[Consultation] End-to-end governance test and launch of AMO pool with 200k GYD on Base

Update
Passed to Indicative Vote on Snapshot, live here.

Introduction

The Gyroscope protocol is designed from the ground-up to be decentralized and controlled by the users of the protocol.

In Gyroscope, it’s not just governance token ownership that grants governance power, but also use of the protocol, having capital at stake or being a prominent figure in the DeFi ecosystem.

Since this is intended to be the first end-to-end run of the system, unusually this post will:

  1. First, recap how the Gyroscope governance works;
  2. Second, describe the proposal for Base.

This post is written by FTL Labs, the development company granted a mandate by the community to initialize the Gyroscope Protocol.

Recap of Gyroscope Governance

The governance process will have three main steps:

  1. Consultation, where anyone can bring an idea to this forum for discussion
  2. Indicative vote on Snapshot
  3. Final on-chain vote

Full detail about the expected flow of the Governance process is available here.

Who can participate Indicative Votes and final on-chain votes

Anyone with Gyroscope governance power (GGU) is able to participate. You can check whether you already have GGU here in the ‘Portfolio’ section.

Unlike many other projects, voting power is not purely reflective of capital: Gyroscope Governance is pluralistic. Specifically, as described in the documentation here, the types of parties eligible to vote are:

  1. Members of the Founding Member Vault: every owner of a Gyro founding frog (an NFT distributed on Ethereum) who has claimed voting power
  2. Members of the Councillor Vault: selected Councillors who have minted a Councillor NFT (distinct from the Founding Frog NFT) can vote
  3. Members of the Associated DAO Vault: this vault allows governance to assign voting power to other DAOs that are part of the Gyroscope ecosystem
  4. Holds of the GYFI governance token who have staked it in the GYFI Vault (live but no holders of GYFI to use it yet)
  5. Members of the GYD LP Vault: this vault aggregates the voting power across a set of pools in which the user is providing GYD liquidity.

If you currently don’t have any GGU, it’s not too late to power-up: LPing in a (sDAI/USDC/USDT)/GYD pool and then staking the LP shares in the Governance vaults (Gyroscope Protocol) will grant you governance power.

You’ll earn 13x SPIN while you’re at it, too.

Summary of proposal

To mint (but not issue) 200k GYD on Ethereum mainnet and bridge it over to an AMO pool for GYD on Base similar to the Gyroscope AMO pools that already exist on Ethereum and Arbitrum (AMO = algorithmic market operations, previously also referred to as ‘bootstrapping pools’). The AMO pool, which has been deployed for this proposal, is an E-CLP.

Background/Motivation

The motivation for a bootstrapping pool is to provide a streamlined issuance route for GYD on new blockchain networks, and in this case, Base specifically. Rather than passing through all of the checks and balances of the full GYD stablecoin on Ethereum, an AMO pool allows for some minted but unissued GYD to sit in a pool, where that GYD can then be swapped out by swapping in the other asset in the pool.

In this case, users can swap aUSDC into the pool and receive GYD out on Base. AMO pools are meant to maintain a bootstrapping of GYD liquidity. As GYD grows, AMO pools are intended to be balanced with the main GYD reserves on Ethereum, and AMO pools such as this may be partially or fully unwound into the main reserves on Ethereum over time

What happens next

Everyone in the community is invited to discuss this proposal to bootstrap GYD on Base.

Since this is also the first test of the system, feedback on the Governance process design itself is also encouraged.

If the discussion is generally in favour of the proposal, an Indicative Vote on Snapshot will take place.

53 Likes

Sounds fine to me. How much effort does it take to mint, bridge and create such pool on L2?

It’s very straightforward at the technical level provided the L2 supports E-CLPs (which in this case Base does)

2 Likes

Boosting GYD supply is a fantastic opportunity; additionally, Base is a rapidly expanding L2 with a strong interest from DeFi users. Therefore, I support this proposal.

11 Likes

Lets go guys ,I support this proposal and choosing Base is the best deceision you made for Gyroscope

3 Likes

Thats wise way to extent our project to other networks. Base is good choice due to the amount of users it has.:facepunch:

2 Likes

Makes total sense to do so and pair with waUSDC similar to the Arbitrum deployment. I would vote yes for this proposal as is. However, can the pool deployment be shared prior in an edit of this same proposal? It would be good for the community to vote on the specific pool to validate the parameters are similar to that of the Ethereum and Arbitrum deployments.

I think it is a good deception base is growing rapidly and attracting so much money and users.

1 Like

Regarding the governance process, I think the system is designed really transparent and genuinely decentralized. But we’ll have to see how it actually plays out in practice and whether the voting power of different vaults is balanced or not.

As for this proposal, I’m totally in favor of it and I’m excited to see GYD go live on the Base network.

1 Like

finally…exciting
i think gyro need more speed in actions

1 Like

Boosting GYD supply ? Its really awesome ! Lets do this

1 Like

The proposal looks solid, especially the approach of minting GYD on Ethereum and bridging it to Base via the AMO pool. It’s a smart way to bootstrap liquidity while ensuring stability through user-provided collateral. I fully support this initiative for expanding the GYD stablecoin.

1 Like

I believe this initiative will enhance liquidity and contribute positively to gyro. Looking forward to moving ahead with this development

Great to see governance moving forward. Fully in support of the proposal.

Excited about the first end-to-end test.

I’m entirely in favor of launching the AMO pool on Base. I see the Superchain as a critical market for Gyroscope’s growth.

1 Like

Big fan of expanding on L2s, capture as much liquidity as Gyro can.

i think this can help project and its a one step more for growth

1 Like

The most important sentence of this article is the first sentence.
It means control by users

1 Like

Seems great to me
i think we should give it a shot :+1: :+1: :+1:

I support this proposal. because boosting GYD supply is a fantastic opportunity; additionally, Base is a rapidly expanding L2 with a strong interest from defi users.