GM, Tim Here.
Uniswap’s new L2 leaves its DAO in the dark.Trump’s WLFI token sale flops. Whales distorting Polymarket’s electoral odds.
Uniswap snubs its DAO
First, Uniswap Labs announced Unichain. Then there was the problem with its DAO.
The company behind the $5 billion decentralized exchange markets Unichain as the protocol’s answer to the growing trend of Ethereum Layer 2s.
The problem? Uniswap DAO representatives, who are supposed to be in control of major decisions involving the Uniswap protocol, say they have been kept in the dark.
DAOs, or Decentralized Autonomous Organizations, are a type of governance structure popular in DeFi where holders of protocol tokens can use them to propose and vote on changes.
Uniswap Unichain’s sudden announcement raises serious questions about DAO governance, said Billy Gao, head of governance at Stanford University’s Blockchain Club at X.
1/ @UniswapA spontaneous experiment of @unichain The DAO raises serious questions about governance and leaves many of us unprotected. Is this a bold step forward for DeFi, or a worrying step back for decentralization? Here’s our take on what unfolded, why it matters, and what’s next.
— Billy Gao (@__billygao) October 19, 2024
1/ @UniswapA spontaneous experiment of @unichain The DAO raises serious questions about governance and leaves many of us unprotected. Is this a bold step forward for DeFi, or a worrying step back for decentralization? Here’s our breakdown of what unfolded, why it matters, and what happens next.
— Billy Gao (@__billygao) October 19, 2024
According to Gao, key decisions with wide-ranging implications, such as which technology Unichain uses, are made behind closed doors by Uniswap Labs.
Stanford’s Blockchain Club is the joint eighth largest Uniswap DAO delegate 2.5 million UNI Tokens.
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“This calls for questioning (again) how decentralized UNI governance really is,” Gao said.
To DAO representatives like Gao, for-profit company Uniswap Labs appears to have more control over the Uniswap protocol than the holders of its tokens.
Uniswap launched the UNI token in September 2020. UNI’s launch “makes Uniswap a formally publicly-owned and self-sustaining infrastructure” and helps protect the protocol’s autonomous features, Uniswap said in a statement. Blog post.
But some have defended Uniswap Labs’ actions.
“It’s something anyone can do without permission,” Mario Zavala, founder of DeFi analytics platform Revert, said. Said In response to Gao.
“Uniswap Labs has no obligation to notify the representative privately.”
World Liberty is a financial flop
When Donald Trump’s World Liberty Financial launched its token sale last week, it had a lofty goal: raise $450 million.
A week later, and the DeFi project hasn’t even come close. So far it has collected only 14 million dollars.
Small print in World Liberties Documentation It revealed that Trump and others who would benefit financially from the project would end up empty-handed.
Critics say the situation is predictable.
World Liberty is valued at around $1.5 billion, with the project yet to be launched.
At the same time, the WLFI tokens that the project is selling are not sold and there is no guarantee that they will be forever.
When there is no chance of making money, many people are not interested in crypto.
Wales tip polymarket odds
Donald Trump’s election odds are on the rise at crypto betting site PolyMarket.
Vice President Kamala Harris may have a two-point lead in the national polls, but the betting platform gives Trump a big lead — Harris bets cost just 37 cents, representing a 37% chance of winning.
This change is mostly due to the fact that many big bettors skew the odds.
Four accounts at pro-Republican businesses held nearly $35 million. Given the low liquidity, this is enough to skew the sentiment around the election.
“It’s about the depth of the market,” says Jake Dwyer, founder of venture fund The Factor Corp News. “If market interest is particularly in a tight range, as soon as you want to buy a large amount, you’ll find that there are no quantity offers.”
This week on DeFi Governance
Vote: Stargate DAO prepares bridge deployment on Unichain
Vote: Arbitrum Votes Against DAO Token Swap Pilot Proposal
Vote: Uniswap DAO votes on revised onboarding proposal for Forse as data service provider
Post of the week
DefiLlama’s 0xngmi weighs in on what happens to the total value of a locked Polymarket when betting on the US presidential election.
For those interested in what will happen to the polymarket after the election, here is the TVL of Augur (the leading prediction market at the time) during the 2021 US election, with a lot of TVL left but consumption higher than before. pic.twitter.com/uMa7dTENxA
— 0xngmi (@0xngmi) October 17, 2024
For those interested in what will happen to the polymarket after the election, here is the TVL of Augur (the leading prediction market at the time) during the 2021 US election, with a lot of TVL left but consumption higher than before. pic.twitter.com/uMa7dTENxA
— 0xngmi (@0xngmi) October 17, 2024
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Related TopicsUNISWAPDecentralised Autonomous Organization (DAO)
