👨‍🔬 Governance Lab #078

Lab Report #078 - Berachain Morpho Blue License, Fluid Protocol Growth Strategy, Aave DAO INST Investment, and more

Dec 05, 2024

gm frens 👋

Welcome back to the Governance Lab, your weekly source for all things StableLab, DeFi, and DAO Governance. We’re back this week with lots of goodies. Enjoy :)

At a Glance 👀
🐻 Berachain requests Morpho Blue license for Bend
💧 Fluid Protocol announces comprehensive growth strategy
🤝 Aave DAO proposes strategic INST token investment
🎙️ New StablePod w/ Josh Watts (dYdX Foundation)

Let’s dive in 🏊

License Agreement

Berachain Foundation requests Morpho Blue license

The Berachain Foundation has requested a non-exclusive license to integrate Morpho Blue as the foundation for their native money market, Bend. The proposal to deploy a friendly fork of the lending protocol includes a licensing fee payment to the Morpho DAO valued in the "low 7 figures."
Berachain will assume full responsibility for development, deployment, and maintenance operations. The integration aims to leverage Berachain's Proof-of-Liquidity (PoL) mechanism, with implementation including proprietary front-end and back-end development by the Berachain team. Additionally, the team will look to onboard a competent vault curator and qualified risk manager to maintain the deployment.

Protocol Rebranding

Fluid Protocol announces comprehensive growth strategy

Fluid, a DeFi protocol developed by Instadapp, has unveiled a comprehensive rebranding and growth strategy aimed at establishing itself as the primary liquidity layer for DeFi.
The proposal, published on the Instadapp governance forum, seeks community approval to allocate 12% of the DAO treasury toward growth initiatives designed to scale Fluid. The plan includes approving a 1:1 conversion of INST tokens to newly created FLUID tokens as part of the complete protocol rebranding.
The protocol's expansion strategy includes algorithmic buybacks, growth incentives, and expansion into diverse financial markets. Fluid has seen early success, achieving $1B in market size and becoming Ethereum's 3rd largest DEX within just three weeks of launch.

Strategic Partnership

Aave DAO votes on INST token investment

Aave DAO is currently voting on a strategic partnership proposal with Instadapp. The proposal seeks to invest $4M from the DAO treasury into INST tokens at a 350M FDV. With the acquired INST tokens, Aave DAO plans to allocate up to 1/3 to support Fluid via Merit.
The partnership offers several key benefits for both protocols:
- Enhanced GHO adoption through Fluid integration
- Priority support for Aave protocol integrations
- Mutual governance participation opportunities
The proposal, submitted by the ACI, reveals that deal terms were negotiated during Devcon as an OTC transaction. Community members have requested additional clarity on the deal structure and questioned the expedited timeline, as the proposal bypassed standard governance procedures. The proposal has reached quorum with voting set to conclude on December 7th.

Proposal Tracker™️

✅ APPROVED | Uniswap - Supporting Tally’s Development and Enhancements for Uniswap DAO Governance

Summary: This proposal requests $500,000 over two years to support Tally's continued development of Uniswap DAO's governance infrastructure. The initiative includes quarterly payments of $62,500 USD in UNI tokens through the Uniswap Accountability Committee (UAC). The proposal will enable continued support via Tally, introducing new features such as gasless voting and enhanced staking capabilities.

💬 DISCUSSION | Aura Finance - Proposal for Long-Term Funding of the Aura Ecosystem

Summary: This proposal requests 541,720 AURA from the treasury to establish a 1,000,000 vlAURA position, generating sustainable yield for the Aura Ecosystem Fund. The strategy aims to provide approximately 320,000 USDC in annual returns through an 89% yield rate while minimizing sell pressure on AURA tokens.

⚡ VOTING LIVE | Uniswap - Uniswap DAO Principles

Summary: This proposal establishes comprehensive governance principles for the Uniswap DAO. The framework emphasizes onchain transparency, conflict disclosure, and decentralized decision-making while maintaining professional standards for proposal review and stakeholder communication. The initiative includes specific requirements for delegate behavior and accountability, supported by established governance processes and documentation.

From the Lab

Team Offsite: Phuket 2024 Recap

Last month, the StableLab team gathered on the tropical beaches of Phuket, Thailand for another team offsite. As a remote-first company, we cherish the value of face time with each other. We spent time bonding, eating, drinking, and laughing a week before Devcon 7. Enjoy the moments we shared 🩶

dYdX Foundation: Insights on Scaling an Appchain Ecosystem

In the latest StablePod episode, we're joined by Josh Watts, Head of Governance and Strategic Initiatives at the dYdX Foundation. Josh shares his journey to joining the Foundation, the unique culture of Cosmos, the dYdX Unlimited Protocol Upgrade, and much more. Enjoy our conversation!

📺 Watch on YouTube
🎧 Listen on Spotify & Apple

Mobilizing the Uniswap DAO Treasury

We’re excited to announce the release of the 'Mobilizing the Uniswap DAO Treasury Report,' a major achievement for the Uniswap community, tokenholders, and the broader ecosystem. We had the great honor of collaborating with the Uniswap Treasury Working Group (UTWG), which includes the teams at Arana Digital, Franklin DAO, and karpatkey to produce this 150-page report on the future of the $3.5B treasury. The report includes stakeholder interviews, proposed portfolio strategies, simulations, impact analyses, recommendations, and other insights.

One of the most comprehensive endeavors spearheaded by the Uniswap community. It was an honor to contribute to this. 🫶

▶︎ Read the full report HERE

Raph x Rootstock Collective: Building Decentralized Communities X Spaces

Last week, Raph, our Governance Lead, joined an X Spaces event hosted by the Rootstock Collective team to discuss building and fostering decentralized communities.

▶︎ Listen back to the recording HERE

mel.eth x Optimism: Analyzing Collective Power Dynamics Livestream

On Wednesday, Mel, our Governance Researcher, joined a livestream hosted by Optimism to discuss the concentration of power and the power dynamics at play within the Optimism Collective.

▶︎ Mel’s presentation begins at 44:00

❲ Our Voting ❳

📆 November 29th → December 5th | 🗳️ Total Votes: 14

See our full vote history and detailed rationale HERE.

Meme

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Governance Lab

👨‍🔬 Governance Lab #078

Lab Report #078 - Berachain Morpho Blue License, Fluid Protocol Growth Strategy, Aave DAO INST Investment, and more

License Agreement

Protocol Rebranding

Strategic Partnership

Links

🚀 Launches, Deployments, Partnerships, and M&A

📑 Reads, Insights, and Reports

🧗 Milestones & Updates

🔒 Security, Risk, & Hacks

🗞️ Everything Else

📺 Podcasts, Presentations, & Listens