👨‍🔬 Governance Lab #085

Lab Report #085 - Compound-Morpho-Polygon Partnership, Aave Grants Treasury Allocation, Unichain Validator Network, and more.

Feb 06, 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 👀
💍 Compound, Morpho, and Polygon propose $3M incentivized partnership
💰 Aave Grants DAO treasury to be transferred to Aave DAO
🏗️ Unichain announces validator network revenue structure
🎙️ New StablePod w/ Greg Di Prisco (M^0)

Let’s dive in 🏊

Compound

Compound, Morpho, and Polygon propose strategic partnership with $3M incentives

Compound DAO is evaluating a proposal for a three-way collaboration with Morpho and Polygon. The partnership would enable Compound to launch Morpho-powered lending vaults on Polygon, supported by $3M in total incentives - $1.5M each from Compound and Polygon Labs.
Under the proposed framework, Compound DAO would retain complete ownership of the vaults, with Gauntlet acting as Curator to maximize risk-adjusted returns. The structure includes a 10% Performance Fee, comparable to Compound's traditional reserve factor, with all revenue flowing to Compound DAO during the joint incentives trial program.
The partnership would follow a structured five-phase implementation over approximately 20 weeks. The phases include market bootstrapping, integration expansion, incentive optimization, and conclude with a comprehensive retrospective analysis.

Aave

Aave DAO considers proposal to reallocate Grants DAO treasury

Following the wind-down of Aave Grants DAO (AGD) operations announced in August 2024, a new proposal has been posted to transfer the remaining AGD treasury assets to Aave DAO. The proposal, authored by ACI, aims to efficiently reallocate these resources while ensuring proper governance oversight of their future utility.
The treasury assets under consideration include holdings across multiple tokens, including 321,768 GHO, 259,221 OP tokens, and 2,275 AAVE tokens, among others. The initiative represents a strategic consolidation of DAO resources following AGD's operational conclusion.

Uniswap

Uniswap Foundation unveils Unichain Validator Network revenue structure

The Uniswap Foundation has announced details about the Unichain Validation Network (UVN), announcing a revenue-sharing structure that allocates 65% of net chain revenue to validators and stakers. The revenue distribution model includes specific allocations to various stakeholders, with the Optimism Collective receiving either 2.5% of gross chain revenue or 15% of net chain revenue (whichever is greater), and the sequencer operator (currently Uniswap Labs) receiving approximately 20% of net revenue.
The implementation will proceed in phases, beginning with a test version on the Unichain Experimental testnet. During the interim period before full UVN deployment, the Uniswap Foundation will manage these funds through a Unichain Growth Reserve, focusing on accelerating developer growth and subsidizing onchain activity.

Proposal Tracker™️

⚡ VOTING UNDERWAY | Ethena DAO - Ethena Risk Committee Elections February 2025

Summary: This proposal outlines the reelection framework for the Ethena Foundation Risk Committee, establishing a comprehensive selection process for both incumbent members and new applicants. The framework includes eight shortlisted candidates comprising five incumbent members (Block Analitica, Blockworks Advisory, Ethena Labs, Llama Risk, Steakhouse Financial) and three new applicants (exTreasury, Kairos Research, Untangled), implementing a ranked voting mechanism through Snapshot.

💬 DISCUSSION | Compound DAO - Deploy Compound III on Unichain

Summary: This proposal outlines the deployment of Compound III on Unichain, a new L2 by Uniswap. The framework includes market deployments for both ETH and USDC pairs initially focused on wstETH, with planned expansion to additional assets including weETH, ezETH, rsETH, and others. Implementation will be funded through the Compound Growth Program via WOOF development partners, complemented by two $450k Uniswap Foundation grants for lending protocol TVL growth.

💬 DISCUSSION | Threshold DAO - The Future of Threshold, Continued

Summary: This proposal introduces a comprehensive restructuring of the Threshold Network, transitioning to a single-app focus for tBTC with the goal of establishing it as the canonical cross-chain Bitcoin liquidity hub. The framework establishes the separation of TACo into an independent network over a 6-month transition period, while reorganizing the DAO to reduce annual expenses from $1.5M to achieve profitability through the end of staking emissions by February 15th. The implementation includes sunsetting multiple guilds, transferring responsibilities to tLabs, and maintaining a focused treasury of ~420M T tokens and $8-9M in reserve assets, supported by a structured transition maintaining 3.75% yield for TACo nodes during migration.

From the Lab

M^0: Designing the Future of Decentralized Money

On the latest StablePod episode, we're joined by Greg Di Prisco, Cofounder of M^0. Greg shares the founding story of M^0, some of the lessons he learned while building Ajna, recent integrations and partnerships with Noble and Usual, and the unique governance model at M^0.

▶︎ 📺 Watch on YouTube
▶︎ 🎧 Listen on Spotify & Apple

Introducing Rootstock Shepherds

The Rootstock Collective Shepherds ― a group of trusted community members helping guide and influence Rootstock governance. We're pleased to be part of this initial group spearheading the development of the Collective towards robust decentralization. See you in the Rootstock Forums!