DAOs: Surprise Compound governance proposal, Maker’s regulatory research, Wormhole bridge hack, Yearn’s proposal to upgrade compensation system, Akropolis AIP-014, Balancer <> Gnosis treasury swap, mStable MIP 25 approved, Aave V3 is live on 7 testnets, and more!
Biweekly report on decentralized autonomous organizations vol.18, 22d January — 5th February
TL;DR
- DeepDAO.io: The number of people who have either voted or proposed in a DAO is now over half a million
- Maker’s KYC/AML regulatory research causes concern about decentralization
- Justin Sun launches surprise Compound governance proposal. While GFX Labs proposes contributor contract to the community. Proposal 084 is live, 083 succeed, 082 executed
- Fei added to Compound lending market after successful proposal. The DAO releases details on Turbo, a new product to expand Fei issuance and liquidity
- Ceramic profiles launched on DAOhaus
- Balancer DAO mulls transition to ve token mechanism based on Curve governance. BalancerDAO <> GnosisDAO treasury swap. The community discussing partnership with Polygon. BanklessDAO<>BalancerDAO
- Aave V3 is live on 7 testnets. The first cross-chain governance proposal has successfully updated the Aave Polygon Market. The community votes on Aave V3 launch on Evmos & Avalanche
- Akropolis AIP-014 is live for voting. AIP-012 and AIP-013 has officially ended and both have passed the quorum
- Solana’s Wormhole bridge receives bailout after hack
- GnosisDAO’s GIP-13, 22 & 23 passed. GIPs 24–28 are under discussion. A proposal to Launch Aave V3 on Gnosis Chain is live on the Aave forum
- BadgerDAO’s BIP 85: Add bveCVX and bveCVX LP as native in boost is live. New podcast on security upgrades is available
- Aragon’s 2022 DAO research update: What do DAO builders need?
- Nexus Mutual’s signalling vote for Operation TM-21 is live on Snapshot. The vote will be used to determine if resources should be allocated to the smart contract work required to implement a formal on-chain governance vote
- CLNY is now on Sushiswap on Gnosis Chain. The token launch auction 2022 finished
- API3 Workathon 1.0 has started: a five-week community initiative encourages community members to team up and participate in a series of challenges
- The end of Idle’s Tranches battle is coming. Lido and Idle present the stETH Perpetual Yield Tranches (PYTs). Idle + Bancor
- A vote for Lido to launch liquid staking on Avalanche is live. A proposal to gauge community sentiment on the need for market makers and CEX listings for LDO has shared
- Kyber Network bucks the market-wide downtrend with a 57% gain in January
- mStable MIP 25 approved. The proposal will upgrade the smart contracts to allow single-transaction deposits and withdraws from any stablecoin on mStable directly into and from imUSD and the imUSD vault
- The Yearn community discussing the proposal to opgrade Yearn’s compensation system
- Synthetix released the Alsephina release
- Yam’s YIP-101 & 102 are live for voting
- Uniswap and NFTs proposal discussion
- Gitcoin grants round 13 scheduled for March 9–24, 2022. Codeless Conduct virtual hackathon announced
- The Tally DAO challenges report is now available
- Gamestop and Immutable under fire after grant funds immediately dumped
- Inverse Finance ratifies Inverse+ proposal to pursue stablecoin growth ambitions
- Wonderland treasury manager exposed as former fraudster
- Osmosis and Sifchain exchange projects face conflict over bridge strategy
- Binance lending project Qubit taunted by hacker after 80 million exploit
- Trading firm mgnr takes fire for extractive farming practices on Maple Finance
- Assange DAO is the latest project to raise using Juicebox DAO crowdfunding mechanism
- Syndicate launches tool for spinning up DAOs with legal docs
- FriesDAO wants to start a crypto-crowdfunded fast-food franchise
- Active proposals: Aave, Akropolis, Badger DAO, Compound, Curve, Idle, Index Coop, LidoDAO, Nexus Mutual, MakerDAO, Synthetix, Yam Finance
- New & ongoing discussions: Balancer, GitcoinDAO, Synthetix, PieDAO, Uniswap, mStable, Yearn Finance, BancorDAO, GnosisDAO, PoolTogether, API3, KyberDAO, Kleros
- Humanode DAO ‘Vortex’ launch discussed
- New MolochDAO grantee interview series
- PoolTogether’s DAO happiness survey
- 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 DAOs
Like two weeks ago, the rating is headed by BitDAO and Uniswap.
Global stats
Leading DAOs
Read
- DAOs Aren’t A Fad — They’re A Platform by Jeff Kauflin & Isabel Contreras in Forbes
- The Promise of DAOs, the Latest Craze in Crypto by Kyle Chayka in New Yorker
- Collaborative Economics: A Non-Violent Revolution Against Technocracy by Tamara Helenius on the Commons Stack blog
- 2022 DAO Research Update: What do DAO Builders Need? on the Aragon blog
- MolochDAO Interview with Matt Garnett of EIP-3074 on the MolochDAOblog
- The 5 things DAOs need resolved to challenge traditional corporations by Andrew Nardez on Coinmonks
- Crypto in 2022 Is No Longer Just Buy and Hold Coins by Ann on Yard Couch
- Web3 developer growth hits an all-time high as ecosystem matures by Rachel Wolfson on Cointelegraph
- How to take a DeFi governance bribe by William M. Peaster on Bankless
- ‘We’re Freaking DAOing It’: The People Who Think DAOs Are the Future of Work by Jeff Wilser on Coindesk
- The Tally DAO Challenges report
Frameworks
Aragon
2022 DAO Research Update: What do DAO Builders Need? Three key insights from the latest research.
1. Complexity → Simplicity
2. Monolithic → Modular
3. Static → Adaptable
The Commons Stack
Recent blog posts
- Collaborative Economics: A Non-Violent Revolution Against Technocracy: The first in a series of articles introducing the collaborative economics design and describing how the Token Engineering community, in alliance with Commons Stack, used these designs to launch the commons economy.
Commons Stack Review: Sprint 31:
TS Project Showcase #1: Droplist by Chris:
Tribute Labs (OpenLaw)
Governance
Aave
Active proposals
- ARC: Add FOX Token (ShapeShift) as collateral
- ARC — Consolidate Aave V1, V2 & AMM Reserve Factors, Purchase CVX and Deploy to Earn Yield
- ARC — Add DPI as Collateral on the AAVE ARC market
- ARC — Continue Liquidity Mining Program on Aave V2 Ethereum market and Introduce Liquidity Mining on Aave ARC market
- ARC: Avalanche Market — AVAX Risk Parameters Update
- Deploy or Upgrade Aave V3 on Avalanche
- Deploy Aave V3 on Evmos
Closed proposals
- ARC — Enable Borrowing of DPI on Aave Markets [end Feb 4]
- Should UMA token be added as collateral on Aave? [end Feb 3]
- Launch Aave V3 on Metis Andromeda [end Feb 3]
- Approve bounty of xSUSHI’s incident [end Jan 25]
- Adding SEBA Bank as a Whitelister to Aave ARC [end Jan 26]
- Deploy Aave V3 on Fantom [end Jan 24]
- Launch Aave on Boba Network [end Jan 23]
On-chain votes
- Revert ENJ Parameter Changes and Enable FEI as Collateral on Aave V2 [Executed]
- Add Assets to Aave Polygon Market and Update WMATIC Risk Parameters [Executed]
New and ongoing discussions
- Launch Aave V3 on Metis
- Launch Aave V3 on Gnosis Chain
- Launch Aave V3 on Avalanche
- Add FRAX as Collateral to Aave V2
- ARC: Add Support for LUSD
- ARC — Consolidate Aave V1, V2 & AMM Reserve Factors, Purchase CVX and Deploy to Earn Yield
- Add MIM to Aave V2
Latest governance topics on governance forum.
Akropolis
Active proposals
Closed proposals
Discussions
- AIP-012: Inflation | Safeguarding the Future (Tokenomics)
- AIP-013: Vortex Launch
- AIP-014: Addition of Multisig signers and Multisig’s Capacity in Crisis Management
Latest governance topics on governance forum.
API3 DAO
Recent blog posts
- API3 Operations Update: January 2022
- The Web3 Shift to First-Party Oracles
- API3 Enterprise Development Report, November-December 2021, January 2022
API3 DAO Tracker: API3 DAO currently involves 4,699 members participated in 24 votings.
- [Secondary Proposal 20] Core Technical Team, February–April 2022
- [Secondary Proposal 18] API3 Marketing Cycle 6 Proposal
- [Secondary Proposal 19] API3 Unified BD Cycle 6
Latest governance topics on governance forum.
Badger DAO
Active proposals
Closed proposals
- BIP 84. DIGG Boost Restoration [end Jan 20]
New and ongoing discussions
To read more about the different proposals and take part in the decision, check out the governance forum.
Badger Security Upgrades:
How to DeFi Safely (Part 2):
Balancer
Recent blog posts and news
- Beethoven X Joins Balancer Labs’ Bug Bounty Program
- Ball with Balancer at ETHDenver 2022
- 2022: What’s in Store at Balancer
Closed proposals
New and ongoing discussions
- BalancerDAO Partnership with Polygon DAO
- Proposal: Onboard Fire Eyes DAO as Strategic Partner
- Introducing veBAL tokenomics
- [Proposal] Transition Treasury Control to Governance Multisig
- Fund Balancer DAO for Q1 2022
Latest governance topics on governance forum.
Bancor
Closed proposals
- Increase ICHI trading liquidity to 1M BNT from 750k BNT
- Whitelist Poolz Finance (POOLZ) with 50,000 BNT trading liquidity
- Create pool for the new Reserve Rights (RSR) token contract with 750,000 BNT trading liquidity limit
- Increase the trading liquidity limit in the CHZ pool from 20k BNT to 50k BNT
- Whitelist Digital Fitness (DEFIT) with 50,000 BNT trading liquidity limit
- Temp Check: Which platform should Bancor use for its weekly community call?
- Whitelist Streamr Network (DATA) with 50,000 BNT trading liquidity limit
- Increase the trading liquidity limit in the WOO pool from 750k BNT to 1M BNT
- Increase the trading liquidity limit in the TRAC pool to 1M BNT
- Proposal Addendum: Incentivize users to migrate to V3 by matching token side LM rewards with up to 50,000 BNT per pool
- Change stablepool fees USDT/USDC/DAI to 1.0%, 1.0% and 1.5%, respectively
- Whitelist PHTR token with 100k BNT trading liquidity
New and ongoing discussions
- Proposal to Whitelist Tempus Finance (TEMP) with 100,000 BNT trading liquidity limit
- Proposal to gradually increase the trading liquidity limit in the wNXM pool from 2M BNT to 10M BNT in 1M BNT increments
- Proposal: Increase the trading liquidity limit in the REQ pool from 1m BNT to 1.75m BNT
- Proposal to increase the trading liquidity limit in the SHEESHA pool from 50,000 BNT to 250,000 BNT
- Proposal: Change the fee in the MTA pool from 0.3% to 1%
- Proposal: Onboard rETH with 250K trading liquidity
To read more about the different proposals and take part in the decision, check out the forum.
Compound
Justin Sun Returns Catches Voters Off Guard with Compound Proposal: Like in earlier encounters, Sun is using borrowed governance tokens to try to increase adoption of the TUSD stablecoin.
Earlier this week, defi and governance consultancy GFX Labs raised the alarm about a suspicious COMP borrowing transaction. It emerged that Justin Sun, best known for launching the Tron blockchain, had borrowed 90k COMP tokens and had reached the required threshold to submit governance proposals.
This mirrors a previous proposal, Compound proposal 45, where Sun similarly borrowed COMP tokens in order to meet the required proposal threshold and support the vote for TUSD integration. While that proposal was broadly supported by voters due to low risk, as TUSD was onboarded without accepting as collateral, the current vote may be more closely contested.
The proposed 80% maximum loan to value ratio for TUSD would mirror the more widely used USDC, and the proposal also seeks to add COMP incentives to the TUSD lending pool. Sun stands to benefit from this both directly (he is often the largest TUSD liquidity provider across protocols), and indirectly (he is also reportedly involved in the new ownership consortium that purchased TUSD issuer Trusttoken in 2020). TUSD has been integrated across Aave and Maker for over a year without losses, but this would still impact Compound by exposing the protocol to credit risk from an additional stablecoin issuer.
The most controversial aspects of the proposal relate to the way it was initiated. While Compound explicitly permits users to borrow COMP tokens, community sentiment seems strongly opposed to use of borrowed tokens for voting purposes. And the community has also come to expect greater transparency from proposals, typically including a public forum post and discussion period before moving forward with a vote.
With the proposal largely sidestepping these standards and catching voters by surprise, we may see a wave of opposition on principle even if the target parameter changes are acceptable on their own merit. Sun’s recent public response indicates that the importance of these soft governance standards are becoming better understood.
Active proposals
- 084 TrueUSD Market Upgradespending [end Feb 9]
Closed proposals
- 083 Add Market: FEI [end Feb 3]
- 082 Dynamic Risk Parameters — Quarterly Updateactive [end Jan 22]
New and ongoing discussions
- Bug Bounty Program for Compound Proposals
- Multi-chain strategy
- GFX Labs’ Proposal To Become Contributors
- FRAX Listing Proposal
- Gauntlet Compound Risk Dashboard Update
- Add Market: FEI
Latest governance topics on governance forum.
Curve
Active snapshot proposals
Closed snapshot proposals
- Can CRV do currency and foreign exchange transactions? Is it possible to introduce derivatives like foreign exchange into the bl
- CRV continuera-t-il à frapper ATH en 2022 ?
- Will CRV continue to hit ATH in 2022?
- CRV会在2022年继续创新高吗？
New and ongoing discussions
- [Discussion] Acquire a CVX position
- Proposal to add a DYDXETH Gauge
- Launch RocketPool rETH pool to promote decentralization.
- Proposal to raise A parameter on USDN pool to 500
- Curve Fantom NFT — Solidly / Solidex
To read more about the different proposals and take part in the decision, check out the forum. Vote here.
The Curve Wars | CurveMarketCap:
Gitcoin
Closed proposals
- Gitcoin DAO — Workstream Accountability Flow [end Jan 25]
New and ongoing discussions
- How does the DAO prioritize side rounds?
- Introducing the Steward Council
- Moonshot Collective Workstream Budget Request Q2 2022
- [Proposal] DAO Operations Workstream Budget — Q1 2022
- [Proposal] MMM Season 13 Budget Request
- [Proposal] FDD Workstream Season 13 Budget Request
To read more about the different proposals and take part in the decision, check out the governance forum.
Builderband Meeting #9 [2022/1/26]:
Gnosis
Closed proposals
- GIP-13: Should Gnosis DAO proceed and deploy CowDAO and vCOW token?
- GIP-23: 2nd amendment to GIP-17. Add authority of Instadapp SCW to daughter Safe
- GIP-22: Partnership Agreement Between BalancerDAO & GnosisDAO [end Jan 28]
New and ongoing discussions
- GIP-27: Gnosis Guild
- Treasury Allocation to Gnosis Ltd
- GIP-26: Partner with 1inch to increase GNO:1INCH liquidity
- GIP-28: Allow GNO holders to vote even if their GNO are invested/staked/locked in Smart Contracts in different protocols/networks
- GIP-25: Partner with Tornado Cash to increase GNO:TORN liquidity in Uniswap V3
- GIP-24: Initiate the GNO Incentives Program for Gnosis Chain as proposed in GIP-16
Find out the latest GnosisDAO proposals here.
Idle
Recent blog posts
Active proposals
Closed proposals
- [Temperature Check] — $IDLE Gauges for Tranches
- Tranches Battle — Playoff #3
- Tranches Battle — Playoff #2
- Tranches Battle — Playoff #1
- IIP-18: Upgrade Idle Governor Alpha to Compound Governor Bravo
New and ongoing discussions
- Tranches Battle: choose which asset integrate next
- Idle DAO Legal Structure — FAQs
- Introducing $IDLE Gauges model for Tranches
To read more about the different proposals and take part in the decision, check out the governance forum.
Index Coop
Recent blog posts
- Know Your Bankless DeFi Innovation Index (GMI) Token: Ribbon Finance (RBN)
- Know Your Bankless DeFi Innovation Index (GMI) Token: Maple Finance (MPL)
Active proposals
Closed proposals
- IIP-129: Metagov Delegation Request — Delegate Aave to EOA for DPI Borrow Enable and DPI on ARC AIPs
- [COMPOUND-83]
- Fund Balancer DAO for Q1 2022
- [AAVE-57] Revert ENJ Parameter Changes and Enable FEI as Collateral on Aave V2
- BalancerDAO <> GnosisDAO Treasury Swap
- IIP-128: Priority Hiring Round #1
- IIP-119 DG2: Launch iMATIC, iETH, BTC2X, iBTC FLIs on Polygon
- IIP-127 DG1: Launch the Layer 2 Index (LAYER2)
- IIP-126 DG1: Launch Total Crypto Market Cap Index (MCAP)
- IIP-125: Liquidity Pod — Funding Request H1 2022
- [AAVE-55] Enable FEI as Collateral on Aave V2
New and ongoing discussions
- IIP-129: Metagov Delegation Request — Delegate Aave to EOA for DPI Borrow Enable and DPI on ARC AIPs
- Index Council — 28 Feb term end (poll)
- IIP-116: Redirect DPI, MVI, DATA and BED Revenue to Operations Account
- IIP-64: Methodologist Smart Contract Permissioning
- IIP-## Launch the Play-to-Earn Index (P2E)
Find latest Index Coop proposals here.
To read more about the different proposals and take part in the decision, check out the governance forum.
On-Chain Crypto Indices with Index Coop | Animal Spirits:
Kleros
There were no active KIPs these weeks.
Discussions
- KIP-47 Reduce jurorsForCourtJump for Gnosis Chain Curation Court
- Implementation of `test cases` to check expertise before enrolling in a court
To read more about the different proposals and take part in the decision, check out the governance forum.
Kleros Online Conference — The Kleros Fellowship of Justice:
Lido
Recent blog posts
Active proposals
- Lido for Avalanche — Joint Proposal by Hyperelliptic Labs and RockX
- Allocate Lido treasury assets worth up to 600 ETH to develop Univ3 wstETH<>WETH pair
Closed proposals
- Allocation of funds for LEGO sponsorship of Bankless Podcast/Newsletter
- Proposal: Commission research through the Messari Hub
- Proposal: Sponsorship of Bankless Podcast/Newsletter
New and ongoing discussions
- Referral Program Whitelisting [Ethereum]
- RFC: Allocate treasury assets to Univ3 wstETH<>WETH pair to foster Compound listing
- LEGO: Expand LEGO Committee by adding Mike from Mixbytes()
- LIP-12: On-chain part of the rewards distribution after the Merge
To read more about the different proposals and take part in the decision, check out the governance forum.
MakerDAO
Maker’s Regulatory Research Causes Concern about Decentralization: While Maker remains committed to maintaining permissionless access to DAI, it has growing regulatory exposure as it ventures into real world assets and institutional lending agreements.
While DAI was initially backed solely by ETH, inability to meet stablecoin demand with only this asset has led Maker to support an increasing list of collateral assets and borrowing arrangements. In addition to other large crypto assets such as LINK and bridged crypto tokens like WBTC, Maker’s collateral portfolio has grown to include a large share of fiat backed stablecoins such as USDC.
DAI’s stablecoin backing is problematic from a few perspectives. It lowers public perception of DAI’s censorship resistance (there’s a risk of stablecoin issuers being forced to freeze Maker funds), involves potentially considerable credit risk from the issuers, and doesn’t contribute any revenue to offset the risk. So while it has offered an important outlet to balance supply and demand for DAI, reducing excessive stablecoin backing is a key priority within Maker governance.
With standard crypto vaults seemingly unable to make up the difference despite continuing borrowing rate reductions, Maker has turned to real world assets (RWA) and institutional vaults as key sources of future supply growth. RWA includes lending against real estate and invoice financial collateral, while institutional vaults allow known counterparties like trading firms to access large credit lines with reduced fees.
Each of these mechanisms offers the benefit of sustainable revenue and credit risk diversification, but they also introduce new legal and regulatory questions. For example, certain RWA or institutional vault onboarding processes might create a “customer relationship” that falls within the scope of financial regulations.
This brings us to the current controversy over KYC regulations at MakerDAO. Maker recently funded a $4,500 grant to explore potential regulatory risks and specifically KYC/AML recommendations issued by the Financial Action Task Force, an intergovernmental regulatory organization. While this initially attracted minimal attention, it raised more concern after being surfaced on Twitter by Yearn contributor Banteg. Along with several joking takes on the issue (like the tweet below), many had real concerns about the imposition of KYC regulations into defi.
One the one hand, regulatory research can be a valuable way for protocols to reduce risk and maintain their core values (such as permissionless access and decentralization). But research could also indicate a tacit acceptance of regulation, when many within the crypto space are vehemently opposed to KYC and financial surveillance as a matter of principle.
Active Polls (2 Polls — Ending Feb 07)
- Community Greenlight Poll — STABLE-NOTE (2 to 10 Year Duration US Treasury Securities)
- Community Greenlight Poll — STABLE-TBILL (US Treasury Securities Up To 12 Months Duration)
Ended Polls (16 Polls — Ended Jan 24)
- Community Greenlight Poll — OGN (Origin Protocol)
- Community Greenlight Poll — OUSD (Origin Dollar)
- Community Greenlight Poll — RBLD (Robinland Holdings)
- Community Greenlight Poll — TUSD-PSM (TrueUSD)
- Community Greenlight Poll — USDap (BondAppetit)
- Ratification Poll for Modify Core Unit Budget, ORA-001 (Oracle Gas Costs) (MIP40c3-SP45)
- Ratification Poll for Onboarding Tech-Ops Core Unit (TECH-001)
- Ratification Poll for the Strategic Finance Core Unit (SF-001)
- Ratification Poll for Collateral Offboarding Process (MIP62)
- Ratification Poll for Core Unit Budget, SNE-001 (MIP40c3-SP47)
- Ratification Poll for Bug Bounty Program for MakerDAO Critical Infrastructure (MIP64)
- Ratification Poll for Maker Keeper Network (MIP63)
- Ratification Poll for Offboarding Content Production Core Unit (MKT-001)
- Ratification Poll for Facilitator Onboarding for RWF-001 (MIP41c4-SP27)
- Ratification Poll for Development & UX Core Unit Budget — DUX-001 (MIP40c3-SP52)
- Ratification Poll for Modify Core Unit Budget — Sustainable Ecosystem Scaling (SES-001) (MIP40c3-SP55)
Executive
New and ongoing discussions
- MIP4c2-SP15: Core Unit Offboarding Process Amendments
- MIP40c3-SPX: Modify Core Unit Budget
- MIP60: Intangible Asset Assignment
- [Signal Request] gbMKR, a proposal to benefit long-term MKR holders
- [Signal Request] bring back the MKR burn
- [Signal Request] Offloading TUSD-A
and many more!
Read more about the different proposals and take part in the decision.
Governance Portal, Governance Forum
mStable
Closed proposals
- MIP 25: Save Unwrapper
- MCCP 14: Whitelist Abachi Multisig in Staking V2
- TDP 33: Community subDAO Creation and Funding
- MCCP 13: Increase cache for BUSD and GUSD Feeder Pools
New and ongoing discussions
- MIP 25: Save Unwrapper
- [RFC] Overhauling the Governance Fee Flow
- [RFC] Stop COMP & stkAAVE Liquidations
- [RFC] Add FEI to the mUSD basket composition
- MCCP 16: Fee restructuring for swaps and redemptions
- [RFC] Utilize Solv Finance for Community & Long-term MTA Bonds
- [RFC] Consolidate fees for swaps and redemptions
- MCCP 15: Whitelist Multisigs in Staking V2
To read more about the different proposals and take part in the decision, check out the governance forum.
AMA with Nexus Mutual — mStable:
Nexus Mutual
Active proposals
Discussions
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.
Pie DAO
Active proposals
Closed proposals
New and ongoing discussions
- [Proposal] Update for DeFi+L Yield Strategies
- [Epoch-4] MerkleTree Notarization
- Governance Voting Framework
- [PIP-60] DOUGH Staking & Governance Mining
To read more about the different proposals and take part in the decision, check out the governance forum.
PoolTogether
Recent blog posts
- Marketing, PoolTogether and the FIFA World Cup:PoolTogether Community Interview #16: Loitering_Sean
- From PoolTogether to Creating My Own Game: PoolTogether Community Interview #15: TangFeng
There were no active proposals these weeks.
New and ongoing discussions
To read more about the different proposals and take part in the decision, check out the governance forum.
Synthetix
Recent blog topics and news
Active proposals
- SIP-209: Update ExchangeRates for backwards compatibility
- SCCP-163: Update Optimism Chainlink Oracles to OCR
- SCCP-164: Extend burn lock to seven days
- SIP-202: Target Staking Ratio
Closed proposals
- SIP-201: Allowing governance on L1 in case OVM becomes inaccessible
- SIP-185: Debt Shares
- SIP-185: Debt Shares
- SIP-165: Debt Pool Synthesis
To read more about the different proposals and take part in the decision, check out the governance forum.
Uniswap
Closed proposals
New and ongoing discussions
- Uniswap and NFTs
- Temperature Check — Should Uniswap incentivize Liquidity on Optimism and Arbitrum?
- Introduce stablecoin liquidity pools with 0.01% fees to UniSwap v3 on Polyggon POS
- How to speed up V3 deployment on AVAX?
To read more about the different proposals and take part in the decision, check out the governance forum.
Yam Finance
Active proposals
New and ongoing discussions
- YIP-102: Multisig Replenishment
- YIP-101 Pause Rari Fuse Pool Implementation
- YIP-99 Delegate the UMA in our treasury to a contributor
Check out the latest YIPs discussions here.
Yearn Finance
Recent blog posts
There were no active proposals these weeks.
Discussions
Check out the latest YIPs discussions here.
MISC
Wormhole Bridge Receives Bailout for $320 Million Hack Loss
Trading firm Jump Crypto backstopped the roughly 120k ETH stolen in the heist, avoiding losses for users and Solana defi platforms.
The Solana ecosystem saw its largest ever hack this past week, with roughly $320 million stolen from the prominent Wormhole bridge. A faulty contract with missing validation checks allowed a user to mint 120k worth of unbacked whETH (Wormhole bridged ETH on Solana). The majority of this was then immediately bridged back to the Ethereum side, depleting roughly 90k ETH from Wormhole’s escrow, while remaining ETH was market sold into decentralized exchanges on the Solana side.
This could have caused a cascade of insolvencies and breakdowns across key Solana defi projects that integrated with Wormhole ETH, most notably lending protocols such as Solend. But luckily for these protocols and users, trading firm Jump Crypto agreed to backstop the lost funds and ensure full backing and redeemability.
While this incident showed the relative fragility of the Solana ecosystem, with far less experience to draw on for safe contract development, it also shows how well funded project backers can significantly reduce risk for end users. Jump may have lost a percent or more of their capital, but the rest of the ecosystem was able to continue with minimal disruption.
Wonderland Treasury Manager Exposed as Former Fraudster
The exposure of Wonderland’s treasury manager Sifu’s history caused a run on the related MIM stablecoin that had secondary impacts across the ecosystem.
This past week proved the crypto space is stranger than fiction, with top defi projects embroiled in a scandal over anonymous contributor Sifu that is spiraling into a possible bank run. The controversy has centered on the Wonderland project where Sifu was a treasury manager, but has also impacted other projects run by founder Daniele Sestagalli and certain related protocols.
The panic started on Wednesday, when it was revealed that Sifu was convicted fraudster Michael Patryn, who is well known within the crypto space for their connection to the Quadriga exchange exit scam. Wonderland and MIM founder Daniele initially supported Patryn before backing away later under pressure. This news broke just days after both Patryn and Daniele allowed personal borrowing positions against their project tokens to be liquidated, raising suspicions they were intentionally cashing out before negative market reactions.
While Patryn only has direct multisig membership within the Wonderland treasury, with a governance vote in process to remove him, he is also involved in Daniele’s other projects which helped kick off a panic among MIM stablecoin holders. Sales and withdrawals left the primary Curve liquidity pool heavily unbalanced, with large holders unable to exit without significant losses.
Certain other stablecoin swap projects also faced disruption, with the Avalanche based Platypus hastily delisting MIM to protect deposits.
While MIM is a fully collateralized, debt backed stablecoin similar to Maker’s DAI, it faces certain weaknesses that may make it tough to return to peg. Unlike with Maker’s vaults, Abracadabra’s borrowing facilities are set up with immutable parameters, meaning it’s impossible to raise borrowing rates to incentivize repayment. This leaves Abracadabra without any direct levers to help reduce supply, other than curtailing new MIM issuance.
The stresses on MIM have laid bare some of the compounding risks within the highly integrated defi ecosystem. While it has no direct involvement with Patryn, the Terra ecosystem faced difficulties, with significant collateral usage (over $1 billion of UST collateral at peak) and shared liquidity pools (hundreds of millions in MIM-UST pool on Curve) partially transmitting the depeg event from MIM to UST. While UST has regained its peg, the extra market stress may have contributed to current downtime on Terra’s ETHAnchor lending integration.
With Wonderland trading below the fair value of treasury assets, there is also a possibility that a dissolution proposal would release additional reserves of MIM onto the market, putting further pressure on the peg.
The concerns about anonymous project contributors apply to many other projects, and could lead to a wholesale reassessment of the needs for decentralized governance and treasury management. Assuming dissolution is ruled out, any successor Wonderland team would face an uphill battle to regain trust and guarantee safety of funds. And other similarly situated projects including OlympusDAO (with a primarily anonymous set of multisig signers) may also face pressure to improve security with direct control by token holders.
Crucially, higher security doesn’t need to come at the expense of agility; projects like Fei demonstrate how funds can be split between full DAO control (Fei uses a Compound/OZ style governor contract and timelock) and less restrictive operation accounts (such as Fei’s community multisig responsible for rewards and ops spending). This allows for safely storing the majority of funds, and reducing the amount of trust token holders must place in core contributors.
- Assange DAO is the latest project to raise using Juicebox DAO crowdfunding mechanism:
- Gamestop and Immutable under fire after grant funds immediately dumped:
- Inverse Finance ratifies Inverse+ proposal to pursue stablecoin growth ambitions:
- Osmosis and Sifchain exchange projects face conflict over bridge strategy:
- Fei Protocol releases details on Turbo, a new product to expand Fei issuance and liquidity while offering returns to:
- Binance lending project Qubit taunted by hacker after $80 million exploit:
- Trading firm mgnr takes fire for extractive farming practices on Maple Finance:
- Humanode DAO ‘Vortex’ launch discussed:
- Syndicate launches tool for spinning up DAOs with legal docs:
- FriesDAO wants to start a crypto-crowdfunded fast-food franchise:
- The Tally DAO Challenges report is now available:
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