With millions and even billions of dollars at stake, industrial-scale produce farming is leading to pockets of resistance as some projects refuse to leave with husks.
Over the past week, team members from no-loss lottery project PoolTogether and exchange liquidity pool provider Curve Finance have proposed ways to reduce the load. There are financial strategies on their protocol and governance tokens.
In a tweet on Sunday, PoolTogether co-founder Leighton Cusack said that Ayr has become the primary beneficiary of the protocol’s multiple DAI lotteries, as Eir controls 57% of all DAI funds ($27 out of $47 million in the pool at the time). million) of writing) and therefore have a disproportionate chance of winning.
“At this scale, this becomes problematic as they tend to monopolize winning opportunities and marginalize the core value prop of the protocol,” Cusack wrote on Twitter.
Yarn <> Poole totally wanted to provide some context as this tweet is getting some traction. https://t.co/bpCUroz8NS
— Leighton Cusack (@lay2000lbs) June 13, 2021
Similarly, in a governance motion today, “Charlie” a representative of the Curve core team cast a vote to remove the CRV benefits given to LUSD pools. alUSD is a stablecoin from Alchemix, a project that issues loans in Year Vault based on the future yield from deposits; The annual vault, in turn, uses stablecoins and other assets to cultivate Curve’s CRV tokens.
alUSD is clearly linked to CRV dumping from the inflation schedule, so it currently causes more dumping of CRV than the normal pool. The CRV inflation for this pool is likely to be overcome through the governance vote, so the proposal:https://t.co/KGt2E9jmXi
— Curve Finance (@CurveFinance) June 15, 2021
Both instances of projects growing under the weight of Eyren sparked speculation on social media that personal animosity may have looked like a protocol-level sharecropping revolt (Alchemics used Curve competitor Saddle for a new synthetic ETH pool). opted to do so); That Year may be overzealous with his form-and-dump strategies; And that there can be “regime wars” that can create friction in an open ecosystem.
However, comparing the dynamic with the “war” seems to be superfluous.
Curious who will be the first to implement traditional concepts like dual-class voting tokens and staggered DAO multisig.
— Collins Belton (@collins_belton) June 15, 2021
In an interview with Cointelegraph, Cusack said that the pool has fully agreed to onboard Yarn as the interest provider for the lottery, and that in return Yarn will cease to act as the flop whale in his pool. Will give
“We recently completed the integration with Year and this is being audited. This means our prize pool can use Earn for yield. This is preferable because it will yield a higher APR. This means It is also that the yarn will not be able to accumulate in the pool completely as it will create a risky recirculating loop,” he said.
He also noted that “Year holds 10% of all pool tokens he has earned” and that pool emissions were cut by 50% at the end of last month.
Cusack added the Year team, “I have found them very helpful and willing to make changes to reach a more optimal result. They ultimately understand that our success drives them more success.”
Similarly, Charlie of Curve noted that the governance proposal is an attempt to reduce a recurring CRV emissions structure, as Poole as a whole seeks to achieve with its new regime.
“Alchemix and LUSD are awesome products that make their produce partly by selling CRVs, which is why the community raised the issue. [they] Should not get CRV (double dipping) on top. This isn’t a proposition hostile to Alchemics, just a way to see if the rest of the Curve DAO feel the same way about it and if they really feel like it’s abusing the system. It has nothing to do with sales,” he said.
While the battle between the farmer and the crops appears to have subsided for the time being, Cusack said a fundamental conflict remains that could eventually turn into a governance battle.
“There is naturally a tension between the protocol that wants deposits to fuel growth and the depositors who want the maximum yield selling protocol tokens.”
While the DeFi ecosystem prides itself on elegant economic designs and logical systems, hot heads sometimes lead to conflict when it comes to governance. Earlier in the year, insurance/coverage protocol cover and year.finance Announced the end of a merger that some parties likened to a divorce..
Representatives for several years did not respond by the time of publication.