Anchorage Opens DeFi Voting to Digital Custody Clients

Institutional clients of crypto custody firm Anchorage Digital can now voice their concerns over token offerings without paying hefty gas fees.

as of 16 May statementAnchorage will integrate the off-chain, gasless multi-governance client SNAPSHOT to allow its “token-holding community users” to vote on governance proposals with their tokens, without any gas fees.

It states that all ballots will be in the custody of Anchorage and there will be no movement of funds.

Snapshots are used by decentralized protocols such as AAVE (AAVE), Lido (LDO) and BitDAO. It records voting off-chain – meaning the transactions are not publicly recorded on the blockchain.

The advantage of this approach, according to Anchorage, is “convenience”:

“The settlement for such a facility comes in the form of on-chain guarantees; Snapshot voting is free as the counting of votes is done off-chain and thus does not require gas payments. The responsibility for implementing the decision is usually assigned to MultiSig, which is operated by the protocol team.”

Anchorage said it currently supports “over 60 ERC-20 tokens,” with plans to enable support for all ERC-20 tokens in the future.

Connected: Anchorage Creates Custody Network With Five Crypto Exchanges

In October 2022 it was announced that Anchorage had expanded Operation in Asia with five new institutional partners including Bitcube, DreamTrade and FBG Capital. It added that consumers in Asia have “adopted crypto with enthusiasm.”

SNAPSHOT has recently been employed to collect votes from AAVE and LDO token holders regarding the latest upgrades or governance proposals for each protocol.

The voting system also proved beneficial for AAVE users who accidentally sent their tokens to the wrong address.

In July 2022, LidoDAO, the governance body that controls Lido Finance, a liquid staking solution for proof-of-stake cryptocurrencies, sent a snapshot of 1% of LDO’s token supply to DragonFly Capital for $14.5 million. Voted on, which was rejected by token holders. ,

magazine: DeFi vs CeFi: Decentralization to Win?