#38

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Prices on 2021-08-29 07:15 UTC.
DAO

Uniswap’s controversial proposal doesn’t pass due to technical issues

A major controversy surrounds Uniswap’s now canceled governance proposal to fund blockchain analytics platform Flipside Crypto.

The proposal was asking to use $25 million from Uniswap’s treasury to provide liquidity to wETH-UNI pool, distributing all generated yield to Flipside so it can pay employees and oversee a bounty program to acquire new users.

The proposal had all chances to pass unnoticed, but less than 24 hours before the end of voting the community started heated debates over a decision to fund operations of a single analytics provider when the market is full of similar services.

Dune Analytics took the lead, calling all UNI holders to reject favoritism and instead create a vendor-neutral proposal, allocating money to “the community”. A developer of the DeFi Llama dashboard pointed out that Flipside has already received $11.5 million in VC funding. The team behind Revert — another DeFi analytics tool — tweeted that they’ve applied multiple times for Uniswap grants, but never received any reply.

Eventually, the votes divided almost 50/50 with the majority supporting the funds allocation. The proposal, however, has failed to pass due to a technical issue. Index-focused decentralized autonomous organization Index Coop delegated its UNI votes to Flipside, allowing the latter to reach the minimum amount of voting power required to create a proposal. Shortly after, Index Coop has mistakenly delegated their UNI votes back to themselves, which allowed another user to cancel the proposal because it didn’t meet minimum threshold requirements anymore.

Uniswap’s previous controversial proposal allocated one million UNI tokens to US-based nonprofit DeFi Education Fund - previously known as DeFi Political Defense Fund - with an official goal of providing grants for political, educational, and legal engagement. In simple words, the money was allocated to counter banking lobby in the US.

Exchanges

World’s largest exchange imposes stricter rules

Binance announced immediate mandatory ID verification for all its customers. Users who don’t want to go through the full KYC process should be able to close positions, cancel orders, and withdraw funds. Although, some users were not able to withdraw their funds from the platform following the recent announcement because their attempts to withdraw full balances triggered risk control, which ironically requires ID verification to be resolved.

Binance has also denied any allegations of counter-trading against its own customers, following accusations from a Twitter user who claimed to be a former “big data engineer” at the company. The alleged whistler-blower has not yet provided any proof to back his accusations and his Twitter handle has been deleted.

Meanwhile, KuCoin — another Chinese exchange — published a report which shows that the number of its new users has grown by more than 1100% in 2021, hitting the 10 million mark. KuCoin is known for not enforcing KYC on its customers, allowing unverified users to withdraw up to 2 BTC per day. Although, many crypto traders speculate that KuCoin has not been under heavy regulatory pressure yet due to its small user base, and that eventually all major centralized custodial exchanges will have to impose strict KYC/AML rules on their customers.

In other news

  • The first Monero atomic swap providers opened their shops for all peer-to-peer enthusiasts who wish to buy XMR with BTC. A long-awaited Bitcoin-Monero atomic swap went live in May, allowing users to exchange Bitcoin and Monero in a trustless way without any intermediaries.

  • Solana-based cross-chain yield aggregator Luna Yield performed an exit-scam by pulling out protocol’s liquidity and deleting social media accounts. Malicious developers were able to steal nearly $10 million, making it the biggest rug pull on the growing Solana network.

  • Whitehat hacker Sam Sun discovered a critical vulnerability in SushiSwap’s fundraising platform Miso and fixed it within 5 hours, protecting $350 million in locked funds from potential exploits. Following the incident, the Sushi team has temporary paused all auctions utilizing the specific dutch auction contracts with ETH commitments.

  • According to Radio Sweden, the Swedish state had to return convicted drug dealers 33 bitcoins, worth more than $1.6 million. At the time of the prosecution in 2019, the court set the total value of seized bitcoins around $150,000. The cryptocurrency’s exchange rate has skyrocketed since then, so it took only 3 bitcoins to cover men’s debt to the state.

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