👨‍🔬 Governance Lab #087

Lab Report #087 - Sky Protocol Zero Core Expenses, Uniswap Foundation Funding Request, Compound V4 Development, and more

Feb 20, 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 👀
0️⃣ Rune shares plan for zero Sky core expenses
💰 Uniswap Foundation requests $165.5M two-year budget
🏗️ Compound DAO discusses V4 upgrade
🎙️ New StablePod w/ Chris Bradbury (Summer.fi)

Let’s dive in 🏊

Sky Protocol

Sky Ecosystem discusses zero core expenses initiative from Rune

Rune has shared his plan to eliminate all core expenses by the end of 2025 through a new Star Agent framework. This transformation will convert all core operations into autonomous entities while preserving protocol stability and innovation.
The initiative will restructure the protocol's current monthly expenses of 4M USDS, allocating 1M USDS to foundational projects and 3M USDS to ongoing operations. These costs will be distributed across various Star Agents, including Spark for DeFi operations, specialized teams for RWA integration, Solana deployment, frontend development, and governance tooling. The framework introduces two categories of Executor Agents to manage operations and compliance, establishing a self-sustaining ecosystem.

Uniswap

Uniswap Foundation requests $165.5M in funding

The Uniswap Foundation has submitted a funding proposal requesting $165.5M to power operations and development through 2026. The funding package is structured across three primary areas: $95.4M for grants, $25.1M for operations, and $45M for liquidity incentives – a significant expansion of the Foundation's scope and impact. The proposal outlines four strategic priorities: expanding network supply across EVM chains, developing premier DeFi development platforms, driving revenue through the UVN, and onboarding Protocol Core Contributors.
The initiative has generated notable community discussion, with delegates requesting more detailed KPIs, questioning the two-year timeline, and advocating for enhanced transparency measures.

Compound

Compound DAO weighs V4 upgrade proposal

Compound has launched a temp check for its V4 upgrade proposal, introducing major improvements to governance efficiency, cross-chain rewards, and liquidation mechanisms. The evolution from Sandbox to V4 seeks to build a more responsive and adaptable lending platform through dynamic market parameters and optimized governance processes.
The proposal includes a development roadmap spanning 10-16 months, requesting approximately $600,000 in COMP tokens. Core innovations include data-driven semi-algorithmic governance, partial liquidation support, and efficient cross-chain COMP reward distribution through just-in-time bridging. Community members have expressed concerns about the extended timeline given market competition and have requested further clarification on automated system implementations.

Proposal Tracker™️

⚡ VOTING UNDERWAY | Everclear DAO - Community Leader Incentivization H1 2025

Summary: This proposal requests 3,360,000 CLEAR tokens ($144,480) for Everclear's Community Leadership program in Q1-Q2 2025. The funding supports three Community Administrators ($400/week), four Moderators ($200/week), and one Content Creator ($200/week). The program provides 24/7 community support, educational content, and marketing initiatives, with KPIs tracking Discord engagement, social media growth, and content creation. The framework includes a 725,000 CLEAR buffer allocation and 700,000 CLEAR for community development, with monthly compensation reviews and transparent reporting.

💬 DISCUSSION | Sky Ecosystem - Simplifying Seal Engine and Activation (Removing Exit Fee)

Summary: This proposal restructures Sky Protocol's tokenomics by removing the Seal Engine and Exit Fee mechanism in favor of a simplified Activation system that consolidates protocol surplus and token rewards. It introduces SKYLEV, a USDS-pegged token with $45M+ projected initial liquidity, offering enhanced savings rates. The framework implements market-driven stability through utilization-based fees, liquidation haircuts, and automated debt ceiling adjustments. SKYLEV's architecture isolates the protocol from SKY-collateralized position risk, enabling higher debt ceilings while maintaining security through stability fees, liquidation mechanisms, and automated risk management.

💬 DISCUSSION | dYdX DAO - Operations subDAO Third Mandate Funding Framework

Summary: This proposal outlines an $11.65M funding allocation for dYdX Operations subDAO's third mandate, providing an 18-month runway through converting 14.4M DYDX tokens for infrastructure maintenance of web frontend, Chain Indexer, and mobile applications. The Treasury subDAO proposes two funding structures: a conservative 12-month direct runway with 6 months of staking funding, or an aggressive 9-month runway with 9-month staking allocation, maintaining a $450k monthly burn rate.

From the Lab

Summer.fi: Unlocking Access to the best DeFi Yields

On the latest StablePod episode, we're joined by Chris Bradbury, CEO of SummerFi. We discuss the importance of UX in DeFi, the launch of the new Lazy Summer Protocol, the demographics of their user base, and the development process behind their new offerings. Chris shares insights into how user feedback has shaped their products and the challenges in helping launch a new DeFi protocol.

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

Meet the Team: Kaf

In our latest blogpost, Kaf shares his unique journey from working in the maritime industry to falling deep into DAOs and ultimately joining StableLab as Governance Analyst.

▶︎ READ his story

Delegate to us at Superfluid DAO

StableLab is pleased to announce we’ve joined Superfluid DAO as a delegate! We’re bringing our governance expertise to help Superfluid scale and strengthen its onchain financial infrastructure.

If you're claiming SUP, you can already delegate to us. Let’s make Superfluid governance great from day one.

▶︎ Claim your $SUP & Delegate to StableLab HERE

Meet the Team at ETHDenver

Find some of our team members at ETH Denver next week. Nneoma, Matt, and Mel will be in attendance at the main conference, dozens of side events, and beyond. DM us to meet up or just say hi!