Gauntlet’s $ 2.3 million contract with Crypto Lending Platform Compound Finance is confronted with Pushback for “Economic UnderPerformance” and “Conflicts conflicts”, in addition to other criticism.
In a message to the Governance Forum of Compound, prior to Gauntlet’s own renewal proposal, the founder and CEO of Alphagrowth, Bryan Colligan, would have to repeat that compound “non -glove under the current model.”
He made four important criticism, accused glove of having “operational gaps” and not maintaining profitable cooperation programs with other platforms, in addition to the aforementioned “economic underperformance” and “conflicts of interest”.
Read more: Compiled Dao Sleep behind the wheel as $ 25 million Governance ‘Attack’ Passes
Similar accusations were returned in March, after the approval of a proposal to use competitor Morpho (for whom Gauntlet is also a service provider) to launch new markets on the Polygon Network.
In the Sector Decentralized Finance (Defi), projects are often carried out as decentralized autonomous organizations, or DAOS, in which token holders vote on important decisions such as protocolupgrades or hiring contractors such as Gauntlet.
Compound is considered one of the most established DAOs and is credited to fill the legendary ‘Defi Summer’ of 2020 by rewarding liquidity providers with their own administration, comp.
Skepticism about dao judgment
In a blog post published on Alphagrowth entitled ‘The Death of Daos’, Colligan refers to the issues that bring and claim such conflicts of interest: “If you try to keep a service provider alive, you cannot evoke inefficiency without making enemies.”
Gauntlet has previously beat this line a bit too closely to Defi Lending Giant Aave before he finally threw the towel into the towel and joins Morpho.
Aave Governance Delegate Marc Zeller is one of Gauntlet’s toughest critics and regards his relationship with compound as parasitic. Zeller says that Gauntlet would probably “drain compound treasure chest to zero”, and that “the only way out for comp holders is to press the sales button.”
Read more: Justin Sun defends HTX while it lends 92% of his USDT on Aave
Instead of renewal, Colligan suggests a one -month tender phase before two service providers are selected to compete against each other on an identical assignment over a 90 -day period. He also refers to performance -based payment as the road forward, instead of fixed costs.
Gauntlet’s proposal to extend his services indicates that his risk -balanced “has avoided any material insolventions”, while he also emphasizes the “parameter acades” and “risk -warnings” that it produced in the year as part of his research.
In response, Compound Foundation said that it “supports that our relationship with Gauntlet is being expanded” on the basis of “continuity”, “avoiding disruption”, “strategic initiatives” and “contractual improvements”.
Dao -Drama
Fighting is common in the Defi sector. Hacks, lawsuits, forks and vampire attacks all create a high -pressure environment where flare fester and temperatures resent. Hayden Adams of Uniswap recently went against rival decentralized Exchange Bancor in the offensive.
Read more: uniswap ‘hook’ bunni hacked for more than $ 8 million after a precision bug
Adam’s post was posted in response to a lawsuit that Bancor brought against Uniswap in May, who called Adams ‘nonsense’. He argued “the use of mathematics of the first year on pricokens on a blockchain” does not justify the patent.
Bancor launched his “Constant Product Automated Market Maker” exchange in 2017, where Uniswap launched the following year. Nowadays Defi Dashboard Defillama shows the $ 5.8 billion in total value of Uniswap (TVL) dwarf of Bancor’s $ 69 million.
