The Dharma cryptocurrency trading platform has announced that it would be enabling bank and fiat payments for tokens on Uniswap after the second governance proposal it made was rejected.
The announcement stated that it would allow Dharma users to buy Uniswap tokens directly from their bank accounts. However, the offering was very limited as it only applies to thirteen US states and has a limit of $25,000 per week.
The exchange stated that first-time users on Uniswap will struggle due to the convoluted process of buying ETH from exchanges, waiting for the purchase to clear, transferring it to Metamask, and then dealing with gas fees.
Dharma added that this was akin to buying Bitcoin in 2011, in that it was “certainly possible for the technically savvy on exchanges like Mt. Gox, but time-consuming and intimidating for the average investor.”
This has essentially compressed the experience for investing in DeFi into three steps, just like Coinbase did in 2012. Users (in the limited locations) can download the app, connect their bank account, and tap to purchase.
It did not mention how fees would be structured.
Dharma’s Second Rejection
The move comes on the heels of Dharma’s latest governance proposal getting nixed. For the second time, Dharma has tried to influence the outcome of governance proposals on the Uniswap DEX, and for the second time, it has been rejected failing to reach quorum despite controlling the majority of votes.
As reported by BeInCrypto, the proposal would have extended September’s huge UNI token airdrop to proxy users, specifically Dharma customers. Several community members were pleased with the outcome as another airdrop would have diluted the token supply.
Dharma is one of a few UNI whales that can dominate the voting process but, just like the first proposal which would have given it even more power, it failed to reach the 40 million votes to pass.
Uniswap Turns Two
In a related development, Uniswap founder Hayden Adams recently celebrated the decentralized exchange’s second ‘birthday’ with a retweet of the original launch announcement that was made on Nov 2, 2018:
Over the past two years, the DEX has grown to be the largest DeFi protocol in the sector with a current total value locked of $2.74 billion according to DeFi Pulse.
That record TVL has given Uniswap a market share of just under 25%, ahead of Maker which has a current TVL of $2 billion.
Uniswap’s native UNI token is down nearly 6% on the day, trading hands for $2.13.