👨🔬 Governance Lab #054
Lab Report #054 - GHO Cross-Chain on Arbitrum, Lido Dual Governance Approved, Uniswap DAO Delegate Reward Working Group Findings, StablePod with Nik from Chronicle, and more
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Welcome back to another weekly edition of the Governance Lab, your source for all things StableLab, DeFi, and DAO Governance.
At a Glance 👀
👻 Aave DAO votes on initial network for GHO cross-chain rollout
🏖️ Lido DAO proposes Dual Governance implementation and design
🦄 Uniswap DAO discusses rewarding delegates based on Working Group’s findings
🎙️ New StablePod w/ Niklas Kunkel (Chronicle)
Let’s dive in 🏊
Bridging to New Horizons
Aave Labs proposes cross-chain rollout plan for GHO, community selects Arbitrum
The Aave community has voted to expand GHO onto the Arbitrum network as the first step in the cross-chain deployment plan. Earlier this week, Aave Labs put forth a proposal on Snapshot to gauge the community's consensus on the most suitable network to kick off the phased rollout. After a stage where interested networks could submit their candidacy and risk providers could offer input, the proposal included network options such as Metis, Avalanche, Scroll, Optimism, and Arbitrum. With the community's decision made, the vote will now move to the ARFC stage.
Empowering Liquid Stakers
Lido proposes "Dual Governance" mechanism to give stETH holders greater control and flexibility
Lido DAO has approved the highly anticipated "Dual Governance" upgrade to the protocol's governance model. Following multiple stages of research into the proposed upgrade, this Snapshot proposal ratified the community's endorsement of the final mechanism design and its implementation by the Lido team. The Dual Governance Mechanism aims to grant stETH holders two key powers: a dynamic user-extensible timelock on DAO decisions and a "rage quit" mechanism for Ethereum withdrawals.
To ensure the robustness of the upgrade, Lido is engaging external research and security teams, including Certora, OpenZeppelin, and Statemind, to review the design, implementation, and parameters. Lido is targeting a testnet deployment in Q3, with potential mainnet activation in late Q3 or Q4, contingent upon security checks and testnet performance.
Rewarding Delegates
Uniswap DAO explores Delegate Rewards with Working Group publishing findings to inform the community
Late last week, Doo published findings from the Uniswap Delegate Reward Working Group to better inform the community and prepare for potential upcoming proposals. This working group was formed following the submission of key governance proposals related to delegate rewards by Doo and by Bobby from UMA protocol.
The group was split into three subgroups, each tasked with further researching a specific aspect of the reward problem. Group A interviewed key stakeholders in the Uniswap community. Group B evaluated existing delegate compositions and their responsibilities. Group C looked into best practices, borrowing ideas from other successful DAOs such as MakerDAO and Aave.
Key findings from the group included that a compensation program for delegates could improve participation quality and dedication, albeit with some concerns. Quantitative analysis showed that delegates are becoming a crucial piece in the security of the protocol. Research also suggests that delegate compensation should always be based on specific, quantifiable, objective criteria, include periodicity to remove stale delegates, and include a gas fee reimbursement component.
The Working Group welcomes any feedback from the community as they prepare the next steps to potentially implement Delegate Rewards at Uniswap.
❲ Links ❳
🚀 Launches & Deployments
Credit Guild v1 live on Arbitrum
📑 Insights & Reports
Dual Governance: An Overview
Revisiting Solana Governance
Wintermute DeFi Governance Digest: April 2024 | Week 4
🧗 Milestones & Updates
Karpatkey and FranklinDAO elected to UTWG
dYdX Chain Upgrade 4.1.0
AGD March 2024 Grants Report
🔒 Security, Risk, & Hacks
🗞️ Miscellaneous
SafeDAO: Community Catalyst Program
📺 Podcasts & Listens
Richard Meissner: How Safe Aims to Simplify Crypto UX on The Block Research Podcast
Pendle: The Story Behind the DeFi Kingmaker on The Edge Podcast
❲ Proposal Tracker ❳
✅ VOTE CONCLUDED | Arbitrum - Subsidy Fund for Security Services
Summary: This proposal seeks to ratify the structure and size of a subsidy fund, worth up to $10M in ARB tokens, to provide financial assistance for security audits to new and existing projects in the Arbitrum ecosystem. The Arbitrum DAO Procurement Committee (ADPC) will administer the fund based on a Means Test and Application Process. The vote concluded on April 24th with the proposal's winning choice: "1 cohort of 8 weeks, $2.5M fund".
🗳️ VOTE IN PROGRESS | Uniswap - Onboarding Package Bundle
Summary: This proposal bundles four previously approved onboarding packages for Sei ($500k), Manta ($250k), Taiko ($250k), and Moonbeam ($250k). The packages include integrations with Merkl, Oku, and GLMR token incentives. The onchain vote is expected to be ratified when it concludes on April 29th.
💬 DISCUSSION | Celo - cLabs Proposes Migrating Celo to an Ethereum L2 leveraging the OP Stack
Summary: Here, cLabs proposes migrating Celo to an Ethereum L2 using the Optimism Stack. The proposal cites the OP Stack as the most direct path based on time to production, Ethereum alignment, and positive-sum growth opportunities. Next steps include community calls and an on-chain governance vote. If successful, the CEL2 testnet is targeted for Summer 2024.
💬 DISCUSSION | Stargate - Stargate V2 Proposal
Summary: This proposal seeks to introduce Stargate V2, the cheapest and most interoperable bridge in DeFi, addressing pain points from V1 such as expensive onchain accounting, static credit mechanisms, and slow expansion to new chains. Key features of V2 include transaction batching for cheaper bridging, dynamic credit allocation managed by an AI Planning Module for better liquidity handling, and the introduction of Hydra for Bridging as a Service to provide unlimited liquidity to new chains.
From the Lab
Announcing: StableLab x Gitcoin
We’re super excited to announce we've partnered with Gitcoin to help secure strategic partnerships and support the adoption of Grants Stack across the ecosystem.
🔗 Read the full announcement post HERE
NOTE: 🌱 GG20 is LIVE now through May 7th - Donate and support builders and projects of open-source software.
New Podcast: Chronicle: A Next-Generation Oracle Protocol
In our latest StablePod episode, we’re joined by Niklas Kunkel, Founder of Chronicle a next-generation oracle protocol. We discuss how to decentralize Oracle protocols, the Oracle Core Unit's history, Oracle use cases beyond price, and much more.
❲ Our Voting ❳
📆 April 19th → April 25th | 🗳️ Total Votes: 40
See our full vote history and detailed rationale HERE.
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