DAOs: Aave’s business license vote, BadgerDAO’s restitution plan, Compound’s auditing proposals, Yam’s possible governance attack, Fei<>Rari merger passes, Uniswap v3 on Polygon, SushiSwap at a crossroads, CityDAO, and more!
Biweekly report on decentralized autonomous organizations vol.15, 11th December — 26th December
TL;DR
- Fei<>Rari merger passes
- Following in Uniswap’s footsteps, the Aave community voted to adopt a business license for Aave V3. A proposal in discussions to list the first regulated bank as a whitelister into the Aave Arc market
- Compound considered 3 governance proposals associated with enlisting the help of different code-auditing service providers. OpenZeppelin prevails in the vote. Coinbase launches Compound integration
- Uniswap team deploys Uniswap v3 to Polygon sidechain following successful governance vote
- The BadgerDAO community voted on the restitution plan. Badger smart contracts have been reactivated. BIP 82 is live on the forum for signal voting
- The Commons Stack announces Augmented Bonded Curve (ABC), allow for the commons based projects to be stored, measured, rewarded and grown
- Yam Finance rallies against unannounced governance proposal: The incident demonstrates the need for vigilance
- GnosisDAO’s GIP-18: TickDAO investment is live for voting. GIP-17 approved
- The first primary proposal of the API3 DAO has passed
- The proposal to upgrade Curve DAO to allow optional fractional votes is live. This opens a road to cross-chain voting and more fair voting by aggregators
- mStable and Balancer DAO announce treasury swap. Balancer launches boosted pools to increase LP yields
- MakerDAO deposit module to Compound
- CityDAO takes next steps: The DAO Council would be elected by Citizen NFT holders and take over responsibility from the existing core team
- Colony introduces points in its discord community
- Kleros’s KIP-46 approved
- Yearn Finance’s YIP-65: Evolving YFI Tokenomics is live
- Index Coop’s IIP-118: Priority Hiring Guidelines and directional commitment to the DSM & Airdrop passed. YIP-65: Evolving YFI Tokenomics is live
- PoolTogether’s PTIPs 50 & 51: FEI & Avalanche approved
- Terra Ecosystem’s Mirror protocol faces possibly malicious self-dealing proposal
- Debt DAO seeks partnership with OlympusDAO to help launch their DAO financing protocol
- Crypto asset manager Bitwise launched NFT index fund
- Ethereum Foundation announced huge funding allocations to client teams
- SushiSwap at a crossroads. New SUSHI governance votes
- Active proposals: Index Coop, LidoDAO, Synthetix, Badger DAO, GnosisDAO, Yearn Finance
- New & ongoing discussions: Aave, Balancer, GitcoinDAO, PieDAO, Uniswap, Compound, mStable, MakerDAO, Yam Finance, Curve, Nexus Mutual, BancorDAO, Akropolis, PoolTogether, API3, Idle, KyberDAO, Kleros
- DAOs: Social networks that can rewire the world
- DAOs are the future of work
- Aragon 2021 retrospective
- Podcasts on DAOs
- And more!
Overview
Blockchain technology is already radically transforming the financial system. However, properties such as trustlessness and immutability aren’t only useful in monetary applications. Another potential application is governance. Blockchains could enable entirely new types of organizations that can run autonomously without the need for coordination by a central entity.
“Instead of a hierarchical structure managed by a set of humans interacting in person and controlling property via the legal system, a decentralized organization involves a set of humans interacting with each other according to a protocol specified in code, and enforced on the blockchain.” — Vitalik Buterin
DAO stands for “decentralized autonomous organization” and can be described as an open-source blockchain protocol governed by a set of rules, created by its elected members, that automatically execute certain actions without the need for intermediaries.
In simple terms, a DAO is an organization that is governed by computer code and programs. As such, it has the ability to function autonomously, without the need for a central authority.
Like how DeFi is programmable money and how NFTs are programmable media, DAOs are programmable organizations of people.
DAOs Ecosystem Statistics
- Top active organizations this week sorted by decisions:
- Top active organizations this week sorted by discussions:
Read & Listen
- The Future of Work is Not Corporate — It’s DAOs and Crypto Networks by Ben Schecter on Future
- DAOs are the Future of Work by Jack du Rose on the Colony blog
- Wonderland Governance Framework by 0xWicked on The DeFi Wonderland
- The Internet of Jobs is coming by Kevin Owocki on Bankless
- FreeRoss DAO Distributes Governance Tokens to Control $5.5M Treasury by Shaurya Malwa on CoinDesk
- BitDAO Forms DAO With Harvard, Oxford Student Groups to Fund Crypto R&D by Jason Nelson on Decrypt
- The Case for Why DAOs Should Register as Legal Entities by Mark Lurie on The DeFiant
- Solving the Riddle of the DAO with Colorado’s Cooperative Laws by Jacqueline Radebaugh and Yev Muchnik on The DeFiant
- DAOs: Social networks that can rewire the world on Coinbase
- Seed Club DAO Podcast: Krause House — Flex Chapman, Commodore
- Brave New Work: What web3 means for the future of work w/ Chase Chapman
- Coinbase’s Around the Block: The realities of working for a DAO with Kinjal Shah
- Conversations with the Coop: Core Team — Gamma Strategies (formerly Visor Finance)
- Conversations with the Coop: Romain — Paladin.vote
Frameworks
Aragon
2021 = 2020¹⁰: an overview of what the Aragon core team and community have been up to and why they all are so excited about 2022!
DAO Global Hackathon — Final Event:
Colony
Recent blog posts
- The Metacolony Multisig: As planned, for safety reasons the Metacolony’s treasury transferred to a Metacolony Gnosis Safe multisig
- The CLNY Sale: Recap & Next Steps
- The Colony Points Experiment
- DAOs are the Future of Work
The Commons Stack
The Augmented Bonding Curve, Part 1: A Web3 Way to Fund Public Goods: The Augmented Bonding Curve (ABC) is designed to align the incentives of a community with support for a specific public good. In this new series of articles, we delve further into the “why”, “what” and “how” of the ABC.
Commons Stack Review: Sprint 28:
Kevin Owocki & Griff Green talk GIVeconomy:
Moloch
Governance
Aave
Aave Votes for Business License for Aave v3 Codebase: Similar to Uniswap v3, a business license will restrict copied projects for several years before transitioning to open source. Aave is gearing up to launch the v3 upgrade of their core protocol. Some of the top features of Aave v3 include:
- Efficiency mode: allowing much better capital efficiency while borrowing and lending similar assets such as stablecoins
- Isolation mode: limits borrowing capacity for risky collaterals, which allows for onboarding more long tail assets
- Exposure ceilings: similar to MakerDAO’s debt ceilings, limits total market exposure to selected assets to reduce tail risks
Altogether, these upgrades help address one of the most glaring shortcomings of defi money markets — traditionally money markets are only as strong as the weakest asset accepted as collateral. We’ve seen this with the recent Cream Finance hack, here an issue within a single collateral asset led to marketwide insolvency. Considering this important advantage, we could expect an array of forked/copied projects to emerge using the Aave v3 codebase if it was immediately released under an open source license.
The Aave community had been voting on license options via a Snapshot poll, with a business license considered against open source options of MIT or AGPL license. The MIT license option took an early lead, but in the end the business license option prevailed with strong support from defiactivist.eth, one of the largest AAVE token holders.
While some commentators were upset about the restrictive license choice, and outsize influence of a single large voter, participation took place in a gasless voting environment so any holders should have been free to participate if they favored a fully free and open source license.
Details are still being determined in a forum discussion, but it is expected that the business license would work similarly to Uniswap’s v3 license; reuse would be restricted for a period of 2–3 years, but governance would be able to grant exceptions to the license on a case by case basis. And the source code would be available for review from day 1, which allows for security review and responsible disclosures which are an important benefit of open source projects. [Aave’s License Vote]
Aave made waves earlier this year when it announced Aave Arc — a permissioned, KYC’d version of the Aave protocol for financial institutions. Now they’re considering another move related to adapting how open decentralized systems operate to business realities.
Following in Uniswap’s footsteps, the Aave community voted to adopt a business license for Aave V3 “where the code usage would be restricted for an initial amount of time (tentatively one year) before becoming free.” [View the (Close) Vote Results] According to the proposal:
The idea around the Business License is that the Aave Governance would keep the rights to authorize code forks even during the initial period with projects and teams that show great collaboration and participation in the Aave Ecosystem.
The proposal to renew Aave Grants passed an on-chain vote with unanimous support from the community. This increases funding to $2m for the next quarter to continue supporting teams, events, and other sponsorships that strengthen the Aave ecosystem.
Closed proposals
- Should nine (9) total risk parameters across seven (7) Aave V2 assets be adjusted? [end Dec 21]
- Do you want HAL integration? [end Dec 18]
- Certora Continuous Formal Verification for Governance and Aave Community [end Dec 20]
- Under what license the have protocol should be released? [end Dec 13]
New and ongoing discussions
- ARC: Adding SEBA Bank as a Whitelister to Aave Arc
- ARC: Aave Deployment to L2 Optimism
- Aave V3 Launch strategy: Code licensing
- Can we introduce some incentives/utility for holding AAVE token?
- Introducing Aave V3
- Aave — Treasury Report
Latest governance topics on governance forum.
API3 DAO
Recent blog posts
- API3 Marketing, Nov-Dec 2021
- Bitcoin Bankathon — That’s a Wrap
- Beacons: Building blocks for Web3 data connectivity
API3 DAO Tracker: API3 DAO currently involves 4,402 members participated in 19 votings.
New and ongoing discussions (Sentiment Check)
Latest governance topics on governance forum.
Badger DAO
Recent blog posts and news
BadgerDAO Restitution Plan: A massive DAO governance undertaking is happening in the BadgerDAO community in the aftermath of the nearly $120 million hack at the beginning of December 2021. Through a series of governance proposals, the community is working out what to do next.
This past week, the community voted on BIP-79 to restore the Badger governance tokens lost in the hack and BIP-81 to “use $10 million in stablecoin assets from the $17 million in BadgerDAO’s treasury to buy wBTC under $57k per token.” Both measures passed.
Now, the community is considering BIP-80 to complete the “restitution plan”. BIP-80 asks the community for feedback on three ideas:
- What % of the proceeds from BIP-81 should go to those who suffered losses in the hack.
- The amount of un-circulating BADGER held in BadgerDAO treasury that should be used in a restitution program
- Whether additional funds be used in restitution in addition to the two sums selected above.
Closed proposals
- BIP 81: Buy The Dip [end Dec 20]
- BIP 79: Restore Governance Tokens [end Dec 20]
- BIP 78. Return Recoverable Tokens [end Dec 17]
- BIP 77. Reactivate Contracts and Recover Funds [end Dec 16]
- BIP 76. Upgrade Smart Contracts [end Dec 13]
New and ongoing discussions
- BIP 82. Emissions: Q1 2022
- BIP 80: Parameter FeedBack — Seed Funds For Restitution Program of Non-Recoverable Assets
- BIP 81: Buy The Dip
- BIP 78: Return Recoverable Tokens
To read more about the different proposals and take part in the decision, check out the governance forum.
Office Hours — Restitution Discussion — 12.21.21:
Balancer
Recent blog posts and news
- mStable and Balancer DAO Announce Treasury Swap
- Tempus Becomes First Balancer Grants Recipient to Launch on Balancer V2
- Balancer Launches Boosted Pools to Increase LP Yields
Closed proposals
- Set up a Structure for Long Term Collaboration with Tempus [end Dec 24]
- Invest FEI, TRIBE, and MTA Tokens [end Dec 21]
- Boosted Pools: Authorize Balancer Labs to emergency pause [end Dec 18]
- Boosted Pools: Authorize Gauntlet and the Ballers Multisig to manage pool parameters [end Dec 18]
- Authorize the Batch Relayer [end Dec 13]
- Activate the Protocol Fee [end Dec 12]
- PrimeDAO <> BAL Treasury Swap [end Dec 11]
New and ongoing discussions
- [DRAFT] Proposal: Balancer subDAOs Formation
- [Proposal] Set up a structure for long-term collaboration with Tempus
- [Proposal] Take a MTA position to redirect rewards to Balancer Pools
- [Proposal] Invest FEI/TRIBE & MTA tokens
Latest governance topics on governance forum.
Bancor
Closed proposals
- Temp Check: Should the Bancor DAO consider a merger with SUSHI to form suSHIBAncor?
- TRAC-BNT fee change schedule and performance analysis
- Whitelist Boba Network (BOBA) with 50,000 BNT Trading Liquidity
- Whitelist Sator (SAO) token with 100K Trading Liquidity
- Increase Trading Liquidity on PSP-BNT Pool to 200K BNT
- Proposal: Activate Abstain Feature
- Proposal: Activate Comment Box and Graph plugins on Snapshot
- Proposal to whitelist DUSK with 50,000 BNT co-investment
- Proposal: Whitelist Frax Share (FXS)
New and ongoing discussions
- Proposal: Increase trading liquidity on CEL-BNT pool to 1M BNT
- Proposal: Increase trading liquidity on wNXM-BNT pool to 2M BNT
- Proposal: Set trading fees to .2% on CEL-BNT pool
- Whitelist BBS Token with External IL Protection
To read more about the different proposals and take part in the decision, check out the forum.
Digitalax X Bancor — December 19 2021:
What Are Liquidity Pools? — Mark Richardson from Bancor:
Compound
Compound’s Competing Audit Proposals: Following last month’s vote on OpenZeppelin’s auditing proposal, which was rejected at the last minute based on interest from competitors, Compound is again considering auditing service providers in the DAO ecosystem’s first competitive B2D (business to DAO) contracting process.
While Compound has contracted with outside organizations before (for example Gauntlet’s risk management program), previous vendors have been unopposed which left governance with a relatively simple yes or no decision. The current batch of votes involve separate organizations with different offerings and cost structures, which creates a significantly more complex choice for voters.
As DAO’s begin to contract more with outside service providers, it could become very difficult for individual voters to make informed decisions. But the alternative option of leaving contracting to a centralized committee or core team risks creating a non-competitive environment with higher costs and possibility of self-dealing.
Competitive bidding also raises important issues about the Compound Governor framework; namely Compound style governance is not well suited for multiple choice proposals. Each compound proposal allows for yes, no, and abstain votes, and includes a single set of executable instructions (eg funds transfers). With no ability for proposals to directly count against each other, there’s a possibility that COMP voters could inadvertently approve multiple competing proposals with overlapping budgets and deliverables.
In this case, it looks like OpenZeppelin’s resubmitted proposal is out to an early lead, having already received 900,000 votes (over twice the minimum 400,000 quorum of votes required to pass a proposal). Relatively close coordination between large Compound voters and investors may have helped avoid disorderly approval of multiple vendors. But this case still points to the need for more sophisticated DAO contract tendering processes.
Compound 75/76/77: In the aftermath of their $50m bug a couple months ago, Compound is considering three governance proposals associated with enlisting the help of different code-auditing service providers.
The process started in November when Larry Sukernik — Compound contributor via his firm Reverie — shepherded a proposal to enlist OpenZeppelin to “implement Security Solutions to prevent and mitigate loss of funds resulting from security risks introduced by community-proposed upgrades to the Compound protocol.”
That proposal — Compound #70 — was voted down in order for the community to consider competing bids from other service providers. After receiving a number of bids, the selection has now been narrowed to three possible firms — OpenZeppelin, Trail of Bits, and ChainSecurity.
This process has been a really cool case study of the future of “B2DAO” business and how firms can compete for contracts with decentralized organizations.
However, another interesting aspect of this process is the potential to modify aspects of Compound governance (on which many DAOs base their own governance) to accommodate for the different type of vote this necessitates; specifically, solving for the need to have three separate proposals. Check out this interesting response for more on that.
Closed proposals
- 77 Continuous Security Engineering for Compound [failed]
- 76 OpenZeppelin Continuous Audit & Security Services Proposa
- 75 Decentralized long-term security for Compound [failed]
- 74 Risk Parameter Updates for WBTC, BAT, and LINK
- 73 Add Market: USDP
New and ongoing discussions
- Auditing Compound Protocol
- Risk Parameter Updates 2021–12–23 and Risk Dashboard Bug Fix
- Migrate GFX Labs and Gauntlet COMP streams over to Sablier
- COMP Distribution Speeds — The End of CompSpeeds?
- Compound Market Risk Monthly (December): Updates and Review
Latest governance topics on governance forum.
Curve
New and ongoing discussions
- Proposal to add UST/FRAX gauge
- CIP#12 — Which tokens should be included in a gold pool?
- [Discussion]Tokenised Gold Pool
- Allowing for fractional votes by Curve DAO
To read more about the different proposals and take part in the decision, check out the forum.
The Future of DeFi Fireside Chat — #1 Michael Egorov:
Gitcoin
Recent blog posts
Closed proposals
- PrimeDAO Mutual Grant Agreement [end Dec 25]
- Redistribute GTC to Individuals Who Could Not Claim Due to Error [end Dec 14]
- PrimeDAO Partnership [end Dec 14]
- DeveloperDAO Partnership [end Dec 14]
New and ongoing discussions
- Gitcoin Mission & Vision
- GitcoinDAO Hackathon 2022
- [Proposal] Ratify the Results of Grants Round 12 and Formally Request the Community Multisig Holders to Payout Matching Allocations
- [Proposal] DAO Operations Workstream Budget — Q1 2022
- [Proposal] Public Goods Are Good: PGF Q1 Budget Request
- Non-transferrable governance token for “structured workstreams” to signal contributor interests
- A brief history of Gitcoin from 2017–2021
To read more about the different proposals and take part in the decision, check out the governance forum.
Gitcoin GR12 Finale Event:
Gnosis
Active proposals
- GIP-18: TickDAO Investment [end Dec 31]
Closed proposals
New and ongoing discussions
- GIP-18: Should GnosisDAO invest at TickDAO?
- Governauts Rewards Systems Research Initiative
- GNO Utility and Value Proposition
- GIP-19: Should Gnosis DAO burn 715k GNO?
Find out the latest GnosisDAO proposals here.
Idle
Recent blog posts
- Make Yield Your Own: Perpetual Yield Tranches are Live!
- Pods Protocol integrates idleTokens as Smart Collateral
- Ricochet Exchange integrates $IDLE for Real-Time Finance
Closed proposals
- [Temperature check] Leagues budget M1–2022 [end Dec 21]
- M4 Treasury League — Contributors Election [end Dec 14]
- M4 C&M League — Contributor Election [end Dec 14]
- M4 Dev League — Smart Contract Developer Election [end Dec 14]
- M4 Leagues — Advisors Election [end Dec 14]
New and ongoing discussions
- Leagues budget M1–2022
- Governor Bravo Upgrade
- Idle Leagues — Learnings and improvements for the next mandate
To read more about the different proposals and take part in the decision, check out the governance forum.
Index Coop
Recent blog posts
Active proposals
- YIP-65: Evolving YFI Tokenomics [end Dec 27]
Closed proposals
- IIP-118: Priority Hiring Guidelines and directional commitment to the DSM & Airdrop
- [AAVE-53] Risk Parameter Updates 2021–12–16
- [Balancer] Set up a Structure for Long Term Collaboration with Tempus
- IIP-60 DG2 — Launch Llama Diversified Index $LDI
- IIP-117: DATA Revised Economic Proposal
- [[BALANCER] Invest FEI, TRIBE, and MTA Tokens
- [BALANCER] Boosted Pools: Authorize Gauntlet and the Ballers Multisig to manage pool parameters
- [BALANCER] Boosted Pools: Authorize Balancer Labs to emergency pause
- [BADGERDAO] BIP-77: Reactivate Contracts and Recover Funds
- [AAVE-undefined] Renew Aave Grants DAO
- [COMPOUND-77] Continuous Security Engineering for Compound
- [COMPOUND-76] OpenZeppelin Continuous Audit & Security Services Proposal
- [COMPOUND-75] Decentralized long-term security for Compound
- IIP-102 DG2 — Launch the Bankless DeFi Innovation Index | $GMI
- [COMPOUND-74] Risk Parameter Updates for WBTC, BAT, and LINK
- [COMPOUND-73]
- [UNISWAP-1.10]
New and ongoing discussions
- IIP-##: DG1 Launch the Total Crypto Market Cap Index (MCAP)
- IIP-XX: Launch iMATIC, iETH, BTC2X, iBTC FLIs on Polygon
- IIP-58: Launching Pulse Aggregate Yield (PAY)
- IIP-XX: INDEX Buyback and Reinvest
- IIP-60: DG2 — Llama Diversified Index $LDI
Find latest Index Coop proposals here.
To read more about the different proposals and take part in the decision, check out the governance forum.
Kleros
Closed proposals
- KIP-46 Extension of Juror Incentive Program [end Dec 23]
Discussions
To read more about the different proposals and take part in the decision, check out the governance forum.
KyberDAO
Recent blog posts
- ZKyber: A New DEX Trading Experience based on ZK-Rollups
- KyberSwap Brings the Best Rates and Capital Efficiency to Cronos Chain
- KyberSwap integrates with leading token trading analytics platform DEXTools
- KyberSwap Partners with Sipher on $50 Million Liquidity Mining Campaign to Provide the Best Liquidity and Rates for the SIPHER token
There were no active proposals these weeks.
Find out all proposals here. Check them out on GitHub.
Lido
Recent blog posts
- stLuna: The Next Generation of Liquid Staking on Terra
- Lido Adopts stETH/USD Chainlink Price Feed to Expand stETH Adoption Across DeFi
Active proposals
- Lido Referral Program on Solana [end Dec 28]
Closed proposals
- Proposal: Address tax and regulatory considerations surrounding liquid staking
- Should the Lido DAO add the 8 shortlisted Ethereum provider organizations as node operators?
New and ongoing discussions
- Referral Program Whitelisting
- Proposal to form reWARDS Committee
- Lido Referral Program on Solana
- Increase the DAO voting duration
- LIP-6: In-protocol coverage proposal
To read more about the different proposals and take part in the decision, check out the governance forum.
MakerDAO
2 Polls — Ended Dec 20
- Community Greenlight Poll — aUST (Anchor TerraUSD)
- Community Greenlight Poll — G-UNIv3-DAIUSDP (Gelato UniswapV3 DAI-USDP LP Token)
3 Polls — Ended Dec 16
- DAI Direct Deposit Module (D3M) Debt Ceiling Targeting
- DAI Direct Deposit Module (D3M) Net Rates Spread
- Recognised Delegate Compensation Trial Performance Modifier
New and ongoing discussions
- MIP40c3-SP54: TechOps Core Unit MKR Budget
- MIP39c2-SP29: Adding TechOps Core Unit (TOCU-00
- MIP39c2-SP27: Adding Strategic Finance Core Unit
- MIPxxXx-SP#1 — Bug Bounty Program for MakerDAO
- [Signal Request] Maker Accessing Pools of Institutional Loans Through Maple Finance
and many more!
Read more about the different proposals and take part in the decision.
Governance Portal, Governance Forum
MakerDAO events calendar here.
mStable
Recent blog posts
Closed proposals
- MCCP 12: Whitelist Balancer DAO Gnosis Safe in Staking V2
- Signer Rotation for December 2021
- TDP 32 — Olympus Pro Bond Adjustments
- TDP 31 — Pre-Approve MTA for Market Making
- TDP 30 — Gitcoin Quadratic Lands Hackey Sack Purchase
New and ongoing discussions
- Codifying the mStable DAO’s values
- Signer Rotation for December 2021
- TDP 33 — Community subDAO Creation and Funding
- MCCP 12: Whitelist Balancer DAO Gnosis Safe in Staking V2
- TDP 29 — DAO<>DAO Swap — Balancer
To read more about the different proposals and take part in the decision, check out the governance forum.
Nexus Mutual
There were no active proposals these weeks.
Vote on governance proposals to decide the future of the protocol here.
To read more about the different proposals and take part in the decision, check out the governance forum.
Mutant Meetup Call | 21 December 2021:
Synthetix
Recent blog topics and news
Active proposals
- SCCP-160: Update LUSD Wrappr Parameters [end Dec 29]
- Pizza [end Dec 31]
Closed proposals
- SCCP-159: Allow for sETH Borrowing against ETH Collateral
- Voting proposal?
- SCCP-158: Update sETH/ETH Wrappr Parameters
- End mandatory voting and compensate those impacted
- SCCP-157: Update sETH/ETH Wrappr Parameters
- SCCP-149: Update Atomic Swap Parameters
- SIP-195:SIP-195: L2 Multi ETH Collateral Loans
- SIP-194: Fix Liquidations on L2
- SIP-193: Refactor SystemSettings into Library to reduce contract size
- SIP-192: Fee Pool Accounting Error Fix and Reimbursement
To read more about the different proposals and take part in the decision, check out the governance forum.
Pie DAO
Closed proposals
- Linear Finance x PieDAO — Synthetic PLAY Index [end Dec 19]
New and ongoing discussions
- KPI Options Redeemable asset
- [PIP-65] Staking rewards compounding to veDOUGH
- Linear Finance x PieDAO — Synthetic PLAY Metaverse NFT Index (ℓPLAY)
To read more about the different proposals and take part in the decision, check out the governance forum.
PoolTogether
Recent blog posts
Closed proposals
- PTIPs 50 & 51: FEI & Avalanche [end Dec 14]
New and ongoing discussions
- RFC: Enable POOL voting on L2s and non-Ethereum L1s
- Different prize distributions per chain
- Improving Discord, the Community Advocate Role & the Content Working Group
- Dec 20 PoolTogether Network Upgrade
To read more about the different proposals and take part in the decision, check out the governance forum.
How Does Pool Together Work? DeFi Savings App with Daily Prizes!
Uniswap
Closed proposals
- Temperature Check — Support izumi Finance as Uniswap V3 official partner of Liquidity Mining Platform
- Consensus check — Should Uniswap incentivize liquidity on Optimism and Arbitrum?
- Consensus Check — Should Uniswap v3 be deployed to Polygon?
- Is uniswap supported to accelerate layer2?
New and ongoing discussions
- Deploy Uniswap V3 to Polygon PoS Chain
- Temperature Check — Deploy Uniswap V3 on AVAX
- Governance Proposal UP010 — Deploy Uniswap V3 to Polygon PoS Chain
- Should Uniswap Provide Voltz with v3 Additional Use Grant
To read more about the different proposals and take part in the decision, check out the governance forum.
- Uniswap Labs team deploys Uniswap v3 to Polygon sidechain following successful governance vote:
Yam Finance
Yam Finance Rallies Against Unannounced Governance Proposal: This incident demonstrates the need for vigilance, particularly for smaller projects with significant assets.
In an unexpected turn of events, Yam Finance recently saw an unannounced proposal submitted to their governance contract. While it may end up representing harmless spam, the proposal effects are unknown and several factors point to a potential governance attack seeking to strip the Yam treasury’s assets.
The offending proposal was input without any text explanation (simply repeating “merry christmas” to the limit of proposal text strings), but it does include an unknown execution payload that could transfer out assets or make unapproved changes to the YAM token. We can also see the proposer’s wallet was also funded through Tornado Cash, which is indicative of potential malicious intent.
Swift reactions by large holders and the Yam team have largely neutralized the threat, with the proposal currently failing by a nearly 3 to 1 ratio. Yam also has a guardian multisig that may be able to cancel the transaction before execution in case it retakes the lead. But the brief spike in YAM price shows the relative ease with which this attack can be staged, and with a liquid treasury worth nearly twice Yam’s market capitalization, the incentive for takeovers or asset stipping are fairly strong.
Existing YAM token holders can set up delegation or vote against this proposal on the Yam Finance site here.
There were no active proposals these weeks.
New and ongoing discussions
- A Roadmap for YAM (Part 1 — Finding a Vision)
- A Roadmap For YAM (Part 4 — Protocol Owned Liquidity)
- Marketing proposal — Yam Finance
Check out the latest YIPs discussions here.
Yearn Finance
Active proposals
- YIP-65: Evolving YFI Tokenomics [end Dec 28]:
Discussions
Check out the latest YIPs discussions here.
MISC
SushiSwap at a Crossroads
SushiSwap has had an eventful couple of weeks as internal strife continues to spill out into the open, sparking calls for major changes at the popular DEX. As such, SushiSwap finds itself at a crossroads. There are three big questions left to be answered:
- What the **** happened?
- Where does Sushi go from here?
- What are the takeaways and lessons from this debacle?
A handful of forum posts have appeared urging an answer to the first question, see this post from SushiSquad and this proposal by Shipyard Software, creators of the Clipper DEX.
With regard to the second question, several prominent stakeholders have offered answers which are being considered by the community:
- Alex Woodard of Arca and Dean Eigenmann of Dialectic put forth this proposal to restructure Sushi DAO, which includes:
- Establishing a legal entity for SushiSwap.
- Creating a community-selected council to replace Sushi’s previous “benevolent dictator” model.
- Formalizing product, operations and development teams and an open source contributor model across Sushi’s product lines.
- Daniele Sesta of the Abracadabra/Popsicle Finance/Wonderland ecosystem introduced a “DAO to DAO” proposal to effectively integrate SushiSwap with “Frog Nation.”
The move to align Sushi and Frog Nation would be a massive win.The synergies between the Frog Nation projects and Sushi are incredibly complementary. Sushi needs to get back to where it started. Which was being the DEX for everyone, the one that people choose to use. With Popsicle Finance being a liquidity manager, with Abracadabra offering the MIM stablecoin, lending and leverage, and with Wonderland striving to be the biggest DAO that exists. Sushi can gain the mandate it needs to thrive and become the biggest DEX on all chains.
- Community member hhk posted “SGP-0: Sushi ORGv2” with the following motivations:
- Create a life cycle process for future proposals in order to clarify and simplify the governance.
- Implementation of SafeSnap to allow on-chain execution of off-chain votes from Snapshot.
- Creation of a delegates board to improve transparency and internal governance.
- Creation of a code of conduct.
The third question above — lessons from this debacle — has been subject to much discussion on Twitter and elsewhere.
The main takeaway is: governance, and especially decentralized governance, is messy. However, this ordeal with Sushi has put into perspective the importance of organizational structure and transparency in the context of a DAO.
As Adam Cochran points out, Sushi is a case study in why DAOs need to build out processes related to transferring power without creating risks of total chaos. Second, as Orca Protocol points out, DAOs need to be deliberate about structuring themselves to handle growth.
Fei and Rari Capital Merge Following Successful Governance Votes
Conversion of RGT to TRIBE is now open, and a “ragequit” mechanism to allow tribe to be converted to FEI stablecoin at a fixed price is live through.
With successful governance votes from both the Fei and Rari communities, the FeiRari merger is finally taking effect. For token holders in the newly combined organization, there are some key actions and decisions to address in the coming days.
Holders can visit jointhetribe.xyz to begin the conversion process for RGT to TRIBE, but there’s no rush as currently the conversion process does not have a planned expiration date. However, Fei protocol is also offering TRIBE holders a “ragequit” option to redeem their tribe for $1.07 in FEI stablecoins, valid only for the next few days through December 26.
While the TRIBE price was below the redemption price up until the merger took effect, Fei’s team multisig quickly closed the gap by redeeming 10 million TRIBE tokens and immediately repurchasing 10.5 million TRIBE with the received FEI. This prompt action helped save the protocol from paying out roughly ~$500,000 in arbitrage profits unnecessarily.
According to Alex Kroger’s handy dune dashboard, slightly more than 6% of the fully diluted tribe supply has been redeemed through the ragequit function (roughly 12% of circulating supply). Providing easily accessible exit liquidity could help ease potential for internal tensions among those unhappy with the merger. For projects with significant liquid assets or equity, this ragequit mechanism has a lot of promise for making mergers and acquisitions more palatable to target communities.
Rari<>Fei Merger Passes: The much-discussed merger Rari Capital and Fei Protocol is proceeding! Twin proposals in the two communities passed with flying colors — 93% to 1% among RGT holders and 90% to 0% among TRIBE holders. Fei Vote, Rari Vote
CityDAO
Back in July, Scott Fitsimones tweeted on starting a DAO to buy and tokenize land in Wyoming and now there is a DAO with $7 million in its treasury and 40 acres of land in Wyoming. If you aren’t familiar with the CityDAO story: Read This Recap
This week, CityDAO is taking another step forward with the proposed CityDAO Council. As one might expect, owning and tokenizing ownership of land is fraught with legal challenges and now that CityDAO has begun to seriously scale, the community is looking to formalize things to ensure their experiment can continue to thrive.
The CityDAO Council would be elected by Citizen NFT holders and take over responsibility from the existing “core team,” starting with a focus on ratifying the CityDAO Charter and implementing the DAO LLC Operating Agreement. Read this for more detail: The Foundation of CityDAO
And, next month, the first plots of CityDAO land go up for sale
- Terra Ecosystem’s Mirror protocol faces possibly malicious self-dealing proposal:
- Debt DAO seeks partnership with OlympusDAO to help launch their DAO financing protocol:
- Ethereum Foundation announces huge funding allocations to client teams:
- Myanmar’s democratic government in exile recognizes USDT as official currency:
- Crypto asset manager Bitwise launches NFT index fund:
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That’s all for today! Your feedback is highly appreciated!👥
