a16z has Voted Against Deployment of Uniswap v3 on BNB Chain
- Andreessen Horowitz (a16z) has voted against the deployment of Uniswap v3 on leading crypto exchange Binance’s BNB Chain.
- The deployment will take place using the Wormhole Bridge while the venture firm supports LayerZero as the interoperability protocol.
- a16z used its 15 million UNI holdings to vote against the move and the end period for vote is Feb. 10.
- The partners of a16z expressed their intention to vote for LayerZero as the deployment bridge during the temperature check.
Andreessen Horowitz (a16z), a venture capital firm that has invested heavily in the crypto space in 2021 during the crypto market bull run, has voted against the deployment of Uniswap v3 on leading crypto exchange Binance’s BNB Chain. This deployment was supposed to be done using the Wormhole Bridge, a communication bridge between chains and other top networks.
Interestingly, the decentralized exchange’s v3 is said to have a new and improved DEX “that will run on the Ethereum blockchain and be powered by the same automated market maker (AMM) model as v2 but loaded with new developments aimed at maximizing returns for traders and liquidity providers, minimizing price slippage, and managing downside risks.”
Furthermore, according to the Uniswap DAO forum, a16z has voted against the proposal to deploy Uniswap v3 on the BNB Chain. On the other hand, Robert Leshner, the founder and CEO of Compound Labs, has voted in favor of the deployment. The forum noted that BNB Chain “offers high transaction speeds and low fees, making it a suitable platform for Uniswap’s decentralized exchange services.”
The governance proposal was submitted on Feb. 2 by 0xPlasma Labs on behalf of the Uniswap community and was put to vote after it passed a temperature check with 20 million (80.28%) votes for yes, and 4.9 million (19.72%) votes for no. Interestingly, on Feb. 5, a16z used its 15 million UNI holdings to vote against the move. Furthermore, at the time of this writing, only 3.6% of the total votes, i.e., 36.26 million, have been cast. Additionally, the voting period is set to end on Feb. 10.
It is crucial to note that the reason for the disagreement is the cross-chain bridge chosen for the deployment, i.e., Wormhole Bridge. a16z supports LayerZero as the interoperability protocol, and this is the reason why it voted against the deployment. The partners of the venture firm expressed their intention to vote for LayerZero as the deployment bridge during the temperature check.
“To be totally unambiguous, we at a16z would have voted 15m tokens toward LayerZero if we were technically able to. And we will be able in future Snapshot votes. So, for the purposes of a “temperature check”, please count us this way,” Eddy Lazzarin, head of engineering at a16z, stated.
Interestingly, 0xPlasma Labs stated that the stakeholders in the Uniswap community “have expressed a desire to see trust-minimized bridges used for governance for the new Uniswap v3 deployment on BNB Chain.” However, the proposal noted that after “a very complex discussion and voting on the Snapshot, the community chose the Wormhole Bridge for the Uniswap v3 deployment on BNB Chain.”
Another important part of the discussion is the $300 million hack of the Wormhole Bridge in February 2022, which rocked the entire crypto world. Moreover, as reported earlier by BitcoinWisdom, Binance has become the entity with the second-highest voting power in the Uniswap community, accumulating 5.9% of the total voting power.
A crypto journalist with over 3 years of experience in DeFi, NFT, metaverse, etc. Parth has worked with major media outlets in the crypto and finance world and has gained experience and expertise in crypto culture after surviving bear and bull markets over the years.
