Hello Sundae DAO Community!
14 days ago we opened a discussion explaining the various responsibilities that can be handed out by the DAO for the Sundae v3 protocol; We left discussion open for a long window, to see if anyone had a proposal for alternatives. With no alternatives presented, we’ll proceed with a proposal to elect Sundae Labs for each of the three roles described below.
If the community ever wants to propose and vote to change or expand any of these roles to include a multisig, we’d be thrilled to see such a proposal as it would represent a milestone in the growth and maturity of the Sundae ecosystem.
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
We propose (for lack of other proposals) that Sundae Labs fulfill each of these responsibilities until such a time as the DAO elects to change one or more of these administrative roles. The options on the governance decision will be:
- Vote Sundae Labs to elect Sundae Labs to each of the three administrator roles described above.
- Vote None to elect noone to each of the roles, and delay the launch of Sundae v3 until a broader consensus can be reached.
Are you interested in voting in an on-chain governance vote to this effect?