HomeNewsAave's Lens Protocol Embraces Open Governance with Lens Improvement Proposals

Aave’s Lens Protocol Embraces Open Governance with Lens Improvement Proposals

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  • Lens Protocol introduces an open governance model, Lens Improvement Proposals (LIPs), encouraging community participation in decision-making processes.
  • Two out of the three active proposals focus on the development of open standards for algorithms and metadata.

Lens Protocol, a decentralized social media platform spun off from the DeFi titan Aave, has unveiled a novel open governance model that fosters community participation in the decision-making process.

The newly introduced Lens Improvement Proposals (LIPs), inspired by Ethereum and Aave’s own improvement proposal models, aim to provide a framework for developers, creators, and users to contribute to Lens’s future development.

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Currently, three active proposals are on the table. The first proposal establishes the open governance model. The subsequent two proposals are centered on open standards: the second encourages third-party algorithms and machine learning (ML) services to integrate with Lens Protocol, while the third focuses on the classification, organization, and labeling of metadata within Lens.

This move towards a more open governance model via LIPs comes a week after the social media platform secured $15 million in funding from renowned investors such as IDEO CoLab ventures, Palm Tree, Uniswap CEO Hayden Adams, OpenSea co-founder Alex Atallah, entrepreneur Balaji Srinivasan, and Polygon co-founder Sandeep Nailwal.

The LIPs GitHub page, featuring contributions from Aave founder Stani Kulechov and Aave senior engineer Josh Stevens, highlights that LIPs serve as the foundation to maintain the flexibility and uniformity of Lens Protocol across all potential applications, enhancements, and ideas within the community.

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On June 12, an AAVE proposal aimed at limiting the accumulation of additional debt by a specific account sparked controversy. Some participants suggested this proposal violated the principle of censorship-resistance or “neutrality” in decentralized finance, or DeFi.

Financial modeling platform Gauntlet, the proposal’s author, expressed concerns that the Ethereum address, allegedly owned by Curve (CRV) founder Michael Egorov, had accrued $67.7 million worth of debt in USD Coin and Tether via the AAVE v2 protocol, using $185 million of Curve tokens as collateral.

The proposal recommended that the AAVE decentralized autonomous organization (AAVE DAO) implement a patch to freeze any further uses of CRV as collateral for loans, effectively limiting the account from amassing more debt.

Some forum members supported the proposal, criticizing the account for its high debt level. Others defended the account, arguing that the owner might believe CRV tokens are severely undervalued, hence increasing their use as collateral as the price declines.

Marc Zeller, founder of the Aave-Chan Initiative, cautioned against violating DeFi’s core ethos of neutrality, stating,

“Users should be free to utilize the protocol as they see fit.”

The proposal remains a “recommendation” as of June 16, yet to be formalized into an AAVE Improvement Proposal (AIP) that can be voted on by the DAO. The ongoing discourse underlines the blockchain community’s continual exploration of the boundaries of censorship resistance.

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Jack Williams
Jack Williams
As a Blockchain Analyst, I specialize in analyzing the performance of decentralized systems and optimizing their efficiency. Through data analysis, I provide insights on blockchain technology, smart contracts, and cryptocurrencies to help businesses make informed decisions and improve their operations.
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