Lybra Finance Docs V2
  • Background
    • Introduction
    • Welcome to the World of LSTs
    • Stablecoins on the Market
    • Interest-Bearing Stablecoin
    • Lybra, the Home of all LSTs
  • Overview
    • V2 Summary
    • Introduction to the Lybra Protocol
      • Lybra LST Vault & Pool Mechanisms
      • What is eUSD and How does eUSD Work?
      • What is peUSD and How does peUSD Work?
      • How can eUSD Stability be Ensured?
      • How to Maintain Fund Safety As Lybra Expands The Range Of LSTs That Can Be Used As Collateral
      • How does eUSD and peUSD work?
    • LBR and esLBR
      • Token Utilities
      • Protocol Revenues
      • Governance
  • Mechanisms
    • Minting
    • Rigid Redemption and eUSD Price Stability
    • Liquidation
  • Tokenomics
    • LBR Tokenomics
      • Token Allocation
      • Token Utilities
      • esLBR
        • Staking & Yield Boost
        • esLBR Advanced Vesting
        • dLP Design
  • Governance
    • Lybra DAO
    • Lybra Wars
    • Lybra Grants for Ecosystem Advancement & Development
  • supplement
    • Roadmap
    • FAQ
    • Contracts
    • Audits & Bug Bounty
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  • How To Submit & Vote On Lybra DAO Governance Proposals
  • The Different Voting Process For Off-Chain & On-Chain Proposals
  • a) Off-Chain Proposals (On Snapshot)
  • b) On-Chain Proposals (On Tally)
  • How To Accumulate Voting Power For The Lybra DAO

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  1. Governance

Lybra DAO

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Last updated 1 year ago

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DAO stands for Distributed Autonomous Organization. The goal of DAOs is to decentralize power by providing a mechanism for communities of people to vote on key decisions that are then executed automatically on the blockchain. Typically in a DeFi project, this will be one via governance tokens. Holders of esLBR tokens can submit proposals and then vote on them, with their voting power proportional to the amount of governance tokens they hold. DAOs have proved to be a successful model and adoption of them is accelerating fast, with assets held in DAOs having , rising to over $25bn.

How To Submit & Vote On Lybra DAO Governance Proposals

Lybra DAO Governance takes place in three different locations,

The Different Voting Process For Off-Chain & On-Chain Proposals

a) Off-Chain Proposals (On Snapshot)

Here’s how Off-Chain Proposals work:

Definition: Off-Chain proposals are proposals where there isn’t a contract or codebase already written and set to be deployed by Time Lock. DAO Proposal 1 will be an Off-Chain proposal.

Examples: Examples of Off-Chain proposal could include:

  • A proposal offering options on how Lybra should address V1 non-migrated LBR tokens. Option A/B/C/Abstain)

  • A proposal for Lybra to accept other LST’s as collateral types to mint peUSD or eUSD, where the minting vault contract is not included in the proposal. (Y/N/Abstain)

Requirements To Raise A Proposal: You will need $10k worth of esLBR to submit an Off-Chain proposal.

Requirements To Vote On a Proposal: You will need a minimum of 1 esLBR to vote on an Off-Chain proposal. 1 esLBR = 1 vote. LBR will need to be staked as esLBR prior to the vote in order to be eligible. No changes after the proposal creation will be taken into account. Cancellation, unstaking, etc will affect only future proposals.

Requirements For A Proposal To Pass: Off-Chain proposals must gather at least 1M worth of esLBR votes to pass. The option with the majority of votes is approved.

Voting Timeline: The timeline for Off-Chain proposals will be as follows:

  • A 1-hour delay after proposal creation before voting starts.

  • A 7-day voting period.

  • Result announced once voting concludes.

NOTE: Subsequent off-chain actions will be required to implement the decision.

b) On-Chain Proposals (On Tally)

Definition: On-Chain proposals are proposals where there’s a pre-written contract or codebase ready for deployment via Time Lock.

Examples: An example of an On-Chain proposal could include:

  • A proposal for Lybra to adjust the protocol minimum Collateral Ratio from 160% to 120%, modifying specific parameters, and setting a Time Locked contract to execute it.

Requirements To Raise A Proposal: You will need 100k esLBR to raise an On-Chain proposal.

Requirements To Vote On a Proposal: You will need a minimum of 1 esLBR to vote on an On-Chain proposal. 1 esLBR = 1 vote. LBR will need to be staked as esLBR prior to the vote in order to be eligible. No changes after the proposal creation will be taken into account. Cancellation, unstaking, etc. will affect only future proposals.

Requirements To Pass A Proposal: As default, Tally votes require a minimum of 4% esLBR of the total LBR circulating supply to pass. We are currently reviewing whether to amend this voting threshold and further updates will be provided prior to the first On-Chain proposal going live.

Voting Timeline: The timeline for On-Chain proposals will be as follows:

  • A 2-day delay after proposal creation before voting starts.

  • A 7-day voting period.

  • Result announced once voting is complete.

  • A 2-day Time Lock before contract activated

  • Contract activation automatically actions the outcome of the vote.

How To Accumulate Voting Power For The Lybra DAO

There are 2 ways to accumulate voting power to influence decisions made by the Lybra DAO:

a) Accumulate esLBR

esLBR is the governance token that drives the voting mechanisms in the Lybra DAO. esLBR can be generated by:

  • Minting eUSD or peUSD

  • Providing liquidity to LBR/ETH, eUSD/3CRV, peUSD/USDC pools

  • Staking LBR

Alternatively, users can purchase discounted esLBR by:

Lybra Forums (Initial Discussion):

Snapshot (Off-Chain Proposals/Votes):

Tally (Off-Chain Proposals/Votes):

Where To Vote: Voting for Off-Chain proposals takes place on the Lybra Finance .

Where To Vote: Voting for On-Chain proposals takes place on the Lybra Finance .

This can all be done by accessing the “Earn” section of the .

Buying up the

Buying up the

Both these Bounties can be accessed on the “Bounty” section of the . Not only do you receive a 40% discount but all LBR used to purchase the bounties is , supporting the economics of the Lybra ecosystem.

https://forum.lybra.finance/t/welcome-to-lybra-forum
https://snapshot.org/#/lybralabs.eth
https://www.tally.xyz/gov/lybra-dao
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