👨‍🔬 Governance Lab #093

Lab Report #093 - Compound Growth Program Renewal, LlamaRisk Service Provider Extension, Velora DAO Base Expansion, and more

Apr 04, 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 DAO votes on AlphaGrowth’s Program v4
🔍 LlamaRisk seeks renewal as Aave Risk Service Provider with 25% fee increase
🌉 Velora DAO (formerly ParaSwap) plans Project Miro token expansion to Base

Let’s dive in 🏊

Compound Governance

AlphaGrowth proposes renewal of Compound Growth Program

AlphaGrowth has proposed renewing the Compound Growth Program for 12 months with a $5.35M budget (127,426 COMP at $42/token). The revised proposal features a reduced scope and lower budget based on community feedback. Their 2024 program delivered impressive results with a 2.22x ROI, generating $8.91M in reserve growth against a $4M investment.
For 2025, the team targets $750M in new TVL, 8-15 new markets, and expansion to 3-4 chains. Key initiatives include supporting new chains, developing structured products, implementing Staked COMP, and creating TradFi rails. The payment structure includes 33% upfront with 67% streamed over 9 months via Sablier, with DAO revocation rights. The controversial proposal is poised to fail at the time of writing.

Aave DAO

LlamaRisk proposes renewal as Risk Service Provider

LlamaRisk has submitted a proposal to renew their role as an Aave Service Provider for a third epoch, requesting a service fee of $1M/year, a 25% increase from their previous term. This adjustment reflects their expanded engagement, the need to retain specialized talent dedicated to Aave's risk management, and their commitment to maintaining high service standards in a growing ecosystem.
For the upcoming epoch, LlamaRisk plans to focus on several strategic initiatives: providing dedicated support as members of the newly established Aave Finance Committee, supporting Smart Value Recapture (SVR) implementation, collaborating on RWA risk assessment through the Horizon program, supporting Aave's expansion to Aptos, and continuing support for GHO Savings rollout. The proposal has received strong community support, with delegates noting that LlamaRisk and Chaos Labs have reached a "sweetspot" of collaboration without excessive overlap.

Velora DAO

Velora DAO approves Project Miro token expansion to Base

Velora DAO (formerly ParaSwap) has approved a proposal to expand the Project Miro token and staking feature over to Base. This expansion would complement existing deployments on Ethereum and Optimism, strengthening Velora's cross-rollup ecosystem while leveraging Base's growing TVL, ParaSwap Delta presence, and superchain integration.
The proposal includes development of a cross-chain migration tool by the Laita team to help users transfer staked assets from Ethereum and Optimism to Base. It also introduces a simplified reward distribution method where all rewards go to the chain with the highest staked amount, rather than being proportionally distributed across chains.

Proposal Tracker™️

💬 DISCUSSION | ENS DAO - Service Provider Season 2 Vote Amendment Proposal

Summary: This proposal seeks to amend the voting process for ENS Service Provider selection that was established in EP 6.3 (passed February 25th with a $4.5M budget for 2025). Following an April 1st Delegate All Hands meeting and extensive discussions, the amendment would allow voters to express preferences for both teams and their respective budgets. The new system would present extended and basic budget options as separate choices, with voters ranking either option for each candidate.

💬 DISCUSSION | Velora DAO - Velora Governance Task Force

Summary: This proposal aims to establish a Governance Task Force within Velora DAO (formerly ParaSwap), transitioning SEEDGov from their current role as delegates and DIP Program Managers to a more comprehensive governance position. The task force would operate for 12 months (April 2025-March 2026) with a 6-month review point, coordinating efforts between stakeholders, supporting the creation of working groups, improving governance processes, moderating the forum, organizing community calls, and attracting talent to the DAO. The proposal suggests a budget of $180,000 USD, split between a fixed monthly payment of $10,000 (totaling $120,000) and a performance-based component of 1.8% of protocol revenue up to $60,000.

💬 DISCUSSION | Aave DAO - GHO Savings Upgrade

Summary: This ARFC by kpk, Tokenlogic, and the ACI seeks governance feedback on the technical design of sGHO (a yield-bearing GHO vault) and the Aave Savings Rate (ASR). The system consists of two interoperable smart contracts: an sGHO ERC-4626 auto-compounding vault and a YieldMaestro that manages GHO distribution to achieve stable yield rates. Users would deposit GHO into sGHO and receive an ERC-20 receipt token that accrues value over time.

From the Lab

The Principal-Agent Problem in DAOs

Our latest blog post explores the Principal-Agent Problem in DAOs, examining how delegation creates misalignment between decision-makers (agents) and token holders (principals).

▶︎ READ the blogpost

Scroll DAO Delegate Accelerator

We’ve submitted a new proposal at Scroll DAO that aims to train existing and new delegates, incentivize performance through SCR delegation, and provide a structured curriculum across 7 governance modules. The proposal requests $90,000 + 100,000 SCR to fund the development, facilitation, and incentive mechanisms. This pilot program lays the foundation for sustainable, high-impact participation in Scroll DAO.

▶︎ READ the full proposal