👨‍🔬 Governance Lab #088

Lab Report #088 - OBOL Staking Proposal, Lens Chain Migration, Aave V3.3 Upgrade, and more

Feb 27, 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 👀
🍥 Obol Collective discusses staking mechanism
🙋‍♂️ Lens Chain requests inclusion in Elastic Network
🏗️ Aave DAO approves V3.3 upgrade

Let’s dive in 🏊

Obol Collective

Obol Collective considers introducing staking mechanism with liquid staking token

The Obol Colletive community is evaluating a proposal aimed at enhancing governance participation through a new liquid staking mechanism. The initiative will distribute 1% of the total OBOL supply annually as staking rewards, introducing stOBOL as a liquid staking derivative to enable broader DeFi integration.
By implementing staking requirements tied to delegation, the system aims to increase active governance participation while maintaining flexibility for token holders. The staking mechanism, built on the Tally Protocol, introduces features similar to successful implementations on Arbitrum DAO and Rari DAO.

ZKsync

Lens Chain proposes migration to Zksync’s Elastic Network

Lens Chain has submitted a governance proposal for inclusion in the Elastic Network, representing one of the largest genesis state migrations in the ecosystem's history. The initiative, developed in collaboration with Matter Labs, aims to seamlessly transfer over 600,000 user profiles and their associated data from Lens V2 on Polygon to the new Lens Chain infrastructure.
Both Matter Labs and the Lens team have conducted extensive security reviews, with ongoing data synchronization continuing throughout the voting process.

Aave

Aave DAO approves V3.3 upgrade with enhanced debt management

The Aave community has approved its important V3.3 protocol upgrade, introducing sophisticated debt management features and Umbrella system compatibility. The update focuses on streamlining liquidation processes and implementing precise tracking for unresolvable debts.
Key improvements include a new bad debt management system that objectively defines and handles unresolvable positions, creating essential groundwork for Umbrella's automated coverage mechanisms. The upgrade also introduces a unified 50% Close Factor across all positions, replacing individual reserve factors, and enables 100% liquidation for smaller positions to reduce dust accounts.

Proposal Tracker™️

💬 DISCUSSION | Sky Ecosystem - Sky Primitives Implementation Framework

Summary: This proposal establishes the foundational framework for Sky Primitives, implementing seven categories of modular building blocks that enable Star Agents to operate autonomously within the Sky Ecosystem. The system introduces Genesis, Operational, Ecosystem Upkeep, SkyLink, Stablecoin Demand-Side, Supply-Side, and Core Governance primitives, with specific mechanisms including Distribution Requirements (0.25% token supply/year), Market Cap Fee (0.3%), and Sky Senior Risk Capital components.

💬 DISCUSSION | Frax Finance - Frax North Star Proposal

Summary: This proposal makes changes to Frax Protocol's tokenomics and governance structure through the North Star Hardfork and associated mechanisms. It establishes a 10% annual emission schedule for FRAX (previously FXS) decreasing by 0.7% yearly to a 3% floor, with Year 1 allocations of 2.50M (25%) to Frax DAO operations, 1.25M (12.5%) for team incentives, 2.25M (22.5%) for community initiatives, and 2M each (20%) for veFRAX staking and FXTL conversions.

💬 DISCUSSION | Obol Collective - Unlock OBOL Token

Summary: This proposal enables the redemption of Locked OBOL Tokens (ERC-721) for transferable OBOL Tokens (ERC-20), with implementation beginning March 12th following community approval. The framework establishes a structured redemption process through the Tally UI for 500,000,000 total OBOL tokens, incorporating comprehensive security audits and maintaining claim functionality through April 24th.

From the Lab

Delegate to us at Obol Collective

StableLab is officially joining the Obol Collective as a delegate! We’re excited to contribute to Obol’s mission to supercharge Ethereum’s decentralization and scalability with Distributed Validator Technology (DVT).

▶︎ Delegate to StableLab HERE