👨‍🔬 Governance Lab #061

Lab Report #061 - ZK Token & Nation, Aave DAO x Lido Alliance, MakerDAO Monetalis Removal, and more

Jun 13, 2024

gm frens 👋

Welcome back to the Governance Lab, your weekly source for all things StableLab, DeFi, and DAO Governance.

At a Glance 👀
🏹 ZKsync introduces the ZK token and ZK Nation
👻 Aave DAO discusses joining the Lido Alliance
🏦 MakerDAO votes to remove Monetalis and begin RFP process

Let’s dive in 🏊

ZKs

ZKsync introduces the ZK Token and ZK Nation

ZKsync has announced the release of its long-awaited token and a corresponding governance framework to further decentralize the project.
The ZK token allows holders to propose and vote on protocol upgrades, pay network fees, and eventually stake. About 67% of the total token supply has been allocated to the community, with 17.5% distributed through a one-time airdrop. With the introduction of its governance token, ZKsync paves the way to further transfer authority and decision-making of the protocol into the hands of its community and ecosystem.
The ZK Nation has also been announced and will be the community in charge of governing the L2 project. It consists of three bodies: the Token Assembly, the Security Council, and the Guardians. The Token Assembly consists of token holders who delegate their voting power and are represented by delegates who receive this voting power. This group is responsible for proposing, deliberating, and ratifying initiatives. The ZKsync Guardians are five individuals responsible for vetoing and/or approving emergency actions on the network. The ZKsync Security Council is a group of 12 highly skilled individuals responsible for reviewing technical protocol upgrades. This group also has the power to freeze the network.

Alliances

Aave DAO discusses a proposal to join the Lido Alliance

Aave DAO is discussing a TEMP CHECK proposal to deploy a dedicated V3 instance on the Lido ecosystem. This move aims to support the launch of the Lido Alliance by deploying a specially designed instance aimed at supporting stETH leverage loopers.
As proposed by the ACI, this specialized market would provide features like:
- 90% borrow cap on wETH (as % of supplied wETH)
- E-Mode LTV & LT set 50 bps higher vs other Aave deployments
- Reduced wETH rates (2.6% slope1, 10% RF) for first 6 months
- Only wstETH and wETH assets listed with E-Mode enabled
While the proposal aims to attract Lido users and provide better segregated risk, some have raised concerns about potential liquidity fragmentation since Lido assets are already listed on existing Aave markets.

Arrangers

GFX Labs submits polling to remove Monetalis as Arranger

MakerDAO is voting on a poll that would terminate the Arranger agreement with Monetalis, an Ecosystem Actor responsible for allocating capital into RWAs. GFX Labs submitted the MIP Amendment Subproposal due to Monetalis’ inability to produce reports and timely updates per their original stated mandate. The poll also introduces an RFP process for teams interested in taking over this role, with Centrifuge, Superstate, Mountain Protocol, and others having already expressed interest. At the time of writing this post, the YES votes lead with 66%.

❲ Links ❳

🚀 Launches & Deployments

Introducing Symbiotic
Introducing Sushi Labs
Introducing Reservoir
Introducing Zapper Protocol

❲ Proposal Tracker ❳

💬 DISCUSSION | Aave - Deployment of Aave on zkSync

Summary: This ARFC proposal seeks to deploy Aave V3 on zkSync. According to the proposal, deploying on the L2 will allow Aave to offer users faster and cheaper transactions while maintaining Ethereum mainnet security. Benefits include reduced gas fees, scalability, new growth opportunities, and interoperability with other Aave products like GHO stablecoin. To support the deployment, the proposal includes plans to redistribute any airdrop provided by the zkSync ecosystem to Aave users through liquidity mining, GHO secondary liquidity incentives, safety module deployments, or Merit programs.

🗳️ VOTING | Drift Protocol - Launch DRIFT Staking Vault & Fee Discounts for DRIFT Stakers

Summary: This proposal aims to launch DRIFT staking rewards via a DRIFT staking vault, enabling the first phase of the DRIFT token utility. The staking vault will provide to those who stake double governance voting power and yield. Objectives of the proposal include creating DRIFT token utility, aligning stakeholder interests, and securing the protocol's insurance fund.

⚡ VOTING | Frax - Velodrome on Fraxtal: Proposal for Incentives for Liquidity Growth

Summary: This proposal seeks to allocate $1M in FXS incentives over 12 months to build liquidity on strategic Velodrome AMM pools deployed on Fraxtal. The goal is to expand Velodrome’s presence on Fraxtal and enhance the “MetaDEX” by launching a liquidity program aimed at deepening liquidity, boosting activity, and retaining TVL. The incentives are expected to attract 1.5x VELO emissions and increase TVL to $5-10M+ in the first month.

From the Lab

Spaces: Cash Talks: Hosted by Fyde Protocol

On Tuesday, Gustav jumped on an X space hosted by Fyde Protocol to discuss the Stablecoin landscape alongside the chads at Ethena and Frax. Special thanks to the Fyde team for the invitation.

▶︎ Listen back to the recording HERE.

Speaker: Kene at Lagos Blockchain Week

On Wednesday, Kene traveled to Lagos to give a talk at Lagos Blockchain Week on "Understanding the Role of Incentive Programs in Growing DeFi Protocols".

▶︎ Watch the recording HERE.

❲ Our Voting ❳

📆 June 7th → June 13th | 🗳️ Total Votes: 18

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 :)

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