👨🔬 Governance Lab #042
Lab Report #042 - Aave GSM Launch, Starknet v0.13.0, Morpho Blue, Arbitrum LTIPP, dYdX Validator, and more
Hello friends! 👋 Happy New Year and welcome back to the Governance Lab, your weekly source for all things StableLab, DeFi, and DAO Governance. This is the first issue of 2024 and the team at StableLab is super excited for the content we have planned to bring you this year. Can’t wait.
We’ve hit the ground running on governance. ETF mania aside, we have protocol upgrades, increased funding, reorgs, asset listings, governance improvements, and much more. As always, enjoy!
At a Glance 👀
👻 Aave DAO votes on GSM Launch Parameters
🐺 Starknet passed v0.13.0 mainnet upgrade
🦋 Morpho DAO granted ownership over Morpho Blue
🏆 Introducing the Arbitrum Long-Term Incentive Pilot Program
🥩 Stake with StableLab at dYdX
Let’s dive in 🏊
Paypal
Aave DAO votes on GHO Stability Module launch and PYUSD support
Aave DAO is currently voting on a proposal to officially launch the GHO Stability Module, along with its initial launch parameters. This module, inspired by MakerDAO's PSM, acts as a peg-stability mechanism to support the stability of GHO, Aave's stablecoin. The community is currently deliberating between two choices in the Temp Check proposal. Option A involves deploying the GSM while keeping the swap functionality on hold. This approach takes into consideration the ongoing efforts to restore GHO's peg to $1, offering a more cautious and measured strategy. On the other hand, Option B suggests an immediate deployment and activation of the GSM with specific parameters. Once the proposal has been approved an AIP will be presented and voted onchain.
Aave DAO is also currently evaluating a Temp Check proposal to onboard PYUSD, PayPal's stablecoin (backed by Paxos), on Aave v3. As of now, the proposal has completed the initial Temp Check phase, with an ARFC phase still pending before final onboarding.
Alpha
Starknet DAO passes v0.13.0 mainnet upgrade
Starknet DAO has successfully passed a proposal to implement Alpha v0.13.0, the latest mainnet protocol upgrade that establishes the foundation for several key features. This upgrade brings important changes, including a new transaction version that effectively reduces transaction fees by 25-50%. Furthermore, it paves the way for utilizing STRK, the native token, as the gas fee token. For now, ETH will remain the primary form of fee payment. Later this year, important milestones are expected such as enabling the token transferability of STRK and a 1.8B token community airdrop.
Blue
Morpho DAO recieves ownership of Morpho Blue
Morpho Association, the primary contributors and creators of the lending protocol, submitted a proposal to transfer ownership of Morpho Blue to the DAO multisig. Morpho Blue is the latest innovation in trustless lending platforms, offering users permissionless risk management and oracle agnostic pricing. This ownership transfer empowers the DAO to govern various protocol functions, including the activation of new IRMs and LLTVs, establishment of per-market fees, fee recipients, and overall ownership. The proposal and subsequent ownership transfer were officially ratified on January 6th.
❲ Links ❳
🚀 Launches & Deployments
Ajna Finance is live
Morpho Blue is live on Mainnet
Introducing Radiant v3
📑 Insights & Reports
The State of Private Voting in Ethereum
War and Peace: Behind the Scenes of Euler’s $240M Exploit Recovery
Wintermute DeFi Governance Digest January 2024 | Week 2
How DAO Governance Experiments Can Scale Coordination – pt.3
🧗 Milestones & Updates
Announcing RetroPGF Round 3 Recipients
Optimism RetroPGF3 Retro from Agora
MakerDAO Protocol Economics Report Nov 2023
ENS DAO Protocol Economics Report Dec 2023
Optimism Foundation Mid-Year Budget Update
🔒 Security, Risk, & Hacks
Gamma Strategies exploited for $6M
Security and Governance Considerations for Chain Clusters
🗞️ Miscellaneous
Aave - Updated Aave Grants DAO Continuation Proposal
Balancer - Business Development Service Provider
Push Protocol Roadmap 2024
1inch DAO Legal & Regulatory Compliance Services
Stargate DAO Arrakis Palm
Cosmos votes to reduce ATOM’s min inflation
Osmosis votes to burn OSMO
dYdX Launch Incentives Season 1
The Story of Ajna Finance
DeFi Developments to Watch in 2024
Introducing the Arbitrum DAO Governance Newsletter
📺 Podcasts & Listens
Getty Hill (GFX Labs) Building at the Forefront of DeFi and Governance
❲ Proposal Tracker ❳
⚡ Morpho - Incentives in USDC(wstETH) and WETH(wstETH) markets
Summary: Lido DAO’s Liquidity Observation Lab aims to distribute 132 wstETH as incentivizes to wstETH markets on Morpho Blue. The proposal will follow a standardized method of distributing incentives on Blue markets described here.
💬 Balancer - Business Development Funding Proposal Q1-2024 and Retroactive Q4-2023 Funding
Summary: This proposal aims to establish and fund a Business Development Service Provider at Balancer DAO. The BDSP will facilitate the ongoing and future growth of Balancer by focusing on partnership development, protocol expansion, ecosystem engagement, and market analysis. The BDSP will consist of two members: json, an existing contributor who made significant contributions to BD in Q4 2023, and lipman, a new part-time contributor who will join the team once the proposal is approved. The proposal seeks a total of 20K USDC and 0.3 ETH to support a 3-month engagement.
💬 Compound - Deploy Compound III on Scroll
Summary: This proposal seeks to deploy Compound v3 on Scroll mainet, an EVM-equivalent ZK-rollup. The objective is to deploy a "Minimum Viable Product" instance of v3, initially focusing on the USDC market with several potential collateral options, such as WETH, WBTC, and wstETH. The proposal takes a measured and conservative approach to establish a solid foundation for a long-term relationship and future scalability. To facilitate this deployment, a formal request is being made for a Business Source License.
💬 Lido DAO - wstETH Deployment on Starknet
Summary: Here, StarkWare suggests deploying wstETH onto Starknet by Lido DAO recognizing the established wstETH bridge as canonical. Currently, Starknet employs its solution, StarkGate, as a wstETH bridge. This proposal aligns with the recent trend at Lido to formally acknowledge and transfer ownership of cross-chain instances of wstETH bridges over to Lido DAO.
From the Lab
Long-Term Incentives Pilot Program 👨✈️
We’re excited to introduce the Long-Term Incentives Pilot Program at Arbitrum. Building on the success of STIP V1, this program serves as a test run to familiarize the Arbitrum community with what a longer-term incentive initiative may look like. LTIPP will run for 12 weeks and looks to implement new structures such as a Council and Application Advisors aimed at streamlining the process and alleviating the workload for delegates and the community. StableLab is proud to continue serving the Arbitrum community and will be included in the proposal as program manager. Voting is now live on Snapshot.
If you’re interested in applying to join the Council or as an Application Advisor see here.
To get involved and join the LTIPP conversation see here.
Stake with StableLab 🥩
Stake with us! We’ve just deployed a validator on dYdX v4. We're actively seeking stakers to help us expand our reach within the active set. Currently, we have approximately 40k DYDX committed to our cause and are looking for an additional 40k to achieve our goal. By staking with us, you'll contribute to the advancement of governance and strengthen validator diversity.
👉 Stake to our validator here
❲ Our Voting ❳
📆 Jan 05 → Jan 11 | 🗳️ Total Votes: 19
See our full vote history and detailed 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 :)
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