Yearn Finance founder Andre Cronje puts himself up as a delegate for Uniswap hoping to influence the governance of the protocol.

In a tweet,
Cronje said he “will build tooling to facilitate delegation, off-chain
voting, and on-chain enforcement” if made a delegate. He added:

“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
it wants to bring in a “diverse and high-quality set of protocol
delegates” who will discuss governance issues over the protocol and its
token UNI. According to the network, this governance structure allows
UNI holders to be responsible for ensuring the protocol meets compliance
standards. Uniswap leadership already promised that they would not participate in the protocol’s governance.

As
soon as Cronje announced his intention to be a Uniswap delegate,
followers asked if it as his intention for the YFI-ETH pool to be
included in the UNI liquidity pool. He said:

“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 previously showed some disdain over the state of the decentralized finance, or DeFi, sector as Yearn shunned releasing a governance token for its decentralized lending platform.

Within three hours of Uniswap releasing UNI, 13,000 Uniswap users immediately claimed their free 400 UNI. Binance and OKEx both listed UNI and the token has emerged as one of the top 20 DeFi tokens.

source link : https://cointelegraph.com/news/yearn-finance-founder-nominates-self-as-uniswap-delegate