This Week In DeFi – May 20

This week the Terra community is currently voting for or against a fork of the network, with a potential new chain that removes the UST stablecoin from the equation. Although the current governance voting is skewed highly in favor of the fork, a large proportion of the community appears to be highly against it – instead looking for a large-scale burn of existing LUNA tokens on the original chain. A preliminary vote in the governance forum was highly against the fork, with more than 90% of votes being against it.

Time to vote #LUNAtics 👇 #TerraIsMoreThanUST https://t.co/Y3wLYK2Qwn

— Terra 🌍 Powered by LUNA 🌕 (@terra_money) May 18, 2022

Mainstream trading app giant Robinhood has announced that it will be launching a non-custodial web3 wallet, to enable users to participate in DeFi and NFT markets. A blog post by Robinhood says the wallet will not charge network fees – however how that will be achieved has not yet been disclosed.

Trade and swap crypto with no network fees. A web3 wallet from us. Get early access: https://t.co/qonXj80BEB pic.twitter.com/qLjByPA4ty

— Robinhood (@RobinhoodApp) May 17, 2022

Aave has launched its decentralized social networking platform on Polygon. Lens Protocol is designed to make it easy to build social media DApps, and is reportedly already equipped with 50 different compatible apps at launch.

Bloom into a new era of social 🌿 Lens Protocol is ready for you to build the next gen of social media apps. The garden is open… https://t.co/bhzgxs9JFt pic.twitter.com/m2IqtIfb7P

— LensProtocol.lens 🌿 (@LensProtocol) May 18, 2022

The Uniswap Community is currently voting on whether the protocol should deploy on two new chains: Moonbeam and Gnosis Chain. If both chains are approved, Uniswap will officially be active on seven different chains – the majority of which are currently Ethereum-based.

📜 There are two ongoing Uniswap Governance votes for new chain deployments:@gnosischain and @MoonbeamNetwork

Delegates can vote here: https://t.co/s1Uq1Ii8re

— hayden.eth 🦄 (@haydenzadams) May 16, 2022

Adoption and development are still moving along nicely, as projects somewhat continue to silently raise funding, launch and expand to new networks. Decentralized social media is getting a significant new test as DeFi powerhouse Aave launches Lens Protocol, while existing DeFi projects such as Uniswap begin to test the waters on newer networks like Moonbeam and Gnosis. With Ethereum’s Proof-of-Stake coming to public testnet very soon, we are entering a very exciting period in the decentralized world indeed – if one can put aside price action and the market-wide purge.

Nascent Layer-1 chains and scaling solutions alike are about to enter a nice and slow period of adoption and testing, perhaps to the benefit of developers and the wider ecosystem. A slower run-up in use and adoption during a bear market will reduce the downfalls of irrational exuberance, leading to healthier organic growth and less room for large errors or hacks. Healthy ecosystem development is here; no time is better to try out new protocols, test the future of finance, and maybe even collect some nice retroactive airdrops along the way.

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