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GIP: 22 title: Partnership Agreement Between BalancerDAO & GnosisDAO author: Karpatkey status: phase-2 type: Meta created: 2022-01-10
The partnership aims to align the interests of GnosisDAO and BalancerDAO, by increasing the collaboration between both organizations. The technical teams of both DAOs would carry out developments in the best interest of both organizations, such as completing Stage 3 of the Balancer-Gnosis-Protocol integration, so that Balancer users are able to place trades in GPv2 via their UI. Traders on Balancer would then always get the best prices available on-chain -or better- if CoWs are found, eventually leading to better prices for all traders of CowSwap as trades are batched and a higher trade frequency leads to increased chances for coincidence of wants.
Also, joint marketing efforts will be made, together with a token swap, to align governance interests.
Even though GnosisDAO and BalancerDAO have common interests, their current level of collaboration and integration isn’t enough to achieve their common goals. A partnership agreement would be necessary to increase the depth and breadth of their joint efforts, improving coordination and resource allocation to common projects.
This improvement proposal has already passed phase 1 in both protocols:
We believe that achieving a greater synergy between BalancerDAO and GnosisDAO would significantly strengthen both organizations, allowing for a more efficient planning and execution of their joint projects, backed up by healthier treasuries, with increased token diversification.
Both parties agreed that they intend to contribute the following towards this partnership:
Joint work of technical teams of both DAOs to carry out developments in the best interest of both DAOs, such as completing Stage 3 of the Balancer-Gnosis-Protocol integration, so that Balancer users are able to place trades in GPv2 via their UI. Traders on Balancer will then always get the best prices available on-chain -or better- if CoWs are found. This will eventually lead to better prices for all traders of CowSwap as trades are batched and a higher trade frequency leads to increased chances for coincidence of wants.
To ensure both entities will profit from each other’s reach and marketing or sales activities, we will do co-branded communication & services where useful.
To align governance interests, a Token Swap between the two organizations is initiated as part of this agreement.
200,000 BAL from the Ecosystem Fund would be exchanged for the equivalent USD value of GNO in equal proportions from DAO Treasury, using the 30 day smooth moving average price at the time that voting ends.
Both organizations commit to holding the received assets for a period of at least 1 year. No on-chain logic will be implemented to ensure this.
Gnosis and Balancer have worked together for the past years. The protocols have integrated Cowswap with Balancer V2 to enable better gas prices and UX, MEV protection, no gas fees for failed transactions, better prices due to the optimized pool settlements and use of the Balancer v2 single vault architecture.
The Partnership is open-ended and does not have an expiry date.
The partnership is managed by representatives of the organizations directed by the respective governance processes of the organizations. In the case of this partnership, there are 2 representatives for each organization.
Both organizations can at any moment terminate the agreement through their respective governance systems.
Communications around the Partnership
A Partnership announcement blog will be created within the 2 weeks following the agreement date.
To ensure operational effectiveness, a monthly call will be set up with at least one representative of each entity
Both DAOs acknowledge that DAO agreements are inherently unpredictable and irreversible and agree to this initial partnership agreement.
This proposal is in phase 3, please vote on Snapshot!
Balancer would transfer 200,000 BAL and Gnosis would transfer 9051 GNO from the daughter safe.