👨🔬 Governance Lab #080
Lab Report #080 - Aave v. Polygon, Arbitrum MVP Framework, DEP $4M Funding Request, and more
gm frens 👋
Welcome back to the Governance Lab, your weekly source for all things StableLab, DeFi, and DAO Governance.
Note, this is the last newsletter of the year due to the holiday break. Look out for our year-in-review video over the break!
Happy Holidays. Stay safu. and see you all next year 🩶
At a Glance 👀
👻 Aave DAO proposes Polygon deployment removal
⭐ Arbitrum DAO defines mission, vision, and purpose framework
💰 dYdX Ecosystem Development Program seeks $4M funding
Let’s dive in 🏊
Polygone?
Aave DAO debates Polygon deployment removal
ACI has submitted a controversial proposal to wind down Aave deployments on Polygon. The move comes in response to Polygon’s recent proposal to rehypothecate bridge assets into Morpho. Marc Zeller’s proposal claims to be motivated by a need to protect users from increased risks associated with bridge vulnerabilities should the Polygon proposal proceed. To remove these deployments, the proposal seeks to set LTV to 0% for DAI, USDC.e, and USDT on both Polygon V2 and V3 deployments, while adjusting Reserve Factors, including an increase to 25% for USDT.
Community members have emphasized the need for careful implementation to protect existing user positions. Words and accusations were exchanged on crypto twitter this week by Aave and Polygon contributors alike.
For now, the Pre-PIP at Polygon seems as good as dead, while the fate of the Aave proposal remains unclear.
MVP Framework
Arbitrum DAO introduces unified strategic framework
Arbitrum DAO has passed a proposal establishing its Mission, Vision, and Purpose (MVP) framework to align the DAO on fundamental goals. Led by Entropy Advisors, the framework establishes three core principles: defending and guiding the ecosystem (Purpose), empowering onchain building freedom (Mission), and becoming home to universal onchain adoption (Vision)
Implementation will proceed in three phases: MVP establishment, Strategic Objective Setting (SOS), and aligned budgeting. Following a 6-month trial period with community feedback and adjustments, the MVP will be formally incorporated into the Constitution through a vote.
The framework aims to address current inefficiencies in initiative evaluation and organizational alignment. A SOS proposal is planned for late December/early January.
DEP Funding Request
dYdX community considers $4M funding allocation for DEP
The dYdX Ecosystem Development Program (DEP) has requested a $4M allocation from the Treasury subDAO to fund operations through March 2026. The DEP, previously known as the dYdX Grants Program, serves to grow dYdX via strategic partnerships, impactful growth initiatives, and community contributions.
Notable achievements funded by the DEP include Skip:Connect oracle integration, Market Map implementation, MegaVault launch, and various infrastructure improvements
The proposal notably shifts funding of the DEP from the Community Treasury to the Treasury subDAO’s revenue, claiming to be a more sustainable funding model for ecosystem growth.
Links
🚀 Launches, Deployments, Partnerships, and M&A
Introducing: Monad Foundation
Fuel Genesis is Here
Sophon Mainnet is live
Sonic Mainnet is live
Swellchain is live
📑 Reads, Insights, and Reports
Money View of the Polygon Bridge Drama
Aave v4 Dive-in Episode 1
Protocol Owned SNAX
Wintermute DeFi Governance Digest: December 2024 | Week 3
The XYZ Decentralization Index: A Framework for Assessing Decentralization in Crypto Protocols
2024 Onchain Users Report by Flipside
🧗 Milestones & Updates
LayerZero Fee Switch Referendum
Optimism - Special Voting Cycle 31a Proposal Roundup
🔒 Security, Risk, & Hacks
Engagement of New Legal Counsel for 1inch DAO
🗞️ Everything Else
Arbitrum DAO - Deploy Fluid DEX on Arbitrum Network
Aave DAO - TokenLogic Financial Services Provider
Aave DAO - Deploy Aave v3 on Sonic
Compound DAO - Deployment of Compound III on Sonic
Rari DAO - RARI Foundation 2025 Operational Budget
Maple DAO - stSYRUP as the Sole Governance Token of the Maple Finance Ecosystem
Lido DAO - Extend On-Chain Voting Duration
1inch DAO - Reduce Proposal Quorum to 8M
Balancer DAO - Onboard Balancer DAO on karpatkey’s Execution App
Element DAO - Payment Proposal for Yield Sources Onboarding & Deployment to Other Chains and L2s (for EGP-34)
Morpho DAO - Oku Crosschain Deployment Support
Introducing Ink: Our Vision and Participation in Optimism Governance
📺 Podcasts, Presentations, & Listens
Paul Frambot (Morpho): Ushering in DeFi’s Next Era on Bell Curve
Fireside Chat: Morpho CEO Paul Frambot at Variant LP Day 2024
Proposal Tracker™️
⚡ VOTING UNDERWAY | Arbitrum - OpCo: A DAO-adjacent Entity for Strategy Execution
Summary: This proposal requests authorization to establish OpCo, a DAO-adjacent legal entity, with an allocation of 22M ARB tokens (~$12M USD in operating capital) to fund operations through 2025. The initiative creates an operational mesh layer with internal executive positions and a five-person oversight committee (OAT), enabling streamlined execution of DAO-defined strategies within Financial Management and Ecosystem Support verticals.
💬 DISCUSSION | Morpho - Crosschain Deployments Framework
Summary: This proposal establishes a framework for deploying Morpho across multiple networks without initial frontend support or MORPHO rewards. The initiative targets deployment on 16+ chains including Polygon POS, Avalanche, Arbitrum, and others. The framework includes provisions for future upgrades to core deployments with full support, while maintaining Morpho DAO ownership of all protocol instances deployed under this framework.
💬 DISCUSSION | Aave DAO - karpatkey as GHO Growth Service Provider
Summary: This proposal requests appointment of karpatkey as a dedicated GHO growth service provider for a 6-month term, with a budget of 250K GHO. The initiative focuses on expanding GHO adoption on Gnosis Chain through strategic integrations, including the establishment of a 5M Aave treasury for market-making activities and the introduction of an sGHO vault.
From the Lab
StablePod Episode of the Year
Top StablePod Episode of the Year goes to... Marcelo, Co-founder of karpatkey 🏆👏
Thank you to everyone who tuned in this year 🩶
▶︎ Watch StablePod HERE
❲ Our Voting ❳
📆 December 13th → December 19th | 🗳️ Total Votes: 38
See our full vote history and detailed rationale HERE.
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