Sam MacPherson
Sam MacPherson|Feb 19, 2025 16:44
Some color on the recent governance attack on Sky: Previously, @ImperiumPaper has harmlessly been politicking to gain a position of being the anti-Sky voice. This past week, he crossed a line. In cooperation with @Nexo (an extremely sketchy exchange), the idea was to take over Sky governance with a plan that involved manipulating oracles to liquidate Rune and seize control quickly in the confusion. The reason this is an attack and not just someone with more voting power making an alternative decision is due to the price manipulation tactics to liquidate the larger voter. I am not a lawyer, but I suspect this borders into fraud territory, and there have been cases in the past that have gone to court. There is also evidence these parties were planning to loot the treasury to fund this attack. This is clearly not in the interest of USDS holders as this is reserved as insurance for the protocol. With regards to the vote to change the Smart Burn Engine: these changes are such that the larger holders can vote with MKR that is also borrowing stablecoins. On secondary markets like Aave, the MKR can be borrowed, allowing an attacking party to amplify their voting power without gaining exposure to MKR. The rules are such that a plurality of the vote controls the system, and in this case, the attacking voters did NOT have a plurality of the vote. It's time for @ImperiumPaper to be excised from any position he has in crypto. He sits on @Optimism grants council and other places with GFX Labs. This type of attack should not be tolerated.
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