requests a transfer of 35,300 USDC and 0.5 ETH to sustain the Grants SP until March 31st, 2024.
💬 Uniswap - Deploy Uniswap v3 on Rootstock (Bitcoin Sidechain)
Summary: This proposal aims to secure approval for the deployment of Uniswap v3 on Rootstock, the first Bitcoin sidechain. Rootstock operates as an independent blockchain, utilizing Bitcoin's security measures, while also providing an RSK Virtual Machine, an environment EVM compatible. IOV Labs, the research and development firm actively contributing to the development of Rootstock, has been working in close collaboration with GFX Labs and Wormhole to facilitate the eligibility for this deployment. Oku Trade, developed by GFX, will serve as the initial front-end interface through which users can seamlessly interact with this deployment. Additionally, Wormhole will play a crucial role in enabling cross-chain messaging. The proposal outlines Rootstock's commitment of $3M in tokens, dedicated to ensuring sufficient liquidity. Approval of this proposal will recognize the already deployed smart contracts as the canonical implementation.
💬 Sushi - Treasury Diversification through Fyde Protocol
Summary: This proposal aims to enhance the diversification of the Sushiswap treasury by depositing holdings into a Fyde Liquid Vault. Fyde Treasury is a protocol offering treasury management strategies for DeFi protocols. The Fyde Liquid Vault is a diversified yield-bearing LST-backed product developed by Fyde, granting depositors instant and seamless exposure to various assets. The proposal outlines a 4-6 month pilot program where 0.35% (44,500) of SUSHI treasury holdings will be deposited into Fyde. Fyde will charge a 1% annual fee for this service. Currently, the proposal is under discussion and being voted on in an informal forum poll to gauge sentiment.
From the Lab
Delegate Roles and Responsibilities with SafeDAO 🫡
On Tuesday, we hosted a Spaces with SafeDAO discussing delegate roles and responsibilities. Learn from our team of delegates who share their insights and experiences across the various DAOs they contribute to. Listen back to the recording below!
Delegate to us at Ajna Finance 🪬
Ajna Protocol redeploys soon! We’re excited to be among the first group of delegates helping steer the Grants Process at Ajna, the innovative oracle-free lending protocol. If you’re an AJNA tokenholder, consider delegating to your favorite governance team at stablelab.eth. 🙏
❲ Our Voting ❳
📆 December 15 → December 21 | 🗳️ Total Votes: 37
See our full vote history and detailed rationale HERE.
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