Seamless Protocol Governance

Summary This proposal introduces a one-time migration bonus for users of ILM v1—specifically 1.5x and 3x ETH Long ILMs—who were adversely affected by the forced wind-down of the legacy leverage platform. The bonus aims to recognize users who suffered directional downside due to the deprecation and incentivize their continued participation in the Seamless Morpho vaults. Background and Context With the approval of GP-9, the Seamless DAO officially entered its “platformless” era—transitioning away from its legacy Aave-based architecture and moving toward building Vaults on Morpho. This shift enables Seamless contributors to focus on innovation and product development, most recently demonstrated by the launch of Leverage Tokens. A key component of GP-9 was the structured sunsetting of the Legacy Platform, which began on March 28, 2025. As part of this process, Seamless ILM v1 strategies were also wound down. On April 11, leverage on all ILM vaults was set to zero, effectively unwinding any remaining active positions. This process had minimal impact for most ILM users: wstETH/ETH ILMs were delta-neutral and continued accumulating ETH. cbBTC ILMs were largely flat or in profit. ETH Short ILMs likely ended in the money due to the broader ETH downtrend. However, the outcome was different for users in ETH Long ILMs (1.5x and 3x). These users may have been forced to close positions while at a net loss or were prevented from holding through a potential rebound. GP-9 originally proposed the concept of a “Migration Bonus” for ILM v1.0 users: “Since Leverage Tokens are not yet available but on the near-term horizon in the coming month or so, I suggest offering a migration bonus (potentially an airdrop) for loyal ILM v1.0 users who redeposit into Seamless Morpho Vaults until Leverage Tokens launch. The DAO can determine the details through discussion or a future vote.” Given the above, this proposal aims to formally provide a Migration Bonus to affected ETH Long ILM v1 users, recognizing the opportunity cost incurred during the transition and encouraging continued engagement within the Seamless products ecosystem. Proposal Details Eligibility Criteria To qualify for the migration bonus, users must meet all of the following conditions: 1. Impacted ILM Participation * Held a position in either the 1.5x or 3x ETH Long ILM on the wind-down announcement date (March 28, 2025). 2. Seamless Vaults on Morpho Participation * Deposited in any Seamless Vault on Morpho at the time of a snapshot (July 3, block block 32357648). 3. Claim Submission * Submit a claim via a Google Form during the application window (1 month after this proposal is approved) . 4. Wallet Identity Lock * The reward is only distributed to the same wallet that held the ILM position to prevent fraud or identity theft. Reward Framework Budget Cap: Up to $20,000 USD (in USDC), sourced from the Reserve Factor wallet. Distribution Model: * Rewards are distributed pro-rata based on the TVL (Total Value Locked) of eligible ETH Long ILM positions at the time of wind-down. * If total eligible submissions are below the total eligible TVL/wallets, then the budget will scale proportionally and only the budget related to valid claim amounts will be distributed (i.e. less than $20k USD). Application Process 1. Seamless Core Contributors will launch an application collection once this proposal is approved by the DAO. An application form will be available for one month after the proposal is approved 2. Submissions will be verified via on-chain data using Dune or similar tooling to prevent gamification and malicious activity. 3. Rewards will be sent to the eligible original wallet addresses. Next Steps 1. DAO to discuss and approve this proposal via Snapshot. 2. Seamless Core Contributors to launch an application process. 3. DAO to vote on-chain to distribute a migration bonus to eligible wallerts.

Summary This proposal suggests that the Seamless DAO allocate $4,600 in SEAM over 4 epochs (epochs run 1 week long) to bribe voters on Spectra to vote on Seamless WETH Pool, resulting in SPECTRA emissions being allocated to Seamless Pools. The goal is to attract more liquidity to the underlying Seamless Vaults via the Pools deployed on Spectra, helping Seamless 1) establish a strong presence in the growing Yield Token Splitting market; 2) drive more capacity into Seamless WETH Morpho vault and therefore the Leverage Tokens. About Spectra Spectra is an EVM-centric decentralized protocol that splits yield on yield-bearing tokens (PT/YT). Spectra operates across multiple chains and provides opportunities for protocols seeking to deepen their liquidity by offering fixed rate yield (PT) and variable yield/points (YT) products to DeFi users. More details can be found here: https://www.spectra.finance/ Context and Motivation Seamless has recently launched two Pools on Spectra pointing to the Seamless Vaults: Base: USDC Pool Base: WETH Pool Deploying on Spectra is part of a broader strategy to tap into the Yield Token Splitting market while fueling liquidity for Seamless's native leveraged and structured products. To bootstrap liquidity and enhance visibility of these new Seamless Pools on Spectra, it is recommended that the DAO incentivize veSPECTRA voters with bribes to vote on Seamless Pools, ultimately directing SPECTRA emissions toward these Pools. This proposal specifically targets the WETH Pool on Spectra as it will grow ETH liquidity in the Seamless WETH Morpho vault that is critical to scaling capacity for the recently launched Leverage Token product. The DAO can explore incentives for the USDC Pool or other pools to be created at a later time. How Voting & Bribing Works on Spectra: Spectra uses epoch-based voting (weekly). veSPECTA holders vote to direct emissions toward specific pools. Protocols offer bribes (in stablecoins or other tokens) to encourage voters to support their pools. Pools that receive votes receive a proportional amount of SPECTRA emissions to boost APY on those Pools, attracting more liquidity and participation. The following Bribe Program is proposed: Bribe Amount: $1,150 per epoch (~10% of average total bribes over the past 10 epochs) Duration: 4 epochs Total Budget: $4,600 Token: SEAM Target: Seamless WETH Pools on Spectra Note: Spectra contributors have signaled the readiness of allocating $1,500 worth of SPECTRA emissions to help bootstrap the Seamless WETH Pool. Proposal Details DAO to approve the proposed $4,600 budget to bribe Seamless WETH Pools on Spectra. Core contributors to execute bribes for 4 consecutive epochs. DAO to receive a post-campaign analysis from core contributors. DAO to decide on whether to extend, modify, or discontinue the bribing strategy.

Summary: This proposal requests DAO approval on several key items ahead of the upcoming launch of Leverage Tokens (LTs). These include the pre-authorization of DAO ownership for flagship LTs deployed by core contributors and permission for the strategic allocation of incentives under the framework established in GP-7: Expanding Protocol Reward Categories. Motivation: Leverage Tokens are a major product expansion for Seamless that encapsulate automated, looped leverage strategies. LTs represent the logical evolution and enhanced version of ILMs. To ensure the smoothest rollout possible, the DAO should pre-approve ownership and rewards logic for strategically significant deployments managed by core contributors. Proposal Details: 1. DAO to Accept Ownership of Core-Deployed LTs Although any user may deploy LTs permissionlessly, core contributors are expected to launch several flagship strategies that represent the protocol's standards for safety and performance. * This proposal requests that the DAO automatically accept ownership of these LTs to simplify lifecycle management and make them eligible for protocol-level incentives and front-end display. 2. Reward Allocation In December 2023, the DAO approved [[GP 7] Expanding Protocol Reward Categories – Increasing Token Emission Budget for Seamless](https://snapshot.box/#/s:seamlessprotocol.eth/proposal/0x113a9f75eb623fcccdc2b4400ecb0e125b95c0085bf0c8b44c5f136b27c29c2d). It is now proposed that the DAO authorize core contributors to allocate emissions from the GP-7 2025 budget toward Leverage Tokens, as follows: Primary source: “3m SEAM tokens allocated for future ILM, vault, or strategy launches.” Extraordinary sources: * “3m SEAM tokens for Legacy TVL Incentives” (given the sunset of the Legacy platform). * “1.5m SEAM tokens – Uncategorized: reserved for unforeseen opportunities, product launches, airdrops, community marketing, etc.”

Abstract The Seamless protocol has grown from its origins into a dynamic ecosystem centered on borrowing, leverage, and accessibility. This proposal outlines a pivotal shift: migrating liquidity from the legacy platform to Morpho Vaults. This move optimizes borrower value and supports community expansion, aligning with Seamless’s vision of a streamlined, 'platformless' future. Benefits of Migrating to Morpho Vaults Morpho Vaults provide a permissionless, efficient platform that unlocks significant advantages for borrowers. Key benefits include: Significant Liquidity Growth: Morpho Vaults (supporting assets like USDC, sBTC, and WETH) have achieved $70M in Total Value Locked (TVL) within the past month, dwarfing the legacy platform’s $15M. Improved Borrower Access: With no permission barriers, Morpho enables broader participation, empowering more users to tap into borrowing opportunities. Cost Efficiency: Unlike the legacy platform, Morpho eliminates third-party service fees and resource-heavy overhead, making borrowing more affordable. Support for Innovation: Morpho paves the way for cutting-edge products, such as Leverage Tokens outlined in the 2025 Product Roadmap, offering borrowers greater flexibility. Challenges of the Legacy Platform The legacy Seamless platform, originally built on an AAVE V3 fork, fueled early success but now poses obstacles to progress. Its limitations include: High Fixed Costs: Monthly maintenance expenses of $29.8K USD (totaling $443.7K annually) burden core contributors and drain resources. Resource Demands: Engineering focus is consumed by upkeep rather than innovation, stalling development of new features. User Impact: These inefficiencies limit user yield opportunities and impose tighter borrow limits, reducing the platform’s competitiveness and appeal. Sunsetting the legacy platform is a critical step to remove these constraints and refocus efforts on Morpho Vaults. Proposal Summary I propose a community vote to migrate liquidity from the legacy platform to Morpho Vaults and, over the next 2-3 months, sunset the legacy platform and ILM v1.0. This aligns with the protocol’s roadmap, freeing resources to prioritize a near-term launch of Leverage Tokens and realize the community’s vision. Here is the suggested plan: Snapshot Vote: Gauge community support for this migration plan, authorizing subsequent on-chain votes without additional discussion periods. Phased Sunset: Over 2-3 months, pause deposits, phase out rewards, and guide users to Morpho Vaults (for legacy liquidity) and Leverage Tokens (for ILM v1.0 users). Migration Bonus for ILM v1.0 Users: Since Leverage Tokens are not yet available but on the near-term horizon in the coming month or so, I suggest offering a migration bonus (potentially an airdrop) for loyal ILM v1.0 users who redeposit into Morpho Vaults until Leverage Tokens launch. The DAO can determine the details through discussion or a future vote. Consideration for Legacy Users: Morpho Vaults have excellent rewards and serve as a direct alternative for legacy platform users. Goals and Objectives Resource Consolidation: Redirect engineering efforts and SEAM rewards to the protocol’s core mission of borrowing and leverage, emphasized by Leverage Tokens launching this/next quarter. Maximize DAO Value: Simplify operations, reduce fixed costs (e.g., third-party provider fees), and improve community outcomes. Ensure a Smooth Transition: Reward loyal users, especially ILM v1.0 users impacted by the sunset, through suitable incentives and clear communication. Proposal Details Here is a rough (draft) timeline for the migration and sunset process, spanning approximately ~3 months beginning mid-March 2025: Legacy Liquidity: Users will see UI banners encouraging withdrawal and redeposit into Morpho vaults (with a clickable link provided). ILM v1.0 Users: With Leverage Tokens (ILM v2.0) not yet live, I propose a migration bonus, such as an airdrop, for users who redeposit into Morpho vaults within 1 month of the proposal, should it be approved, with a random snapshot to be taken by DAO to inform rewards, until v2.0 is available. The DAO will refine these specifics through discussion or a future vote. This timeline is flexible, aligning with approximate dates while offering users a clear transition path. Technical Details Smart Contract & Backend Actions GOVERNANCE: Prevent new deposits via setReserveFreeze(asset, true); allow withdrawals. GUARDIAN: Stop on-chain rewards with setEmissionPerSecond(asset, 0). GOVERNANCE: Disable reward emissions using Aave’s RewardsController; later vote to clawback surplus SEAM rewards.

Summary This proposal aims to address procedural gaps by introducing a ‘fast-track procedure’ for the DAO to promptly respond to high priority items. These measures aim to enhance the DAO’s agility and security protocols. Context and Motivation The “Formalizing Governance Processes for Seamless Protocol” was the first step in addressing lacunae within our ordinary governance structure. However, it introduced a 15+ days governance usual process. In order to allow the DAO to address urgent situation the [GP-2] Addressing Urgency: Unveiling the Fast-Track Procedure, reduced the governance process to less than 7 days. The [GP-4] Governance Reform Proposal removed the off-chain (Snapshot Labs) component for certain categories, thus significantly reducing the general governance process to 7 days. Therefore, it was decided to discontinue the “fast-track procedure”. Since April, it has become evident that the DAO occasionally needs to act more swiftly than the traditional 7-day governance process allows. This is particularly crucial in situations such as adjusting interest rates and refreshing rewards, where timely decisions can significantly impact the system’s efficiency and effectiveness. Additionally, quicker action may be necessary when addressing security concerns or integrating new partnerships. To maintain our agility and responsiveness, it is essential that we explore mechanisms that enable the DAO to make decisions more rapidly when the situation demands it. Specifications We currently suggest two ways to initiate the fast track process for General Proposals (i.e. those that do not require an onchain component) and Protocol Changes Proposals: Scenario 1: Initiating Fast Track at the beginning of the governance process The fast-track proposal is slated for an on-chain/off-chain (for those proposals that do not require an on-chain component) vote within 24 hours after its publication on Discourse. For a proposal to qualify for this expedited on-chain vote, it must garner explicit support from a majority of Discourse Level 2 users. Scenario 2: Initiating Fast Track AFTER the normal governance process has begun A fast-track proposal can be initiated at any time after the normal governance process has begun if it garners explicit support from a majority of Discourse Level 2 users Please note that the Fast Track Procedure shall not be applied to Governance Changes Proposals.

This snapshot vote is in regards to the following Discourse post: https://seamlessprotocol.discourse.group/t/gp-expanding-protocol-reward-categories-increasing-token-emission-budget-for-seamless/605/1 ---- TL;DR Proposing a comprehensive token emissions and budgeting strategy to align with Seamless Protocol’s priorities, upcoming GTM initiatives, and roadmap milestones. Key Proposal Highlights: Increase Emissions? YES, proposing an increase to emissions to create demand on various Seamless markets. Up to ~10% of total token supply for the period starting from now to end of 2025 Key Areas for Rewards? Lend Borrow Platform, ILMs, Aerodrome DEX Incentives, Near Term Product Rollouts, Tokenomics Annual Budget Setting with Quarterly reviews Context: Seamless Protocol has made significant strides across product development and user engagement, with key milestones achieved over the past six months (i.e. surpassing 250k total wallets/users who have used the protocol). Despite market fluctuations and competitive dapps entering the ecosystem, the protocol has maintained a steady TVL while expanding its product suite with ILMs. These efforts have reinforced Seamless’s position as a key player in the Base DeFi space, but there is always room and opportunity to grow and retake a leading DeFi position atop the charts. Motivation: The proposed emissions increase (detailed below) is a strategic move to position Seamless Protocol as a leader in the evolving Base ecosystem during a period of favorable macroeconomic and market conditions. Analysis of other successful Base DeFi projects reveals that aggressive reward emissions early in their lifecycle have propelled them to top positions. However, this approach has left many of these protocols with depleted treasuries, potentially limiting their ability to sustain long-term growth. Seamless is uniquely positioned to take advantage of this moment. With a rewards treasury capable of sustaining emissions for nearly 20 years under current parameters, the protocol is not constrained by the same budgetary pressures as its peers. While longevity is an asset, success is ultimately determined by seizing opportunities at the right time. As such, the proposed emissions increase reflects the DAO’s strategic priority to accelerate growth during an anticipated period of heightened crypto momentum. The motivation for this proposal stems from: Market Opportunity: With bullish sentiment due to macroeconomic trends, now is an opportune moment to position Seamless Protocol for capturing increased TVL and user activity. Product Expansion: The addition of new markets, new ILMs, and new products requires competitive incentives to drive adoption. Sustainable Growth: With ~55% of token supply held by the DAO and budgeted for rewards, turning up emissions in the early years, the DAO can maximize market presence while building a long-term framework for emissions decay and sustainability over time. The current market environment offers a rare “stars-aligning” chance to capitalize on increased activity and user interest in Base. By ramping up emissions in the near term, Seamless can amplify its total value locked (TVL), attract new users, and strengthen its competitive position as the go-to lending/borrowing platform on Base. This approach will allow the protocol to regain mindshare and establish itself as a top choice for users and liquidity providers as Base continues its growth trajectory. In the medium to longer term this should translate to increased fee generation and rewards via tokenomics. A thoughtful allocation of emissions ensures existing markets continue to grow while dedicating resources to newer products that represent future growth engines for the protocol. Specifications/Technicals: Under this proposal, the emissions schedule will be adjusted to distribute a maximum of ~10% of the total token supply from now through the end of 2025 (this represents 10,000,000 total SEAM). This strikes a balance between increased emissions/leaning into the aforementioned opportunity while still maintaining budget for future use. The suggestion is to maintain a framework that provides flexibility for emissions adjustments based on market conditions and product performance, ensuring sustainable deployment over time - perhaps with a quarterly revisiting cadence (similar to the bi-monthly cadence that is currently followed on lend/borrow reward emissions). For reference, even if the aggressive stance was maintained for multiple years there would be budget for over 5 years remaining; however, in all likelihood the budget would fluctuate (increase when market is good and decrease in the opposite case) - as such, we conservatively estimate the reward budget would still be able to last 6-10 years quite easily, which is much longer than early DeFi projects have maintained rewards (such as Compound, AAVE, etc). The specific proposal for the 10% of total tokens, or 10,000,000 SEAM is to be emitted as either SEAM or esSEAM depending on the situation. Note: remember these represent maximum values, emissions may start with a lower rate or budget to gauge efficiency, and be adjusted overtime with community input. That also includes the case where overall budget may be adjusted as well based on market conditions, efficiency and community decisioning. Emission Distribution: 30% (3m SEAM Tokens) for Legacy TVL Incentives: Gradually reduced as Seamless Morpho Flagship vaults gains traction. 30% (3m SEAM Tokens) for future ILM, vault or strategy launches: This may cover future ILM launches, second generation ILMs, or other types of vault launches under consideration (such as Morpho curated vaults) 15% (1.5m SEAM Tokens) for Safety Module: Set aside to bootstrap tokenomics currently being discussed in this proposal [GP] Activating SEAM Tokenomics, with a target delivery date of early Q1 25 10% (1m Seam Tokens) for Aerodrome Bribes: Aimed at generating strong onchain liquidity for SEAM and to kick-start the DAO POL strategy as approved in this proposal [GP-5] - Aerodrome Allocation. Will target minimizing costs overtime by accumulating veAERO holdings and allowing for organic long-term liquidity formation. Note* This budget has already been approved and will come out of the Seamless DAO Aera Treasury Vault. 15% (1.5m SEAM Tokens) Uncategorized: Reserved for unforeseen opportunities, product launches, airdrops, community marketing, etc. Emission Rate: Look at adjusting on a quarterly basis (every 3 months) based on market conditions, analyzed efficiency/metrics and community input Look to potentially increase or decrease overall annual budget on an annual basis, likely seeing fluctuations in the near term, but in the longer-run seeing decreased annual emissions, in order to stretch the emissions schedule to 9–10 years if needed. Implementation Process: Emissions will be sourced from the DAO’s reserves Final technical payloads, including specific on-chain transactions, will be presented post-discussion period pending positive community feedback. Next Steps This emissions strategy represents a robust approach to incentivizing protocol growth while maintaining long-term sustainability and community alignment. Feedback is welcome to refine this proposal further. Referencing past Protocol Reward Refresh Governance Proposals for community reference: https://seamlessprotocol.discourse.group/t/pgp-1-seamless-protocol-platform-rewards-refresh/202 https://seamlessprotocol.discourse.group/t/pcp-8-seamless-spring-protocol-rewards-refresh-2/268 https://seamlessprotocol.discourse.group/t/pcp-21-protocol-rewards-refresh-3-base-onchain-summer-is-here/509 https://seamlessprotocol.discourse.group/t/pcp-25-protocol-rewards-refresh-4-marching-ahead/542 https://seamlessprotocol.discourse.group/t/pcp-26-protocol-rewards-refresh-5-rewards-continuation/578

Summary This proposal aims to address procedural gaps by introducing a ‘fast-track procedure’ for the DAO to promptly respond to high priority items. These measures aim to enhance the DAO’s agility and security protocols. Context and Motivation The “Formalizing Governance Processes for Seamless Protocol” was the first step in addressing lacunae within our ordinary governance structure. However, it introduced a 15+ days governance usual process. In order to allow the DAO to address urgent situation the [[GP-2] Addressing Urgency: Unveiling the Fast-Track Procedure](https://snapshot.org/#/seamlessprotocol.eth/proposal/0x50bc31d25b5cee508ef40d0c3f116aa0d4001945cbde0cc98048815c6c7aa5ad), reduced the governance process to less than 7 days. [The [GP-4] Governance Reform Proposal](https://snapshot.org/#/seamlessprotocol.eth/proposal/0x32e7b40c6052545cb63942ead68bfe8e8f2f289bf26812c0c96413f1bb9e1260) removed the off-chain (Snapshot Labs) component for certain categories, thus significantly reducing the general governance process to 7 days. Therefore, it was decided to discontinue the “fast-track procedure”. Since April, it has become evident that the DAO occasionally needs to act more swiftly than the traditional 7-day governance process allows. This is particularly crucial in situations such as adjusting interest rates and refreshing rewards, where timely decisions can significantly impact the system’s efficiency and effectiveness. Additionally, quicker action may be necessary when addressing security concerns or integrating new partnerships. To maintain our agility and responsiveness, it is essential that we explore mechanisms that enable the DAO to make decisions more rapidly when the situation demands it. Specifications We currently suggest two ways to initiate the fast track process for General Proposals (i.e. those that do not require an onchain component) and Protocol Changes Proposals: Scenario 1: Initiating Fast Track at the beginning of the governance process The fast-track proposal is slated for an on-chain/off-chain (for those proposals that do not require an on-chain component) vote within 24 hours after its publication on Discourse. For a proposal to qualify for this expedited on-chain vote, it must garner explicit support from a majority of Discourse Level 2 users. Scenario 2: Initiating Fast Track AFTER the normal governance process has begun A fast-track proposal can be initiated at any time after the normal governance process has begun if it garners explicit support from a majority of Discourse Level 2 users Please note that the Fast Track Procedure shall not be applied to Governance Changes Proposals.

[PCP] Support wsuperOETHb on Seamless Simple Summary This proposal aims to introduce a Lending/Borrowing market for wsuperOETHb on Seamless. General Information wsuperOETHb contract address: 0x7FcD174E80f264448ebeE8c88a7C4476AAF58Ea6 Current TVL: $7m Website: Origin Super OETH 2 Dapp: Origin Unified Defi Origin Protocol Twitter: x.com Origin Protocol Discord: Origin Protocol Origin Protocol Telegram: Telegram: Contact @originprotocol chain : Base Motivation and Benefits to Seamless The proposal seeks to introduce a new market into Seamless on Base for wsuperOETHb. The new market would lead to increased TVL for Seamless, additional revenue to the Seamless Protocol and DAO from active loans and liquidations, and will attract a wider user base. This new market will also help diversify the yield possibilities for current Seamless users, and will increase Seamless’s visibility to external audiences from co-marketing campaigns. Super OETH Summary Super OETH 2 (superOETHb) is the next iteration of OETH, a superior LST with an extremely tight peg (1:1 redemptions to ETH thru Origin’s ARM) and high yields thanks to a combination of the OETH AMO 1 and DVT direct staking 2 through SSV/P2p. superOETHb yields are expected to reach double digit levels after ramping up over the next few weeks, making it an exceptionally perfect token for lending and borrowing against ETH. superOETHb was built reusing 90% of the code from OETH, for which the codebase has already been audited 12+ times. Super OETH is the first token in a new category of liquid staking: Supercharged LSTs. Supercharged LSTs will have materially higher yield while being designed for L2s, with a similar risk profile to mainnet LSTs. Ethereum liquid staking is amplified with chain-specific, auto-compounded incentives. Deep concentrated liquidity pools guarantee exits with minimal costs - users will never lose ability to convert back to ETH. wsuperOETHb is a ERC-4626 tokenized vault designed to accrue yield in price rather than in quantity. When you wrap superOETHb, you get back a fixed number of wsuperOETHb tokens. This number will not go up - you will have the same number of wsuperOETHb tokens tomorrow as you have today. However, the number of superOETHb tokens that you can unwrap to will go up over time, as wsuperOETHb earns yield at the same rate as standard superOETHb. The wsuperOETHb to superOETHb exchange rate can be read from the contract (function number 16), or via the OETH dapp. Current exchange rate as of 9/6/24: 1 wsuperOETHb = 1.00349356 superOETHb Obtaining superOETHb is effortless, users can convert their ETH into Super OETH via any of the following methods: Minting on the Super OETH dapp Swapping on WETH/superOETHb - $6.7m TVL, $7.9k volume Swapping on OGN/superOETHb - $621k TVL, $8.5k volume Oracle Through its integration with Aerodrome, Super OETH is able to ensure a 1:1 peg with ETH at any scale. The Super OETH AMO holds a portion of the protocol’s underlying collateral in a concentrated liquidity pool with an extremely tight price range within a single tick above 1.0000 WETH. This allows anyone to sell superOETHb into the pool for at least 1 WETH (minus swap fees). The Aerodrome TWAP quoter, which works the same as the Uniswap TWAP oracle, can also be used to derive the price of superOETHb on chain. superOETHb is also derived from OETH, which has mainnet oracles from Chainlink, Tellor, and Dia. Risk Analysis To ensure the successful integration of superOETHb into Seamless, the DAO may opt for a comprehensive risk assessment from Chaos Labs to determine: Liquidity and Market Cap: ensuring sufficient depth for lending and borrowing activities Liquidation Threshold: determining the appropriate liquidation thresholds to minimize risk while maintaining an overall balanced market. Debt Ceiling: Setting a prudent debt ceiling to control the maximum amount of superOETHb that can be borrowed, mitigating the risk of market instability. Supply Cap, Borrow Cap, and Liquidation Bonus: Establishing caps on the supply and borrowing of superOETHb, alongside defining liquidation bonuses to incentivize liquidators.

I ran into issue with withdrawals on Seamless and support is non existing for hours, very bad for the project !image

TL;DR Summary The SEAM Genesis Airdrop claim window has ended, so this proposal seeks to take any unclaimed SEAM and redistribute it to governance participants in the form of esSEAM. Airdrop is distributed to community members according to factors of strong governance participation, rewarding high voting rates and sizes of delegated SEAM/esSEAM. Some Galxe campaigns completed after the Genesis Airdrop were also included in this retroactive airdrop. Context & Motivation Governance is crucial for a healthy DAO and DeFi community. Since inception, Seamless has had over 375 active voter participants and thousands more participants who have delegated their SEAM or esSEAM voting power. It’s still early to establish a detailed delegate program like MakerDAO 20’s. However, as the protocol matures, it’s beneficial to encourage maximum governance participation. Specifically, the DAO should seek to reward top delegates + voter participants, and those holding esSEAM and SEAM who delegate to active voters. As such, in the spirit of continuing :cherry_blossom: Seamless Spring’s season of rewards, this proposal aims to reclaim the remaining unclaimed SEAM airdrop, convert it into esSEAM and airdrop it to top governance participants. If this initiative is executed by the community and successful, the DAO may consider future programs or airdrops to continue to encourage growth along the governance vector. Other potential considerations include instituting esSEAM tokenomics (but this is a larger topic for another time). Specifications/Technicals Supply: The supply used for the airdrop will be sourced from the unclaimed SEAM 98 of the initial SEAM Genesis airdrop. At the time of this writing, the unclaimed SEAM is approximately 40,572 SEAM. Format: The format of the airdrop will be esSEAM to further the theme of both :cherry_blossom:Seamless Spring Rewards as well as encouraging continued active governance participation. The esSEAM will be pushed to eligible wallets directly without users needing to claim their airdrop. Snapshot & Eligibility: To ensure no gamification of the parameters, a snapshot was taken ~3 weeks ago before any first informal discussion of this topic. Participants were generally chosen based on their involvement in governance and also some Galxe campaign participation that was not captured by the initial SEAM airdrop. Weightings: The individual airdrop calculations took into account the onchain and snapshot participation rate of the delegated voters—wallets were rewarded for delegating their SEAM and esSEAM and voters were rewarded for casting votes. The overall weightings and considerations given to each of these various activities are outlined below in the image: !Screenshot 2024-05-06 at 4.58.22 PM.png Original Discourse Post can be found here: https://seamlessprotocol.discourse.group/t/pcp-13-seamless-spring-continued-governance-participants-retroactive-airdrop/298/1

In line with [GP-6] Treasury Management Proposal (currently in the ideation phase), the proposal is to grant certain powers to the Aera Vault Management Council (AVMC) for the initial setup of the upcoming Aera Vault. To enable the creation of the AVMC by the DAO should GP-6 pass, elections will be held prior to the conclusion of the GP-6 vote (which begins on April 25). In the event that GP-6 does not pass, the results of the current elections will be immediately invalidated. All members of the Seamless DAO are encouraged to participate in the voting process. They may vote for as many candidates as they wish. The top three candidates will be selected as members of the AVMC. The list of candidates: 1. Jeremy Basic Info Name/Alias: Jeremy Discord Handle: @seashell_jf ETH Address (used for potential multisig, should be compatible with Gnosis Safe): 0x7baFCA489ABC8d118f7364F447804c63bD6048c3 Statement of Intent My background / qualifications: Hi everyone, my name is Jeremy, I’m a core contributor to Seamless Protocol. I’ve helped nurture our social following, ambassador programs, and growth of the community from the early days of Seamless and it has been exciting to see the protocol become the largest lending and borrowing platform on Base. I am connected with many partner projects and help assist on collaborations/partnerships to further the mission of Seamless Protocol. My reasons for wanting to serve as an Aera Vault Guardian: I work closely with community members and contributors alike, and feel I have a good grasp on many of the moving parts at Seamless Protocol. This vantage point places me in a position to assist as one of the Area Vault Gaurdians and participant in discussions in general. I confirm that: I understand this would be an ongoing role that requires active participation: Agree I understand that this is an unpaid position: Agree I understand that this work is a significant commitment: Agree I testify that I have no formal relation with or receive payments from the Aera Finance team. If any conflict of interest occurs I will immediately notify the DAO: Agree Telegram: Contact @jeremyseashell 2. Wes Basic Info Name/Alias: Wes Discord Handle: @wesfred ETH Address (used for potential multisig, should be compatible with Gnosis Safe): wesfred.eth Statement of Intent My background / qualifications: I am a core code contributor to Seamless. I am intimately familiar with the inner workings of Seamless and its governance processes. My reasons for wanting to serve as an Aera Vault Guardian: I would like to serve to represent the best interests of the Seamless community and DAO. I also believe that we should have someone with a deep knowledge of the protocol and a technical background to help setup the Aera partnership safely and securely. I confirm that: I understand this would be an ongoing role that requires active participation: Agree I understand that this is an unpaid position: Agree I understand that this work is a significant commitment: Agree I testify that I have no formal relation with or receive payments from the Aera Finance team. If any conflict of interest occurs I will immediately notify the DAO: Agree https://github.com/fredwes https://twitter.com/wesfred4 3. Richy Basic Info Name/Alias: Richy Discord Handle: richyhayek ETH Address (used for potential multisig, should be compatible with Gnosis Safe): I will shortly edit the post with a valid address that can be utilized for the gnosis safe Statement of Intent My background / qualifications: I am active DAO member across multiple communities, such as Ampleforth (FORTH DAO). I have been an avid DeFi user/participant since 2020. I have a mix of understanding the user and DAO side - and am also a core contributor to Seamless. Previously, I have also dealt with treasury management operations and also spent some time at a crypto hedge fund. As such, I think I can bring a blend of DeFi-nativeness, DAO/governane experience and crypto market experience in helping setup the Aera Vault for an efficient and prudent approach of treasury management for the DAO. My reasons for wanting to serve as an Aera Vault Guardian: I would like to continue to contribute to the Seamless Protocol and community. I believe being an Aera Vault multsig holder is a serious responsibility. I hope to be a good steward of the DAO and wish to see the DAO effectively take over control of these operations once a base-level robustness is setup in the strategies. I believe this initial foray into Aera Vault strategies will represent a pathway forward to the long-term self-sustainability of the DAO and wider Seamless ecosystem. This likely will represent the first step in a decades-long journey of the DAO’s treasury management and broader growth. As such, I’d like to be a part of this initial baby step and help support a smooth setup and smooth transition to the DAO. I confirm that: I understand this would be an ongoing role that requires active participation: Agree I understand that this is an unpaid position: Agree I understand that this work is a significant commitment: Agree I testify that I have no formal relation with or receive payments from the Aera Finance team. If any conflict of interest occurs I will immediately notify the DAO: Agree https://twitter.com/richy_qiao 4. Daryl Basic Info Name/Alias: Daryl Discord Handle: seashell_dh ETH Address (used for potential multisig, should be compatible with Gnosis Safe): 0xE647F02f1cfF58955050353eb1fEb257f8085FEF Statement of Intent My background / qualifications: My professional career in web3 began in 2018, when I spent over 3 years helping build a blockchain cybersecurity company. I’ve been a DeFi user for several years, and I am a core contributor to Seamless. I am familiar with utilizing Gnosis Safe for treasury management and understand the importance of secure key management. My reasons for wanting to serve as an Aera Vault Guardian: I would like to serve as an Aera Vault Guardian because I believe that I would be a reliable and trustworthy steward. This is an important initiative for the future of Seamless, and I would like to help set up the strategies for success. I am excited about the decentralized network of actors who will be able to transparently optimize the vault onchain and am looking forward to helping push this forward. I confirm that: I understand this would be an ongoing role that requires active participation: Agree I understand that this is an unpaid position: Agree I understand that this work is a significant commitment: Agree I testify that I have no formal relation with or receive payments from the Aera Finance team. If any conflict of interest occurs I will immediately notify the DAO: Agree

!image Protocol Owned Liquidity Injection: The proposal calls for a $500,000 investment from the DAO’s treasury into the SEAM/USDC LP on Aerodrome, granting us the dual benefit of trading fees and AERO emissions. SEAM for Voting Incentive: To sustain community engagement, we propose a $140,000 fund for SEAM incentives over 20 weeks to incentivize voting, which in turn boosts AERO emissions and the protocol’s governance strength. Fruitful Emissions Outcome: An anticipated collection of approximately 132,146 AERO, estimated at $199,540.46, sets the stage for a community-driven decision on the utilization of the accrued assets. Ultimately, the DAO will decide what we do with the earned AERO rewards/emissions: (1) sell AERO to buyback SEAM; (2) lock-up AERO and improve the DAO’s opportunities in earning more emissions. Advantages for the DAO: This approach allows us to forgo a rigid lock-up period, instead facilitating active liquidity provision to stabilize SEAM’s value and increase potential revenue and governance sway. Specification Our proposal aims to utilize treasury assets in a manner that not only enhances liquidity but also aligns with our long-term objectives (and the ethos of Seamless Protocol). We are sidestepping an enforced lock-up in favor of a more fluid and dynamic approach that provides immediate benefits and opens up future governance decisions to the community. To reiterate: $500,000 worth of SEAM will be allotted towards LPing in the SEAM/USDC pool. $250,000 worth of SEAM will be exchanged for USDC in 7d TWAP. After successfully exchanging SEAM>USDC we will proceed to provide liquidity to the given pool. At the same rate, we will also allocate $140,000 worth of SEAM to further incentivize the pool. We’ve broken this allocation into weekly intervals of $7,000/week. This campaign aims to run for 20 weeks. At the mid-way point of the campaign (week: 10), an update proposal will be submitted for community deliberation to determine whether or not: (1) we should continue with this experimental effort or; (2) the community is in favor of how well the campaign is performing and believes we (the DAO) should allocate more funds to the existing LP position. We are confident that this proposal serves the best interests of the DAO, providing stability for SEAM’s market, generating revenue through trading activity & emission accural, and possibly amplifying our governance influence overall. We welcome the community’s feedback, discussion, and votes on this pivotal governance proposal.

Summary This proposal aims to carry out a governance reform in order to enhance the efficiency of the DAO by making adjustments to the governance process. Context/Background: ​​The Seamless DAO and Governance system has been fully operational for over 4 months, during which dozens of governance proposals have been deliberated within the community through platforms like Discourse and Discord. Notably, many proposals have seen offchain Snapshot labs signaling votes, with six proposals having progressed to full on-chain voting (and execution). This has resulted in community initiatives like the Seamless Community Grants Program and Seamless Spark as well as numerous protocol parameter updates. However, these experiences have highlighted the need for additional pathways for off-chain governance actions, such as nominating SCGP committee members. Moreover, the lengthy governance process, particularly for basic administrative updates like borrow/supply caps adjustments, has been acknowledged. Looking at the operational histories of other DeFi liquidity market protocols, it is expected that such governance proposals will persist or even increase in frequency. Therefore, a comprehensive review of the governance proposal processes is recommended, along with the following proposed reforms for community consideration and voting to streamline and enhance the current governance model. Proposal: This governance reform proposal focuses across four areas: 1. Introduction of a governance category that requires offchain snapshot voting, ONLY - i.e. General Proposals (GPs) 2. For Protocol Change Proposals (PCPs) and Governance Change Proposals (GCPs) - the removal of offchain component and utilizing the onchain voting mechanism, ONLY 3. Suspension of the Fast-track procedure Introduction of General Proposals (GPs) A new governance category is proposed to be added to the current governance structure. General Proposals (or GPs) are governance proposals that are fit for only an offchain vote on Snapshot Labs. Quorum will be set to 1 million SEAM and a simple majority is required to have been considered as “passed”. This will be utilized for various offchain initiatives such as nominating SCGP committee members, or other future special initiatives that do not have an onchain component. In cases where there are protocol changes or other similar onchain changes, the normal onchain governance process will be utilized. Reform PCPs and GCPs to onchain voting component, ONLY It is proposed that Protocol Change Proposals and Governace Change Proposals no longer utilize Snapshot Labs for offchain signaling prior to an onchain vote. Rather, the process proceeds from discussion in Discourse, with optional signaling via Discord or Discourse polls. If a discussion has passed previously outline parameters AND has enough delegated voting power to form an onchain proposal, then it is permissible for a proposal to proceed directly to an onchain vote. The low voting costs on Base Layer 2 and high quality of proposals so far mean the signaling and spam filter nature of offchain signaling prior to onchain voting is obsolete for the protocol’s current needs. This allows for a more streamlined onchain voting process. Suspension of the Fast-track procedure The implementation of a new governance process will enable the DAO to address proposals within a timeframe as expedited as 7 days, mirroring the efficiency of the current fast-track procedure. Consequently, should the current proposal pass, the fast-track procedure will be discontinued. PS. Additional part of this proposal concerning "Creation of of special purpose community-run multisigs to handle (very) limited low-security risk responsibilities" will be put separately to an on-chain Tally vote.

In the approved proposal to set up the Seamless Community Grants Program (SCGP), the initial budget of $100,000 USD in esSEAM was approved, with an additional $200,000 USD set aside to be added for the next round of grants (https://snapshot.org/#/seamlessprotocol.eth/proposal/0x4e6e0238da84b44229bab4e432efa1e5f71508e77c2931c0796a50283a89f212). The initial $100,000 USD in esSEAM budget is almost fully distributed, and there has been interest from other Base partners to cosponsor SCGP grants, so this replenishes the ability to give out grants. This Snapshot proposal approves the full $300,000 USD for the SCGP budget, as well as begins the process of moving SEAM to a multisig (3 of 5) controlled by the current SCGP Council members (council members located here: https://snapshot.org/#/seamlessprotocol.eth/proposal/0xeb965c6c0e042ccb93cc5132f2e6b469a50bc2d343d1038c388ddaddb0c5da5c).

Summary This proposal aims to address procedural gaps by introducing a ‘fast-track procedure’ for the DAO to promptly respond to high priority items. These measures aim to enhance the DAO’s agility and security protocols. Context and Motivation The recently approved “Formalizing Governance Processes for Seamless Protocol” has been pivotal in addressing lacunae within our ordinary governance structure. However, it has become increasingly apparent that there are occasions when the DAO must react swiftly and cannot afford the luxury of spending 15+ days navigating the usual process. A prime example that underscores this necessity is the Seamless Protocol Platform Rewards Refresh. It was evident that adhering strictly to the conventional process would jeopardize the sustainability of our protocol. Thus, the DAO found itself compelled to deviate from the norm in order to preserve the integrity and functionality of the platform. During the approval process for this critical initiative, the DAO acknowledged the pressing need for a responsive mechanism capable of addressing urgent issues in real-time. As a result, the DAO is now committed to developing a clear, efficient, and transparent procedure specifically designed for handling emergency situations. This new approach, aptly termed the ‘fast-track procedure,’ seeks to streamline decision-making processes during times of urgency, ensuring the agility and adaptability of our governance framework. In essence, the introduction of the fast-track procedure represents a proactive step towards fortifying our governance infrastructure and empowering the DAO to effectively navigate unforeseen challenges as they arise. Specifications We currently suggest two ways to initiate the fast track process: Scenario 1: Initiating Fast Track at the beginning of the governance process The fast-track proposal is slated for an on-chain vote just 24 hours after its publication on Discourse. For a proposal to qualify for this expedited on-chain vote, it must garner explicit support from a minimum of 4 out of 5 current Trust Level 2 users. As the number of Discourse Trust Level 2 users continues to grow, the following majority schemes shall apply: 5 out of 6/7, and 6 out of 8/9. Once the count of Trust Level 2 users reaches 10+, an absolute majority among Trust Level 2 users becomes necessary, ensuring that at least 50% of all badge holders have participated in the voting process. This support is required to be clearly expressed as a comment on the proposal in the Discourse forum, and a qualified majority is essential for the proposal to proceed. Scenario 2: Initiating Fast Track AFTER the normal governance process has begun A fast-track proposal (i.e. onchain governance proposal vote) can be initiated at anytime after the normal governance process has begun, if either of the following conditions have been met: Condition 1: The conditions from Scenario 1 are met; OR Condition 2: >50% of total delegated voting power has voted “YES” on the snapshot labs temperate check AND the proposer notifies the community via Discourse and Discord that the condition is met and a fast track process is being engaged. This would mean the vote can already move to an onchain governance proposal, regardless of the remaining time of the Snapshot Labs vote, since a majority quorum was met. Delegated voting power can be viewed here.

Based on GCP-2 (reference here: https://snapshot.org/#/seamlessprotocol.eth/proposal/0x4e6e0238da84b44229bab4e432efa1e5f71508e77c2931c0796a50283a89f212) passing snapshot temperature check voting AND the closing of self-nominations in the relevant discourse thread (linked to this proposal), moving the nominees into a snapshot vote for the Seamless community to vote and decide on the 5-person initial SCGP pilot council. Will utilize "approval" voting to allow for community members to vote for multiple members they would like to support for council candidacy. Each community member can vote for one or multiple candidates, and their entire voting power will reflect on EACH of their selected options. The candidates receiving the top 5 approval votes will be selected for the initial pilot SCGP council. For clarity, outlining the nominated candidates by order they will appear in the approval vote: Candidate A - Ras (raslambek) - bio here: https://seamlessprotocol.discourse.group/t/scgp-pilot-council-nomination-thread/183/2 Candidate B - Destyo (chandeliers) - bio here: https://seamlessprotocol.discourse.group/t/scgp-pilot-council-nomination-thread/183/3 Candidate C - Simon (simonampleforth) - bio here: https://seamlessprotocol.discourse.group/t/scgp-pilot-council-nomination-thread/183/4 Candidate D - Igor (Smailov) - bio here: https://seamlessprotocol.discourse.group/t/scgp-pilot-council-nomination-thread/183/5 Candidate E - Daryl (seashell_dh) - bio here: https://seamlessprotocol.discourse.group/t/scgp-pilot-council-nomination-thread/183/6 Candidate F - Danilo (_excalibur) - bio here: https://seamlessprotocol.discourse.group/t/scgp-pilot-council-nomination-thread/183/7 The community is welcome to make their selection(s) below. Selecting a candidate or candidates means you approve of this candidate to be on the council.

Background: This proposal is for a community-driven initiative and outlines the commencement of an informal grants program for Seamless Protocol – the Seamless Community Grants Program (SCGP). The pilot grant process focuses on esSEAM and Seamless DAO, with the potential for future refinement of the grant process/program or parallel grant initiatives within the ecosystem. Objective: Launch an initial (and limited) Seamless Community Grants Program (SCGP), to kickstart growth and expansion. Begin leveraging esSEAM to fortify the protocol’s long-term alignment and health. Context: Seamless Protocol, now the leading lend/borrow platform on Base, introduced SEAM, its decentralized governance token, in December 2023. Since then, the platform has experienced significant growth - over 16,000 users have tried the protocol, with thousands having also liquidity mined for SEAM rewards and hundred participating in governance so far. Seamless Protocol can now increase its focus on the platform’s and community’s long-term growth, as well as the wider growth of Base L2. To align the protocol, rewards, and community for long-term success, the proposal suggests leveraging esSEAM—a one-year linearly unlocking version of SEAM with retained governance utility, for future rewards. esSEAM has been previously designed and deployed by Seamless community contributors. Because Seamless Protocol has a long future ahead to lay the foundation for modern DeFi, the introduction of esSEAM will ensure early supporters are dedicated to the journey and avoid short-term biases. To further support a robust and expanding ecosystem, a pilot community grants program, the Seamless Community Grants Program (SCGP), will be launched in parallel. This initiative aims to reward creators of complementary tools, platforms, or components within the Seamless ecosystem with esSEAM. The SCGP will begin with a modest cap, allowing for initial exploration to optimize processes and effectiveness before committing more time and resources to the effort. esSEAM Summary esSEAM is a non-transferrable ERC-20 token, where 1 esSEAM corresponds to 1 SEAM held in escrow, unlocking linearly over a one-year period. The unlocking process is automated and permissionless through onchain smart contracts. esSEAM maintains its voting delegation and voting utility throughout the locked phase. The token can serve as rewards distributed on the platform or within the community, including through grants programs. Seamless Community Grants Program (Pilot) Summary Who: Five nominated Council members for the initial pilot phase, potentially extendable. Council members can self-nominate in a Discourse thread, followed by a community snapshot vote. The Council will enact and conduct offchain voting processes to review grant applications. The Council members shall fully commit to adopting a stance of radical transparency throughout the process. What: Utilize esSEAM grants for the pilot grants program. Initial SCGP will have a maximum cap/budget of $100,000 USD worth of esSEAM, targeting 4-6 potential projects or grant initiatives. Suggested focus areas may include liquidators, DEXs/liquidity, governance engagement, flatcoin integration, LSTs & ILMs, and mass-market use-cases. Grants would generally be “funded” to applicants post-launch or concurrently with reaching some significant milestone. Note: A small amount of grant may be presented upfront in stablecoins/esSEAM to cover initial launch costs. (as determined by the Council and through discussions). Where: Council will establish a submission and discussion process, likely utilizing Discourse. Council will find time to meet and discuss grants in a timely manner. The discussion and selection process will be transparent so that any DAO member can follow it. Grant “approvals” will be shared publicly with relevant details into a predetermined channel (i.e. Discourse). When: Introduce esSEAM and initiate SCGP as soon as Council member nomination voting and on-chain funding vote are passed. The pilot program runs until the initial $100,000 USD in esSEAM is distributed. If deemed a successful initiative, an additional $200,000 USD worth of esSEAM can be added via a fast-track onchain vote for the next round of grants. How: Initial grants will be funded from the Seamless DAO and distributed in esSEAM to a Council-controlled Multi-Sig wallet upon approval of the proposal. Funding will occur when the processes for Council nomination and voting (on snapshot) are concluded. This funding transfer will require an onchain proposal initiated through the Protocol Change Proposal process, which allows for automatic, permissionless and timelock execution of fund transfer. As of current market conditions, the initial $100k USD grant budget would equate to 19,570 esSEAM (subject to revision based on market).

Simple Summary: This proposal aims to formalise the governance processes and forum/proposal set-up to provide a clearer structure and a fast-track procedure to increase efficiency of the DAO. Motivation: Currently, the governance process seems to be not fully standardised. Thus there might be confusion regarding proposal categories and timeframes. This issue could magnify when onboarding new community members. This proposal seeks to formalise the proposal process and update the information in related docs and guidelines. Specification/Body Text: In this respect I suggest to amend the existing governance process as follows: Add a proposals classification: Protocol Changes Proposal (PCP) or Governance Changes Proposal (GCP). Protocol Changes are proposals pertaining to any risk parameter changes, the addition of new asset markets, decisions about the SEAM token emissions rate, etc. Governance Changes cover changes to broader protocol governance structures, format, processes and quorum thresholds, and therefore require a higher margin of “For” votes to pass. Limit an ideation phase to 5 days. A proposer has a right to prolong the discussion up to 5 more days. Oblige a proposer to repost his/her initial proposal with comments received from other members of the DAO as a new comment under the same proposal forum thread. This will be the final version of the proposal to be submitted to the Snapshot temperature check. Introduce a 2 days cooldown period before submitting the final version to the Snapshot vote. Given that Snapshot Snapshot currently cannot read “delegated voting power” on Base chain, require only a simple majority for a proposal to pass temperature check. Introduce a “cool-down period” of at least 24 hours between the end of the Snapshot vote and on-chain vote is strongly recommended. Next steps After the proposal passes, the relevant section in the Gitbook documentation will be updated. Forum categories will be restructured, with detailed guidance and proposal templates included in the pinged post for each category. Next steps After the proposal passes, the relevant section in the Gitbook documentation will be updated in accordance with the following document Title: Formalising Governance Processes Forum categories will be restructured, with detailed guidance and proposal templates included in the pinged post for each category.

Background: Lido Finance is a family of open-source peer-to-system software tools deployed functioning on Ethereum and Polygon. It is mainly known for enabling users to stake their tokens with validators to receive rewards from validation activities on the blockchain while being able to use the token on-chain in various capacity including as collateral on money markets. In November 2023, Lido DAO has officially accepted ownership of the wstETH bridging components on Base, bringing wstETH over to Base. 2.5k wstETH has been bridged over to Base thus far. Proposal: Seamless is the lending market that has seen the fastest growth in terms of TVL on Base. wstETH is an asset that lends itself well to lending markets. I am proposing to get wstETH as a collateral asset on Seamless. Having wstETH as a collateral asset on Seamless will doors for strategies like leveraged staking and enable users on Seamless to be more efficient with their capital. As recommended by Chaos Labs, here are the parameters that should be set for listing wstETH as a collateral. !Screenshot 2024-01-11 at 8.43.45 AM.png These parameters set should ensure that wstETH can be used safely as a collateral on Seamless Protocol.

Background: Seamless has grown to be a top TVL and user project on Base. The supply of liquid assets on the platform, such as major assets like ETH and USDbC, has grown significantly in this time to account for nearly 25% of total TVL on Base chain. With this growth, the borrowing on the platform has long been at maximum capacity and unable to grow more due to the genesis borrow caps. Though these borrow caps serve their purpose (conservative approach for safe liquidations, overall safety of the platform), Seamless appears to be ready for its next phase of growth and for an adjustment of the borrow caps. Proposal: With several months of operating history, the addition of Chaos Labs to the community (+ their risk monitoring expertise) and the growing robustness of the liquidator network, it makes sense to re-evaluate and increase the borrow caps across all existing Seamless markets. Additionally, it is prudent to begin raising the borrow caps to enable more capital efficiency of the platform, and for the newly deposited liquidity to “do work” (generate fees) for the Protocol and enable more growth for the wider Base ecosystem. The proposal is to set supply and borrow caps parameters to the screenshot below: !Screenshot 2023-12-28 at 3.37.37 PM.png

Seamless Protocol is the home base of Base, where projects can direct liquidity for lending and borrowing. What is Seamless Spark? Seamless Spark is the asset integration program for Seamless, the first and largest, decentralized lending and borrowing protocol on Base. The proposal initiator of potential assets should complete the Seamless Spark program in order to ensure a healthy market for lending and borrowing. Why does Seamless Spark exist? Seamless Spark strikes the balance of enabling smaller and less liquid projects/assets to integrate. This fosters inclusivity for the Base ecosystem, while also mindfully balancing the inherent risks associated with their integration. Thus, ensuring accessibility without compromising on safety or usability, bridging the gap between overly gate-kept platforms (i.e. Compound and AAVE) and the inclusion of assets seeking greater liquidity options. How does it work? All assets in the Seamless Spark program must go through governance voting procedures. However, with the robustness of Seamless Spark, projects can demonstrate legitimacy to the community for easier/fast-tracked decisioning. The Proposal Initiator interested in the asset integration must submit the proposal below into the Seamless Discourse, where the community can discuss proposals and get questions answered. This begins the remainder of the governance process. The proposal includes 3 important pieces. Background Info: The asset must have sufficient liquidity in order to be considered. This information would be considered in setting potential Supply and Borrow cap parameters. Sufficient liquidity can be further defined by Chaos Labs, a risk analysis community contributor, but depends on the type of asset and integration considered. Typically, liquidity on the major Base DEXs is a starting point for consideration (less liquidity would mean more restrictive caps on the asset). The Community Spark Incentives: To spark the market, the Proposal Initiator should commit assets to incentivize participation in the new markets, both for the suppliers and borrowers. For Proposal Initiators who are looking to expand their user base, assets can also be committed into incentivizing other existing supply/borrow markets. The Commitment from the Proposal Initiator: As a display of confidence, the Proposal Initiator or project community should seed the supply market with a certain amount of assets. They should also set aside a minimum requirement for paying off bad debt in case of illiquid liquidations. The Process Fill out the Seamless Spark Proposal Template below and submit as a forum post on discourse here Once posted, an open period of discussion in Discourse for at least 5 days for community comments and suggestions begins Posts that receive enough support are moved to a snapshot labs vote and follow a typical proposal process (i.e. community temperature check, then those that pass need to form onchain quorum, etc) Looking into the Future The Spark process may be revisited from time-to-time by the community, taking past integrations and new market landscapes into account for adjustments - it is a living-breathing process Assets will be run through evaluation by community contributor Chaos Labs where possible to leverage their expertise and experiences Minimum commitment thresholds may be instituted by the community as more experience with the program develops Seamless Spark Proposal for [ASSET] Background Info What is the Project’s official name? What is the official website link? What is the symbol of the proposed asset for integration (referred to as “[ASSET]” below). Base smart contract link on Basescan. Name the DEX(es) with highest [ASSET] liquidity, and include the size of liquidity of each. For the Community Spark Incentives How many [ASSET] will you use to incentivize the [ASSET]-Suppliers? For what length of time? How many [ASSET] will you use to incentivize the [ASSET]-Borrowers? For what length of time? Which existing Supply markets will you spark (e.g. ETH, USDbC)? Include the number of tokens & length of time of emissions. Which existing Borrow markets will you spark (e.g. ETH, USDbC)? Include the number of tokens & length of time of emissions. Commitment from the Proposal Initiator or Project Community What is the number of [ASSET] that you/your community will use to initially “spark” the Supply market? What is the minimum length of time that your [ASSET] will be supplied into the proposed market? What is the minimum insurance size you will maintain to pay off instances of bad debt (in USDC)?