Proposal: Whitelist Frax Share (FXS)
$FXS is the non-stable (volatile) governance token associated with Frax Finance; not to be confused with its algorithmic stablecoin, $FRAX. At this stage the Frax Finance project is quite well-established, with numerous sources of liquidity both on centralized exchanges and other DeFi protocols. The proposed co-investment is relatively modest, compared with the relative size of the liquidity elsewhere - which is fine. Having smaller pools is easier to tolerate in terms of risk than larger pools. The token is a vanilla erc20, straight out of the OpenZeppelin library, and does not represent any apparent security threats. The token distribution leaves a little to be desired; the top 2 wallets currently hold 68% of the token supply. This is not necessarily a blocker, and becomes more forgivable in light of the relatively low co-investment. The official Frax Finance Twitter account has not yet acknowledged the proposal. The Automaton will vote FOR whitelisting status of FXS as soon as this tweet is broadcast.
Proposal to whitelist DUSK with 50,000 BNT co-investment
DUSK is a zero-knowledge proofs project focused on developing confidential smart contracts and security tokens. It is its own blockchain, although without a functioning product at present. The testnet is due for launch in February 2022. While projects-in-development can be risky token offerings, the DUSK token has some redeeming properties already, that make whitelisting considerations slightly more lenient. The distribution of the token is quite good, and is present on both BSC and Ethereum, where it has established existing liquidity pools with decent volume/liquidity. DUSK is a supply-capped token, and a standard erc20 from the OpenZeppelin library. In general, layer1 tokens have a tendency to skyrocket in value, which presents a considerable IL risk. However, the asking co-investment is relatively small, and the token’s volatility is extreme - which is positive from a fee-earning perspective. DUSK is available on the major CEX exchanges, which certainly lends confidence. The Dusk Twitter account has acknowledged the proposal, which has already caught the attention of its community. Reception seems positive. More importantly, the DUSK team has agreed to bootstrap the pool with $50,000 of DUSK tokens. The Automaton will vote FOR whitelisting DUSK, and asks that the DAO consider a higher-than-average swap fee (e.g. 0.5%) early in the lifecycle of this pool.
Proposal: Activate Comment Box and Graph plugins on Snapshot
Proposal: Activate Abstain Feature 1
The Automaton will vote FOR both of these updates to the DAO’s use of Snapshot, and its new features. The Abstain feature has been in discussion since the formation of the DAO in October of 2020, and its availability is an awesome relief.