🍣 Sushi's Treasury Is At Stake Amid Bitter Infighting

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Sushi’s long-running governance woes appear to be coming to a head, with a controversial proposal from its recently installed Operations Team seeking to move treasury assets under the control of a centralized entity. The team said it wants to safeguard the assets against an ongoing governance attack, but many in Sushi’s community believe the project is facing a centralization attack instead.

MakerDAO moving to support Ethena’s USDe token as collateral is ruffling feathers across web3, with Aave lowering its maximum loan-to-collateral ratio for Maker’s DAI stablecoin. MakerDAO’s co-founder also defended the protocol onboarding USDe as critics characterize Maker’s governance process as increasingly centralized.

Plus, Solana suffered high rates of transaction failures amid spam from bots, and a U.S. court ruled that Terraform Labs and its founder are liable for $40 billion worth of investor losses.

✍️ In today’s newsletter:

Sushi drama escalates amid proposed treasury takeover
Aave reduces LTV ratio for DAI
MakerDAO co-founder criticizes decentralized governance
Solana txs fail due to spam
Do Kwon and Terraform Labs liable for civil fraud

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💰 Sushi Team Under Fire For Proposed Treasury Takeover

Sushi’s long-term governance saga is at a crossroads, with a proposal from its core Operations Team proposing to bring the project’s treasury assets under the control of a centralized entity amid a purported governance attack. However, community members say the move is the latest in a long string of actions intended to sideline decentralized governance and plunder assets from Sushi’s DAO.

💵 Aave Reduces MakerDAO's DAI Collateral After Proposal to Completely Eliminate It

Aave reduced the loan-to-value ratio of MakerDAO’s DAI stablecoin by 12% percentage points down to 63%. The move came in response to Maker onboarding for Ethena’s controversial yield-bearing stablecoin, USDe, as collateral, with some in Aave’s community wanting to abandon DAI entirely.

🗳️ MakerDAO Founder Says Having “Rando’s” Participate in Governance Makes DAOs Unpredictable

MakerDAO is also facing criticism from onlookers over the increasingly centralized governance process surrounding protocol changes, with Aave’s Marc Zeller stating that a lack of open discussion before governance measures take effect is making the protocol “hard to predict.” Rune Christensen, MakerDAO’s co-founder, hit backing, stating that handing governance responsibilities over to “randos” is just as detrimental as centralized decision making.

🤖 “Bots Spam Better Than Humans” Leading To Transaction Failures On Solana

Failed transactions on Solana soared to record highs above 70% for two consecutive days amid surging spam from bots. Researchers argue the problem is a product of Solana’s inherent design, which prioritizes low transaction fees over robust and responsive fee markets.

🧑‍⚖️ Do Kwon And Terraform Labs Found Liable For $40 Billion Fraud

A U.S. court found Terraform Labs and its co-founder Do Kwon liable for $40 billion in civil fraud following a unanimous jury verdict. The collapse of the Terra network and its algorithmic stablecoin UST in May 2022 plummeted the crypto markets into the depths of the recent bear trend and triggered the contagion risk that culminated in billions worth of CeFi insolvencies during the proceeding months.

🌍 ELSEWHERE

China’s Largest Funds Apply For Spot Bitcoin ETF In Hong Kong (Bitcoin Magazine)
Chainalysis Hires Former IRS Criminal Investigations Chief Jim Lee (CoinDesk)
Solana and Blast memecoin launch and trading platform pump.fun hits $5 million in revenue (The Block)