Liqwid DAO Interim Governance

At Liqwid Labs we feel strongly that building a community-led DeFi protocol must be reflected in all aspects of system operations. Community contributions (content, infrastructure, product), permissionless governance participation and ownership should represent this bottom up vision to the extent possible before the launch of on-chain community governance. To achieve our founding vision of an open protocol capable of advancing in completely novel ways it’s crucial that the Liqwid ecosystem transition to full stewardship of the protocol and its development, including DAO treasury spending.

The Liqwid ecosystem is empowered to steward the protocol through smart contract-based voting and governance. This is a key step in building a trustless money market protocol supporting open collaboration and governance participation amongst community members. To this end we have developed the Agora governance module; once deployed with the v1 smart contracts on mainnet all updates (contract parameters, whitelisted assets) will originate from LQ token holders staked in Agora.

Before the launch of complete smart contract-based governance the Liqwid Labs core development team is launching a temporary governance structure. A Liqwid DAO category has been created in the Liqwid Discord to discuss active governance proposals and temperature checks on potential future proposals. Any important governance decisions pre-launch that require attention in the near term may be subject to a formal stake weighted community vote held at the time of Agora launch.

In tandem with the Discord category, we started a Liqwid Governance Discourse forum with categories for governance proposal discussion, temperature checks, and all-around DAO discussion. We want to stress the point that this approach to governance is an early, temporary solution to community governance. This is the first form of official proposal voting for “governance-lite’’ proposals. Governance proposals for larger scale smart contract parameter changes must also go through the official Agora-powered governance interface once it becomes available at launch. If a proposal submission to the Discourse forum (located in the “Proposals” category) includes a significant protocol change, it will be treated as a “temperature check” and not a conclusive, immutable vote, so please post your idea in that category to commence discussion. We advise you to wait for the Agora powered governance interface to make proposals with large-scale protocol updates or involving the treasury. The Liqwid DAO must calculate the weight of each vote through the amount of LQ staked in the Agora governance module. This functionality is not viable through Discourse.

The first proposal going through the interim governance structure is active, so be sure to join in on the discussion and vote on the proposal while you get all caught up with Discourse. Related to the Liqwid proposal 001, a separate proposal to add LQ liquidity incentives to the LQ/ADA pool on SundaeSwap is in active vote on their governance forum.

When Agora is deployed the interim governance structure will be replaced with smart contract-based governance functionality including; LQ stake-weighted voting, proposal submission templates, liquid democracy (delegated voting features), vote quorum, token thresholds, proposal execution thresholds, and time lock before successful proposals are implemented. When Agora governance is implemented, a comprehensive Frequently Asked Questions (FAQ) guide will be made available.

Stay tuned on the Discourse governance forum and Discord #gov-discussion channel for further updates!

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Liqwid Finance

Liqwid Finance

Liqwid is an open source, algorithmic and non-custodial interest rate curve protocol built for lenders, borrowers and developers.