This document proposes that a list of accepted Liquidity Positions starts to be compiled with the ultimate goal of including them as legitimate votable positions.
DeFi is the life line of any chain. And forcing governance tokens to be held in spot is not only behind the times, but also weakens the durability of the token itself. We should encourage the deepening of the ARB token liquidity, but be selective on what is a valid position.
Positions that deepen liquidity but don’t force the selling of the ARB token should be considered.
Protocols that are both native and migrated should be considered.
Track records of protocols need to be considered to avoid rug risk.
Steps to Implement
1. Compile the list
This list will need to grow with the development on the chain. So there needs to be adaptability as well as a team that will maintain this endeavour.
2. Solidify the voting venue
Without a certain voting venue, ie Snapshot, Tally, it becomes wasteful to implement the list if the venue were to change on a regular basis.
This would certainly be ongoing.
Time spent by the team, should be compensated in some regards, but the amounts I leave open for discussion.
This issue has been seen time and time again in other defi ecosystems. It would be good for us to get ahead of this and begin to build support. Let me know if you want help compiling the list.
With regards to voting venue: we should leverage a combination of both Snapshot and Tally
Snapshot for low-impact decisions that can be off-chain and sentiment checks before on-chain votes
Tally for all high-impact decisions and those that must be on-chain
All of the LP positions with $ARB are token holders who own governance rights. I don’t think selectivity is fair or legitimate to attach to voting rights. I would support using Flexible Voting.
As for the intention of rewarding LPs in a selective way, we could do an AIP asking for 365k $arb and use quadratic voting to decide which LP positions to reward. This is just an off the top of my head idea, but i like it better than being selective in this way about voting rights.
are you sayign that LP positions, such as ARB:ETH on uniswap, already is granting voting power?
i know people already “delegated” when they claimed, but what about the people that buy from the market to get voting power?
there was no intention to reward LPs in a selective way, just to be selective on which contracts were valid LPs to hold for voting power. but its not a bad idea to consider this, it would just be outside the scope of this AIP.
Yeah. I think my suggestion is that I wouldn’t support this AIP, but I appreciate its reasoning and general direction. My suggestion is only a half-baked alternative to consider if this one doesn’t pass.
We also have a reference implementation of a token that could be flexible for all projects. This could be used to create liquidity for the main Arbitrum pairs. In doing this, we would be able to have a liquid ERC20 token for trading, but still preserve the governance capabilities of ARB.
While I don’t disagree with the concept entirely in its current state this does not warrant an AIP.
If the purpose is to compile a list of LPs this can be done without an AIP. If the goal is to create a discussion around the viability of this there are better boards to do this other than #proposals (e.g. #general). There is very little substance in this proposal as is.
Aside from the act of compiling viable LPs not requiring an AIP this proposal already pre-assumes that LPs being allowed to vote is a valuable thing to the ecosystem. The merits of this should first be argued and proposed and, if a consensus is reached on that, a list of positions can be proposed along with a budget, grant request and a proper path for implementation.
Have you any thoughts on why it may or may not be a good idea to presume that LPs should be allowed to vote?
Perhaps some ideas on how to further this to what would be deemed worthy of the AIP tag?
This “AIP” proposal has been up for 24 days, as of now, for discussion and arguing the merits of making it into something of a full fledged AIP.
I could be wrong, perhaps semantics of titling are important, but I do not see it necessary, to move the discussion to general. If there is enough desire, thought, and input, as well as people willing to lend their expertise to this idea, then so be it. It can move forward. It hasn’t been put to a hasty snapshot vote.
Uniswap recently came up with “Uniswap Agora” that is running Delegate Race.
This is a good way for Delegates to create profiles, share their vision with the community and the community can delegate the votes to them.
I think a similar solution for Arbitrum with $ARB tokens will be really successful.
I see a lot of LP managers creating Delegate profiles such as DefiEdge who got recently voted into the LM Rewards Distribution of $OP Tokens with Uniswap Foundation.