This week Maker sets a target budget, Aave updates risk parameters, Lido looks to engage a head of legal, and more!
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Ratification Poll for Amend Measurement Period For Delegate Participation Metrics

Created: September 12th, 2022

Passed: Not yet but looking likely,

59K MKR for

What does it do: This poll changes the tracking timeframe for recognised Delegate participation from a lifetime basis to a rolling 120-day window. 

Why: As outlined in the proposal, the scoring of participation metrics for recognised delegation is on a lifetime basis. This can disincentivise participation depending on the historic delegate participation rate. The 120-day rolling window for tracked participation can encourage increased participation amongst delegates.

Takeaway: Maker recognised delegation started in 2021, and the community is proactively working to improve the delegation process.

Ratification Poll:  Modify GovAlpha Core Unit MKR Budget

Created: September 12th, 2022

Passed: Not yet,

25K MKR for 100% multiplier,
34K MKR for 150% multiplier,
0K MKR for 200% multiplier

What does it do: Proposes a Governance facilitator vested bonus based on the current pay structure. This is a ranked-choice poll and has the following five options.

  1. 100% multiplier
  2. 150% multiplier
  3. 200% multiplier
  4. Abstain
  5. Reject

Why: Governance Facilitators are critical to the success of the Maker. As mentioned in the forum, the community is seeking to reward this core unit with a bonus that vests yearly. 

Takeaway: Maker continues to recognise the hard work of Governance Facilitators.

Ratification Poll: MakerDAO Delegates MIP Set

Created: September 12th, 2022

Passed: Not looking likely,

22K MKR Against,
16K MKR For,
14K MKR Abstain

The following MIP set changes the compensation model for Maker Delegates. With a total possible increase of 400% compensation if all recognized delegate metrics are maxxed out.

  1. MIP77
    • Outlines the fundamental role of delegates inside the Maker Protocol. In addition, it clarifies the essential differences between a Shadow Delegate and a Recognized Delegate.
  2. MIP78
    • Outlines the method through which the Maker Protocol compensates Recognized Delegates with DAI. Governance Facilitators shall compute and deliver quarterly payments to Recognized Delegates beginning on the date of MIP approval. These payments will be covered by designated Executive Votes.
  3. MIP79
    • Explains the calculation and execution of MKR vesting streams for Recognized Delegates.

Why: The MIP set aims to better align delegation incentives with Maker. The proposed increase of incentives include streams of MKR that are vested over a period of time. This can align the participation of delegates with the success of the protocol. Also, this can encourage larger groups of delegates with specialized knowledge to participate in governance.

Takeaway: Maker continues to define and work toward improving Governance delegation.

Executive Proposal: Core Unit Budget Streams, SPF Funding, HVBank Legal Update, MKR Stream Accounting Cleanup

Created: September 14th, 2022

Passed: Yes,

91K MKR For

What does it do: The aggregated vote will execute: (1) Core Units DAI Distribution, (2) the funding of two special purpose fund multisig wallets, (3) MKR vesting stream clean-up, and (4) the HVBank legal agreement.

  1. Core Unit DAI Distribution
    • This executive proposal will stream 3,004,859 DAI to the DAO Foundation and Oracle Core Units.
  2. Funding of two special purpose fund multisig wallets
    • This proposal will stream 80,000 DAI to special purpose fund multisig addresses.
  3. MKR vesting stream clean-up
    • As outlined in the forum, this vote will vest the remaining unused balance of the Growth Core Unit MKR stream to the Maker Pause Proxy contract.
  4. Legal Agreement Update
    • Updates the IPFS Hash for the HVBank legal agreement.

Why:

  1. Core Unit DAI Distribution
    • Per the ratification poll covered here, Maker is streaming updated DAI distributions to the DAI foundation and Oracle Core Units. Given recent market conditions, the Dai Foundation and Oracle Core Unit’s yearly budget streams are decreasing ~10%.
  2. Funding of two special purpose fund multisig wallets
    • Special purposes funds are used to pay for third-party services contributing to Maker. The first special purpose fund will be provided 50,000 DAI for legal research regarding the greenlighted bIBTA application. The second special purpose fund will provide a 30,000 DAI reimbursement to the Strategic Core Unit team for advancing the cost of legal work on MIP65.
  3. MKR vesting stream clean-up
    • The Growth Core Unit has claimed 738 MKR from the established 803 MKR stream, with no further MKR required. Current accounting practices do not accurately reflect the excess MKR. For accounting purposes, Maker will vest the remaining MKR from the precious stream in the Pause Proxy Contract. 
    • The advantage of this operation is that any front-ends that monitor MKR streams will be able to detect and accurately display the remaining MKR that cannot be claimed. This ensures that any accounting is as precise as possible.
  4. Legal Agreement Update
    • The HVBank legal agreement change includes Updating the HVB Master Participation Agreement (MPA) as shown with indicated edits in red here.

Takeaway: Maker continues to propose executive votes that streamline RWA arrangements and general operations.

Updates on Prior Coverage

 News

  • Decrypt:  Coinbase’s Proposal Expected to Earn MakerDAO $24M Annually
  • Defiant: Christensen Calls For MakerDAO to Float Stablecoin
  • Global Newswire:  HVbankParticipates in Commercial Loan with DAI Stable Coin
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Temperature Check: Improve Governance and Voting Processes with Commonwealth

Created: September 20th, 2022

Passed: Not looking likely,

14K AAVE For,
173K AAVE Against

What does it do: Proposes the use of Commonwealth for community governance management and discussion.

Why: Commonwealth is a platform for DAOs to discuss and vote on proposals. The platform is already used in 900+ DAOs including DYDX and Axie. The platform boasts ease of use and organization as key differentiations. Integration with snapshot also allows for voting within the platform. The community is proposing the tool to increase governance efficiency. 

Takeaway: The Aave community is exploring how to improve the efficiency and organization of its governance processes.

Proposal: Re-enable ETH Borrowing

Created: September 13th, 2022

Passed: Not yet but looking likely,

500K AAVE For,

What does it do: This proposal re-enables ETH borrowing to revert the Aave market back to normal conditions.

Why: AIP-97 paused ETH borrowing on the Aave V2 Ethereum market to mitigate the risk of high utilisation ahead of the Ethereum Merge. Now that the Ethereum Merge has passed and markets are returning to normal, this enables all ETH-based borrowing.

Takeaway: The Aave community exercised proper risk management before the Ethereum merge and can now return to normal operating conditions.

Proposal: V3 Retroactive Funding

Created: September 9th, 2022

Passed: Yes

670K AAVE for,

What does it do: Provides $16.28M in retroactive funding to Aave Companies for developing Aave Protocol V3.

Why:  Aave V3 added additional capabilities to the Aave Protocol based on community feedback, addressing shortcomings in V2. New features include High-Efficiency Mode and Isolation Mode that boosts capital efficiency and reduces procedure hazards. Thus, the proposal seeks to distribute $16.28 million retroactively for incurred labor and audit services.

Takeaway: The Aave community is rewarding core team members for the successful launch of Aave V3.

Updates on Prior Coverage

  • Proposal: Risk Parameter Updates for Aave V2
  • Proposal: Add LUSD to Aave V2
  • ARC: Aave DAO Stance on Ethereum POW Fork

 News

  • Defiant:  All The ETH On Aave Has Been Borrowed Ahead Of The Merge
  • Coindesk: DeFi Giant Aave Stops Loaning Ether Ahead of the Merge
Synthetix Banner

Proposal: Enable nominations during voting period

Created: September 20th, 2022

Passed: Not yet but looking likely, 
7 SNC-SC For, 
0 Against

What does it do: Changes the governnce model to allow users to nominate themselves for a council election during the voting period, rather than solely in the nomination period. 

Why: Legitimate candidates are missing out on the chance to run due to missing the nomination period. This reduces the candidate pool and cuts out potentially good participants. In turn, this could have an impact on Treasury Council activities, meta-governance votes conducted by the Spartan Council and other important decisions!  

Takeaway: Whilst the nomination periods were initially implemented due to concerns around spam applicatons, the introduction of the gas fee for nominations has drastically reduced this risk (as evidenced by no spamming incidents).

Proposal: Lower Target Collateralization Ratio 350% from 400% temporarily

Created: September 13th, 2022

Passed: Yes,
7 SNC-SC For,
0 Against

What does it do: Decreases target collateralisation ratio for SNX stakers to 350% from 400$ for the 2 weeks after the initial round of escrow liquidations or if SNX price reaches $3.50 or higher. 

Why: There are three key motivations for this decision: (1) active collateralisation ratio on L2 is currently under 350%, (2) stakers will have to take on increased debt as a result of escrow liquidations and (3) SNX price has been weak of late. By lowering the collateralisation ratio it allows more stakers to continue to claim rewards, which will help them pay down debt and maintain their positions. Additionally, it helps reduce pressure on the sUSD peg caused by stakers buying additional sUSD on the market to pay their debt. 

Takeaway: Temporary measures to protect stakers on the platform and ensure that sUSD keeps its peg. 

Proposal: Addressing an Issue in SNX Inflation Released on 07/09/2022

Created: September 16th, 2022

Passed: Yes,
6 SNX-SC For,
1 Against

What does it do: Temporarily cuts SNX issued as inflation on the L2, with it being redirected to the L1, due to over-issuance on the L2 that occurred at the end of the fee period on 07/09/2022.  

Why: The previous proposal for turning off the money printer has increased the possibility of SNX inflation going to zero. Spreading these emissions evenly will help give time to stakeholders to observe the effects of the inflation reduction. 

Takeaway: Synthetix is on its way to zero inflation, and by reducing L2 inflation it helps reach the 300,000,000 total supply in a fai way. 

Updates on Prior Coverage

 News

  • CoinDesk: Synthetic Founder Proposes Capping Token Supply at 300M

Proposal: Should the Lido DAO add 2 shortlisted Solana operators

Created: September 9th, 2022

Passed: Yes,
55M LDO For,
18k Against

What does it do: Add 2 of the 21 shortlisted Solana operators to the Solana Node Operator Set, as an output of the evaluation meeting on September 6th.  The operators are H2O Nodes and Kukis-Global. 

Why: Lido is looking to diversify validators for the protocols they operate on.

Takeaway: Diversifying validators means greater decentralisation – if Lido are to remain the leading staking service then this is a crucial component of their value proposition and marketing. Interestingly, public perception seems to think Lido has predominantly US-based validators, but the data suggests only 10% is actually in the US.

Updates on Prior Coverage

  • Proposal: Vote to engage a Head of Legal & General Counsel

 News

  • Bitcoin.com: TVL in Lido Rises Before Ethereum’s Merge
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Consensus Check: Deploy Uniswap V3 to zkSync

Created: September 13th, 2022

Passed: Yes

15M UNI For

What does it do: Consensus check to deploy Uniswap V3 on zkSync. 

Why: Matter Labs leads the development of zkSync, an EVM-compatible layer2 zkRollup. Because zkSync is EVM-compatible, Ethereum Dapps can be deployed seamlessly on the network. Matter Labs intends to be the first to market with zkSync in October and the approval for V3 deployment is in anticipation of a successful mainnet launch.

Takeaway: Uniswap continues to work towards a multi-chain future, allowing the community to vet deployments with the top layer2 deployments. 

Temperature Check: Should we deploy Uniswap v3 on Aurora?

Created: September 12th, 2022

Passed: Yes

19M UNI For

What does it do: Temperature check to deploy Uniswap V3 on Aurora.

Why: Aurora is the EVM-compatible solution deployed on the near blockchain.  Near is a layer 1 blockchain that intends to solve transaction scaling through sharding. The proposal includes receiving $5M for incentives and ensures bridge security using Near’s rainbow bridge.

Takeaway: Uniswap continues to work towards a multi-chain future, allowing the community to vet deployments with top EVM-compatible bloockchains. 

Screenshot 2022 03 18 at 19 13 37
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  • Compound
  • Rari Capital

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