I spent 5 hrs on a 55-pg paper by Prof. Appel @UVA & Prof. Grennan @SantaClaraUniv on Decentralized Governance & Digital Asset Prices.
Found valuable insights on robust DAO governance, with ve-tokenomics giants @CurveFinance & @ConvexFinance as highly relevant examplesπ§΅π‘
Found valuable insights on robust DAO governance, with ve-tokenomics giants @CurveFinance & @ConvexFinance as highly relevant examplesπ§΅π‘
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I'm launching this new series centered on DeFi-related academic research and literature reviews, in which I extract insights from scholarly works and critically assess their pertinence and applicability to prevailing trends and protocols within the DeFi ecosystem.
I'm launching this new series centered on DeFi-related academic research and literature reviews, in which I extract insights from scholarly works and critically assess their pertinence and applicability to prevailing trends and protocols within the DeFi ecosystem.
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The primary objective is to cultivate a meaningful synergy between the scholarly realm and the DeFi ecosystem, transcending theoretical ideations to practical impact.
Staying true to my ethos of sharing free research reports for collective learning and growth π
The primary objective is to cultivate a meaningful synergy between the scholarly realm and the DeFi ecosystem, transcending theoretical ideations to practical impact.
Staying true to my ethos of sharing free research reports for collective learning and growth π
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First of all I want to add that this scholarly paper stands out as the most comprehensive & in-depth examination of DAOs I have encountered.based
First of all I want to add that this scholarly paper stands out as the most comprehensive & in-depth examination of DAOs I have encountered.based
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This paper β¬οΈ
π’ Examines 150 DAOs across DeFi, Web3 & Infrastructure, with 21 functionalities
π’ Explores 28 governance dimensions, including voting, organisation, security & governance models
π’ Analyzes 11,141 token holder proposals for in-depth DAO understanding
This paper β¬οΈ
π’ Examines 150 DAOs across DeFi, Web3 & Infrastructure, with 21 functionalities
π’ Explores 28 governance dimensions, including voting, organisation, security & governance models
π’ Analyzes 11,141 token holder proposals for in-depth DAO understanding
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In this thread πͺ‘ I will explain how @CurveFinance and @ConvexFinance epitomise the best decentralised governance design based on the key findings in the paper
In this thread πͺ‘ I will explain how @CurveFinance and @ConvexFinance epitomise the best decentralised governance design based on the key findings in the paper
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The study suggests that protocols achieving 3 key governance practices in DAOs will result in better asset price performance.
π I will be applying this to Curve & Convex
The study suggests that protocols achieving 3 key governance practices in DAOs will result in better asset price performance.
π I will be applying this to Curve & Convex
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Finding #1 β‘οΈ Greater voting power among smaller token holders
A prevalent misconception suggests that Curve has low participation dispersion due to Convex holding ~50% of CRV's circulating supply.
Finding #1 β‘οΈ Greater voting power among smaller token holders
A prevalent misconception suggests that Curve has low participation dispersion due to Convex holding ~50% of CRV's circulating supply.
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Contrary to popular belief, voting power is well dispersed among protocols, DAOs, and whales.
i.e. @fraxfinance holds ~6.8% of CVX, translating to a mere 3.4% voting power on Curve.
No single wallet holds more than 8% of CVX total supply, showcasing balanced power dynamics.
Contrary to popular belief, voting power is well dispersed among protocols, DAOs, and whales.
i.e. @fraxfinance holds ~6.8% of CVX, translating to a mere 3.4% voting power on Curve.
No single wallet holds more than 8% of CVX total supply, showcasing balanced power dynamics.
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The essence of equal rights to governance also highlights the potential pitfalls of large token allocations to VCs in DeFi protocols.
Such practices risk skewing the roadmap towards investors' interests rather than what truly benefits the community.
The essence of equal rights to governance also highlights the potential pitfalls of large token allocations to VCs in DeFi protocols.
Such practices risk skewing the roadmap towards investors' interests rather than what truly benefits the community.
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An example of this would be @Uniswap's deployment on @BNBCHAIN earlier in Feb.
@a16z was able to exert control over Uniswap by downvoting the proposal which would have used @wormholecrypto as opposed to their other investment, @LayerZero_Labs.
An example of this would be @Uniswap's deployment on @BNBCHAIN earlier in Feb.
@a16z was able to exert control over Uniswap by downvoting the proposal which would have used @wormholecrypto as opposed to their other investment, @LayerZero_Labs.
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Finding #2 β‘οΈ Optimal and equitable quorum thresholds
Curve strikes a perfect balance in terms of inclusivity and security with their Quorum thresholds:
Ownership Proposals: 30% quorum with 51% support
Parameter Proposals: 15% quorum with 51% support
Finding #2 β‘οΈ Optimal and equitable quorum thresholds
Curve strikes a perfect balance in terms of inclusivity and security with their Quorum thresholds:
Ownership Proposals: 30% quorum with 51% support
Parameter Proposals: 15% quorum with 51% support
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Finding #3 β‘οΈ Governance provisions that foster inclusivity and fortify security within decentralized frameworks
In terms of inclusivity, $vlCRV and $vlCVX holders will participate in directing emissions on Curve without any restrictions.
Finding #3 β‘οΈ Governance provisions that foster inclusivity and fortify security within decentralized frameworks
In terms of inclusivity, $vlCRV and $vlCVX holders will participate in directing emissions on Curve without any restrictions.
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In terms of security, @CurveFinance has an Emergency DAO with limited authority to kill pools & gauges during extraordinary circumstances.
i.e. the DAO killed the USDM gauge as it constituted a clear governance attack to protect liquidity providers and users of the protocol
In terms of security, @CurveFinance has an Emergency DAO with limited authority to kill pools & gauges during extraordinary circumstances.
i.e. the DAO killed the USDM gauge as it constituted a clear governance attack to protect liquidity providers and users of the protocol
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3οΈβ£ Closing thoughts
@CurveFinance not only dominates the Stableswap arena but also manifests true decentralization in its governance structure.
3οΈβ£ Closing thoughts
@CurveFinance not only dominates the Stableswap arena but also manifests true decentralization in its governance structure.
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The elegant duo of Curve & Convex embody the optimal decentralized governance practices from the perspectives of (i) dispersed voting power, (ii) equitable quorum thresholds & (iii) inclusive governance practices.
The elegant duo of Curve & Convex embody the optimal decentralized governance practices from the perspectives of (i) dispersed voting power, (ii) equitable quorum thresholds & (iii) inclusive governance practices.
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Through its carefully crafted layers of decentralized decision-making, Curve DAO closely reflects the positive correlations outlined in the DAO Governance Heatmap from the paper.
It demonstrates an exemplary model of efficacious governance.
Through its carefully crafted layers of decentralized decision-making, Curve DAO closely reflects the positive correlations outlined in the DAO Governance Heatmap from the paper.
It demonstrates an exemplary model of efficacious governance.
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I'm excited to start this first episode of my academic thread series, where I would derive key takeaways from scholarly literature and academic research in the field to analyze DeFi protocols and practices.
Your feedback on the format and topics is much appreciatedπ‘
I'm excited to start this first episode of my academic thread series, where I would derive key takeaways from scholarly literature and academic research in the field to analyze DeFi protocols and practices.
Your feedback on the format and topics is much appreciatedπ‘
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Tagging my CT frens who might be interested (Part 1)
@rektfencer @Slappjakke @Only1temmy @rektdiomedes @Chinchillah_ @DeFiMinty @TheDeFISaint @DeFi_Cheetah @Louround_ @CryptoShiro_ @defi_mochi @crypto_linn @0xFlips @2lambro @ThorHartvigsen @ViNc2453 @alpha_pls @0xJamesXXX
Tagging my CT frens who might be interested (Part 1)
@rektfencer @Slappjakke @Only1temmy @rektdiomedes @Chinchillah_ @DeFiMinty @TheDeFISaint @DeFi_Cheetah @Louround_ @CryptoShiro_ @defi_mochi @crypto_linn @0xFlips @2lambro @ThorHartvigsen @ViNc2453 @alpha_pls @0xJamesXXX
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Tagging my CT frens who might be interested (Part 2)
@DefiIgnas @crypthoem @0xsurferboy@TheDeFinvestor @0xCrypto_doctor @psychguy_eth @DAdvisoor@arndxt_xo @milesdeutscher @CJCJCJCJ_ @francescoglt @kindahangry @schizoxbt @Subli_Defi @0xTindorr @NintendoDoomed
Tagging my CT frens who might be interested (Part 2)
@DefiIgnas @crypthoem @0xsurferboy@TheDeFinvestor @0xCrypto_doctor @psychguy_eth @DAdvisoor@arndxt_xo @milesdeutscher @CJCJCJCJ_ @francescoglt @kindahangry @schizoxbt @Subli_Defi @0xTindorr @NintendoDoomed
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