👨‍🔬 Governance Lab #083

Lab Report #083 - Yearn Bearn SubDAO, Aztec Governance Framework, Frax WLFI Investment, and more

Jan 23, 2025

gm frens 👋

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

As always, we've filtered through the noise to bring you the governance signals (and drama) that matter.

At a Glance 👀
🐻 Yearn DAO considers Bearn subDAO
🌽 Aztec Network publishes Governance Process
🇺🇸 Frax DAO debates WLFI investment

Let’s dive in 🏊

Yearn

Yearn DAO considers Bearn subDAO proposal

Yearn is evaluating a proposal to establish "Bearn," a new subDAO focused on building and launching products on Berachain. The initiative requests $600,000 in funding in exchange for 10% of the BEARN token supply, along with an additional $1 million in liquidity to be locked for one year.
The proposal outlines two primary products: a Bera-native stablecoin and yBGT, a liquid locker for BGT-eligible tokens. The stablecoin's backing would be fully deposited into Yearn vaults, potentially driving significant TVL growth for the protocol. Meanwhile, yBGT would function similarly to yCRV, offering both earning and auto-compounding options for users.

Aztec

Aztec Network publishes proposed governance framework

Aztec has released an RFC forum post outlining its proposed governance framework, introducing a multi-contract system designed to facilitate decision-making across the network. The framework emphasizes L1-based governance to prevent potential censorship while maintaining strong security.
The system introduces a unique nomination process where sequencers must signal support for proposals during their assigned slots, requiring 667 signals within 1,000 blocks to advance to community voting. This mechanism aims to balance efficient proposal processing with adequate security measures, while a "social slashing" system enables the community to penalize malicious actors.

Frax

Frax DAO debates WLFI investment

A discussion has begun within the Frax community regarding a proposed $5M investment in World Liberty Financial (WLFI), with potential follow-on investment of an additional $5 million. The proposal, aimed at positioning Frax within WLFI's ecosystem, has caused significant controversy and opposition from community members. World Liberty Financial is an Aave fork “inspired” by President Donald Trump.
Critics of the proposal highlight several reasons, including the high valuation, limited governance influence from the proposed investment size, and potential political neutrality issues. Community members have also raised alarms about the token's price movement during its sale phase, noting a 300% increase from $0.015 to $0.05, which could lead to significant selling pressure upon unlock.

Proposal Tracker™️

⏳ VOTE PENDING | Aave DAO - Joint Incentive Program With Polygon

Summary: This proposal introduces a $3M joint liquidity incentive program between Polygon and Aave DAO, each contributing $1.5M in native tokens to restore ecosystem relationships and drive growth on Polygon PoS. The initiative aims to distribute incentives over 4 months, offering 3-4% APR for lenders and 1-2% APR for borrowers.

💬 DISCUSSION | Lido DAO - stETH/wstETH deployment on Soneium

Summary: This proposal outlines the deployment of stETH and wstETH to Soneium, Sony Block Solutions Labs' new layer-2 network built on the OP Stack. The framework incorporates verified contract deployments on both networks, comprehensive audit coverage, and integration with existing bridge infrastructure through Chainlink CCIP, LayerZero, and Axelar.

💬 DISCUSSION | Arbitrum DAO - Request for Proposals: Treasury Management Services for Arbitrum DAO

Summary: This proposal outlines a comprehensive RFP process for managing Arbitrum DAO's 25M ARB token treasury, with specific allocations of 10M ARB for on-chain yield strategies and 15M ARB for stablecoin conversion over three months. The implementation includes thorough submission requirements, clear custody parameters under the Arbitrum Foundation, and comprehensive reporting mechanisms, targeting optimized treasury management while maintaining robust security measures through established monitoring protocols.

💬 DISCUSSION | Uniswap DAO - Uniswap DAO Tendering Procedure

Summary: This proposal establishes a structured tendering process for Uniswap DAO resource allocation, introducing competitive bidding alongside existing procedures. The framework implements a six-step process from needs identification through contract award, incorporating accountability measures and future automation potential.

From the Lab

Multichain Primary & Secondary Protocol Fees

We've submitted a new proposal at Rari DAO focused on establishing a fee structure for both primary and secondary protocol fees across multiple chains. The proposal aims to optimize revenue streams while maintaining competitiveness.

▶︎ Check out the full proposal HERE

Forse Website Update

We’ve made visual updates to the Forse Website. Explore our new look Features Section, Terminals Section, Protocol Spotlight Section. Only at forse.io