👨🔬 Governance Lab #059
Lab Report #059 - MakerDAO FiRe, ENSv2, LayerZero Allocation, and more
gm frens 👋
welcome back to the Governance Lab, your weekly source for all things StableLab, DeFi, and DAO Governance.
At a Glance 👀
🔥 MakerDAO considers new Fintegrate Rate Engine (FiRE) model
🌐 ENS Labs proposes ENSv2
🌉 Stargate Community discusses LayerZero token allocation
🤝 StableLab x Instadapp
Let’s dive in 🏊
Layer 2
ENS Labs unveils ENSv2
This week, ENS Labs unveiled their vision for the next iteration of the ENS protocol, ENSv2. The proposed update seeks to extend the ENS protocol into its own L2 network, helping solve ongoing scalability and user cost issues. To develop and roll out this vision, Nick Johnson from ENS Labs submitted a proposal to the DAO outlining some of the network's high-level details alongside a funding request to execute the plan.
To choose what L2 stack ENSv2 gets built on, the proposal provides a ‘Selection Framework’ intended to help narrow down the best choice by requirements and criteria. The proposal explains the migration will occur in phases to minimize disruption and ensure smooth integrations. In total, the proposal requests a 4M USDC increase in additional funding towards ENS Labs to hire more developers and cover costs. A separate detailed rollout plan will be shared in the near future.
FiRE
MakerDAO explores a new interest rate model design
BA Labs has submitted a proposal introducing the Fintegrate Rate Engine (FiRE), a new interest rate model for Maker designed to minimize risk and improve efficiency. As the de facto rate “maker” in DeFi, the proposal looks to optimize the way MakerDAO sets its rate, turning it into a rate “taker.” With FiRE, the goal is to generate an optimal Base Rate that depends on the real economy, centralized exchanges, and Maker's collateral dynamics.
Included in their proposal is historical backtesting that suggests having such a model in the past would have led to avoidable outcomes quicker. The proposal also suggests that this model will eventually become fully automated and oracle-based, solidifying Maker’s competitive advantage.
Allocate Me
StargateDAO votes on LayerZero RFP Allocation
The Stargate community has voted on how to distribute the potential LayerZero token allocation that the DAO may receive from the LayerZero RFP process. The LayerZero RFP process is an initiative as part of its TGE allocation process, designed to allow projects that leveraged the protocol to designate how their token allocation is distributed, retroactively rewarding activities and user behavior.
In the original Stargate proposal, approved on May 28th, token allocation would be distributed to bridges, LP providers, and STG stakers as follows:
60% to bridgers (42% to users, 18% to partner protocols)
20% to veSTG holders, based on amount and duration staked
10% to liquidity providers, based on liquidity provided
10% to developers, as recommended by LayerZero
Following the approval of the first proposal and extensive community feedback, a new proposal was submitted on the forums suggesting amendments to the exact allocation numbers. The ultimate goal of these proposals is to reward real users of the Stargate community.
❲ Links ❳
🚀 Launches & Deployments
Announcing Syrup Protocol by Maple Finance
Introducing The Sandbox DAO
Introducing the Morpho Stack
Introducing defi.money
Taiko L2 live on Mainnet
📑 Insights & Reports
Wintermute DeFi Governance Digest: May 2024 | Week 4
LSDfi Report 2024
The State of Staking Report
🧗 Milestones & Updates
Arbitrum STIP Bridge Funded Protocols Results
Optimism Preps for S6; Approves Intent Funding and Grants Council Budget
Stani hints at Aave Network
Uniswap v4 later this year
Spark’s sUSDe Morpho Market increased to 400M DAI
MakerDAO RWA Report April 2024
🗞️ Miscellaneous
dYdX DAO: v5.0 Software Upgrade
Gitcoin DAO: Streamlining Governance Processes
Rari DAO: A Clearer Grants Committee Mandate
Rari DAO: Trial a Governance Working Group
Arbitrum DAO: Funds to bootstrap the first BoLD validator
Badger DAO: Badger Grant Program
📺 Podcasts & Listens
Jai Bhavnani: Royco Protocol: Revolutionizing Liquidity Markets on The Edge Podcast
❲ Proposal Tracker ❳
⚡ VOTE IN PROGRESS | Galxe DAO - G Tokenomics Proposal
Summary: This proposal aims to update the Galxe Ecosystem tokenomics by transitioning the GAL token to a new Gravity (G) token. GAL will convert to G at a 1:60 ratio, increasing the total supply to 12B. The G token will have new utilities, such as acting as the gas token and native token for Proof-of-Stake on the Gravity chain. This transition is motivated by a desire to increase the utility and scope of the native Galxe token, improve liquidity and accessibility, and secure the new Gravity chain.
💬 DISCUSSION | Compound - Deploy Compound V3 on Mode
Summary: This proposal from the Mode team suggests deploying Compound V3 on Mode mainnet, an L2 part of the OP Superchain. The proposal claims that by deploying on Mode, Compound can leverage its enhanced efficiency, reduced gas costs, faster transactions, and unique developer incentives. Also included in the proposal are details on Mode's growth metrics, proposed markets, and security considerations.
💬 DISCUSSION | SlingShot DAO - Migration to Arbitrum
Summary: This proposal outlines a migration plan from Polygon to the Arbitrum ecosystem to provide improved user experience, faster and cheaper transactions, and collaboration opportunities. To accomplish the migration, the $SLING token and its dApp contracts must be redeployed on Arbitrum, the token holder state must be recreated, and liquidity migration and user support must be provided.
From the Lab
Announcing StableLab x Instadapp 🤝
We're super excited to announce we've partnered with the Instadapp DAO to help support its DAO2DAO relationships and secure strategic partnerships, ultimately driving adoption of its product offerings.
▶︎ Read the full announcement HERE.
Uniswap Delegate Reward Proposal Reaches Quorum ⛓️
With 3 days left to conclude our proposal to launch delegate rewards at Uniswap DAO officially reached quorum. The onchain proposal vote is the final hurdle to introducing delegate rewards at the Uniswap DAO, a significant milestone for the community. Voting on the proposal ends on June 1st.
▶︎ Full Proposal Details HERE.
Doo at BlockSplit 5 🇭🇷
On Tuesday, Doo gave a talk on one of his favorite topics 'DAOs and Dramas: Is DAO Drama Good?' at the BlockSplit Conference in Split, Croatia.
▶︎ You can watch the full recording HERE.
❲ Our Voting ❳
📆 May 24th → May 30th | 🗳️ Total Votes: 44 🤯
See our full vote history and detailed rationale HERE.
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