Say Goodbye to Gas Fees: Anchorage Digital Introduces Gasless DeFi Voting for Institutions

Imagine being able to actively participate in the governance of your favorite DeFi protocols without worrying about those pesky gas fees. For institutional investors holding cryptocurrency with Anchorage Digital, this is now a reality! Anchorage Digital is leveling up the DeFi governance game by integrating Snapshot, a game-changing off-chain voting solution.

Tired of Gas Fees Eating Into Your Governance Power?

Let’s face it, gas fees can be a real barrier to entry in the world of DeFi governance. For every vote, you’d typically have to pay a fee to the network. These fees, especially during peak times, can be significant, making it less appealing for institutional clients to actively engage in the decision-making processes of the tokens they hold. Anchorage Digital recognized this hurdle and decided to do something about it.

Anchorage Digital & Snapshot: A Powerful Partnership for Gasless Voting

Anchorage Digital is integrating Snapshot, an off-chain, gasless multi-governance client, directly into their platform. This means their institutional clients can now vote on governance proposals for their held tokens without incurring any gas fees. Think of it as a streamlined, cost-effective way to have your voice heard in the DeFi space.

Here’s the lowdown on what this means for Anchorage’s clients:

• Gasless Voting: The most significant benefit – no more gas fees for participating in governance.
• Convenience: All voting happens directly within Anchorage’s secure custody environment. No need to move funds around.
• Increased Participation: Lowering the cost barrier encourages more active participation in DeFi governance.
• Off-Chain Efficiency: Snapshot records votes off-chain, keeping transaction details private and avoiding on-chain congestion.

How Does This “Gasless” Magic Work?

You might be wondering, how can voting happen without gas fees? The key is that Snapshot operates “off-chain.” Instead of recording each vote directly on the blockchain (which requires gas), Snapshot takes a “snapshot” of token holders’ balances at a specific time and tallies the votes off-chain. Popular protocols like AAVE, Lido, and BitDAO already utilize Snapshot for their governance.

While this offers incredible convenience and cost savings, it’s important to understand the trade-off. As Anchorage points out, since the votes are counted off-chain, there aren’t the same on-chain guarantees as traditional on-chain voting. The responsibility of enacting the results typically falls on the protocol team, often through a multi-signature wallet.

Which Tokens Are Supported?

Currently, Anchorage Digital supports over 60 ERC-20 tokens for gasless voting via Snapshot, with plans to extend support to all applicable future ERC-20 tokens. This broad coverage ensures that a wide range of institutional clients can benefit from this new feature.

Examples in Action: AAVE and Lido

Snapshot has already proven its value in real-world governance scenarios. For instance:

• AAVE: Snapshot has been used to gather votes on various upgrades and governance proposals for the AAVE protocol. It even provided a potential avenue for users who accidentally sent tokens to the wrong address to have their voices heard.
• Lido: A notable example is when LidoDAO, the governing body of Lido Finance, used Snapshot to vote on a proposal involving the allocation of LDO tokens to DragonFly Capital. Ultimately, token holders voted against the proposal, demonstrating the power of community governance.

Anchorage’s Expansion in Asia: A Sign of Growing Institutional Adoption

Anchorage Digital’s commitment to innovation extends beyond just governance. In October 2022, they announced an expansion into Asia, partnering with institutions like Bitkub, DreamTrade, and FBG Capital. This move highlights the increasing appetite for institutional-grade cryptocurrency services in the Asian market, where crypto adoption is particularly strong.

The Future of Institutional DeFi Governance

Anchorage Digital’s integration of Snapshot marks a significant step forward in making DeFi governance more accessible and efficient for institutional investors. By removing the friction of gas fees, they are empowering their clients to actively shape the future of the protocols they invest in. This move not only benefits Anchorage’s clients but also contributes to a more robust and decentralized DeFi ecosystem.

Key Takeaways:

• Anchorage Digital is offering gasless DeFi voting through Snapshot for institutional clients.
• This eliminates the burden of high gas fees for governance participation.
• Voting occurs securely within Anchorage’s custody, with no need to move funds.
• Snapshot is an off-chain voting mechanism used by prominent DeFi protocols.
• While convenient, it’s important to note that Snapshot relies on off-chain vote tallying.
• Anchorage supports a wide range of ERC-20 tokens for gasless voting.

In conclusion, Anchorage Digital’s adoption of Snapshot is a win-win for institutional investors seeking greater involvement in DeFi governance. By removing the financial barrier of gas fees, they are fostering a more engaged and representative ecosystem, paving the way for wider institutional adoption of decentralized finance.