👨‍🔬 Governance Lab #070

Lab Report #070 - Sky Aave Force, SafeDAO Community-Aligned Fees, dYdX Treasury SubDAO, and more

Sep 05, 2024

gm frens 👋

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

At a Glance 👀
🌌 Sky and Aave join forces
🌈 SafeDAO considers first revenue stream through Community-Aligned Fees
💰 dYdX discusses creation of Treasury SubDAO
🦄 1inch DAO 40M 1INCH Token Streamed

Let’s dive in 🏊

Sky Aave Force

Sky and Aave join forces to accelerate DeFi adoption

This week, two DeFi giants joined forces as Aave and Sky announced a new partnership. This collaboration comes after previous tensions surrounding Spark, Maker's lending platform, which is an Aave fork that according to some hadn't properly compensated the Aave DAO for this.
The initiative, dubbed Sky Aave Force, aims to create synergies between the two protocols. Several proposals and initiatives will be submitted to each respective governance process, including:
1. Integration of USDS and sUSDS on the Aave V3 market with native token rewards.
2. USDS D3M to Aave Lido Market with an initial debt ceiling of 100m.
3. A 50/50 split of revenue from sUSDS and USDS markets between Aave and Spark.
4. Implementation of a SKY-sUSDS converter on the Aave interface.
5. SPK token airdrop for Aave market suppliers.
6. Sky Protocol-powered USDS liquidity injection into Aave's stETH market.
7. .. and much more planned
If approved, these integrations could mark a significant milestone in the collaboration between Aave and Sky, potentially reshaping the landscape of DeFi lending markets.

Community Fees

SafeDAO considers first revenue stream through Community-Aligned Fees

The Safe Ecosystem Foundation (SEF) has proposed introducing SafeDAO's first revenue stream through Community-Aligned Fees. The proposal aims to strengthen SAFE token utility, community governance, and ecosystem growth. Key points of the proposal include:
- Utilizing Safe-related trademarks to generate revenue from third-party integrations in Safe{Wallet}
- Native Swaps as the first integration, with fees pledged to SafeDAO
- Fee conversion mechanism to buy SAFE tokens on the open market
- Estimated annual revenue of ~$2.5M based on the first month of Native Swaps
The proposal includes plans for transparent reporting and potential adjustments based on community feedback. If ratified, it could provide SafeDAO with more agency in fund allocation and ecosystem development.

SubDAO

dYdX DAO discusses creation of Treasury SubDAO

Steakhouse Financial has proposed creating a Treasury SubDAO for dYdX to improve financial sustainability. The proposal suggests funding growth initiatives and operational expenses from revenues rather than token issuance. Currently, 100% of gross trading fees go to staked token holders for security, leading to token dilution for growth and OpEx.
The proposal explores creating an endowment to cover operating costs, with two scenarios:
- A large endowment of ~$364 million to cover all operating expenses indefinitely
- A smaller endowment to cover 2-3 years of operating expenses

⟼ Links ⟻

🚀 Launches, Deployments, Partnerships, and M&A

Arbitrum launches Stylus
Euler v2 is here
Liquity announces BOLD stablecoin
Ethena Partners with Eigenlayer and Etherfi
Introducing Snapshot v2
Polygon upgrades from MATIC to POL
Enzyme Finance acquires Myso Finance

📑 Reads, Insights, and Reports

Wintermute DeFi Governance Digest: September 2024 | Week 1
Metagovernance of Governance LSTs within DAOs
Morpho’s Mission: Making Financial Infrastructure A Public Good.
Unlocking the Future of Finance: The Role of Real-World Assets in DeFi
5 Lessons for Bootstrapping Protocol Communities
What is M&A for DAOs?

🧗 Milestones & Updates

dYdX Chain: End of Season 6 Launch Incentive Analysis
Aave Labs Development Update 2
Gnosis DAO approves Gnosis Pay Cashback Rewards
Arbitrum Security Council Sep 2024
Uniswap Ecosystem Impact Report: Year-To-Date 2024
Uniswap Accountability Committee (UAC): Season 2 Report
karpatkey joins Nexus Mutal DAO as Treasury Manager
SafeDAO Governance Analytics Report August 2024
An Introduction to SNAXchain
Ethena Season 3 Update

🔒 Security, Risk, & Hacks

LlamaRisk - Aave Monthly Community Update August 2024
Penpie Exploited for $27M
Uniswap Labs pays CFTC $175k fine
Everclear Security Council Upgrade

Summary: This proposal aims to enhance GnosisDAO's governance infrastructure by improving the Snapshot space and related components. Key objectives include redeploying subgraphs on The Graph Decentralized network, updating the GNO voting power strategy, and creating a Snapshot sub-space for weighted choice voting. The implementation plan prioritizes migrating to the Graph by September 14th, 2024, and addressing critical infrastructure issues to improve voting accuracy and functionality.

💬 DISCUSSION | Sky - Atlas v2 Upgrade Poll Request

Summary: This proposal seeks community approval for the Atlas v2 upgrade, a crucial step in MakerDAO's transformation into Sky. The upgrade unifies Atlas's immutable logic with the mutable logic of five Scopes, introduces new amendment mechanisms, and allows for real-time modifications. Key changes include a modular structure of Supporting Documents, new amendment cycles, and the removal of obsolete logic. The proposal requests a Governance Poll for the coming Monday to approve this next-generation framework.

💬 DISCUSSION | Aave - Orbit Program Renewal Q3

Summary: The Aave Chan Initiative proposes renewing the Orbit program for Q3 2024, compensating recognized delegates with GHO and ETH for their governance activities. The proposed budget is 60,000 GHO and 4.3 ETH, covering eligible platforms and service provider gas rebates. The proposal emphasizes the importance of delegates in maintaining Aave DAO's decentralization and diversity, allowing them to focus on contributing to governance.

From the Lab

Forse Lite Report - Analyzing Gitcoin & Jokerace Initiatives

As part of our Firestarters grant, we’ve published initial findings from analyzing the performance of Gitcoin and Jokerace initiatives on the Arbitrum network. With this lite report, we aim to provide a better understanding of how these projects impact community engagement, drive growth, and generate lasting effects in the Arbitrum Ecosystem.

▶︎ Read our report HERE

Streaming 40M 1INCH Tokens to the 1inch Treasury

We’ve submitted a new governance proposal at Lido DAO. We aim to kickstart a stream of 40M 1INCH tokens from the 1inch Foundation’s Multi-sig into the 1inch DAO Treasury. This is motivated by a need to fund upcoming 1inch community development and initiatives.

▶︎ Read the full proposal HERE

Delegate to StableLab at Lido

With the introduction of simple onchain delegation at Lido, the DAO is calling for additional delegates to join and help govern the protocol.

If you’re an LDO tokenholder, consider delegating to the best governance team

How to delegate?

Copy our address: 0xecc2a9240268bc7a26386ecb49e1befca2706ac9
Visit https://vote.lido.fi/delegation
Delegate your LDO to stablelab.eth

❲ Our Voting ❳

📆 August 30th → September 5th | 🗳️ 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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