The Defi Education Fund (DEF), a firm supported through UNISWAP. It suddenly announces to move half of its assets to a stable asset preferably into USDC. The firm is defending against the sudden conversion of its assets.
DEF Controversies Against UNI Liquidation
At present, there are a lot of arguments and misunderstandings about the DEF and the decentralized exchange Uniswap. The DEF is defending against the evolving controversies about its UNI liquidation. The firm performs a lobbying act to increase the DeFi sector level of adoption.
Moreover, the DEF converted 500,000 UNI for $10 Million USDC in order to fund the efforts of the DEF. The Genesis trading platform supports the conversations. Thus this lobbying act Uniswap proposal indicated it would liquidate the 1M UNI over 4-5 years.
With the help of @GenesisTrading, we sold 500k UNI for ~$10.2M USDC in order to fund the efforts of the Defi Education Fund.— Defi Education Fund (@fund_defi) July 12, 2021
In the next 24 hours, we will be sending 500k UNI to Genesis and receiving ~$10.2M USDC in return.
In addition, DEF committee member Larry Sukernik moved 2,612 UNI worth $50K around the time of the fund’s $10M sale. In reference to his act, a new policy was issued. It clearly says that DEF members can no longer make UNI transactions within 7-days.
In regards to this, the firm says,
“The vast majority of DEF’s expenses will be dollar-denominated.” And that diversifying half of the funds into a stable asset “provides the DEF with a sustainable budget to weather any market downturns.”
DEF Justifies the Issue
The DEF organization justifies the sale of the Uniswap tokens as it plans to begin its work and fund future operations. More so, regulators and policymakers globally are now watching DeFi closely. Additionally, DEF is working to provide a transparent record of all its activities.
Notably, all these funds were a donation from Uniswap funds. The firm in turn raises a proposal to Uniswap. It states, due to the dynamic and unpredictable state of global policy proposals, we believe the grant-making committee should have considerable discretion to allow for flexibility and speed.
Thus, the DEF will appoint a policy director to manage the annual calculations of the firm. And so, it plans to use a Failsafe tool that allows Uniswap governance to block transactions and get back funds from DEF.
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