Should LP token voting strategies be added to Snapshot?
- Add one LP token voting strategy
- Add two LP token voting strategies
- Add no LP token voting strategy
Which LP token voting strategy should be added to Snapshot?
GIP: 8 title: Enable LP token voting on Snapshot author: Anna George status: Draft type: Meta created: 2021-03-10
This is a continuation of the original post by @StefanGeorge, moving it to phase 2 as the proposal was well perceived in the Forum discussion and the technical requirements for implementation have been set up in the meantime.
Currently, the GnosisDAO Snapshot setup does not allow for LP token voting. This forces GNO token holders to decide between liquidity provisioning and governance participation.
This proposal suggests adding a LP token voting strategy to the Gnosis Snapshot space. Please vote on a) whether you want one / two / no strategy to be added to Snapshot, and b) which strategy/ies you would like to have added.
GNO locked up in liquidity pools can currently not be used for voting on Gnosis Snapshot proposals. This creates a tradeoff for GNO token holders: they can either earn yields OR participate in governance decisions. This is concerning for two reasons:
- Liquidity providers – usually long term holders – are taking a risk to ensure the token remains liquid on the market, enabling new community members to join by buying GNO without large slippage. They are providing a service that helps the GNO community and should not be punished with having no voting rights.
- As briefly touched upon above, it’s in the GnosisDAO’s interest to have large liquidity of GNO. Striving for increased liquidity whilst not allowing for LP token voting poses a conflict of interest:
The more capital is “locked up” in liquidity pools without voting being enabled, the less likely it is that GnosisDAO votes will meet the required threshold for proposals to pass.
At present, a large amount of GNO is already used for liquidity provisioning, demonstrating the relevance of this proposal:
While the Snapshot team developed strategies that enable LP token voting for all major AMMs, the UI limits the amount of strategies that can be deployed to four. As the Gnosis Space already has two strategies enabled (‘GNO balance’ and ‘Delegated GNO balance’), only up to two LP token voting strategies could be added at this point. There are some arguments in favour of only adding one new strategy for the time being in order to keep at least one strategy open for future use cases.
The full list of potential LP token voting strategies that are currently relevant to GNO & enabled by Snapshot is added as answer options in the poll above. Please decide on which - if any - strategy you would like to see enabled in the Gnosis Snapshot space. To review the discussion that has evolved since December please check the original post here.