Bitcoin Returns to $88K, Aave’s Governance Proposal Drama

Cryptocurrency markets have recovered a bit following last week's plunge as investor activity slowed over the holidays.

Bitcoin (BTC) fell to a weekly low of $86,561 before rebounding above $88,600 on Tuesday, according to TradingView data.

Demand for spot bitcoin exchange-traded funds (ETFs) remained weak, with $175 million in outflows on Wednesday, according to Farside Investors, marking the fifth straight day of net inflows.

In the broader cryptocurrency space, members of the Aave community have criticized their decentralized lending and borrowing protocol for what they described as a premature push to advance management's proposal for ownership of brand assets.

A proposal to return control of the protocol's brand assets and intellectual property back to the DAO was rejected on Friday by a majority vote.

The Aave management vote ends up being rejected after community pressure

Aave token holders have voted against a controversial governance proposal to put the protocol's brand assets under the ownership of the DAO.

On Friday, the snap election was closed with 55.29% voting “no” and 41.21% voting by ballot. Only 3.5% of voters supported the proposal.

The proposal asks whether Aave (AAVE) token holders should control Aave's domains, social handles, naming rights and other intellectual property through an entity under a decentralized autonomous organization (DAO). Supporters framed the move as a step toward decentralization and clarifying questions of brand stewardship.

The rejection has shut down the strained administration of Aave, one of the largest lending protocols in decentralized finance (DeFi). He pointed out how time, expansion and participation shape governance outcomes in DAO.

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DEX Adoption, HIP-3 Fuel $200 HYPE Matters As Rivals Threaten Hyperliquid's Dominance

Decentralized Perpetual Exchange HyperLiquid 2025 is among crypto's breakout projects, but competitors' lucrative reward systems are vying to attract investors.

Cantor Fitzgerald predicts that Hypeliquid's HYPE (HYPE) token will rise to $200 by 2035. Hyunsu Jung, CEO of HYPE treasury company Hyperion Defy, argued that the lawsuit would be fueled by the Hyperliquid Reform Proposal 3 (HIP-3).

“We see HIP-3 as the key driver of Hyperliquid's next phase of growth and a key enabler of the evaluation framework provided by Cantor,” Jung told Cointelegraph.

Perpetual swaps are futures derivative contracts that track the price of an asset but do not have an expiration date. Contracts maintain their value with the underlying assets through a funding mechanism that transfers payments between long and short position holders.

The market share of Eternal Futures DEXs rose from 2.1% to 11.7% in January 2023, according to a report by data aggregator CoinGecko.

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CZ proposed a solution to the poisoning after the investor lost 50 million dollars

Binance co-founder Changpeng Zhao proposed additional security measures to “eliminate” address poisoning, including wallet warnings and blacklists of suspicious accounts.

“All wallets simply verify that the address they receive is a ‘poison address' and block the user. This is a blockchain request,” Zhao wrote in a blog post on Wednesday.

Address poisoning is a form of phishing where fraudsters trick victims into sending small transactions to send crypto to illegal wallets. Unsuspecting users often copy and paste the attacker's address from their wallet history.

Phishing scams cost 6,344 victims more than $7.7 million in November, according to data from Fraud Sniffer. This number is expected to rise in December due to the loss of $50 million USDT per victim on Friday.

“Finally, wallets shouldn't show these spam transactions anywhere. If it's worth it [transaction] It's small, just check it out,” Zhao added.

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Athena's US dollar lost $8.3 billion due to a “loss of confidence” after the October crash

Athena's artificial dollar USDe has seen net inflows of nearly $8.3 billion since the main liquidity event on October 10.

According to a 10x Research report, the October selloff marked a turning point for the crypto market, reversing the bull phase into a bearish period. The crash wiped out the value of the $1.3 trillion crypto market, roughly 30% of its total capitalization at the time.

Athena USDE, which relies on structured hedges and hedges rather than traditional fiat stocks, has “experienced a high degree of overconfidence” in these conditions, the analysts wrote.

According to data from CoinMarketCap, USDe's market capitalization reached $14.7 billion on October 9.

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Change the Uniswap fee when the community vote is passed

The much-anticipated Uniswap protocol payment switch, dubbed “Unification,” has passed the threshold of 40 million votes needed to make the decentralized exchange protocol's biggest upgrade in its seven-year history and was set to go live later this week.

Uniswap Labs CEO Hayden Adams said on Thursday that following a two-day deadline for a successful vote, the Uniswap v2 and v3 payment converters will be replicated on the Unichain network, allowing more Uniswap (UNI) tokens to be burned.

The proposal is to burn 100 million UNI tokens from the Uniswap Foundation's treasury, and protocol fee discount auctions will be implemented to increase liquidity providers' returns.

The changes are expected to significantly improve UNI Token's supply-demand dynamics and make it a more attractive token to hold in the long term.

News of the union proposal sparked a nearly 40% rally in the UNI token in early November, taking it from $7 to $9.70 on November 11.

Uniswap is the largest decentralized exchange and has traded more than $4 trillion since its launch in November 2018. According to CoinGecko data, UNI is the 39th largest token by market cap, at $3.8 billion.

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Overview of the DeFi market

According to data from Cointelegraph Markets Pro and TradingView, most of the 100 largest cryptocurrencies by market capitalization ended the week in the green.

PIPPIN memecoin is the biggest gainer of the week, rising more than 41%, followed by the Canton (CC) token, which is up more than 25% on the weekly chart.

Thanks for reading this week's roundup of the most impactful DeFi developments. Join us next Friday for more stories, insights and lessons about this dynamic and evolving space.