Boxmining v2

Author: Nathan

  • Press Release: Genesis Block appointed Boxmining as the Strategic Advisor

    Press Release: Genesis Block appointed Boxmining as the Strategic Advisor

    5 October 2020, Hong Kong – Genesis Block is excited to announce the appointment of our Strategic Advisor, Michael Gu of Boxmining. He is one of the leading experts in the cryptocurrency and blockchain space. His Boxmining website and YouTube channel provides the latest insights and resources on digital assets, decentralized finance and blockchain technology, as well as educational resources suitable for complete beginners to seasoned enthusiasts. The YouTube platform alone has grown into a leading resource with over 216,000 subscribers and 21 million views. In addition to that, the website, Boxmining.com, Twitter pages and discussion groups makes Boxmining the leading one-stop ecosystem for anyone interested in learning more about crypto and staying ahead with the latest trends.

    We will be collaborating with Boxmining to create content and exchange information on the crypto industry and digital assets. Our collaboration is one step further in building a bigger and better crypto community in Hong Kong. You can keep up with our updates by following our social media channels.  

    About Boxmining

    Boxmining was founded by Michael Gu and started on YouTube as a passion project, and has now grown to be a top informational resource in the realm of cryptocurrency and blockchain technology. The creation of Boxmining was to bring unbiased and accurate information to the community as Michael noticed such information is hard to come by. What also makes Boxmining so unique is that it is able to close the knowledge gap between China and the West, bringing you the full global image of the crypto space.

    The founder, Michael, has been involved in the digital asset and blockchain space since 2012, and he started his journey with Bitcoin mining in grad school. Over the years, Michael garnered tremendous experience and through his hard work and dedication to the industry. He has developed a solid reputation as an analyst in this space and has been featured in various international media, such as Forbes, Cointelegraph, TechBullion, Disrupt Magazine and on China’s Phoenix TV. But his ambition was by no means satisfied, he wanted to share his crypto journey and insights, hoping to bring more attention to this space. Hence he created a YouTube channel called, Boxmining. 

    Boxmining YouTube posts videos covering topics on the latest cryptocurrency trends, interesting projects, collaborations with other crypto leaders, and educational guides. It goes live every Monday and Friday at 3:00 am (UTC), with other content during the week as well. 

    Boxmining.com is a complement to the Boxmining YouTube channel. It gives Michael the platform to cover wider topics with more detail. It is suitable for crypto enthusiasts to consume more in-depth insights and reviews on cryptocurrency, trends, products etc. and even those who are newer looking for guidance on how to get started. The website relies on Michael and his team of talented contributors to provide the latest breaking news and insights. 

    Besides the Boxmining website, YouTube channel, you can also follow them on their Facebook, Twitter and Instagram to keep up with the latest updates. Michael also firmly believes in the power of community building, and his Telegram and Discord channels are a global place where he and other cryptocurrency enthusiasts can share and grow their knowledge together. 

    About Genesis Block

    Genesis Block is a premier OTC trading center for digital assets. Our head office’s location is in Hong Kong, the financial hub of Asia. The company is backed up by a team of financial professionals and industry leaders with notable experience. The company provides services to clients globally and continues to grow rapidly around the globe, with the vision to make digital assets more accessible to all. Genesis Block also operates the largest digital asset ATM machines in Asia through the company’s subsidiary, CoinHere. With over 40 commercial-scale crypto farms in the Asia-Pacific region, the company is a pioneer in the crypto space and hopes to one day bring mainstream adoption to cryptocurrencies. 

    We believe transparency and honesty are pivotal to sustaining our clients’ successes. So we will always be upfront and truthful regarding the information we provide and our service fees to you. Above all else we are trusted because of our emphasis on safety and the privacy we provide our clients and their data.  

    Building a strong crypto community is one of our focuses. Here at Genesis Block, we believe people can make great success in the crypto space if they are surrounded by like-minded people and immense resources. We built our communities to share the most up-to-date information on various social media platforms including Facebook, YouTube, Instagram, Twitter, LinkedIn, Telegram, and WeChat. 

    As the crypto industry is very young and unknown by the public in Hong Kong, we are endeavoring to help the public to understand more about cryptocurrency, and therefore we created the Crypto Classroom. It is a digital learning hub that provides mostly beginner level content that covers bitcoin and blockchain foundations and more. Crypto Classroom contents can be found on the Genesis Block website, Facebook page, and both of our YouTube channels which are catered for our Cantonese and English audience. We also create a Trader Insight series every week on our Cantonese YouTube channel for our advanced crypto enthusiasts.

    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.

  • Bitcoin “Bull Run” incoming? Bull and Bear factors

    Bitcoin “Bull Run” incoming? Bull and Bear factors

    Prices of Bitcoin (BTC) reached an all-time high of over USD$19k in December 2017 and there is a lot of discussion and speculation on what triggers the price and when this “bull run” will happen again. So we took a look at the Bull or Bear factors which may point to an imminent bull run in 2020?

    “Bull run” incoming? (8:00 onwards)

    Bitcoin bull market factors/reasons?

    PayPal Announcement

    The PayPal announcement of supporting crypto transactions for their customers has come as a huge boost of positivity to the crypto space, especially in the West. With a humongous user and merchant base, the crypto community hopes for better adoption through the payment platform.

    But is the Paypal announcement really a good thing? Check out Cryptonauts’ take in their video “Crypto Comes to Paypal! Good or Bad?” to find out more:

    Crypto Comes to Paypal! Good or Bad?

    Institutional investors coming into crypto?

    Major investments from publicly traded companies like MicroStrategy and Square Inc has also led the Bitcoin price to fly high. However, the institutional investors might have aggregated the bull rally, but it is not the main reason. From our research and actually speaking to people in the frontlines, such as over the counter trading desks like Genesis Block, there are more institutional investors registered for crypto accounts. However, they are still waiting for the right opportunities to buy in.

    US election uncertainty

    Many see the US Presidential Elections as very polarising, particularly due to the vastly differing stances of the 2 candidates. So right now the whole world is waiting to see the outcome and how it will affect the markets generally. We also found that whether people think Trump or Biden winning is actually good for the markets (and their rationale for this) differs depending on which region they are from.

    To really get a feel of the sentiment towards the US elections, we sometimes look at FTX Exchange’s US 2020 Elections contracts because the non-US investors in these contracts are really “putting their money where their mouth is”.

    Though there is also some viewpoints being put forward that whether Trump or Biden wins is still going to be good for crypto.

    Covid-19 pandemic

    As discussed by many, the pandemic created a huge gap in the country’s economy, but Bitcoin and the crypto world remained less affected. Many investors were attracted to Bitcoin as they felt it as an asset which they can rely upon. And with people are stuck at home all day, some may look into trading to pass the time.

    Bitcoin bear market factors/reasons?

    On the other side, there may be reasons or red flags that will make people bearish: –

    China is bearish?

    There seems to be some negativity around Bitcoin in China with news that some bank accounts relating to cryptocurrencies were being shut down. The recent detention of OKEx’s Star Xu by authorities and suspension of withdrawals is also worrying to many in Asia.

    The People’s Daily have also published an article on 3rd November 2020 authored by Shan Zhiguang, Chairman of the Blockchain Service Network (BSN) which has further worried Chinese cryptocurrency enthusiasts (see the translation posted by Matthew Graham). The article states that a person may be charged with money laundering if: (1) someone buys cryptocurrencies using RMB and sells the cryptocurrencies for any foreign currency; or (2) uses any foreign currency to purchase cryptocurrencies outside of China, and subsequently sells the cryptocurrencies for RMB. This is irrespective of how many intermediate transactions were involved. A Chinese citizen may also be charged with money laundering if they knowingly sell the cryptocurrencies they hold to someone so as to assist them to illegally move funds in or out of China.

    Yet the article states that any Chinese citizen that sells any cryptocurrency in exchange for any fiat currency must declare personal income tax to the authorities if the transaction results in a profit. Anyone who fails to do this could be charged with tax evasion.

    Bear reasons already factored into prices?

    Rumors or discussions leaning towards a bear market have already been circulating for a while in the crypto discussion groups. For example, reasons some people may feel bearish over the Paypal or DCEP news have already been discussed repeatedly in this space. Considering there is no new news on this right now, any negativity would have already been factored into the current price of Bitcoin or cryptocurrencies.

    No new blood (at least not like in 2017 anyway)

    Back in 2017 there were a lot of newcomers, we observed this when we see just how many people were eagerly asking relatively beginner questions. We do not really see this yet and so it seems that the cryptocurrencies adoption rate in 2020 is much slower vs 2017.

    Don’t get us wrong, there are newcomers. We already saw lots of people buying Bitcoin using the ATMs inside Genesis Block (because they take more money). But there are no crazy lines of people with suitcases outside Genesis Block waiting for them to open like in 2017. This insanity was mostly caused by the “Kimchi premium”, where prices of Bitcoin in Korea were much higher than in Hong Kong. So what we saw were Koreans flying into Hong Kong with large amounts of cash in the morning, buying Bitcoin at Genesis Block, and catching a flight back to Korea in the evening.

    Another surprising indicator are sales for Ledger cryptocurrency hardware wallets using our affiliate code. We definitely noticed a significant uptick in sales recently, but definitely not as much as in 2017.

    Decentralised Finance (DeFi) and Yield Farming bubble

    A couple of months before, the crypto space became familiar with the term DeFi where many Bitcoiners turned into Yield Farmers. The promotions of DeFi and Yield Farming projects have definitely escalated as of late, to the point where some promotions and people urging others to go “all in” can be quite aggressive. This is a concerning sign because it makes you wonder if they are desperately trying to get you to buy so they can sell.

    Scam projects/ rug pulls

    The immense rally of the DeFi space led to the initiation of many scam projects or “rug pulls”. Some of them just crashed hours after launch with developers or hackers running away with people’s funds. Cointelegraph had also recently interviewed me for an article on this topic of Escalating DeFi scams tarnishing the crypto yield farming market niche.

    Confusion within Asia?

    Regulatory clarity is important in any region. China has been pushing the message that Bitcoin and Ethereum are two of the best assets on national television. Yet as we have seen earlier in this article, cracking down and closing cryptocurrency associated accounts, taking in the founder of OKEx for investigation and the recent article from the People’s Daily on how dealing with cryptocurrencies may constitute a crime may cause confusion amongst the public. Ultimately this confusion may also adversely affect the crypto space.

    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.

  • CUDOS: monetizing excess computing resources?

    CUDOS: monetizing excess computing resources?

    CUDOS aims to let users sell their excess computing resources through a collaborative consumption network platform.

    In the over 11 years since the launch of the first blockchain, Bitcoin, we have seen a need to connect decentralized networks with real-world data to spur the networks’ usage. The first solution is to introduce layer 2 chains to process transactions before committing them on the underlying immutable protocols.

    However, in the rapidly changing blockchain and physical world, we need a platform that is Turing complete, unlike Bitcoin. One that can handle virtually anything we throw at it without hitting a memory or processing power bottleneck. This is what CUDOS aims to do.

    Background

    In 2017 Matt Hawkings founded the CUDOS protocol. In the past, Hawkings worked in different technology companies in various capacities, such as being the chief technical officer of CORETX and the managing director of C4L.

    Other team members include Andrew Sturmey (CTO), Pete Willis (Development Manager), Joan Garcia I Tormo (Data Scientist), and Richard Poole (Lead Developer/ Architect). The development team works under Cudo Ventures.

    Notably, the project’s advisors come from reputable firms such as AMD, Sony Entertainment, and ESET UK.

    What is CUDOS?

    The CUDOS network is a decentralized layer two chain bringing cloud computing functionalities to decentralized platforms.

    CUDOS uses a group of smart contracts that sit at the center of the computing functionalities. Also, the smart contract acts as oracles to interface off-chain data with blockchains and vice versa.

    Since blockchains use different programming languages, CUDOS’ Turing completeness enables data processing for a wide range of distributed protocols regardless of their underlying programming language. This means that you can process data for Python and Go-programmed networks with ease.

    How CUDOS Works

    To incorporate Turing-completeness and merge blockchain and cloud computing, CUDOS uses validator nodes known as CVNs (CUDOS Validator Nodes).

    Smart contracts allow blockchain developers to interact with CVNs by specifying the number of validator nodes to process their desired data.

    The benefit of this approach is that it enables developers to choose the ideal configuration depending on the task at hand.

    Where a task spreads across multiple nodes, the nodes share individual results with each other for consensus. Note that agreement can either be conducted outside or inside the blockchain. Off-chain consensus minimizes the transaction costs.

    Notably, to be eco-friendly, the project taps into the idle computing power of data centers and other computing devices that would wish to contribute their power to earn incentives.

    How CUDOS works
    How CUDOS works

    On the surface, a developer interacts with Ethereum smart contracts, which in turn pings to the CUDOS oracle contract. From here, it connects to validator nodes, either on-chain or off-chain. Validator nodes then interface with CUDO data centers that operate on top of the CUDOS platform.

    CUDOS Use Cases

    Being Turing complete means the platform can process almost anything. Consequently, this expands CUDOS’ use cases. At its basic structure, the network can be used as a layer two oracle to deliver data to and from smart contracts.

    Furthermore, its computing capabilities make it a perfect fit for decentralized finance (DeFi) applications, scientific research, data analytics, artificial intelligence, and video rendering.

    Advantages of Using CUDOS

    CUDOS has numerous benefits due to its unique approach of connecting off-chain and on-chain systems. Key among them include;

    • Efficiency enhancement – The protocol improves efficiency for developers to optimize workflows and improve the accuracy of results.
    • Cost Reduction – It is estimated that CUDOS’ users save more than 75% compared to when using traditional cloud computing services.
    • Flexible management – With CUDOS, you decide how much computing power you need; there are no limits. In addition, it allows users to compute how much processing power they need before running a task.

    CUDOS’ Token (CUDOS) and Governance

    Interestingly, the network and its native token share the same name, CUDOS.

    CUDOS token use cases

    The CUDOS token has 3 main use cases.

    • Gaming: The Cudo platform allows gamers to rent out their spare computational capacity for tasks such as video rendering, AI computing and scientific research. CUDOS tokens are given as a reward for their efforts. These can then be used to access others’ excess computing resources so they can play games that push their hardware past its limits.
    • Charity: Users can donate their computer’s idle resources to charity. Currently, cryptocurrency miners can use Cudo to contribute the tokens they have mined into their selected charity’s preferred payout currency and deliver this to the charity.
    • Staking: The CUDOS token can be staked to participate in securing the network.

    Note that stakers’ rewards emanate from revenues generated on the protocol. Staking takes two forms. You can stake the base asset to become a validator node, or you can delegate your coins to a staking node to earn staking rewards.

    You may have noticed the token doesn’t directly have governance capabilities. This is because CVNs handle the governance aspect. CVNs’ integrity during the decision-making process is determined through a trust score. The score takes into consideration its stake and past behaviors.

    How do you become a CUDOS Validator Node?

    To become a CUDOS Validator Node, a node has to stake 2 million CUDOS tokens (with a minimum 3-month lockup). Fortunately, a validator node receives a percentage of the transaction fees charged on tasks. Also, they receive staking rewards. On the other hand, developers benefit from enhanced security provided by CVNs’ hardware encryption.

    CUDOs’ layer 2 network will run up to a maximum of 100 validators, so slots are limited!

    Staking on the CUDOS Protocol

    CUDOS supports delegated staking. With this scheme, CUDOS token holders stake their tokens with validators who then interact with the protocol. Validators’ stake amount determines the kind of jobs a CVN will receive. For example, the bigger the stake, the larger the jobs, the higher the rewards.

    the CUDOS token also acts as a governance token and the stake size is a measure of a validator’s voice in governance matters. If a validator misbehaves, the network confiscates its stake. For instance, if they fake the outcome of a task to save on computational power.

    Note that individual validators can decide whether or not to involve delegators when making decisions.

    If you wish to un-stake your CUDOS tokens, be aware that the un-bonding period takes a total of 21 days.

    Staking rewards on the CUDOS network

    CUDOS will pay out staking rewards over a 10 year period. The first and second year reward levels are fixed, and from year 3 onwards the reward levels will be decided by community vote using the governance mechanism.

    CUDOS is also giving a ‘lockup rewards multiplier’ when you have staked your tokens for a set period. Currently, they plan to give a 50% bonus after staking for 6 months and a 100% bonus for a 12 month locked stake.

    Conclusion

    The CUDOS protocol brings a new dimension to the possibilities of blockchain technology. By being Turing complete, the protocol can handle many tasks from different blockchains regardless of their programming language. Another noble approach is the use of data centers and allowing everyone from desktop PC users to mobile device users to lease their idle computing power.

    Its base asset gives holders incentives to either delegate their coins or actively handle tasks on the network. With the current rise in DeFi and blockchain adoption, CUDOS opens the door wider to the world of unlimited possibilities.

    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.

  • ChainGuardians ($CGG): play games to earn cryptocurrency?

    ChainGuardians ($CGG): play games to earn cryptocurrency?

    ChainGuardians is powered by the technology that allows digital asset tokenization, creating an ecosystem where blockchain meets play. Here, users can have fun on the platform while earning rewards in the form of cryptocurrency. They can also participate in popular blockchain activities such as mining or staking without much complexity.

    Check out our interview with Co-founders Emma Liu and Idon Liu (from 23:00 onwards)

    Background

    The team behind ChainGuardians built the platform to create an enjoyable and worthwhile blockchain gaming experience for its players. According to the team, the majority of the gaming content is still currently only accessible on web browsers but they are planning to create an independent gaming platform for it.

    What is ChainGuardians?

    ChainGuardians is a cryptocurrency-meets-anime-themed blockchain collectible game powered by non-fungible tokens (NFT). The game is available both on mobile and web platforms, making it very accessible to its users. It is also built on top of Ethereum while its in-game assets are based on the ERC-721 standard.

    The goal of ChainGuardians is to introduce a gaming element in the blockchain ecosystem, implementing chain analysis technology and advanced game economics to govern the platform’s mechanics.

    All in-game assets are considered crypto-collectible NFTs. These are, for example, weapons, armors, and even the in-game characters i.e. Guardians. The purpose of having them tokenized is to make sure that they are unique and safe against counterfeiting.

    All the collectibles, as well, are of limited quantity. They can also be either bought or sold on secondary NFT marketplaces.

    While there are a lot of blockchain-based games today, according to the team behind ChainGuardians, their difference is that their governance is more community-based. There are other steps that the team said they were doing differently against others, which are:

    • The constant development of end-game content and platform playability;
    • Introduction of multiple game modes, including player-versus-player modes;
    • Rebalancing of Guardians, lower ranking characters, items, and game economy, as they are needed;
    • The constant development of the battle meta;
    • Introduction of ‘Bring Your Own NFT,’ where users can integrate their own NFTs on the platform;
    • Loyalty reward system;
    • Bot prevention system; and
    • Commencement of events and competitions to encourage player activity.

    The platform offers a free-to-play NFT mining game and a role-playing game (RPG). Players can earn rewards for participating in either of the two.

    For the game’s newcomers who just want to try out the game modes first, the platform offers a guardian simulation mode. For this mode, users will not need to own any crypto-collectible, or NFTs. This means, however, that their progress will not be factored in the actual game economy. They will also not be entitled to rewards in the simulation mode as well.

    Crypto Boost is another feature made available on the platform. This gives existing cryptocurrency holders additional incentives in playing the game. To ensure that the accounts are in good crypto standing, their transaction history and holdings will be evaluated through Chain Analysis.

    NFT Mining Game

    Players can choose to participate in the game’s ecosystem by staking NFTs partnered by ChainGuardians. The process here is really simple. Users can either purchase their own NFT for staking or select from its supported projects called the “CryptoVerse Alliance.”

    After a player has chosen an NFT to mine, they can start mining. Rewards for mining NFTs are ChainGuardians Credits (CGC). These can be used to make in-game purchases on ChainGuardians RPG or for conversion to the ChainGuardians Governance (CGG) token (more on this later). Furthermore, this is free-to-play.

    ChainGuardians RPG

    Playing the RPG is another option for users to earn rewards from the platform. Basic game achievements, such as the increase in your character’s level or winning against other in-game enemies, can give the player CGC rewards.

    The goal of the players here is to work together to take down in-game enemies such as GateKeepers. This will help their characters gain power, credits, armaments, and other tools that they’ll need to progress in the game.

    The game is also a turn-based battle game, but when a player is not active, the platform allows AI-based battles that factor in the attribute of a player’s character.

    CGC rewards can be redeemed for CGG tokens or other available services on the platform.

    There is a daily schedule for the redemption of CGG and it factors in the activity of the player on the platform. The RPG is also free-to-play. 

    CGG Token

    CGG is ChainGuardians’ Governance token. It is an ERC-20 token that represents a user’s stake in the platform. CGG holders can take part in important protocol decisions as well as earn rewards for continuously participating in the ecosystem.

    There are many ways to earn an income from using CGG. Here are some ways:

    Liquidity Provider Token

    The platform has a liquidity pool backed by the POWER token. This is the ecosystem’s liquidity provider token. Users who stake CGG in the platform’s liquidity pool are entitled to POWER rewards which they can redeem later on. The pool supports the CGG and ETH trading pair of the platform.

    In addition, users can choose to just provide CGG pairs on the platform’s liquidity pool. They can also earn POWER in doing so.

    NFT Staking

    CGG holders can stake their tokens on the platform’s supported NFTs. This way, they can potentially earn more NFTs and partner tokens as their reward.

    Governance

    The platform’s governance is community-based, which means that CGG holders are the ones voting on the ecosystem’s mechanics and protocols. Some of these decisions cover the following:

    • Future in-game characters and their abilities;
    • Game economics and balancing schemes;
    • APY for stakers and the supported NFTs; and,
    • Hash rates for NFT miners.

    Conclusion

    The game is indeed an interesting use case for blockchain technology. Apart from the introduction of NFTs, it also features a liquidity mining and staking option that many cryptocurrency holders find easy to work with. 

    The project has done good work in integrating advanced blockchain concepts into a more gamified experience for users.

    With the successful application of most blockchain technologies such as governance tokens, NFTs, mining, perhaps the next step for ChainGuardians is to make a scalable platform should more players join. All in all, the project is a promising display of the blockchain’s capacity while easing them towards the basic concepts that back most projects in DeFi.

    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.

  • Tidal Finance ($TIDAL): customized insurance for cryptocurrencies?

    Tidal Finance ($TIDAL): customized insurance for cryptocurrencies?

    Tidal finance has developed a protocol to protect capital invested in Liquidity Pools (LP) from data breaches and hacks through insurance pools.

    The DeFi space grew exponentially in 2020— unperturbed by the general uneasiness surrounding the pandemic. By the end of the year, the total value locked (TVL) in LPs have grown from $500 million to $27 billion. 

    Attracted by the prospects of blockchain technology and its huge potential returns, LP providers had deposited billions in dollars worth of crypto assets to the advancement of the DeFi subsector.  But with increased hacks and security breaches, LPs are becoming significantly more skeptical about their investments. This is where Tidal Finance comes in with a solution.

    Background

    Chad Liu, the founder of Tidal Finance, is an engineer and mathematician who had noticed that the Defi industry was stagnated by insufficient risk tolerance.

    And in 2020, Liu was introduced to Co-founder Dan Raykhman (now CTO), with whom he shared the same vision. Liu had a background in finance and business. And together, they ventured to capitalize on their expertise to build a decentralized insurance market — now Tidal Finance.

    What is Tidal Finance?

    Tidal finance is an open market that allows users to create programmable insurance pools for different asset configurations. 

    Essentially, Tidal Finance is a market that encourages the creation of liquidity pools while also providing the resources necessary to protect the LP provider’s capital.

    Tidal gets LP providers to create reserve capital for different pools. This way, many mutual cover pools are created. Whenever a user wishes for additional protection for (insure) his capital, he can purchase any of the available mutual coverage.

    Tidal finance is built on the Polkadot network where it functions similarly to Balancer, but with improved security against loss capital, to improve liquidity for various emerging crypto assets.

    Insurance Pool

    Tidal Finance provides a framework that allows users to create customizable insurance pools. Each pool, regardless of asset-pair, can be covered by different terms (premium, cover period, etc.) LPs are then at the luxury of choosing which pool best satisfies their needs. There are currently 3 asset pairs that are covered: COMP.DAI, Aave.ETH, and Uni. (ETH, WBTC).ETH.

    How Tidal Finance Works

    The platform is an open market. That is, it only provides the tools needed to create an insurance pool. Therefore, users can configure pools using these tools to create an abundant insurance market that offers different conditions and terms (for different pools of protocols, tokens, and other assets) to LPs looking to stake their digital assets. 

    At the heart of every insurance pool is a Reserve Smart Contract. Here, reserve funds are provided by LPs. This helps to increase the reserve capital efficiency, protocol auditing, and improve risk management.

    To ensure that the insurance pool created is sustainable, a vetting process is carried out while the insolvency risk is examined. And if the pool is assessed to hold out, it is allowed into the market where LPs and Insurance buyers can interact freely.

    Basic Single Asset vs. Multi-Asset Pools

    Basic single asset pools involve coverage for single asset types. While the risks involved are straightforward and pretty easy to calculate, the rewards are comparatively smaller.

    On the other hand, multi-asset pools combine different assets and smart contracts to make a fairly complex insurance pool. It allows sufficient leverage as well as risk for high reward potentials.

    Features of Tidal Finance

    Tidal Finance is an aggregate of highly functional features that allows the creation of an insurance pool. 

    Pool Creation Template

    Insurance pool templates are created by choosing from the available list, smart contracts, and assets to be covered. Then, other parameters can be customized, including the coverage duration and leverage ratio.

    Auditors can now look at the template to assess the insolvency risk during the vetting process. 

    Approved pool templates are made available on the Tidal market for LPs to use. Furthermore, LPs can find pool templates that meet their specific token/protocol needs. 

    Pool Statistics and Ranking 

    The Tidal market provides a statistical display of the performance of available pool templates. The statistical data are collected from previously created pool templates.

    Each pool template is indexed into a ranking list. The ranking provides the weighted average of key metrics, including current & max pool capital, current and max return on capital, current and max covered amount, capital reserve ratio, etc. 

    Users can also search through available pools using the ranking order. 

    Controlling Algorithm

    Tidal uses algorithms to regulate the activities of pool creators to mitigate risk exposure. The combined effects of several algorithms guide pool creators to manage risk effectively. At launch, tidal would provide a list of rules to guide the activities of each insurance pool. These rules were constructed to mitigate risk and ensure the success of insurance pools. 

    Controlled algorithms that would be initiated at launch would enforce these guidelines.

    Earn returns with Tidal Finance liquidity pools

    Tidal Finance also lets you provide liquidity into their 3 liquidity pools to earn returns. The lockup period ranges from 30-90 days and the apparent return ranges from 20% to 300%.

    Tidal Token ($TIDAL)

    Tidal Finance’s token $TIDAL is the native token to the Tidal platform. The token is vital to the platform’s smooth operation as it allows holders to vote on important decisions regarding the project and rewards all the various participants.

    When the Tidal protocol generates revenue, holders of the $TIDAL token are entitled to a percentage of it based on their staked amount and purchased amount of covers. This scheme is intended to incentivize users to participate actively in the Tidal community. Other than the small percentage reserved for this purpose, the rest of the revenue is deposited in the treasury wallet, which is an emergency backup fund for insurance pools running out of reserves. 

    The distributed percentage is adjusted frequently to prevent inflation.

    Governance

    The tidal protocol is managed by a Decentralized Autonomous Organization (DAO). It is made up of stakeholders that are LPs, Pool creators, and other users. But any other holder of the token qualifies as a member of the Tidal DAO.

    Members of the DAO are able to propose changes and vote on them in a transparent approach. However, issues with higher stakes are left to the deliberation of long-term holders alone. 

    Partnership with Reef Finance

    Tidal has partnered with another member of the Polkadot ecosystem, Reef Finance. The aim of this partnership is to promote decentralised smart contract insurance solutions to increase security for platform users. In particular, Tidal Finance will be empowering Reef Finance users by allowing them to create customized insurance pools.

    Conclusion

    Individuals and other entities are likely to be motivated to participate in liquidity pools when their capitals are safeguarded. This would provide the much-needed liquidity for upcoming blockchain projects and accelerate the growth of the cryptocurrency industry.

    Designed to launch on Polkadot’s network, one of the highest growing crypto ecosystems in 2020, Tidal Finance holds high expectations among investors and liquidity miners. Could Tidal truly bring forth the long-overdue coverage needed in the DeFi space? Online time will tell. LPs, for one, would definitely be rooting for it.

    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.

  • Paralink Network ($PARA): expanding the potential of DeFi apps with data

    Paralink Network ($PARA): expanding the potential of DeFi apps with data

    Paralink Network is a platform built on Polkadot sourcing crucial real-world data for decentralised finance (DeFi) applications.

    Blockchain technology has huge potential, but blockchain applications are limited by what real-world data they can access. Without this crucial real-world data, blockchain cannot be used in areas like prediction markets, insurance, litigation, or other coordination problems that rely on social institutions and corporations. This is commonly known as the oracle problem.

    While several solutions, like Chainlink’s decentralized oracles, are already being used, Paralink has made its own headway through the development of a cheap and efficient solution.

    Background

    Jan Knezevic, Founder and CEO of Paralink, is a Slovenian auditor who had previously worked in financial units, such as KPMG, one of the Big Four accounting organizations, in 2018.

    During his time there, he developed an appreciation of blockchain technology. Like many other cryptocurrency enthusiasts, he was able to recognize the restrictions of blockchain applications when exchanging real-world information.

    He saw that for such applications to be useful for complex industries like the stock market, they had to have verified information flow from the real world. Realizing that the gambling industry also needed reliable data flow, especially for platforms like casino utan svensk licens, he set out to bring a scalable cost-effective solution to the problem. This led to the development of the project now known as Paralink.

    Paralink is an oracle platform that provides real-world data ingress across multi-chain networks. The platform makes it possible for applications built on blockchain networks like Ethereum and Polkadot to interact with traditional web interfaces.

    It is developed to help distributed systems communicate effectively with each other as well as the outside world. With Polkadot providing the supporting architecture and framework for its integration, Paralink functions as a substrate.

    In addition to collecting and organizing real-world data for Blockchain application, the platform also confirms their validity. The data could be anything from sports, weather, elections to financial data, stock, foreign exchange, etc.

    It can carry out all these functions through an open-source software called the ‘Paralink node’. The platform is currently designed with a focus on financial applications like the stock market and insurance.

    The Paralink node is the center of the platform. As stated, the node is open-source software. It is built to access and collect real-world data that channels back to smart contracts via callbacks.

    Paralink Network
    Paralink Network (Image Credit: Medium)

    The node can be run independently as a centralized medium for real-world data into blockchain applications. That way, the solution is much cheaper. However, it is more practical for a node to be operated by self-organizing quorums to provide a strong, sustainable data ingress service.

    The node is compatible with different data protocols including JSON, HTML, XML, SQL and Grpc. The creators are working to improve its interaction on different APIs actively.

    Developers can then query data from sources outside of the Blockchain using Paralink Query Language (PQL).

    Currently, the Paralink node is built to support just the Ethereum and Polkadot blockchain network. However, the long term goal is to build a flexible node compatible with any public chain, thanks to the node’s architecture and open-source model.

    To achieve the goal described in its whitepaper, Paralink has to be effectively flexible enough to be compatible with a wide range of Blockchain applications and protocols. To this end, the platform is offered in three different security models, each with varying characteristics concerning cost, convenience, and security.

    Simple Ingress

    This is the most cost-effective model available. Here, Paralink nodes are available for use on multi-chain networks via any third-party data source. The model is simple to implement through PQL definition. It is also fast and can certify the authenticity of multiple data sources.

    It has a major drawback, however, in that it requires trust in a centralized node operator. Furthermore, it is also ineffective for complex financial applications.

    Trusted Ingress

    This model is an upgrade to the first-described simple ingress, which utilizes encrypting PQL results with cryptography. The results are accompanied by private decryption keys from reputable data providers.

    As a step-up from the rudimentary model, it is highly functional for financial applications. Other types of applications like prediction markets and gambling platforms can be also covered.

    Trusted ingress is also cheap and effortless to implement. Moreover, callback support is also available to all chains without the need for a bridge. However, it is susceptible to being breached due to a single point of failure.

    On-chain Security

    On-chain security is the last security model available, which does not depend on a single source for verification. Hence, it is almost impossible to break. This is especially useful for money markets, derivatives, and other financial applications that involve high-stakes.

    On the other hand, the model needs linking networks (bridges) like Ethereum and Polkadot, hence, requires more chain coordination to pull off.

    Para Token ($PARA)

    PARA is the native governance token of the Paralink platform. Users are incentivized to hold PARA tokens in order to enjoy governance rights and earn APY based on the amount they hold (which in turn must be staked).

    PARA tokenomics

    There is a maximum supply of 10 billion PARA tokens. The allocation and distribution of PARA tokens are as follows:

    PARA token distribution
    PARA token distribution (Image credit: Medium)

    The distribution system is quite similar to other crypto protocols. 13.5% of the total would be shared among the developing team after a vesting period of two years. About 18% would be kept as reserve to as a buffer. 20% would be disbursed as nominator rewards, another 20% for Validator rewards.

    10% would be deployed for the ecosystem. This will serve as incentives for early Paralink adopters and relayers.

    In an update on 1 February 2021, Paralink have confirmed that they will not be holding a public sale of the PARA token. Their reason for this is due to the inherent unfairness of the auction process, and difficulties in completing the KYC process for purchasers.

    However, Paralink still wants its eventual token holders (who can purchase the token when it is listed on exchanges) to have more incentives. So the tokens that were initially reserved for the public sale will now go into the lockup rewards pool.

    Conclusion

    Without a doubt, the cryptocurrency industry’s future depends on how well its application can integrate with the real world. To elaborate, financial applications need to be able to exchange real-time information with real-world entities to ensure an accurate, reliable evaluation of assets for buyers and sellers — which is the basis for Paralink nodes’ development.

    Blockchain networks would require secure and cost-effective solutions like this for seamless communication among the various chains, as well as the outside world before it can unleash its latent potentials.

    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.

  • Glitch ($GLCH): world’s first “for-purpose” DeFi protocol?

    Glitch ($GLCH): world’s first “for-purpose” DeFi protocol?

    Glitch is a platform that seeks to complement the Ethereum network by providing a protocol specifically for DeFi applications.

    Ethereum brought the possibilities of blockchain technology to life by birthing many crypto-based protocols that leverage its smart contract feature to build incredible financial applications. The sporadic development of these applications, however, has weighed down the Ethereum network, causing congestion and inefficiencies.

    While many are placing their hope on the full-deployment of Ethereum 2.0, other innovators don’t have that patience, and therefore, are creating their own solutions, such as Glitch.


    Background

    Sean Ryan, the founder of Glitch, is a business development expert who had contributed to the creation and acquisition of several SAAS products and companies before the creation of his blockchain project.

    Ryan has advocated for the cryptocurrency industry since 2015 and has developed a passionate interest in Decentralized Finance (DeFi) systems over the years.

    He created Glitch in August 2020 and was able to leverage his finance and business development experience to put together an incredible team to build a DeFi solution now known as Glitch Protocol.

    Hong-Kong serves as the platform’s development base.

    What is Glitch?

    Glitch protocol is a blockchain super protocol constructed to support and provide a working framework for decentralized financial applications to be built upon, and is designed to work in symbiosis with the Ethereum platform.

    It aims to be a scalable solution, providing increased throughput that would enable the process of thousands of transactions every second.

    Described as the world’s first “for-purpose” DeFi protocol, it offers a smart-contract platform for facilitating decentralized applications (dApps). In addition to the support it provides, the Glitch protocol also provides an enhanced user experience and efficient cross-chain interoperability.

    How does Glitch Work?

    As a solution that prioritizes user experience, it is designed to work effectively to remove redundancies caused by non-functional applications. However, its primary selling point is its high scalability, cost-effectiveness, and significantly increased throughput.

    The core concepts and features responsible for bringing these ideas to life are explained in the next few paragraphs.

    Consensus Mechanism

    The Ethereum platform used the same framework as Bitcoin to improve its consensus mechanism from a Proof of Work (PoW) to a Proof of Stake (PoS) system. Glitch protocol, on the other hand, employs a faster consensus mechanism known as Delegated Proof-of-Stake (DPOS). 

    In the DPOS mechanism, stakeholders reach consensus by outsourcing the network’s security to third-parties known as ‘block producers.’

    These individuals are authorized to create a new block every 0.5 seconds. Byzantine Fault Tolerance (BFT) is imposed on block producers to prevent block creation on multiple forks. Despite having a bypass to this limit, the protocol would automatically change consensus to the longest chain.

    What’s unique to Glitch’s consensus mechanism, however, is that voters do not select the block producers. Instead, each stakeholder is given an equal chance at block creation. This is to ensure fairness in the governance system.

    The Vault 

    The Vault is the system by which profit is distributed on the Glitch protocol. An immutable vault on the Glitch Blockchain collects 20% of all network fees and other revenues generated from the dApp. The deposit is automatic and shared among stakeholders on the network. 

    This revenue-sharing model encourages active participation in the network while fostering community support. The model also creates a positive feedback loop where the community supports developers and is incentivized to continually do so. 

    This loop drives the protocol forward, which maintains the platform’s progress.

    Token Wrapping

    Token wrapping on Glitch involves mirroring ERC-20 tokens from Ethereum on its platform with its GRC-20 token standard.

    Users with tokens on the Ethereum network can register their Ethereum address on the Glitch protocol. Their tokens can then be mirrored as a Glitch coin during an initial snapshot.

    This way, developers can simulate products and dApps from Ethereum while benefiting from the faster throughput and circumventing the high transactional costs they would otherwise have to work with on ETH. And while token wrapping is currently being developed for ERC-20 tokens alone, there are plans to incorporate other blockchains.

    Glitch Token ($GLCH)

    The Glitch Protocol allows the use of a single token, known as Glitch Token (GLCH), for all transactions and dApps be built across its ecosystem. This ensures consistency for all applications that utilize the network. In addition, users can exchange GLCH tokens on Uniswap.

    The total supply for the native token (GLCH) in circulation is 88,888,888 GLCH. After the public sale, 15% of the total supply (i.e. 13,333,333 GLCH) will be openly circulating.

    Glitch GLCH Token Distribution

    8,888,888 GLCH had been sold in the seed round at $0.03375 / GLCH. 0.625% of tokens will be released weekly for 4 months.

    22,222,222 GLCH had been sold in the private round 1 at $0.0675 / GLCH. 3.125% will be released weekly for 2 months.

    • 4,444,444 GLCH had been sold in the private round 2 at $0.07875 / GLCH. 1.125% will be distributed weekly for 1 month.

    • 13,333,333 GLCH had been allocated to the public sale at at $0.09 / GLCH. There were immediately unlocked upon listing on 11 January 2021 at 6:00am PST.

    Glitch Rewards Program

    Glitch Finance had provided initial liquidity on the GLCH/ETH pair on Uniswap. To incentivise users to provide liquidity, Glitch has a LP Rewards Program where they have allocated 888,888 GLCH (i.e. 1% of the total supply of GLCH) for rewarding participants. This program will run for 3 months starting on 17 January 2021.

    Glitch DAO

    The Glitch Protocol is governed by a network called the Glitch DAO (Decentralized Anonymous Organization). The DAO’s members are stakeholders who locked up their Glitch tokens in various pools. 

    The Glitch DAO has a unique structure, which employs two different DAO models to govern the protocol at its different stages. These two models have been engaged as a solution to conflicting incentives that are borne out of the need to support both Ethereum-based dApps on the Glitch network, as well as native dApps built from scratch on Glitch. 

    This difference in product-based risks the problem of exclusion if the DAO was based on either platform (Ethereum or Glitch). 

    The first model is an off-chain voting system, which uses an oracle to assign voting weights to either platform. This way, the potential exclusion would be mitigated. Yet, this model is vulnerable to fraud through oracle manipulation, especially when there is a substantial TVL (Total Value Locked) on native Glitch products.

    The other model is the on-chain DAO, which would see the establishment of two separate DAO’s that govern and support the Glitch Protocol on their platforms. Both DAO would contribute to the progress of the ecosystem.

    For the time being, before the TVL becomes significant, the off-chain DAO model would be used. 

    Conclusion

    Most DeFi enthusiasts agree that the current financial system has to be decentralized for the ideal of a free market to come to pass. Transactions and processes should be transparent and accessible by anyone with interest. 

    With the power of blockchain technology, this revolution is closer to home than ever as DeFi Innovators are already building applications for the Ethereum 2.0 platform. All that is needed now is a good network of smart contracts that is fast and efficient. 

    Protocols like Glitch would help achieve that outcome as a complementary protocol to the Ethereum.

    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.

  • DODOEx ($DODO): A Revolutionary On-Chain Liquidity Provider

    DODOEx ($DODO): A Revolutionary On-Chain Liquidity Provider

    DODO Exchange ($DODO) is a platform that supplies on-chain liquidity in order to support the Proactive Market Maker algorithm (PMM) to provide everyone with pure and contract-fillable liquidity on the blockchain.

    Overview

    The dawn of decentralized exchanges (DEXs) and decentralized finance (DeFi) brought with it automated market-making (AMM). Unlike in centralized exchanges, AMM doesn’t rely on buyers and sellers for a trade to take place. Instead, smart contracts sit at the center of the trade with liquidity pools providing the reserves.

    Unfortunately, in the DeFi scene, the AMM approach has faced challenges as to how to address issues such as slippage and impermanent loss effectively. As a result, platforms such as DODOEx are using a fined-tuned formula known as proactive market maker (PMM) which provides minimum slippage and improved fund utilization. Here, we take a close look at DODOEx, its contribution to the DeFi world, as well as what makes it unique.

    Background

    DODOEx, founded by three veterans in the blockchain industry, who has huge influencing power in China’s DeFi Community – Mingda Lei, Qi Wang and Diane Dai.

    Mingda Lei, he is the architect behind this new market-making algorithm for the protocol. He was a Physics PhD dropout from Peking University. He used to worked for a China-based DeFi project called DDEX as the key developer of the project. The second co-founder is Qi Wang. He is the founder of DOS Network, a China-based layer two oracle project. Before entering into the crypto industry, Wang used to worked as a software developer for firms like Pure Storage and Oracle. The third co-founder, Diane Dai, she started the first subscription-based WeChat channel that focuses on DeFi in China called DeFi Labs.

    Apart from the influencing team, DODOEx is also backed by many prominent investors such as Framework Ventures, DeFiance Capital, Pantera Capital, Binance Labs, Coinbase Ventures, Alameda Research, SevenX Ventures and more.

    What is DODOEx?

    Simply put, DODOEx is a decentralized liquidity provider using a new market making strategy. Notably, the new algorithm differs greatly from the AMM approach common with popular DEXs and/or DeFi platforms such as Uniswap and Curve.Finance.

    For example, instead of spreading funds uniformly over a price range, PMM allocates funds with close respect to market prices. One disadvantage of equally allocating funds is that only those funds with a close connection with the market price get utilized in trades. Therefore, in an AMM scenario, there’s a huge difference between the liquidity provided and the liquidity that is actually in use.

    DODO Exchange
    DODO Exchange (Image credit: DODO Exchange Website)

    How DODOEx Uses PMM to Beat AMM

    Compared to Uniswap’s AMM, DODOEx’s PPM has a better trading amount-vs-price curve. Why? Because, being a proactive formula, it reacts to the changes in the market price to effectively shift the price curve in a similar direction. Consequently, the section around the market price is considerably flat, ensuring sustained liquidity provision and utilization.

    DODOEx-Proactive Market Maker
    DODOEx – Proactive Market Maker (Image credit: “DODO: A Revolution in On-Chain Liquidity” Medium Article)

    Furthermore, apart from shifting the curve, DODOEx unlinks the base currency from the quote currency in a trading pair. Interestingly, this results in less risk and allows liquidity providers (LPs) to use the token at their disposal.

    For instance, if it’s an ETH-DAI trading pair, the LP has to deposit either ETH and DAI. Under these circumstances, DODOEx presents numerous advantages to traders and LPs

    Advantages of DODOEx to Traders

    • Although the protocol is decentralized, DODOEx traders have enough liquidity close to what is offered by centralized platforms.
    • There’s a possibility of having price differences between other exchanges and DODOEx which can be commercialized by arbitrageurs.
    • Liquidations, auctions, and other on-chain activities powered by smart contracts can utilize liquidity from DODOEx.

    Advantages of Using DODOEx as an LP

    • By unlinking the base and quote tokens, LPs can use any asset type at their disposal.
    • No minimum restrictions on deposits.
    • LPs share the network’s transaction fees.
    • LPs don’t incur price risks when depositing their own tokens.
    • They can use their coins to create trading pairs.

    DODOEx’s Native Token ($DODO)

    DODO is an ERC-20 token and forms DODOEx’s native currency. DODO is the platform’s governance token. DODOEx’s governance structure consists of three decentralized autonomous organizations (DAO); admin, risk control, and earn.

    The admin DAO is responsible for overseeing all the decisions made on the DODOEx ecosystem. Being the administrator, it has a considerable influence on the other DAOs.

    The risk control DAO, as the name suggests, deals with the system’s risk features. Earn, on the other hand, governs how incentives are shared on the platform.

    DODO token distribution
    DODO Token Distribution (Image credit: “Announcing the DODO Token and Initial DODO Offering” Medium Article)

    DODO’s total supply is 1,000,000,000 tokens which are allocated to the core team (15%), investors (16%), initial liquidity provision (1%), operations/marketing (8%), and lastly, the DODOEx community takes 60%.

    DODO’s Initial DODO Offering (IDO)

    The IDO was held on 29 September 2020 on DODO Exchange platform. DODO Exchange has listed the DODO-USDT trading pair. 1% of the total DODO supply is locked in the DODO liquidity pool and the initial offering price is $0.10 per token.

    Earning DODO: Staking and Mining

    The DODOEx system provides two ways to earn DODO tokens; staking and mining.

    Staking

    This involves locking your present DODO token holding and acquiring more tokens in the process. This can be done by:

    • Accessing the exchange through app.dodex.io.
    • Connecting your wallet through MetaMask.
    • Click “mining” on the upper far right corner.
    • Select DODO.
    • Click stake (note that there’s no way to edit the stake or unstake amount. Therefore, you can either stake or unstake your entire DODO balance).
    • Confirm your option on the exchange and on the wallet.

    Mining DODO 

    It involves providing liquidity in any supported trading pair using the pool tab. To access the pool option,

    • Visit app.dodoex.io.
    • Connect your wallet through MetaMask.
    • Select “Exchange” from the top right.
    • Click on “pool” and select your preferred pair. Note that you can deposit any coin on the trading pair. For example, if it’s the ETH-UDSC pair, you can deposit either ETH or USDC.
    • Click “Deposit,” define the token amount you wish to deposit, and select “Confirm.”
    • Access your wallet to confirm the transaction after which you click the “mining” button on the top right corner.
    • Approve the transaction and confirm it in the popup window that appears. In effect, another approval is required since you are now dealing with DLP tokens allocated from depositing your cryptocurrency on the above steps.
    • In the last step, confirm and stake.

    Core Components of the DODO Contract Framework

    A set of smart contracts powers the DODOEx protocol. However, for optimal interaction, these smart contracts are divided into three core components. They include:

    The Core – This holds all the ecosystem’s data and logic. It consists of the transparent proxy contract and the logic implementation contract.

    DODO contract framework
    DODO Contract Framework (Image credit: DODOEx ‘Smart Contract Framework’ Github)

    The Entrance – The entrance contract helps in streamlining activities on the transparent proxy contract, which is associated with oracles and fine-tuning parameters. Consequently, it helps mitigate the losses for users.

    The Helper – This section of the DODOEx ecosystem holds contracts that are meant to help remove the complexity of the platform away from its users.

    Conclusion

    The network’s next-generation liquidity provision algorithm ensures high fund utilization and ensures LPs don’t lose value between depositing and withdrawing, commonly known as impermanent loss.

    In addition, DODOEx is beneficial to both traders and liquidity providers. For example, it provides enough liquidity for traders and LPs share a section of the system’s transaction. Also, DODO mining and staking enable investors to increase their token holdings.

    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.

  • Atari ($ATRI) – Powering the Gaming Industry

    Atari ($ATRI) – Powering the Gaming Industry

    Atari, the pioneer of the videogame industry, is venturing into the crypto space by creating their own token, Atari Token, ($ATRI), to power the future of the interactive entertainment industry. The global entertainment and media market is projected to be worth approximately $2.2 trillion by 2021. Interestingly, gaming is continually accounting for a more significant chunk of the industry’s value and is projected to be worth $200 billion within the next few years, according to Statista. With the integration of blockchain technology and the Atari Token, the company believes that this will revolutionize the global gaming industry.

    Background

    Atari token is developed by icons in the gaming scene, Atari. The firm has over 200 games under its name. If you are a gamer, their titles would not be able to you as games like Pong, Missile Command, and Roller Coaster Tycoon were once very popular.

    Atari has been developing games since 1972. Therefore, its knowledge of the interactive has been enjoyed by gamers through generations.

    Notably, to be alive from 1972 means that the company has been able to adapt to the changing needs in its environment swiftly. It’s this open-mindedness that has seen the introduction of the Atari Token. Frédéric Chesnais leads the project as the CEO, with Manfred Mantschev heading the business development division.

    Atari's Partners
    Atari’s Partners (Image credit: AtariChain Website)

    Additionally, the project has partnered with notable firms in the cryptocurrency and blockchain fields. They include the Litecoin Foundation, Arkane Network, Chain Games, and Blockchain Game Alliance (BGA).

    What is the Atari Token ($ATRI)?

    Atari Token ($ATRI) is a blockchain-based currency aimed at streamlining payments in the interactive entertainment space. The token is developed using Ethereum’s ERC-20 standards and is powered by the Ethereum blockchain.

    However, before expanding to the entire area, the token sought to first make an impact on the gaming ecosystem. Although the project is driven by a blockchain system with a relatively low transaction speed (around 20 transactions per second), the network is exploring a layer-two scaling solution to enhance the network speed.

    With the token, the Atari team is keen on removing the barriers presented by other cryptocurrencies like Bitcoin and Ethereum. For example, instead of limiting themselves to particular use cases, the cryptocurrency can be used in a wide range of use cases in the long run.

    Simply put, the Atari team is keen on developing a token that can be used in everyday activities even outside gaming.

    Atari Token ($ATRI)
    Atari Token ($ATRI) (Image credit: AtariChain Whitepaper)

    Despite being an in-game currency, ATRI can be exchanged for real-world items. Also, it can be converted to fiat.

    ATRI is stored in an ATARI Omni wallet that’s available on iOS and Android-powered mobile devices. The wallet has notable functionalities such as:

    • Support for human-readable addresses.
    • Chat support.
    • Ability to send payments through SMS, Email, and chat.
    • Ability to initiate crypto-based payments via a credit card.
    • Support for government-issued currencies such as the Euro or Dollar.
    • Also, with the right regulatory approvals, the Atari Omni wallet can swap crypto for fiat.
    Atari Ecosystem
    Atari Ecosystem (Image credit: AtariChain Website)

    ATRI occupies a critical role in the Atari ecosystem. For instance, the token is used to power activities on smart contracts. In addition, it acts as a medium of exchange on supported platforms. As a start, the token forms a key pillar in the Atari system that has the Atari Casino, Atari Exchange, and Atari Betting.

    Atari ($ATRI) Public Sale

    The public sale of the Atari Token will begin on 29 October 2020 on Bitcoin.com Exchange. The price per token is set at $0.25 per token with a hard cap for the public sale of $1 million. The Atari Token will be listed on the Bitcoin.com Exchange following the completion of the public sale. For more information, please refer to their telegram or twitter.

    Atari Tokenomics

    The circulating supply of Atari Token is 65,389,000 and the total supply is 7,771,000,000. Atari Chain applies a token burn/buyback economic policy that aims to track network growth, demand and usage with the emission of new tokens into circulating supply. Any unsold tokens during the Private or Public Sale will ultimately be burned.

    Atari Tokenomics
    Atari Tokenomics (Image credit: Atari Tokenomics)

    Atari Token Governance

    Since it’s a community-focused project, the governance of the token is done through a decentralized autonomous organization (DAO). But, the basic rules have to be developed before welcoming community involvement. Therefore, the project will smoothly transition from centralized to decentralized governance.

    However, after decentralization, the Atari network will have 12 distributed parties that will oversee consensus among the Atari community.

    Advantages of ATRI

    Within such an expansive industry, such as interactive entertainment, the token has a wide range of advantages. Top among them include, but not limited to:

    Easy Integration

    The token is built to be the universal token on gaming platforms. For this reason, the fact that it is based on the Ethereum protocol puts it at its rightful path, considering that the blockchain platform has more than triple the number of developers compared to other decentralized networks.

    High Liquidity

    ATRI banks on attracting liquidity from a multitude of internet-based entertainment platforms. Notably, the coin will be integrated on platforms that are secure, as well as with high transaction volumes.

    Auditable

    The cryptocurrency industry has been filled with scams and poorly secured platforms for a long time, leading to security breaches and loss of investors’ funds. ATRI solves this by opening up to independent audits. This powers secure smart contracts and prompt the use of standardized safety policies. (https://www.srmfre.com)

    ATRI Use Cases

    The token can be used by gamers and developers alike. For gamers, the ATRI is ideal for making micro-transactions inside games, making digital representations of avatars, and allows participation in casino games centered around cryptocurrency.

    Atari’s Vision (Image credit: AtariChain Website)

    Developers, on the other hand, enjoy an enhanced payment process during development and an incentive to build blockchain-based games. For example, developers can easily integrate in-app purchases and collaboratively program, test, and translate their work.

    Conclusion

    In an industry expected to reach a valuation of 2.2 trillion US dollars, putting those who matter, gamers and developers, at the heart of the growth is the key to foster a motivated community and a vibrant interactive entertainment industry. This can only be achieved through innovative solutions like the Atari token.

    From powering in-game purchases to facilitating chat-based payments, ATRI sits at the core of the gaming sub-industry and forms a core pillar in the entire internet-based entertainment sector. Through its key partnerships, easy integration, high liquidity, and openness for auditing, the Atari token is ready to conquer all the sectors of crypto-based online entertainment.

    Importantly, its success in these realms would naturally lead to its adoption for daily uses outside the entertainment space.

    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.

  • Yubico’s YubiKey: Review and Guide

    Yubico’s YubiKey: Review and Guide

    The first line of defense to an online account is a username and a password. However, malicious actors sprawling the internet have made the traditional account security combo unreliable and risky per se.

    Therefore, SMS-based two-factor authentication (2FA) has been heavily utilized to provide another layer of security. Unfortunately, skilled hackers can still find a way to intercept SMS codes.

    To detach account security from the monopoly of software-focused methods, universal second-factor (U2F) authentication was developed. The technology uses open standards under the Fast Identity Online (FIDO) Alliance.

    Check out our video explaining what is YubiKey, and its pros and cons.

    YUBIKEY REVIEW AND GUIDE: How to keep your Bitcoin and cryptocurrency SAFE

    What is YubiKey?

    FIDO works to reduce the reliance on passwords when securing internet accounts. YubiKey is a U2F-enabled hardware key developed by Yubico to secure web-based services. Businesses, individuals, and developers can use it.

    Yubikey
    YubiKey

    The key is available in different shapes and connectivity functionalities. While earlier versions only support physical insertions into USB ports on a host device, the YubiKey five series accommodates connection through near field communication (NFC).

    NFC allows interaction with the device without physically plugging it into a port. However, the key and the host device must be near each other.

    YubiKey Reviews on Amazon

    From the reviews left by buyers on Amazon and other platforms, it is evident that the key is a must-have for security-conscious internet users. In fact, over 80% of buyers left a five star score for the YubiKey.

    One of the reviewers recommended the Yubico YubiKey to developers, IT pros, and “security-minded users.” Furthermore, they praised its manufacturer for providing GUI-enabled YubiKey manager for those having a hard time on where to start.

    Others attributed their happiness to the key’s support for password managers such as LastPass. YubiKey users hail it for ease of use as a smart card and its compliance to the Health Insurance Portability and Accountability Act (HIPAA).

    Unfortunately, not everyone is happy with their hardware key. Although the negative reviews are minimal, some raise valid concerns.

    Among the main problems is documentation, which isn’t user-friendly. Additionally, a buyer on Amazon notes that the key “is still too complicated for the average consumer, as it’s not exactly a plug and play device.”

    How to Start Using YubiKey

    The process of enjoying world-class security on your online accounts starts with purchasing the hardware piece from a reliable platform. After receiving a key, visit Yubico’s website, and choose your key from the list.

    Specifying the purchase key from the list helps filter the services where it can be used to provide security. On the services list, select the account you need YubiKey’s hand in boosting its security.

    Each service is followed by step-by-step instructions on how to connect to the hardware security key.

    For example Binance lets you use your YubiKey with their cryptocurrency exchange. This means that your YubiKey is required for authentication before approving any transactions. Note however that Yubikey authentication is not supported on Binance’s Apps and mobile websites.

    How to set up your YubiKey on Binance

    • Login to your Binance account and click on your profile avatar.
    • Choose “Security” from the options, then “Setup.” On the 2FA section, click on “Security Key.” Note that it only provides the needed extra security layer when accessing the Binance.com website.
    • Read the note and hit “Continue anyway.”
    • Insert the key in any available USB port and press the button at the hardware’s center to activate it.
    • Activation needs to be done within one minute after inserting the key. However, it can be repeated if you miss this activation window.
    • Once activated, hit “Allow” to the message “Allow this site to see your security key.”
    • Next, verify your account. Note that Binance will need you to provide the authentication code from Google Authenticator if you had previously enabled this step.
    • Binance will then send you an email at the registered address for you to confirm the addition of a new 2-step verification method using something you physically have.
    • After verifying the email, you are done.

    Examples of YubiKey-Supported Services

    YubiKey works with a host of services such as cloud-based systems, password managers, email platforms, social media, gaming developer tools, cryptocurrency platforms, offline computers, among others.

    Examples of cloud-based systems compatible with the security key include Dropbox, DigiCert PKI Platform, DocuSign. Cryptocurrency platforms that support YubiKey include Binance, Coinbase, Kraken, Bitfinex, and Gemini.

    YubiKey bio
    Cloud-based systems compatible with YubiKey

    Social media platforms with inbuilt support for the hardware key include Facebook, Twitter, Instagram, and YouTube.

    For developers and offline computer users, YubiKey is enabled for popular services such as Github and Bitbucket for developers and can be used to login into Mac and Windows computers.

    Latest YubiKey Series

    The hardware piece is developed in sets, with keys in one batch having additional features than those in previous models.

    • Yubico YubiKey 5 Series – Keys in this group are compatible with conventional and new systems. It has enhanced passwordless, multi-factor, and 2F authentication. Also, it has a touch-to-sign button, can be inserted on USB-A and C ports, and has NFC capabilities.
    • Security Key Series – Its salient features include dual NFC and USB-A connectors. Additionally, hardware security pieces in this cluster are crush and water-resistant.
    • YubiKey FIPS Series – These are certified hardware security keys that can be used for regulated environments such as government institutions. This set weds different functionalities such as one time passwords (OTP), smart card technology, and U2F. Keys in this group have USB-A and USB-C compatibility.
    • YubiKey 5C NFC – It has support for NFC, USB-C, and provides a fast yet secure authentication process. This series has a longer list of supported operating systems and browsers than other versions.
    • YubiKey Bio – When released, this will be the latest Yubico YubiKey in the market. Its major selling-points are fingerprint recognition, enhanced security, minimal helpdesk calls, and PIN-based login.
    Coming soon: YubiKey bio

    Conclusion

    From the reviews, it’s clear the YubiKey hardware security key is effectively guarding users against account takeovers. However, which Yubico YubiKey is best suited for your needs depends on its cluster. The newer the series, the more the features and services it can provide.

    Despite some users citing complicated documentation, exerting effort to set this up can indeed give that extra layer of security that would keep your accounts safe and give you peace of mind.

    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.