CandleFocus

Compound DAO faces calls for more oversight amid conflict of interest claims

Author: Content Editor
Compound, a decentralized finance (DeFi) lending platform, is facing calls to onboard additional risk managers in response to a governance proposal made by current manager Gauntlet. Chainrisk has also entered the picture, calling for more transparency and pointing to a potentially linked unlabeled address. Gauntlet's proposal suggests using competitor Morpho to launch new markets on the Polygon network, which they claim will be beneficial for Compound, Morpho, and Polygon. Aave, DeFi's biggest lending platform, has threatened to leave the network in response to a controversial proposal involving bridge funds and yield farming. Gauntlet defends its proposal, citing ongoing lawsuits, eroding market share, and other issues. It is not the first time Gauntlet, Aave, and Morpho have clashed, with tensions arising last year as well. Overall, the impact of the recent crypto sell-off and liquidations continues to put pressure on the DeFi sector.

Related News