Wintermute DeFi Governance Digest: September 2024 | Week 2
9 SEPTEMBER 2024 | RESEARCH | AUTHORED BY CALLEN
This week’s proposals include Lyra rebranding to Derive and launching the DRV token, dYdX proposing to renew the Operations subDAO for 3 years with a budget of $23.3M, and MakerDAO (Sky) incentivizing sUSDS deposits on Aave as well as a USDS D3M for Aave’s Lido instance; along with votes from Uniswap to activate additional fee tiers on Base, Synthetix launching an OP Stack Governance chain, and Aave activating an EtherFi instance.
Proposals
Derive (Formerly Lyra) (DRV)
Proposal: DRV Token Launch and Functionality
Author: Domrom
Summary: This proposal outlines the new tokenomics, migration process, staking mechanism, governance structure, and incentive outline for Lyra’s rebrand to Derive.
Key Points:
- Lyra recently announced its rebranding to Derive which includes a new token (DRV), governance structure, and vision of being a composable ecosystem of derivatives.
- This rebranding includes a token migration, new tokenomics, a staking mechanism, and changes to governance and liquidity/trading incentives.
- The strategy aims to promote long-term engagement for token holders, governance participants and protocol users alike.
- The DRV Token:
–> Max supply of 1b (same as LYRA)
–> Each LYRA/stkLYRA holder will have a 1:1 claim on DRV tokens
–> No new tokens will be minted
–> DRV will be launched on ETH Mainnet in Q4, with the majority of it bridged to the Derive L2 for claiming
–> Users who pre-stake all their DRV to stDRV in the 4 weeks before token launch will receive a one-time bonus of 5% boost to their balance
- DRV Staking:
–> DRV can be staked into stDRV on the Derive L2 and only stDRV can participate in governance
–> stDRV is non-transferable with a 28-day unlock period
–> Users can unlock instantly for a 20% exit fee
–> stDRV holders will be eligible for rewards
- The DAO treasury will allocate at most 1,150,000 DRV to staking rewards each week, with rewards distributed to stDRV stakers who have delegated their voting power.
- A max of 2,500,000 DRV will be allocated weekly to various points programs for protocol usage (trading, liquidity, etc.)
- 25% of protocol revenue will be used to buy back DRV which will then be sent to the DAO’s treasury.
Our Take: Derive’s rebrand for their upcoming L2 launch carries some nice properties for token holders and governance participants.
dYdX (DYDX)
Proposal: dYdX Operations SubDAO 3.0
Author: dYdX Ops subDAO
Summary: This proposal requests to continue the dYdX Operations subDAO for an additional 36 months with a $23.3M budget. The renewed mandate will focus on dYdX Chain infrastructure, front ends, and a technical team expansion.
Key Points:
- The dYdX Operations subDAO 2.0 will end in January 2025, with a successful second term, they are now requesting to continue with a 3rd term for 36 months and a budget of $23.3M.
- The dYdX Operations subDAO played a pivotal role in the launch of the dYdX Chain and has provided continuous support for Validators and the Community.
- The renewed term will focus on continuing to provide essential resources, tools, and infrastructure needed to ensure the smooth operation of the dYdX Chain.
- Specifically,
–> dYdX Chain Indexer
–> Front ends – dydx.trade, iOS App, and Android App
–> Validator communications and alert systems
- The mandate will also include hiring a QA engineer, Legal Counsel, and 2 additional technical contributors to the dYdX Chain unit and Front-End unit.
- The estimated budget will be allocated as follows:
Our Take: The dYdX Operations subDAO plays an integral role in the maintenance and support of the dYdX Chain. Their renewal will ensure the chain continues to operate at a high standard.
MakerDAO (MKR)
Proposal: Spark Proposal for Integrations into Aave
Author: Phoenix Labs
Summary: Phoenix Labs is proposing to incentivize sUSDS supply on Aave V3 with 3.33M SPK/month and activate a USDS D3M Aave Lido market with an initial debt ceiling of 100M.
Key Points:
- Aave recently proposed to add sUSDS to Aave V3 and the Aave Lido market.
- In order to help bootstrap the adoption of sUSDS on Aave, Phoenix Labs is proposing to incentivize sUSDS deposits with SPK (pre-farming airdrop) tokens at a rate of 3.33M SPK per month.
- They are also proposing to create a USDS D3M to Aave Lido market with an initial debt ceiling of 100M to boost adoption amongst wstETH holders.
- sUSDS is the staked version of USDS which allows holders to earn the Sky Savings Rate (SSR).
Our Take: Aave has an extremely diverse user base with a significant amount of TVL that can be used to bootstrap adoption for USDS.
Votes
Uniswap (UNI)
Proposal: Proposal to active 2, 3, 4 bps fee-tiers on Base
Status: Live.
Created: Sep 6, 2024.
Ends: Sep 13, 2024.
Leading Consensus: For – 17.81M UNI (78% of total votes).
Summary: Given an increasingly competitive environment on Base, this proposal requests to create additional fee tiers (2, 3, and 4 bps) in an attempt to experiment with improving Uniswap’s market share.
Synthetix (SNX)
Proposal: SIP-384: Launch Synthetix Chain (SNX Chain) Using the OP Stack for V3 Governance
Status: Finished.
Created: Aug 29, 2024.
Ends: Sep 7, 2024.
Leading Consensus: sYes – 5 SNX-SCT (83.33% of total votes).
Summary: This proposal requests to deploy Synthetix Chain, an app built on the OP Stack, to act as the primary home of Synthetix V3 Governance.
Aave (AAVE)
Proposal: Aave v3 EtherFi Ethereum Activation
Status: Finished.
Created: Sep 5, 2024.
Ends: Sep 9, 2024.
Leading Consensus: For – 761k AAVE (100% of total votes).
Summary: This proposal activates an Aave V3 EtherFi instance on the Ethereum network focused on weETH holders borrowing stablecoins.