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Category: Crypto Trends

Make sense of the news and how it affects the blockchain space as a whole. Crypto trends is a collection of relevant news and insights to help you make an informed decision.

  • SwissBorg vs eToro Comparison Review: Which Crypto Exchange is Better?

    SwissBorg vs eToro Comparison Review: Which Crypto Exchange is Better?

    Recently, the news has been flooded with talks about crypto regulation and exchange investigations by the SEC. This has raised a lot of problems among investors as particular crypto exchanges they use might one day become restricted by international regulators. Therefore, one of the safest long-term solutions is to find yourself a fully regulated crypto exchange.

    In this article, we will be comparing two of the top regulated crypto exchanges in the world: SwissBorg and eToro.

    See also: Top Best Cryptocurrency Exchanges of 2023

    What is Swissborg?

    SwissBorg

    Company Overview

    After having raised USD $53 million, SwissBorg was launched in 2017 by Anthony Lesoismier (CSO) and Cyrus Fazel (CEO). SwissBorg is based in Switzerland and is fully compliant with Swiss Law, making it a popular European crypto exchange. It is the first blockchain-based secure wealth management platform, aimed at simplifying the process of crypto investments. It integrates with major crypto exchanges, DeFi protocols, and features a community-based ownership model.

    SwissBorg is available in over 115 countries, and they have plans to include many more in the future. However, as of now, SwissBorg is not supported in the U.S. If you want to see if your country is included, you can visit their Supported Countries page.

    SwissBorg Team

    Prior to founding the exchange, Lesoismier was Head of Financial Market Digital-Advisory at JFD Brokers, and Fazel was a multicultural FinTech professional with decades of experience in asset management and algorithmic trading.

    The SwissBorg team spans 20 different countries, consisting of 300 highly experienced professionals in portfolio management, financial advisory services, and blockchain development. The combined power of their diversified expertise has led them to achieve numerous impressive milestones, including receiving the Mass Adoption Project of the Year award and the Top Swiss Fintech Startups award.

    Key Features of SwissBorg

    Wealth App Smart Engine

    The Wealth App is the smart command-and-control centre of SwissBorg. It lets users build, manage, and monitor their crypto portfolios, enabling easy and secure wealth management. Users can fund their accounts with 16 different fiat currencies, including USD, EUR, GBP, and CHZ. Additionally, similar to Coinbase, a limited number of high-cap digital assets are supported to ensure quality.

    The biggest advantage that SwissBorg has is their Smart Engine. It ensures zero spreads and no inflated exchange rates or hidden fees, allowing users to trade at the best rates and lowest slippage. Moreover, the Smart Engine analyzes hundreds of live trading pairs in seconds by connecting to major crypto exchanges such as Binance or Kraken. As a result, SwissBorg finds the best route to execute customer orders in milliseconds, saving investors time to find the best exchange rates.

    Smart Yield Account

    SwissBorg’s Smart Yield is a feature on its app which allows users to potentially earn passive income through Decentralized Finance (DeFi) protocols and Centralized Finance (CeFi) platforms. Smart Yield’s user-friendly interface allows easy access to the benefits of DeFi and CeFi, even average crypto users without much pre-requisite knowledge can stand to gain from it.

    The Smart Yield feature works with top platforms such as Compound, Curve Finance, Binance, Aave, and Uniswap, with its rates ranging from 0.1% to the highest 25% APY for over 20 assets. Since APY rewards change invariably due to supply and demand, you can check the current rates on the SwissBorg Smart Yield Rates page.

    Thematics (Crypto Portfolio Bundles)

    There are a lot crypto themes, and within each theme there are hundreds of different tokens to choose from. Decision fatigue really sets in when you are opting to diversify your crypto portfolio. SwissBorg’s answer to this is their “Thematics”, expert-designed bundles of different crypto themes.

    They provide exposure and diversification that is important for every crypto investor. SwissBorg’s Thematics lets you choose a category you have long-term belief in. For example, if you believe in layer-one protocols, you can choose a layer-one protocol bundle containing Ethereum, Cardano, Solana, Avalanche and so on.

    If you are interested in upcoming layer one protocols, you can check out our comprehensive article on Aptos or Sui.

    What is eToro?

    eToro

    Company Overview

    Based in Tel-Aviv, eToro was established in 2007 by co-founders Ronen Assia (Executive Director), Yoni Assia (CEO), and David Ring (Former CTO). The company was originally a social trading exchange offering commodities, indices, and stocks before diving headfirst into the crypto industry in 2018 with the launch of eToroX and a crypto wallet. It has since grown to one of the largest crypto exchanges, with a user base of 25 million active users worldwide.

    eToro offers a secure, regulated platform for crypto trading with a track record of storing investor funds for well over a decade. The company is regulated by the Cyprus Securities and Exchance Commission (CySEC), Financial Conduct Authority (FCA), and the Australian Securities & Investments Commission (ASIC). As such, eToro has a cross border license to operate in member states of the European Economic Area and other permitted countries.

    eToro Team

    Before eToro was established, Yoni Assia had held managerial roles in the FinTech industry and is an expert in computer science and finance. On the other hand, his brother Ronen Assia is a specialist in product design and engineering, having created products across various platforms such as medical devices, household applications, and web applications.

    eToro has one of the largest teams in the crypto exchange scene, with roughly 1,700 employees across 16 different countries in the EMEA, APAC and North America. They have seasoned veterans coming from various disciplines, such as IT and business solutions, data analytics, and blockchain innovations.

    Key Features of eToro

    CopyTrader

    The biggest innovative feature of eToro is their CopyTrader, which allows you to automatically copy top-performing traders, what they invest in and when. This is great for average crypto users and beginners as they can easily leverage other crypto traders’ expertise, instead of going through the hassle of constantly monitoring the market, unsure of whether to enter or exit. As a result, you can simply replicate their trading in your own portfolio. In a way, it is similar to KuCoin’s trading bot, where trading activities are already figured out for you.

    Moreover, CopyTrader is also a social trading platform, where traders are part of a collaborative community. They can with chat with other traders, discuss strategies and benefit from each other. This is a great place to start for beginners and learn from the best on how the market moves, but keep in mind that their quality is not assured. Crypto investments are always volatile.

    Smart Portfolios

    Similar to SwissBorg’s Thematics, eToro’s Smart Portfolios are essential a grouping of several assets bundled together based on the theme. In addition to crypto, eToro also has portfolios of stocks, ETFs, commodities and even people, as per their business model in the early 2010s before crypto became mainstream.

    Smart Portfolios leverages machine learning algorithms and data science to group the best performing bundles, taking into account factors such as balance, exposure, potential yield, risk, and more. Moreover, there are no management fees or commission, other than those applied with assets comprising each portfolio.

    eToroX

    eToroX is the company’s product specifically designed for professional crypto traders and institutional investors. It is not available to retail investors. It offers a suite of advanced trading tools, 30+ crypto assets including 17 unique stablecoins and 80+ tokenized asset pairs. eToroX has a highly competitive fee structure and is renowned for having deep liquidity for stabilizing large-volume trades.

    SwissBorg vs eToro Overview

    Cryptocurrencies and Products

    Both SwissBorg and eToro only offer a limited number of cryptocurrencies, around 30-40. Most of these assets have large market cap like Bitcoin, Ethereum, XRP (Ripple), BNB, and Polkadot. This is done to ensure quality, reducing exposure to high risk/high reward assets or degen projects that could incur a lot of loss. Both exchanges strictly adhere to standards set by financial regulatory agencies to protect the securities of investors.

    In terms of trading, both exchanges offer a wide array of trading tools for all crypto users as well as deep liquidity to support large volume trades with zero spreads. However, trading on eToro only benefits whales and institutional investors as eToroX unlocks them the full benefit and is inaccessible to retail investors. In contrast, SwissBorg’s Wealth App, optimized with Smart Engine, performs just as well as eToroX and is accessible to everyone.

    Furthermore, SwissBorg offers much more than crypto trading. Their Smart Yield feature works with numerous DeFi protocols and CeFi platforms, simplifying the process of earning and allowing users to stake and receive passive income. On the other hand, eToro also has their own staking reward programs, but is only limited to Cardano, Tron, and Ethereum. Although their monthly staking yield is high, only UK and US users have access to it.

    Fees

    Thanks to their Smart Engine, SwissBorg users do not have to worry about inflated exchange rates, floating spreads, and hidden fees. In other words, you will never end up with less crypto than what you paid for. There are no deposit fees, but crypto withdrawals are subject to an execution fee of at least 0.10%, which is relatively low compared to other exchanges. In terms of exchange fees, SwissBorg fees are among the lowest in the crypto industry, but vary greatly depending on loyalty tier and which fiat or crypto asset is being used. Moreover, 20% of their profits generated from the fees are reinvested back into the SwissBorg ecosystem.

    On the other hand, eToro charges a 1% fee on crypto transactions plus a spread. Although this is still considered lower compared to other exchanges, it is not as competitive as SwissBorg. If you are planning to trade a lot of cryptocurrencies, paying more than 1% can eat into your profits. Unlike SwissBorg, eToro charges foreign transaction (FX) fees for non-USD deposits, and USD $5 for withdrawals. Furthermore, if you are planning to HODL assets long-term, it is important to note that eToro charges an inactivity fee for accounts that have not been online for a year. You can simply log in each day to negate that.

    Overall, SwissBorg is the clear winner in terms of lower and transparent fees.

    Security

    As leading trading platforms, both SwissBorg and eToro have successfully ensured compliance with top regulatory authorities, placing the security of their platform and the safety of their clients’ funds as a top priority.

    Both exchanges adhere to Know Your Customer (KYC) and Anti-Money Laundering (AML) regulations, protecting traders from fraudulent and criminal activities. Much like all other major crypto exchanges, SwissBorg and eToro uses two-factor authentication (2FA), data encryption, network monitoring and other standard security protocols.

    Both companies also store account funds in cold storage so that they cannot be hacked online. However, their methodology of cold storage security is different but impenetrable nevertheless.

    eToro deploys a cold storage Custody as a Service (CaaS) solution in partnership with leading cybersecurity firm GK8. It is essentially the application of secure institutional model of custody and cryptographic security in crypto. The funds are also insured by Aon PLC against theft, loss, damage or destruction of assets.

    On the other hand, instead of custody mechanism, SwissBorg addresses and enhances cold wallet security by implementing multi-party computation (MPC) keyless technology. It does not require a private key to be created, eliminating a single point of failure. MPC works by multiple parties jointly performing mathematical computations, without one party revealing its information to the others. SwissBorg achieves this in collaboration with Fireblocks as their security partner. Fireblocks is renowned for being the most secure and adaptable platform that leverages MPC technology to secure digital assets.

    Crediting to their advanced security protocols and regulation compliances, there have been no known successful hacks on both SwissBorg and eToro to date.

    Key Takeaways

    Both SwissBorg and eToro are great crypto exchanges for investors to manage and expand their portfolio. While eToro’s CopyTrader feature is great for beginners to learn how expert traders maneuver the market, it is important to note that their quality is not assured. Crypto investments are always volatile, and no one can predict the market.

    Overall, SwissBorg is relatively better than eToro in terms of trading efficiency, fees, and product variety. SwissBorg’s Smart Engine allows users of all levels to trade without inflated exchange rates, spread and hidden fees. Their exchange fees are also much lower than eToro’s, and have no deposit fees. Moreover, the company also brings DeFi benefits to its users, letting them earn high APY rewards in a simple process.

    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.

  • Bitbuy Exchange Review (2023): First Regulated Crypto Exchange in Canada

    Bitbuy Exchange Review (2023): First Regulated Crypto Exchange in Canada

    Bitbuy is a Canadian cryptocurrency exchange platform that offers a secure and easy way to buy, sell, and trade digital assets. Today, we’ll concentrate on Bitbuy’s review and evaluation of the platform based on all of the most important factors.

    Sign up here to get started

    What is Bitbuy?

    Bitbuy is a leading Canadian cryptocurrency exchange platform founded in 2013 by Adam Goldman in Toronto. It is a secure and easy-to-use platform that supports popular cryptocurrencies such as Bitcoin, Bitcoin Cash, Ethereum, Ripple, Litecoin, Stellar Lumens and EOS. Bitbuy was originally called InstaBT but was re-branded to its current name as the company expanded. The main goal of the company is to provide Canadians with easy and secure access to Bitcoin and other cryptocurrencies. As the platform continues to improve, more cryptocurrencies will be added in the near future.

    Key Features of Bitbuy

    Key features of Bitbuy include:

    Exchange only for Canadian dollars (CAD). Bitbuy is only available to Canadian citizens and residents and is not available in any other country.

    Simple to use. Bitbuy has two platforms available: Express and Pro. Pro trading caters to experienced traders, whereas Express allows you to buy cryptocurrencies quickly and easily.

    The ability to buy and sell 25 different cryptocurrencies. Cryptocurrencies such as Bitcoin (BTC), Ethereum (ETH), Litecoin (LTC), and many others are digital assets that are revolutionizing the way we transact and store value.

    Regulatory compliance. Bitbuy is a regulatory-compliant platform that is registered as a Money Services Business (MSB) with the Financial Transactions and Reports Analysis Centre of Canada (FINTRAC).

    OTC desk. Bitbuy’s OTC trading platform is available to high-volume traders and institutional investors.

    Excellent customer service. Bitbuy provides direct email customer support and responds within 12 hours or less.

    Key Advantages of Bitbuy

    Bitbuy crypto exchange has quite a lot to offer, so let’s take a look at each of the aspects separately and see what it’s all about. 

    Security is a top priority

    Bitbuy is one of the most secure and reliable cryptocurrency exchanges in Canada. It is registered by FINTRAC as a Money Services Business (MSB) and is responsible for meeting all obligations under the PCMLTFA and associated Regulations. Every Bitbuy user has to confirm its identity, meaning that the platform ensures there are no fake accounts and scammers on the platform. Bitbuy is also responsible for keeping certain records and have to complete reports related to suspicious transactions, terrorist property, large cash transactions, and electronic funds transfers.

    Centralized and decentralized cryptocurrency exchanges both have their advantages and disadvantages. Centralized exchanges are similar to banks and can be considered safer, but there’s a third-party involvement and you don’t have full autonomy over your wallet. Decentralized exchanges, on the other hand, don’t involve a third party and you have full control over your assets. To ensure your security, whether you’re using a centralized or decentralized exchange, you should always keep your assets in a secure wallet, such as a hardware one.

    Buy & Sell Major Cryptocurrencies

    Bitbuy is a cryptocurrency platform that supports all major coins, including Bitcoin (BTC), Stellar Lumens (XLM), Bitcoin Cash (BCH), Ethereum (ETH), Litecoin (LTC), EOS (EOS), Ripple (XRP), Decentraland (MANA), Chainlink (LINK), AAVE, Dogecoin (DOGE), Cardano (ADA), Polkadot (DOT), Uniswap (UNI), SushiSwap (SUSHI), Polygon (MATIC), and Solana (SOL). With 17 different coins to choose from, Bitbuy is a great option for those looking to buy, sell, and store cryptocurrencies. However, if you’re looking for less popular tokens, you may want to look elsewhere. Ultimately, it all depends on your personal needs.

    Fiat Support (CAD)

    Bitbuy is a Canadian cryptocurrency exchange that allows users to purchase Bitcoin, Ethereum, and other cryptocurrencies using fiat money. It supports Canadian dollars only, but users can also fund their accounts with cryptocurrencies. Bitbuy is a reliable platform with a variety of positive reviews, making it a great choice for Canadians looking to buy cryptocurrencies.

    Useful Products & Services

    It is easy to use and provides clear navigation with the Express Trade platform, perfect for beginners. PRO Trade platform is created for advanced traders, with additional features such as in-depth market charts, advanced orders, and live order book. Bitbuy OTC is suitable for big trades, allowing you to work directly with one of Bitbuy’s experienced traders and get a live price quote. Bitbuy API is for experienced developers, providing access to 10+ markets with CAD-to-crypto and crypto-to-crypto pairs. Bitbuy also makes it easier by providing automated sign-up and onboarding processes, as well as a new “username” feature for a smoother experience.”

    Built-In Wallets for Every Account

    Bitbuy is a Canadian exchange that takes security seriously. They offer an insured built-in wallet and have partnered with BitGo to provide an offline vault. For those looking for an extra layer of security, hardware wallets like the Ledger Nano X, Trezor Model T, and KeepKey are recommended. These wallets provide a secure way to store cryptocurrencies and are worth the investment for those looking to protect their digital assets. Bitbuy is committed to providing users with the best security measures available, so they can rest assured that their funds are safe.

    Mobile App Available

    Bitbuy is a Canadian cryptocurrency exchange that offers users the ability to buy, sell and trade 7 different cryptocurrencies. The provider offers both a desktop platform and a mobile app that is available for both iOS and Android users. The mobile app features a clear design, is easy to use and navigate and offers the same functionality as the desktop version. Users can fund and withdraw CAD using Interac e-Transfer or bank wire. Bitbuy reviews have praised the platform for its user-friendly design and features, making it a great choice for both beginner and experienced traders.

    It has a 98%+ cold storage policy, 2FA on all transactions, 1:1 Bitcoin insurance, and a recent audit by a third-party blockchain security firm. The platform allows users to fund, buy, sell, and withdraw cryptocurrencies quickly and securely. It also has features that allow users to track currency market prices, orders, and view history. Bitbuy is also launching a new platform that will allow users to modify 2FA options based on their personal preferences. With its strong security and wide range of features, Bitbuy is a great choice for anyone looking to buy, sell, or trade cryptocurrencies.

    Fees are Relatively Low

    Bitbuy is a crypto exchange that supports fiat currencies and offers low deposit fees. When depositing or withdrawing Canada dollars, you will pay from 0.50% to 1.50% depending on the type of deposits and withdrawals – Bank Wire or Interac e-Transfer. Fees for trading are different for market makers and takers, with makers usually paying lower fees than takers. Market makers add liquidity to the market and increase the market depth, while market takers seek liquidity and take it off the book. Bitbuy is a great choice for those looking for a reliable and secure crypto exchange with low fees.

    Bitbuy is a Canadian cryptocurrency exchange platform that offers competitive trading fees. The standard fee is 0.25%, however, when using the ‘Bitbuy PRO’ version, the fee for makers is 0.10% and for takers – 0.20%. When using the ‘Express Trade’ feature, you will only pay 0.20% for each instant trade. Digital cryptocurrency deposits and withdrawals are free, however, processing times vary. Bitcoin deposits take 3 confirmations, Ethereum – 12 confirmations, while Stellar Lumens, Ripple and EOS processing is almost instant. Withdrawal fees vary depending on the currency, for example, Bitcoin (BTC) – 0.001 BTC, Stellar Lumens (XLM) – 26XLM, Bitcoin Cash (BCH) – 0.01 BCH, Ethereum (ETH) – 0.02 ETH, Litecoin (LTC) – 0.05 LTC, EOS (EOS) – 0.03 EOS and Ripple (XRP) – 25 XRP. Bitbuy’s fees are on par with the industry standard and get lower when using Bitbuy PRO.

    Key Disadvantages of Bitbuy

    It’s time to move on to the next section of this Bitbuy review: the platform’s drawbacks.

    A Small Number of Cryptocurrencies

    Bitbuy is a cryptocurrency exchange platform that offers 17 options to choose from, including Bitcoin, Bitcoin Cash, Ethereum, Litecoin, EOS, Ripple, Stellar Lumens, LINK, and AAVE. While this is enough for those looking to buy the most popular coins, it is much less than other international cryptocurrency exchange platforms such as Coinbase, Binance, and Kraken, which offer more than 30, 150, and 37 supported cryptocurrencies respectively. Therefore, if you’re looking for a platform with more options, then you should consider other options.

    How to Use Bitbuy?

    If this Bitbuy review convinced you that this platform is exactly what you’re looking for, I’d like to give you a head start by providing you with a step-by-step guide on how to create an account on Bitbuy as well as how to make a deposit to begin trading.

    How to Create an Account on Bitbuy? 

    • Step 1. The first thing you need to do is go to the Bitbuy main page and click “Sign Up to Get Started”. 
    • Step 2. You must now enter the required information: email address, password, and referral code (optional). After that, click “Create an account.”
    • Step 3. Check your email address; you should have received a letter from Bitbuy. If it isn’t there, click “Resend Verification Email.”
    • Step 4. Open the Bitbuy email you received and click “Verify My Email.”
    • Step 5. You can sign up for Bitbuy after your email has been verified.

    How to Make a Deposit on Bitbuy?

    • Step 1. Sign in by clicking “Your Account” in the top right corner of the page.
    • Step 2. After signing in, click the “Add Funds” button.
    • Step 3. You have two funding options: e-Transfer or wire transfer. Remember that wire transfers take longer.
    • Step 4. Enter the amount to be transferred and click “Next.”
    • Step 5. Complete the transaction by logging in to your financial institution’s or online banking platform.

    Conclusion

    Bitbuy is a Canadian cryptocurrency exchange founded in 2013. It offers a secure platform for buying and selling major cryptocurrencies, a built-in wallet, and a mobile app. However, it has relatively high fees, is only available to Canadian citizens, and has some concerning reviews online. It is suitable for beginners but may not be as good for experienced traders. Before buying cryptocurrencies, it is important to also get a secure wallet for your assets. Popular models include Ledger Nano X and Trezor Model T.

    From now to 18th April, you can buy a Ledger Nano X and get $30 BTC for FREE! Click below to buy!

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

  • WAX ($WAXP): The King of NFTs?

    WAX ($WAXP): The King of NFTs?

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

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

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

    Profitable digital collectibles and blockchain gaming (with WAX blockchain)

    Background

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

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

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

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

    What is WAX?

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

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

    WAX Blockchain

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

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

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

    WAX Tokens ($WAXP)

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

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

    WAX and DeFi? WAX’s new tokenomic model explained

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

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

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

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

    WAX Guilds and Rewards

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

    WAX Performance Metrics

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

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

    The Future of WAX technology

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

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

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

    Conclusion

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

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

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

  • How To Stake Ethereum 2.0 on Allnodes?

    How To Stake Ethereum 2.0 on Allnodes?

    Staking on Ethereum 2.0 is finally live. However, the process of connecting your Ethereum (ETH) coins can be a bit tricky. It’s not all about sending 32 ETH to the contract. Doing so would end up with you losing your funds. In this tutorial, we will cover how to connect to the ETH staking contract through a validator node. Furthermore, we shall be using Allnodes, a non-custodial platform for hosting nodes.

    How To Set up an ETH 2.0 Validator?

    First, your Ethereum wallet should have the 32 ETH coins needed by the contract. Note that interacting with the Ethereum blockchain is done through MetaMask. Therefore, you need to fund your MetaMask through a hardware or a software wallet.

    The journey starts on Allnodes. The platform takes care of the technical bit of hosting nodes for a relatively low fee, although it depends on the hosting package chosen. The platform supports multiple payment methods, including Bitcoin and other cryptocurrencies.

    Click on Ethereum staking on the upper right corner, and on the new window that opens, select “Host ETH 2.0.”

    If you’re new to Allnodes, create an account; otherwise, login to your account.

    Select you’re your plan.

    Connect to MetaMask.

    ETH 2.0 Launchpad

    Click on “Open ETH 2.0 Launchpad” then “Get started.”

    There are subsections on the left pane of the welcome screen, such as introducing eth2 phase 0, signing up, and responsibilities, among others. In addition, it holds information on the expected income. On the responsibilities section, for example, it states that a validator node only earns rewards when it’s actively participating in the network. Unfortunately, the effects of a node being offline are equal to the profits of it being online.

    Other critical sections:

    • Risks of slashing – If a node gets compromised or it misbehaves, its stake is slashed, consequently reducing its staking power.
    • Backup Mnemonic – They are special words that are used for recovering deposited ETH. For maximum security, the mnemonic should be written on paper instead of saving on a computer.
    • Transfer delay – For now, interacting with the deposit address is one way. As such, you can only deposit and not withdraw or transfer the coins.
    • Long term committed – Ethereum has a commitment statement noting that validator nodes are in it for the long haul and they can’t go back to previous versions such as ETH 1.0.

    On the client selection pane, there’s the option to run ETH 1.0 client. While this is possible, it’s costly and needs some technical knowledge.

    Generating Key Phrases for ETH 2.0

    The next window is for generating key pairs. First, select the number of ETH 2.0 validator nodes you need. Note that each node requires depositing 32 ETH into the Ethereum staking contract.

    Next, select between Linux, Windows, and Mac operating systems.

    For this example, we’ll be setting up an ETH 2.0 validator node on a Windows-powered computer.

    The intimidating part about this part is that it uses a command-line interface (CLI) instead of a graphical user interface (GUI), which is what non-devs are used to.

    Downloading and Using CLI

    Download the CLI from Github by clicking on the link “get it from developers.” When on the download page, select the release that coincides with your computer’s operating system.

    Extract the zipped folder to reveal the file called “Deposits.”

    The “Deposits” file is a CLI interface.

    To get it to run as required, hold the SHIFT key and right-click on the file to bring up the option “Open PowerShell window here.”

    On the previous download page, below the list of available downloads, copy the command code and paste it on the open CLI window. Note that this window should have a blue background color.

    CLI window

    Follow the instructions on the screen for the command to run successfully.

    Choose language and select a password. PLEASE remember this password; we shall need it later.

    The CLI will generate a unique mnemonic. The mnemonic helps you unlock your staked ETH when transfers finally go live. Therefore, put it on paper for safety and press “Enter.” Input the phrase.

    In the folder with your CLI download, a new folder named “validator keys” will be created. Inside this folder, we have two files; Deposit data and Key store.

    Depositing The Files on Launchpad

    On the “Upload Deposit File” section, hit “add file” and drag and drop the deposit data file (Deposit.in).

    Click “Continue” and connect to your MetaMask wallet, which should have 32 ETH.

    Read the summary, “Initiate the transaction,” and double-check the Ethereum deposit address.

    Confirm the transaction on MetaMask. You can view the transaction status on Etherscan after it’s successful.

    Back To Allnodes

    Let’s pick up from where we left on Allnodes. Confirm that you’ve generated ETH 2.0 phrases, deposit data, and have put in 32 ETH to the contract.

    The next step is to choose the hosting plan.

    Drag the files in the specified order. That is, the deposit data file, key store file, and provide the password we generated earlier on the CLI interface.

    The next window on Allnodes shows the status of your node.

    Note that you can use Allnodes to run multiple ETH 2.0 validator nodes.

    And, that’s it.

    Note that you can view the status of the deposit on the Beacon Chain by using the same address that you used to deposit your coins to the ETH 2.0 staking contract.

    Manage your Allnodes account

    To keep up ETH 2.0 node, you need to top up the node which requires a payment of around US$5 per month until the release of ETH 2.0. ETH 2.0 is expected to be launched in around 2 years. In return, at every epoch you would be able to earn a bit of ETH in return.

    Update: Returns on my Allnodes node?

    As of June 2022, my validator node balance is at 35.45202. This means I have earned a total of around 3.45 ETH since I set it up 2 years ago in 2020. Note that results may vary and those who set up their node earlier (as was in my case) were able to enjoy a 16% APY.

    Conclusion

    Ethereum 2.0 is being continuously developed by the Ethereum Foundation to be able to run on a wide range of computing devices. The above tutorial on how to set up an ETH 2.0 validator node using Allnodes covers every corner of the process. However, critical details such as mnemonics and passwords should be kept secure since they determine access to the deposited coins.

    In addition, it’s worth noting that the process happens on three platforms, Allnodes, ETH 2.0 Launchpad, and CLI. Therefore, the three systems must harmoniously work together to get the desired outcome.

    FAQs:

    What if You Don’t Have the Full Amount?

    Good question. First, NO. a validator node needs the full amount.

    Can the ETH 2.0 Staking Contract Take Less Than 32 ETH?

    However, you can still stake a lower amount only that it will be through third parties such as participating cryptocurrency exchanges such as Binance and Coinbase.

    Can I withdraw the rewards I earn from staking?

    NO, not until ETH 2.0 reaches Phase 1, which is likely to be in 1 year or possibly more.

    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.

  • Shadows Network ($DOWS): new hub for synthetic assets?

    Shadows Network ($DOWS): new hub for synthetic assets?

    Shadows Network ($DOWS) aims to be a hub for people to issue, trade, lend and borrow synthetic assets. The protocol is built using the Substrate blockchain network and is compatible with the Polkadot ecosystem.

    Background

    Iror Chen and Bruce Lin lead the Shadows project. Apart from being the co-founders, they double as the CEO and CTO, respectively. The two have extensive experience in diverse fields. To elaborate, Chen previously worked for Amphenol Group while Lin worked for Baidu.

    Other Shadows team members include Ted Shao (co-founder and COO), Claire Cai (co-founder and CMO), Sue Xia (overseas CMO), and Liang Li (risk control).

    Shadows’ list of partners includes Consensys Lab, NGC Capital, Polka Fund, Blocksync, DuckDAO, OneMax Capital, Oasis Capital, among others.

    What is Shadows?

    Shadows is a distributed platform focusing on the issuance, borrowing, lending, and trading of synthetic assets. The project leverages the Substrate framework that powers other popular DeFi networks like Polkadot.

    Note that synthetics are derivatives or clones of real-world assets. Derived assets can be of anything from cryptocurrencies, stocks, indices, fiat, and commodities. Also called synths, they enable holders to share in the profits and losses of an asset without necessarily having such asset in their portfolio. Doing so opens the DeFi scene to a global audience who would be locked out of the space.

    The platform sits on the Polkadot network as a parallel thread. As such, it has inter-chain compatibility with other platforms leveraging EOS and Ethereum to focus on synthetic assets. Cross-chain support opens the network to more blockchain-based assets. For instance, users can use Ethereum (ETH) or Bitcoin (BTC) to create synths.

    Shadows integrates an off-chain worker to help capture the system outside the blockchain. Note that the platform uses the worker to replicate trusted oracles. Furthermore, the oracles receive data from external decentralized platforms to trigger activities inside the blockchain. Unfortunately, traditional oracles suffer from security, efficiency, and scalability.

    The worker employs Substrate allowing it to perform non-deterministic tasks such as encryption and web requests, and other long-running tasks. The Shadows network achieves the above features through a layered system, focusing on different aspects of synthesizing the assets.

    Critical Areas on the Synthetic Network

    Synthetic Asset Issuance Agreement

    The platform secures the synths using its native asset, DOWS (more on this later). Users deposit the token into a smart contract for them to gain a right to create synthetics on the network.

    Consequently, the created tokens are DOWS backed. To reclaim back their tokens, users have to burn their synths. Note that the platform needs a collateralization ratio of 800 percent.

    Synthetic Asset Transaction Agreement

    The agreements support the trading of synths. These agreements minimize slippage and insufficient liquidity. Also, they ease and provide efficient trading.

    Debt Collateral Lending Agreement

    The platform employs lending pools that hold users’ debt into the pool to facilitate lending activities. How this works is simple. To elaborate, the borrowers access the pool to place a synth debt.

    Next, they pay interest and receive the loan in synthesized USD (xUSD). The need for xUSD funding is to provide flexible financing.  This funding option offers a balance between demand, supply interest, and rates.

    What Drives the Shadows Network?

    Four significant aspects power the platform.

    1. Rewards system – Users are rewarded when they use the native token to create synths. However, the rewards only apply to those who have reached the needed collateralization ratio.
    2. Governance – In the DeFi scene, governance is everything. On Shadows, the native token gives holders a voice when making governance decisions. Some areas falling under community governance include upgrading.
    3. Staking – The base asset does more than just governance, the token can be staked as collateral and at the same time benefit from staking rewards.
    4. Trading bonus – This goes to DOWS holders and is generated by those trading on the platform.

    How Does Shadows Work?

    First, note that the platform is compatible and connects to Polkadot.

    How Shadows Network works
    How Shadows Network works

    It works as an off-chain enterprise that connects to various parts such as inflationary supply, fee pool, and external services. It connects to Polkadot as a single service.

    The Protocol Offers Three Types of Incentives.

    The first type of incentive is where a user is charged 0.3% as the trading fee. How is this an incentive? It’s because they can send it to a fee pool and receive a mortgage in terms of DOWS.

    However, the trading fee incentive’s applicability varies between users because it’s dependent on the amount of debt that the user has and the amount in the debt pool.

    The second type of incentive goes to mortgagors who benefit from holding the base asset on a weekly basis. Notably, the amount of bonus received depends on how much debt the mortgagor has in the debt pool.

    Third comes rewards for lenders in the lending pool. These incentives have a weekly timeline.

    The Shadow Token ($DOWS) tokenomics

    DOWS is the backbone of the Shadows network. Apart from governance, casting synths, lending, and distributing rewards, the token can also be used to power the token destruction mechanism.

    The destruction part utilizes the transactions and debit pool fee. And, it follows a fixed ratio of 30% per week. Note that the token’s destruction is automatically driven by a smart contract. Observe that this makes the native token a deflationary base asset.

    Shadows did a double Initial DEX Offering (IDO) on Ignition and DuckSTARTER. The allocation of tokens were as follows:

    • Ecological Incentives: 63% — 63,000,000
    • Early Investors: 20% — 20,000,000
    • Foundation: 10% — 10,000,000
    • Advisors: 5% —5,000,000
    • Liquidity Provision: 2% — 2,000,000

    The vesting periods for various allocations are as follows:

    Shadows ($DOWS) vesting period
    Shadows ($DOWS) vesting period

    Is Shadows Network safe?

    Recently the Shadows project faced some accusations because they are allegedly connected to another project that recently suffered an alleged “hack” of their smart contract.

    On 6th March 2021, the Team Tweeted to address the concerns, saying that their smart contract codes were audited twice by Certik. And on both occasions the contracts were found to be secure and met the highest security standards.

    The Team in their Tweet on 7th March 2021 also said that Shadows Network uses a proxy contract to upgrade its smart contract and deliver key functions such as issuing, trading, borrowing or lending synthetic assets on the network. Most notably, the proxy contract will deploy incentive DApps for users such as LP staking and DAO governance etc. From these Apps, 63 million $DOWS (representing 63% of the total supply of $DOWS) will be minted as a reward to the community. Once all 63 million $DOWS have been released, the Team will permanently remove the mint function from the Shadows smart contract. This has the effect of stopping the Team from producing any more $DOWS and most importantly, to potentially prevent the price of $DOWS from being diluted.

    Further, this proxy contract and ERC20 contract are kept secure through multisig and is on Openzeppelin- an open-sourced protocol. The Team also notes that other popular names in the cryptocurrency scene i.e. Compound and Coinbase also use Openzeppelin.

    Conclusion

    Shadows helps bring traditional assets onto the blockchain. In doing so, the platform opens the conventional assets to more users. For instance, it brings these assets to DeFi users and those who don’t want to hold real crypto assets.

    Notably, the platform takes on a layered-approach to bring these possibilities to life-enhancing functionalities. Furthermore, the DOWS token helps power different aspects of the Shadows network.

    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.

  • GammaX Exchange Token Airdrop Guide: LIVE NOW

    GammaX Exchange Token Airdrop Guide: LIVE NOW

    The GammaX Exchange beta testnet is now live. Users can complete simple tasks to earn points in exchange for GammaX tokens. The more points you earn, the more tokens you can receive. In this article, we will explain what GammaX Exchange is and how to position yourself for the upcoming airdrop.

    GammaX Exchange Airdrop Step-by-Step Guide

    Here’s how to get a potential GammaX Exchange airdrop:

    1. Sign Up for Beta Testnet here.
    2. Answer Quizzes on Learn-to-Earn Platform
    3. Share Referral Link
    4. Follow GammaX Exchange on Twitter

    See below for more details.

    What is GammaX Exchange?

    GammaX Exchange is a decentralized platform for trading derivatives that provides the best of both worlds: the speed and liquidity of a centralized exchange and the security and governance of the blockchain. With audited smart contracts on StarkWare L2, GammaX ensures security and custody of users’ assets.

    The platform also offers a fast and easy user experience with an optimized off-chain order book, matching engine, and intuitive user interface. GammaX’s unique tokenomics and rewards system incentivizes genuine trading and retention while discouraging fraudulent activities such as wash trading and pumping/dumping of the token value.

    Investor Funding

    GammaX Exchange is backed by some of the biggest names in the crypto industry such as StarkWare, Alchemy, Cobo, Matrixport, Dexterity Capital, and Kyber Ventures. In August 2022, the team successfully closed a $4 million seed round, with Genesis Trading being one of the investors just before the FTX collapse.

    Does GammaX Exchange have a Token?

    Yes, GammaX Exchange plans to launch their own token. The tokenomics details are not out yet, but they have recently launched a rewards platform to incentivitize users for using the protocol. You can earn pre-token Gamma Points by completing various tasks on the GammaX rewards platform. These points will most likely correspond directly to your airdrop rewards once the token is launched.

    How to Receive GammaX Token Airdrop?

    The best way to receive GammaX airdrop is to sign up for their beta testnet (rewards platform) and complete tasks to earn pre-token GammaX Points. Here’s a step-by-step guide:

    1. Sign Up for Beta Testnet

      Sign up at gammax.exchange/beta-tester/?referral=44FA987 with our referral code (we each get 200 extra points)! Once you have signed up, 100 points will be automatically credited to your account.

      You can see your points and other account details at gammax.exchange/dashboard.

    2. Answer Quizzes on Learn-to-Earn Platform

      There are multiple courses available on gammax.exchange/learning-rewards. These courses involve watching video guides on certain crypto topics and then doing a quiz. You can earn up to 300 points for completing each course.

    3. Share Referral Link

      You will automatically receive your referral link upon signing up. If it doesn’t appear, please contact customer support by clicking the “chat” icon located at the bottom left corner of the screen.

      You can share your referral link with friends, and you will receive 200 points for each friend who signs up using your link (limited to 2 referrals per day).

    4. Follow GammaX Exchange on Twitter

      After following GammaX on Twitter, fill out this form with your wallet address and Twitter handle. 400 points will be credited manually every Monday.

    Airdrop Review

    Likelihood of Airdrop: GammaX has launched a rewards platform for users to earn points from completing tasks on the beta testnet. These pre-token points will correspond to your airdrop rewards once the token is issued.

    Airdropped Token Allocation: We do not yet know how much they will allocate for the airdrop. But for the time being, there is no limit to the Gamma Points you can earn.

    Airdrop Difficulty: The tasks are very easy to complete. All you have to do is watch the video guides and complete the quizzes for points. Additionally, you can refer to friends with your referral link and follow GammaX on Twitter.

    Token Utility: Their token utility is unknown, but it is likely it will follow the model of other decentralized exchanges (i.e. reducing transaction fees, providing liquidity).

    Token Lockup: There are no available tokenomics yet.

    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.

  • Liquid Exchange Review (2023): A Cryptocurrency Exchange with a Diverse Range of Supporter Coins

    Liquid Exchange Review (2023): A Cryptocurrency Exchange with a Diverse Range of Supporter Coins

    For those looking for a reliable and legitimate cryptocurrency exchange, Liquid is a great place to start, as the platform has seen a surge in popularity in recent years. This Liquid review will provide you with all the information you need about the features and benefits of the Liquid exchange, so you can decide if it’s the right choice.

    Sign up here to get started

    What is Liquid?

    Liquid is a Tokyo-based cryptocurrency-fiat exchange platform that was established in 2014 and granted an official license from the Japan Financial Services Agency in 2017. It offers a comprehensive solution to modern financial trading problems, providing traders with a secure and reliable platform to buy and sell digital assets. Liquid’s services are designed to be user-friendly and secure, allowing traders to access a wide range of features such as advanced order types, margin trading, and more. With its cutting-edge technology and customer-centric approach, Liquid is the perfect choice for traders looking for a reliable and secure platform to trade digital assets.

    Liquid is dedicated to establishing a safe crypto space that enables every trader and customer to benefit from secure financial transactions and exceptional blockchain technology. Its position in the top ten regulated crypto platforms not only benefits the organization but also serves as a robust platform for customers to enjoy excellent services with optimal security. With its creative interface, Liquid has successfully incorporated effective features and measures that provide users with a great experience. Liquid places a high emphasis on ensuring user satisfaction.

    Key Features of Liquid

    Some of the core features of Liquid are as follows:

    • The trading environment is excellent, facilitating the exchange of various cryptocurrencies, such as Bitcoin and Ethereum.
    • Innovative security measures are in place.
    • There is a strong focus on fintech innovation.
    • Advanced trading capabilities are available.
    • The interactive interface includes live price charts and analytical tools for professional traders.
    • Greater liquidity and fund control are provided.
    • The website is easy to navigate, allowing for effective information mining.
    • The search and browsing experience is smooth.
    • Despite dropping to the 67th spot during the Covid-19 crisis in March 2020, the Liquid exchange still boasts strong liquidity, ranking among the top 20 for 30-day trading volume at 5.7 billion.

    Key Advantages of Liquid

    As usual, we will begin our review of Liquid by examining the features and advantages that this Singapore-Japan exchange provides to its users. Subsequently, we will delve into some of the more noteworthy grievances. Finally, I will demonstrate how to register on the platform and make your first cryptocurrency purchase.

    Supports a Wide Range of Cryptocurrencies

    At present, there are over 7000 cryptocurrencies available for discovery, trading, and utilization, each with its unique approach. Although an average crypto enthusiast won’t require even 1/100th of them, the point is that the popularity of cryptocurrencies is on a steady rise. With this increased popularity comes an increase in the public interest. Through user Liquid reviews found online, it’s apparent that even cryptocurrency newbies do their research before entering the industry. The result is asset diversification and a move beyond Bitcoin.

    As a result, people seek cryptocurrency exchanges that allow them to trade more than just Bitcoin or Ethereum. That’s where Liquid exchange comes in. In Liquid crypto, users can access over 100 different cryptocurrencies for trading, which is quite a high number. While no single trader may require such a vast portfolio of crypto assets, having a wide range of choices is always appreciated. This aspect is frequently mentioned in user Liquid reviews, and understandably so – it is one of the exchange’s most significant features.

    Bank Transfers and Credit/Debit Card Purchases are Accepted

    The Liquid exchange is a popular platform for buying and trading cryptocurrencies. It supports multiple payment options, including bank transfers and credit/debit cards, making it easy to purchase Bitcoin and Ethereum. The exchange also offers a wide range of other coins, with some exceptions. Reviews of the exchange are generally positive, with users praising its user-friendly interface and secure transactions. With its wide range of payment options and secure transactions, Liquid is a great choice for those looking to buy and trade cryptocurrencies.

    Account and Asset Security is Taken Seriously

    This platform offers users a secure trading platform. With its advanced security measures, users can rest assured that their accounts and assets are safe from potential hacks. Liquid reviews have praised the exchange for its security features, which include two-factor authentication, cold storage, and advanced encryption. With these measures in place, users can be sure that their cryptocurrencies are safe and secure.

    It utilizes mandatory 2FA, withdrawal protection, IP address whistling, cool-down periods of certain setting changes, and 98% of user crypto assets stored in cold storage devices. Furthermore, it also implements KYC and AML checks and verifications to ensure the security of its users. All these measures make Liquid one of the most secure cryptocurrency exchanges on the market.

    Some Extra Features

    Liquid is a cryptocurrency exchange that offers users a wide range of features, including traditional cryptocurrency trading, Infinity trading (CFD trading), futures trading, margin trading, and more. With up to 100x leverage available, users can take advantage of the platform’s features to maximize their profits. Additionally, Liquid has a mobile app that allows users to trade and exchange on the go. With its extensive list of features, Liquid is a great choice for those looking to get involved in cryptocurrency trading.

    Key Disadvantages of Liquid

    Now, let’s determine whether they are significant problems or minor inconveniences.

    Issues for Users in the United States

    US-based customers can only trade on the exchange using crypto-crypto pairs as fiat-crypto pairs are reportedly inaccessible for residents of the States. This limitation is not surprising as many cryptocurrency exchanges have issues with the Securities Exchange Commission (SEC), and do not allow US investors to trade on them.

    However, trading with crypto-crypto pairs can cause inconvenience for newbie crypto traders as they have to acquire cryptocurrency, transfer it to Liquid, and trade it for another crypto coin of their choice. This process is long and tedious, and not beginner-friendly. As a result, Liquid may not be the ideal choice for US-based customers who are new to crypto trading and would prefer to buy cryptocurrency with fiat money.

    Mediocre Fees

    Liquid exchange reviews note that the platform offers a 0.3% trading fee for both market makers and market takers. This is considered to be rather high when compared to other exchanges. However, market makers have many more benefits, such as no fees when trading under $10,000 per month. Additionally, both categories of traders can reduce their fees by performing more trades, with makers having a faster reduction. Finally, users can also use the Liquid exchange native token, QASH, to reduce their fees even further. All of these factors combined can help traders get some good deals, fee-wise.

    How to Register on Liquid?

    We’ll start with the registration.

    • Step 1: Visit the Liquid official website and click the “Get started” button.
    • Step 2: Enter your legal name, email address, referral code (if applicable), and country of residence.
    • Step 3: Confirm your email address by clicking the verification link in your inbox.
    • Step 4: Sign in to your account and start trading!

    The registration process on Liquid is straightforward and quick, taking less than a minute to complete. Unlike other exchanges, KYC verifications are not required during registration, making it beginner-friendly.

    How to Start Trading on Liquid?

    Liquid Exchange makes it easy to fund your account and start trading quickly, with its optimized process.

    • Step 1: Log in to your Liquid account.
    • Step 2: You’ll be sent to your dashboard. Here are some useful hints on how to correctly set up your account – two-factor authentication, KYC, account funding, and so on. You’ll also notice a Buy | Swap button and a small VISA sign in the upper right corner of the screen. Click the button.
    • Step 3: Following the completion of some legalities and confirmations, you will be presented with a trading screen. You can use a credit or debit card to purchase cryptocurrencies or exchange one asset for another.
    • Step 4: The final step may be a little confusing, as you will be routed to your profile page and requested to complete KYC verification as well as secure your account with 2FA, if you haven’t already.

    The “complicated” element here just refers to the fact that you will need to take the time to authenticate your identity and set everything up in order for your order to be processed. Keep in mind, however, that this is a typical procedure – while you were able to avoid the tedious formalities during registration, they are still required.

    Conclusion

    In conclusion, the Liquid exchange is definitely worth checking out, especially if you’re located outside of the US and looking for a secure and reliable alternative crypto trading platform. With a wide variety of cryptocurrencies to choose from and an assortment of different features, Liquid offers a smooth and streamlined trading experience. While the platform’s default fees are slightly high and US investors can only trade crypto-crypto, these are minor drawbacks in the grand scheme of things. Overall, Liquid is one of the better exchanges in the industry, suitable for both beginners and experts. However, if Liquid doesn’t quite fit your needs, there are plenty of other cryptocurrency exchanges available, such as Coinbase or Binance, to explore.

    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.

  • 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.

  • Konomi Network ($KONO): bringing money markets to Polkadot

    Konomi Network ($KONO): bringing money markets to Polkadot

    Utilizing Substrate as a development blueprint, Konomi Network aims to develop a fully interoperable service product that allows users to trade cryptocurrencies, manage their holdings, and make a profit out of decentralized money market options for the Polkadot ecosystem.

    Background

    The problem that has since limited the use of cryptocurrencies and hindered its mass adoption is the lack of interoperability. Holders of a particular token belonging to a different blockchain cannot easily make cross-chain transactions. This also means that all other digital asset providers cannot simply work together to provide financial services due to network restrictions.

    Konomi Network is designed to solve that issue. Built on top of the Polkadot blockchain, the project addresses the problem with gas fees on Ethereum. This is to improve transaction speed and network scalability.

    As of now, the protocol already supports a decentralized liquidity swap and money market. The team behind Konomi is currently working on the launch of the bridge to Polkadot’s parachains, wallets, and the open virtual machine to support smart contracts. Before the end of the year, the team is planning to launch the Konomi mainnet on the Polkadot ecosystem, link with other assets through a cross-chain bridge, as well as introduce fiat payments.

    What is the Konomi Network?

    Konomi Network is an independent blockchain project that features a comprehensive asset management platform on top of the Polkadot ecosystem. It provides cross-chain products and services such as trading, lending, and deposits. Since the platform is supported by parachains and Ethereum bridges, it can facilitate blockchain-agnostic services.

    One of the strongest suits of the platform is its liquidity. Any trader can access liquidity from other exchanges through the platform in performing their trades and it relies on automated market makers (AMM) to supply buy and sell orders without the need for order books.

    For further decentralization, the platform implements the same consensus model as Polkadot, the Nominated Proof of Stake (NPoS). In this system, network security is maintained by the validators selected by the protocol’s stakers. They can freely choose how much they want to delegate to a validator and earn rewards in proportion to the amount of their stake.

    In the beta phase of the platform, it can be accessed as a web application. But in the next upgrades, the team will introduce a mobile version with the objective of making it easier for users to open the application.

    Konomi Wallet

    Konomi Wallet features a decentralized asset storage function. Users can freely deposit their cryptocurrencies on the wallet while still being able to monitor their holdings across different protocols. Through this application, users can also access either Konomi Trade or Lend easily.

    Konomi Trade

    Konomi Trade allows users to conduct their trades with the supply of liquidity coming from different markets in the Polkadot network. Supported by its AMM implementation, traders enjoy immediate on-chain transaction execution without the need for any third-party facilitator.

    Konomi Lend

    Konomi Lend is a decentralized money market protocol designed to allow users to borrow and lend their digital assets to other interested users. This product features the collateralized debt position model. This is where borrowers are required to lock at least the minimum amount specified for collateralization before they are allowed to make loans. For now, Konomi supports Polkadot’s native token (DOT) for collateralization.

    Decentralized Trading Protocol

    Konomi is designed to implement AMMs that are similarly deployed in most Ethereum-based exchanges. Its architecture is patterned after the DODO exchange, allowing it to effectively mitigate the risks of impermanent loss on the part of the traders.

    Decentralized Money Market

    Konomi’s money market protocol backs its borrowing and lending services for assets based on the Polkadot ecosystem. The interest rates imposed on borrowing depend on the total supply and demand in the platform’s liquidity pool. Patterned after the Compound protocol, these rates will be computed on a per-block basis.

    For those who would like to supply assets to the protocol’s existing liquidity pools, they can lock their holdings in smart contracts as collateral to earn lending interest. This also lets them access borrowing services.

    Cross-Chain Messaging Passing Feature

    Konomi will implement the Cross-Chain Messaging Passing (XCMP) function in order to achieve interoperability. XCMP is designed to link parachains together for the purposes of relaying transactions from one network to the other.

    What this does is it allows transactions made in different parachains to work despite their independence with each other. This allows users to tap other markets on the Polkadot ecosystem even if their assets are only on the Konomi protocol.

    KONO Token

    KONO is Konomi’s native utility token that is used to pay for the platform’s minimal transaction fees, trade between other market participants, collateral for loans in the network, staking, and protocol governance. The supply of KONO is limited and fixed to 100 million tokens.

    KONO token uses
    KONO token uses

    KONO holders are given the right to cast their votes on network proposals concerning different protocol parameters such as staking fee, transaction fee burn, liquidity mining ratio, and others. Participants to the governance mechanism are also given rewards for joining.

    The reward system for the protocol is also powered by KONO tokens. Those who stake their tokens and supply liquidity to the protocol are entitled to a reward proportional to the amount of token they locked in the network.

    Conclusion

    Konomi is an up-and-coming addition to the array of decentralized finance (DeFi) products in the space today. Since its infrastructure is supported by the Polkadot blockchain, it can stand to be a valuable competitor of other decentralized money markets and asset management services in the near future. Furthermore, its products can potentially entice a lot of users looking to make additional profit out of their holdings through staking. Its outlook for future adoption is positive.

    However, until the platform is fully operational, we cannot absolutely compare it with the initiatives that were first launched in the market. While Konomi is built on a high-performing blockchain with cross-chain functionality, its application’s capacity to support the needs of its users is still going to be the best metric for its growth and success.

    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.