Boxmining v2

Author: benson

  • Base Protocol ($BASE): a rebasing token to cover all cryptocurrencies?

    Base Protocol ($BASE): a rebasing token to cover all cryptocurrencies?

    Base Protocol ($BASE) created a token with a value pegged to the total market capitalization of every cryptocurrency available in the market. The purpose is to diversify a person’s investments and expand their exposure to a lot of cryptocurrencies that they would not have otherwise availed from existing traditional investment vehicles. 

    This has helped investors because trading on the cryptocurrency market has always been challenging. Especially when the performance of some coins varies a lot from each other. There are big gainers and big losers. In addition, choosing which digital currency to invest in can be truly difficult at times considering their inherent risks. Fortunately, Base Protocol’s token aims to solve this problem.


    Learn more about Base Protocol and how rebasing works in our debate with Nick Ravanbakhsh, co-founder of Base Protocol.

    EPIC Debate: Are “Rebases” Useful Financially? – With Base Protocol

    Background

    Nick Ravanbakhsh and Dylan Senter, founders of the Base Protocol, started the project to address the lack of a crypto index fund product for the cryptocurrency market. They came up with the idea to establish a basket of digital assets that track the market.

    Both of them are also co-founders of Spectiv, a digital token designed as a rewards system for content creators, aiming to do away with the advertising intermediaries like YouTube or Facebook.

    Base Protocol’s key team members also include Chris Peña (Head of Development), who has over 10 years of experience being a developer for systems that span multiple industries,and Based McGee (Head of Development — Solidity), who has 10 years of experience being a software engineer.

    What is Base Protocol?

    Base Protocol is an Ethereum-based synthetic token that has its price derived from the value of all digital assets in the cryptocurrency market. You can think of it like a stock index. It functions as a trading vehicle where the price is dependent on the movement of all other stocks held in its particular market.

    Through Base, investors can participate in the cryptocurrency market with the Base Protocol index mitigating risk.

    Rather than simply speculating on the numerous cryptocurrencies that pop up almost daily, investors can spread their risk by simply investing in Base Protocol. This means that they can have a stake in every successful coin, at the same time, have a more balanced risk exposure.

    And for as long as the cryptocurrency market continues to grow, you cannot lose. Basically, this project is geared to those who believe in the nascent industry’s long-term potential.

    Features of Base Protocol

    Base Protocol as a Synthetic Asset

    A synthetic asset in finance is a tool designed to produce the same effects as investing in another asset (called the underlying asset). However, it also alters the key characteristics of the underlying asset.

    This is effectively the engineering mechanism behind the Base protocol, which is a synthetic asset that simulates the performance of the cryptocurrency market. To do this effectively, it is built with some important features in place.

    Elastic supply

    BASE’s value is designed to be the combined value of all cryptocurrencies in the market at a ratio of 1:1 trillion. Hence Base Protocol is built to always achieve equilibrium with the market cap of all cryptocurrencies (target price). This means that its supply could also change depending on the current state of the market. Through its rebasing method, BASE could ensure that it can reconcile the difference between the value of its coin and the total market cap for cryptocurrencies.

    Rebasing- how does it work?

    Rebasing is the term used for the process by which a synthetic asset’s price is restored in equilibrium to the underlying asset. BASE’s rebasing mechanism adjusts its total supply until the market price reaches the target price.

    While this protocol functions to ensure that the market price of BASE always correlates with the target price – it often only manages to influence the corrections. It is left to market actors to respond to rebases to correct prices.

    Rebase process
    Rebase process (Image credit: Base Protocol whitepaper)

    Example

    • t0 — An investor buys 1 BASE with a market price $1
    • t1— The market price of BASE goes up to $2 – out of sync with the target price of $1
    • t2 — To restore the market price’s equilibrium to target price, BASE’s total supply is adjusted in proportion to the difference. This is a “rebase”, and the process is called a “rebase event”.
    • t3 — Regardless of the rebase event, the investor’s net $ balance and his percent ownership of the total supply are always constant.

    BASE Token ($BASE)

    Base’s token ($BASE) is the token associated with the Base Protocol index and is both itself a cryptocurrency and a measure of the cryptocurrency market as a whole. It serves as a trading instrument that enables individuals to make investments based on the whole cryptocurrency market, instead of just a single or few digital asset selections.

    BASE’s value follows the ratio of 1:1 trillion, based on the whole market cap for cryptocurrencies. For example, if the market cap is at $800 billion, the value of one BASE is $0.80.

    The protocol is based on the Ethereum blockchain and can be bought on Uniswap. The price feed uses Chainlink’s decentralized oracle network.

    While BASE is becoming more popular as an investment instrument, it can serve other specific purposes too. Here are some of the other features that the $BASE token can be used for.

    Uses for $BASE token

    Price Reference

    Traders trying to analyze the potential movement of a particular coin could track its price with the value of BASE to determine how they fare against the whole crypto market. This can even be better than just comparing altcoins with BTC because it shows an overview of the whole crypto economy. 

    Hence $BASE is intended to be a single token that allows an investor to speculate on all crypto assets simultaneously. This way, they don’t have to buy any specific coin or invest in a select few and can spread their stake across the entire industry.

    As long as the investor is optimistic about the industry’s future, they can invest in the market as a whole.

    Safe Haven

    According to the Team, purchasing BASE allows holders to make safe investments, instead of just selecting a single digital asset.

    This is because cherry-picking cryptocurrencies into a portfolio opens the investor to the risk of loss — seeing how volatile the market can be. People might also miss out on the emergence of the rapid rise of any new currency.

    By investing in $BASE, however, the idea is that one can mitigate the risk of exposure of individual coins while enjoying the rest’s potential gains.

    Price Reference

    As a market tracker, BASE’s price is indicative of the total market cap of the crypto market. Crypto investors already track the performance of altcoins in relation to bitcoin instead of USD.

    The performance of any altcoin in relation to bitcoin is more a more important measure for the decentralized economy. But even better would be to use $BASE as the price reference. Instead of just BTC, the trader can see how well any altcoin performs against the entire crypto market.

    Lending Instrument

    BASE can be utilized as a hedge for leveraged crypto trading. It can be considered an alternative to borrowing in BTC since it is less volatile. For example, if the value of BASE drops and they have to repay the loan they made, they can suffer less in terms of losses since it depends on the overall drop in the market.

    Base Cascade

    BASE Cascade is a program on the platform designed to reward BASE holders. This is because it also serves as their contribution to the liquidity of Uniswap’s pool. In order to take part in the Cascade program, users have to lock their BASE and ETH on the Uniswap liquidity pool. They get a percentage of the transaction fees based on the volume of trading in the pool as a reward.

    After they have deposited their BASE and ETH on Uniswap, they are given LP tokens, which is the token that they can stake to claim their rewards on Cascade.

    At first, the rewards multiplier for Cascade participants is at 1x. 30 days after they are staked, it increase to 2x. 60 days after, the multiplier becomes 3x. The increase in the multiplier happens everyday until it reaches the ceiling point, which is at 3x.

    Participation in Cascade is merely optional. Only the user can decided how much liquidity they want to contribute. Furthermore, they can withdraw at any point in time.

    Conclusion

    Devising new ways to expand the investment opportunities for the cryptocurrency market serves the purposes of adoption and new use cases. Base Protocol’s initiative to create a product that expands the exposure of its users to the whole crypto market can be a convenient entry point for fresh investments.

    Some of the factors affecting the arrival of new entrants to the crypto space include the volatility of some coins and the difficulty in selecting the best-performing coin. With Base as one of their options, not only are investors given a much safer alternative to investing in single digital assets, they are also given the opportunity to speculate on the crypto market as a whole. Given that this project could potentially bring new interest to the space, we can expect a more vibrant community if the project becomes successful.

    Disclaimer: Cryptocurrency trading involves significant risks and may result in the loss of your capital. You should carefully consider whether trading cryptocurrencies is right for you in light of your financial condition and ability to bear financial risks. Cryptocurrency prices are highly volatile and can fluctuate widely in a short period of time. As such, trading cryptocurrencies may not be suitable for everyone. Additionally, storing cryptocurrencies on a centralized exchange carries inherent risks, including the potential for loss due to hacking, exchange collapse, or other security breaches. We strongly advise that you seek independent professional advice before engaging in any cryptocurrency trading activities and carefully consider the security measures in place when choosing or storing your cryptocurrencies on a cryptocurrency exchange.

  • WAX ($WAXP): The King of NFTs?

    WAX ($WAXP): The King of NFTs?

    WAX Protocol ($WAXP) stands for Worldwide Asset eXchange. They are one of the safest and most convenient ways to create, buy, sell and trade virtual items i.e. non-fungible tokens (NFTs) through an integrated DPoS blockchain platform designed to work hand-in-hand with a microservice layer to improve the digital goods market’s infrastructure. Obtaining WAX knowledge has enabled innovators to develop a highly-connected and sophisticated marketplace that has brought a lot of value in digital goods projects.

    This information here will help you learn how to incorporate the WAX Protocol within the WAX Platform and how the two tools complement each other. It’s worth noting that the WAX Platform is composed of the WAX Protocol and a microservice layer.

    Learn more about WAX with our interview with Evan Vandenberg, Director of Business Development at WAX.

    Profitable digital collectibles and blockchain gaming (with WAX blockchain)

    Background

    The WAX platform was founded by William Quigley and Jonathan Yantis, together they have vast experience in blockchain technology. Quigley is also the Managing Director of Cashel Enterprises, a cryptocurrency-focused investment vehicle which has incubated and invested in over 40 blockchain and cryptocurrency projects. Meanwhile, Yantis also works as WAX’s CEO.

    The global growth of the digital goods marketplace has experienced enormous challenges for the past decade, but WAX technology has helped in finding solutions that spur the development of the sector. Although some users think that the technology has arrived late when challenges are already overwhelming, it’s actually the perfect time since blockchain has matured enough to satisfy the requirements for the WAX system to succeed.

    As the digital goods market continues to expand, it’s essential to acknowledge that tokenized consumer products and virtual items have played an instrumental role in blockchain growth. Virtual items like in video games alone have generated more than USD$140 billion for the market. On the other hand, tokenized consumer products have realized over USD$1.8 trillion.

    Considering that WAX attempts to offer remedies for a marketplace with a combined market value of over USD$2 trillion, it’s easy to realize the magnitude of the problem. The first year of incorporating WAX Protocol operations on major players like VGO and dApps has realized over USD$150 million worth of trading volume.

    What is WAX?

    Wax is a marketplace for digital assets, serving more than 400 million online players that sell, buy, and collect in-game items. Their suite of blockchain-based tools allows people to trade digital or physical items instantly and securely to anyone in the world. WAX’s platform brings together a community of collectors and traders, buyers and sellers, creators and gamers, merchants, creators of dApps and even game developers.

    Examples of what WAX can do include buying and selling gift cards to people across the globe, or building your own online store using the B2B tools created by WAX. WAX also allows people to create NFTs and send them to others.

    WAX Blockchain

    The WAX network works on a consensus model that relies on various WAX Guilds to enhance blockchain production. WAX utilizes Delegated Proof of Stake (DPoS), which depends heavily on WAX Guilds to ensure success in blockchain generation.

    The WAX ecosystem has witnessed considerable growth due to the incorporation of the WAX Token Model, which is designed to ensure success in various aspects such as voting, staking, and rewards. The Wax Staking Reward is a feature that has encouraged community participation because it allows users to vote and access rewards.

    With WAX tokens, users have immense options to explore. For instance, if staked WAX tokens haven’t been placed, a token holder will require platforms such as Scatter and Lynx to automate the process.

    WAX Tokens ($WAXP)

    WAX tokens ($WAXP) power the entire WAX ecosystem. They are used to reward participants in the chain and enable contributors to receive ten times the number of tokens purchased. This strategy makes it easier to calculate all microtransactions on the platform.

    One benefit of owning WAX tokens is that you get to earn even more tokens by voting for WAX guilds. This is called the WAX staking reward. This process is hassle-free and takes just a minute or two to join. Furthermore, you can unstake your tokens at any time.

    WAX and DeFi? WAX’s new tokenomic model explained

    In a recent announcement, WAX mentioned they will have a new tokenomic model hoping to capitalise on the rapid growth and popularity of NFTs and decentralised finance (DeFi). Their plan is to link the value generated from creating, selling and trading NFTs to Ethereum. WAX considers it different from other DeFi platforms because they consider these activities to be able to provide a sustainable source of value to stakers.

    How the new WAX inter-blockchain tokenomic model would work is that the operational functions of NFTs would still be done on the WAX blockchain, whilst Ethereum will become, “…the capital vault of the WAX NFT empire”. There are 4 components to this new tokenomic model, namely:

    • WAXP to Ethereum bridge: this new bridge will enable WAXP token holders to convert their tokens into WAXE.
    • WAXE: WAXE is a new Ethereum ERC20 utility token. Participants of the WAX tokenomics will need to burn their WAXP tokens to get WAXE tokens via the Ethereum bridge. They would then stake the WAXE in the Ethereum Distribution Contract.
    • WAXG: WAXG is a new Ethereum ERC20 governance token which will be distributed to WAXE stakers based on a set timetable and proportionate to their percentage of the WAX Economic Activity Pool. Token holders will be able to govern the allocation and distribution of economic value on the platform.
    • WAX Economic Activity Pool: This is a smart contract which will accumulate a percentage of generated WAX fees to be converted to ETH for distribution to WAXE stakers or given to WAXG token holders that decide to burn their tokens.
    WAX tokenomic process
    WAX tokenomic process (Image credit: Medium)

    For full details of WAX’s new tokenomic model, check out their article on Medium.

    WAX Guilds and Rewards

    A WAX blockchain contains 21 WAX Guilds that qualify to earn a reward. Remember, blocks can only be produced after the chain meets the threshold to earn rewards. The rewards are awarded depending on the number of blocks that every WAX Guild can produce. Standby Guilds are considered as backup operators that help to generate a chain on request.

    WAX Performance Metrics

    WAX has been configured in such a way that it releases two blocks per second. It’s worth noting that each WAX Guild can only produce one block at a time. If a block fails to come out at a specific time, other blocks will jump the queue to ensure a continuous process.

    A block that has been skipped will contend for a space in the memory pool to compete for guilds’ inclusion in the next turn. More than 3000 blockchains are usually transacted each second in the WAX system. The transaction rate is two times swifter than the VISA system can procure in the same period.

    The Future of WAX technology

    WAX Platform doesn’t only work to offer remedy for the current problems but also offers a roadmap for future operations. WAX Developer Hive is tasked with the duty of technical service provision, tutorials, and other simulations. Besides, WAX developers equally provide vital resources that make implementations successful.

    The technology has also incorporated features that will make it convenient to evaluate whether the system passes the transparency test among communities.

    Also, there’s room to allow interoperation with other chains to enhance performance. NFTs are among the candidates that need microservices and can thrive with the WAX Platform.

    Conclusion

    Gamers from across the world can substantially benefit from its secure and decentralized digital items marketplace. As WAX Platform continues to provide more improvements, developers will find several ways to create features that would better serve gamers in terms of digital goods trading.

    The platform is also expected to play an instrumental role with digital media and is set to welcome over three billion users in the coming five years.  

    Disclaimer: Cryptocurrency trading involves significant risks and may result in the loss of your capital. You should carefully consider whether trading cryptocurrencies is right for you in light of your financial condition and ability to bear financial risks. Cryptocurrency prices are highly volatile and can fluctuate widely in a short period of time. As such, trading cryptocurrencies may not be suitable for everyone. Additionally, storing cryptocurrencies on a centralized exchange carries inherent risks, including the potential for loss due to hacking, exchange collapse, or other security breaches. We strongly advise that you seek independent professional advice before engaging in any cryptocurrency trading activities and carefully consider the security measures in place when choosing or storing your cryptocurrencies on a cryptocurrency exchange.

  • 2020 year in review: Cryptocurrency, Bitcoin and Ethereum recap!

    2020 year in review: Cryptocurrency, Bitcoin and Ethereum recap!

    2020 has been a crazy year for everyone and just as much so with cryptocurrencies. Bitcoin was recently getting all the media attention after reaching a new all time highs for the first time since 2017. So we take a review and recap of the most important cryptocurrency, Bitcoin and Ethereum news in 2020!

    Bitcoin smashes old ATH!

    We have all been longing for it and now, finally, it has happened. After first resistance around previous 2017’s top, Bitcoin has finally found enough strength to establish new all time highs of over USD$26,000!!!

    For the first time in three years all $BTC holders are now in profit, with new millionaires popping up at fast pace. Moreover, if we were to have a look at the best performing assets over the last 10 years, it would immediately be noticed as Bitcoin outperformed any other assets 8 times out of 10, with a stunning cumulative return in the order of magnitude of millions!

    This is not a surprise for all crypto enthusiasts who have been accumulating for several months while prices were below USD$10,000 and are now ready to ride the roller-coaster towards new unexplored territory!

    But with any hype, there are also traps! Here’s ONE THING you should avoid in crypto.

    DO NOT do this in crypto

    Publicly traded companies and institutional investors keep increasing their cryptocurrency exposure

    2020 can be regarded as the year institutional investors came another step forward in publicly confirming their interest in crypto. While their cryptocurrency investments still usually amount to a small percentage of their portfolios, this is a clear signal that investors consider Bitcoin as a reserve currency to hedge against traditional fiat money and as an undeniable opportunity to diversify their overall exposure. These finance giants are smart investors, so they are certainly ones to watch.

    Bitcoin Treasuries, visit https://bitcointreasuries.org/index.html for the full list
    Bitcoin Treasuries, visit https://bitcointreasuries.org/index.html for the full list

    At this very moment, the Grayscale Bitcoin Trust (GBTC) is setting the pace in the ranking of Bitcoin adoption with a stunning 2.60% of the total existing supply of Bitcoin.

    Nevertheless, the company that has been most public about its crypto accumulation plan in the last months is certainly Microstrategy. Its CEO Michael Saylor has repeatedly tweeted news keeping his investors up to date. With more than USD$400 million worth bought solely during last summer, the company now owns more than 40000 Bitcoins in their portfolio.

    Not only public investors are opening up to crypto. Recently Paypal has introduced crypto payments within their app. Users can now instantly convert their fiat assets to buy and sell items with cryptocurrencies. Although they don’t actually give ownership of the underlying coins (they can only be used inside Paypal) and cannot be transferred to other wallets, we are sure this is still the beginning phase of crypto adoption by traditional finance platforms.

    Check out our full coverage of this in the 17th edition of our newsletter as news of big $BTC buys were announced!

    Ethereum 2.0 ETH2 finally launched

    The long wait has been rewarded and Ethereum 2 (in its Phase 0), is now a reality!

    On 1st December 2020 and as planned, the mainnet was successfully launched on the first attempt. There were initially concerns that the required threshold to automatically trigger the launch could have not been achieved by the deadline. However the amount of Ethereum staked in the deposit contract suddenly surged in the final days leading up to the deadline, confirming that the hype around the launch was real and that there were enough supporters willing to lock their tokens for months (or possibly even years)!

    One of Ethereum 2.0’s key features is known as “Sharding”. It will enable the simultaneous processing of transactions which will significantly improve the current speed of the network, something that has recently created not a few struggles to its users.

    Check out our article on what is Ethereum 2.0 and what we can expect. We also have a video on 5 things you must know about Ethereum 2.0.

    5 things you must know about Ethereum 2.0.

    Everything is Decentralised Finance!

    2020 has no doubt been the year of decentralised finance (DeFi). And while serious cryptocurrency enthusiasts were already quite familiar with it, in 2020 its adoption just went mainstream. It wouldn’t be much wrong saying that this year everything in crypto has revolved around decentralised finance!

    Total Value Locked in Defi 2020 defipulse.com
    Total Value Locked in Defi 2020 (Source: defipulse.com)

    What is DeFi?

    It could substantially be defined as an experimental form of finance with, as pivotal point, the absence of any form of intermediaries. This means banks, brokers and any other middle men are cut off because blockchain doesn’t need them to work. Everything is ruled by smart contracts, hence everything is decentralized. Not all the projects are 100% decentralized yet, but the way to achieve it has been paved.

    DeFi has all kinds of platforms: lending, borrowing, coverages, prediction markets, trading, synthetics and so on.

    Since smart contracts are needed, the blockchain most protocols are built on is Ethereum. Despite its weaknesses (scalability), it continues to be the steady central point of the DeFi “movement”. Other chains are growing fast behind it, in particular Binance Smart Chain (BSC), while other are trying to increase their adoption too, such as Polkadot (with the use of parachains), Ontology and more. Cross-chain platforms like Ramp are also hot: connecting different chains is another step forward in helping decentralized finance’s growth.

    Check out our Decentralised Finance article list and YouTube DeFi playlist.

    (Yield) farming became a totally legit profession

    It ain't much but it is honest work

    Within Defi, certainly Yield Farming was THE thing on everybody’s lips.

    During what can be referred to as the “Defi Season” last summer, the bravest users were getting incredible Annual Percentage Yields (APY).

    It all started in July 2020, with Compound Finance and Yearn Finance (which made Andre Cronje even more known) as main actors when they decided to distribute their governance tokens $COMP and $YFI to their platforms’ users. Governance tokens, supposedly worthless, started to gain more and more value representing the “strength” of the underlying project. The higher their value the bigger the APYs users could get. New strategies arose, where “farmers” would “fold” or leverage their returns by supplying and borrowing multiple times. This is possible using the borrowed assets each time as new collateral for the next loan. At that point, the Yield Farming “mania” was already out of hand and any upcoming project would offer the option to farm their proprietary tokens.

    But as usual, with high rewards come high risks. The main ones farmers have to face are platforms’ exploits and Impermanent Loss, which can very often lead to permanent losses! See our video on what is impermanent loss and how to avoid it.

    Calling someone a crypto “degenerate” is no longer an insult

    With the rise of yield farming and DeFi, a new specialty has also arisen. People manage to find projects just before or very soon after they are listed on Uniswap, and throw everything they have into it. Short for “degenerate gamblers”, these people that “ape” into projects (without much thought into exactly what it is or what it does) try to catch the initial wave and accumulate as much of these tokens as possible before others do, and then sell when the project becomes more widely known and demand increases. 

    Whilst this is highly risky not just in terms of return on investment, there is also a risk of being “rug pulled”. So as with all gambling, some win big, but some also lose.

    “Rug pulls” hurt our wallets and our appetite for DeFi

    As much as 2020 has been about Defi, it has also been the year of “Rug Pulls”.

    We have witnessed countless episodes of stolen funds in the last months, and the trend doesn’t seem to be going to stop anytime soon. Hackers are evolving with smart contracts and are getting more sophisticated each time.

    Flash Loans have been the favorite way to deliver an exploit till now. Basically a flash loan is something “non malicious” per se. What it implies is that any user could theoretically take out a loan (without providing any collateral). The only condition is to pay it back within the same transaction. But before this last step, the user can do whatever he prefers with the borrowed funds. For example, try to make money out of it! In this case, he would end up profiting off this flashloan! Magic? No, just Ethereum (and Smart Contracts!).

    This mechanism is possible because the blockchain itself doesn’t even have “time” to realize what is going on. As a matter of fact, if the loan is not paid back in time, the transaction is simply rejected.

    All of this is of course easier said than done, and it is not something within just anyone’s reach: this is the way the most sophisticated arbitrages are done. Unfortunately, this is also the way sophisticated hackers profited off some Defi platforms’ vulnerabilities.

    Examples of flashloan attacks have been the ones at the expenses of bZx (three times for a total of around $9M), Value Defi ($7.4M), Harvest Finance ($24M), Akro ($2M) and Origin Protocol ($7M), plus many other less known projects.

    DEX- the new challenger in town

    This year has seen lots of drama among centralised exchanges (CEX) but they also were met with a serious challenger, the decentralised exchange (DEX). Decentralised exchanges promised self-custody of funds (i.e. less risk of hacks) and opened up a whole new world of “crypto dumpster diving”.

    Monthly Dex Volumes by project duneanalytics.com
    Monthly Dex Volumes by project (Source: duneanalytics.com)

    As Defi was exponentially growing in 2020, so was the use of DEXs. Decentralized Exchanges like Uniswap and Sushiswap mainly rely on the AMM (Automatic Market Making) system to provide traders with the necessary liquidity to operate. Funds are pooled together and an algorithm is in charge of controlling the price curve.

    Unfortunately this system is not flawless, and problems such as high slippage are still real in most cases. A key difference with centralized exchanges is the non-existence of order books. This is mainly because Ethereum doesn’t really have the necessary capacity to handle it. There are platforms that allow limit orders (1Inch Exchange for example) but there still is work to do. This is the reason why we also see exchanges being built on other chains such as Project Serum. This DEX offers a CEX-simil experience on the Solana blockchain (able to handle far more transactions per second than Ethereum).

    NFTs: bringing art collecting into the digital age 

    Non Fungible Tokens (NFTs) are another crypto segment that has seen increasing adoption throughout 2020, and many believe 2021 will mark its explosion. They became first popular in 2017 with CryptoKitties but now the market seems to be more mature to just not consider them as a “meme”.

    Non Fungible Tokens are unique non-interchangeable tokens (usually compliant with the ECR-721 standard) and can have many different uses other than just collectible items. They can be used in games (think of the Enjin multiverse); players can build or just enhance their NFTs to make them more valuable and exchange them with other gamers. They can and are introducing Art into the crypto ecosystem. Artists can create their digital pieces of Art and sell them on the blockchain on the available markets. The most known are Rarible and Opensea, where users swap NFTs in a similar way to exchanging standard ERC-20 tokens. Some of the most expensive NFTs have been auctioned for hundreds of thousands of dollars.

    They are also strictly related to the “tokenization” concept. Everything in the real world can theoretically be tokenized into a NFT and transferred on the blockchain. Think about real-estate. You could digitize your house and use it to ask for a loan against its value, or you could sell/lend your piece of land and manage it with the security granted by the blockchain!

    Are Regulators coming after crypto?

    While crypto adoption keeps increasing worldwide, Regulators from any country are slowly but steadily turning their interest to crypto. They want to keep track of how things are evolving and decide how to approach the matter. It’s no surprise that Institutions have been struggling just to decide whether it was the case to tax crypto earnings and how to do it. Most countries still don’t have a clear legislation about it and crypto adopters are often left wondering what they should do to avoid future problems.

    In 2020 we have seen many legislation proposals with the purpose of filling up gaps in regulations that would otherwise leave Institutions too far behind on the subject. Something they can’t afford to do.

    Only considering the first half of December, we saw the Stablecoin Tethering and Bank Licensing Enforcement (Stable) Act and read of rumors about FinCEN (Financial Crimes Enforcement Network) proposed requirements regarding the use of self-hosted wallets (like Metamask). While it is certainly true that a tiny minority of crypto users take advantage of the (partial) anonymity granted by the blockchain, the vast majority doesn’t have anything to hide and is worried about their privacy being exposed if all the regulations should find final approval. In November, Hong Kong has proposed strict regulations against cryptocurrency exchanges and even who can trade with them as well.

    Meanwhile, we have witnessed examples of crypto companies seeking regulation and compliance with the law. In September, Kraken was granted approval to become “the first regulated, U.S. bank to provide comprehensive deposit-taking, custody and fiduciary services for digital assets”. A few days ago Coinbase officially confirmed that they have finalized their Initial Public Offering (IPO) request, now under the SEC (U.S. Securities and Exchange Commission) review process.

    Digital currency race heats up

    Digital currencies continue to be on top of many countries’ “To-Do list” when talking crypto and new payments technologies.

    A digital currency directly issued by a State is something different from the current electronic versions of fiat money and would have the advantage of connecting Central Banks with final users in a more streamline way than now. Operations would be faster and cheaper. In Europe, for example, everything would be governed by the Central Bank itself. Christine Lagarde, president of the European Central Bank, is actively campaigning for the digital Euro, as shown in multiple occasions, and the work is proceeding.

    While it is still not clear how the blockchain and the ledger will be structured, it is important that privacy remains at the center of the dispute, many believe.

    In China, the DCEP (Digital Currency Electronic Payment, DC/EP) issued its state bank the People’s Bank of China (PBoC) is already in its testing phase, and ordinary citizens chosen for the testing were already people able to use it at designated shops and online retailers. We explain everything you need to know on DCEP.

    Institutions are not the only entities working on digital currencies. $DIEM, the recently repackaged decentralized stablecoin powered by the Libra blockchain, should launch in January after years of tormented life!

    Conclusion

    2020 has been an eventful year for cryptocurrencies. However the technology itself is taking huge strides and challenging the way we see traditional finance (e.g. DeFi) and how we even view the currency we use on a daily basis.

    Certainly what is most exciting of all is Bitcoin and Ethereum prices reaching all time highs. It is definitely making people confirmed in their beliefs that the winter is finally over, and the bulls are ready to come out.

    With all these developments and positive price action, we think things can only get better. We are definitely excited to see what 2021 will bring!

    Disclaimer: Cryptocurrency trading involves significant risks and may result in the loss of your capital. You should carefully consider whether trading cryptocurrencies is right for you in light of your financial condition and ability to bear financial risks. Cryptocurrency prices are highly volatile and can fluctuate widely in a short period of time. As such, trading cryptocurrencies may not be suitable for everyone. Additionally, storing cryptocurrencies on a centralized exchange carries inherent risks, including the potential for loss due to hacking, exchange collapse, or other security breaches. We strongly advise that you seek independent professional advice before engaging in any cryptocurrency trading activities and carefully consider the security measures in place when choosing or storing your cryptocurrencies on a cryptocurrency exchange.

  • Yobit Exchange Review and Guide 2020

    Yobit Exchange Review and Guide 2020

    YoBit is a cryptocurrency exchange launched in 2014 and is one of the oldest in the market. YoBit’s philosophy is to keep things simple. The Exchange only offers spot trading on its relatively intuitive and uncomplicated platform. The exchange is popular around the world, with an especially large community in Russia and Europe. However, YoBit does offer some unique non-trading related features such as investment plans, a dice game, and ongoing opportunities for users to earn free cryptocurrencies.

    Registered in Panama as YoBiCrypto Corp, the Exchange was the creation of a group of European developers with a passion for cryptocurrencies. According to CoinMarketCap Yobit has a trading volume of more than USD$50 million every 24 hour

    In this review, we look at the various features of YoBit exchange and give users a guide on how to get started. We also look at whether YoBit is a reliable and safe choice for cryptocurrency traders in 2020.

    Key Features

    • No frills approach: YoBit distinguishes itself from its competitors by being simple. This notion of simplicity can also be seen in its interface. Once you log in all the necessary features and information is displayed clearly and is easily accessible in 1 click.
    • No KYC required: No KYC procedures are required for registering an account and they do not collect any data from users. The Exchange’s aim is to protect users’ anonymity and respect their privacy and confidentiality. New users can register with their email and start trading within minutes.
    • Unique features: In addition to spot trading, the Exchange has unique features such as InvestBox, a dice game, FreeCoins, “YoPony” and collaboration with CryptoTalk forums, etc.

    Let’s take a look at their major unique features in turn.

    InvestBox- a simple how-to guide

    According to YoBit, InvestBox allows users to grow their portfolio and potentially earn from 0.1% up to 7% per day. The purpose of InvestBox is to bridge the gap between cryptocurrency traders and developers by helping the latter popularise their coin, and so traders can benefit from its popularity. The Exchange claims that payments from these plans are from a special fund which is replenished from commissions earned by the Exchange. Users can withdraw their funds from the plans at any time and withdrawals are not subject to any commissions payable to the Exchange.

    Plans differ in terms of what coin you can earn, the minimum investment amount and time required, and the actions required to obtain the payments. As seen in the below image, each InvestBox plan has its own “rules” as follows:

    • Coin: The type of cryptocurrency to be invested
    • Percent: The percentage you will get
    • Period: When you will get your payments e.g. daily, weekly etc.
    • MinInvest: Miniumum investment required
    • MaxInvest: The maximum you can invest
    • Action: What actions are required to get the payments. Taking YOMI in the below image as an example “YOMI/BTC: 10 buy trades + no YOMI sells + BTC: 10 ds” means that users: (1) must buy YOMI tokens 10 times on the YOMI/BTC market; (2) cannot sell their YOMI tokens until payment is received; and (3) play the DICE game 10 times (though it doesn’t matter if you win or lose).
    • Status: Whether the plan is active or not.

    Dice game and YoPony

    A popular feature on the Exchange is their dice game where users guess if an upcoming dice roll is going to be less than 48 or more than 52. As mentioned in the InvestBox section, some plans may require users to play this game for a specified number of times. YoPony is a crypto racing game, where you guess which horse will win a race.

    FreeCoins- how to earn cryptocurrencies on YoBit

    To encourage more people to trade on YoBit, the Exchange gives out free coins for users who share the Exchange on social media. All users need to do is to choose which free coin they would like to get and click “Get free coins”.

    Then in the pop-up window choose whether you want to make your post on Twitter, Facebook or Vkontakte. You will then automatically be directed to your social media website to put up the post. Afterwards you will need to paste the link of your post into the address bar and press “Check” so that YoBit can verify you have posted.

    Pop-up window
    Pop-up window will prompt you to post and insert the address of the post for checking

    YoBit CryptoTalk campaign- another way to earn free cryptocurrencies

    Yobit also has reward campaign with CryptoTalk.org, a cryptocurrency forum where people can earn Bitcoin by engaging in discussions. YoBit will reward users with 0.00001 BTC per post, for up to 30 posts per day. Once you have posted, you will need to enter your CryptoTalk UID into the CryptoTalk campaign page for your posts to be verified. After verification by the moderators on the CryptoTalk forum, rewards will be given to eligible posts and you will be able to send this directly to your BTC balance on the Exchange.

    Supported cryptocurrencies

    YoBit offers trading for over 442 cryptocurrencies, more than twice as many as competitors such as Binance exchange. These include some altcoins which are relatively unknown, potentially making it one of the only options available for serious altcoin traders.

    What also makes YoBit exchange stand out is its number of trading pairs available. It has more than 4,600 trading pairs making it the most trading pairs of any exchange in the market according to CoinGecko.

    Supported currencies and payment methods

    YoBit accepts both USD and RUB (Russian Ruble). As for payment methods, the Exchange accepts Visa/Mastercard, AdvCash, Payeer, Perfect Money, Capitalist, Yandex and cryptocurrency deposits.

    YoBit Fees

    Deposit and withdrawal fees

    Deposits onto the Exchange are free of charge for most major payment methods such as Visa/Mastercard or cryptocurrency deposits. For withdrawals however the fees can range from 0.0005 for cryptocurrencies, to 7% (USD) using Payeer or USD $6 and 5% using credit cards.

    Here’s a list of YoBit’s deposit and withdrawal fees.

    Trading fees

    YoBit charges 0.20% for every buy and sell order on the Exchange. Compared with its competitors, this is generally average. Some exchanges such as KuCoin or OKEx charge a bit less at 0.10%, whilst other exchanges such as Coinbase Pro charge a lot more at 0.50% plus other fees.

    Supported countries

    The Exchange is available to users from all around the globe, including the USA. To cater for its international clientele, the Exchange supports English, Russian and Chinese languages. One of their unique features is its live chat in the sidebar where you can chat with other traders in real time. The live chat is available in English, German, Arabic, Chinese and Russian.

    Security- Is YoBit safe?

    YoBit has a good track record of no hacks in the 6 years it was launched. The Exchange has the following features to protect its users.

    Email login confirmation: After logging into the Exchange, they will send you an email letting you know you have successfully logged in together with details of your login such as your IP address, location and login time. This means you will be notified if someone else has wrongfully logged into your account.

    2-Factor Authentication (2FA): Users can set up the Google Authenticator app on their phones to be used with the Exchange. So when a user makes a deposit or withdrawal, they would also be required to type in a one-time password to complete the request.

    Freeze withdrawals: A unique feature, the freeze withdrawals function can prove to be very useful if you suspect your account has been hacked. In the Settings page, you can select “Freeze withdrawals from my account (I suspect hacking)”. Upon selecting this option, any withdrawals from the Exchange would be frozen and users can only enable withdrawals again by going through customer support.

    Insurance fund: In the Support page, there is an option to request compensation from an insurance fund.

    Not many details are known about the insurance fund. But from our research, the Exchange did suffer a 51% attack in January 2019 and according to YoBit, the losses suffered were covered by the Exchange’s insurance fund.

    User Experience

    The Exchange really takes it to the next step with its simplicity. So much so that there are virtually no tutorials or instructions available on the Exchange or elsewhere. So if users are confused about the Exchange’s features and functions, they will have to look up external websites, figure it out themselves or ask the active and helpful YoBit community. However since the interface is very simple very self-explanatory, most experienced traders should be able to master using YoBit fairly easily and maybe come to appreciate its no-frills approach.

    How to register for a YoBit account

    Registration is staightforward. On YoBit’s main page, simply click “Registration”, fill in the form and click “Register”.

    Afterwards you will receive an email asking you to click on their link to activate your account. On the webpage, select “Activate” and you are all set!

    The registration process was very simple and we were able to register for an account in less than 10 minutes.

    How to deposit and withdraw cryptocurrencies on YoBit

    Deposits

    On the top bar, click “Wallets” to view your balances. Choose which coin to deposit and click “+”. A popup window will appear showing your cryptocurrency address and a QR code. From there either enter the address or scan the QR code with the wallet you want to send from.

    Withdrawals

    Withdrawals on YoBit are just as simple. Click on the “Wallets” page on the top bar, choose which coin to withdraw and click “-“. A popup window will appear for you to fill in your withdrawal address and the quantity you wish to withdraw. YoBit will automatically calculate the withdrawal fees payable and show the amount that the recipient will actually get. Then click “withdrawal request”.

    Customer support

    YoBit has encountered some controversy with users complaining that the Exchange is slow to respond to requests on their support page. From using the Exchange we can see that they have taken this comment on board and tried to make improvements. YoBit customers can get support through the following means:

    • Send a customer support ticket on their Support page;
    • Ask the community on the live chat on the Exchange’s sidebar;
    • On their telegram chat, PM an admin or ask in the main page; and
    • Contact their official support account @YbtSP on Telegram (currently in test mode).

    To test out their customer service, we tried asking for help using all the methods mentioned above. We got a response from the Support page in under 10 minutes, which is quite impressive. We also got replies from other YoBit users on the Telegram community and the live chat who were all very helpful.

    Conclusion: Is YoBit a safe and legit exchange?

    YoBit certainly does live up to its repuation of keeping things simple. Here’s some pros and cons of the Exchange based on our research and user experience.

    Pros

    • Compared with other exchanges, they have a long history and a track record of no hacks.
    • Signup is simple and can be done in 10 minutes.
    • Clean and relatively intuitive interface.
    • Huge number of trading pairs making it a good option for serious altcoin enthusiasts.
    • Very responsive customer support.

    Cons

    • Only offers spot trading and other non-trading related functions such as InvestBox or FreeCoins.
    • Virtually no information about themselves or tutorials on their website. We had to find information about the Exchange from external sources, or figure it ourselves.

    All in all, YoBit is suited for users who have at least some experience with cryptocurrency trading or serious altcoin enthusiasts. YoBit does have a good security record with the usual security features expected of any legitimate exchange. YoBit is certainly an exchange worth looking into.

    Frequently Asked Questions (FAQs)

    Where can I find YoBit on social media?

    YoBit can be found on Twitter and Telegram, where they have one of the largest communities with over 77,000 members on their English channel. The Exchange also has a Russian Telegram channel.

    Can I find any other reviews on YoBit exchange?

    Websites such as Trustpilot, Blocknomi and Cryptocompare have also written detailed reviews on YoBit’s features and functions.

    Disclaimer: Cryptocurrency trading involves significant risks and may result in the loss of your capital. You should carefully consider whether trading cryptocurrencies is right for you in light of your financial condition and ability to bear financial risks. Cryptocurrency prices are highly volatile and can fluctuate widely in a short period of time. As such, trading cryptocurrencies may not be suitable for everyone. Additionally, storing cryptocurrencies on a centralized exchange carries inherent risks, including the potential for loss due to hacking, exchange collapse, or other security breaches. We strongly advise that you seek independent professional advice before engaging in any cryptocurrency trading activities and carefully consider the security measures in place when choosing or storing your cryptocurrencies on a cryptocurrency exchange.

  • Stacks ($STX): Bringing Bitcoin’s security to decentralised apps

    Stacks ($STX): Bringing Bitcoin’s security to decentralised apps

    Stacks ($STX) (formerly Blockstack) is an open-source network that allows developers to easily build decentralised applications (such as decentralised finance DeFi applications) and smart contracts. It also relies on Bitcoin as a backbone by reusing its computing power and blockchain for settlement and security with a new mechanism known as proof of transfer (PoX). Below, we look into PoX and everything you need to know about Stacks.


    Background

    Stacks is handled by a globally-distributed team that includes scientists from leading universities such as MIT, Stanford, and Princeton. On top of that, The project is a public company with its headquarters in New York.

    Stacks’s place in the DeFi and broader crypto ecosystem is further cemented by being backed by notable names in the industry such as Y Combinator, Foundation Capital, Digital Currency Group, Winklevoss Capital, and LUX.

    What is Stacks?

    Stacks is a decentralized platform that leverages the Bitcoin platform’s security to power the creation of smart contracts and decentralized applications (Dapps). Interestingly, the network does not have to recreate the system’s PoW mechanism to connect to it. The project has four major layers; application, protocol, Stacks blockchain, and the Bitcoin system.

    What is Proof of Transfer (PoX)?

    Proof of Transfer (PoX) and the earliest Proof of Work (PoW) are requirements to define what a miner needs to do in order to create blocks on the blockchain. The purpose of mining is to verify a transactions’ legitimacy and in return miners are rewarded with cryptocurrencies. Proof of Work is the mechanism used for Bitcoin whereby miners compete to solve a puzzle using their computer’s processing power in order to add each block to the chain.

    Learn more about what REAL cryptocurrency mining looks like.

    However, Bitcoin has its fair share of drawbacks. It has a very low transaction speed and is not smart contract-friendly. Therefore, second-layer solutions like the Lightning Network have tried to provide fast Bitcoin transactions but failed to power smart contracts.

    As such, it has lost in the competition to Ethereum who now powers most decentralized finance (DeFi) protocols. Yet, with Ethereum witnessing increased congestion, new projects are shifting from Bitcoin and Ethereum’s proof of work (PoW) to platforms using proof of stake (PoS) and other energy-friendly consensus mechanisms such as proof of burn (PoB). Now Stacks wants to take this a step further with their proof of transfer (PoX).

    Name What miner needs to do to mint new cryptocurrencies
    Proof of work (PoW) Use electricity towards computations i.e. solving complex problems.
    Proof of stake (PoS) Dedicate an economic stake in a base cryptocurrency
    Proof of burn (PoB) Destroy a base cryptocurrency
    Proof of transfer (PoX) Transfer a base cryptocurrency
    Proof of work and other mechanisms

    Stacks Blockchain

    As mentioned earlier, Stacks has four major layers; application, protocol, Stacks blockchain, and the Bitcoin system.

    Stacks blockchain is the solid rock that holds the ecosystem together. It is a distributed layer by itself and allows users to create smart contracts and virtual assets. What’s interesting with this layer is that it’s not a layer two chain but connects to the BTC-powered network with a 1:1 block ratio.

    This implies that whatever happens on the Stacks platform is easily verifiable on the Bitcoin platform.

    How Do the Two Platforms Connect?

    To interface the two independent distributed networks, the Stacks blockchain uses PoX instead of PoW. Generally, the mechanism enables miners to mine a new digital currency by transferring a base currency. In the case of Stacks, transferring BTC results in a new coin being minted on the Stacks protocol.

    Apart from fronting a new consensus mechanism i.e. PoX, the decentralized platform allows its users to easily create virtual assets that are transferable, and ownership can be assigned. The assets can represent a wide range of use cases such as business models, funding, and governance.

    However, to effectively cater to each of these use cases, Stacks, through the Stacks blockchain, supports different asset types such as fungible and non-fungible tokens.

    Learn more about the differences between fungible and non-fungible tokens.

    To power smart contracts, the Stacks blockchain uses a smart contract-centric programming language called Clarity, which provides enhanced security. Notably, the programming language is employed by leading decentralized platforms such as Algorand.

    Protocol Layer

    The protocol layer has the storage, authentication, financial, and naming service. Stacks’ storage system is called Gaia. It stores app data without the need for a third-party service provider.

    It utilizes off-chain cloud systems such as a DigitalOcean or Azure to power super-fast data access by applications. Fortunately, the data is secured by its creator’s private key.

    On the other hand, Stacks uses a decentralized feature to provide authentication. Authentication powers access to the network’s apps using a username and details on Gaia.

    The financial aspect of the system supports DeFi platforms such as those providing decentralized exchanges and lending. The financial pillar is further strengthened by the protocol’s use of Clarity to drive smart contracts.

    For instance, the smart contract-programming language can interface directly with the Bitcoin blockchain. Additionally, it’s reinforced to prevent security breaches and anticipate possible vulnerabilities.

    Stacks has a unique naming feature called BNS (Blockstack Naming Service). Despite being decentralized, the service enables the platform’s users to give assets human-readable names. The names are secured with a combination of public and private keys.

    $STX Token: What is is and tokenomics?

    Activities on the Stacks blockchain are powered by a native currency known as Stacks token ($STX). It is used up as “fuel” when making transactions, interacting with smart contracts and using the BNS feature. It is also distributed as a reward to STX miners (see below).

    The genesis block minted 1.3 billion Stacks tokens. Minted coins were shared among the founders, treasury, equity investors, employees, two token sales, and app mining.

    Stacks token distribution
    Stacks token distribution (Image credit: Stacks Whitepaper)

    App mining is Stacks’ way to reward developers for building high-quality applications on the Stacks network.

    Stacks is available on Binance, HashKey, Crypto.com, and Kucoin. Unfortunately, its availability has been set for non-US persons only.

    Stack Network’s Use Cases

    From the start, the platform is built to enable privacy and allow users to control how their data is used in a world where user data is treated as a commodity for sale. And with Stacks’ use of PoX, Clarity, and other qualities, developers can ensure data privacy when creating apps, eliminate central authorities in financial products, and build fair games.

    Stacks 2.0 and use cases

    Stacks 2.0 blockchain is a layer-1 blockchain utilising the Bitcoin blockchain as a secure base-layer to bring apps and smart contracts to Bitcoin. Stacks 2.0 is currently in the testnet phase. The team have confirmed they are on track to reach code completion for the Stacks 2.0 blockchain by 15th December 2020 and have set a launch date for 14th January 2021.

    Stacks implements proof of transfer (PoX) as a consensus mechanism and natively connects to Bitcoin. Therefore developers can ensure data privacy when creating apps, eliminate central authorities in financial products, and build fair games without the need to modify Bitcoin.

    There will be 2 types of participants on Stacks

    STX miners

    They can spend BTC to elect leaders by sending transactions on the Bitcoin blockchain, where a Verifiable Random Function (VRF) will randomly select the leader of each round. The leader then writes the new block on the Stacks chain.

    As a reward, STX miners get STX tokens, transaction fees, and the Clarity contract execution fees of each block.

    STX holders

    Holders can participate in consensus by locking up their STX for a cycle, running a full node, and sending useful information on the Stacks network as transactions.

    As a reward, STX holders can earn Bitcoin rewards and unlike in the proof of stake mechanism, there is no risk of slashing for STX holders.

    Conclusion

    With an increasing number of security breaches on smart contracts and blockchain platforms, leveraging Bitcoin’s security when building smart contracts puts Stacks at the top of the game. Using Clarity at the base of every smart contract keeps hackers at bay, especially in the DeFi scene where malicious actors are always on the prowl for vulnerabilities in protocols.

    Additionally, Chainlink oracles provide a trusted source of off-chain data for developers, while PoX allows for a one-on-one connection to the BTC-powered blockchain.

    We are certainly curious to see what the team come up with in Stacks 2.0 and whether they can live up to their aims.

    Disclaimer: Cryptocurrency trading involves significant risks and may result in the loss of your capital. You should carefully consider whether trading cryptocurrencies is right for you in light of your financial condition and ability to bear financial risks. Cryptocurrency prices are highly volatile and can fluctuate widely in a short period of time. As such, trading cryptocurrencies may not be suitable for everyone. Additionally, storing cryptocurrencies on a centralized exchange carries inherent risks, including the potential for loss due to hacking, exchange collapse, or other security breaches. We strongly advise that you seek independent professional advice before engaging in any cryptocurrency trading activities and carefully consider the security measures in place when choosing or storing your cryptocurrencies on a cryptocurrency exchange.

  • Wootrade ($WOO): Boosting the power of cryptocurrency trading?

    Wootrade ($WOO): Boosting the power of cryptocurrency trading?

    Wootrade ($WOO) is a digital asset liquidity pool that partners with cryptocurrency exchanges, wallets and over the counter trading desks (OTCs). They also have a darkpool trading platform which claims to offer zero (or even negative) trading fees and above average liquidity for spot and futures trading.


    Check out our interview with Jack Tan, CEO of Wootrade!

    Better trading (no strings attached)?-Wootrade

    Background

    While both automated market makers (AMMs) and decentralized exchanges (DEXs) belong to the decentralized finance (DeFi) sector, they are quite distinct from each other.

    There is no limit order functionality for AMM providers such as Uniswap, whilest the trading role of DEXs is more complete and closer to that of a common cryptocurrency exchange. At present, AMMs are extremely popular. They draw more consumers and have rates of exchange that outweigh those of DEXs. 

    Wootrade collaborates with DEXs as they solve their liquidity challenges using Wootrade. Exchanges would find it easy to draw even more customers by providing more liquidity and delivering more full features. In DeFi cryptocurrencies, standard exchanges have smaller trading rates than Uniswap, and even losing customers, owing to the popularity of the DeFi sector.

    Although supporting both centralized and decentralized exchanges to improve their AMM competition, Wootrade has already listed DeFi coins and intends to consistently list more.

    Team

    It is worth noting that Mark Pimentel, Wootrade’s Co-founder, worked at Citadel and Knight Capital (acquired by Virtu in 2017), respectively. Pimentel initially operated in the high-frequency trading department at Citadel, and then went to Knight Capital’s electronic marketing group in the United States. There, he was in charge of operating the substantial dark pool.

    When Pimentel stepped into the crypto ecosystem, he came across a common problem between quantitative funds and exchanges i.e. the market liquidity is fragmented. He aimed to add his trading skills and familiarity with the dark pool to Wootrade. The inclusion of Wootrade’s token economy was intended to make this model more robust, fairer, and more efficient.

    What is Wootrade?

    Built by industry-leading proprietary trading company Kronos Research, Wootrade provides dramatically enhanced liquidity, spreads, and fees. Wootrade is regarded as the next evolution of crypto trading.

    Wootrade features specialized market-making skills based on alpha through collaborations with the world’s top proprietary trading teams. A self-reinforcing and mutually-advantageous dynamic between traders, exchanges, market-makers, and investors all connected by the WOO token has been created by this innovative framework.

    Mark Pimentel and Jack Tan, Founders of Kronos Research, had invented the Wootrade concept to address the big pain points for more challenging crypto traders. Kronos Research has evolved from a team of 2 to more than 60 persons now and trades over a billion dollars on a daily basis.

    How does Wootrade achieve high liquidity and zero fees?

    Wootrade claims to have above average liquidity and zero trading fees, but how do they achieve this?

    Taking BTC as an example, at a depth of 100 BTC, Wootrade will sustain a spread of 0.2%. In addition, it does not charge any handling costs or operating costs to users. Kronos Research, a quantitative market research institution, has incubated Wootrade. The fact that Kronos excels in a number of trading techniques is popularly known.

    In various market conditions, Kronos has a daily trading volume of more than $1 billion and can guarantee substantial returns. Although Wootrade implements zero-fee trading, retail-oriented exchanges do not generally compete with it. In fact, exchanges or DEXs, wallets, brokers, and trading institutions are mostly Wootrade customers.

    Currently, over 10 exchanges and institutional customers are linked to the platform. In addition, through the exchanges that collaborate with Wootrade, a total of more than 65,000 end users have used their trading profile. New exchanges were queuing up for entry after releasing Wootrade 1.0, as market demand surpassed the expectations of the team.

    Open governance on Wootrade

    The aim is for the group to have more and more autonomy to grow the project as it sees fit. Voting power grows exponentially in relation to the amount of time involved, but anyone who buys tokens only to vote would not have any control over decisions.

    Instead, those who have carried for the right length of time will be able to control with the greater weight the choices made. Additionally, the incentive scheme is aimed to enable those with the right combination of talent and expertise to engage more effectively in the governance and decision-making process.

    The aim of Wootrade is to reach 40% of the cryptocurrency market’s liquidity. This includes a significant number of exchange customers and market makers to be on board. There is a big market for wealth management businesses on both exchange investors and AMMs on the platform.

    Since it’s not easy to check and trust the trading staff, investors sometimes skip good opportunities. Wootrade can, therefore, be fitted with an oracle computer to solve this. This helps market makers to submit their NAVs and results to the blockchain. For its retail customers, exchanges may then verify and pick outstanding items.

    WOO token ($WOO)

    Wootrade has its own native token that will act as a value and rewards carrier generated by the system. The WOO token will be used to vote on governance decisions concerning the platform. WOO can also be used in staking/mining reward systems, retail users can stake WOO and ETH or USDT into an asset managment product and receive rewards.

    For those who are interested in spot/futures trading, WOO can be used as collateral on the Wootrade platform.

    Customers can also get a discount when using WOO to pay for say management fees for asset management items. For Wootrade’s clients or partners that do not have their native token, they can also choose to adopt WOO as their platform token. Thereby giving consumers another place to use WOO.

    Prime Nodes on Wootrade

    For B2B clients they are different tiers to stake the WOO tokens on the exchange or platform for eligibility to become a Prime node. In addition to the staking requirement, they also need to demonstrate a unique marketing plan and business proposition.

    Once they become a Prime node, every dollar of flow they route to the network gives them a reward of a certain number of WOO tokens. The concept behind this is that after a while of doing this, they would not need to charge their users and fees and simply scale off the rebates provided by Wootrade.

    Essentially, Wootrade’s rationale is that they do not think businesses would try and rely on market makers (which require a huge fee for their services). Especially when the alternative provided by Woodtrade is that they would get access to a zero fee trading network with proven liquidity, AND get paid to trade there.

    WOO tokenomics

    • Ticker: WOO
    • ICO Token Price: 1 WOO = 0.03 USD
    • Fundraising Goal: $650,000
    • Total Tokens: 3,000,000,000

    WOO is available for spot trading on Uniswap, Huobi, MXC and Gate.io

    Conclusion

    Wootrade sees the potential for conventional and decentralized finance to incorporate concepts. The crypto industry will increasingly be affected by this new technology. The conventional business of asset management will now pay attention to the optimized use of blockchain technologies and token architecture.

    Disclaimer: Cryptocurrency trading involves significant risks and may result in the loss of your capital. You should carefully consider whether trading cryptocurrencies is right for you in light of your financial condition and ability to bear financial risks. Cryptocurrency prices are highly volatile and can fluctuate widely in a short period of time. As such, trading cryptocurrencies may not be suitable for everyone. Additionally, storing cryptocurrencies on a centralized exchange carries inherent risks, including the potential for loss due to hacking, exchange collapse, or other security breaches. We strongly advise that you seek independent professional advice before engaging in any cryptocurrency trading activities and carefully consider the security measures in place when choosing or storing your cryptocurrencies on a cryptocurrency exchange.

  • Cryptocurrency Exchange News (November 2020)

    Cryptocurrency Exchange News (November 2020)

    Cryptocurrency Exchanges are facing additional regulation and scrutiny around the world. Two key exchanges – OKEX and Huobi are under regulatory scrutiny in China. One of the reasons for the scrutiny is that both these exchanges had a huge footprint in China prior to the 2017 Exchange ban. To find out about top cryptocurrency exchanges, check out our Exchange Tier List. Here are the major changes to the exchange scene in November 2020.

    OKEx Exchange withdraws suspended

    It has been almost a month since Okex Exchange suspended all withdrawals from the platform. This was due to one of their private key holders (Star Xu) being detained for investigation by a “public security bureau”. OKEx has always claimed that Xu is not detained but only actively cooperating with the relevant authorities for something unrelated to the Exchange back in 2019.

    No withdrawal has happened since 16 October 2020; in OKEx’s last Twitter post, dated 9 November 2020, they claim that the function is not yet active but funds are safe and unaffected.

    Withdrawals reopened!

    After more than a month since their suspension announcement, Okex exchange has finally reopened unrestricted withdrawals on November 27. In addition, there will be rewards for active users. Read all the details in our developing article.

    KuCoin recovers around 84% of funds in hack

    As covered in our previous Newsletter, KuCoin had confirmed on 26th September 2020 that they had been hacked, resulting in around USD $236m worth of funds being lost.

    On 11th November 2020, CEO and Co-founder Johnny Lyu confirmed that around 84% of affected assets have been recovered. Several means were utilised to do this, for example on-chain tracking, contract upgrade and through the judicial system.

    Currently, 176 of their listed tokens have resumed full services, and it is expected that the remaining listed tokens will all be re-opened before 22nd November 2020.

    Update from CEO and Co-founder Johnny Lyu on the KuCoin hack situation

    Huobi Rumors go wild

    On 2 November 2020 a few big transactions worth hundreds of millions into Huobi Exchange have been spotted; although this could be routine for a big Exchange like this, users were worried since the issues with OKEx exchange were still ongoing.

    There were also rumours that, similar to OKEx, key executives of Huobi were detained for investigations.

    This created an escalated FUD that ended up with a massive drop in value for $HT (Huobi Token), as well as worried users quickly withdrawing their cryptocurrencies from the Exchange.

    Huobi official account subsequently tweeted denying all rumours and classifying them as false.

    For now, everything seems to be back to normal and no more news have emerged since.

    See our ongoing coverage of the Huobi rumours.

    Binance Exchanges news

    Binance Uganda merges with Binance.com

    A few weeks after Binance Jersey announced that the Exchange, launched in January 2019, will be fully closed by 30th November 2020 (no explanation was given but it’s presumed that it wasn’t necessary anymore, after deposits in EUR and GBP have been enabled directly on Binance.com), Binance Uganda will cease to exist as well.

    Binance Uganda was launched in June 2018 and has been the first fiat-to-crypto Binance platform, even though it had been stated more than once that it was a separate entity capable of independent decisions.

    An explanation was provided by the Chief Executive Officer (CEO) Changpeng Zhao:

    “All the features that Binance Uganda provides [are] now covered by Binance.com together with our fiat channel partners. There’s a very minimal number of users on there, so it doesn’t make sense for us to maintain two platforms”.

    The process will consist of three different phases: Closure of Deposits and New Registrations; Closure of all Trading Services, and final Hard Shutdown on the 28 November 2020.

    Users are strongly recommended to transfer their funds out of the Exchange before 00:00 UTC on 28/11/2020.

    Is Binance blocking US-based users?

    Reports are emerging that Binance has started to block users based in the US from accessing the Exchange. According to The Block, emails were circulated to US-based users who were told to withdraw their funds within 90 days.

    This is in any event in line with their announcement back in September 2019 that they will no longer serve customers from the US. They are also likely doing this now considering the ongoing legal actions against BitMEX and its key personnel.

    Binance.com is now giving a 14 days notice to US customers

    As a consequence to what we reported a few weeks ago, it appears that some US customers who are still using the “.com” version of the exchange are receiving a 14 days notice letter. In the email, as they reported, Binance is informing that due to their “periodic sweeps”, US residents are being asked to withdraw all their funds within 14 days or their funds will be blocked.

    It is not clear whether the identification process is only based on KYCs or on IP addresses as well; in the first case, it could be possible that US customers who skip the KYC process accepting lower deposits/withdrawals limits could still use the platform.

    Binance.com has been trying to remove its US customers for a while as the exchange doesn’t have any regulatory standing in America. US customers can use Binance.US, an exchange with far less pairs that is therefore not as attractive to traders as the classic “.com” version.

    Coinbase Pro is disabling Margin Trading

    In a blog post on Nov 24, the Chief Legal Officer Paul Grewal announced that customers wouldn’t have been able to place margin trades after November 25, 2PM PT time. The existing positions will remain effective until the last one will have expired; at that moment the product will go offline.

    The decision comes as a consequence to the finalized “Interpretive guidance on actual delivery of Digital Assets” by the CFTC (Commodity Futures Trading Commission) in March. You can read more here. In the letter we can read:

    “We believe clear, common sense regulations for margin lending products are needed to protect and provide peace of mind to U.S customers. We look forward to working closely with regulators to achieve this goal”.

    Australian Exchange BTC Markets exposed users’ data

    On December 1st during a routine marketing round of emails to their users, Australian exchange BTC Markets, one of the most famous in the continent, accidentally exposed their users’ data. Names and emails where all together displayed in the “to” field and sent in batches of 1000 at a time, exposing each personal user’s data to 99 other email addresses.

    Caroline Bowler, the CEO, immediately confirmed the data exposure adding that nothing more than names and emails were exposed, while funds and passwords remained safe. Nonetheless, we know this type of exposure can (and probably will) lead to unwanted campaigns or phishing emails, therefore users should always doublecheck the sender of the emails before clicking anything suspicious.

    The exchange is now working on additional measures and has advised their clients to change email passwords and set up 2 factor authentication on their accounts.

    Final reminder

    Centralised cryptocurrency exchanges do have custody of the cryptocurrencies in your account trading wallets. Therefore if anything happens to the exchanges, your funds can be affected!

    So don’t keep more funds in exchanges than you need for day to day use or trading! Keep your cryptocurrencies safe and under your OWN custody, ideally in a hardware wallet.

    We recommend the Ledger Nano X. Check out our review and set up and installation guide.

    Disclaimer: Cryptocurrency trading involves significant risks and may result in the loss of your capital. You should carefully consider whether trading cryptocurrencies is right for you in light of your financial condition and ability to bear financial risks. Cryptocurrency prices are highly volatile and can fluctuate widely in a short period of time. As such, trading cryptocurrencies may not be suitable for everyone. Additionally, storing cryptocurrencies on a centralized exchange carries inherent risks, including the potential for loss due to hacking, exchange collapse, or other security breaches. We strongly advise that you seek independent professional advice before engaging in any cryptocurrency trading activities and carefully consider the security measures in place when choosing or storing your cryptocurrencies on a cryptocurrency exchange.

  • YFI Yield Farming with yEarn Pool

    YFI Yield Farming with yEarn Pool

    Yield Farming is a popular method for cryptocurrency owners to gain passive income. It involves taking advantage of various incentives rewards for locking-up (aka staking) different cryptocurrencies. This article focuses on yield farming for the $YFI token which has become the highest performing yield farming pool.

    Check out our video on how to potentially earn 600% returns through YFI Yield Farming!

    The yEarn project has launched its own governance token – $YFI – this week, sending the Decentralized Finance (DeFi) Yield Farming scene into a frenzy. As of this article, staking stable coins (USDT, USDC, DAI, or TUSD) into the Y pool will yield an astronomical 896% Annual Percentage Yield (APY). This is due to the incentive token $YFI being distributed to staked token holders, making this the single best yield farming pool right now. This has sparked a huge amount of interest in both searches for the $YFI governance token (trending right now on coingecko). Since the token launch, more than $60 Million of new capital has been deposited into the Y pool. Calculate yield using the community made yieldfarming tool.

    WARNING: Yield farming involves a high amount of risk due to the experimental nature of the Ethereum network with potentially undiscovered critical vulnerabilities. Never stake/farm more than you can afford to lose. This is not Financial Advice.

    What is the yEarn (iEarn) Pool

    The iEarn “Y” pool is a yield aggregator – it automatically invests its capital into different DeFi projects – selecting those with the highest yield and return on investment. As a DeFi protocol, a smart contract keeps the invested funds – which makes the project non-custodial. The pool itself is comprised of 4 different stable coins – USDT, USDC, DAI and TUSD – with a total of over $103 Million USD in currency reserves (Assets Under Management – AUM). These reserves are then lent out to different protocols that offer the best rates of return, including Compound, Aave, and dYdX. yPools are considered riskier than other DeFi products such as Compound because lend capital out to a series of protocols – which themselves could be vulnerable to critical vulnerabilities.

    How to Earn the YFI Token

    There are two pools that reward the YFI token for staking. The first and easiest pool to access is the Y Pool on Curve.Fi. This pool is a collection of stable coins that are automatically invested in different lending protocols. This type of pool is usually considered a higher risk due to possible vulnerabilities not just with its own smart contract, but with other smart contracts too.

    How to to earn YFI tokens

    Unfortunately “Yield Farming” for the YFI token has ended. When YFI first launched, all 30,000 tokens were distributed to stakers on the https://ygov.finance/staking platform. Although initially there were plans to distribute more tokens, attempts to come out with a plan to do so have all been voted down in the Y governance. This means it’s unlikely that new $YFI tokens will be distributed in the future. Other tokens such as YFII and YFV still have token distribution for yield farmers.

    What is YFI token

    YFI is the governance token for yEarn (previously known as iEarn). Tokenholders are entitled to vote on upcoming governance decisions for the network – such as potentially stopping all-new distribution of the token. Creator of YFI, Andre Cronje (@AndreCronjeTech) has stated that the token has no intrinsic value.

    “We have released YFI, a completely valueless 0 supply token. We re-iterate, it has 0 financial value”

    Andre Cronje

    This being said, the current wave hype wave and token dynamics have driven up the value of the token. The token follows the “Governance” model where it’s value comes from voting on where the protocol will go next. On top of this, the incentivized Balancer pool (YFI 2%, DAI 98%) requires the staking of $YFI, which locks up further supply. Simply put, DeFi farmers are locking up YFI and DAI in order to receive BPT tokens which could be staked on ygov.finance to gain an additional $YFI. This type of cyclic farming create pseudo ponzinomics and could lead to potentially disastrous results.

    Balancer Warning & new coin minting risk

    One of risks that was mitigated by the team was with token issuance. Currently there is a max cap of only 30,000 YFI tokens. Earlier this week it was discovered that there was a master key which permitted YFI developer Andre Cronje to mint new coins and potentially flood the market with new coins. If he did this, it would of been possible for him to take the entirety of Pool#2 and Pool#3 on Balancer, with a total of more than $150 Million USD. Luckily this did not happen, as he quickly created a multisignature address which requires 6/9 key holders to agree to minting new tokens. The purpose of this is to remove single party risk as 6 of the 9 keyholders are required to agree to create new coins. On top of this, even if they do agree, the community will have 3 days notice before anything happens.

    Overall the long term objective of YFI is to leave control of the total supply of YFI and distribution up to the community to decide. The voting aspect of YFI will allow governance token stakers to decide who to do with the platform.

    YFI distribution stop

    Distribution of $YFI tokens will temporarily stop as new contracts are being prepared. Times for the pools stopping are as follows:

    Resources:

    yEarn documentation – http://docs.yearn.finance
    yGovernance and staking – https://ygov.finance
    Pool Information / Calculator: https://yieldfarming.info/
    Curve Guide on Pools – https://guides.curve.fi/how-to-choose-the-right-curve-pool-for-you/
    Coindesk Report: https://www.coindesk.com/troll-token-why-defi-yield-farmers-are-now-all-about-yfi

    Decentralised Finance (DeFi) series: tutorials, guides and more

    With content for both beginners and more advanced users, check out our YouTube DeFi series containing tutorials on the ESSENTIAL TOOLS you need for trading in the DeFi space e.g. MetaMask and Uniswap. As well as a deep dive into popular DeFi topics such as decentralized exchanges, borrowing-lending platforms and NFT marketplaces

    The DeFi series on this website also covers topics not explored on YouTube. For an introduction on what is DeFi, check out Decentralized Finance (DeFi) Overview: A guide to the HOTTEST trend in cryptocurrency

    Tutorials and guides for the ESSENTIAL DEFI TOOLS:

    More videos and articles are coming soon as part of our DeFi series, so be sure to SUBSCRIBE to our Youtube channel so you can be notified as soon as they come out!

    Disclaimer: Cryptocurrency trading involves significant risks and may result in the loss of your capital. You should carefully consider whether trading cryptocurrencies is right for you in light of your financial condition and ability to bear financial risks. Cryptocurrency prices are highly volatile and can fluctuate widely in a short period of time. As such, trading cryptocurrencies may not be suitable for everyone. Additionally, storing cryptocurrencies on a centralized exchange carries inherent risks, including the potential for loss due to hacking, exchange collapse, or other security breaches. We strongly advise that you seek independent professional advice before engaging in any cryptocurrency trading activities and carefully consider the security measures in place when choosing or storing your cryptocurrencies on a cryptocurrency exchange.

  • Deriswap: Another Andre Cronje success story?

    Deriswap: Another Andre Cronje success story?

    Deriswap is the latest and unreleased project by Andre Cronje, announced for the first time in a Medium post on 23rd November 2020. Andre is a well known developer in the Defi space (“the Father of Defi” as many define him) and famous is his interest in trying to simplify users’ lives when approaching protocols. For example Yearn Finance ($YFI), launched in July 2020, automatically distributes users’ funds to various swap-based DeFi protocols based on their returns, risks, and other factors. Keep3r Network (which came in October) on the other hand, is a platform for projects that need or wish to outsource their “jobs” (operations) to third parties.

    How has Defi improved over time?

    Only a year ago, decentralized finance (DeFi) sounded so foreign, attracting just a handful of die-hard crypto enthusiasts and supporters. Fast-forward to 2020, and the space has become some sort of a sub-sector of crypto, leading to the creation of networks which address various sectors. Most of these platforms concentrate on yield farming through swaps. Other options and futures-focused systems also came on board.

    Unfortunately, while these systems brought solutions, they also complicated the space. For instance, new questions had arisen such as which one is the easiest to use, which one has the best yields, etc.

    Luckily, yield aggregator platforms such as Yearn Finance, as we said, came to the rescue of liquidity providers (LPs).

    However, the segmentation problem still isn’t solved. This is where Deriswap comes in. The protocol ensures capital efficiency by aggregating services offered by other platforms such as Uniswap, Bancor, Deribit, Primitive, Compound, and Aave.

    What is Deriswap? What problems is it trying to solve?

    Andre Cronje
    Andre Cronje

    Deriswap is a decentralized platform combining swaps, options, futures, and loans into a single product.

    Cronje wanted to, among other things, guard DeFi users against the high costs incurred when moving away from the money market, as is the case with options-focused networks such as Hegic. Additionally, Cronje’s vision is to shift from segregated to consolidated liquidity.

    Some advantages of pooled liquidity include less price slippage and fees. Also, he wanted to strengthen asset-settled instead of cash-settled options.

    Under the microscope, Deriswap is inspired by Uniswap. In an interview, Cronje noted that the platform was born after adding roughly 150-lines of code to the Uniswap protocol. However, things like math functions had to be developed from scratch to address unique computations on the new system.

    What products will Deriswap offer?

    • Swaps make use of Uniswap’s Automated Market Maker (AMM) formula “x * y = k” and allow LPs to provide liquidity as pairs of two coins such as Bitcoin (BTC)-Ethereum (ETH). Their incentives originate from trading costs.
    • Options – Options tap into swaps to hedge against volatility. For example, positive trading costs cancel losses from settled options. Deriswap makes use of TWAP (Time-Weighted Average Price) oracles to implement American-styled options that have no hard-coded settlement time.
    Deriswap Interface
    Deriswap Interface

    Since settlement occurs in pairs, call and put functions have to exhaust assets from either side. That is, a call request buys the entire amount while a sell order auctions the absolute value.

    Deriswap options allow users to maximize fees whether the market moves sideways or is too volatile. In case it moves sideways, for example, there are fewer trading fees but high options fees. When it’s unstable, vice versa, the trading costs increase while the options charges are reduced.

    • Futures – Futures ride on the time element found on swaps. This, vice versa, is “just a normal trade” in Cronje’s words. It allows one party in a contract to pay a premium as well as the base asset.
    • Loans – Loans are a natural evolution from futures. Interestingly, the deposited currencies pair back each other. For example, assuming you deposited BTC-ETH and want an ETH loan, BTC serves as collateral. This then determines the amount of ETH eligible for borrowing.

    Once the ETH is returned, BTC is given back. Otherwise, BTC is forfeited. It is important to note that loans can be settled before their due date.

    What are Deriswap’s advantages?

    We could think of the platform as a Yearn replica which doesn’t only interact with swaps like Uniswap and Bancor. It deploys capitals to the entire ecosystem of options, loans, and futures. Therefore we can outline key points such as:

    • users can deploy funds on selected platforms from a single interface. For instance, they could allocate 30 percent to Aave to power decentralized borrowing, 30 percent to Deribit for options, and 40 percent to Uniswap for trading.
    • distributing capital to various unrelated platforms allows Liquidity Providers to use the same amount of money for different things.
    • with different spheres of Deriswap complementing each other, LPs guarantee returns even when one market is dormant or unfavorable. For example, when the market has low volatility, they can quickly turn to options and loans. This while a highly-volatile market provides an opportunity to make a killing from trading and futures.
    • Deriswap makes existing DeFi products functional and cheaper
    • … and accommodates what Cronje calls “lazy liquidity”. This is liquidity from LPs who don’t have time to be active on a platform. Instead, they provide liquidity and come back after six months to check for yields.

    When is Deriswap launching?

    As of today, there is no official release date and not much info has been disclosed. Through a series of tweets, articles and community posts announcing Yearn Finance’s last collaborations, we came to know that Deriswap will be completed and launched together with the Sushiswap team. The partnership should biuld the next Sushiswap trading platform on top of Deriswap.

    In this post, we can also read that the two teams will cooperate “in a stealth project following Deriswap release”.

    To confirm this “aura of mystery” behind Deriswap and last Cronje’s announcements in general, “cryptomaniacs” are welcome to bet on what this fourth notorious project in his last tweet could be

    https://twitter.com/AndreCronjeTech/status/1335846595858980867

    Is there a Deriswap token?

    Cronje is considered by the cryptocurrency community as having the “Midas touch”, where every project he touches turns into gold. Therefore, people are anxious to know if and when Deriswap will launch a token so that they can dive in early and buy it for a cheap price and sell it later. Most DeFi protocols have their own limited supply token, so it is expected that Deriswap will eventually also have a token. However, the Deriswap protocol is currently undergoing audit so there is no official Deriswap token yet. There is also no news on whether there will even be a token at all.

    However, this has not stopped some people from issuing fake Deriswap tokens for unsuspecting crypto enthusiasts to buy. In one such scam, people deposited over 150 ETH in less than 15 minutes, which the scammer promptly took and absconded.  

    Conclusion

    In an ecosystem where liquidity is thinly spread across multiple platforms, Deriswap acts as a consolidator in order to increase capital efficiency. As such, a DeFi enthusiast can deploy his capital into loans, options, swaps, and futures platforms. Consequently, they can receive incentives, even when one industry is stagnant. Moreover, the use of the TWAP oracles eliminate the risk of widespread price variance.

    Since Deriswap is developed by a seasoned programmer, the platform is likely to turn out as another success, just like Yearn.

    Disclaimer: Cryptocurrency trading involves significant risks and may result in the loss of your capital. You should carefully consider whether trading cryptocurrencies is right for you in light of your financial condition and ability to bear financial risks. Cryptocurrency prices are highly volatile and can fluctuate widely in a short period of time. As such, trading cryptocurrencies may not be suitable for everyone. Additionally, storing cryptocurrencies on a centralized exchange carries inherent risks, including the potential for loss due to hacking, exchange collapse, or other security breaches. We strongly advise that you seek independent professional advice before engaging in any cryptocurrency trading activities and carefully consider the security measures in place when choosing or storing your cryptocurrencies on a cryptocurrency exchange.

  • Persistence ($XPRT): Bringing DeFi to institutions?

    Persistence ($XPRT): Bringing DeFi to institutions?

    Persistence ($XPRT) is an asset-based lending/borrowing and debt issuance/management hybrid protocol, bringing the power of real-world assets to DeFi. It does so by facilitating crypto-assets borrowing, using real-world assets as invoiced NFTs, and then using them as wrapped financial products.

    Persistence One is designed to enhance the transfer of value between the two worlds of finance by enabling value transfer through seamless interoperability via on-off ramps. It was developed to promote open and inclusive finance in addition to solving inefficiencies in payments and financing.


    Check out our interview with CEO and Co-founder Tushar Aggarwal

    https://youtu.be/rGNtrNUyTEY
    Bridging DeFi and traditional finance- Persistence w/ Tushar Aggarwal

    What is Persistence?

    Persistence is an asset-based lending/borrowing and debt issuance/management hybrid protocol, bringing the power of real-world assets to DeFi. It does so by facilitating crypto-assets borrowing, using real-world assets as invoiced NFTs, and then using them as wrapped financial products.

    Persistence One is designed to enhance the transfer of value between the two worlds of finance by enabling value transfer through seamless interoperability via on-off ramps. It was developed to promote open and inclusive finance in addition to solving inefficiencies in payments and financing.

    Background And History

    The project was launched in January 2020. The Persistence team is multicultural and consists of experienced members with sound technical backgrounds. They come from various traditional finance and blockchain companies. As such, they are familiar with the limitations of the current DeFi and centralised finance (CeFi) systems and are aware of what needs to be improved.

    Persistence protocol is led by CEO Tushar Aggarwal and CTO Deepanshu Tripathi, both with legacy finance applications development experience. The team believes that three core elements namely Capital, Technology, and Media are crucial for the success of a project and work to establish a balance between them.

    How does Persistence work?

    Their mode of operation lies in four steps of (1) tokenization; (2) trading; (3) the origination of debt and (4) its securitization. The process begins with tokenizing real-world assets’ invoices as NFTs. This is done so that the assets can be represented adequately on the blockchain.

    Next, comes the trading of such NFTs against stablecoins.

    Stablecoins are then borrowed by putting real-world assets representing NFTs as collateral, the birth of loans. The fourth and last step is the packaging of the loans into different pools to create fixed income investable products – a process known as securitization of debt. 

    Why use blockchain?

    A key question at this point relates to the reason and advantages of using blockchain for such activities. The mission of Persistence is to increase the speed and efficiency of value transfer, as well as make it more secure. As it happens, blockchains specialize in such matters.

    Some advantages for Persistence to use blockchain for their operations includes:

    1. It allows for capital movement in a trustless, borderless, and “free from time constraints” manner.
    2. Blockchains permit invoices, letters of credit and bills of lading, etc. to be tokenized and turned into divisible assets as NFTs.
    3. Introduces the decentralized exchange for uncensorable and secure trading of real-world assets against stablecoins.
    4. Results in the creation of debt marketplaces for lending/borrowing.

    Persistence’s approach

    Persistence has applied a dual-focus approach for the successful execution of the project. The institutional focus utilizes the asset-based lending use case for physical commodity traders and financiers. Secondly, is the crypto focus, which allows blockchain-based assets to integrate with real-world yield-bearing assets.

    Persistence blockchain system

    As a Proof of Stake (PoS) blockchain system, the protocol has three layers of Persistence chains (app-chains deriving security from the main-chain and its validators), Persistence SDK (a plug and play module system powering functionality on the network), and Persistence dApps (finance-based applications).

    Its design principles are chain sovereignty (independent secure blockchain operation), liquidity, and usability for business purposes. The Persistence protocol blockchain system is privacy-preserving by default yet legal and regulatory-compliant, is integrated with FIAT on and off-ramps, and allows for simplification of processes.

    Persistence SDK is by far the platform’s most important implementation of the blockchain. The Software Development Kit is a system of highly effective modules that enable the creation of marketplaces, yielding to a fast and comprehensive exchange of value.

    Overall, the SDK protocol is characterized by four key features, being accessibility, liquidity, innovation, and sustainability. These factors power the protocol and allow the Persistence One platform to elevate physical commodities on-chain as NFTs. 

    Additionally, through the SDK factors, the platform can efficiently implement crypto with real-world use cases ensuring a continuous stream of sustainable income. By doing so, it unlocks a huge potential for MSME businesses in the DeFi sphere through untapped liquidity; thereby providing tremendous opportunities within the crypto space.

    Persistence’s asset-based lending platform Comdex

    The protocol has developed the Comdex decentralized commodities trading and financing platform that connects commodities traders, while also providing financing facility to sellers. It is commodity agnostic and can allow for trading diverse groups of commodities, ranging from metal to food products.

    Comdex, for regulatory compliance, would require Anti Money Laundering (AML) / Know Your Customer (KYC) checks before on-boarding. It would also feature a trader’s right access system to determine access to particular commodities, opening trade, executable trade size, etc. On top of everything, all activities will be recorded on the open blockchain.

    Comdex is the result of a partnership between the Persistence One dynamic team and trading entrepreneurs in Singapore that rely on the platform’s ecosystem to bring forward blockchain integration. As per recent developments, the Comdex protocol has been gaining traction within the blockchain. 

    Comdex has already managed more than $55 million in transaction volume, far ahead of its competitors in terms of assets on-chain.

    What is pLend, Persistence’s lending platform?

    Backed by real-world assets, Persistence Lend or pLend is a stable coin lending platform that facilitates the supply of liquidity to pools for all Comdex transactions and dealings. pLend empowers stablecoin holders and enables them to supply liquidity, generating huge returns from real-world income and assets.

    So far, pLend’s unique implementation has bridged the gap between traditional finance (TradFi) and DeFi. The lending platform will allow users to engage in the $65B global trade within the financing sector.

    Overall, pLend guarantees participants huge returns on their assets without the need of often unsure mainstream DeFi solutions.

    AUDIT.one

    Described as a subsidiary to Persistence One, AUDIT ensures top-tier validation services for leading PoS networks through secured Tier 3 and 4 data centers across the globe equipped with a multi-cloud architecture.

    Presently, a total of nine networks has entrusted AUDIT.one with approximately $120M worth of assets, including Cosmos, Terra, Matic Network, and NEAR. Additionally, well-known networks like Polkadot and Ethereum 2.0 have shown interest in the Persistence-based protocol.

    Persistence token ($XPRT)

    Persistence has a native token known as $XPRT built as an ERC-20 based token (for now) and has a 100M supply). Its main uses are staking (for participation in network security), community governance (allowing holders to vote on important matters), rewards (for contributing to the network), and work token (deriving value from the activities on the network).

    XPRT StakeDrop

    The StakeDrop campaign is made possible through the pStake protocol that guarantees the issuance of representative tokens (stk Tokens) on Ethereum which are backed by the staked assets. 

    In the case of ATOM; illiquid staked ATOM tokens can be converted to liquid representative ER-20 tokens that can be utilized within the immense and growing DeFi space, backed by the Ethereum blockchain. This means that newly staked ATOMS will now be able for use as collateral when borrowing different stablecoins.

    Through this system, participants are provided with the opportunity to implement differential strategies in accordance with their needs within the blockchain. 

    pStake offers a unique way to stake PoS tokens and in the near future, a percentage of all tokens staked via pStake will also be staked through the AUDIT.one validator, thus ensuring the growth of both protocols within the blockchain.

    Can Persistence successfully appeal to institutional clients and companies?

    The current DeFi infrastructure isn’t conducive to institutional clients and companies. This is mostly because current DeFi projects have institutional red-flags such as pseudo-anonymity, open transaction and activity details, having no legal compliance, having only crypto-based settlements, and having complexities transferred to the users (gas payments, security, key management, risk management, etc.)

    However, the Persistence protocol offers verifiable anonymity, hidden transaction details and records, is legally compliant, has FIAT-based settlement guarantees and simplified process – gas payments, security and key management run by the platform. It also provides an institutional-grade infrastructure that these clients are used to.

    Conclusion

    Persistence is a strong contender for overcoming the obstacle to DeFi being widely used by institutional clients, companies and enterprises. It does this by offering anonymity, hidden transaction records and most importantly, be legally compliant. In these respects, Persistence can help blockchain move from a speculative phase to being used in the real world, including traditional finance.

    Decentralised Finance (DeFi) series: tutorials, guides and more

    With content for both beginners and more advanced users, check out our YouTube DeFi series containing tutorials on the ESSENTIAL TOOLS you need for trading in the DeFi space e.g. MetaMask and Uniswap. As well as a deep dive into popular DeFi topics such as decentralized exchanges, borrowing-lending platforms and NFT marketplaces

    The DeFi series on this website also covers topics not explored on YouTube. For an introduction on what is DeFi, check out Decentralized Finance (DeFi) Overview: A guide to the HOTTEST trend in cryptocurrency

    Tutorials and guides for the ESSENTIAL DEFI TOOLS:

    More videos and articles are coming soon as part of our DeFi series, so be sure to SUBSCRIBE to our Youtube channel so you can be notified as soon as they come out!

    Disclaimer: Cryptocurrency trading involves significant risks and may result in the loss of your capital. You should carefully consider whether trading cryptocurrencies is right for you in light of your financial condition and ability to bear financial risks. Cryptocurrency prices are highly volatile and can fluctuate widely in a short period of time. As such, trading cryptocurrencies may not be suitable for everyone. Additionally, storing cryptocurrencies on a centralized exchange carries inherent risks, including the potential for loss due to hacking, exchange collapse, or other security breaches. We strongly advise that you seek independent professional advice before engaging in any cryptocurrency trading activities and carefully consider the security measures in place when choosing or storing your cryptocurrencies on a cryptocurrency exchange.