👨‍🔬 Governance Lab #066

Lab Report #066 - Compound Proposal Guardian, Nexus Mutual Karpatkey, Forse for Uniswap, and more

Aug 08, 2024

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

At a Glance 👀
💼 Compound proposes Proposal Guardian to enhance governance security
🏦 Nexus Mutual considers Karpatkey as Treasury Manager
🦄 Forse for Uniswap DAO

Let’s dive in 🏊

Guardian

Compound DAO proposes Proposal Guardian for enhanced governance security

In light of recent governance controversies, Compound DAO is considering a proposal to implement a Proposal Guardian for its governance system. PGov has submitted a proposal that would transform the community 4/8 multisig into a "Guardian" mechanism designed to prevent malicious votes.
Key aspects of the proposed Guardian role include:
- Ability to veto proposals that have passed but are awaiting execution
- Protection against malicious governance votes
- Automatic expiration after 6 months, requiring renewal via governance proposal
The Guardian can intervene under specific conditions: Users' funds might be at risk, A single entity controls the vote or would gain control of the DAO, To pause protocol during urgent security emergencies, When proposals pass despite receiving at least 400K "NO" votes.
The proposal also outlines the creation of a more robust “Constitution” that will detail when the Guardian may get involved, further securing Compound Governance. Due to the severity of such an implementation, the proposal specifies an accelerated onchain vote to occur on Friday, August 9th.

Treasury Manager

Nexus Mutual DAO considers Karpatkey as Treasury Manager

Nexus Mutual DAO is considering a collaboration with Karpatkey to manage its treasury assets. The proposal, brought forth by the Karpatkey team, aims to improve financial sustainability and capital efficiency of the DAO treasury.
Key aspects of the proposed collaboration include:
- Non-custodial asset management of approximately $6.5M worth of assets
- Gradual diversification out of wNXM and NXM into ETH, ETH derivatives, and stablecoins
- Implementation of DeFi strategies to generate yield
- Regular reporting and transparency measures
Karpatkey proposes a fee structure of 0.5% management fee and 20% performance fee, paid monthly in NXM or wNXM. The proposal includes provisions for termination by either party and an accelerated timeline for community feedback.

❲ Links ❳

📑 Insights & Reports

Wintermute DeFi Governance Digest: August 2024 | Week 1
L2Beat Governance Review #24
Solving Delegation with Event Horizon & The Tally Protocol
Optimism’s Legitimacy Framework
Token Migration 101
Points Part I - Decoding Points Programs: The New Economic Incentives in Crypto

🧗 Milestones & Updates

🔒 Security, Risk, & Hacks

Ronin Bridge Hacked for $12M

Summary: This proposal aims to restart the conversation around creating self-voting and conflict of interest (COI) policies for Arbitrum DAO. It outlines various policy options, from maintaining the status quo to implementing strict self-voting rules. A Snapshot vote will be posted on August 15th. The proposal is part of a series to professionalize the DAO's operations, with potential inclusion in a future delegate code of conduct.

💬 DISCUSSION | Venus - Deploy Venus Protocol on OP Mainnet

Summary: This proposal suggests expanding Venus Protocol to OP Mainnet. Key benefits include fast and cheap transactions, access to Optimism's Retro Funding, and a large ecosystem with 650M+ TVL. The proposal highlights potential user acquisition opportunities and improved user experience.

💬 DISCUSSION | Compound - Growth of Treasury

Summary: This proposal aims to generate yield from Compound's ETH holdings in the Timelock and community multisig. Suggested strategies include staking with Lido or RocketPool, or supplying to Compound markets.

From the Lab

We’ve put forth a new proposal at the Uniswap DAO to engage with Forse, our DAO data and intelligence platform, to analyze the Uniswap Revitalization and Growth Program and provide insights and recommendations for improvement. This Temp Check vote will allow the community to decide which three networks we analyze first. Networks include Arbitrum, Base, Scroll, Linea, Mantle, Blast.

▶︎ Cast your vote HERE

❲ Our Voting ❳

📆 August 2nd → August 8th | 🗳️ Total Votes: 31

See our full vote history and detailed rationale HERE.

Meme

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