Unchained Podcast

  • Podcast
  • Book
  • Newsletters
  • Shop
  • Resources
    • Crypto Glossary
  • About
  • Contact
    • Sponsors
    • Press
    • Pitches
    • Confidential Tips
  • Log In
  • Log Out

June 24, 2022by Laura Shin

Solend and Bancor Drama: Did These DAOs Violate the Ethos of Crypto? – Ep. 366

Derek Hsue, cofounder at Reverie, discusses the recent controversial decisions by Solend DAO and Bancor, the importance of establishing processes for black swan events, and whether decentralized governance truly exists. Show highlights:

  • what situation prompted Solend to feel it was in jeopardy
  • what Solend DAO’s response was to that situation
  • why Derek views it as “the nuclear option”
  • why the proposal sparked an outcry from the crypto community
  • whether this issue could have been prevented or managed differently if the protocol was built on a blockchain other than Solana
  • why, a day later, the DAO reversed its first decision to take over the whale’s account
  • whether Derek thinks the DAO made the right decision to not take over the whale’s account
  • what is Impermanent Loss Protection, a feature offered by Bancor
  • why Bancor decided to pause Impermanent Loss Protection
  • whether Celsius and 3AC had anything to do with Bancor’s problem
  • how Bancor’s decision was made unilaterally
  • how DAOs should deal with black swan events

Thank you to our sponsors!

Crypto.com: https://crypto.onelink.me/J9Lg/unconfirmedcardearnfeb2021 

Ava Labs: https://www.avax.network/

EPISODE LINKS

Derek

  • Twitter: https://twitter.com/derek_hsue

Reverie

  • Website: https://www.reverie.ooo/
  • Twitter: https://twitter.com/hi_reverie

Solend DAO Situation

  • Covered on Monday’s Unchained Newsletter: https://unchainedpodcast.com/does-this-dao-deserve-emergency-power%e2%81%89%ef%b8%8f/
  • Proposal to invalidate the first one: https://decrypt.co/103330/solana-lending-dao-overturns-vote-to-take-over-at-risk-whale-wallet
  • The whale moved $25 million from Solend: https://www.theblock.co/post/153207/solana-whale-shuffles-25-million-to-reduce-risk-to-defi-protocol-solend

Bancor Pausing Impermanent Loss Protection

  • Bancor’s post: https://blog.bancor.network/market-conditions-update-june-19-2022-e5b857b39336
  • Anthony Sassano’s reaction: https://twitter.com/sassal0x/status/1539082583832526848?s=20&t=OzTV6M5bCH4fxJIJUtLA4Q

DAO Governance issues:

  • Lido DAO proposes to reduce the existing scope of governance of its token holders: https://research.lido.fi/t/ldo-steth-dual-governance/2382
  • Jack Niewold ‘s thread: https://twitter.com/JackNiewold/status/1539307339928457217?s=20&t=OzTV6M5bCH4fxJIJUtLA4Q
  • Unchained Coverage: How Soulbound Tokens Could Reduce Speculation and Improve DAO Voting – Ep.360: https://unchainedpodcast.com/how-soul-bound-tokens-could-reduce-speculation-and-improve-dao-voting-ep-360/

Main tweet

On this Friday’s Unchained, Derek Hsue explains:

* why the first Solend DAO vote was the “nuclear option”

* whether Solana’s history of downtime spurred the proposal

* Bancor’s decision to stop Impermanent Loss Protection

* what this all means for DAO governance

Posted in: 2022, Shows, UnchainedTagged in: Bancor, bitcoin, blockchain, crypto, dao, decentralization, Defi, Derek Hsue, governance, Laura Shin, Reverie, Solana, Solend, Unchained Podcast

Our guest on this episode:
Derek Hsue, cofounder at Reverie

Derek Hsue

cofounder at Reverie

© Copyright 2022 Laura Shin Media LLC. All Rights Reserved.

Website by Zach Swinehart.

  • Podcast
  • Book
  • Newsletters
  • Shop
  • Resources
    • Crypto Glossary
  • About
  • Contact
    • Sponsors
    • Press
    • Pitches
    • Confidential Tips
  • Log In
  • Log Out

Unchained Podcast

  • Podcast
  • Book
  • Newsletters
  • Shop
  • Resources
    • Crypto Glossary
  • About
  • Contact
    • Sponsors
    • Press
    • Pitches
    • Confidential Tips
  • Log In
  • Log Out