GFX Labs Delegate Communication Thread

[Temperature Check] HIP0: Hop Mission Statement & Success Framework
Summary: This proposal establishes a mission statement for Hop governance that emphasizes security, trustlessness, and community ownership, as well as a focus on market share of monthly volume as the primary indicator of protocol success.

Recommendation: Vote Yes. This is the first small step on a long journey for Hop governance. HIP0 will likely be amended or build upon over time, but it provides a needed push into a specific direction. We are very excited to be here at the beginning of Hop’s journey, and feel lucky to have the opportunity to contribute.

[Temperature Check] HIP1: Deploy a HOP Bridge
Summary: This proposal would deploy a bridge for the HOP token on Hop’s infrastructure. Hop Labs is willing to serve as interim bonder.

Recommendation: Vote Yes. While it’s unlikely HOP will have bridging needs for a while, no liquidity is needed to be sourced as it is Hop’s native token. We do caution, however, that it not be prioritized ahead of other technical work that could be accretive to the protocol. Additionally, the ability for the protocol to mint/burn HOP on any of the chains Hop supports presents additional security challenges, and should only be deployed when the highest level of confidence has been achieved.

[Temperature Check] HIP2: Explore Private Sale Legal Options
Summary: This proposal would authorize the Hop Foundation to explore what is required legally to perform private sales of HOP.

Recommendation: Vote Yes. Further sales of HOP are likely needed for the protocol to secure stable funding over the medium to long term. Note that this requires no budget and will not formally engage any legal representation. We would support pre-authorizing the Hop Foundation to perform this kind of activity without a vote in the future.

General Notes: These represent an important milestone in the nascent Hop governance. It will be important, however, for future proposals to include as many relevant details as possible so that every proposal is as clear as an “ELI5.” We would also encourage a pre-determined RFC period for proposals before they move on-chain, even if they are simple temperature checks. This will allow time for discussion and a chance for authors to reject or incorporate feedback into their proposals.

Congratulations, Hop governance!


1 Poll Ending August 27, 2022

[Temperature Check] HIP 3: Hop Governance Incentives
Summary: This poll is to conduct a temperature check of a program to incentivize successful governance proposals, subject to some limitations and exclusions.

Recommendation: Vote Yes. This program is aimed at increasing governance participation by any stakeholder in the Hop ecosystem. GFX Labs authored this proposal.

1 Poll Ending September 10, 2022

Proposal: Fast Bridging Support For SNX And sUSD
Summary: This poll is to conduct a temperature check of adding fast bridging support for SNX and sUSD between Ethereum and Optimism. Initial liquidity would be seeded by Synthetix, with the expectation of Hop incentivizing the pairs with OP and possibly HOP.

Recommendation: Vote Yes. Synthetix is one of – if not the – most important protocols on Optimism. Becoming the bridge of choice for Synthetix assets to move between Optimism and Ethereum would further position Hop strategically as a major bridging provider between the two. Synthetix’s willingness to seed bonders on L1 also lowers the cost.

1 Poll Ending September 11, 2022

[Temperature Check] HIP 4: Delegate Incentivization Trial
Summary: This poll is to conduct a temperature check of a trial delegate incentives program. The program would compensate delegates with HOP tokens for time and effort involved in governance. This program is designed to sunset after 6 months in order to force Hop governance to evaluate its effectiveness and the parameters selected.

Recommendation: Vote Yes. GFX Labs co-authored this proposal with @francom and @fig.


1 Poll Ending September 14, 2022

[Temperature Check] HIP 6: Deploy a Hop Bridge to Arbitrum Nova
Summary: This proposal is to assess community support for Hop Protocol to support Arbitrum Nova. No specific assets are named in the proposal.

Recommendation: Vote Yes. Hop’s position as an early and systemically important piece of infrastructure on Arbitrum One should be repeated with Arbitrum Nova. From a risk-reward standpoint, it is better to be early and established on different chains than to wait to see traction and then attempt to enter a busy market. Given Arbitrum Nova represents an attempt to segment the user base of L2s, this differentiation will also provide Hop (and others) with important information about the various branches of industry, how to serve them, and how to create value to tokenholders from that service.

1 Like

1 Poll Ending September 25, 2022

[Temperature Check] HIP 7 - AMM and Bonder Liquidity Incentives
Summary: This proposal would provide 2,000,000 HOP for LP incentives and 800,000 HOP for bonder incentives, both on a monthly basis. LP incentives are across four assets: ETH, USDC, USDT, DAI.

Recommendation: Vote Yes. Emissions to secure capital pools for LPs and bonding are appropriate. GFX does believe, however, that in the future there could be a better structure than incentives denominated in a fixed amount of HOP. An arrangement such as guaranteeing a floor for returns would have the benefit of only spending HOP when returns on LPing/bonding were low, as well as providing stability and predictability to those participants in the case of a price collapse in HOP.

1 Poll Ending October 10, 2022

Hop Proposal Bundle: HIPs 0-7; SNX/sUSD Bridging Support
Summary: This bundle of proposals includes all eight of the previously passed temperature checks. Please refer to each for details.

Recommendation: Vote Yes. GFX Labs supported all eight of these proposals at earlier stages, and authored two of them.

1 Poll Ending October 26, 2022
HIP 8: Direct Velodrome veNFT votes to a WETH/HOP pool
Summary: This proposal would authorize the Hop Community Multisig to alter its prioritization of pools on Velodrome (on Optimism). Because this is merely a social consensus, this vote is only intended to go as far as Snapshot.

Recommendation: Vote Yes. Now that HOP is available on Optimism, this seems acceptable. It also makes sense to allow the multisig leeway in how best to manage Hop interests with regard to Velodrome pools.

1 Poll Ending November 6, 2022

[Temperature Check] HIP 9: Should the Hop Community Fund a Grants Program?
Summary: This proposal would authorize a 5-person committee to create a program for grants. Individual grants would not exceed 150,000 HOP.

Recommendation: Vote Yes. An easy way to provide small grants without extended governance timelines or using up too much bandwidth is necessary for the Hop ecosystem.

Disclosure: GFX Labs would serve as one of the 5 members of this committee

1 Like

1 Poll Ending November 18, 2022

HIP 11: Fast Bridging Support & Co-Incentives For sUSD and SNX

Summary: This proposal would set HOP incentives for sUSD and SNX pools on Optimism at the equivalent of $5,000 per month.

Recommendation: Vote No. It’s not clear yet that any additional HOP is needed to subsidize SNX/sUSD. At the time of writing, the SNX liquidity pool on Optimism already appears to carry >30% APR while already having $1.3m in liquidity, which is similar to the DAI pool for the same chain. The sUSD pool is not yet active, but we would assume sUSD would be even easier to bootstrap than SNX.

We do believe this would be appropriate to revisit in the future if liquidity is difficult to maintain for either of these assets.

1 Poll Ending November 28, 2022

HIP 10: Deploy a Hop Bridge to zkSync
Summary: This proposal would authorize deployment of a Hop bridge to zkSync.

Recommendation: Vote Yes. This has been requested by the zkSync team, and technical requirements already scoped/communicated with Hop Labs. This expands Hop to another rollup, and fast transport between it and other supported chains extends the network effects and usefulness of Hop.

1 Like