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Governance Reports

Bi-Weekly Governance Report Week 8 & 9 – 2024

April 1, 2024

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Over the past 14 Days, we at Simply Staking have voted on 32 Proposals across all the networks we validate within the Cosmos Ecosystem.

The report below will give more insight into how we voted and provide more detail on some of the proposals.

Table of Contents

  • Sommelier #131: Community Pool Funding of SOMM Staking Rewards until June
  • Osmosis #731, #732, #735: Enabling of Superfluid Staking for USDC, USDT, WBTC Pools
  • Osmosis #736: Enable Superfluid Staking in Lower Fee equivalent pools of existing approvals
  • OmniFlix Hub #31: v3 Software Upgrade
  • Sommelier #125, #126, #127, #136: Authorisation of New Cellars

We hope you find the below insightful & please consider delegating your assets with our secure infrastructure to help support our journey within the Ecosystem!

Sommelier #131 — SOMM Staking Rewards Subsidy

The proposal aims to renew the staking rewards subsidy from the community pool for approximately 4 months, until June 1, 2024. During the previous subsidy period, the Sommelier protocol successfully boosted TVL to $70M and generated $140,000 in staker fees. With the imminent launch of multichain vaults, an increase in TVL is expected, potentially resulting in $500,000 in annual staker fees (based on current prices of SOMM tokens). However, the current staking rewards rate may not be competitive as compared to other networks.

The concept of using the Community Pool to subsidize staking was first introduced during the v5 upgrade to the network back in February of 2023.

The proposal suggests an interim subsidy until key developments, including the staking rewards module and Ethos integration, are completed. Ethos introduces alternative security models, allowing for a redesign of reward mechanisms.

The funding required for this subsidy is up to ~3.7M SOMM, representing ~3% of the current community pool.

This proposal emphasizes the importance of maintaining a strong staking base for the Sommelier network’s security and operation. We at Simply Staking had voted YES on this proposal.
 

Osmosis — Enabling of Superfluid Staking for USDC, USDT, WBTC Pools

In the past 2 Weeks, Osmosis added 3 new assets (and their subsequent pools) to their Superfluid Staking portfolio to gain more traction.

Superfluid Staking (SFS) allows users in an LP position to stake a portion of their underlying OSMO assets locked in the pool to a validator to earn a higher APY than a traditional pool.

We wrote an article on Superfluid Staking for those interested in learning more!

Osmosis #731 — Superfluid Staking for USDC

The following pools now have Superfluid Staking enabled:

Osmosis #732 — Superfluid Staking for USDT

The following pools now have Superfluid Staking enabled:

Osmosis #733 — Superfluid Staking for WBTC

The following pools now have Superfluid Staking enabled:

We at Simply Staking voted YES on all of the above proposals, we trust in the security and stability of all of the assets and therefore deem them worthy to use SFS and be part of Osmosis Governance.
 

OmniFlix Hub #31: v3 Software Upgrade

The network successfully upgraded to v3 after the passing of Proposal #31. All Validators upgraded the network within a short time on the 22nd of February.

The v3 Upgrade brought CosmWasm to the Omniflix network.

CosmWasm brings easy deployment of Smart-Contracts to Cosmos-based Chains. Other notable chains featuring CosmWasm are Neutron, Kujira, and Juno. 

Sommelier — New Cellars

Sommelier has been the most active network in our Governance reports recently.

The chain which now boasts over $70M in TVL, has been launching new cellars to boost their TVL even more.

In the past 2 Weeks, Sommelier have added the following Cellars to their Portfolio:

  • Real Yield USD 2.0
  • Yield Maxi USDT
  • Real Yield USD on Arbitrum
  • RYETH 2.0
  • Turbo rsETH
  • Turbo ezETH

Let us dive into the new Cellars:

Real Yield USD 2.0

This Cellar aims to slowly migrate liquidity from the existing RYUSD to the new one. RYUSD 1.0 will take RYUSD 2.0 as a position. This comes as there have been many optimisations to the Cellar Architecture since the launch of the initial cellar (RYUSD 1.0).

Whitelisted assets:

  • USDC
  • DAI
  • USDT
  • SDAI

Whitelisted protocols:

  • Aave V2 / V3
  • Morpho Aave V2 / V3
  • Morpho Blue
  • Uniswap V3

Yield Maxi USDT

This cellar is a collaboration between IntoTheBlock and Seven Seas. The Yield Maxi USDT is a USDT-denominated vault that maximizes yield by allocating to a growing set of stablecoin strategies.

Whitelisted Assets:

  • USDC
  • USDT
  • crvUSD
  • sDAI

Whitelisted Protocols:

  • Aave
  • Compound
  • Balancer
  • Curve/Convex

Real Yield USD on Arbitrum

This is based on the Real Yield USD Cellar. The Cellar Strategists are moving to bring stablecoin yield-optimising strategies to L2s. This starts with Arbitrum.

The Cellar will be exposed to Uniswap V3, Aave V3, and Compound V3.

Real Yield ETH 2.0

This Cellar aims to slowly migrate liquidity from the existing RYETH to the new one. RYETH 1.0 will take RYETH 2.0 as a position. This comes as there have been many optimisations to the Cellar Architecture since the launch of the initial cellar

Whitelisted Assets:

  • WETH
  • wstETH
  • stETH
  • rETH
  • cbETH
  • swETH
  • ETHX
  • osETH

Whitelisted Protocols:

  • Aave V2 / V3
  • Morpho Aave V2 / V3
  • Morpho Blue
  • Uniswap V3
  • Balancer
  • Curve

Turbo rsETH & Turbo ezETH

Kelp DAO and Renzo Protocol are two of the largest liquid restaking token providers. Sommelier have identified an opportunity to bring their strategies to the KelpDAO and Renzo Protocol user bases.

We wrote about KelpDAO and Renzo in our latest article exploring restaking and liquid restaking token providers.

The Turbo rsETH cellar will accept WETH and rsETH as deposit assets, and take exposure to the following protocols:

  • Uniswap V3
  • Morpho Blue
  • Balancer
  • Curve

The Turbo ezETH cellar will accept WETH and ezETH as deposit assets, and take exposure to the following protocols:

  • Uniswap V3
  • Morpho Blue
  • Balancer
  • Curve

We at Simply Staking voted YES on all of the Cellar additions that Sommelier have brought forward. We admire their drive to provide users with simplified yield-optimising strategies.