Anchorage Digital opens up DeFi voting for custody clients

Anchorage has joined other platforms like AAVE, Lido, and BitDAO in adopting the off-chain voting platform called Snapshot.

Anchorage Digital opens up DeFi voting for custody clients

The voting process will be conducted within Anchorage's custody without any movement of funds.

Snapshot is a decentralized protocol used by platforms like AAVE, Lido (LDO), and BitDAO. It records voting activities off-chain, which means that transactions are not publicly recorded on the blockchain.

Anchorage considers the main advantage of this approach to be its convenience. Currently, Anchorage supports over 60 ERC-20 tokens and has plans to expand its support to include all relevant future ERC-20 tokens.

In October 2022, Anchorage expanded its operations to Asia by partnering with five institutional partners, including Bitkub, DreamTrade, and FBG Capital. Anchorage noted that consumers in Asia have shown great enthusiasm for adopting cryptocurrencies.

Recently, Snapshot was used to gather votes from AAVE and LDO token holders on various protocol upgrades and governance proposals. Additionally, the voting system has proven helpful for AAVE users who mistakenly sent their tokens to the wrong address.

In July 2022, LidoDAO, the governing body of Lido Finance, a liquid staking solution for proof-of-stake cryptocurrencies, conducted a Snapshot vote. The vote involved a proposal to transfer 1% of LDO's token supply to DragonFly Capital for $14.5 million. However, the proposal was rejected by token holders.