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:
- First, recap how the Gyroscope governance works;
- 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:
- Consultation, where anyone can bring an idea to this forum for discussion
- Indicative vote on Snapshot
- 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:
- Members of the Founding Member Vault: every owner of a Gyro founding frog (an NFT distributed on Ethereum) who has claimed voting power
- Members of the Councillor Vault: selected Councillors who have minted a Councillor NFT (distinct from the Founding Frog NFT) can vote
- Members of the Associated DAO Vault: this vault allows governance to assign voting power to other DAOs that are part of the Gyroscope ecosystem
- Holds of the GYFI governance token who have staked it in the GYFI Vault (live but no holders of GYFI to use it yet)
- 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.
