👨🔬 Governance Lab #043
Lab Report #043 - GHO Cross-Chain and Staking-as-a-Service, Arbitrum LTIPP Elections, Optimism S5 Missions, and more
Hey frens welcome back to the Governance Lab, your weekly source for all things StableLab, DeFi, and DAO Governance. Trying out some new things below. Let me know if you love or hate it by replying to this post or sending me a DM.
At a Glance 👀
⚔️ Aave DAO discusses GHO Cross-Chain Strategy and Staking as a Service
💼 Arbitrum DAO approves LTIPP snapshot
🔴 Optimism Collective welcomes Season 5 with dozens of Mission Requests
Let’s dive in 🏊
Crossing the Frontier
Aave DAO discusses GHO Cross-Chain Strategy and Staking as a Service
STORY: On Wednesday, Aave Labs presented a proposal outlining the strategy for GHO across multiple blockchain networks. The goal of this proposal is to enhance liquidity, accessibility, and interoperability by expanding GHO support across various networks. To support this initiative, GHO will leverage Chainlink's CCIP infrastructure, a cross-chain communication bridge. Should the ARFC proposal be approved, additional technical implementation steps and analysis will be scheduled, followed by a vote to select the initial network of deployment.
Also at Aave, the Aave Chan Initiative introduced 'Frontier', a Staking as a Service product for the Aave DAO. The proposed service aims to utilize Aave's LST holdings to operate Ethereum validator nodes, thereby enhancing the DAO's passive income. To ensure the safety of this experiment, the ACI has suggested covering any potential losses resulting from slashing. A total of 128 wETH from the treasury is requested to set up 32 Stader minipools, each with 4 ETH.OUR TAKE: “The battle to achieve GHO re-peg is fought on two fronts. Firstly, the DAO's service providers and delegates engage in thoughtful deliberation on parameter adjustments and the design of the GHO Stability Module. These changes require extensive research and constant iteration. Secondly, this proposal takes a significant stride towards facilitating cross-chain distribution for the GHO Stablecoin. By making GHO accessible to users through various protocols across multiple chains, we ensure that the economic research behind GHO parameters is supported by user-driven demand for the stablecoin.” - Kene, Aave Delegate
“The Frontier proposal is a great example of leveraging the DAO's existing assets to create additional value. By leveraging Aave DAO's large Liquid Staking Derivative Token holdings to create additional yield, the DAO not only generates additional yield but also assumes an active role in the LST ecosystem. The proposed approach by the Aave Chan Initiative is a great conservative and calculated way to test the viability of the Aave DAO’s participation as a validator.” - Kene, Aave Delegate
Councils and Advisors
Arbitrum DAO approves initial LTIPP vote now votes on Council and Advisors
STORY: On Tuesday, Arbitrum DAO voted to approve the Long Term Incentives Pilot Program, allocating 45M ARB in incentives. The proposal 'Fund Program with 45M' received the highest number of votes, with 103M, followed by 'Fund Program with 25M' with 70M votes. The next item on the LTIPP agenda is the election of Council members and Application Advisors, which is currently open live on Snapshot until Jan 23rd. Additionally, the main proposal will be updated based on community feedback before it is placed on Tally for an onchain vote to confirm it sometime in the coming days.
OUR TAKE: “After months of community feedback, we are excited to see the Pilot Program move forward, a significant milestone we believe will bring real sustainable growth for the Layer 2. We look forward to seeing the proposal on Tally early next week and are excited by the caliber of contributors who seek to fill the Council and Advisor positions.” - Matt, Arbitrum Delegate
Request Me
Optimism Collective kicks off Season 5, Mission Requests pour in
STORY: The Optimism Collective is back into the swing of things with Season 5. Notable changes in Season 5 include the implementation of the Security Council responsible for enacting protocol upgrades, and the addition of the Citizens’ House to enact a truly bicameral governance process allowing them to veto upgrades. Additionally, Mission Requests have begun pouring into the Optimism forums. Mission Requests are initiatives that work towards one of the defined Intents. Season 5 runs from January 5th till May 8th, 2024.
OUR TAKE: “As Season 5 commences at Optimism, StableLab is eagerly monitoring the multitude of diverse and captivating missions being submitted. Our focus lies particularly on Intent 4 missions, as we strive to fulfill these Governance Intent Missions. Additionally, we are excited to witness the long-awaited introduction of the bicameral process and observe its potential impact.” - Matt, Arbitrum Delegate
❲ Links ❳
📑 Insights & Reports
Classifying Proposals of Decentralized Autonomous Organizations Using Large Language Models
Dagon: Governance Abstraction
Knowledge Networks and the Politics of Protocols
A Responsible Decentralized Technical Governance Ecosystem
Crypto’s Three Body Problem
🧗 Milestones & Updates
dYdX Annual Ecosystem Report 2023
Blueprint for Launching a Shutter DAO
Osmosis Grants Program Renewed
🔒 Security, Risk, & Hacks
Introducing SparkLend Risk Model
🗞️ Miscellaneous
Aave V3 BNB Activation
Gauntlet’s Uniswap Protocol Fee Report
dYdX Protocol V3.0 Upgrade
UniGov Grant Spotlight
TEMP CHECK Gitcoin Labs
📺 Podcasts & Listens
A Q&A with Rune Christensen of MakerDAO
❲ Proposal Tracker ❳
✅ CowSwap - Testing Fee Models for CoW Protocol
Summary: This proposal seeks community approval for a 6-month testing period, dedicated to exploring diverse fee models to generate revenue for the CoW Protocol. The primary objective is to establish the protocol's financial self-sustainability. The proposal suggests testing various fee models, including quote improvement fees, surplus fees, volume-based fees, fixed fees, and any other innovative ideas that may arise during this period. The accumulated fees will be utilized to foster the growth of CoW DAO through future proposals. The fees will be held in a new Safe and managed by the Treasury team.
💬 ENS - Commence Streams for Service Providers
Summary: This proposal aims to establish funding streams for Service Providers who were previously approved by the ENS DAO. A total of $3.6M will be disbursed among 9 different teams, including Wildcard Labs, ETH.LIMO, Blockful, Namespace, and more. The objective of this proposal is to initiate the necessary technical transactions via Superfluid to enable these funding streams. To receive funding, teams must complete KYC procedures and enter into a service provider agreement with ENS Labs.
💬 Alchemix - Deposit to Spark
Summary: This proposal seeks approval to deploy $150K worth of ALCX from the treasury into a lending pool on SparkLend. The lending market will be supplied with DAI, allowing users to deposit DAI and borrow ALCX or vice versa. The proposal asserts that this initiative enhances the utility of the ALCX token and generates additional income through interest payments. Additionally, it highlights the potential benefits of receiving the upcoming SPRK airdrop.
💬 Euler - Make Euler Great Again
Summary: This proposal introduces a token split and a new ticker for EUL, the native token of Euler. The main objective is to rejuvenate the protocol and enhance its brand in preparation for the upcoming relaunch. To make the token more accessible, a 1:100 token split is recommended. Additionally, there is an ongoing informal poll in the post to determine the ticker. Michael Bentley, the CEO of Euler Labs, has expressed his opinion in the post, suggesting that there should be no change in the ticker to maintain consistency for users. However, he supports the idea of reducing the token supply to 1B.
From the Lab
❲ Our Voting ❳
📆 Jan 12th → Jan 18th | 🗳️ Total Votes: 24
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 :)
💌 FOLLOW US
Website | Twitter | YouTube | Mirror | LinkedIn
🤝 DELEGATE TO US @ stablelab.eth
Tally | Boardroom | Linktree