Two DeFi projects with $1.2B in TLV have major governance issues
Curve Finance is currently the third largest DeFi protocol, with a total value locked, or TVL, of $1.1 billion. Recently the community realized that the project’s founder, Michael Egorov, had leveraged over 71% of the voting power, ultimately leading to backlash from the community. Andre Cronje, the founder of popular DeFi protocol yEarn.Finance, tweeted:
The protocol’s next vote is scheduled for August 28. While Egorov’s share has gone down somewhat, he still controls over 50% of the vote at press time.
YFValue was launched last week with a congenital bug that would have allowed its creators to permanently lock users’ staked funds. This was reminiscent of Yam.Finance, which was launched with a similar issue, though YFValue’s bug is seemingly less severe. As YFValue prepared to relaunch the next day, it presented a selfish mining opportunity for some “clever” members of the community:
However, clever members of the community noticed our mistake and took advantage of it by continuing to farm in pool 0 despite our warnings, despite our removal of the frontend UI. As there was no way we could stop this activity, we made the decision to burn the minter key. This key burn would cause tx failure at checkNextEpoch (08/24/2020 @ 7:52am (UTC), an event which we hoped would serve as a deterrent.
Those who for do not remove their funds from the specified pool before the deadline could lose their assets forever.