Wintermute DeFi Governance Digest: August 2024 | Week 3
19 AUGUST 2024 | RESEARCH | AUTHORED BY CALLEN
This week’s proposals include dYdX launching a new 6-month $20M incentive program for the launch of dYdX Unlimited, Frax Core Team requesting a 13M FRAX budget for the next year of operations and development of the Frax ecosystem, and Optimism upgrading their Fraud Proof Architecture after audit findings; along with votes from Jito allocating 1M JTO to a bug bounty program, Arbitrum launching a 250M ARB treasury diversification program, and Uniswap enabling new fee tiers on Base.
Proposals
dYdX (DYDX)
Proposal: [DRC] Launch Incentive Program Re-launch Proposal
Author: Chaos Labs
Summary: Chaos Labs is requesting an additional $20M in DYDX rewards to rerun a new 6-month incentive program with the launch of dYdX Unlimited.
Key Points:
–> Permissionless market listings
–> MegaVault liquidity
–> Affiliates program
–> Permissioned keys
–> Over $206bn in trading volume across 116 markets
–> Over $34M in net fees while distributing $25M in incentives
–> Over 14,000 active traders and 30 different market makers
–> A weekly trader retention rate of 50% to 80%
Our Take: Chaos Labs’ prior incentive program has successfully retained traders and market makers in a competitive market. A new incentive program aligned with bootstrapping dYdX Unlimited is important to continue attracting new users.
Frax Finance (FRAX)
Proposal: Frax Finance Annual Budget Request (2024 – 2025)
Author: Amirnader, Frax Core Team
Summary: The Frax Core Team are requesting 13M FRAX for the next year of development. The budget is focused on 6 key areas: Development and Operations, Security, Grants, Reserve Emergency Fund, Legal & Compliance, and Fraxtal Growth.
Key Points:
Our Take: The proposed budget seems reasonable, clear, and in line with other large DeFi protocols.
Optimism (OP)
Proposal: Upgrade Proposal #10: Granite Network Upgrade
Author: Mofi
Summary: This proposal is an upgrade in response to security vulnerabilities identified during a series of third-party security audits regarding Optimism’s Fault Proof architecture.
Key Points:
Our Take: This is great work by the Optimism team, auditors, and contributors, bringing Optimism closer to a highly secure Stage 1 L2.
Votes
Jito (JTO)
Proposal: JIP-5: Bug Bounty Program
Status: Live.
Created: Aug 15, 2024.
Ends: Aug 20, 2024.
Leading Consensus: Yes – 10.64M JTO (100% of total votes).
Summary: This proposal requests to send 1M JTO to a Jito Foundation-controlled address for payouts related to a bug bounty program.
Uniswap (UNI)
Proposal: [Temp Check] Activate 2, 3, 4 bps fee tiers on Uniswap v3 on Base
Status: Finished.
Created: Aug 15, 2024.
Ends: Aug 18, 2024.
Leading Consensus: Yes, activate additional tiers – 19M UNI (88.21% of total votes).
Summary: Uniswap V3’s volume market share on Base has seen a noticeable decrease as a result of Aerodrome introducing lower fee tiers on major pools. As a result, Uniswap is considering activating 2, 3, and 4 bps fee tiers to begin experimenting and potentially win back market share.
Arbitrum (ARB)
Proposal: Strategic Treasury Management on Arbitrum
Status: Live.
Created: Aug 16, 2024.
Ends: Aug 23, 2024.
Leading Consensus: For – 30M ARB (55.85% of total votes).
Summary: This vote aims to establish the Arbitrum Strategic Treasury Management Group tasked with allocating and diversifying 250M ARB from the DAO’s treasury to ensure long-term sustainability & ecosystem growth.