Uniswap has been making quite a buzz in the DeFi space. The popular lending protocol recently announced the launch of its highly anticipated UNI governance token on Ethereum mainnet, which has already had a massive impact with the token’s price skyrocketing followed by several centralized cryptocurrency exchanges such as Binance and Coinbase Pro opening trades for it.
This Ethereum-based protocol’s popularity has caused even its contemporaries to jump into the UNI bandwagon. Uniswap had earlier noted that it wants a “diverse and high-quality set of protocol delegates”, for the purpose of discussions and communications around potential governance proposals. In this regard, another decentralized platform, Yearn Finance’s Founder Andre Cronje expressed his intention of becoming a delegate on Uniswap with hopes of influencing its governance.
In a recent tweet, Cronje stated,
“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.”
When asked if he would want to push for the YFI-ETH pool to be included for the protocol’s LP reward, the developer revealed,
“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.”
According to the protocol governance structure, Uniswap team members will not participate directly in governance for the foreseeable future, but the members could, in fact, delegate votes to protocol delegates. Additioanlly, all UNI holders will have ownership of the entire governance process.
Besides, Cronje’s tweet for delegation comes days after the developer questioned whether the “unexpected” launch of UNI on the ETH mainnet was in response to the Sushiswap clash and criticized the network for letting the latter influence its announcement date.