Hello Sundae DAO Community!
Now that the vote for an initial fee structure is underway, I wanted to start a conversation about the next decision point for the DAO.
The current design for the v3 protocol has 3 administrator roles, each with different administrative responsibilities, and the DAO needs to select who should fill those roles. The protocol is designed so that each of these can be controlled by a public key hash, a multisig quorum of many public key hashes, or even a smart contract. In the fullness of time, we envision these responsibilities being governed by a smart contract, but to avoid delaying the launch of the v3 contract, we’d recommend choosing a suitable multisig for each.
The three administrative roles are as follows:
In the current design for the v3 contracts, each pool NFT and LP token is a CIP-68 compliant token. This means that we can provide a delightful user experience for liquidity providers by attaching an image, name, ticker, and decimal places for the LP tokens in the users wallet, including customized logos for each different pool.
Here’s a sneak peek at what one of these might look like:
The metadata administrator is authorized to set and update this metadata for each pool that is created.
As explained in the previous governance discussion, the v3 contracts will collect protocol fees. These fees will be collected to the pool, and periodically swept from each pool into a treasury contract. Spending from this contract will require a full on-chain vote by the DAO, making this liquidity truly “protocol owned liquidity”.
The treasury administrator is the only one authorized to sweep these funds from the pool contract to the treasury contract; they are responsible for deciding the frequency and timing of those transactions.
The treasury administrator is also authorized to set the staking address for each pool, and is responsible for balancing delegation among a number of pools according to a policy at the direction of the DAO.
Additionally, if the DAO was required to vote on a proposal for each expenditure (such as paying scoopers regularly), it would create a cognitive drain that would discourage participation in governance overall. To avoid this, the DAO can also set an “allowance”; each time the treasury administrator submits a transaction to withdraw the protocol fees, they are allowed to also withdraw up to some fixed percentage to cover these costs.
Finally, the settings administrator is able to update several protocol settings, including:
- The settings administrator (to rotate keys if needed)
- The treasury administrator
- The metadata administrator
- The list of authorized scoopers
- The base fee
- The incremental fee
- Any extension data
The DAO needs to decide on each of these administrators. Sundae Labs would be happy to take any or all of the roles, and we are also open to a multisig configuration with other trusted projects or community members to introduce a system of checks and balances.
Before we can create a temperature check, we wanted to start a discussion and solicit community feedback. Some points of interesting discussion:
- Is the DAO willing to trust Sundae Labs with these responsibilities?
- Does the DAO want a multisig arrangement for any of these rules? If so, what threshold / quorum should we target?
- Who (people or projects) should Sundae Labs approach about being a member of one of these multisigs?