Tron got accused of a governance attack on the DEFI lender Compound and now the members of the crypto think tank GFX Labs say a whale is trying to swing a vote in their favor so let’s read further in today’s latest Tron news.
The member of the GFX Labs governance division is sounding the alarm that a large investor could be trying to leverage large sums of capital and manipulate the on-chain governance for a DEFI protocol. The GFX Twitter handle called attention to a huge loan of Compound’s governance token COMP which was taken out by Justin Sun, Tron’s founder. The on-chain governance of DEFI protocols is often token-weighted and while the GFX characterized the loan as a governance attack, there’s nothing prohibiting the users from taking out loans and voting on the proposals they back.
An unplanned TUSD proposal has been proposed @compoundfinance to set TUSD’s collateral factor to 80% (currently 0%) https://t.co/Xf2oOEKJya
— GFX Labs (@labsGFX) February 4, 2022
Sun as the founder of Tron and now Grenada ambassador and permanent representative to the World Trader Organization is also a DEFI user with a primary address worth over $1 billion and it is tracked among on-chain sleuths. Sun, of course, hasn’t responded to any requests for comments by press time. The on-chain data shows that Sun’s wallet borrowed 99,000 COMP tokens worth over $13 million and then sent 102,000 tokens To Binance as the world’s biggest crypto exchange.
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An address that recieved $9 million worth of COMP tokens from Binance, proposed adding TUSD as collateral on Compound that will allow Compound users to take out loans against the TUSD holdings. It is quite impossible to verify tht the proposal address belongs to Sun but according to the GFX reprots, the pattern is similar to a vote that took place on the MakerDAO governance. One contributor noted:
“Justin borrowed a large amount of MKR from Aave. Presumably, this was to vote on a poll to create a TUSD-DAI Peg Stability Module. After it was noticed, he returned the MKR before voting.”
Creating a stability module will allow the users to swap TUSD for MakerDAO’s DAI stablecoin at a fixed rate and in the poll, the community voted the proposal down before it was able to move to formal voting. Tron got accused because of Justin sun once again. Sun is listed as an Asia markets advisor of the TUSD website and according to a blog post from 2020, the ownership of TUSD will be moving over to the Asia-based consortium and will work with Tron to develop TUSD.
Other stablecoins tried similar patterns in the past few weeks as the need for utility pushes platforms to leverage the bribe protocols. There are dozens of stablecoins now on the market which is dominated by centralized options like USDC and Tether but a growing number of services now cater to helping the users in integrations.
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