The UNIon, a Uniswap community blog

ROMAIN FIGUEREO
Dec 16, 2020 · 3 min read

DeFi is a game-changer: Finance as a whole is being rewritten without intermediaries, and outside of the regulator’s grasp.

While this is evidently great for innovation, the sandbox is a dangerous place. Skipping over the rugs, the exploits, the hacks and all the technical dangers reported by medias like Rekt, anonymity by default forces us to change our mindset compared to traditional governance methods because it facilitates conflict of interests and information asymmetry. This isn’t a critic of anonymity, but we believe it is important to highlight that the framework of governance has to take this into account. It can be hard to know what the intentions of a DeFi actor are, and this can lead to wrongful assumptions or deceit.

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Good or Bad ? Who knows…

This is a very troublesome conclusion in a world where Do Your Own Research (DYOR) has become the golden rule of crypto investing. Do we really expect every single user to audit every code, be aware 24/7 of what’s going on in every protocol and do a full background check on every 0xAnon participating in governance? This is not a viable agenda for long term on chain governance.

For these reasons, we have identified information asymmetry as one of the biggest threats to proper governance. This is why we prioritized the release of Constellation’s first product: the UNIon, a blog aggregating information on Uniswap in the form of articles, data analytics and summaries of forum debates.

With this new home for Uniswap users, we aim to help you make decisions on current proposals, delegates and investments.

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We are all in this together

This also allows us to have a tool outside of the forum to clearly define our stance and have a more intimate dialogue with all interested users (in our Telegram chat).

As a preview of our future actions as Uniswap activist, here are some of our early beliefs:

(As of this article, the core team has not given any information on v3, so our stance is based on Uniswap on the 15th of December 2020)

  • Our first order of business is to enhance governance coordination — the current day to day decision-making of Uniswap is not on par with the role the protocol is supposed to have in the ecosystem. As competitors are nearing a flipping of TVL, is crucial to think of solutions. We have suggested the creation of a council to implement a pre-selected list of short-term changes in order to stop vampire attacks.
  • One of the biggest hurdles of voting with UNI is that it has to be in your wallet. You can’t stake it, use it as loan of be a Liquidity Provider. This prevents voters from having any utility from their tokens. It is crucial to bring more utility to holders as it would allow to extend our voting audience and incentivize “for free” some pairs.
  • While our first blog post is not the most decentralized solution, we still aim to become a gatekeeper of decentralization. We will vote against any stance threatening long term decentralized governance. For this reason, we have expressed our disapproval of VCs sitting in boards. Far from discrediting their skills, experience or network, we feel having an official board of institutional investors is the best way for regulators to have a grasp on regulating protocol governance.
  • Finally, we have been working with other protocols in order to create or develop the composability of Uniswap in other protocols.

Constellation is not your average delegate. Our aim isn’t to get your delegation in one protocol but to represent you and your interests in the whole ecosystem, and soon, our decision making will be decentralized.

Stay safe,

Maxime & Romain

Contellation Finance

Governance venture studio

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ROMAIN FIGUEREO

Written by

Governance troublemaker @Constellation

Contellation Finance

http://Constellation.finance is a governance venture contributing to on chain governance

ROMAIN FIGUEREO

Written by

Governance troublemaker @Constellation

Contellation Finance

http://Constellation.finance is a governance venture contributing to on chain governance

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