👨🔬 Governance Lab #072
Lab Report #072 -Optimism Accelerated Decentralization, Arbitrum Foundation 250M Allocation, Sky Crosschain Strategy, and more
gm frens 👋
welcome back to the Governance Lab, your weekly source for all things StableLab, DeFi, and DAO Governance.
At a Glance 👀
🔴 Optimism discusses accelerated decentralization
🔵 Arbitrum Foundation requests 250M ARB for partnerships
🟣 Sky proposes short-term crosschain strategy on Solana
⛓️ Forse for Uniswap Onchain vote is live
Let’s dive in 🏊
Optimism
Optimism discusses accelerated decentralization
The Optimism community is currently debating a proposal for accelerated decentralization of the L2 network. A new proposal by GFX Labs calls for a three-phase plan aimed at completing the decentralization process by summer of 2025. The proposal addresses concerns about the Optimism Foundation's central role, competitive pressure from Arbitrum, and potential stagnation after two years of governance operation.
The three-phase plan would occur as follows:
Immediate transfer of certain controls, including Governance Contract Ownership, Governance Fund Ownership, and handover of collected ETH.
Handover of the Bridge L1 Escrow, Presentation of a Sequencer Decentralization Roadmap, & Revisions and Re-ratification of the Law of Chains by Q1 2025
Full control of Optimism by Optimism Governance, Disclosure of Foundation Grants, and Completed Decentralization of the Sequencer by Q2 2025
The Optimism Foundation has responded, emphasizing their commitment to a gradual and responsible decentralization process. Community feedback has been mixed, with some viewing the proposal as a positive step towards improved governance, while others consider it too aggressive given the L2's current stage of development.
GFX Labs has posted the proposal on Snapshot in a petition format, with voting set to conclude by the end of 2025. As of now, the petition has garnered 16M OP in voting power.
Arbitrum
Arbitrum Foundation proposes 250M ARB allocation for strategic partnerships
The Arbitrum Foundation has put forward a proposal requesting 250M ARB to enhance its ability to foster key strategic partnerships. This move aims to address current budget constraints and to keep the Arbitrum ecosystem competitive in pursuing growth opportunities. Key aspects of the proposal include:
Focus on agreements exceeding 2M ARB, new post-approval deals, and 1+ year commitments
Aim to expand the Orbit Chains ecosystem, secure new RWA opportunities, and onboard TradFi institutions
Current budget limitations put Arbitrum at a disadvantage compared to competitors (7.5% allocated, only 1.8% accessible due to vesting)
The proposal passed a Snapshot vote on Thursday, September 26th, with majority support from the DAO.
Sky Protocol
Sky Protocol proposes short-term crosschain strategy on Solana
This week, Rune unveiled new plans for a short-term crosschain strategy to expand Sky’s presence on Solana. The initiative aims to build early momentum and network effects for future deployment of Solana SkyLink, leveraging Solana's position as the second major DeFi ecosystem after Ethereum.
The proposal outlines the following key objectives:
Bridge SKY, USDS, and sUSDS via Wormhole between Ethereum Mainnet and Solana
Implement a temporary SKY token incentive program managed by Accessibility Facilitators
Focus on incentivizing USDS/USDC and USDS/sUSDS liquidity on Solana
Provide a maximum limit of 2 million SKY tokens per week for the incentive program
Temporary program to be replaced by native token rewards once Solana SkyLink launches
Aim to offer key Sky features on Solana, including 1:1 unlimited USDC/USDS PSM, native USDS Savings Rate, and token rewards
Potentially launch a large-scale capital deployment into Solana DeFi protocols through the Allocation System
Links
🚀 Launches, Deployments, Partnerships, and M&A
Euler introduces Stablecoin Maxi
USDS and SKY go live on Ethereum
Ethena announces new stablecoin: UStb
Treasure DAO leaves Arbitrum for ZKSync
📑 Reads, Insights, and Reports
DAO Token Swaps as Ecosystem Enablers
Wintermute DeFi Governance Digest: September 2024 | Week 4
What’s next for Sky Launch
🧗 Milestones & Updates
Sky Launch Season Monitoring and Adoption
karpatkey Gnosis DAO Investment Memo
Uniswap Monthly Financial Report & Analysis - August ‘24
Balancer - Fund Balancer Grants Q4 2024
Aave September 2024 Funding Update
Aave Liquidity Committee Funding Phase IV
🔒 Security, Risk, & Hacks
Maker DAO - BA Labs backs off WBTC Offboarding Recommendation
Uniswap DAO - Establish a Legal fund to pay for Delegate Legal Fees
Arbitrum DAO Security Council Elections are live
Aave Adjusting WBTC Parameters to Address BitGO Transition Risks
🗞️ Everything Else
Balancer DAO - Service Providers and Grantee Standards
Arbitrum DAO - Arbitrum Research and Development Collective [Term 2]
Rarible DAO - Code of Conduct
Lido - Council Daemons Funding
📺 Podcasts, Presentations, & Listens
Introducing the Messari Protocol Services Podcast
LlamaRisk Tackles WBTC on Leviathan News
Proposal Tracker™️
✅ APPROVED | Uniswap - Uniswap Accountability S3 Renewal and Rebalance
Summary: This proposal combines the Uniswap Accountability Committee (UAC) Season 3 renewal, budget rebalancing, and an additional delegate rewards spot. It requests a total of 84,594 UNI, including 37,038 UNI for UAC S3, 42,060 UNI for budget rebalance, and 5,496 UNI for an extra delegate spot. The UAC proposes expanding from 4 to 5 members, increasing maximum hours per member, and implementing a staggered election system. The proposal also addresses budget imbalances due to UNI price fluctuations and resolves a tie in delegate rewards.
⛓️ LIVE VOTE | dYdX - Treasury Subdao Proposal - Steakhouse
Summary: Steakhouse Financial proposes establishing a Treasury SubDAO for dYdX, requesting $750K annualized in DYDX tokens for a 12-month engagement. The mandate includes creating a Cayman Foundation, developing a staking program, overseeing DYDX diversification, and yield earning. The Operations SubDAO plans to launch two text proposals for community voting on the Treasury SubDAO formation, with a competing proposal from Karpatkey also under consideration.
💬 DISCUSSION | Lido - stETH on Optimism upgrade announcement and action plan
Summary: This proposal outlines a plan to upgrade stETH on Optimism, based on the previously approved LIP-22. The upgrade enables rebasable stETH on Optimism alongside the existing wstETH. Key aspects include successful testnet piloting, audits by MixBytes and Ackee Blockchain, and a two-phase upgrade process for L1 and L2. The proposal consists of a tentative timeline starting October 7, 2024, with voting, implementation, and resumption of bridge deposits.
From the Lab
Forse for Uniswap Revitalization and Growth Program
In August, Uniswap DAO approved the off-chain vote of our proposal to support the Uniswap Revitalization and Growth Program with Forse. We've since listened to the community and incorporated feedback, making changes to accountability, budget, scope, and ensuring we avoid redundant work from other service providers. The onchain vote is live on Tally until October 1st.
▶︎ Vote on the proposal HERE
Next week at Messari Mainnet
Our team member Nneoma will be speaking at Messari Mainnet next week, sharing insights on building resilient governance systems and how StableLab is leading the way as the top governance service provider. DM us to meet up or to say hi!
❲ Our Voting ❳
📆 September 20th → September 26th | 🗳️ Total Votes: 16
See our full vote history and detailed rationale HERE.
Meme
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