Lybra DAO
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 almost doubled since the beginning of 2023, rising to over $25bn.
How To Submit & Vote On Lybra DAO Governance Proposals
Lybra DAO Governance takes place in three different locations,
Lybra Forums (Initial Discussion): https://forum.lybra.finance/t/welcome-to-lybra-forum
Snapshot (Off-Chain Proposals/Votes): https://snapshot.org/#/lybralabs.eth
Tally (Off-Chain Proposals/Votes): https://www.tally.xyz/gov/lybra-dao
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.
Where To Vote: Voting for Off-Chain proposals takes place on the Lybra Finance Snapshot page.
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.
Where To Vote: Voting for On-Chain proposals takes place on the Lybra Finance Tally page.
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
This can all be done by accessing the “Earn” section of the Lybra app.
Alternatively, users can purchase discounted esLBR by:
Buying up the dLP Bounty
Buying up the Vesting Penalty Bounty
Both these Bounties can be accessed on the “Bounty” section of the Lybra app. Not only do you receive a 40% discount but all LBR used to purchase the bounties is burnt forever, supporting the economics of the Lybra ecosystem.
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