Flipside Governance Recap | 17 February 2023
Intro
Welcome to the Flipside Governance Team Recap. Here you’ll get a full view of what we‘re up to each week, from penning proposals to publishing research to our all-important voting activity & rationales. Enjoy!
🚨 Team Highlights
Raph will soon be heading to ETHDenver from February 27th — March 3rd.
If you’re around, give him a shout for a coffee or a good German lager 😎 You may reach out to him on Twitter @raphbaph — happy hunting! He’ll be at Shelling Point and at DAOs Denver as well as ETHDenver, if you’re there, say hi!
📰 Across the Industry: Governance News of the Week
Optimism Makes the Bedrock
Optimism is approaching its next chain upgrade dubbed Bedrock. Thanks to delegates’ approval from Flipside, GFX, and others this upgrade is soon approaching a vote.
We can summarize Bedrock, as it’s currently defined in the proposal:
“The Bedrock release of the OP Stack represents the culmination of years of research and development by the Ethereum scaling community and is a complete rewrite of the core components of the Optimism architecture. This upgrade offers a new level of modularity, simplicity, and Ethereum equivalence for Layer 2 solutions, providing unprecedented performance and functionality.”
By approving this upgrade, voters are helping pave the way for a more performant and secure version of Optimism. But wait — it doesn’t stop there, OP is upgrading to on-chain voting too!
Partnering with Agora, a successful recipient of their Grants program, Optimism is moving away from Snapshot voting to an on-chain solution via Agora.
This is an important step in the DAO’s maturity. Check out the first test vote and participate here.
While you’re at it, you may add a comment (and maybe qualify for the next airdrop along the way).
📊 Flipside Governance | Analysis of the Week
Osmosis Zone is an automated market maker (AMM) within the Cosmos ecosystem that was heavily inspired by Balancer. A majority of the market makers are two-token pools, who’s token prices are dictated by the well known constant product function x*y = k. In this function, x and y represent the number of each token in a pool and k is a constant that dictates the relative price of the tokens.
But what happens when a pool contains more than two tokens? This is important to understand, as liquidity pools on Osmosis can contain up to eight different tokens. The answer is simple: the well-known constant product function is still valid, but must include all the tokens that are in the pool.
To better understand this, let’s look at Pool #851 which is a three-token liquidity pool with FET, JKL, and BCNA tokens. This pool can be represented by a constant-product function of:
xyz = k
Where x, y, and z represent the amount of FET, JKL, and BCNA tokens in the liquidity pool respectively. One constant product curve that can be valid in this pool is shown below. As one token is swapped for another token in the pool, the k ratio will remain constant.
Potential Constant Product Curve of Osmosis Pool #851 — FET / JKL / BCNA
If you enjoyed this data write up, make sure you are following Flipside Governance. We have a major piece on Balancer dropping next week and the entire write up on Osmosis coming soon.
📜 Flipside Governance Voting Activity
Into the weekend sunset…
For more all-around governance content, be sure to follow us on Twitter or here on Medium. We’ll keep you updated.
Hear, hear! If you dig the work we’re doing for our partner DAOs and want to delegate to us, click the links below to get to the delegation page:
If you are interested in joining the Flipside Governance team, we are always listening — DM @flipsidegov on Twitter.
