IIP-XX: FLI Metagovernance Vote Delegation to Multisig

status: Proposed
author: Matthew Graham (@Matthew_Graham)
created: 2021-08-12

Simple Summary

Delegate FLI voting power for COMP and AAVE to a multisig to a 2 of 3 multisig controlled by @Dylan, @puniaviision and @GregDocter, as per IIP-49.

‌Multisig: 0x10F87409E405c5e44e581A4C3F2eECF36AAf1f92

This is for the purpose of executing metagovernance votes according to the current process.

Abstract

‌Today, FLI metagovernance influence is not being used. As governance tokens lay idle within the FLI products, Index Coop could be utilising their voting influence.

This IIP proposes FLI metagovernance votes for Compound and Aave be delegated to the same multi-sig as DPI.

This IIP does not propose any other changes to the metagovernance process specified here 2. Nor does it address Snapshot metagovernance (IIP-33 2).

This proposal merely addresses how the Index Coop executes votes. The outcome of metagovernance votes would remain decided by INDEX holders.

Motivation

Whilst liquidity incentives exist on Compound and Aave, the FLI products shall accumulate governance tokens. Index Coop can enhance its metagovernance influence by directing the voting rights of these governance tokens to the multi-sig address detailed above.

This is a carbon copy of the DPI metagovernance initiative and with an expanding FLI offering there will likely be many votes spread out across the FLI vaults. At the time of writing this is 1,060 votes. Although these governance tokens are not likely to remain within the ETH2x-FLI and BTC2x-FLI products. When there are many FLI products and each product has a bunch of votes, these votes can be consolidated to the DPI multi-sig and Index Coop captures its true metagovenance influence.

With Index Coop products to be listed on Aave and Compound in time, each vote matters.

Vision

This proposed change is a step towards the larger consolidated meta-governance vision being put forward.

Specification

Delegate FLI voting power to a multi-sig to enable Set-contributors to execute metagovernance votes in accordance with the current metagovernance process.

To implement this requires the following:

  1. INDEX multisig to delegate COMP and AAVE via the Governance module to 0x10F87409E405c5e44e581A4C3F2eECF36AAf1f92
  2. 2 of 3 multisig executes metagovernance votes according to the current 2 metagovernance process.
  3. Delegate other protocol voting power as needed. Such updates will be announced.

Voting

FOR:

Delegate FLI products metagovernance voting rights via the Governance module to 0x10F87409E405c5e44e581A4C3F2eECF36AAf1f92.

AGAINST:

DO NOT delegate FLI metagovernce voting rights.

Copyright

Copyright and related rights waived via CC0.

5 Likes

Strongly FOR this IIP, all tokens across all of the product line should be available to the INDEX holders for meta governance decisions.

1 Like

Sharing context:

  • I do not think this will reduce time spent on executing meta-gov votes, as coordination costs remain
  • I do think this is time-neutral

That is → after the initial delegation, no additional transactions would need to be made to execute COMP // AAVE votes (beyond what is already done today to execute metagov votes)

That’s a mouthful ^

However, confirmation on point 2 would be useful :raised_hands:

1 Like

Hey @gregdocter,

You are definitely correct. That was a cut and paste job, that should have been edited out.

I’ll tidy up the proposal with an amendment.
:slight_smile:

Thank you heaps for the feedback and flagging the error.

1 Like

100% – i figured :stuck_out_tongue_winking_eye:

i do still want to figure out whether I am right or wrong about this being “time-neutral”

Deleted my previous post as it looks like some of the COMP has been claimed so there is ~1000 COMP sitting in the ETH2xFLI contract which can be used for voting.

1 Like

Hi All,

Just to be sure the information is really transparent and easily accessible. :slight_smile:

Details on ETH2x-FLI are here 943 COMP tokens at time of writing.

Details on BTC2x-FLI are here 117 COMP tokens at time of writing.

Hi @gregdocter,

I think with DPI being list on Compound being just around the corner, then it is something better done sooner rather than later.

To my knowledge we are not currently working on bettering the FLI range or the next product to be built is DATA. I would like to think this task can be realistically completed during August 2021.

COMP has one of the most active governance in DeFi.
Strongly FOR on this IIP.

2 Likes

Totally – i’m not questioning the timing of this proposal :+1:

I am wondering whether, and how much, extra work this adds to executing metagov votes.

My assumption is “none” but wanna be sure, b/c executing these votes does take time.

1 Like

Hi @gregdocter, @Pepperoni_Joe,

May I please have an IIP Number assigned, a discord discussion channel created and a Snapshot vote scheduled for Monday 16th August 2021.

Thank you in advance.

@ncitron / @cedrick / @Lavi - just following up on @gregdocter’s comments to confirm if this proposal is feasible and doesn’t require any further consideration before going to IIP?

1 Like

Executing this proposal will have some upfront work, but will add no additional recurring work. The execution of this proposal will require several multi-sig transactions and the deployment of one contract (just a new deployment, no new code needed). Here is a brief overview of the multi-sig transactions and contract deployments required:

  1. Deploy a new GovernanceAdapter extension contract
  2. Call addModule on BaseManager and pass in the GovernanceModule address
  3. Call addAdapter on BaseManager and pass in GovernanceAdapter address
  4. Call addAllowedCaller on GovernanceAdapter and pass in a trusted caller (probably the IC multi-sig)
  5. Call delegate on GovernanceAdapter and pass in the CompoundBravoGovernanceAdapter address and the metagov multi-sig to delegate the votes to.

Note: these steps must be redone for each FLI product.

7 Likes

While I can see the benefit of boosting the coops metagoverance power, I have concerns about the work vs benefit.

At the moment we have ~ 1,060 in FLI products and DPI has 42,610.

So, we would currently generate a 2.5% increase in voting power.

However, my understanding is that the planned implementation for FLI will result in much smaller balances of COMP in each product.

So while the Dev lift may be small, I really don’t see how it can be considered a high priority vs everything else we are doing (unless it’s used as an on-boarding / training exercise for a new Dev).

The benefit of setting the right structure as early as possible means all future products are built and launched with a lesser need for amendments at a later date.

At the moment the COMP number may be low, 20 leveraged products later it may not be.

If we are seeking to list DPI on Compound, every vote counts and we don’t want to risk leaving votes on the table where ever possible. We also want to maximise the metagovernance value proposition of INDEX tokens as best we can.

With no new products under development (post DG2) it feels like a great time to build out the best possible base for launching future products. The logic flows by getting this right now, we avoid having to amend many, many leverage products later. Thus, the most time efficient implementation and therefore cost effective strategy, is to incorporate this change before rolling out new products.

To me it feels and reads like low hanging fruit from a technical perspective and it is a very nice value add to the Index Coop community.

2 Likes

Hi @Pepperoni_Joe,
May we progress to snapshot for the 23rd August ?

Yea this seems like a giant PITA for product and engineering with little benefit.

Agreed. As is, this proposal will only increase our COMP power by ~4%, and if IIP-73 is passed, it will be even less.

Thank you for your input @ncitron and @puniaviision.

@Pepperoni_Joe please don’t proceed to snapshot.

Thank you for all the feedback team :slight_smile:

3 Likes