Heâ€™s made his governance intentions clear.
Founder of Yearn Finance Andre Cronje is putting himself up as a delegate to Uniswap aiming to affect protocol governance.
In a tweet, Cronje said if he made a delegate, he will create resources to encourage delegation, off-chain voting, and compliance on-chain. He also added:
â€œAt 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.â€
Uniswap announced that it wants to bring in a “diverse and high-quality collection of delegates to the protocol” who will address governance concerns over the protocol and its UNI token. According to the network, this governance mechanism enables UNI holders to be responsible for ensuring that the protocol meets regulatory requirements. Uniswap leadership has already promised not to take part in the cover of the protocol.
As soon as Cronje declared his intention to be a delegate to Uniswap, supporters asked if he intended to include the YFI-ETH pool in the UNI liquidity pool. He was saying:
â€œAt 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.â€
As Yearn shunned releasing a governance token for its decentralized lending platform, Cronje previously showed some disdain for the state of the decentralized finance, or DeFi, industry.
13,000 Uniswap users immediately claimed their free 400 UNI within three hours of Uniswap releasing UNI. Binance and OKEx both listed UNI and the token as one of the top 20 DeFi tokens have emerged.