Here are some of the major developments from the world of crypto over the past few days
Transactional volumes on Dogecoin briefly surpassed Litecoin and Bitcoin earlier this week. Following the introduction of a new mechanism that now permits the production of tokens on the Dogecoin Blockchain, the daily transaction volume of Dogecoin increased tenfold from the average daily earlier this week to reach a lifetime peak.
According to BitInfoCharts data, the network experienced over 645,000 transactions on Sunday, briefly surpassing both Bitcoin and Litecoin transactions that day before reverting to prior levels as of Wednesday.
Anchorage Digital Opens Up Defi Voting
Anchorage Digital has joined AAVE, Lido and BitDAO in adopting the off-chain voting platform Snapshot.
Institutional customers of cryptocurrency custody company Anchorage Digital can now comment on proposals for the tokens they own without having to pay exorbitant petrol costs.
In a statement on May 16, 2023, Anchorage said it would integrate Snapshot, an off-chain, gas-free multi-governance client, to let its “token-holding community users” to vote on governance proposals using their tokens without paying gas fees.
It stated that there would be no money movement and that all voting would take place in Anchorage.
Decentralised protocols like AAVE, Lido (LDO), and BitDAO utilise snapshot. The voting is recorded off-chain, which means that transactions are not visible to the public on the Blockchain.
This method has the benefit of “convenience,” according to Anchorage. “The trade-off for such convenience comes in the form of on-chain guarantees; Snapshot voting is free, because votes are counted off-chain, and thus, do not require gas payments. The responsibility to enforce the decision is typically entrusted to a multisig that the protocol team operates,” Anchorage said.
Class-Action Suit Filed Against Bancor DAO
A group of investors have brought a class-action lawsuit in the US District Court for the Western District of Texas, against the Bancor decentralised autonomous organisation (DAO), its operator, the BProtocol Foundation, and its creators.
The pioneering DAO allegedly offered “risk-free” products that cost American retail investors tens of millions of dollars in losses.
The plaintiffs contend that Bancor misled investors about its Impermanent Loss Protection (ILP) mechanism for liquidity providers and that it was an unregistered security, among other things.
The lawsuit claims that Bancor's v2.1 investment product, which was the second to include ILP and was released in October 2020, had a deficit that the defendants were aware of and attempted to address by releasing v3, which promised “some of the most competitive returns anywhere [...] without asking users to take on any risk.”
In the automated market maker decentralised finance model, impermanent loss happens when a liquidity provider deposits assets into a pool, and one of the tokens involved loses value in comparison to another token in the pool.
As trade circumstances could later restore the token’s value, it is referred to as temporary. Unless the investor removes the token from the pool, the loss is not realised.