Two of the most famous platforms of the Decentralized Finance (Defi) sector, Liquid strike Protocol Lido and Decentralized Exchange Curve Finance, consider slim.
Despite a recent revival in Defi markets, Lido co-founder Vasiliy Shapovalov announced a 15% part of the contributors, and a proposal for new curve governance suggests the development on low two (L2) networks.
Read more: Defi pays great to collect USDC
A drop in the ocean
Lido is the second largest Defi protocol on total value locked (TVL) at $ 32 billion according to Defillama, the leading data dashboard of the sector.
Although it is active in other chains, 99.9% of his TVL is held on Ethereum.
The enormous scale of Stuted Ether (ETH) collected by Lido and the corresponding liquid wrapper, so that the locked tokens could be reused in May caused panic, when an emergency voice was increased to rotate a compromised oracle key.
On the cuts, Shapovalov acknowledges that the decision “contraindic to market recording”, but that the focus of the DAO is on “sustainable growth, operational focus and coordination with the priorities of LDO toky holders.”
Defillama -Data shows Lido Core -employee salaries on Just over $ 8 millionWith a similar figure for operating costs (although the figures come from a report of 2022).
This year so far, Lido’s income has already surpassed $ 40 million.
L2 Curve-Ball
The management proposal for the DAO of Finance in Curve, on the other hand, suggests that developers should stop working on L2 network integrations, which produce negligible protocol costs compared to Ethereum MAINNET.
Curve is Defi’s second largest decentralized exchange, assessed on the $ 2.2 billion TVL, and has processed more than $ 7 billion volume in the past month, 96% of which was on Ethereum.
When traders use the Polish of the protocol to exchange tokens, they pay a fee that is divided between liquidity providers and the DAO.
Defillama data shows that, apart from a short period between in 2021 and 2022, when Curve’s non-film implementations (usually polygoon and arbitrum) regularly produced more than 10% of the total reimbursementsCurve’s Mainstetpools otherwise have fully dominated trading activity.
Since the launch of the protocol in 2020, Ethereum -Pools have been responsible for 93% of all costs.
At the time of writing, the proposal did not succeed in generating a lot of debate, with the only answer that called for more “background or context” to be able to correctly discuss such a “radical” proposal.
Decentralized autonomous organizations, the standard way to implement Defi projects, are often synonymous with inefficiency, waste and even accusations of teams that plunder treasuries.
A flat, non-hierarchical structure and culture of open contribution is often seen as a noble effort, but perhaps, Not the best for someone’s digital goat.
