GovernanceStrategyV2 Smart Contract

Overview of the GovernanceStrategyV2 Smart Contract

On September 24, 2023, the dYdX community almost unanimously supported upgrading the GovernanceStrategy Smart Contract to v2. This upgrade ratified the implementation of wethDYDX into dYdX v3’s governance system so that wethDYDX has the same voting and proposal power as ethDYDX.

Resources

• Github GovernanceStrategyV2 Smart Contract

• Peckshield Audit Report

Voting & Proposal Power

The dYdX GovernanceStrategy Smart Contract and the GovernanceStrategyV2 Smart Contract determine the proposal and voting power of each individual address at a specific block number. This GovernanceStrategyV2 Smart Contract weighs the proposal and voting power from ethDYDX, stkDYDX and wethDYDX tokens equally. In addition to being considered for on-chain voting, this contract is also used by Snapshot to determine a given user's voting power and/or proposal power for off-chain voting.

GovernanceStrategyV2 Smart contract

The GovernanceStrategyV2 Smart Contract is essentially the same as the GovernanceStrategy Smart Contract with added support for the wethDYDX token address, which is treated equivalently to the ethDYDX and stkDYDX. The GovernanceStrategyV2 Smart Contract has minimal changes compared to the original contract.

Note, wethDYDX would be treated the same as ethDYDX and stkDYDX in both on-chain and off-chain governance proposals.