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CryptoEconomic Research

DeFi Protocol Governance Report | January 2022 | Week 3

Gauntlet makes $1 million for the upcoming quarter from Compound, Aave enables FEI collateral, and more!
by Mattison Asher, Laurence SmithJanuary 21, 2022
Governance Jan 22 Week 4
Compound Banner


Proposal: Risk Parameter Updates for ETH

Created: January 10th, 2022

Passed: Yes

  • 405,975 For
  • 55,000 Against

What does it do: Set cETH collateral factor to 82.5%

Why: This proposal is a batch update of risk parameters to align with the Moderate risk level chosen by the Compound community. 

Takeaway: Another routine risk parameter update based on Gauntlet’s modeling.

Proposal: Dynamic Risk Parameters – Quarterly Update

Created: January 17th, 2022

Passed: Not yet, but likely will

  • 806,849 For
  • 0 Against

What does it do: 

  • Gauntlet updates streaming grant request to 8,168 COMP for next quarter, which is approximately $1.1 million at current prices
  • Gauntlet moves to Sablier Stream for payments

Why: Gauntlet is rehired for another quarter.

Takeaway: Gauntlet gets paid

Aave Banner


Proposal: AIP 55: Enable FEI as Collateral on Aave V2

Created: January 18th, 2022

Passed: Yes

  • 414,747.98 For
  • 0 Against

What does it do: Enables FEI to be used as collateral with the following risk parameters

Aave Fei Graph

Why: Gauntlet has shown that FEI is safe to add as collateral

Takeaway: FEI can be used as collateral on Aave v2

Rari Capital Banner

Rari Capital

On-Chain Proposal: Whitelist StakeWise as a Fuse Pool Creator

Created: January 15th, 2022

Passed: Yes,

  • 17 TRIBE For,
  • 0 Against

What does it do: Whitelists the DeFiGeek Community address as a pool creator for Rari Pool Fuse #102. 

Why: DeFiGeek Community is a creator of a range of Dapps and tools. The first of which is Yamato Protocol, which allows users to generate CJPY (a crypto-backed stablecoin pegged to the JPY) by leveraging ETH. DeFiGeek Community has the largest TVL for an unverified pool of Fuse and by enabling them to create verified pools it would help grow Rari’s user base. 

Takeaway: DeFiGeek Community are now a verified pool creator. 

MMI NL Banner MakerDao


On-Chain Proposal: Recover DAI from Optimism Escrow, Changes to Uniswap LP Vault Debt Floor Parameters, Delegate Compensation

Created: January 14th, 2022

Passed: Yes,

  • 76,233.87 MKR For

What does it do:

Makes the following changes to the Maker Protocol:

  • Transfers 10 million DAI from the Optimism Escrow to a user, who previously burned the DAI accidently on the optimism chain as per this signal request
  • Increases the Debt Floor for the following Uniswap LP Vault types:
  • UNIV2DAIETH-A from 15,000 DAI to 60,000 DAI
  • UNIV2USDCETH-A from 15,000 DAI to 60,000 DAI
  • UNIV2WBTCDAI-A from 15,000 DAI to 60,000 DAI 
  • UNIV2WBTCETH-A from 15,000 DAI to 25,000 DAI 
  • UNIV2UNIETH-A from 15,000 DAI to 25,000 DAI 
  • Transfer a total of 48,290 DAI to seven Recognised Delegates as a part of the Delegate Compensation Trial 


A user accidently sent $10M DAI to a 0 address, thus burning the funds unintentionally due to the burn function being confused with that of this contract. These funds can be returned via an executive vote from the Optimism escrow, and will be returned given that the proposal has been passed.  

Debt Floors (the minimum permitted debt for a vault) are being increased to increase the margin of safety for LP vault types to match other vaults. This is because higher Debt Floors make vaults less accessible for smaller user, but also removes the risk that vaults may be too small to liquidate profitably. 

Recognised Delegates are being rewarded for their contributions, as was laid out in the Delegate Compensation Trial. Details of delegate compensation for December can be found here

Takeaway: The lost funds will be returned, debt floors will rise to increase the margin of safety for LP vault types and Recognised Delegates will be rewarded for their efforts!

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