Welcome to the very first karpatkey governance newsletter — your source for the latest in DAO governance, DeFi developments and insights into our DeFi Treasury Network. Each month, we’ll share key milestones, community discussions and initiatives shaping the future of DeFi governance with karpatkey.
Headline: dYdX Community Treasury Setup
With the approval of Proposal #157, karpatkey was selected to establish and manage the dYdX Treasury SubDAO, a key milestone in the expansion of our DeFi Treasury Network. This partnership includes setting up a Cayman Foundation to oversee approximately 45 million DYDX tokens (50% of the vested Community Treasury) through a secure multi-signature structure.
Our proposed Treasury SubDAO Structure has several key features:
- Cayman Foundation: Tried-and-tested setup that provides regulatory clarity and minimises legal and tax risks for DYDX holders.
- Multi-Sig Governance: A 3-of-6 wallet setup with 3 signers each from karpatkey and the dYdX community, ensuring joint transaction authorisation and decentralised control.
- Staking Program: Allocates 45 million DYDX to a staking program, generating USDC rewards to diversify and stabilise the treasury.
This collaboration will enable dYdX to diversify its assets, reduce risk, and strengthen its financial foundations. Once established, the SubDAO will provide a platform for future treasury management and initiatives, enabling the dYdX community to pursue its developing goals from a sound financial footing.
Key Topics & Proposals
This month has seen significant progress across a range of governance initiatives and partnerships. Below is a recap of the key developments:
Aave: Credit Line and Yield Optimisation
- GnosisDAO credit line: In a move to strengthen inter-DAO collaboration and liquidity support, karpatkey proposed a DAO-to-DAO credit line from Aave to GnosisDAO, using GNO as collateral. This setup allows GnosisDAO to access liquidity through Aave’s infrastructure without needing to liquidate assets, promoting flexibility and resilience across both DAOs. This credit line exemplifies how karpatkey is driving cross-DAO partnerships to build a more connected and robust DeFi ecosystem. More details on the credit line.
- Optimising yields with aUSDC: A proposal for?using aUSDC, a yield-bearing asset, instead of USDC in Aave’s GSM to boost returns. This initiative was developed?by karpatkey?with support from TokenLogic. Learn more about the aUSDC initiative.
Gnosis & Safe: SafeBoost on Gnosis Chain
karpatkey’s proposal for a SafeBoost program on Gnosis Chain aims to increase activity and engagement in Safe wallets across the chain through targeted incentives. If approved, karpatkey will operate a points system covering various activities, with corresponding rewards being streamed directly to users. The program helps realise the Joint Treasury’s mission of growing both the Gnosis Chain and Safe ecosystems, and would run from January 2025 for 6 months. Read more about our proposal on Safe | View the proposal on Gnosis.
Balancer: Treasury Performance and Optimisation
- Financial Performance - In Q3 2024, karpatkey focused on strategic cost management and optimisation for Balancer’s treasury, to adapt to evolving market conditions. Highlights include a $2.1M increase in treasury assets, a 4.6% annual return from a diversified asset mix, and $2.34M in protocol income. Read the latest financial report and treasury report.
- Allocation Strategy - Looking ahead, we’re developing an updated treasury allocation strategy to further enhance treasury utilisation as Balancer prepares for the V3 launch. Learn more about the optimisation initiative.
Uniswap: Governance and Growth Initiatives
karpatkey is pleased to be supporting key initiatives led by others across the ecosystem:
- Supporting Tally for Governance: Tally, the primary governance platform for Uniswap DAO, has supported onchain governance since 2020 by providing no-code decision-making tools and secure infrastructure. Tally is now seeking a $250,000 annual grant for two years to continue its support and introduce features like gasless voting and collaborative proposal drafting. Over 50% of Uniswap’s onchain votes are cast on Tally, highlighting its value to the DAO. Join the discussion on Tally’s proposal.
- Growing Uniswap DAO: A recent brainstorming session explored ways for Uniswap DAO to scale effectively and increase its ecosystem impact. Ideas include incentivising DAO participation and improving delegate engagement. Read more on growth discussions.
- Forse Analytics Revitalization Program: Approved and initiated by StableLab, this program focuses on Uniswap’s growth, revitalisation, and the long-term success of its governance framework. This program is a notable example of building resilience and growth across DAOs. Learn more about Forse Analytics' impact.
ENS: Investment Policy Statement (IPS)
In partnership with the ENS community, karpatkey has created a tailored IPS for the ENS Endowment, providing a blueprint for sustainability and long-term growth. Read more about this initiative.
Arbitrum: Innovation and Improvements
We are engaging across a range of complicated topics to help steer the future of the DAO:
- Chain Abstraction Initiative: Arbitrum DAO is exploring chain abstraction to position itself as “the Home for Builders”, inspired by the Superchain initiative. The discussion aims to consider and evaluate the use of working groups and funded research and development efforts to mobilise the DAO towards this goal. Explore the forum post.
- Token Swap Program: A draft proposal aimed to promote the use of token swaps as a means to optimise the DAO’s assets and streamline treasury management initiatives. If successful, the DAO will invest 2 million ARB tokens in 3-7 ecosystem projects. Learn more.
- DAO Operations Improvements: Multiple proposals have been introduced to boost the efficiency and accountability of Arbitrum DAO. These include a Delegate Code of Conduct to formalise governance standards for delegates, support for dedicated contributors to drive key initiatives, and streamlined workflows to increase governance throughput and impact.
At A Glance: The DeFi Treasury Network
Check out the latest metrics and data visualisations that showcase our impact across partner projects. View the highlights here.
That’s all for this month!
Thank you for reading and following along with karpatkey’s adventures in governance.
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