Boxmining v2

Author: max.maiboroda

  • Injective ($INJ): Blockchain built for finance?

    Injective ($INJ): Blockchain built for finance?

    Injective ($INJ) aims to create a financial system that is truly free and inclusive through decentralization. With the fastest blockchain built for finance and plug-and-play Web3 modules, Injective’s ecosystem is reshaping a broken financial system with dApps that are highly interoperable, scalable, and truly decentralized.

    Although Injective is a decentralized platform, it moves away from the stereotype definitions of such platforms to bring a new era of DeFi with better functionality. For example, it provides the liquidity that matches that of CEXs. To understand how it achieves this and more, let’s take a more in-depth look into the platform.

    Check out our interview with Co-founder and CEO Eric Chen!

    Injective FRENZY: Interview with CEO Eric Chen

    Background

    Injective was founded in 2018 and incubated by Binance Labs. They are developed by a team with a vast experience in blockchain technology and other closely related technologies. Its Co-founder and CEO, Eric Chen, is a protocol researcher at Investing Capital, while its CTO, Albert Chon, is a software developer at Amazon.

    Others include full-stack developers, Solidity developers, and Golang developers. Moreover, the Injective team comprises members experienced in ASIC design and computer science.

    Apart from the core team members, Injective is supported by notable names in the industry, such as Binance, Pantera, Jump and Mark Cuban.

    What is Injective?

    Injective brings the features of centralized exchanges onto DEXs. The network brings speed, security, and liquidity into DEXs unlike most of the top projects at the moment,  and thus, aiding DeFi adoption. The system achieves this through a layered design and the employment of various technological advancements.

    3 Main Features of Injective

    Inter-chain Trading

    By interfacing with other blockchain-based networks, Injective can support many trading pairs. Consequently, traders can choose between trading pairs considering their profit margin. Ethereum, INJ, MKR, and DAI are the cryptocurrencies tradable on the Injective platform.

    A Combination of DeFi and Derivatives

    Injective has its eyes set on the DeFi space. For this reason, it includes features that enable the interaction between DeFi networks and the digital currency derivatives space, which culminates with an innovative trading offering.

    Distributed Futures and Margin Trading

    This is among the differentiating factors in the Injective ecosystem. It allows traders to trade futures and derivatives while enjoying the fruits of decentralization.

    What’s in it for Users?

    Through its features, it is evident that the platform is focused on end-users. Among the immediate benefits are security, low entry barrier, flexibility, convenience, speed, trust, and liquidity.

    5 Primary Layers of Injective

    The 5 primary layers of Injective are interlinked. Below is its technical architecture.

    injective technical architecture
    Injective’s technical architecture (Image credit: Binance Research)

    Let’s take a look at each of the layers in detail.

    Injective Chain

    The Injective chain forms the network’s core and powers decentralized trading. However, instead of being a full chain per se, it is actually a sidechain that is connected to the Ethereum blockchain. Notably, Ethereum is the home of the vast majority of the DeFi platforms.

    Moreover, the chain, through a connection to the Cosmos IBC, provides cross-chain functionalities. This layer acts as a derivatives platform and holds the exchange’s distributed order book.

    In addition, the Injective chain comprises a system that coordinates the platform’s trades, an execution space for the Ethereum virtual machine (EVM), and a bridge that makes it easier to interact with Ethereum-based tokens on Injective. Note that EVM handles the execution of smart contracts allowing for the creation of decentralized applications (Dapps).

    Other features domiciled in the Injective chain include, but are not limited to, DEX contracts, derivatives contracts, 0x V3 exchange contracts, and the staking contract.

    Exchange Client

    The client allows permissionless participation on the network by supporting an open-source front-end. For ease of use, it has a professionally designed graphical user interface that appeals to both novice and experienced users.

    API Provider

    Application programming interface (API) providers form a key part of the Injective ecosystem by interacting with transactions and acting as a data layer.

    An API node can either provide a transaction relay service or be a data layer. As a transaction relay service, it provides mechanisms for users to interact with the system.

    On the other hand, API providers acting as a data layer provide data and analytic capabilities to external users.

    EVM RPC Provider

    This aspect of Injective deals with the interconnection between Injective and Ethereum.

    Ethereum Bridge

    The bridge provides an interface for exchanging tokens built using the Ethereum standard (ERC-20). Also, it creates a peg-zone where the exchange takes place.

    Injective Token (INJ) and its Use Cases

    Injective has a native token called INJ. It has a maximum circulating supply of 100 million tokens. Though only around 15.2 million tokens are in circulation, it is projected to increase due to inflation, which happens at roughly 7%. Luckily, the platform has instituted measures to reduce inflation to around 2% over time.

    The token was first made available to the public via Binance Launchpad, the exchange’s Initial Exchange Offering (IEO) platform. INJ is currently listed on Binance and on Uniswap.

    INJ Token’s Uses on the Injective Platform

    • Offering discounts on transaction fees – Traders on the platform are charged less when paying their transaction fees using the network’s native currency.
    • Rewarding stakers – Since the platform supports staking, rewards to stakers are paid using INJ.
    • Governance rights – Being a decentralized community-focused platform, governance-related issues are decided by the Injective community. However, to participate, members have to hold INJ.

    The more the tokens held, the stronger the voice on the governance table since INJ is required when submitting a proposal and when voting.

    • Providing passive income – Apart from paying staking rewards in the native token, INJ can be locked in a wallet to attract tips.
    • Incentivizing market makers – Market makers or liquidity providers are key roles. Therefore, to attract more liquidity, the platform uses its native token to incentivize liquidity providers.

    Injective CosmWasm Upgrade

    On 5th July 2022, Injective’s Injective CosmWasm Mainnet upgrade has gone live. As a part of this upgrade, Injective will have, among others, the following updates:

    • Smart contract support with CosmWasm;
    • Automatic smart contract execution;
    • Support for negative maker fees; and
    • Support for binary options markets.

    Smart Contract Support with CosmWasm

    As a result of the latest upgrade, Injective now supports smart contracts by CosmWasm. The name “CosmWasm” comes from the combination of 2 things- Cosmos, and WebAssembly. CosmWasm is a smart contract platform built for the Cosmos ecosystem, its unique feature is that it allows developers to build multi-chain smart contracts using the InterBlockchain Communication (IBC) Protocol. Furthermore, this update will allow developers to build applications on Injective whilst at the same time making use of the existing core modules provided by Injective. For example, developers can use Injective’s decentralized order book module to create other decentralized apps (dApps) such as exchanges, prediction markets, lending protocols etc.

    Automatic Smart Contract Execution

    The latest mainnet upgrade also allows smart contracts to be executed automatically at every block. This is unique because generally, smart contracts require an external agent such as a user to manually invoke the contract and trigger the logic associated with the contract. Now, with the CosmWasm platform, smart contracts can be triggered individually and block by block, meaning that developers can create truly decentralized and permissionless applications.

    Negative Maker Fees

    In cryptocurrency trading, exchanges usually charge trading fees on a maker/taker structure, with maker fees being charged when the user places an order that goes onto the order book (whether fully or partially) i.e. “making” the market or providing liquidity.

    Injective charging negative maker fees mean that instead of users paying, users will receive a percentage of their trade as a rebate. The community will be invited to submit governance proposals for which trading markets they would like to implement negative maker fees, so the decision is left in the community’s hands.

    The overall benefit to the Injective community would be that it would encourage more users, thereby increasing liquidity for more orders and trading options.

    Binary Options Support

    Binary options are a type of financial contract, where there are 2 options based upon the outcome of an underlying asset or question. And when the correct answer occurs, there will be a payoff. Having binary options support on Injective means that new and diverse types of apps can be built on the platform, for example, those involving prediction markets.

    What is the Injective Volan upgrade?

    Injective’s Volan upgrade is expected to be the largest mainnet update in the project’s history. The Volan upgrade comes as the result of months of research and development and will involve a hard fork of the Injective network. Here are some key features that will be introduced in the Volan upgrade:

    1. Sub-second block times: Injective will achieve near-instant finality with sub-second block times, enabling fast and seamless transactions for users and developers. This will also reduce the risk of front-running and MEV attacks, which are prevalent on other blockchains.
    2. IBC integration: Injective will become fully interoperable with the Cosmos ecosystem and other IBC-enabled chains, allowing users to transfer assets and data across different networks. This will open up new possibilities for cross-chain composability and innovation, as well as access to a vast pool of liquidity and users.
    3. CosmWasm and EVM smart contracts:Injective will support CosmWasm, a smart contract framework for the Cosmos ecosystem that allows developers to write smart contracts in any programming language that compiles to WebAssembly. Injective will also maintain its compatibility with the Ethereum Virtual Machine (EVM), allowing developers to deploy existing Ethereum smart contracts on Injective with minimal changes. This will enable developers to create diverse and complex applications on Injective, such as decentralized exchanges, lending protocols, prediction markets, NFT platforms, and more.

    When is the Injective Volan upgrade?

    The Volan upgrade will take place at block height of 57,076,000, or approximately 2:00pm on 11th January 2024 (UTC). Some exchanges such as Binance will temporarily suspend deposits and withdrawals of tokens on the Injective network from 1:00pm on 11th January 2024 (UTC) to support the network upgrade.

    Injective ecosystem token airdrop?

    Injective is doing an airdrop for the Injective ecosystem. Here are 3 ways you can position yourself for a potential Injective token airdrop:

    1. Staking on Injective validators: We suggest participants mostly focus on this item since staking on Injective validators may qualify you for other token airdrops.
    2. Mainnet interactions: You can position yourself for a potential airdrop and earn yields by depositing $INJ or other cryptocurrencies into the Black Panther vaults. Another option is to trade Injectives NFTs Talis Protocol, which is also very popular amongst users as they have also announced an airdrop. You can also trade or provide liquidity on Helix, which is a decentralized exchange and they are also doing an ongoing airdrop.
    3. Testnet interactions: Some protocols on the Injective ecosystem offer incentivized testnets which allow you to position yourself for airdrops without putting in any actual cryptocurrencies or funds. These include Ninja Blaze and Aeroscraper.

    Learn more with our Injective ($INJ) ecosystem token guide

    Conclusion

    By providing the required liquidity to power an active trading experience on a decentralized platform, Injective can siphon users from CEXs to DEXs. Consequently, cryptocurrency users and traders are hedged away from potential risks.

    In addition, enabling cross-chain interaction opens the platform to DeFi enthusiasts. Additionally, providing support for ERC-20 tokens increases interaction with DeFi tokens and protocols.

    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.

  • Radix DLT ($XRD): Taking DeFi to the next level?

    Radix DLT ($XRD): Taking DeFi to the next level?

    Radix DLT is a layer 1 distributed system to power the needs of the decentralised finance (DeFi) ecosystem. As DeFi continued to gain traction, the top blockchain networks supporting the market were already overstretched. As it turns out, scalability appears to be a hard nut to crack and hence projects like Radix DLT are formed.

    The motivation behind the Radix protocol’s creation is to save the $71 billion lost every year caused by unnecessary friction in the conventional financial system and allow those at the lower and higher levels of finance to make ground by powering a strong DeFi ecosystem.

    Check out our video which explains the scaling problems currently faced by Ethereum, and how Radix attempts to solve it.

    Taking DeFi to the NEXT LEVEL ? – Radix DLT Protocol overview

    Background

    The Radix team believes that using distributed ledger technology (DLT) to build a permissionless network will ease the development and accessibility of innovative financial applications. With these applications, we could finally bring down the guarded walls of traditional financial markets.

    Radix team (Image credit: Radix DLT)

    The project was founded by Dan Hughes, who also happens to be its CTO. Hughes’s former work includes the design of T-Mobile’s first mobile internet platform.

    Other team members include the organization’s CEO, Piers Ridyard, as well as CPO, Albert Castellana. The project is being supported by the Radix Foundation.

    What is Radix DLT?

    The team behind Radix DLT defines the project as the “first layer 1 protocol specifically built to serve DeFi.” The protocol seeks to remove the inefficiencies found in open finance (OpFi) both in the current and future settings. Hughes and his team want to achieve this through:

    • Re-engineering the consensus mechanism used in popular blockchain systems.
    • Employing decentralized virtual machines.
    • Activating on-ledger code.
    • Building DeFi-bound components and applications.
    • Incentivizing developers who drive the growth of the new-found financial breakthrough.

    Having its developers at the core of driving growth for innovative financial products, Radix provides its support by building highly-secure smart contracts, fast and interoperable OpFi decentralized applications (dApps), engaging and rewarding a distributed developer community, and guarding DeFi composability when scaling dApps on public blockchains.

    Radix network

    The network is made up of Cerberus (a consensus mechanism), Radix Engine (a development environment), Radix Component Catalog, and developer royalties.

    Cerberus

    At the heart of the protocol is Cerberus, a re-engineered consensus mechanism which uses a sharded Byzantine fault-tolerant (BFT) solution. This approach enables the system to be parallelized across multiple nodes without losing message complexity and responsiveness.

    The sharding concepts allows unlimited network splits or shards. Each shard can represent anything on the platform. By allowing unlimited shards, Cerberus shifts focus from global ordering to partial ordering.

    With global ordering, transactions are stored in a predefined chronological order. Partial ordering, at a very basic level, is the opposite of agreed chronological ordering. However, partial ordering has to differentiate between related and unrelated events or transactions when recording them on the blockchain.

    Using a “braiding” mechanism, Cerberus uses a new BFT-style system to sign interactions between nodes handling different shards before committing transactions.

    Radix Engine

    This is Radix’s specialized application layer that powers the interaction between a smart contract’s code with the actual blockchain. The layer powers the project’s virtual machine (VM), which in turn, powers the partial ordering system.

    Furthermore, the Radix VM handles concurrency to drive DeFi applications further.

    Radix Component Catalog

    In other blockchain systems, a developer’s work becomes an active smart contract after being pushed to the system’s users. For Radix, the component catalog handles apps before being registered as “active” on the platform.

    Radix Network (Image credit: Radix Whitepaper)

    In other words, the catalog contains templates ready for use to create additional active components. The new template-based products are called instantiated components.

    Developer Royalties

    The Radix system uses developer royalties to encourage developers to contribute. However, the project takes a different approach by employing distributed self-incentives such as those found in proof-of-work systems called mining rewards.

    Radix Token ($XRD)

    The platform has a native token, XRD, which is used to pay for transaction fees. Note that these fees are paid to node runners.

    A transaction fee is charged for token creation, messaging, and anything else that requires a change of the ledger state. The fee is burnt upon validation of the operation.

    Furthermore, the platform’s tokens have a controlled unlocking mechanism that spans 365 days. With each unlocking, the Radix Foundation’s amount of XRD reduces while those in the public domain increases.

    E-Radix (eXRD) Token Sale and tokenomics

    Radix Token Sale began on 8th October 2020 and a total of 642mil E-RADIX tokens were available to purchase at $0.039 per token.

    There will be an Initial Supply of 4.41 billion E-RADIX as both locked and unlocked tokens. The following chart shows the proposed distribution of the Initial Supply tokens.

    Radix proposed distribution
    Radix proposed distribution

    The unlocking mechanism for E-RADIX tokens will start on 17th November 2020. Of the Initial Supply of 4.41 billion E-RADIX tokens, 4.2 Billion tokens will be distributed and of which 99% will be locked and 1% unlocked.

    These locked tokens are subject to a price-based unlocking schedule which will allow holders to withdraw the tokens at certain price milestones as follows:

    Radix token unlock schedule
    e-Radix token unlock schedule (Image credit: Radix token sale info page)

    E-RADIX will be available for trading on Uniswap.

    This E-RADIX token is an ERC-20 token. When the RADIX ledger is instantiated, this E-RADIX token will be exchangeable 1:1 for RADIX (XRD) tokens. As mentioned in their key milestones article, the Team are on track for the Radix main net to go live in Q2 2021.

    On the mainnet, Radix will create a further 5.19 billion RADIX tokens which will also follow the same unlocking schedule as the E-RADIX tokens mentioned above.

    How to withdraw your unlocked E-RADIX (eXRD) and RADIX (XRD) tokens

    As mentioned in the previous section, E-RADIX and RADIX tokens are subject to a price-based unlocking schedule. However, to claim these tokens you will need to withdraw them from the unlocking smart contract.

    This involves visiting their Radix tokens unlocking website and connecting the wallet that you used to purchase the E-RADIX tokens. If that wallet address has an allocation of EXRD in the unlocking smart contract, you will see details of your total allocation together with the amount which is unlocked and can be withdrawn. Then all that is required is to click the “withdraw” button and follow the steps to withdraw the eXRD.

    Make sure to check back when an unlocking event occurs because it will mean you can withdraw more tokens!

    For a detailed walkthrough on how to claim your unlocked tokens, click here.

    Staking Radix Token

    With OpFi, staking, yield farming, and liquidity mining are common occurrences. Radix powers this DeFi subset by allowing users to lock their XRD to earn network emissions and be involved in decision making.

    Network emissions are periodically generated tokens that are spread across active staking nodes while considering the amount of staked tokens. Emissions make up for 2.5% of the yearly inflation rate.

    There are two approaches to locking tokens:

    1. A user can lock XRD and become a node runner on the network; or
    2. a user can lock Radix tokens and delegate his stake to another node runner, also called a staking node. A staking node has the power to validate transactions.

    Radix’s consensus mechanism limits the stake weight per node to 33% to prevent node runners from having absolute power over the transaction validation process.

    Network Subsidy

    The network subsidy is an additional amount of tokens distributed to transaction validators. The tokens are unlocked by the Radix Foundation every 24 hours and are expected to run for 10 years. However, to earn the subsidy tokens, a staking node has to consistently meet specific factors on responsiveness, bandwidth, and computing power.

    Other Radix token categories are the public token grant to support community contributors, the Radix team token grant to support the team, and the stable token reserve that supports stable coins on the network.

    Conclusion

    The projected growth of the DeFi market requires creating new distributed systems that, if possible, have unlimited scalability. Radix is one such project. With a key focus in leading the migration from centralized finance (CeFi), the project provides hope to the future of OpFi.

    From a re-designed consensus mechanism to decentralized self-incentives for developers, the project is keen on ensuring that DeFi overshadows CeFi.

    The Radix token supply approach is another key component of the network that shifts from the traditional approach of major blockchain-based systems that power OpFi protocols.

    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.

  • Another huge Defi-Exploit, Ankr protocol attacked for 10 trillion aBNBc tokens

    Another huge Defi-Exploit, Ankr protocol attacked for 10 trillion aBNBc tokens

    In a shocking turn of events, the Ankr aBNBc contract was recently attacked, resulting in the creation of an additional 10 trillion aBNBc tokens. This is particularly concerning because BNB Chain had recently launched the liquid staking feature, which allowed users to earn interest by staking their BNB tokens to the liquid staking agreement and receiving aBNBc tokens in return. The attack happened in the following transaction: https://bscscan.com/address/0xf3a465c9fa6663ff50794c698f600faa4b05c777

    Quick Summary:

    1. Ankr aBNBc contract was attacked, resulting in the creation of 10 trillion additional aBNBc tokens.
    2. Ankr announced they would purchase 5 million BNB worth of tokens to compensate the liquidity providers.
    3. Tornado Cash is being used to launder the stolen funds
    4. Ankr had previously received an Audit from Peckshield warning about a “trust issue of Admin Keys”, which had the potential to be used for privileged minting of aBNB tokens.
    5. Companies must take security warnings seriously and address any potential vulnerabilities as soon as possible to avoid catastrophic financial losses and reputational damage.

    What is the Ankr Platform

    Ankr is a blockchain-based cross-chain infrastructure with a DeFi platform that enables staking and dApp development, and was designed and developed with the goal of creating a decentralized, private, and secure internet. Through the Stkr protocol, users are able to stake Ethereum (ETH) in return for aETH, which represents the future gains on their deposited staking balance. With their mainnet launched in 2019, users can deploy development nodes and build dApps on the network, or deploy staking nodes and become stakers on the ANKR Web3 platform.

    What happened with the exploit

    The Ankr Exploiter was able to transfer 900 BNB into Tornado Cash, which caused the price of aBNBc to drop by 99.5%. In response to this security breach, Ankr announced that they would purchase 5 million BNB worth of tokens and use them to compensate the liquidity providers. Additionally, they plan to take a snapshot and reissue ankrBNB to all valid aBNBc holders before the exploit.

    Ankr’s response to the incident

    Tornado Cash is an Ethereum-based noncustodial privacy platform that provides users with the ability to deposit and withdraw ERC-20 tokens and ETH without revealing the source of the funds. A secret hash is generated by the protocol whenever a user deposits funds into the liquidity pools and this hash is used to prove ownership when they wish to withdraw. This ensures that the source of the funds is untraceable, providing total asset privacy. In 2020, ownership of Tornado Cash was transferred to its community, making it a fully decentralized protocol. As such, no one individual or entity has control over it, thereby ensuring that users can use the protocol in complete confidence that their privacy is secure.

    Damage will be minimal as Ankr is willing to compensate for damages

    This incident serves as a reminder that having an audit does not guarantee security. Ankr had previously received an Audit from Peckshield warning about the ‘trust issue of Admin Keys’, which had the potential to be used for privileged minting of aBNB tokens. Despite this warning, the team “Confirmed” the warning but failed to address the underlying issue.

    As this incident demonstrates, it is essential that companies take security warnings seriously and address any potential vulnerabilities as soon as possible. Without proper security measures in place, companies risk potentially catastrophic financial losses and reputational damage. It is therefore important that companies regularly review their security protocols and remain vigilant against possible threats.

  • OIN Finance ($OIN): DeFi’s first foray into Ontology

    OIN Finance ($OIN): DeFi’s first foray into Ontology

    OIN Finance ($OIN) devised a way to build a Decentralised Finance (DeFi) project that seeks to deliver what most Ethereum products can too, but on a different blockchain — the Ontology network. This can potentially solve issues of blockchain congestion and rising gas fees which recently is a cause for concern and a real obstacle to mass adoption.

    As the first DeFi project running on Ontology, it is interesting to know what they have done and what they have in store in the space in the months to come.

    Check out our explainer video on OIN Finance:

    Background

    Renard Zhang, CEO of OIN Finance and his team began the project with a three-pronged mission of promoting DeFi, becoming a gateway for DeFi, and helping it grow into a more mature market. The team helped recreate the developments of the decentralized technology from the Ethereum ecosystem into the Ontology blockchain.

    What is OIN Finance?

    OIN Finance is a DeFi ecosystem focused on providing a liquidity pool lending platform on top of the Ontology network. Its purpose is to create a cross-chain interoperable platform for services like lending, borrowing, swapping, and minting of stablecoins.

    With OIN, users can add liquidity on their own decentralized exchanges (DEX) and build their own market makers through OINSwap. Another project inside the OIN ecosystem is OINLend, where users can make loans or borrow cryptocurrency assets.

    Other services available in the ecosystem are OINWallet, OINDAO, and the USDO stablecoin. Through OIN’s bridge technology, these services built on the platform can be accessible to the Ethereum community, as well.

    For now, OIN is focusing on building the Ontology network to provide low-cost services while avoiding the congestion problems that users experience in the Ethereum blockchain, more so recently. Once the project has a strong enough user base on the ONT DeFi platform, they can move to scale the project further.

    The road ahead for OIN is to first build a community of early adopters and give them an opportunity to be a part of the initial pool of stakers. Then, it can be made available to the larger public.

    Cross-chain interoperability

    OIN’s architecture enables the growth of not only its own platform but also the whole DeFi space, by linking several blockchains together. Its cross-chain design opens up the platform to other existing networks to expand offerings to a vast number of users.

    Decentralization

    By adopting Tendermint’s consensus algorithm, nodes can function without any problem whilst trying to achieve consensus. And through its own stablecoin, there are enough incentives for nodes to continue securing and maintaining the health of the network.

    Data Security

    OIN uses Merkle proof to secure the data of its users. In such a set-up, any information on actions initiated on top of the Ethereum blockchain will be kept in a secure line of codes so they cannot be written back to.

    OIN Finance’s Services

    OINSwap V1 Pool

    OIN will launch the first DEX on Ontology, enabling Ontology users to conveniently trade their ONT tokens with the tokens supported by OIN. The swap pool powers the whole DEX while its prices are determined by prevailing market conditions. V1 and V2 pools are currently in the works and there is no official launch date yet.

    OIN swap v1 pool
    OIN swap v1 pool

    OINSwap V2 Pool

    As soon as the cross-chain bridge is successful, and ERC-20 assets can run to and from the Ontology network, they can begin the operation of OIN Swap’s V2 pool. In here, OIN tokens are used to reflect the value of some tokens into OIN Swap.

    OIN Swap v2 pool

    OIN Wallet

    OIN Wallet can be used to store tokens supported by the Ontology and Ethereum network. As soon as the second phase of the project is completed, which is to successfully run the Ontology-Ethereum bridge, OIN wallet can be able to access other Ethereum-based DeFi projects. These are protocols such as Curve, Balancer, or Compound.

    OIN wallet
    OIN wallet

    USDO

    USDO is the stablecoin of the network, pegged to the US Dollar. It is the first decentralized stable token built on top of Ontology. USDO is backed by Ontology’s native token, ONT.

    The stablecoin can be used to deposit into OIN Swap or OIN Lend pool to gain profits from staking and liquidity mining.

    $OIN Token

    OIN token is the native asset of OIN Finance. It will be utilized as the governance token, as well as for collateral rewards and clearing compensation.

    Through OIN token, the platform implements a community governance model to manage operations. Elaborately, the token can be used to pay for transaction fees, staking, or community voting.

    OIN token is hugely popular. The public sale of the token was around 50 times oversubscribed and was launched on Uniswap and Bitmax and BiBox on 3rd September 2020. Those lucky few that were able to get into the public sale, purchased their OIN tokens at USD$0.08, and considering prices of OIN at the time of writing is almost USD$1, these holders have every reason to be ecstatic.

    OIN DAO

    OIN DAO also has the ability to issue USDO. Since USDO is collateralized by ONT, it has its own pool in the Ontology platform. Those who have ONT can mint USDO at an initial collateralization rate of 300%.

    The clearing mechanism (similar to how liquidations work in MakerDAO) kicks in if the collateralization of the USDO drops below 180%. But if users do not wish to borrow or lend USDO, they can send them over to OIN Swap or OIN Lend to do liquidity mining.

    OIN Lend

    Lending is decentralized on the OIN platform. Through smart contracts, both lenders and borrowers can safely deposit tokens to become underlying assets on the platform. Then, OIN chooses between different tokens supported by the Ethereum and Ontology network to mint OIN tokens at a specific exchange rate.

    A minimum over-collateralization of 150% is required for loans, similar to other DeFi lending protocols. The interest fees are determined automatically by smart contracts based on different market factors such as supply and demand.

    Interests are accumulated per block and a portion of it is kept in the reserves. This is to allow lenders the option of withdrawing their token deposits should they wish to do so.

    OIN Chain

    OIN Chain is a layer built on top of the OIN platform designed to support the cross-chain interoperability feature of the protocol. This will help integrate Ethereum’s DeFi projects to also supply more assets in the Ontology network. (nelsongreerpainting)

    It will be a multi-functional adaptor that will bridge both Ethereum and Ontology, as well as more public chains in other developments ahead.

    Liquidity Mining and Staking

    Half of all the OIN token supply is generated from liquidity mining and staking. The supply created via stakers will be derived from USDO collateral pools collected in the OIN DAO and OIN Lend platforms.

    OIN tokens that are created by way of liquidity mining will be injected in the OIN Swap pools. Once the OIN Lend pool is made available with its cross-chain architecture in place, ERC-20 compliant tokens can be staked too.

    Exactly 40% of all minted tokens are distributed every day via staking rewards, while the remaining 60% will be distributed as liquidity mining rewards. Through OIN DAO, the community can decide how to shift the ratio of the daily reward allocation for the network.

    Conclusion

    As one of the pioneers of DeFi on the Ontology network, the outlook for OIN Finance appears increasingly positive, especially with Ethereum’s rising gas fees. While the number of DeFi projects launched on the Ethereum blockchain increases daily, whether they can continue to sustain their operations continues to be a prevailing concern.

    Establishing a successful proof of concept on top of other platforms for DeFi projects can be helpful for the community and whole crypto space at large. After all, it only adds more options for users to explore the services that fit their needs best.

    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.

  • Cream Finance ($CREAM): What is it?

    Cream Finance ($CREAM): What is it?

    CREAM Finance ($CREAM) stands for Crypto Rules Everything Around Me. The project began with a vision to establish a financial system more accessible than its traditional counterparts. So CREAM has created an ecosystem that can be linked with other Ethereum platforms to efficiently provide a spectrum of services for its users. The liquidity mining trend, which is currently the most talked-about aspect of the decentralised finance (DeFi) space due to its potential high returns has also helped CREAM establish its popularity and footing in this field.

    Background

    Jeffrey Huang, the Founder of CREAM Finance, believes in the capacity of cryptocurrencies to create an open and inclusive financial system. And through the help of smart contracts, Huang’s team went on to create a DeFi ecosystem that would link together multiple products and services that many users need today.

    In recent weeks, the team has been continuously working on expanding its listing and preparing for the launch of its CREAM token. The launch of their beta liquidity mining on 12th August 2020 has been the subject of discussions in some social media platforms.

    What is CREAM Finance?

    CREAM Finance is a DeFi ecosystem focused on providing lending, exchange, payment, and asset tokenization services. It also claims to operate a permissionless and open-source protocol so any other internet participant can be a part of the development of the network, instead of just using it or locking up funds in smart contracts for staking rewards.

    Financial inclusion is among the team’s primary goals. And the objective is to be able to achieve it without compromising the safety and security of each user and their assets.

    Since CREAM is established on the Ethereum blockchain, it can take advantage of smart contracts that can be used to run Ethereum Virtual Machines (EVM). Such a set-up also allows the CREAM project to have better composability than other DeFi projects.

    EVMs can also help community users develop their own decentralized applications (Dapps) on top of the network. However, there is very little detail on the community’s plans for such at the moment.

    CREAM plans to launch its own algorithmic money market protocol on top of Binance Smart Chain (BSC) in the weeks to come. When it is finally deployed, it might ensure that the platform can take advantage of the transaction throughput and cost-efficient servicing available only on the BSC and other similar chains. In addition, linkage with the Binance Chain can provide them with better liquidity through its access to the biggest cryptocurrencies.

    There has not been any report yet on the audits being done for CREAM’s smart contracts. But according to a recent release they made, they recently hired a security adviser to work on the necessary platform developments.

    The first monthly payment the team has made to the new adviser totaled to 37,500 CREAM. Some of the more prominent crypto advisers on-board is Robert Leshner, CEO of Compound Finance. Leshner acts as one of the team’s technical advisers.

    CREAM’s Lending Services

    The emerging trend of DeFi projects facilitating peer-to-peer lending services enticed the team behind CREAM to work on a protocol that can do something similar. Available assets that users can borrow from the CREAM ecosystem include BAL, COMP, ETH, CRV, LEND, REN, BUSD, USDC, USDT, and YFI.

    CREAM is looking forward to the launch of BSC. When it is already available, users can take advantage of CREAM’s link with Binance through the BEP2 standard, or pegged tokens, to make the transfers of XRP, BCH, LTC, and TRX much easier.

    Without having to wrap tokens, CREAM transactions on BSC can be performed faster and more affordably.

    CREAM Token and Liquidity Pools

    The CREAM token, i.e. the CREAM platform’s native asset is available on Uniswap and Balancer. As at 25th August 2020, the CREAM token market cap is over $11.8 million, with a circulating supply of 149,927 CREAM. The total supply, however, is at 9 million CREAM.

    CREAM was recently launched in August 2020 yet the platform already has a total of roughly $48 million in total value locked (TVL). Although it certainly wasn’t able to emulate Yearn Finance’s ($YFI) meteoric rise, it is still a notable DeFi protocol since it has gained a lot of traction after only being in the market for a few weeks.

    Since there is a growing number of crypto users participating in liquidity mining or yield farming, the team behind CREAM also launched their own liquidity mining program. On 24th August 2020, CREAM also announced their v3 Beta Liquidity Mining program, some of their updates include increasing the rewards for 3 of their pools.

    CREAM pools (Image credit: Cream Finance)

    Conclusion

    CREAM is a relative newcomer to this space and we can see that they are continuously building and listing more assets onto their platform. They have recently updated the rewards available on their liquidity mining pools and are transparent on their liquidity mining distribution. So be sure to check their Medium where they provide announcements and updates at least once a day. The team behind CREAM are also very responsive on social media in terms of answering people’s queries about them.

    Finally, considering the inclusion of some very prominent crypto personalities and their linkage with the biggest exchanges and protocols in the space, the future of CREAM looks promising so far. Looking at the service they are offering, it sure seems that it fits into what many cryptocurrency users need from the market.

    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.

  • Yam Finance – Elastic Supply Token gone wrong

    Yam Finance – Elastic Supply Token gone wrong

    YAM Finance is a new elastic supply token where the supply of the token expands and contracts in response to the token price – with the ultimate aim of stabilizing to a $1 USD PEG. A 12 hour “Rebase” will increase/decrease the total supply of the token depends on its price. This means that after a rebase, wallets holding YAM will experience changes to the balance even if no YAM is sent out of the wallet. This concept is similar to Ampleforth (AMPL). YAM has gained enormous attention after it’s launch on the 12 of August due to its extremely high Yield Farming (More than 1000% APY) rewards and Meme suitability. On top of this, the elastic supply of YAM means that it catches the attention of those who missed out on the AMPL hype train.

    VOLATILITY WARNING: YAM supply is currently VERY as it was only recently launched. Expect circulating supply to increase over the next few days.

    What happened to $YAM?

    Due to a smart contract bug, the $YAM smart contract is no longer governable and no future modifications can be made. Initially, as part of the experiment, $YAM had a governance feature that allowed the community to vote on new features and add functionality to the contract. However, the bugged smart contract meant it was impossible for the community to reach the quorum necessary to vote new features or fix the bug. This means that $YAM cannot be modified, nor can it be safely placed in Uniswap liquidity pools.

    $YAM migration plan in a nutshell

    YAM is not giving up! The old $YAM will be migrated to a new version of $YAM, which will be a fully audited version of the YAM protocol. Currently, Peckshield Inc has audited the migration contract and reported it to be a success. Any “low” or “informational” issues which were found during the audit have also been resolved. Yam Finance has deployed the migration contract which enables $YAM holders to migrate to the new version. (https://chacc.co.uk/)  But $YAM holders will only have 72 hours to complete the migration process i.e. until 22nd August 2020 at 4:20pm (UTC). After such time, YAM v1 tokens will no longer be eligible for migration. So pack up your $YAM bags and GET MOVING!

    Details on the migration plan can be found here.

    Yam Yield Farming

    Yam Farms for different tokens

    $YAM’s distribution will only be made to Yield farmers – platform participants who stake YFI, LINK, AMPL, COMP, MKR, LEND or $WETH on the platform. This is a more fair method of distribution as there is no pre-sale of the token to early investors. The developers have stated that they were inspired by $YFI to adopt the staking model to distribute YAM.

    YAM distribution and Supply

    YAM will have a total supply of 5,000,000 Tokens (not counting rebases)

    Yam will be distributed to these following staking pools on http://yam.finance: WETH, YFI, MKR, LEND, LINK, SNX, COMP, and ETH/APML Uniswap v2 LP tokens. During the initial launch, 2,000,000 YAMwill be distributed to the staking pools (250,000 per pool). There will be a second distribution “Wave-2” that will be distributed to the Uniswap pool with 1.5 Million per week and decreasing by 50% each week after.

    Smart Contract Audits

    YAM has not undergone any smart contract audits. You can view the Yam’s source code on Github or on the submitted contracts to Etherscan. YAM is compiled using truffle, and the engineers at truffle are also conducting their own tests on the code. The staking contracts have been adapted from Synthetix – similar to those deployed by YFI with some changes to Starttime() and other variables. The token contract is based on COMP and Ampleforth – meaning it’s a non-standard contract which could present problems if placed in liquidity pools.

    Is YAM a Scam?

    Notable members of the Crypto community have come out to call Yam a scam or ‘transparent pump and dump’. The of the reasons why it’s accused of this is because questions into the long term use case of $YAM. YAM is launched as a zero value token, meaning that there is no inherent value other than speculation. Long term use case of $YAM as a synthetic asset is also untested, as it’s not truly a stable coin. Both YAM and AMPL attempts to stabilize price by changing its supply – a feature that inconveniences users as their wallet balance would change over time. Whether or not YAM is a scam or not can only be proven over time.

    Farming Tools and Profitability

    Currently, the best tool for YAM farming is Yieldfarming.info developed by @weeb_mcgee. Currently the panels are hidden so you can only access it via this hidden URL https://yieldfarming.info/yam/yfi/.

    YAM Resources:

    DefiRate: https://defirate.com/yam-finance-farming
    Yam Github: https://github.com/yam-finance/yam-protocol
    Yam Yield farming info: https://yieldfarming.info/yam/yfi/
    Yam Twitter: https://twitter.com/YamFinance

  • What is Elrond Network (ERD)?

    What is Elrond Network (ERD)?

    Elrond is a high-performance blockchain that aims to provide extremely high network speeds of up to 10,000 transactions per second. The network supports smart contracts, thus allowing programmers us the WASM VM engine to develop both enterprise and commercial decentralized applications. Elrond promises ‘internet-scale blockchain‘ as its extremely fast and scalable nature means it can handle all the stresses of modern applications and allows the masses to access the digital economy. The platform native currency, $ERD, is used as a form of value transfer on the network and will also be required to interact with decentralized applications.

    On 30th July 2020, Elrond launched its mainnet.

    Built from scratch with a leaning on high performance, the Elrond Network promises a 1,000 fold improvement on costs, speed and most importantly throughput. The project itself compares what it is building with the transitioning from dialup to broadband and how massive this could be to the general blockchain sphere.  

    Components of the Elrond Network 

    Keen on breaking barriers and innovating, the Elrond Network architecture brings forth a genuine state Adaptive sharding scheme and merges that with a secure proof of stake consensus algorithm.

    The core components of the Elrond Network are as follows: 

    • Virtual Machine: creating a trustless network, eliminating intermediaries from where smart contracts are executed seamlessly and in a scalable manner.  
    • Adaptive State Sharding is in place to reduce energy or computational wastage while ensuring the network can practicably scale. To that end, the Scheme boosts communication between Elrond Network shards or partition of nodes. Note that each shard can only process a portion of the transaction. And as more users plugin, the network automatically scales as shards increase. At the same time, there is an improvement in storage and transaction processing capabilities because of sharing of resources. 
    • Proof of stake consensus algorithm is a channel through which there is a haphazard sampling of network validators. Sampling is from the previous signature of blocks and each signature, in turn, is from a network validator voting from a Byzantine Fault Tolerance consensus. 

    Key Features of the Elrond Network 

    From the above components, the Network is different from the rest. It is efficient with low latency while remaining secure and scalable. Specifically, Elrond has the following features: 

    • Because of Adaptive State Sharding, the network is inherently scalable. 
    • There is an incentive for participation through staking because of the secure Proof of Stake consensus algorithm. 
    • The interface is intuitive and easy to use as unnecessary hardware mechanisms are absent.
    • There is minimal wastage of computational as well as power translating to a low cost per transaction.

    Clearly, Elrond developers are going to great lengths to differentiate themselves from other networks. For example, compared to Ethereum which is still using the proof of work consensus algorithm for their processing but plans to shift, Elrond’s use of SPOS brings above cost saving and better efficiency.  

    Besides, for interoperability, their Virtual Machine is compatible with Ethereum’s. Meanwhile, same with Algorand, Elrond’s developers incorporate Random Selection but diverging from Algorand approach on scalability, Adaptive sharding by default gives them an edge. At the same time, the use of adaptive sharding taking into consideration state and transaction sharding overruns Ziliqa’s take. 

    Elrond Economic Model

    Elrond has an economic model that encourages adopters with competitive rewards during its current growth phase. The network allows ERD holders to earn passive income by either delegating their stake or serving as a validator for the network. The highest reward is from becoming an Elrond Validator Node, which will reward a 36% yearly return in the form of ERD. (https://bluffsrehab.com) In return, this requires the holder to actively participate in the network consensus via an always online machine that answers network requests. For a simple option, ERD holders can simply delegate their stake and receive a 29% return without doing any hard work.

    Elrond Partners

    Since blockchains cannot work in isolation, Elrond has formed partnerships with several platforms including: 

    • Samsung Blockchain – Elrond is added to the Samsung Wallet and listed as one of the dapps.
    • TypingDNA, a biometrics company, where the objective of this joint venture is to improve the security of the Elrond Network while guaranteeing the privacy of users. 
    • Smartbill, a SaaS provider for general management inventory. Through Elrond, users will have better transparency and traceability. 
    • Netopia, a payment processing company based in Romania. Processing more than $400 million worth of transactions in 2018 alone, Elrond will have exposure in Eastern Europe as ERD token is incorporated. 
    • Distributed System Research Laboratory which is part of the Technical University of Cluj. 

    Verdict 

    Elrond is demonstrating that building a high-performance architecture from where dApps can be launched and operate seamlessly even with an increase in activity is strenuous but potentially possible. By building from scratch and enhancing previous scalability solutions while fronting interoperability, Elrond attempts to be cost and energy efficient with high throughput. 

    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.

  • Andre Cronje, Founder of yEarn.Finance ($YFI) talks DeFi with FTX

    Andre Cronje, Founder of yEarn.Finance ($YFI) talks DeFi with FTX

    Andre Cronje, one of the “older trees” in the crypto industry, had a one-on-one interview with Tristan Yver on the FTX Podcast on 29th July 2020. Cronje is a self-proclaimed DeFi Architect, and Founder of yEarn.finance (YFI), a yield farming aggregator that is considered one of the hottest DeFi protocols today. The popularity of YFI has created many different forks of the project, include $YFII and $YFFI.

    You can listen to the podcast here:

    https://www.youtube.com/watch?v=Wk9HvhTZIuQ
    FTX Podcast interview with Andre Cronje

    Background

    Early Years

    Cronje began studying Computer Science after learning about the subject from someone he used to drive to school. After finishing the course, he started building his network and got a job at Vodacom, one of the largest telecom companies in South Africa before going into mobile development and distributed systems. He also acquired experience in loans and insurance, as well as other finance work.

    Entry Into Crypto

    He was so pumped when he discovered cryptocurrencies like Bitcoin and Ethereum because it was “Leveraging everything [he’s] done up until that [point].” He saw the whole concept of programable money as the “holy grail” of blockchain for a long time. And DeFi’s success solidified this stance.

    He started out doing code reviews for blockchains in order to teach himself and understand the technology better. After posting his reviews on medium for a while, one of his posts became viral. And that’s how his popularity started to take off. From there, he caught the attention of the CEO of Crypto Briefing, who decided to get him on board as a blockchain code reviewer for their website.

    He started running his own crypto portfolio management project. His first clients started out as friends and family. But it turned out that the broad cryptocurrency market was too incomprehensible for him. The market movements didn’t make a lot of sense. So he decided to lean towards stablecoins because they seemed to be a lot more predictable.

    Entry Into DeFi

    When DeFi’s popularity was steadily rising, he immediately saw the enormous financial value it could bring. He found stablecoins to have more upsides and fewer downsides. Therefore he started using stablecoins to earn from the top platforms like Compound, Synthetix, Balancer, etc.

    Cronje begins to work on automating DeFi yield farming

    What Cronje realized was that micromanaging multiple yield farming operations was exhaustive and tedious. There had to be a better way. So he started working on an automated system that automatically moves his funds around. What he discovered was that automated systems had rewarded him with higher aggregate yields than the rest. Although it still required him to interact with the protocol every day, at least the rest of the process was automated.

    He also realized that he could actually scale this automated system to the point that whenever someone interacts with the protocol, it will optimize the yield. And as more users use it, the more optimized it gets. It was a win-win situation for both the platform and other users.

    Creation of yEarn.Finance

    As the system grew, so did the overhead costs of running it. It came to the point that his earnings from yields were easily wiped out due to maintenance. So he decided to evolve the system and find a way to make the system autonomous so he doesn’t have to interact with it anymore. This became yEarn.finance, which has been doing pretty well so far. The average yield is at 10% over time with some months going as high as 40%. As a matter of fact, some weeks even yielded over 900%.

    yEarn v2

    Cronje also expressed concerns regarding newer users entering the DeFi space looking to earn money. The main problem he sees is that these protocols have a steep learning curve, to begin with. And yet new DeFi systems are coming out faster than you could learn. This is why he launched yEarn v2, the second iteration of the Yearn protocol. What version 2 does is it addresses the problems faced by these DeFi newcomers who don’t know what to do. It makes the user’s life a lot easier by simplifying the process into merely putting money in the system while it does the rest.

    yEarn v2 also introduces the $YFI (pronounced “Waifi”) token to enable a distributed community of users to make governance decisions on the platform. To summarize the protocol:

    • The base layer acts as a switcher between DeFi lenders to maximize the stablecoin’s APY (annual percentage yield).
    • On top of that, is the trading side which adds your stablecoins into Curve as a liquidity provider.
    • yEarn v2 takes care of the automated yield farming across the DeFi industry and maximizing your APR without you having to worry about the whole process.

    He points out that while nothing in DeFi is completely “safe”, he would put his own money on the platform. According to Cronje, the yEarn system has the best returns and if it ever fails, he assures that he would be the last to pull his money out.

    What Andre Cronje is building: the yEarn ecosystem

    He explained that his creation, yEarn.finance, is actually an automated emulation of what he used to do for his clients manually. It is basically the yield-side of yEarn and the bread and butter of the protocol. However, he also has other systems in place that do various things like yTrade, yLiquidate, ySwap, etc. (casadelninobilingual.com) Essentially, he is trying to build a whole suite of products.

    yTrade

    According to Cronje, yTrade is a simplistic tool that allows you to become a liquidity provider to a pool. On the other side, there are traders who can take out leveraged positions: 1000x capped shorts or longs on stablecoins.

    He also encourages people to use more yield-earning tokens like yDAI instead of base layer tokens like DAI. The reason for this is that there is no financial difference between the two. yDAI can always be used to redeem an equal or greater amount of DAI.

    The yTrade platform is already functional but Cronje hasn’t promoted it to the public yet since he feels that it is not yet ready to be shared with newer users.

    ySwap

    On the technological side, Cronje is very excited about ySwap. On the base layer, it is an AMM (automated market maker) that is “yield-aware”. It allows the swapping of debt tokens (tokens like DAI that are minted when you deposit collateral) between different pools.

    Here are the three benefits of using ySwap:

    1. Users get to have a stablecoin that is representative of the share of the entire ecosystem;
    2. Liquidity providers only need single-sided exposure when depositing to AMMs; and
    3. Users get to suffer less impermanent loss exposure.

    yLeverage

    yLeverage is basically DAI short position at up to 4x leverage. This is currently the project Cronje is focused on completing. He expects to release ySwap after yLeverage is completed.

    yLiquidate

    A liquidation engine which does flash loans from dYdX. When positions are liquidated 90% of the profit goes to the user and the remaining 10% is retained by the system. The main attraction of yLiquidate is that the user does not have to do anything other than to tell the system to liquidate the position. Also there is no capital requirement.

    yBorrow

    Few details are known about yBorrow, and Cronje has said he will be giving more details on this in due course. For now, we know it is a project in collaboration with Aave and concerns delegated credit and the ability to tokenise your credit/debit on the Aave platform and to do something with the same.

    What Andre Cronje WON’T be building

    Cronje makes it very clear there are 2 things he definitely WON’T be building: oracles, and his own lending platform. He considers it “insane” to build his own oracle, and as for lending platforms, he says he already enjoys using Compound and dYdX.

    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.

  • DeFi Money Market and DMM Governance ($DMG) guide

    DeFi Money Market and DMM Governance ($DMG) guide

    Decentralized finance (DeFi) has come a long way since it was first conceptualized. Now, the market has nearly $4 billion worth of assets locked up. And DeFi Money Market (DMM) is one of the most promising protocols that is gaining a lot of traction.

    The DMM platform allows users to earn annual yields of 6.25 percent for holding Ethereum-based tokens like USDC and DAI. What makes it even more interesting is that it is backed by real-world assets that create passive income that is greater than the interest owed.

    These real-world assets will be tokenized and launched on the Ethereum blockchain tracked by Chainlink’s decentralized oracle network.

    Background: Who is the team behind DMM?

    DeFi Money Market is a product of the DMM Foundation, which was established in the UAE. The members are a team of veteran experts hailing from academia, the legal and regulatory sector, and fintech.

    It is one of the few projects backed by top Silicon Valley venture capitalist Tim Draper.

    What is the DeFi Money Market (DMM) Ecosystem?

    The DeFi Money Market Ecosystem (DMME) is a decentralized protocol that allows users to earn interest on any Ethereum-based tokens by lending them for real-world assets like real estate, jewelry, automobiles, etc. as collateral. The goal of this ecosystem is to enable anyone in the world to earn consistent and stable interest on their money. Furthermore, their rates are higher than traditional competitors. They currently have an APY (Annual Percentage Yield) of 6.25% for DAI and USDC accounts, which is above most traditional alternatives.

    DMME aims to seize the trillion-dollar opportunity that is currently resting on centralized finance (CeFi) companies. And it does this by blending real-world assets with digital assets, which enables them to create a more robust and transparent system.

    DMM Protocol: What is it and how does it work?

    The DMM Protocol can be split into three parts: an array of Ethereum smart contracts, a treasury management system, and a data feed that allows off-chain data to stream into the smart contract.

    These three components blend to form the DMM Ecosystem and allow the creation of DMM tokens backed by off-chain real-world assets.

    The DMM protocol currently supports DAI and USDC. For this walkthrough, let’s use USDC. First, a user deposits USDC to the protocol. Then mUSDC is minted. The dollar amount will be used to provide loans collateralized with real-world assets.

    And once the loan gets paid, the interest will be deposited back to the system. Then, users can convert their mUSDC to USDC plus interest.

    DMG Governance ($DMG) token

    $DMG is the governance token of the platform. It allows the community to regulate and grow the DMM ecosystem, as well as its protocol. As the DMM community grows globally, DMG is paramount to encouraging active participation and mitigating centralization risk.

    DMG holders have the capability to govern the parameters of the protocol as well as decisions on asset allocation.

    The token is a fork of Compound Finance’s governance asset $COMP but with extra functionality such as “native burn.”

    DMG token distribution

    The DMM ecosystem has a total of 250,000,000 DMG tokens. The supply distribution is as follows:

    • 40% will be allocated to the DMM Foundation for future development, support, and other general functions
    • 30% will be sold in several public token offerings
    • 30% will be allocated as a reserve for paying developers, partners, as well as other protocols for integration and growth of DMM’s decentralized network

    At present, 60% of the total supply of DMG has been time-locked in smart contracts with different locking periods.

    DeFi Money Market Account

    A DeFi Money Market Account (DMMA) is a new DeFi native asset class that enables any holder of Ethereum-based tokens to earn interest from real-world assets represented on the blockchain.

    In other words, DMMAs are technically ERC-20 tokens that get created when we swap an Ethereum token into DMM tokens called mAssets.

    DMM DAO

    A DAO (decentralized autonomous organization) is an organization where the decisions regarding the rules of the system are written in code and voted on by its members.

    One of the core ideas of the DMME is that every stakeholder in the network should be able to take part in the decision-making process regularly without the need for permission. Initially, the DMM DAO members will consist of the core team and community members. To be part of the DAO, you have to be a holder of $DMG tokens, which gives you voting rights to the system.

    The DMM DAO is one of the few DAOs that is already generating revenue through its yield taken from real-world asset loans. The value of all assets amounts to roughly $8.7 million with active collateralization of 380%. Furthermore, the team anticipates that DMG tokens, not to mention the entire DMM protocol itself, to be totally distributed and decentralized a year from now.

    DMM DAO collateralization
    DMM DAO collateralization (Image credit: Warlmertt)

    Conclusion

    In order to succeed, DMM ultimately needs to fully decentralize the traditional financial system. Bridging real-world assets to the Ethereum blockchain is no easy task, but DMM is on its way to successfully execute its goal by using the right tools and partnering with the right organizations. The tokenization of physical assets will bolster DeFi and entire crypto space and possibly take a huge bite from the trillions of dollars worth of capital from legacy financial systems.

    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.

  • Ampleforth ($AMPL) review: The essential guide to this DeFi protocol

    Ampleforth ($AMPL) review: The essential guide to this DeFi protocol

    Ampleforth is a game changer that is claiming the spotlight on Decentralised Finance (DeFi) following the success of several lending platforms such as Compound ($COMP), Aave ($LEND), dYdX, etc. Ampleforth is a DeFi protocol that aims to reinvent money both within and beyond the cryptocurrency space. While centralized finance (CeFi) and DeFi as we know today have their own unique sets of problems, the Ampleforth protocol is here with the aim to address them.

    The protocol has a native token known as $AMPL. It is a stable currency that has both inflationary and deflationary capabilities designed to adapt to demand.

    Background

    Ampleforth was created by Evan Kuo, an engineering graduate of UC Berkley. He was also the former CEO of Pythagoras Pizza, the first pizzeria to tokenize its franchise.

    Evan Kuo
    Evan Kuo (Image credit: Cody Pickens)

    Kuo’s motivation for creating Ampleforth was twofold. The death of his father, which made him want to leave a legacy after his passing, and his passion for tech and finance which brought him into the cryptocurrency industry.

    He recognised two things that cryptocurrency was trying to reinvent: money and banking. Of the two, money was a lot easier to work with and so that became his focus.

    The Ampleforth Foundation was then funded by Pantera Capital, True Ventures, Huobi exchange and Brian Armstrong. Most of the members of the foundation consist of “engineers, academics, investors, and enthusiasts” from Ivy League universities.

    Ampleforth raised a total of nearly $10 million USD in 2 Initial Coin Offerings (ICO) and an Initial Exchange Offering (IEO).

    Ampleforth Protocol

    Ampleforth Protocol is a cryptocurrency ecosystem built on the Ethereum blockchain. What makes it stand out is its adaptive supply, that is to say, Ampleforth adjusts the circulating supply according to demand.

    When the demand for Ampleforth increases, the supply increases. Conversely, when demand decreases, the supply also decreases. This makes Ampleforth prone to being mistaken as a stablecoin since it does function quite similarly.

    However, it is not backed by any cryptocurrency or fiat currency like most stablecoins are. And although the system attempts to keep the value close to $1 USD, sometimes it could go way past $3 USD depending on the demand.

    As of press time, $AMPL is trading at $1.64 USD according to Coin Market Cap.

    The Ampleforth Protocol is autonomous, but not decentralized. The Foundation still holds the keys to the system, and have the power to freeze all assets or change token supply arbitrarily. So for some decentralization purists, this is a red flag.

    Ampleforth Monetary Policy

    Kuo came up with Ampleforth’s economic design after examining the history of the U.S. Dollar. Back in the day, every U.S. Dollar bill was backed by gold bullions, which were stored in government vaults. Gold is a great store of value but it has an inflexible supply. Furthermore, going by the gold standard alone runs the risk of runaway deflation.

    After World War II, the Dollar was in high demand globally and the U.S. couldn’t keep up. The amount of gold is fixed since mining can only introduce very small amounts of new gold in a given timeframe. Therefore, the U.S. government decided to abandon the gold standard to avoid stagnation of international trade.

    And that became the birth of the fiat U.S. Dollar, which we now know has its own set of shortcomings. One problem with fiat money is that you could only print more of them but not destroy them. Therefore, the supply can only be partially controlled in a sense. Furthermore, the people in charge of the minting facility is also subject to greed and corruption.

    Ampleforth’s monetary policy is a solution to both fiat and gold-backed currencies since it is designed to maintain a stable value by adjusting the supply to match demand.

    As an illustration, say you have 1 AMPL worth $1 in your wallet. If the demand for AMPL rises and causes the price to jump to $2, the Amplforth Protocol will expand the supply of AMPL such that you’ll end up with two AMPL in your wallet worth $2. This process is called a “rebase”.

    The rebasing process does not dilute existing token holders. You get to retain the same percentage of the total supply yet the value you held doubled.

    Ampleforth use cases

    Ampleforth divides its use cases based on its goals: near term, medium term and long term use cases. In the near term, AMPL aims to diversify cryptocurrency portfolios. Most cryptocurrencies are correlated to Bitcoin’s price pattern, which poses a risk. But because of AMPL’s rebase mechanism, it is decoupled from Bitcoin’s price pattern and allows cryptocurrency traders to have some diversity in their portfolio.

    In the medium term, Ampleforth aims to work as a stable store of value or form of collateral for decentralised banks and DeFi applications. This is because unlike fiat-backed stablecoins, it does not pose the risk of devaluation of its underlying asset.

    Ultimately, Ampleforth hopes to become a “A better Bitcoin”. It wants to be an alternative to central-bank money that can adapt to sudden shocks in the market. In that sense, it is competing with Bitcoin and XRP; not to mention national currencies. But as of the moment, it is being used primarily in the cryptocurrency space.

    Another opportunity it offers is arbitrage. Arbitrage traders have the chance to reap profits during the time the supply is reduced when the price rises. On the other hand, they can increase their AMPL allocation before the supply is increased when the price drops.

    How the Amplforth ($AMPL) rebase process works

    The supply of Ampleforth adjusts daily every 1pm EST to match the demand via a smart contract. The system utilizes Chainlink’s oracle network alongside the Ampleforth oracle to siphon price data from KuCoin and Bitfinex.

    The smart contract ensures that Ampleforth sticks within the designated equilibrium range, which is between $0.96-$1.06. If the price of AMPL hits beyond the two extremes, the smart contract will continue to “expand” or “contract” accordingly until the value of the token is in the equilibrium range again.

    Ampleforth Geyser: What is it?

    Ampleforth Geyser is a smart faucet that incentivizes liquidity providers to supply AMPL to a Uniswap pool. It is brought about through a collaboration between the Ampleforth Foundation and Uniswap.

    Users are rewarded with AMPL tokens for depositing AMPL to Uniswap. The longer the tokens are held in the pool, the higher the returns.

    Ampleforth geyser
    Ampleforth geyser

    To make money from Geyser, visit their web portal at ampleforth.org/geyser and connect either your MetaMask or Coinbase wallet. You will need to deposit equal amounts of ETH and AMPL to participate.

    How do I get AMPL tokens?

    Aside from getting AMPL tokens during the rebase process (though this requires you to stake some AMPL in the first place), people can also buy AMPL from cryptocurrency exchanges. Here are the major exchanges that offer AMPL tokens for sale: Uniswap (v2), KuCoin, FTX exchange and Bitfinex. Learn more about our picks for the top best cryptocurrency exchanges of 2020.

    Conclusion

    Ampleforth has to some degree successfully redesigned the way money works despite only being a few years old. Their influence has not penetrated a huge portion of the market as of yet but there is a lot of room for them to grow. And being part of the DeFi movement makes it a lot easier to gain more traction. As a matter of fact, over 36 million AMPL has been deposited in Geyser as of now. This is a great stepping stone for the protocol.

    Ultimately, Ampleforth’s goal is to compete against national currencies, and perhaps against Bitcoin as well, to become the world currency. For now, Ampleforth should work on establishing its trust and legitimacy within the cryptocurrency community, which will be a stepping stone for it to achieve its use-cases.

    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.