Wintermute DeFi Governance Digest: January 2024 | Week 4
24 JAN 2024 | RESEARCH | AUTHORED BY CALLEN
This week’s proposals include Uniswap establishing a growth plan for Uni v3 deployments, Silo Finance deprecating the XAI stablecoin, Compound Finance deploying V3 on Scroll, and Index Coop replacing BTC2x-FLI and ETH2x-FLI with an updated product; along with votes from Arbitrum to establish the LTIP pilot’s Council Committee and Advisors, Uniswap deploying V3 on Rootstock, and Aave launching stkGHO.
Proposals
Uniswap (UNI)
Proposal: Uniswap Revitalization and Growth
Author: Getty
Summary: Getty has kicked off a discussion surrounding a plan to improve Uniswap’s market share on new and existing chains. The plan involves allocating UNI incentives, a partner program, and frontends.
Key Points:
–> Support the latest emerging EVM chains and secure Uniswap as the dominant DEX early on.
–> Further invest in current deployments where Uniswap is not a dominant player e.g., BNB Chain, zkSync, Base, etc.
–> $250k in UNI dedicated to kicking off liquidity incentivization on the chain for 3 months.
–> This will target an APY of 10% on ~$10M in liquidity.
–> Incentives will be focused on ETH-USDC, WBTC-USDC, USDC-USDT, and one local pool.
–> A partner protocol/app to execute the UNI rewards program live from day one.
–> A uniswap V3 frontend live from day one.
Our Take: This is a great initiative that should have a strong impact on growing Uniswap’s market share on newer chains.
Silo Finance (SILO)
Proposal: Proposal: A plan to deprecate XAI Stablecoin
Author: aiham.eth
Summary: This proposal lays out the deprecation plan of XAI – Silo’s native stablecoin, as a result of lackluster adoption, imbalanced LP pools, costs, and peg instability.
Key Points:
Our Take: This is an unfortunate situation for Silo, however, it clearly highlights the troubles of successfully launching a stablecoin and the necessity for a peg stability module.
Compound Finance (COMP)
Proposal: Proposal: Deploy Compound III on Scroll
Author: Scroll
Summary: This proposal requests to deploy COMP III on Scroll with USDC as the borrowable asset and WETH and wstETH as collateral assets.
Key Points:
Our Take: This is a great opportunity for both Compound and Scroll to continue their growth efforts. Furthermore, it’ll allow Compound to begin testing their deployments on EVM-equivalent ZK-Rollups.
Index Finance (INDEX)
Proposal: Launch ETH2x & BTC2x, Deprecate FLIs
Author: anthonyb.eth
Summary: This proposal requests to replace ETH2x-FLI and BTC2x-FLI with ETH2x and BTC2x – new deployments of Index’s leveraged token product offering but built natively on Index Protocol.
Key Points:
Our Take: We look forward to watching Index Coop’s transition from its old leveraged products to its new leveraged products and underlying infrastructure.
Votes
Arbitrum (ARB)
Proposal: Pilot program Council Elections
Status: Ended.
Created: Jan 17, 2024.
Ends: Jan 24, 2024.
Leading Consensus: GFX Labs, 404 DAO, Wintermute, GMX, Karel Vuong
Summary: After the successful Snapshot vote of the Long-term Incentive Program Pilot, the DAO is now voting on the election of 5 Council members who will be responsible for filtering through grant applications, creating a scoring rubric, and ensuring no misuse of grant funds.
Arbitrum (ARB)
Proposal: Pilot Program Advisor Elections
Status: Ended.
Created: Jan 17, 2024.
Ends: Jan 24, 2024.
Leading Consensus: JoJo, SEEDLatam Gov, Castle Capital
Summary: After the successful Snapshot vote of the Long-term Incentive Program Pilot, the DAO is now voting on the election of 3 Application Advisors who will be responsible for helping design grant application templates and offering feedback to applications during the application process.
Uniswap (UNI)
Proposal: Deploy Uniswap V3 on Rootstock
Status: Live.
Created: Jan 22, 2024.
Ends: Jan 27, 2024.
Leading Consensus: For – 37M UNI (100% of total votes).
Summary: This proposal requests to deploy Uniswap V3 on Rootstock, the first Bitcoin Sidechain. The Rootstock team have earmarked $3M in bootstrapping liquidity across various pools.
Aave (AAVE)
Proposal: stkGHO Activation
Status: Ended.
Created: Jan 20, 2024.
Ends: Jan 24, 2024.
Leading Consensus: For – 661.87k AAVE (100% of total votes).
Summary: This on-chain vote ratifies the launch of stkGHO which will allow GHO to be staked into Aave’s Safety Module. stkGHO will receive 50 AAVE/day for the next 3 months.