A clash has been going on between curve Finance as well as Mochi Finance following the latter’s attempt to leverage the governance mechanics of decentralized finance (DeFi).
Curve accuses Mochi of exercising a governance attack
Curve claimed that a significant amount of Mochi’s token named MOCHI has been minted by it and the firm has indirectly swapped the respective tokens for Ether. Following that, Mochi purchased a substantial quantity of CVX (Curve governance tokens). Ultimately, notwithstanding the warnings, the firm locked the bought CVX tokens, apparently to elevate the benefits for the personal USDM factory pool of Mochi. With this move, the Mochi would also get additional CVX rewards.
Curve asserted that the corresponding step was an obvious governance attack. Consequently, the emergency DAO of Curve announced that the liquidity providers are in danger and thus blocked any additional CVX emission specified for Mochi. It has been reported by Curve Finance that Mochi’s pool touched $100M in the liquidity, however other sources pointed out that it reached $170M in TVL (total value locked).
Response of Mochi’s founder
While Mochi has countered publicly, Azeem Ahmed (the founder of Mochi) has stated that there is no clash between Curve and Mochi, and concerns of the Curve Emergency DAO are reasonable. He expects that after the apprehensions’ alleviation, the reinstatement of the gauge will be considered adequate, irrespective of the strategic doubts of the influencers and whales. He acknowledged that a bold approach has been taken by Mochi to attain voting influence within the DAO. Ahmed also mentioned that a threat is seemingly posed towards DeFi Cartel by a minor player on the outer edge which could even threaten to launch a DeFi ecosystem being led by Convex and Curve.
Moreover, he described that several participants within the community of DeFi are of the view that the Emergency DAO of Curve ill-treated the situation, as well as discriminating a consumer is unsuitable in a protocol that should be open. Whereas a clear viewpoint has been taken by Curve against Mochi, some remarks have been voiced by the rest of the individuals as well as the project leaders. Andre Cronje (the founder of Yearn Finance) uttered apprehensions that more than 65% proportion of Mochi is undercollateralized. Other alleged Ahmed for organizing a rug pull on the company thereof “Mochi.”