Wintermute DeFi Governance Digest: June 2024 | Week 2
10 JUNE 2024 | RESEARCH | AUTHORED BY CALLEN
This week’s proposals include Jito introducing a Validator Blacklist, Synthetix integration Pyth’s Express Relay, and Astar Network burning 5% of the ASTR supply; along with votes from Arbitrum to launch their 200M ARB Gaming fund and Aave launching a GHO Safety Module on Arbitrum.
Proposals
Jito (JTO)
Proposal: Authorization to Blacklist Validators for Mempool Participation and Other Malicious Behaviors
Author: Andrewt
Summary: This proposal requests to empower a working group to blacklist validators from the Jito Stake Pool who engage in adverse behavior that is harmful to the Solana ecosystem such as private mempool participation and vote lagging.
Key Points:
Our Take: We commend Jito’s efforts to promote a positive-sum network and protect the integrity of the JitoSOL network. This is a great first step and we look forward to seeing its results.
Synthetix (SNX)
Proposal: SIP-391: Liquidations on Synthetix using Pyth’s Express Relay
Author: Yaser
Summary: Douro Labs is proposing Synthetix adopt Pyth’s Express Relay to provide a better liquidation mechanism for liquidity providers on Synthetix.
Key Points:
Our Take: Pyth’s Express Relay should have a notable impact on improving user experience for liquidity providers as they no longer have to convert yield earned in various assets.
Astar Network (ASTR)
Proposal: Astar Foundation burning proposal of 5% of Astar genesis allocation
Author: Maarten
Summary: This Astar Foundation is considering burning its parachain auction reserve (5% of Astar’s genesis allocation) as Polkadot’s upgrade phases out crowdloans.
Key Points:
Our Take: While burning tokens may make sense at face value, more often than not, protocols are better of repurposing these tokens or retaining them in the treasury for future expenses
Votes
Arbitrum (ARB)
Proposal: Catalyze Gaming Ecosystem Growth on Arbitrum
Status: Finished – Passed.
Created: May 22, 2024.
Ends: June 8, 2024.
Leading Consensus: For – 162.41M (76.3% of total votes).
Summary: This proposal requests the creation of the Arbitrum Gaming Catalyst Program (GCP) designed to increase awareness and adoption of Arbitrum/Orbit/Stylus by builders and players in the gaming community. GCP will have a budget of 200M ARB over three years to expand the gaming ecosystem on Arbitrum.
Aave (AAVE)
Proposal: [TEMP CHECK] Activate and Deploy GHO Safety Module on Arbitrum
Status: Finished – Passed.
Created: Jun 4, 2024.
Ends: Jun 7, 2024.
Leading Consensus: YAE – 653k AAVE (100% of total votes).
Summary: This proposal requests to launch a GHO Safety Module (GSM) on Arbitrum to provide an additional layer of protection to the protocol in case of shortfall events.