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Balancer Jumps While Team Tokenomics Weighs Curve Style


Key Takeaways The DeFi Protocol Balancer may soon use a voice-protected system, similar to the one developed by Curve Finance. The CEO and co-founder of Balancer Labs, Fernando Martinelli, has submitted a proposal for the introduction of a veBAL token called veBAL. BAL is up 11.2% after the update. Share this article Balancer considers implementing a vote-escrow token model for the Balancer protocol. Balancer appears to be following Curve Tokenomics Balancer has learned of the Curve Wars. popularized by Curve. When implemented, the system allows BAL holders to lock their tokens for a period of time to receive associated “VE” tokens, in this case veBAL. According to a proposal Thursday from Balancer Labs CEO and co-founder Fernando Martinelli, the development team behind the project said it has considered adopting a voice-protected system to improve existing tokenomics. Currently, BAL holders can stake their tokens to vote on proposals, but there is no locking mechanism of any kind. In the proposal, Martinelli said Curve’s tokenomics “seems an obvious fit for the Balancer protocol.” Curve introduced VE tokens to give CRV holders higher returns, a share of protocol revenue and the power to vote on board proposals. The receipt of voting rights is particularly noteworthy because it can be used to determine decisions such as the amount of liquidity mining rewards to be distributed among different pools. DeFi battle in which protocols compete to collect CRV, lock it to veCRV and try to influence Curve’s voting power to get more rewards for their users. The Curve Wars is basically a game of liquidity capture in which Protocols race to acquire as much CRV as possible to drive the project and Curve cements its place at the top of DeFi. If passed, the proposal will introduce veBAL as the main asset to vote on future proposals. The new system could help Balancer follow Curve’s lead and potentially fuel demand for BAL tokens. Interestingly, Yearn Finance also recently adopted a voting escrow system for YFI. In particular, Balancer’s proposal deviates somewhat from Curve’s proposal. While Curve allows users to lock CRV to receive veCRV, Balancer users will need to purchase Balancer Pool tokens from the protocol’s BAL/ETH pool to receive veBAL. Balancer Pool Tokens are issued to liquidity providers on Balancer; they represent the user share of the pool. Although the proposal has not yet been adopted, the market seems to have responded well to the proposal. BAL is up 11.2% today. Disclosure: At the time of writing, the author of this piece owned ETH and other cryptocurrencies. Share this article The information on or accessible through this website was obtained from independent sources believed to be accurate and reliable, but Decentral Media, Inc. makes no representation or warranty as to the timeliness, completeness or accuracy of any information contained on or accessed through this website. Decentral Media, Inc. is not an investment advisor. We do not provide personal investment advice or other financial advice. The information on this website is subject to change without notice. Some or all of the information on this website may be out of date, or may be incomplete or inaccurate. We may, but are not obligated to, update any outdated, incomplete or inaccurate information. You should never make an investment decision about an ICO, IEO or other investment based on the information on this website, and you should never interpret or otherwise rely on the information on this website as investment advice. We strongly recommend that you consult a licensed investment advisor or other qualified financial professional if you are seeking investment advice on an ICO, IEO or other investment. We do not accept compensation in any form for analyzing or reporting ICOs, IEOs, cryptocurrency, currencies, tokenized sales, securities or commodities. See full terms and conditions. Convex Finance Passes $20 Billion Locked, Takes DeFi Staples Into Convex Finance is now the second largest DeFi protocol with a total value of more than $21 billion. Convex Finance Jumps to Second in TVL Convex Finance now has the second highest amount of… Aave and Curve Finance Join DeFi’s Billion Dollar Club DeFi is growing exponentially, adding a billion dollars in collateral in just two days. Aave and Curve were the most powerful drivers as each project sped by… Balancer approves BAL distribution to offset Ethereum gas costs… A recent proposal from Balancer Labs will pay users 7,500 BAL per week to cover their gas costs . As users pay the gas costs in ETH, the fees increase… NFT Express: Your Gateway to the World of NFTs At Tatum, we’ve already made it super easy to create your own NFTs on multiple blockchains without having to learn Solidity or create your own smart contracts. Anyone can bet…
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