State of Seamless: February 2024
January has been jam-packed with forward-looking proposals aiming to propel Seamless to the next phase of growth and innovation. Before we dive into these proposals, let’s take a look at Seamless’ overall performance for the month!
Protocol Performance
Seamless has experienced a -23.21% decrease in TVL within the past month, yet it still maintains a respectable $62.09m in TVL and commands second place as the largest protocol on Base and the overall largest lending protocol on Base.
Governance Proposals
[SIP-2] List wstETH as a collateral asset passes with a unanimous vote!
The highly anticipated proposal submitted by Lido Finance to get wstETH integrated as an asset on Seamless Protocol passed with flying colors — with over 1.78m votes cast! This proposal was successfully executed on February 2nd, unlocking wstETH as a supply/borrow asset on Seamless!
On-Chain Proposal:
[GCP-2] Seamless Community Grants Program (SCGP) + SCGP Nominee Voting concludes
The Seamless Community Grants Program (SCGP) and the introduction of esSEAM rewards represent a pioneering initiative by the Seamless Protocol to foster innovation and ensure the long-term alignment of its ecosystem. Launched against the backdrop of Seamless Protocol’s significant growth, with over 16,000 users since December 2023, this initiative aims to kickstart further expansion and engagement within the platform. The SCGP is designed to support projects that enhance the Seamless ecosystem, leveraging esSEAM — a unique, non-transferrable ERC-20 token that unlocks linearly over one year while maintaining governance rights — as a reward mechanism to encourage long-term commitment from its community members.
The pilot phase of the SCGP, overseen by a council of five community-elected members, targets the distribution of $100,000 worth of esSEAM to 4–6 innovative projects within areas such as liquidity solutions, governance, and market expansion. This process underscores a commitment to transparency and community involvement, setting the stage for subsequent funding rounds aimed at further solidifying the protocol’s foundation and fostering a robust, engaged community. Through the SCGP and esSEAM rewards, the Seamless Protocol is poised to enhance its position as a leader in decentralized finance, promoting a sustainable, community-driven approach to growth and innovation.
As projects begin to apply for grants, we will ensure to provide extensive coverage about them and their overall impact on the Seamless Protocol.
Snapshots:
[GCP-1] Formalizing Governance Processes for Seamless Protocol
On January 26th, the proposal to formalize the governance processes of the Seamless Protocol passed, receiving 508k SEAM voting in favor. This decision aims to eliminate the ambiguities surrounding the governance framework by introducing clear proposal categories, refining decision-making timelines, and improving the integration process for new DAO members. The amendments include establishing Protocol Changes Proposal (PCP) and Governance Changes Proposal (GCP) categories, setting an ideation phase to 5 days with an option for a 5-day extension, and implementing a structured method for integrating community feedback into final proposals. It also introduces a 2-day cooldown period before submitting the final proposal version for a Snapshot vote, alongside a mandatory simple majority for temperature checks due to Snapshot’s limitations on reading “delegated voting power” on the Base chain. A recommended cooldown period of at least 24 hours between the Snapshot vote and on-chain vote is advised to ensure thorough deliberation. Following its approval, updates will be made to the Gitbook documentation and forum categories, enriching them with detailed guidance and proposal templates to streamline future governance procedures.
Snapshot:
[GCP] Seamless DAO Treasury Diversification (under review)
The proposal outlines a strategic diversification of the Seamless Protocol DAO Treasury by allocating approximately 1% of its assets, equating to around $1,301,613.75 each (at the time of writing), into Origin Protocol’s yield-bearing tokens, OUSD and OETH. OUSD, a stablecoin, offers automated yield generation pegged 1:1 to major stablecoins and governed by OGV stakers since September 2020. OETH, launched in May 2023, focuses on ETH accumulation through liquid staking tokens and DeFi strategies, also governed by OGV stakers. This initiative aims to optimize yield generation and diversify the DAO’s investment portfolio, projecting an annual return ranging from $151,127 to $151,877, thereby enhancing treasury returns beyond lower-yield strategies currently in place.
Implementation of this strategy involves converting the allocated funds into USDC, USDT, DAI, or ETH and bridging them to the Ethereum Mainnet, with all transactions shared transparently with the community. Both OUSD and OETH investments require minimal active management, leveraging automated strategies for yield generation. The proposal underscores a shift towards more dynamic and higher-yield treasury management practices, offering the DAO flexibility and liquidity through lockup-free positions in OUSD and OETH. This strategic allocation represents a forward-thinking approach to treasury optimization, promising to bolster the Seamless Protocol DAO’s financial health and return on investment.
Forum Proposal:
[PGP-1] Seamless Protocol Platform Rewards Refresh
As the Seamless Protocol’s current reward period approaches its end on February 9th, 2024, the community has embraced PGP-1, a proposal for extending platform rewards using esSEAM. The decision, driven by the protocol’s successful retention of a top 2 DApp ranking, seeks to sustain its growth and TVL by continuing rewards for another 90 days with monthly reassessments. esSEAM will be the reward mechanism, chosen for its governance capabilities and a one-year unlocking period that aligns with the protocol’s long-term objectives.
Acknowledging the time-critical nature of reward continuity, PGP-1 bypasses the conventional Snapshot voting process in favor of an expedited on-chain vote, reflecting the proposal’s strategic importance. This fast-track approach, coupled with the planned Community Reward Review sessions, allows for agile governance and timely community engagement, setting a precedent for future responsiveness in the DAO’s decision-making processes.
On-Chain Proposal:
Forum Proposal:
See you next month!
That’s a wrap on this month’s edition of “State of Seamless.” It’s been a big month, and there’s plenty more where that came from. We’re all set to keep these monthly updates coming your way, so make sure you’re tuning in for the latest scoop on Seamless.
In the meantime:
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