YFI founder puts himself up as a UniSwap delegate nominee hoping to influence the governance of the protocol as we are reading more in the latest altcoin news.
In a tweet, Andre Cronje, the YFI founder puts himself up as a nominee for a Uniswap delegate hoping to build tooling to facilitate delegation, on-chain enforcement, and off-chain voting:
“At this point, I do not think it should be a rush to incentivize liquidity pools (this can be abused). I believe we have an opportunity to re-evaluate the tokenomics and distribution. We can help DAI or sUSD reach peg. We can provide support for further development.”
Uniswap announced that it wants to bring a diverse and high-quality set of protocol delegates that will discuss governance issues over the protocol and the UNI token. According to the network, the governance structure allows the token holders to be responsible for ensuring the protocol complies with all standards. Uniswap leadership already promised that they will not participate in the governance of the protocol. As soon as Cronje announced the intention to become a Uniswap delegate, the followers asked if he intends for the YFI-ETH pool to be included in the liquidity UNI pool to which he answered:
At this time, no, it would attract YFI holders to provide liquidity instead of using it for its intended purpose (such as governance). I believe there is better value add that can be done for the overall ecosystem by utilizing UNI incentives in other proposals.
— Andre Cronje (@AndreCronjeTech) September 19, 2020
“At this time, no, it would attract YFI holders to provide liquidity instead of using it for its intended purpose (such as governance). I believe there is better value add that can be done for the overall ecosystem by utilizing UNI incentives in other proposals. To add onto this, there are also other market incentives that can help the overall ecosystem better. A DAI:sUSD pool for example can help both DAI and sUSD pegs. Simply incentivizing liquidity is not a positive sum, this can also be easily abused as “exit” liquidity.”
Cronje has already shown some disdain over the state of the decentralized finance sector as Yearn shunned releasing the governance token for the decentralized lending platform. In three hours of Uniswap releasing the UNI token, 13,000 Uniswap users have immediately claimed their free tokens. OKEx and Binance have both listed UNI and the token emerged as one of the top 20 tokens on the market.
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