The Weekly | 28 April 2023
Welcome to The Weekly, by Flipside Governance.
The same team, same content — refreshed with a new format.
Here you’ll get a full view of what we‘re up to, from penning proposals to publishing research to our all-important voting activity & rationales. Enjoy!
Flipside Presents Adding $ARB to Aave v3 Arbitrum
Inspired by the growing volumes of $ARB on centralized and decentralized exchanges (around ~$1,000,000,000/day,) Flipside presented the DAO with a proposal to add this token to Aave’s v3 Arbitrum market.
Leveraging our role as delegates within both Aave and Arbitrum, ARB on v3 is an opportunity for much-needed revenue and alignment with a growing community.
Teams such as Llama support this initiative, citing strong demand for protocols like Radiant Capital — with around $9.0M in deposits and $2.5M in borrows.
As it stands users can use their $ARB to:
- Vote on governance within the Arbitrum DAO
- Provide liquidity on DEXs such as Uniswap
- Trade and swap via centralized exchanges.
- Lend/deposit as collateral/borrow on Radiant
- Lend/trade decentralized options on Timeswap
Shoutout to the Llama and TokenLogic teams for aggregating these options.
We’re particularly excited about this opportunity for Aave, as it is adding more utility to the $ARB token, more optionality within the v3 market, plus more revenue opportunities.
Flipside will continue to monitor community feedback as the proposal matures. We hope to migrate this proposal to Snapshot for voting by next week.
Aave Evaluates The Merits of Private Voting
Aave voters are evaluating the merits of a 2-month experiment with private voting, thanks to a partnership between Flipside, LBS, and the University of Michigan.
Added to the Snapshot, off-chain stage of the Governance protocol — private voting hides the decision of voters to encourage more fair, unbiased voting devoid of influence or corruption.
Shielded voting is using a new feature called “Shielded Voting” powered by Shutter Network. You can read more about the implementation of this feature here.
Check out this demo for PistachioDAO:
This feature may be enabled or disabled by Snapshot space admins at any point. The current proposal, now in the TEMP CHECK stage, would kick off a two-month trial with the privacy feature enabled.
The discussions around the topic are passionate and intriguing and highlight the pros and cons of this potential experiment. This decision would be the first instance of a large DAO embracing private voting.
If you’re an AAVE voter — feel free to cast your vote here!
This week we will be hitting you with a data double feature discussing the “guts” behind the two Osmosis applications launched!
Osmosis Prop Simulator:
First up is the Osmosis Prop Simulator, an application that allows users to both simulate the outcomes of proposals and to see political parties within Osmosis. To simulate the outcome of a potential proposal, users drag and drop different validators into “buckets” depending on which way they assume they will vote. This allows for easy visualization of proposal outcomes.
This feature is reflective of the current validator voting power and Osmosis governance quorum. The validator voting power is live data pulled from Imperator’s API.
Osmosis quorum is 20% of the total voting power needed, with 50% “YES” votes needed to pass. However, 33% “NO WITH VETO” votes can also result in a proposal not passing, even if it has obtained 50% “YES” votes as well. This information combined with validator voting power is used to create the results section.
The next feature of the Osmosis Proposal Simulator is voting trends, which we dubbed “political parties”.
So how do we investigate voting trends within Osmosis? By looking at voting history based on proposal types and keywords within the proposal title.
When a proposal is first submitted on-chain, the proposal type, title, and description are stored within the transaction body. This can be seen by looking at the raw JSON for a proposal submission.
We then formed groups using keywords within the proposal title and proposal type that made sense within the context of Osmosis governance. As an example: A validator qualifies for the Interop Party, by consistently voting in the following manner:
Prop type(s):
- YES on “Set Superfluid Assets”
- YES on “Store Code”
- YES on “Client Update”
Vote YES on title keyword(s):
- “Integration”
- “Composability”
- “Bootstrap”
- “Match”
As these fields are available in the table “osmosis.core.governance_submit_proposal” on Flipside, these fields can then be joined to the table containing voting history. As you can see, political parties can be formed using only on-chain information.
Osmosis Votes Bot
The Osmosis Votes Bot is a Twitter bot that sends a tweet out for every validator vote submitted with an on-chain memo. The memo serves as the vote rationale and allows validators to share why they voted a certain way with the ease of a retweet.
So how do you get your validator’s votes included in the bot? The answer is simple: Just include a memo before submitting your memo on-chain. Using Keplr, the memo field appears in the “details” tab right above the gas selection.
Once the transaction has been submitted on-chain, it is stored as part of the transaction body and will be retrieved from the Flipside Crypto Osmosis database.
The bot runs once a day at 18:30 UTC, so please allow up to 24 hours for your vote and rationale to appear on Twitter. If you are not a validator but wish for your votes to be included as well please reach out!
Thanks for joining us for the latest version of the The Weekly.
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