The Top Governance Tokens That Are Making The News in The DeFi Sector

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Yearn Finance shuns governance token with new stablecoin lending protocol

Yearn Finance is launching a MakerDAO like stablecoin lending protocol with no governance token.

Popular decentralized finance (DeFi) platform Yearn Finance has announced a new lending protocol dubbed StableCredit.

StableCredit combines tokenized debt stablecoins, lending, and single-sided automated market makers to offer what it describes as “a completely decentralized lending protocol” reminiscent of MakerDAO (MKR).

Users can deposit USD Coin (USDC) to mint StableCredit USD at a ratio of up to 75%, which can then be then exchanged for other crypto assets. To release the locked USDC, users must deposit the borrowed StableCredit USD back into the protocol.

A September 10 announcement states that StableCredit’s user interface is currently being finalized, predicting the protocol will be publicly launched “in the coming weeks.”

The protocol notably will not distribute a governance token to users — a tactic frequently used to incentivize the use of new DeFi platforms. Yearn Finance’s own governance token YFI has been a major beneficiary of the recent DeFi bubble, gaining more than 800% during August to tag an all-time high above $38,000.

Earlier today, Yearn Finance’s creator Andrew Cronje expressed a certain amount of disdain for the current state of the DeFi sector:

Yearn has garnered popularity through its variety of lending protocols, with its ‘Vaults’ recently attracting investors with the promise of high returns and reduced transaction fees through pooling.

YFI has gained 11.4% over the past 24 hours, with the market rallying in response to Coinbase Pro announcing it will support the token from September 14.

DeFi project Curve launches its governance token early after anonymous developer front-run and deployed contracts

DeFi project Curve Finance appears to have been forced to launch its DAO (decentralized autonomous organization) and governance token CRV after an anonymous developer front run and deployed smart contracts without the knowledge of the Curve team.

The anonymous developer, with the handle @0xc4ad, tweeted Thursday from a newly created account that Curve’s DAO is “ready to rock.” The developer spent 19.9 ETH (~$8,000) in fees to deploy the contracts.

Since the contracts were deployed, some users started staking yCRV tokens, which represent shares of Curve’s liquidity pools, to earn CRV tokens. This led to accusations of “pre-mine” among the DeFi community.

Around 80,000 CRV tokens were reportedly pre-mined before the Curve team verified the deployed contracts. Curve was initially “skeptical,” but later found out that the deployment was with “correct code, data and admin keys.”

“Due to the token/DAO getting traction, we had to adopt it,” said Curve, adding: “The launch has happened.”

Some observers have termed the early launch of Curve’s DAO and token as “shady.” The nature of permissionless networks means anyone can deploy the code.

Crypto exchanges, including Binance, OKEx and Poloniex, have supported the unexpected launch of CRV. These exchanges are set to list the token soon.

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