Andreessen Horowitz’s a16z votes against proposal to deploy Uniswap v3 on BNB Chain using Wormhole
Please note that we are not authorised to provide any investment advice. The content on this page is for information purposes only.
Andreessen Horowitz’s crypto venture capital unit, a16z, has voted against the proposal to deploy Uniswap v3 on the BNB Chain using Wormhole. The proposal in question was submitted on February 2 by 0xPlasma Labs and is slated to close on February 10.
Andreessen Horowitz votes against Uniswap v3 deployment on BNB Chain using Wormhole
The governance proposal passed the temperature check with 20 million votes, equivalent to 80.28%, approving it. Only 4.9 million of the tokens, equivalent to 19.72% of the supply, voted against it. However, Andreessen Horowitz changed how the vote progressed, with the VC using 15 million UNI tokens to vote against the proposal.
At the time of writing, only 4.9% of the UNI tokens had participated in the vote, which is equivalent to 49.63 million votes. The voting period will end on February 10and there are currently disagreements over the bridge that should be used to deploy Uniswap v3 on the BNB Chain.
Andreesen Horowitz wants to use LayerZero
The governance proposal wants Uniswap v3 to be deployed on BNB Chain using the Wormhole bridge. However, a16z wants the project to use LayerZero as an interoperability protocol that will support the use of Uniswap on the BNB Chain.
The partners of a16z have said they are willing to vote for LayerZero as the deployment bridge. They mentioned their preference for the interoperability protocol during the temperature check. The partners noted that if the governance proposal were to deploy Uniswap v3 on BNB Chain using LayerZero, they would have used all their token holdings to support it.
“To be totally unambiguous, we at a16z would have voted 15m tokens toward LayerZero if we were technically able to. And we will be able in future Snapshot votes, for the purposes of a “temperature check,” please count us this way,” said the head of engineering at a16z, Eddy Lazzarin.
In the governance proposal, 0xPlasma Labs says that the stakeholders in the Uniswap ecosystem have shown interest in trust-minimized bridges that can be used to support governance to bring Uniswap v3 to BNB Chain. The proposal noted a careful assessment of four bridges and an intense discussion on the same, with the community settling for Wormhole. LayerZero was the second-most preferred bridge getting 17 million votes.
Last year, the Wormhole bridge was affected by one of the largest hacking attacks in the decentralized finance (DeFi) space. The exploit led to the loss of 120,000 wrapped Ether tokens valued at $321 million. The attacker detected a vulnerability within the protocol’s smart contract and minted 120,000 wETH on the Solana side of the bridge without using any collateral. The tokens were later swapped for Ether.
LayerZero, the bridge that a16z prefers to use for the deployment, is part of the venture capital’s portfolio. In March last year, the interoperability protocol secured $135 million in a funding round led by Sequoia and a16z. After this funding round, the proposal reached a $1 billion valuation.