👨🔬 Governance Lab #060
Lab Report #060 - Aave Labs Service Provider Proposal, Arbitrum DAO Revenue, Uniswap LTIPP Matching, StablePod w/ Seraphim, and more
gm frens 👋
welcome back to the Governance Lab, your weekly source for all things StableLab, DeFi, and DAO Governance.
At a Glance 👀
👻 Aave Labs submits revised service provider proposal to the DAO
💙 Entropy Advisors sparks Arbitrum DAO revenue discussions
🎙️ New StablePod w/ Seraphim (Ethena Labs)
Let’s dive in 🏊
Service Provider
Aave Labs submits Temp Check to become an Aave DAO service provider
Aave Labs has submitted a Temp Check proposal to be officially onboarded as a technical service provider for the Aave DAO. Following community feedback, the team revised their original proposal into a service provider agreement. The team’s proposal outlines a one-year engagement to develop Aave V4 and a new visual identity for the protocol.
Key deliverables for the engagements include a new modular architecture, unified liquidity layer, fuzzy-controlled interest rates, liquidity premiums, dynamic risk configuration, smart accounts and vaults, automated asset offboarding, enhanced liquidation engine, automated treasury management, and various GHO features.
In total, the proposal requests $12M GHO, with $3M paid upfront and the $9M streamed over the year. To ensure accountability, the proposal includes evaluation metrics, monthly reporting, feedback from other key contributors, and direct engagement with the DAO.
Sequencer Revenue
Entropy Advisors highlights DAO revenue disparity, sparking gas fee discussion
Entropy Advisors submitted an RFC this week sparking community discussions and research into Arbitrum DAO’s revenue. In their post, the team highlights the notable decline in DAO revenue that has resulted from the ArbOS Atlas upgrade in March. This network upgrade lowered L1 surplus fees to 0 and reduced minimum L2 base fees from 0.1gwei to 0.01 gwei.
Entropy outlines three potential paths to increase fees: 1) Raise L2 minimum base fee from 0.01 gwei, 2) Decrease target gas per block to trigger congestion fees earlier, 3) Adjust formula constant to increase base fee escalation rate during congestion. Their initial recommendation is to raise the L2 minimum base fee to 0.02 gwei as a simple first step that could have generated an extra 427 ETH since Atlas.
The post seeks community input and discussion on the optimal fee mechanism change and requests further research by teams like Chaos Labs.
❲ Links ❳
🚀 Launches & Deployments
Stake for Governance live on Wormhole
📑 Insights & Reports
Understanding Blockchain Governance
Unpacking Progress in Baseline Decentralization
Contributing to DAOs with StableLab: How can you get involved and make an impact?
Aave DAO is earning $115M Annualized Revenue
EigenLayer: Intersubjective Faults, Token forking, bEIGEN & more
🧗 Milestones & Updates
Uniswap Delegate Rewards Approved
Compound Governance Support Working Group Approved
Gauntlet x Near Foundation Partnership to Redefine Governance
UF delays Uniswap Governance Upgrade Again
🗞️ Miscellaneous
Balancer: Balancer DAO Financial Reporting
Arbitrum: The Startup Collective
Arbitrum: Powerhouse - Operations and Transparency Research Proposal
Morpho: New Scalable Rewards
Aave: ADI v1.1
Ethena x Aave Partnership
📺 Podcasts & Listens
Matt Dobel: Gauntlet’s Risk Management Framework on Leviathan News
❲ Proposal Tracker ❳
Uniswap - Arbitrum Incentive LTIPP Matching
Summary: Here, the UADP submits a proposal to match the 1M ARB received from the Arbitrum LTIPP grant program. The UADP will work with Gauntlet and Merkl to distribute the ARB incentives, with 900k ARB for liquidity mining, 85k ARB for Gauntlet's research team, and 15k ARB for the UADP multisig. The proposal highlights Uniswap's contributions and dominance in the Arbitrum ecosystem. Voting options are provided via Snapshot.
Arbitrum - Election of STEP Manager
Summary: This proposal seeks to elect a Program Manager responsible for the Arbitrum Stable Treasury Endowment Program. In April, the DAO approved STEP to diversify 35M ARB into yield-bearing assets. The four applicants being voted on are as follows: Steakhouse Financial, Avantgarde, Particula, and Bluechip. Each of the program’s applicants outlines their budget, pricing, and proof of work.
Gnosis DAO - Token Incentives for Gnosis Pay
Summary: Martin Köppelmann Co-founder of Gnosis, has posted a forum post outlining a potential token incentive program for Gnosis Pay users. Users could send GNO tokens to their Gnosis Pay account and earn cashback rewards based on the amount of GNO held, ranging from 1% for 0.1 GNO to 4% for 100 GNO. This proposal aims to accelerate growth of the Gnosis Pay userbase and transaction volumes.
Optimism - Fjord Network Upgrade
Summary: This proposal seeks to implement the Fjord network upgrade on Optimism. The upgrade includes key features such as EIP-7212 to reduce smart wallet gas costs, Brotli compression for 5-15% lower data availability costs, FastLZ based L1 data pricing, and parameter changes to give more time for L2 operators to respond to L1 issues.
From the Lab
Research: Analyzing STIP’s Efficacy and LTIPP Comparison
We're excited to share our in-depth analysis of Arbitrum's Short-Term Incentives Program (STIP) and Long-Term Incentives Pilot Program (LTIPP).
With this report, we aim to understand further the design and implementation of effective incentivization at Arbitrum and across the ecosystem. By iterating on incentive frameworks based on empirical insights, the aim is to foster sustained growth and alignment with community interests.
As the program manager for both initiatives and an active governance participant, our goal is to provide accurate, unbiased, and comprehensive solutions that maximise the protocol's success.
▶︎ Read the Full Report HERE
Blogpost: Meet the Team - Jose Felices
Get to know our team member, Jose Felices, our newest Junior Governance Analyst. Read about his journey from Biochemistry to DAO Governance and what motivated to join the team. 🙏
▶︎ Read the Full Post HERE
Podcast: Ethena - Hyperscaling a Synthetic Dollar Protocol
In our latest StablePod episode, we’re joined by Seraphim, Head of Growth at Ethena Labs. We discuss the unique mechanism design choices used to build Ethena, what a delta-neutral synthetic dollar is, how it uses CeFi infrastructure, and securing partnerships and DAO2DAO collaborations that have fueled Ethena's rapid growth. and much more.
📺 Watch on YouTube
Delegate: Wormhole Delegation is Live
Today, Wormhole officially launched Stake for Governance, enabling delegation and kickstarting governance. We're honored to become a Wormhole delegate, aiming to expand the ecosystem and enable a new era with multichain governance. If you’re a W tokenholder consider delegating to us 🫶
▶︎ Delegate to StableLab HERE.
❲ Our Voting ❳
📆 May 31st → June 6th | 🗳️ Total Votes: 25
See our full vote history and detailed rationale HERE.
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