👨🔬 Governance Lab #047
Lab Report #047 - Arbitrum Research and Development Collective Member Elections, Uniswap Factory Owner, Aave DAO x CCIP, and more
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Welcome back to the Governance Lab, your weekly source for all things StableLab, DeFi, and DAO Governance. On the menu this week: L2 protocol upgrades, Uniswap talks fee mechanism, Aave pushes for GHO adoption, SAFE token one step closer to transferability, drama at Sushi, and much more.
What a distracting week with all these memecoins.
As always, enjoy and see you on the forums 🤝
At a Glance 👀
💙 Arbitrum DAO votes on ARDC members
🦄 Uniswap DAO debates Fee Mechanism ownership
👻 Aave DAO approves temp check for GHO cross-chain strategy
R&D
Arbitrum DAO holds elections for the Research and Development Collective
Arbitrum DAO is running four offchain votes concurrently to elect members to the Research and Development Collective (ARDC). This 6-month community initiative aims to review and enhance governance proposals, conduct code reviews for security, provide quantitative analysis for economic risk, and foster delegate engagement. The ARDC, approved in late January, is a fork of the previously unsuccessful initiative "Arbitrum Coalition" by Gauntlet, Blockworks, and Trail of Bits, rejected by the Arbitrum community in November last year. The roles being elected are DAO Advocate, Risk Member, Security Member, and Research Member. Notable participants in the elections include Chaos Labs, Trail of Bits, OpenZeppelin, L2Beat, The Block, Blockworks, and Delphi Digital.
Factory Owner
Uniswap DAO debates ownership over upcoming Fee Mechanism
Earlier this week, Michigan Blockchain, 404DAO, and GFX Labs submitted a proposal to amend the ongoing fee mechanism proposal by the Uniswap Foundation. Their focus is on granting the DAO privileges to make future changes to the mechanism. The main argument in support of this function upgrade is to prevent ossification of parameters that may turn out to not drive value as proposed by the UF. The proposal contends that offering the DAO recourse if the initial parameter set falls short is the optimal approach.
Erin from UF jumped in and reaffirmed the idea of immutability for transparency and resiliency's sake. A debate sparked between the two differing perspectives. Notably, the proposal bypassed formal governance processes and was posted on Snapshot rather quickly to gauge community sentiment. As of now, the offchain proposal is being rejected by the Uniswap DAO while the UF’s proposal was approved on March 6th.
Cross Chain
Aave DAO clears first hurdle to enable GHO cross-chain
Aave DAO has approved a temp check proposal to adopt CCIP, enabling the cross-chain strategy for GHO. Until now, GHO has only been mintable on Ethereum mainnnet, significantly limiting its adoption across DeFi. To expand the reach and utility of GHO, Aave Labs will integrate Chainlink Cross Chain Interoperability Protocol, a solution that enables assets to seamlessly move between EVM and non-EVM networks. The proposal establishes each network where GHO is deployed as canonical and provides control over each Facilitator to Aave Governance.
❲ Links ❳
🚀 Launches & Deployments
📑 Insights & Reports
GovSwap is the First Grant of 2024
RetroPGF 3: Learnings & Reflections
Wintermute DeFi Governance Digest: March 2024 | Week 1
The Balancer Report: Balancer x Karpatkey
The Future of On Chain Derivatives
How Stablecoins, RWAs, and Onchain Capital Markets Will Evolve
Decentralized stablecoins are broken, long live decentralized stablecoins
🧗 Milestones & Updates
🔒 Security, Risk, & Hacks
MakerDAO Risk Month in Review: February 2024
🗞️ Miscellaneous
Wen SAFE token transferrable?
1inch: Events 2024 Grant Proposal
OlympusDAO: 2024 Budget Proposal
Index Coop: Ideas For Evolving INDEX, Products & Tokenomics In 2024
Launch Project Funding: BA Labs Work Overview and Funding Details
Governance Controversy at Sushiswap
📺 Podcasts & Listens
Justine Humenansky - The Collective DAO Archives: DAO Design Principles at ETH Denver
Open Source and Public Goods: How Can They Reshape DAO Governance? at ETH Denver
Rafael Solari - Cross-Chain DAOs at ETH Denver
List of ETH Denver Videos by Category
Unstable Summit Denver 2024 Panel Video Playlist
Antonio Juliano - The Future of dYdX & Decentralized Trading on 0xResearch
❲ Proposal Tracker ❳
⚡ LIVE | Aave - Liquidity Committee Funding
Summary: This proposal requests 500k GHO to fund 3 months of additional support for GHO’s liquidity and DeFi integrations. The Aave Liquidity Committee is a special community working group at Aave launched in October 2023 with the simple mandate of supporting GHO stability and liquidity. The ALC has successfully deepened GHO’s liquidity across various DEXes which in turn has helped GHO reach peg. The new proposal suggests the ALC will focus on the following key areas: 1:1 peg with USD, reducing price volatility, growing non-stable-coin-paired liquidity pools, and targeted liquidity distributions to support Borrow Cap increases. To enable this, the ALC has leveraged Uniswap v3, Maverick, and Balancer, and has suggested future use of Ethena and the f(x) protocol.
💬 DISCUSSION | Lido - Rewards-Share Program 2024
Summary: This proposal seeks to replace the existing Rewards Share Program at Lido with a new and improved version. Launched in 2023, the Rewards Share program is a community program aimed at spreading awareness about liquid staking technology and liquid staking tokens like stETH. The proposal states that the original program lacked effectiveness in its purpose of attracting stETH adoption by its participants. To be more effective, the new version of the program will operate in three phases: Onboarding, Rewards-Share, and Offboarding. In the Onboarding phase, prospective participants submit applications and are evaluated. In the Rewards-Share phase, approved participants receive rewards based on the amount of ETH originating from their products and services. In the Offboarding phase, participants can be removed voluntarily or involuntarily due to a variety of reasons. To enable this initiative, a Committee will oversee the distribution of rewards.
💬 DISCUSSION | Push DAO - Business Development SubDAO
Summary: This proposal seeks funding of 40K to establish a Business Development SubDAO within Push DAO. It aims to incentivize and reward community contributors who engage in business development activities for Push Protocol. The proposal details Collaboration Tiers, Reward Phases, Rules and Guidelines, and the formation of a working group to oversee and facilitate these initiatives.
💬 DISCUSSION | ENS - ENS on Solana
Summary: This proposal seeks funding of $500K to integrate ENS into the Solana ecosystem. The proposal, authored by SysStruct, claims that this integration will yield substantial benefits and revenue streams for the ENS DAO. To facilitate the integration, the proposal recommends implementing a dedicated storage-centric Solana program to store users' ENS records using CCIP-Write. Additionally, it proposes utilizing CCIP-Read to enable the Solana Resolver on Ethereum mainnet. The proposal claims that this setup will generate $4M-$12M in revenue for the DAO.
172 LTIPP Applications Received
LTIPP applications at Arbitrum closed on Sunday, March 3, at 23:59 UTC. The program received over 170 application submissions from various protocols and teams seeking over 143M ARB for incentives. Application Advisors are now busy helping teams update their applications before the final submission deadline on March 17th, at 11:59 PM EST.
ETH Denver Panel Solving the Governance Problem
In case you missed it, you can now watch back the ETH Denver panel discussion “Solving the Governance Problem: Better Tools and the Will to Use Them” on YouTube! The panel, moderated by CoinDesk’s Sam Kessler, featured speakers from ScopeLift, Aragon, dao5, and our very own Nneoma.
❲ Our Voting ❳
📆 March 1st → March 7th | 🗳️ Total Votes: 37
See our full vote history and detailed rationale HERE.
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