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.
One notable challenge for every startup is finding the required capital to set up businesses. This is where concepts like venture capital help such businesses to meet the required level of capital to help them blossom. However, this has traditionally been a field accessible by funds and institutions with ample resources.
DAO Maker is here to improve the process for both parties by respectively creating growth technologies and funding frameworks for startups, and reducing risks for investors.
Background and Team
The Founder of DAO Maker is Christoph Zaknun who entered the cryptocurrency space in 2017. The idea of private permissionless money and the gains associated with cryptocurrency lured him further into the creation of ICO DOG, a platform that allowed for investing in token presales.
His Co-founder, Giorgio Marciano, also acts as DAO Maker’s CTO. Marciano has over 16 years of experience in developing software and products.
Other notable team members include Hatu Sheikh, who has overseen over 35 crypto assets marketing campaigns, and Malte Christensen, who works as the COO and Head of Sales, Dima, who works as the Head of Visual Communication.
What is DAO Maker?
DAO Maker is a provider of a participation framework that allows retail investors (small-scale investors) to participate in global retail venture capital. Essentially, the primary goal of DAO Maker is to raise a fundraising platform that would allow for equal participation of crowd equity and tokens.
The reality is that most of these small-time investors are likely unable to afford to invest large sums of money in venture capital. DAO fills the gap by enabling the average man on the street an opportunity to grow his own capital. This creates a win-win situation, the business is able to effectively provide a new source of funding while at the same time helping to improve the lives of many.
Achievements of DAO Maker
The platform has over time proven itself to retail investors. In the last 2 years, over 70,000 unique retail investors were signed up and allowed to participate in the funding of early-stage ventures. Apart from attracting investors, DAO Maker has also been able to attract startups with enormous potential to join the burgeoning ecosystem.
Advantages of DAO Maker
One major reason these startups join the DAO Maker ecosystem is simple: it provides them a safe, decentralized, and free environment that allows them to reach their potentials. In addition, the platform also has one of the leading solutions that would allow for the growth of these companies.
As a result, the ecosystem has seen a marked increase in the demand for its services, which enabled them to begin working on a permission version.
DAO Maker’s approach to fundraising stands out since not only does it connect startups with funding, it also assiduously works to assist them in facing challenges in the initial stages of their development.
This is why the track record of the fundraising platform has defied many market cycles.
DAO Maker’s Venture Bond
DAO Maker’s new flagship product is Venture Bond. It allows startups to issue bonds that users can access, whilst users benefit from close to zero-risk venture investments.
Venture Bonds work as follows:
startups issue Venture Bonds;
users purchase these bonds, giving the startups a principal sum of money;
startups then use the principal sum generated by bond purchases to generate interest through insured margin funding activities in decentralised finance (DeFi) or centralised finance (CeFi);
the generated interest serves as the funding for the startups;
the startup will then deposit tokens/equity to the Venture Bond holders; and
when the Venture Bond matures, the principal sum is returned to the buyer, so they are left with both their initial funding and also any newly acquired tokens or equity.
DAO Maker’s Venture Bonds (Image credit: DAO Maker)
Other DAO Maker Services
Other notable services of DAO Maker are Refundable Strong Holder Offering and Dynamic Coin Offering.
Strong Holder Offering
Strong holder offerings are designed to build a community that would actively participate in providing an increased level of awareness for a company, and at the same time, induce confidence by imposing a strict refund policy.
DAO Maker strong holder offerings (Image credit: DAO Maker)
Dynamic Coin Offering
For dynamic coin offerings, 100% of the circulating supply is backed by a notable portion of the funds raised during the sale.
DAO Maker then escrows this fund through a trusted and insured custodian, allowing the platform users the opportunity to claim a refund within a specified period.
Social Mining
One of the earliest offerings of DAO Maker is Social Mining, which has played a pivotal role in the successful launch of some tokens in the space. The software was conceptualized in 2018, and since then, it has seen various upgrades and usage, which made it an essential part of the DAO Maker community.
What social mining does is simple; it enables any project to create token-based incentives that encourages community members to offer value. In other words, it helps energize a project’s community to participate in its growth and development.
The first use of this software was with LTO Network, where it served as a core component in the community creation of the project, and subsequently enjoyed tremendous growth despite the bear market of 2018. Despite the notable success of this first project (LTO), there were still some notable lapses like the dependence of the software on centralized involvement, which negated the core idea of building a decentralized and self-organizing community in the first place.
However, since then, the team of developers have developed the software to allow pluggable DAOs and also allowing for stake-based voting. The voting allowed the community to determine the value each token holder contributed to the project. This voting system became a quite effective distribution network that was decentralized as token holders were the ones in charge.
As it stands, work has already begun on the two key pathways social mining is being geared to: granting permissionless support for tokenized startups and permissioned access for equity startups.
DAO Maker Token ($DAO)
DAO, the protocol’s native token currently allows its holders to stake in the platform and enjoy governance power in submitting proposals, as well as vote on them.
By participating in governance, stakers would also receive a part of the fee generated from the source. And in order to promote long-term participation, the staked DAO tokens are locked for a period of time.
As can be seen below, more utilities for the DAO token are in the works.
Conclusion
The idea behind DAO Maker is to create a platform where startups can enjoy early stage exposure from retailers. Thus, DAO Maker could be a single platform that elevates the capabilities of ordinary retail investors. The platform would also enable them to be issued with equity, while others are issued with tokens. All in all, the platform will enable varying levels of downside protection as early-stage startups face inevitable risks in their early days.
Disclaimer: Cryptocurrency trading involves significant risks and may result in the loss of your capital. You should carefully consider whether trading cryptocurrencies is right for you in light of your financial condition and ability to bear financial risks. Cryptocurrency prices are highly volatile and can fluctuate widely in a short period of time. As such, trading cryptocurrencies may not be suitable for everyone. Additionally, storing cryptocurrencies on a centralized exchange carries inherent risks, including the potential for loss due to hacking, exchange collapse, or other security breaches. We strongly advise that you seek independent professional advice before engaging in any cryptocurrency trading activities and carefully consider the security measures in place when choosing or storing your cryptocurrencies on a cryptocurrency exchange.
Benchmark Protocol ($MARK) is a supply elastic, stablecoin-alternative that connects traditional finance with the cryptocurrency market by revolving around the volatility index. It provides liquidity to the DeFi space during periods of high volatility to optimize value and stability.
Background
Founded by David Mass, the Benchmark protocol aims to bridge the digital currency market to traditional financing. The project was set in motion by a team composed of investors, blockchain engineers, and financial experts to strengthen security and the efficacity of loan collateral within the blockchain.
The sudden selling pressure experienced by the crypto market in march of 2020 prompted the team to act as they understood the risks within DeFi. The Birth of Benchmark exhibits the unique drive of the ambitious team behind the platform.
Ultimately, Benchmark’s team looks to be a household name within the market by staying relevant within the mainstream DeFi space and optimizing their product to the needs of the blockchain.
What is Benchmark Protocol?
Benchmark Protocol is a supply-elastic collateral and hedging system driven by a volatility index. Simply put, the Benchmark Protocol lessens liquidation events and hedges risk with its very own cryptocurrency, the $MARK token.
Furthermore, Benchmark’s algorithm functions as a rule-based utility that adjusts supply, and is supported by the CBOE volatility index (VIX) and deviations from the target metric, which is equal to 1 Special Drawing Rights (SDR) unit. The Benchmark team believes that implementing the SDR creates a larger and far more efficient use case rather than exposure to just one currency.
The Benchmark Protocol provides a dynamic and supply-elastic token in the MARK token, as it manages to connect traditional capital markets to DeFi. The platform’s protocol is unique and efficient; completely separate from the crypto market prices and trends.
The protocol prides itself as an ideal hedge exhibiting total transparency with all users and transactions making a secure and reliable solution for the DeFi sector. Its immutability is robust enough to prevent systematic risk arising from cease and desist orders.
Benchmark’s innovative approach has isolated the recurring issue of overshooting the target peg within the varying market conditions. Through the MARK token, the platform can effectively rebalance supply within a 5-hour window after the New York Stock Exchange (NYSE) ensuring the reduction of arbitrage activity for token users.
The distinct algorithm effectively adjusts to trends within DeFi while implementing traditional finance market strategies. The protocol actively monitors and regulates the total supply of tokens to compensate for anticipated price movements. This method helps in reducing excessive amplitudes of price percentage changes.
Since its implementation by the International Monetary Fund (IMF), the international reserve asset SDR has been an important factor concerning the health of the international financial system. SDR value is supported by five currencies: the Euro, Chinese renminbi, Japanese yen, U.S. dollar, and British pound sterling.
The Benchmark Protocol has been targeting the SDR’s historic price of $1.4075, with a long-term view utilizing macro-exposure to the world’s most established currency basket. The SDR is a superior and secured peg that will not face a tough path should the US Dollar experience strong inflation.
The Benchmark Protocol primarily benefits from SDR diversified and global currency risk instead of single currency risk, which will attract more users globally, thereby, contributing to the growth of the project long term.
Volatility Index (VIX)
Described as the market’s “fear indicator”, VIX is a real-time market index used to estimate the market’s expectations for the relative strength of near-term price changes and volatility typically within the S&P 500 index (SPX).
The blockchain-based platform relies on the VIX as an accurate and suitable predictive element for price development. The VIX enables the platform to be ahead of its competitors by allowing it to be more dynamic and proactive in the DeFi market.
The Press
The platform values Liquidity providers a great deal, as they are essential for the proper operation of the MARK token as a stable collateral utility. Furthermore, liquidity mining is an essential component of the Benchmark Protocol during the bootstrap phase.
The Press is the second phase of Benchmark’s liquidity providers rewards distribution program. It is the largest token allocation with 27% of the total supply provided to liquidity mining initiatives that compensate the liquidity providers’ active participation in the Benchmark network. The Press will feature core MARK Pairs, such as MARK-ETH and MARK-USDC on Uniswap.
The team plans to implement The Press for a period of 3 to 7 years, all depending on distribution velocity.
MARK Token
Built on the Ethereum blockchain, Mark Token is Benchmark’s native asset. MARK is an ERC-20 utility token and was released to the market while taking into consideration SDR and the VIX. So, MARK is secured to the world’s most stable currency (the SDR). Additionally, the token’s rebalances are smart and fast, derived from VIX.
Overall, Benchmark’s native token can be described as a supply-elastic collateral utility designated to increase liquidity during periods of high volatility and in direct correspondence with global equities markets.
MARK is a dynamic digital asset separate from other crypto implementations as it does not rival traditional fiat or paper currencies, which enables token holders to rely on a global currency risk profile versus a single currency risk profile. Additionally, through the platform’s utility token, users are shielded from inflation and further benefit from collateralization of risks.
XMARK Token
xMARK is another ERC-20 utility token within the platform, which represents MARK but is not affected by rebases. xMark is designed to help move the platform towards on-chain governance. The token is minted by holders staking MARK tokens within the single-asset staking platform and is currently available on Binance Smart Chain and Quickswap.
Conclusion
Overall the Benchmark protocol manages to deal with the issues of volatility and inconsistency within the blockchain elegantly. Through MARK and xMARK utility tokens, users are ensured that rules-based, non-dilutive, and supply-elastic collateral will facilitate their crypto journey.
The DeFi sector is set to benefit tremendously from such technology, which provides a unique product that is currently lacking in the blockchain.
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
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.
CEX.IO is a secure and user-friendly cryptocurrency exchange platform that enables users to easily buy, sell, and trade digital assets. In this review, we will share all about CEX.IO, it’s brief history, digital currencies you can buy, sell and trade, then the advantages and disadvantages of the platform.
CEX.IO is a legitimate and safe cryptocurrency exchange platform that supports multiple deposit types and different digital assets. It is suitable for both advanced and beginner users who are looking to buy and sell cryptocurrencies. CEX.IO LTD, the company behind the exchange, is registered in the United States as a Money Services Business and is licensed by the Financial Crimes Enforcement Network (FinCEN). The exchange has also expanded its services within the US, with MTL licenses that can serve 48 different states.
CEX.IO is a cryptocurrency exchange that provides users with a level two DSS certificate for added security. However, it is still vulnerable to hackers due to the vast amounts of different currencies stored on the platform. To ensure your cryptocurrency is safe, it is recommended to store it in a secure wallet. Sample secure wallets are MyEtherWallet or Exodus. CEX.IO is a reliable exchange, but users should take extra precautions to protect their digital assets.
Key Features of CEX.IO
CEX.IO key features include:
Margin and Spot Trading. CEX.IO offers trading digital assets with leverage on with their own Broker. Spot trading with place limits and market orders.
Mobile Application. Download CEX.IO to buy, sell, earn and exchange crypto anywhere and on the go. Their app is available both on Google Play and iOS App Store.
Trading API. Traders can automate their cryptocurrency trading with CEX.IO’s reliable and stable API.
Instant Buy using Bank Cards. Credit or Debit Cards are a available option to buy cryptocurrencies on CEX.IO with only just a few clicks.
Multiple Fiat Currencies Available. There are a lot of available fiat currencies to choose from, so traders will do fewer trades and less fees.
Key Advantages of CEX.IO
CustomerSupport
CEX.IO provides an extensive support section to help users understand the platform. If you can’t find the answer to your question, the platform offers an easy-to-use email support form to get the help you need.
Multiple Fiat Currency Choices
At this exchange, you can trade multiple cryptocurrencies with your preferred fiat currency. With no need to convert to Bitcoin first, you can save on fees by making fewer trades.
Suitable for Beginners
CEX.IO offers a user-friendly platform with a clean and clutter-free interface, making it easy to navigate and ideal for beginners. Advanced trading windows are also available, providing a pleasurable experience for all users.
Margin Trade Options
Margin trading options can be a risky form of trading, and is not recommended for beginners. If you’re looking to try it out, CEX.IO Broker offers commission-free margin trading options.
Registered and Secured
The USA’s Financial Crimes Enforcement Network (FinCEN) has registered the company as a Money Services Business. It has also been awarded a Level Two Data Security Standard (DSS) certificate. CEX.IO security is tested as it has never been hacked before.
Key Disadvantages of CEX.IO
Trust in Security
Even if they have never been hacked before, it is essential to exercise caution when using any exchange. No platform is completely secure. To ensure the safety of your funds, it is recommended to not leave any money on the exchange. This is for both fiat currency or cryptocurrency.
Which Coins Can You Buy on CEX.IO?
CEX.IO offers users a wide range of digital assets to buy with either Bitcoin or fiat currency, including 108 cryptocurrencies and 228 trading pairs.
It is a popular platform for buying and trading cryptocurrencies, offering a wide selection of the most well-known coins and tokens. Users can easily exchange their cryptocurrencies or use fiat money to purchase their desired digital assets.
Payment Methods, Fiat Currencies, and Fees
CEX.IO is a great choice for users from many countries, as it accepts a wide range of fiat currencies. Here is the list for their supported fiat currencies:
United States dollar (USD)
Euro (EUR)
Pound Sterling (GBP)
Ruble (RUB)
There are also various payment methods accepted on CEX.IO:
VISA
MASTERCARD
S.W.I.F.T.
ACH
Faster Payments
Sepa
QIWI
Skrill
CEX IO EU Limited offers a wide range of payment methods to make it easy for new users, including card processing services for clients from the European Economic Area (EEA).
They offer competitive trading fees, ranging from 0.25% for market takers and 0.15% for market makers, down to as low as 0.01% and 0% respectively. The fees depend on the amount of crypto assets traded, making it an attractive option for those looking to trade crypto in smaller sums.
CEX.IO Review: Account Verification
Here are the various levels of accounts on CEX.IO:
With each account tier, customers can enjoy additional payment options, higher transaction and withdrawal limits, and other benefits.
For more advanced users, corporate accounts offer additional features. However, we won’t be delving too deeply into these features here.
Verified accounts offer many advantages, so even new users may want to reach this tier.
Basic Accounts
Create an account with CEX.IO and start trading with Visa or MasterCard. With a basic account, you can deposit fiat currency and start trading right away.
The recommended maximum and minimum deposit amounts for individual payment methods vary.
Verified Accounts
Verifying your identity with CEX.IO is easy and comes with several advantages. To increase your daily deposit and withdrawal limits or withdraw fiat funds, users must complete the verification process. In this CEX.IO review, we’ll explain exactly how to do it and the benefits of having a verified user account.
How to Get a CEX.IO Verified Account: Stage 1
Verifying your account with CEX.IO is a straightforward process that requires you to submit some personal information and documents to reach the verified account tier. This is to ensure the company complies with anti-money laundering (AML) and know your customer (KYC) regulations. Read on for our CEX.IO review of the account verification process.
To ensure a successful upgrade of your CEX.IO account, please follow the steps below carefully. Make sure to submit all the required documents in the correct format, as CEX.IO will reject any requests that do not meet their standards. Failing to do so could mean missing out on a great opportunity to buy or sell a cryptocurrency at a favorable price.
1. To complete the process, you must provide information from a valid government-issued identification document, such as a passport, ID card, or driver’s license.
2. Complete the form with your gender, first name, middle name (if applicable), last name, date of birth, place of birth, contact number, and a link to social media profile (optional).
3. After that, users must enter their residential and permanent addresses. If the two are the same, they can check the box labeled “same as residential” which is located next to the “permanent address” fields.
4. To verify your identity, submit a scan or photograph of a few identity documents that meet the necessary requirements:
The issue date must be in the future (document must be valid on the day it is submitted).
Copies of both sides of the document must be submitted.
Scanned images must be in full color and in a high resolution.
Documents must be in either jpg, gif, png, tiff, or pdf format.
The file must be no larger than 15MB.
The photograph or scan must be no older than three months.
Documents must be completed using the Latin alphabet (a, b, c, d…)
How to Get a CEX.IO Verified Account: Stage 2
CEX.IO requires users to submit their identity document, a selfie of themselves holding the document, and a proof of address for verification.
Accepted government-issued identity documents for the above form include national IDs, passports, and driver’s licenses.
To ensure a clear and compliant selfie with your identity document, it is recommended to enlist the help of a friend or family member to take the photo. The photograph must meet the following criteria:
You must look directly at the camera
Use a light or neutral background color
The image must be in full color
No red-eye
No hats, sunglasses, headbands, or bandanas should obstruct the view of your face
The information on the document must be clearly visible.
Acceptable proof of residency documents include photographs or scans that include your address (as stated in the verification form). The following will be accepted as a proof of residency document:
Utility bill (not a mobile phone, TV contract, or printed internet bills).
Electricity bill.
Bank statement.
Tax return, or council tax bill.
CEX.IO allows customers to provide other forms of proof of residency, such as utility bills, bank statements, and government-issued documents, as long as they are not electronic bills, online screenshots, mobile phone bills, or credit card statements.
CEX.IO Review: Advantages of Having a Verified Account
Verified accounts on CEX.IO offer users access to more payment methods, higher deposit and withdrawal limits, and the ability to withdraw in fiat currencies. This makes verifying an account on CEX.IO an essential step for users who want to make the most of their experience.
With an account on a higher tier than basic, you can deposit and withdraw funds using bank transfers and any of the supported cryptocurrencies at CEX.IO.
The higher-tier accounts have no limit on deposits and withdrawals, however, each payment method has its own recommended limits. These limits are not listed here due to their large size.
CEX.IO Review: Who Should Use CEX.IO?
Why CEX.IO is Good for Beginners?
CEX.IO is a great choice for beginners looking to buy and sell digital currency. The user-friendly interface makes it easy to navigate, and the support section has many FAQs to help new traders and investors. Advanced buying and selling options are available, but they are not immediately visible, making the process less intimidating. CEX.IO also offers a secure platform with two-factor authentication, and a variety of payment methods, including credit cards, bank transfers, and cryptocurrency. With its low fees and reliable customer service, CEX. (Clonazepam) IO is an ideal choice for those just starting out in the world of digital currency.
Why CEX.IO is Good for Advanced Users?
CEX.IO is also a great platform for advanced users looking to buy and sell cryptocurrency. It offers a clean and easy-to-navigate platform with all the buying options you’d expect from an advanced platform. It also allows users to trade on a margin (using borrowed money) and has no limits for verified users. CEX.IO provides a variety of different deposit and withdrawal methods, making it easy to spin up huge profits and withdraw them with no trouble. With its advanced features and secure platform, CEX.IO is the perfect choice for experienced traders looking to make the most of their cryptocurrency investments.
Conclusion
CEX.IO is one of the world’s most popular fiat-to-crypto exchanges, offering users multiple digital assets, numerous deposit options, and a user-friendly design. It’s no wonder why CEX.IO has been so successful over the years.
If you’re looking for an alternative to CEX.IO, you may want to consider Binance or KuCoin, two of the most popular cryptocurrency exchanges. Both offer a wide range of features and services, so you can find the right platform for your needs.
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.
China’s national digital currency DCEP (Digital Currency Electronic Payment, DC/EP) will be built with Blockchain and Cryptographic technology. This revolutionary cryptocurrency could become the world’s first Central Bank Digital Currency (CBDC) as it is issued by the state bank People’s Bank of China (PBoC). The goal and objectives of the currency are to increase the circulation of the RMB and its international reach – with eventual hopes that the RMB will a global currency like the US Dollar. China has recently established an initiative to push forward Blockchain adoption, with the goal of beating competitors like Facebook Libra – a currency that Facebook CEO Mark Zuckerberg claims will become the next big FinTech innovation. China has made explicit that Facebook Libra poses a threat to the sovereignty of China, insisting that digital currencies should only be issued by governments and central banks. DCEP is not listed on cryptocurrency exchanges and will not be for speculation of value.
The significance of DCEP is that it’s designed as a replacement for the Reserve Money (M0) system, cutting back the cost and friction of bank transfers. It is suggested that DCEP will alleviate the risks of offline paper money transactions such as anonymous counterfeiting, money laundering and illegal financing. This is because regulators can better monitor digital currency transactions, which some consider will greatly improve financial and monetary supervision. DCEP can also reduce the costs involved in maintaining and recycling banknotes and coins.
Basically, DCEP is poised to become a digital version of the RMB.
Furthermore, the issuance of DCEP is conducive to promoting the internationalization of the RMB and reshaping the current cross-border payment system. This is because prior to the RMB Cross-Border Inter-Bank Payments System (CIPS) going live in early October 2015, RMB cross-border clearing and settlement was mainly done through CHIPS (Clearing House Interbank Payments System) or SWIFT (Society for Worldwide Interbank Financial Telecommunication). However, some consider that both the CHIPS and SWIFT systems have fatal flaws. Firstly, CHIPS is a US company. Whilst SWIFT, in particular, is seen as a cause for concern to the Chinese because due to its foothold in the international banking system, it is almost essential to use SWIFT for inter-bank transfers across countries. Thus whoever controls SWIFT’s data center will have access to information on almost every cross-border remittance, which some in China posit is the US. This is because whilst SWIFT claims to be a neutral international organization, 12 of the 25 directors are either from the US and her allies. Also, its transactional data were found to have been supplied to the US. Hence it is thought that China is being held back by the US via the SWIFT system, and so, in internationalizing the RMB- China requires its own worldwide banking system- i.e. DCEP.
Hence the Chinese consider that it is a requirement to form a new currency clearing network.
According to Chinese media, DCEP is seen as the “3rd Wave” aimed at the US.
A mandate to adopt Blockchain
China has established a countrywide initiative to push forward Blockchain Adoption. President Xi Jinping has mandated that the ‘country’s development of blockchain technology should be sped up ‘ on Oct 24th in front of the Political Bureau. This speech has also been echoed by Li Wei, head of the People’s Bank of China. In April of 2020, China launched the Blockchain Service Network to unify all the Blockchain related projects in the Nation.
China has adopted the “Blockchain, not Cryptocurrency”, whereby the benefits of Blockchain is highlighted. On the other hand, cryptocurrencies that are native to Blockchain are suppressed as Cryptocurrency Exchanges and ICOs are banned in the country.
History and development of DCEP
Development of DCEP started in 2014 with the establishment of a research institute dedicated to digital currencies and looking at how to improve the Chinese Yuan system with blockchain technology. However during 2014 to 2018, the development process slowed down, probably because the decentralised nature of Bitcoin or blockchain is incompatible with the nature of the Renminbi as a legal national currency. Things rapidly picked up towards the end of 2019 however and this was directly attributable to Facebook preparing to launch Libra, particularly as partner members of the Libra Association and the currencies which Libra was to be backed by had consciously rejected China. Hence, feeling the heat of the competition, China’s central bank felt immense pressure to urgently speed up in the global competition towards a digital currency.
Former Vice-chair of the PBoC’s National Council for Social Security Fund announced on 22nd June 2020 that China had already completed the backend infrastructure of DCEP.
Uses for DCEP
DCEP will be the only legal digital currency in China
DCEP is a currency created and sanctioned by the Chinese Government. It is not a 3rd party stable coin such as Tether’s cryptocurrency token “CNHT” which is also pegged to the RMB in a 1:1 ratio. DCEP is the only legal digital currency in China (cryptocurrencies such as Bitcoin are not legal tender in China).
Huang Qifan (Chairman of the China International Economic Exchange Center) said they have been working on DCEP for five to six years now and is fully confident it can be introduced as the country’s financial system. It’s currently being rolled out, with the People’s Bank of China issuing the currency. According to a speech by Huang at the China Finance 40 Forum, “DCEP can achieve real-time collection of data related to money creation, bookkeeping, etc, providing useful reference for the provision of money and the implementation of monetary policies.”
DCEP is not for speculation
China has made it explicitly clear that its National Digital Currency is not for speculation. Mu Changchun, Head of the People’s Bank of China digital currency institute made it as “a digital form of the yuan” and that “The currency is not for speculation. It is different to Bitcoin or stable tokens”. This is to the disappointment of the online community in China, where some netizens commented “So there will be no fun in it” on Sina.com.
It is also not possible to mine DCEP or stake on the DCEP network.
Cross-border payments with m-CBDC Bridge
China has joined forces to explore cross-border payments for digital currencies alongside Hong Kong, Thailand, the United Arab Emirates (UAE), and the Bank of International Settlements (BIS).
According to a joint statement in February 2021, the People’s Bank of China and the UAE’s central bank are taking part in the Multiple Central Bank Digital Currency (m-CBDC) Bridge project initiated by the Hong Kong Monetary Authority and Bank of Thailand in 2019.
The m-CBDC Bridge project will explore the capabilities of distributed ledger technology, through the development of a proof-of-concept prototype. The project ultimately aims to facilitate cross-border, multi-currency, real-time transactions around the clock.
This move aligns with China’s long-term ambition to use DCEP to boost the use of RMB in international payments. While the project is currently an alliance between just Beijing, Hong Kong, Bangkok, and Abu Dhabi, it is strongly supported by the BIS, an organisation owned by 63 central banks.
The announcement also comes mere weeks after China’s joint venture with SWIFT, the dominant network facilitating international payments between banks. The new entity, Finance Gateway Information Service, was registered in Beijing on January 16 with €10 million (US$12 million) as incorporation capital, according to the National Enterprise Credit Information Publicity System, the Chinese government’s enterprise credit information agency.
Special features of DCEP
DCEP is a Centralized Currency
DCEP is a digital currency that is run on a centralized private network – the Central Bank of China has complete access and control of the currency. This is a huge contrast to Bitcoin, which has an open decentralized network where there is no centralized leader. In the case with DCEP, the Central bank of China has the ability to create or destroy DCEP.
NFC Contact based payment
According to Official Sina Blockchain, DCEP will have NFC based payment options that don’t require devices to be online during the transfer. This will be poised as a direct replacement of paper money, as DCEP will be usable in areas without internet coverage. In addition, DCEP doesn’t require the mobile device to be bound to a bank account – meaning the unbanked population will also have access to the digital currency.
With DCEP’s tap payment feature people can transfer money simply by tapping two phones together, without the use of the Internet. So DCEP is not exactly like blockchain either, rather it is their own variant.
China Construction Bank launches DCEP wallet
On 29th August 2020, China Construction Bank (CCB) had a soft launch of the DCEP wallet. Users of one of China’s big four state-owned commercial banks found a DCEP wallet feature was available inside their mobile app. Users were even able to navigate to the digital yuan wallet and activate it through registering their mobile phone numbers.
Finally, users can send/receive digital currency to others by inputting their unique wallet ID or the phone number associated with the bank account.
CCB DCEP wallet
However, CCB has disabled the DCEP wallet feature from public access, but not before it gained huge attention. Users searching for this wallet now will only get an error message saying that the function is not yet officially available to the public.
Tencent to be a major partner of DCEP
Tencent’s Meituan Dianping has been in talks with the research wing of the PBoC on real-world uses for DCEP. Meituan Dianping boasts billions of dollars in daily transactions on their mobile app platform offering services such as food delivery (similar to UberEats), B&B bookings (similar to AirBnb), ride hailing services, bike sharing, grocery shopping and more. Basically for those in China, all your daily necessities can be met on the Meituan ecosystem.
The PBoC’s research wing is also in talks with another Tencent-backed company, Bilibili Inc. which provides video streaming services. So whilst the specifics of the partnership are yet to be finalised, it is likely that such cooperation is going to be huge for the mass use of DCEP in China.
According to Caijing magazine, the pilot institutions for DCEP will be the 4 major state-owned banks i.e. China Construction Bank, the Agricultural Bank of China, Bank of China and the Industrial and Commercial Bank of China. This initial deployment will serve as an official production test for the currency system, where the network and security will be validated. In the second phase, DCEP will be distributed to large fintech companies such as Tencent and Alibaba to be used in WeChat Pay and AliPay respectively.
DCEP will operate on a two-tiered system
The issuance and distribution of DCEP will be based on a two-tiered system.
The first tier would be transactions between the PBoC and intermediaries. These intermediaries would be financial institutions (e.g. the 4 major state-owned banks i.e. China Construction Bank, the Agricultural Bank of China, Bank of China and the Industrial and Commercial Bank of China) and non-financial institutions such as Alibaba, Tencent and UnionPay. Here, the PBoC would issue DCEP to the intermediaries.
The second tier would be between the above-mentioned intermediaries and participants in the retail market such as companies (e.g. retail stores) and individuals. In this tier, the intermediaries that have received DCEP will distribute it to retail participants so that it would circulate through the market e.g. through people purchasing items at stores etc.
The main difference in the issuance and distribution of DCEP compared to traditional cash however is the fact that DCEP would be transferred through electronic wallets, rather than bank accounts.
The central government has mandated that all merchants who accepted digital payments (such as Apple Pay, AliPay and WeChat) pay must accept DCEP. This will give DCEP a large nationwide acceptance in China, with every merchant obligated to participate or face a potential loss of their business license. This will make DCEP the most accepted digital currency in the world.
DCEP red packets to be launched for Chinese New Year
China’s DCEP app has launched a red packet gifting feature in time for the Chinese New Year on 22nd January 2023. The app will allow users to send the red packets i.e. “hongbao” containing DCEP to others. This is based on the Chinese New Year tradition of gifting lucky money during the annual festival. In fact, WeChat Pay and Alipay already have this feature for gifting CNY. However, it is the first time that e-CNY will be gifted in such a way, with hopes that this will further pave the way for the mass adoption of DCEP.
DCEP can be used to pay expressway tolls
On 28th December 2022, Chongqing Expressway Group announced it has completed the installation of equipment to accept DCEP for expressway tolls. From 30th December 2022, DCEP can be accepted as payment for tolls on the Chongqing Expressway. Users will need to download the e-CNY app and then simply present the payment QR code at the toll booth.
PBoC’s financial statistics reports now include DCEP/e-CNY
On 10th January 2023, the PBoC released its annual Financial Statistics Report for 2022. What is worth noting is that for the first time, the PBoC included statistics on DCEP/e-CNY. The Report states that as of the end of December 2022, the amount of digital currency in circulation was 13.61 billion yuan. This equates to around 0.13% of the total balance of yuan (13.61 trillion yuan) in circulation at the end of 2022.
Are people in China using DCEP?
According to a report on 28th December 2022, there has been over US$14 billion worth of DCEP transactions since its launch in 2020. Meanwhile, 261 million users have already set up an e-CNY wallet. However, this is considered low adoption since around 903.6 million people use mobile payments in China, according to a 2021 UnionPay report.
DCEP scams
Mere hours after DCEP has been announced, various (potentially scam) Chinese exchanges have listed IOUs or knock-offs clones of DCEP. It’s important to know that DCEP is currently only distributed to banks working with the PBoC and will not be available for the public. If you want to find out what are reputable exchanges, check out our top cryptocurrency exchanges guide. It is strongly recommended NOT to trade DCEP until it is officially released as there is no guarantee exchanges have access to the digital currency.
Knock-off clones of DCEP are already trading in (potentially) scam exchanges.
How to buy DCEP?
Currently, DCEP is only available to other banks working with the People’s Bank of China. This will eventually open up to the general public in 2020. There are currently no cryptocurrency exchanges that trade DCEP.
Implications of DCEP?
Is DCEP a challenge to the US monetary system?
The overwhelming view appears to be yes, both from the Chinese and the US perspective. According to statistics from the World Bank, 1.7 billion adults around the world use cash because they don’t have bank accounts. However, two-thirds of this population own a mobile phone, which can be used to make monetary transactions. This is what’s been happening in China, where mobile payments such as Alipay or WeChat Pay have more than 1.7 billion customers across China. Currently, the two online payment companies handle more payments monthly than Paypal did in the whole of 2017 (i.e. USD $451 billion). It’s very common in China to see street vendors accepting Alipay or WeChat pay.
Alipay and WeChat being accepted at an ATV rental shop
With the mobile wallet payment infrastructure in place, their cooperation with the PBoC could be the answer to distributing DCEP overseas. This would fit China’s “Belt and Road Initiative”, the aim of which is to build a new trade route connecting Asia with Europe and Africa. The idea is that with DCEP being used by mobile wallets, populations along the Belt and Road can be connected, bypassing existing financial infrastructures completely and giving an opportunity for the unbanked to pay for online purchases and build their savings.
In the US, the government does not see a demand for digital currencies. In a letter from the Chairman of the Federal Reserve, Jerome Powell, he took the view that many of the challenges a digital currency intends to solve do not apply to the US. In his view, the US payments landscape is already highly competitive and innovative, with plenty of digital payments options for consumers. Powell also commented, echoing the sentiments of those US lawmakers opposing Libra, that a digital payment where you would know and be able to track each and every payment would be unattractive for the US.
Whilst the House Committee on Financial Services also sees Libra as potentially raising national security concerns, observers consider the challenge from China is not being taken seriously. Because on the other hand, China is worried that Libra will reinforce the dominance of the US Dollar and is therefore working on fast-tracking the launch of DCEP. And it is likely that China will outrun the threat from Libra.
From a wider perspective, some take the view that DCEP can be used as a weapon against the US in an economic war. This is because as DCEP becomes accepted across the Belt and Road, China will have the power of total surveillance and control over the economic activity of potentially half the world’s population. DCEP will allow China to track everyone’s spending and transactions, and can seize or lock customers’ digital assets in their mobile wallets. We’ve already seen this in China, where together with its “social credit system”, millions of individuals have already been barred from purchasing airline tickets using their mobile wallets.
Appearance on Chinese television debate show “Tiger Talk”
On 29th August 2020, I appeared on China’s Phoenix Television show “Tiger Talk” (一虎一席談). Tiger Talk is one of Phoenix TV’s longest-running shows, each week they feature a debate on a major societal issue or event, and would invite experts, academics and guests to participate in the discussion. I was invited by Phoenix Television as an overseas analyst to discuss the topic of the week, namely, “DC/EP: China’s release of digital currency, will it shake the US Dollar’s hegemony?”. You can watch the episode here.
Guest appearance on Tiger Talk
Implications of DCEP on Bitcoin and cryptocurrencies
In the first instance, it should always be borne in mind that DCEP and Bitcoin/cryptocurrencies are vastly different. Key differences are that DCEP does not necessarily use blockchain technology and that it is a centralised currency under the control of a centralised authority. Learn more about the differences between DCEP, Libra, Bitcoin and Cash.
However, the large scale promotion of DCEP on national television in August 2020 is certainly bracing and preparing Chinese citizens for a digital version of the RMB. The gradual rollout of DCEP will also get the average citizen accustomed to the actual usage of digital currencies.
As a result, many people are excitedly speculating on the possibility of a bridge between DCEP and various existing blockchain projects- with some projects proclaiming they will be the first project to launch on DCEP. However it must be borne in mind that we do not know the full technical details of DCEP, so we do not know how this bridge between blockchain and DCEP will work, if at all. Also, the fact is that China is currently very hostile towards cryptocurrencies, this is mostly due to a number of cryptocurrency scams- such as Plus Token. As a result, the Chinese government have closed several bank accounts found to be involved in cryptocurrency transfers and banned all ICOs, several major cryptocurrency exchanges such as Binance and OKEx and some Over the Counter desks. Hence a lot of cryptocurrency circles and discussions occur underground, such as in private WeChat groups.
In a confusing twist, however, the CCP’s official media outlets 参考消息, Xinhua and CCTV have been pushing out headlines that crypto assets are the best-performing asset year to date. Dovey Wan, Founding Partner of Primitive Ventures has observed that the real intent behind this media push is difficult to interpret, but so far the Chinese cryptocurrency community see this as a signal that crypto has reached its top. Meanwhile, on the Western front on Twitter, people have been seeing this as a bull signal. Currently, without any further moves or news in China about DCEP or on the cryptocurrency front, we can only wait and see what China’s next move will be.
Hmm this is an interesting propaganda vibe from CCP’s official media outlets as “参考消息”, Xinhua and CCTV2
the headline “cryptoasset is the best performing asset YTD” was featured on all avenues, news paper, online media and TV
Will DeFi push governments to finally adopt CBDCs?
Decentralised Finance (DeFi) can be considered the cryptocurrency and blockchain star of 2020, having revived the cryptocurrency market and bringing some much-needed revival and positivity. But what is DeFi? In short, DeFi attempts to bring traditional banking to developing industries, but with a twist: it would be open-source, decentralised, cheap and will cut out the middlemen. (Xanax)
So what can central banks and government do to maintain their dominant status quo whilst benefitting from the technology that DeFi can bring? An answer could be to create a CBDC. In a Forbes article, the author suggests that CBDC would be a positive move for governments since it tokenises money whilst allowing users to enjoy the advantages of cheaper, faster transactions.
The article also touches upon our coverage of DCEP and discusses China’s progress in testing DCEP contrasted with the progress of introducing a CBDC in the US. It suggests that governments and institutions, however, will need to be quick to catch up as new DeFi solutions in payments, mortgage, insurance etc. are being created weekly, and this legion of fintech innovators are growing. These innovators challenge the status quo, and with the mounting advantages of DeFi, there may soon be a real contender vying for the attention of citizen-consumers.
FAQs
Is DCEP backed by Gold?
The simple answer is u0022Nou0022. On a recent episode of Kitco News, journalist Max Kaiser claimed that China will launch a gold-backed cryptocurrency, with the intention of destroying the USD as a reserve currency. He added that China has already amassed as much as 20,000 tons of gold. However this is mere speculation – China has no plans to return to the Gold Standard nor issue gold-backed cryptocurrencies.
Will DCEP be interoperable with other Cryptocurrencies
There are many plans to build gateways that allow the swapping of DCEP to other cryptocurrencies. Projects such as Algorand have stated they want to support DCEP and build possible bridges to swap these currencies. However, as the technical details of DCEP have not been fully revealed, such bridges have not been built yet.
Who can issue e-CNY?
There are 7 Chinese commercial banks that can provide e-CNY. They are: ICBC, Agricultural Bank of China, Postal Savings Bank of China China Construction Bank, Bank of China, Bank of Communications, and China Merchant’s Bank. There are also 2 online banks that can provide e-CNY i.e. WeBank (WeChat Pay) and MyBank (Alipay).
Which Chinese Cities can sign up and use the e-CNY app?
Currently, there are 12 cities and areas in China which can sign up and use the e-CNY app. They are Shenzhen, Suzhou, Beijing Xiong’an, Chengdu, Shanghai, Hainan, Xi’an, Changsha, Dalian, Qingdao, and Zhangjiakou.
Can tourists or non- Chinese locals use DCEP?
No, DCEP is not fully rolled out yet and is only available in select cities in China.
Is China using DCEP?
According to a report on 28th December 2022, there have been over US$14 billion in transactions since the launch of DCEP in 2020 and October 2022. Meanwhile, 261 million users have already set up an e-CNY wallet. However, this is considered low adoption since, according to a 2021 UnionPay report, around 903.6 million people use mobile payments in China.
When will China officially launch DCEP e-CNY?
Whilst there is ongoing DCEP/e-CNY testing on in increasing scale, there is no official announcement as to when and how China will fully roll out DCEP/e-CNY.
Disclaimer: Cryptocurrency trading involves significant risks and may result in the loss of your capital. You should carefully consider whether trading cryptocurrencies is right for you in light of your financial condition and ability to bear financial risks. Cryptocurrency prices are highly volatile and can fluctuate widely in a short period of time. As such, trading cryptocurrencies may not be suitable for everyone. Additionally, storing cryptocurrencies on a centralized exchange carries inherent risks, including the potential for loss due to hacking, exchange collapse, or other security breaches. We strongly advise that you seek independent professional advice before engaging in any cryptocurrency trading activities and carefully consider the security measures in place when choosing or storing your cryptocurrencies on a cryptocurrency exchange.
Radix DLT is a layer 1 distributed system to power the needs of the decentralised finance (DeFi) ecosystem. As DeFi continued to gain traction, the top blockchain networks supporting the market were already overstretched. As it turns out, scalability appears to be a hard nut to crack and hence projects like Radix DLT are formed.
The motivation behind the Radix protocol’s creation is to save the $71 billion lost every year caused by unnecessary friction in the conventional financial system and allow those at the lower and higher levels of finance to make ground by powering a strong DeFi ecosystem.
Check out our video which explains the scaling problems currently faced by Ethereum, and how Radix attempts to solve it.
Taking DeFi to the NEXT LEVEL ? – Radix DLT Protocol overview
Background
The Radix team believes that using distributed ledger technology (DLT) to build a permissionless network will ease the development and accessibility of innovative financial applications. With these applications, we could finally bring down the guarded walls of traditional financial markets.
The project was founded by Dan Hughes, who also happens to be its CTO. Hughes’s former work includes the design of T-Mobile’s first mobile internet platform.
Other team members include the organization’s CEO, Piers Ridyard, as well as CPO, Albert Castellana. The project is being supported by the Radix Foundation.
What is Radix DLT?
The team behind Radix DLT defines the project as the “first layer 1 protocol specifically built to serve DeFi.” The protocol seeks to remove the inefficiencies found in open finance (OpFi) both in the current and future settings. Hughes and his team want to achieve this through:
Re-engineering the consensus mechanism used in popular blockchain systems.
Employing decentralized virtual machines.
Activating on-ledger code.
Building DeFi-bound components and applications.
Incentivizing developers who drive the growth of the new-found financial breakthrough.
Having its developers at the core of driving growth for innovative financial products, Radix provides its support by building highly-secure smart contracts, fast and interoperable OpFi decentralized applications (dApps), engaging and rewarding a distributed developer community, and guarding DeFi composability when scaling dApps on public blockchains.
Radix network
The network is made up of Cerberus (a consensus mechanism), Radix Engine (a development environment), Radix Component Catalog, and developer royalties.
Cerberus
At the heart of the protocol is Cerberus, a re-engineered consensus mechanism which uses a sharded Byzantine fault-tolerant (BFT) solution. This approach enables the system to be parallelized across multiple nodes without losing message complexity and responsiveness.
The sharding concepts allows unlimited network splits or shards. Each shard can represent anything on the platform. By allowing unlimited shards, Cerberus shifts focus from global ordering to partial ordering.
With global ordering, transactions are stored in a predefined chronological order. Partial ordering, at a very basic level, is the opposite of agreed chronological ordering. However, partial ordering has to differentiate between related and unrelated events or transactions when recording them on the blockchain.
Using a “braiding” mechanism, Cerberus uses a new BFT-style system to sign interactions between nodes handling different shards before committing transactions.
Radix Engine
This is Radix’s specialized application layer that powers the interaction between a smart contract’s code with the actual blockchain. The layer powers the project’s virtual machine (VM), which in turn, powers the partial ordering system.
Furthermore, the Radix VM handles concurrency to drive DeFi applications further.
Radix Component Catalog
In other blockchain systems, a developer’s work becomes an active smart contract after being pushed to the system’s users. For Radix, the component catalog handles apps before being registered as “active” on the platform.
In other words, the catalog contains templates ready for use to create additional active components. The new template-based products are called instantiated components.
Developer Royalties
The Radix system uses developer royalties to encourage developers to contribute. However, the project takes a different approach by employing distributed self-incentives such as those found in proof-of-work systems called mining rewards.
Radix Token ($XRD)
The platform has a native token, XRD, which is used to pay for transaction fees. Note that these fees are paid to node runners.
A transaction fee is charged for token creation, messaging, and anything else that requires a change of the ledger state. The fee is burnt upon validation of the operation.
Furthermore, the platform’s tokens have a controlled unlocking mechanism that spans 365 days. With each unlocking, the Radix Foundation’s amount of XRD reduces while those in the public domain increases.
E-Radix (eXRD) Token Sale and tokenomics
Radix Token Sale began on 8th October 2020 and a total of 642mil E-RADIX tokens were available to purchase at $0.039 per token.
There will be an Initial Supply of 4.41 billion E-RADIX as both locked and unlocked tokens. The following chart shows the proposed distribution of the Initial Supply tokens.
Radix proposed distribution
The unlocking mechanism for E-RADIX tokens will start on 17th November 2020. Of the Initial Supply of 4.41 billion E-RADIX tokens, 4.2 Billion tokens will be distributed and of which 99% will be locked and 1% unlocked.
These locked tokens are subject to a price-based unlocking schedule which will allow holders to withdraw the tokens at certain price milestones as follows:
This E-RADIX token is an ERC-20 token. When the RADIX ledger is instantiated, this E-RADIX token will be exchangeable 1:1 for RADIX (XRD) tokens. As mentioned in their key milestones article, the Team are on track for the Radix main net to go live in Q2 2021.
On the mainnet, Radix will create a further 5.19 billion RADIX tokens which will also follow the same unlocking schedule as the E-RADIX tokens mentioned above.
How to withdraw your unlocked E-RADIX (eXRD) and RADIX (XRD) tokens
As mentioned in the previous section, E-RADIX and RADIX tokens are subject to a price-based unlocking schedule. However, to claim these tokens you will need to withdraw them from the unlocking smart contract.
This involves visiting their Radix tokens unlocking website and connecting the wallet that you used to purchase the E-RADIX tokens. If that wallet address has an allocation of EXRD in the unlocking smart contract, you will see details of your total allocation together with the amount which is unlocked and can be withdrawn. Then all that is required is to click the “withdraw” button and follow the steps to withdraw the eXRD.
Make sure to check back when an unlocking event occurs because it will mean you can withdraw more tokens!
For a detailed walkthrough on how to claim your unlocked tokens, click here.
Staking Radix Token
With OpFi, staking, yield farming, and liquidity mining are common occurrences. Radix powers this DeFi subset by allowing users to lock their XRD to earn network emissions and be involved in decision making.
Network emissions are periodically generated tokens that are spread across active staking nodes while considering the amount of staked tokens. Emissions make up for 2.5% of the yearly inflation rate.
There are two approaches to locking tokens:
A user can lock XRD and become a node runner on the network; or
a user can lock Radix tokens and delegate his stake to another node runner, also called a staking node. A staking node has the power to validate transactions.
Radix’s consensus mechanism limits the stake weight per node to 33% to prevent node runners from having absolute power over the transaction validation process.
Network Subsidy
The network subsidy is an additional amount of tokens distributed to transaction validators. The tokens are unlocked by the Radix Foundation every 24 hours and are expected to run for 10 years. However, to earn the subsidy tokens, a staking node has to consistently meet specific factors on responsiveness, bandwidth, and computing power.
Other Radix token categories are the public token grant to support community contributors, the Radix team token grant to support the team, and the stable token reserve that supports stable coins on the network.
Conclusion
The projected growth of the DeFi market requires creating new distributed systems that, if possible, have unlimited scalability. Radix is one such project. With a key focus in leading the migration from centralized finance (CeFi), the project provides hope to the future of OpFi.
From a re-designed consensus mechanism to decentralized self-incentives for developers, the project is keen on ensuring that DeFi overshadows CeFi.
The Radix token supply approach is another key component of the network that shifts from the traditional approach of major blockchain-based systems that power OpFi protocols.
Decentralised Finance (DeFi) series: tutorials, guides and more
With content for both beginners and more advanced users, check out our YouTube DeFi series containing tutorials on the ESSENTIAL TOOLS you need for trading in the DeFi space e.g. MetaMask and Uniswap. As well as a deep dive into popular DeFi topics such as decentralized exchanges, borrowing-lending platforms and NFT marketplaces
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.
Coin DeFi ($COIN) aims to disrupt finance services by democratizing the industry, returning financial sovereignty to the people via decentralized Finance (DeFi). Through Coin Protocol, anyone can make cross-border and peer-to-peer transactions with ease and convenience, without incurring expensive fees. It also offers greater profit-generating opportunities through its stake-based incentive program.
Background
Coin DeFi is a project founded by Damon Nam (also the project’s CEO), who worked with Microsoft for 16 years, and has more than 20 years of experience in the tech industry. The team’s CTO, Byron Levels, also worked with Microsoft for 8 years.
A group of advisors coming from different fields of expertise is supporting the development of the platform. These are professionals who have been known to work on blockchain, artificial intelligence (AI), and marketing initiatives, such as Christina Apatow, founder of FetchyFox, Pete Cashmore, founder of Mashable, Alex Mashinsky, founder of the Celsius Network, and Jeremy Gardener, founder of Augur.
What is Coin DeFi?
Coin DeFi is an Ethereum-based DeFi platform designed to facilitate a peer-to-peer transaction system that implements a community-based governance model. Through the platform, users can conveniently conduct cross-border money transfers, purchase cryptocurrencies, and earn additional profit from their assets through staking.
There are two main components to the Coin ecosystem, namely, the COIN protocol and COIN token.
COIN Protocol
The COIN protocol is the project’s blockchain platform powered by smart contracts. The deployment of smart contracts enables the network to achieve greater performance and scalability while facilitating peer-to-peer transactions without the need for any third-party oversight.
The COIN token is the backbone of the protocol’s economy. It is the platform’s native cryptocurrency asset that primarily functions as a medium of exchange as well as a staking token. It is also required for the execution of smart contracts on the platform and in backing the incentive scheme for the protocol’s liquidity providers. More details on this later.
COIN Exchange
The platform also features a non-custodial, peer-to-peer crypto-assets exchange. COIN Exchange is a cross-chain, decentralized wallet and exchange supported by smart contracts that enable atomic swaps complemented with AI technology.
Some of the digital assets that can be traded in the protocol are Bitcoin (BTC), Ethereum (ETH), and a selection of ERC-20-compliant tokens. Since the platform features cross-chain atomic swaps, a user can trade any token with another digital asset through the platform, even if they belong to different chains.
To facilitate these peer-to-peer trustless, and cross-chain swaps on the exchange, it utilizes Hashed Timelock Contracts (HTLC). Basically, this is a system that requires transaction recipients to first acknowledge payments by way of a cryptographic proof within a defined time period, which is also the same technical framework implemented in Bitcoin’s Lightning Network.
Liquidity
Liquidity is a common concern amongst many decentralized exchanges (DEXs). To address this, COIN partnered with Coinbase to leverage their order books. This is facilitated by a matching algorithm that combines the liquidity in COIN and Coinbase order books.
What the platform earns from transaction fees, they use for their COIN buyback programs and pool deposits. Here, half of what they earn is redistributed to liquidity providers and market makers as a reward. The rest is allocated to buy COIN tokens back to support its supply of liquidity and staking reserves.
Governance Model
The governance of the platform follows the Decentralized Autonomous Organization (DAO) model, one that is community-driven.
In this framework, COIN holders are considered the protocol’s stakeholders. Developers on the platform can propose protocol amendments, upgrades, features, and other changes, which stakeholders have to vote on before they are deployed. If the community doesn’t agree with any proposed modification on the protocol, it can be rejected by the community if it doesn’t garner enough votes.
Coin DeFi’s Native Token ($COIN)
COIN is the platform’s native utility token. Apart from functioning as a medium of exchange, the token can be used to pay for the platform’s transaction fees, staking, and voting. The incentive system of the platform also utilizes COIN tokens as its rewards.
COIN is also a network access token, which means that the token is required to execute smart contracts, represent their voting rights, and compensate liquidity providers.
$COIN can be used to supply liquidity to the platform. Furthermore, there are smart contracts designed to enable staking functions on the protocol. COIN holders only need to deposit their tokens and lock them in smart contracts. In return, they can earn additional COIN tokens as a reward.
The reward for stakers is in proportion with the amount that they staked, prevailing interest rates, and the duration of their stake.
A portion of the COIN tokens deposited on staking smart contracts goes to the platform’s staking reserve. This is used to supply funds that are redistributed to long-term COIN stakers. Around 25% of all COIN tokens in circulation fills the supply of this pool.
The protocol also enables the implementation of a DAO, through a stakeholder model represented by COIN tokens, which enables the community to gain better control over the direction of the platform, including the introduction of new products, amendments to the existing protocol, and other forms of protocol modification, through a stake-based voting system.
COIN holders can deposit tokens in the governance smart contract within the platform. The amount of tokens that holders lock in these contracts guarantee them an equivalent voting power on the platform. For example, a user who has locked 100 COIN tokens gains an equivalent of 100 votes as a consequence.
Conclusion
There are a lot of DeFi projects in the cryptocurrency space today. While Coin DeFi’s objective is a promising alternative away from the traditional financial system, it certainly comes with a lot of other competitors in DeFi offering the same financial products and services as well.
From where the project stands today, it still has a lot to prove when compared with the more prominent DeFi platforms and exchanges. Perhaps its biggest strength is its AI assistant implementation to support platform users, but we have yet to see how that will be developed for the benefit of its user base. As a relatively young DeFi project, how it will grow its own community in the months ahead is going to be a significant factor in assessing how successful the project can be.
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
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.
KeyTango is an investment solution built on Web3 technologies that function as a gateway for DeFi products and services.
While the decentralized finance (DeFi) market is growing, the struggle to keep up is getting bigger for many users. And sometimes, because of so many rug-pulls in DeFi, scam tokens, and underdeveloped projects in this space, people choose to avoid it altogether. KeyTango is a solution to these concerns.
KeyTango offers a one-stop shop for various, reputable, and secure DeFi projects to minimize the risk that a new cryptocurrency holder or trader absorbs. It also offers learning options that can help anyone better understand what DeFi’s underlying concepts and technicalities actually mean.
Background
The growth of DeFi projects has been outstanding, posting 725% growth within just 3 months. However, there are still a lot of investors who are unfamiliar with how the ecosystem functions. Most of the new retail traders find themselves into sketchy projects that claim to be DeFi, only to find out later that these projects cannot actually deliver their promise.
KeyTango is developed with the help of experts from cryptocurrency, financial technology, and investments. The project is also supported by many Outlier Ventures staff members as their angel investors. The goal of the team behind it is to introduce an easy-to-use, Robinhood-like platform, where users can easily trade in the DeFi space within just a few clicks.
What is keyTango?
KeyTango is a Web3-based investment solution that functions as a gateway for DeFi products and services. It is connected with multiple projects on a variety of DeFi markets. This gives users a wide selection of financial tools to choose from if they are looking for ways to maximize the capacity of their assets in making a profit.
KeyTango features a user-friendly interface for any cryptocurrency or DeFi user and focuses on three main goals: discover, learn, and invest.
Moreover, the platform offers its users a tailored recommendation on the products they could access based on the history of their activity on the wallet they linked. This makes it easier for the users to choose which asset fits their profile and easily avail of the products and services in the instruments suggested for them.
Discover
One of the things KeyTango gives to its users is exposure to different DeFi products, such as yield farming and liquidity mining. The platform is backed by a team of investment experts and venture capital managers. More than that, any product posted on the application is carefully curated by MIT and Y-Combinator Alumni, which assures users that the DeFi projects they discover through the protocol are guaranteed of good quality and reputation.
Learn
To address the problem of most cryptocurrency holders who do not completely understand some of the complex DeFi projects that they could potentially benefit from, KeyTango introduced a “Learn” layer on the application. Every technical knowledge that any user would need to know will be made accessible on this part of the platform.
Invest
Once a user has already understood what it means to put their assets in DeFi, from how they can earn yields to DeFi protocols’ underlying risks, they can easily use the platform to start their investments. The process is simple. Users just need to link their cryptocurrency wallet.
Products
Liquidity Pools
Users who are looking to put their idle assets in a liquidity pool can now easily do so using the platform. In this product, a holder of a token can supply them to the liquidity of any supported decentralized exchange (DEX) to earn additional tokens from trading fees.
DeFi projects have their own native utility tokens. Holders of these tokens earn rewards for keeping them and using them to participate in the network’s activities. What yield farmers do is they stake their tokens to DEXs where these utility tokens are traded and supply their liquidity there.
This way, they can also earn rewards in the form of the token that they supplied liquidity to. There are various yield farming protocols in the market today, however, they can be too difficult for others to access because due to the challenges is finding a safe platform. KeyTango makes it a safer opportunity for investors since they have also curated the projects they support on the application.
DeFi Trading
DeFi applications that offer spot trading and leveraged trading functions can be easily found in KeyTango. In these platforms, users will be able to access exchanges powered by automated market makers (AMM). Some of the platforms that are known for this product are 0x, Aave, and Sushiswap.
Derivatives and Other Products
As the DeFi economy continues to grow, KeyTango will also adapt accordingly. The application will be working on providing access to new DeFi opportunities such as NFTs, derivatives, and many others.
TANGO
TANGO is the platform’s native, utility token. It can be used to pay for the protocol’s transaction fees and to participate in the platform’s governance functions. A portion of TANGO’s total supply will also be allocated to the community treasury.
Staking
The platform will have four staking pools: Earlybird Staking, Pro Staking, Expert Liquidity Mining ETH, and Expert Liquidity Mining USDT. They have specific maturity periods and pool sizes which users can see in the interface. Users can also have an estimate of their potential profit as the pools also indicate their APY for each one.
Some of the staking options available on keyTango (Image credit: keyTango)
Conclusion
KeyTango is a project that the whole DeFi space could benefit from. Having assembled a team of experts to curate the projects that will be made available on the platform provides a tremendous advantage. More than the minimization of risks and breaking the psychological barrier that keeps people from adopting DeFi, it also raises the awareness of the public as to what DeFi can offer.
This is why the project is a promising complement to the DeFi ecosystem. Getting people to understand how DeFi works and enabling a way to easily supply their assets in the best projects available can be a huge boost when it comes to achieving wider adoption.
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
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.
eToro is a global multi-asset platform that enables users to trade CFDs of stocks, commodities, indices, and more than 15 major cryptocurrencies, all in a fully regulated and secure environment. This review will discuss eToro online trading platform that enables users to trade a variety of assets, including stocks, commodities, and currencies, with the help of its innovative and user-friendly interface.
eToro is a global multi-asset platform that allows users to trade CFDs of stocks, commodities, indices, and more than 15 major cryptocurrencies. With over 10 million registered users worldwide, eToro is a fully regulated exchange and broker. Unlike other cryptocurrency trading services, eToro does not allow users to withdraw their crypto assets unless they use the dedicated custodial eToro Wallet, available on iOS and Android. With eToro, users can easily trade oil, stocks, gold, and cryptocurrencies with confidence.
eToro is an online broker and social trading platform that has been advocating for Bitcoin since 2007 and offering Bitcoin trading services since 2013. It is the perfect platform for new traders and investors who want to learn and experience the best of both crypto and traditional finance worlds. eToro is a secure and reliable platform that provides users with a wide range of tools and features to help them make informed decisions and maximize their profits. With its user-friendly interface, comprehensive educational resources, and advanced trading tools, eToro is the ideal platform for both novice and experienced traders.
Key Features of eToro
The key features of eToro include:
eToro Social Trading: The most effective social platform for traders is eToro since it provides a distinctive social trading experience. To stay up with your favored assets’ news, you can follow, copy, engage with, and follow your favorite traders. You can even make your own news stream.
Most Effective Trading Platform for Learning: Several instructional resources, including a training virtual portfolio.
Outstanding Customer Service: You can get in touch with the eToro team by phone, live chat, or support ticket if there is a problem. Also, the site is available in over 20 other languages. 24/7 customer service is offered from Monday through Friday.
A Wide Variety of Assets: Along with 16 other cryptocurrencies, there are traditional markets like equities, bonds, currency, ETFs, commodities, and others that you may learn about and trade in.
Mobile Trading Apps: You may quickly access eToro while on the go and execute trades using an Android or iOS smartphone.
Key Advantages of eToro
eToro Usability
eToro is a great platform for starting and novice traders, offering a Virtual Portfolio and ‘demo mode’ to buy and trade cryptocurrencies without staking real money. It also features CopyTrader, which allows users to copy the best-performing traders in various asset markets, such as commodities, stocks, ETFs, and crypto. With CopyTrader, users can choose how much to invest and mirror every action the trader takes, while making adjustments as needed. eToro is a great platform for those looking to get into trading, offering a safe and secure environment to learn and grow.
eToro’s trading platform is designed with the user in mind, offering a user-friendly and easy to navigate layout. The left-hand side of the screen features a control panel, while the right-hand side displays charts, data, and profiles to help you make informed investment decisions. eToro’s mobile apps, available for both Android and iOS devices, allow you to do pretty much everything you can do on the desktop version, including receiving notifications on the go. With its intuitive design and comprehensive features, eToro’s trading platform is a great choice for both experienced and novice traders.
eToro Social Trading
eToro is the social media platform for traders that connects you to experienced traders from around the world. With eToro’s copy trading feature, you can copy the actions of your chosen traders in real time and benefit from their expertise. Monitor their trades and opt-in to copy everything they do. eToro provides indicative prices, and the current market price is shown on the eToro trading platform. With eToro, you can benefit from the knowledge and experience of seasoned traders and make the most of your investments.
Trusted and Established Reputation Within the Industry
eToro is a leading online brokerage site that offers its users the ability to trade cryptocurrencies. US customers can access real crypto assets, while CFD trading is also available. This is a very interesting business move due to the volatile nature of cryptocurrencies, which have a reputation for being unpredictable. eToro has a solid business plan to ensure they can profit from this service, while clients can benefit from CFD-based crypto trading. eToro is a secure and reliable platform that provides users with a wide range of features, including copy trading, social trading, and a variety of educational resources. With its user-friendly interface and low fees, eToro is a great choice for anyone looking to get involved in the cryptocurrency market.
eToro is a broker that offers users the widest variety of cryptocurrency trading options available, both long-term and short-term. This is thanks to their introduction of the “copy trading” feature, which allows investors to copy the decisions of experienced traders. This is a great option for those who don’t have the time or knowledge to research the crypto market, as it allows them to benefit from the expertise of experienced investors. Additionally, investors can pick the expert they want to follow based on their performance and receive a bonus for correct decisions.
Key Disadvantages of eToro
Somewhat High Fees
eToro now charges a 1% fee on all cryptocurrency trades – buying or selling. This fee is included in the price when a user opens or closes a position and is charged for the ’round trip’ – meaning a 1% fee on the purchase and an advance of 1% for the eventual sale of the coin. The only outlier is Terra Classic (LUNC), which has an operational fee of 0.6% added to the standard 1%. eToro no longer charges overnight – or rollover – fees on cryptocurrency, however, 79% of retail investor accounts lose money when trading CFDs with this provider, so it is important to consider whether you can afford to take the high risk of losing your money.
Can Only Deposit Via Fiat Currency
eToro users can deposit fiat currency into their account using credit/debit cards, wire transfer, and popular e-wallets like PayPal, Skrill & Neteller, Klarna, and iDEAL. All fiat funds held by eToro are in US dollars, so a conversion fee may be incurred. The minimum first-time deposit ranges from USD 50 to USD 10,000. Withdrawals are also available via credit/debit card, bank transfer, and PayPal, with a flat fee of USD 5 for every withdrawal. Additionally, users can transfer cryptocurrency directly to the eToro wallet and hold and withdraw supported cryptocurrencies.
Why eToro?
eToro is a leading cryptocurrency brokerage firm that offers a wide variety of cryptocurrencies for trading. They guarantee security and a fluid user interface experience, with no hidden fees and good transaction rates. eToro has the most cryptocurrencies available for trading out of any other brokerage firm, making it a great choice for those looking to invest in the cryptocurrency market. They also offer a variety of other features, such as copy trading, which allows users to copy the trades of experienced traders, and a social trading platform, which allows users to connect with other traders and discuss strategies. With its wide range of features and benefits, eToro is a great choice for those looking to invest in the cryptocurrency market.
Conclusion
eToro is a revolutionary startup that has changed the way people trade stocks and cryptocurrencies. With its innovative “copy trading” system, investors can potentially earn more revenue without having to do anything but register and set up their portfolio. Experienced investors can take advantage of this system to boost their earnings, while newcomers should start slow and not invest more than they’re willing to lose. Projects like Follow Coin have tried to follow the same path, but have been much less successful due to a lack of experience and professionals in the field.
Disclaimer: Cryptocurrency trading involves significant risks and may result in the loss of your capital. You should carefully consider whether trading cryptocurrencies is right for you in light of your financial condition and ability to bear financial risks. Cryptocurrency prices are highly volatile and can fluctuate widely in a short period of time. As such, trading cryptocurrencies may not be suitable for everyone. Additionally, storing cryptocurrencies on a centralized exchange carries inherent risks, including the potential for loss due to hacking, exchange collapse, or other security breaches. We strongly advise that you seek independent professional advice before engaging in any cryptocurrency trading activities and carefully consider the security measures in place when choosing or storing your cryptocurrencies on a cryptocurrency exchange.
YoBit is a cryptocurrency exchange launched in 2014 and is one of the oldest in the market. YoBit’s philosophy is to keep things simple. The Exchange only offers spot trading on its relatively intuitive and uncomplicated platform. The exchange is popular around the world, with an especially large community in Russia and Europe. However, YoBit does offer some unique non-trading related features such as investment plans, a dice game, and ongoing opportunities for users to earn free cryptocurrencies.
Registered in Panama as YoBiCrypto Corp, the Exchange was the creation of a group of European developers with a passion for cryptocurrencies. According to CoinMarketCap Yobit has a trading volume of more than USD$50 million every 24 hour
In this review, we look at the various features of YoBit exchange and give users a guide on how to get started. We also look at whether YoBit is a reliable and safe choice for cryptocurrency traders in 2020.
Key Features
No frills approach: YoBit distinguishes itself from its competitors by being simple. This notion of simplicity can also be seen in its interface. Once you log in all the necessary features and information is displayed clearly and is easily accessible in 1 click.
No KYC required: No KYC procedures are required for registering an account and they do not collect any data from users. The Exchange’s aim is to protect users’ anonymity and respect their privacy and confidentiality. New users can register with their email and start trading within minutes.
Unique features: In addition to spot trading, the Exchange has unique features such as InvestBox, a dice game, FreeCoins, “YoPony” and collaboration with CryptoTalk forums, etc.
Let’s take a look at their major unique features in turn.
InvestBox- a simple how-to guide
According to YoBit, InvestBox allows users to grow their portfolio and potentially earn from 0.1% up to 7% per day. The purpose of InvestBox is to bridge the gap between cryptocurrency traders and developers by helping the latter popularise their coin, and so traders can benefit from its popularity. The Exchange claims that payments from these plans are from a special fund which is replenished from commissions earned by the Exchange. Users can withdraw their funds from the plans at any time and withdrawals are not subject to any commissions payable to the Exchange.
Plans differ in terms of what coin you can earn, the minimum investment amount and time required, and the actions required to obtain the payments. As seen in the below image, each InvestBox plan has its own “rules” as follows:
Coin: The type of cryptocurrency to be invested
Percent: The percentage you will get
Period: When you will get your payments e.g. daily, weekly etc.
MinInvest: Miniumum investment required
MaxInvest: The maximum you can invest
Action: What actions are required to get the payments. Taking YOMI in the below image as an example “YOMI/BTC: 10 buy trades + no YOMI sells + BTC: 10 ds” means that users: (1) must buy YOMI tokens 10 times on the YOMI/BTC market; (2) cannot sell their YOMI tokens until payment is received; and (3) play the DICE game 10 times (though it doesn’t matter if you win or lose).
Status: Whether the plan is active or not.
Dice game and YoPony
A popular feature on the Exchange is their dice game where users guess if an upcoming dice roll is going to be less than 48 or more than 52. As mentioned in the InvestBox section, some plans may require users to play this game for a specified number of times. YoPony is a crypto racing game, where you guess which horse will win a race.
FreeCoins- how to earn cryptocurrencies on YoBit
To encourage more people to trade on YoBit, the Exchange gives out free coins for users who share the Exchange on social media. All users need to do is to choose which free coin they would like to get and click “Get free coins”.
Then in the pop-up window choose whether you want to make your post on Twitter, Facebook or Vkontakte. You will then automatically be directed to your social media website to put up the post. Afterwards you will need to paste the link of your post into the address bar and press “Check” so that YoBit can verify you have posted.
Pop-up window will prompt you to post and insert the address of the post for checking
YoBit CryptoTalk campaign- another way to earn free cryptocurrencies
Yobit also has reward campaign with CryptoTalk.org, a cryptocurrency forum where people can earn Bitcoin by engaging in discussions. YoBit will reward users with 0.00001 BTC per post, for up to 30 posts per day. Once you have posted, you will need to enter your CryptoTalk UID into the CryptoTalk campaign page for your posts to be verified. After verification by the moderators on the CryptoTalk forum, rewards will be given to eligible posts and you will be able to send this directly to your BTC balance on the Exchange.
Supported cryptocurrencies
YoBit offers trading for over 442 cryptocurrencies, more than twice as many as competitors such as Binance exchange. These include some altcoins which are relatively unknown, potentially making it one of the only options available for serious altcoin traders.
What also makes YoBit exchange stand out is its number of trading pairs available. It has more than 4,600 trading pairs making it the most trading pairs of any exchange in the market according to CoinGecko.
Supported currencies and payment methods
YoBit accepts both USD and RUB (Russian Ruble). As for payment methods, the Exchange accepts Visa/Mastercard, AdvCash, Payeer, Perfect Money, Capitalist, Yandex and cryptocurrency deposits.
YoBit Fees
Deposit and withdrawal fees
Deposits onto the Exchange are free of charge for most major payment methods such as Visa/Mastercard or cryptocurrency deposits. For withdrawals however the fees can range from 0.0005 for cryptocurrencies, to 7% (USD) using Payeer or USD $6 and 5% using credit cards.
YoBit charges 0.20% for every buy and sell order on the Exchange. Compared with its competitors, this is generally average. Some exchanges such as KuCoin or OKEx charge a bit less at 0.10%, whilst other exchanges such as Coinbase Pro charge a lot more at 0.50% plus other fees.
Supported countries
The Exchange is available to users from all around the globe, including the USA. To cater for its international clientele, the Exchange supports English, Russian and Chinese languages. One of their unique features is its live chat in the sidebar where you can chat with other traders in real time. The live chat is available in English, German, Arabic, Chinese and Russian.
Security- Is YoBit safe?
YoBit has a good track record of no hacks in the 6 years it was launched. The Exchange has the following features to protect its users.
Email login confirmation: After logging into the Exchange, they will send you an email letting you know you have successfully logged in together with details of your login such as your IP address, location and login time. This means you will be notified if someone else has wrongfully logged into your account.
2-Factor Authentication (2FA): Users can set up the Google Authenticator app on their phones to be used with the Exchange. So when a user makes a deposit or withdrawal, they would also be required to type in a one-time password to complete the request.
Freeze withdrawals: A unique feature, the freeze withdrawals function can prove to be very useful if you suspect your account has been hacked. In the Settings page, you can select “Freeze withdrawals from my account (I suspect hacking)”. Upon selecting this option, any withdrawals from the Exchange would be frozen and users can only enable withdrawals again by going through customer support.
Insurance fund: In the Support page, there is an option to request compensation from an insurance fund.
Not many details are known about the insurance fund. But from our research, the Exchange did suffer a 51% attack in January 2019 and according to YoBit, the losses suffered were covered by the Exchange’s insurance fund.
Est 130417 ETC coins lost because of 51% attack. It will be covered from Yobit Insurance fund, ETC deps/withdrawals enabled. Hacker’s ETC address: https://t.co/PQj2rDxkrU IP’s: 2001:67c:2660:425:24:0:0:88e , 2001:67c:2660:425:b:0:0:cd7 (VPN)
The Exchange really takes it to the next step with its simplicity. So much so that there are virtually no tutorials or instructions available on the Exchange or elsewhere. So if users are confused about the Exchange’s features and functions, they will have to look up external websites, figure it out themselves or ask the active and helpful YoBit community. However since the interface is very simple very self-explanatory, most experienced traders should be able to master using YoBit fairly easily and maybe come to appreciate its no-frills approach.
How to register for a YoBit account
Registration is staightforward. On YoBit’s main page, simply click “Registration”, fill in the form and click “Register”.
Afterwards you will receive an email asking you to click on their link to activate your account. On the webpage, select “Activate” and you are all set!
The registration process was very simple and we were able to register for an account in less than 10 minutes.
How to deposit and withdraw cryptocurrencies on YoBit
Deposits
On the top bar, click “Wallets” to view your balances. Choose which coin to deposit and click “+”. A popup window will appear showing your cryptocurrency address and a QR code. From there either enter the address or scan the QR code with the wallet you want to send from.
Withdrawals
Withdrawals on YoBit are just as simple. Click on the “Wallets” page on the top bar, choose which coin to withdraw and click “-“. A popup window will appear for you to fill in your withdrawal address and the quantity you wish to withdraw. YoBit will automatically calculate the withdrawal fees payable and show the amount that the recipient will actually get. Then click “withdrawal request”.
Customer support
YoBit has encountered some controversy with users complaining that the Exchange is slow to respond to requests on their support page. From using the Exchange we can see that they have taken this comment on board and tried to make improvements. YoBit customers can get support through the following means:
Send a customer support ticket on their Support page;
Ask the community on the live chat on the Exchange’s sidebar;
On their telegram chat, PM an admin or ask in the main page; and
Contact their official support account @YbtSP on Telegram (currently in test mode).
To test out their customer service, we tried asking for help using all the methods mentioned above. We got a response from the Support page in under 10 minutes, which is quite impressive. We also got replies from other YoBit users on the Telegram community and the live chat who were all very helpful.
Conclusion: Is YoBit a safe and legit exchange?
YoBit certainly does live up to its repuation of keeping things simple. Here’s some pros and cons of the Exchange based on our research and user experience.
Pros
Compared with other exchanges, they have a long history and a track record of no hacks.
Signup is simple and can be done in 10 minutes.
Clean and relatively intuitive interface.
Huge number of trading pairs making it a good option for serious altcoin enthusiasts.
Very responsive customer support.
Cons
Only offers spot trading and other non-trading related functions such as InvestBox or FreeCoins.
Virtually no information about themselves or tutorials on their website. We had to find information about the Exchange from external sources, or figure it ourselves.
All in all, YoBit is suited for users who have at least some experience with cryptocurrency trading or serious altcoin enthusiasts. YoBit does have a good security record with the usual security features expected of any legitimate exchange. YoBit is certainly an exchange worth looking into.
Frequently Asked Questions (FAQs)
Where can I find YoBit on social media?
YoBit can be found on Twitter and Telegram, where they have one of the largest communities with over 77,000 members on their English channel. The Exchange also has a Russian Telegram channel.
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.
We’ve been closely following the events involving SushiSwap and its founder “Chef Nomi”. This article will not be making any comments or conclusions on Chef Nomi’s actions or how SushiSwap is or should be run. This article is simply an explainer on what SushiSwap is and how to use the platform. As with all yield farming projects, SushiSwap involves a huge amount of risk. Anyone intending to participate in yield farming should do full research and consider carefully the risks involved beforehand.
What is SushiSwap ($SUSHI)?
SushiSwap is the newest decentralised finance (DeFi) liquidity pool platform. With SushiSwap, people can add their tokens into the liquidity pools and earn. In this article, we’ll have a look at the Sushi Swap platform and how to participate in the liquidity pool. Anyone can participate.
Sounds interesting? Let’s dive into it.
Summary
SushiSwap is a platform that allows anyone to provide liquidity. In return, the person gets rewarded with token(s) and SUSHI tokens.
As of September 4, 2020, there are 1 billion dollars of locked liquidity.
Possibility of very high APY (up to 1,000%) on some liquidity pools. You can check the current yields on SushiBoard.
Why is SushiSwap so popular?
Sushi Swap markets itself as an “improved and community-friendly” Uniswap. Unlike a traditional exchange like Binance where they employ market makers, SushiSwap is a community-oriented platform where users provide liquidity. In return, they get rewarded. Indeed, the users are the market makers.
SUSHI token
SUSHI tokens are given as rewards for liquidity mining. The token allows its holders to participate in the governance of the platform and entitles them to a portion of the fees paid to the protocol by traders. For the governance of the platform, SUSHI holders can submit a SushiSwap Improvement Proposal (SIP) which token holders can vote on with their tokens.
Of course, some people also speculate on the prices of SUSHI and the token can be traded on major exchanges such as Binance, FTX and OKEx exchanges.
Advantages of SushiSwap
There is no KYC (Know Your Customer) policy. This means anyone can trade and contribute to the liquidity pools. The platform is permissionless, meaning anyone can contribute millions of dollars without asking for permission.
Earn tokens from Sushi Swap. SUSHI is Sushi Swap’s native token. When you contribute to the liquidity pool, you earn sushi tokens. You can exchange SUSHI for ETH.
Sushi Swap model: 0.25% go directly to the active liquidity providers and 0.05% get converted back to SUSHI and is rewarded to sushi holders.
Sounds interesting? Let’s visit Sushi Swap’s home page.
SushiSwap beginners guide
When you first arrive on Sushi Swap’s home page, you’ll see this:
Click on “Unlock Wallet” or “See The Menu”, either way you will need to connect your ETH wallet in order to this platform.
Sushi Swap has the option to use MetaMask, WalletConnect or many other non-custodial wallets. Pick the one of your choice.
Connect wallet
Give permission for Meta Mask or Wallet Connect to connect to Sushi Swap. Once you’re connected, you’re ready to add your tokens into the liquidity pools. (hummingbirddental.ca)
You’re presented with various liquidity pools (LPs). Each liquidity pool has a different annual percentage yield (APY).
In this example, I’ll contribute to the ETH-USDT pool. I add my USDT into the liquidity pool. In return, I’ll get a percentage of USDT and SUSHI tokens. Think of Sushi Swap as a “community revenue share” model.
To contribute to the liquidity pool, click “Approve USDT-ETH UNI-V2 LP” and give your Meta Mask permission to move your tokens into the liquidity pool.
Now what? You wait. The “SUSHI earned” box should populate with your earned SUSHI. You can withdraw your SUSHI token anytime by clicking on “Harvest”.
2020 roundup and new roadmap!
Many things have happened within the Sushiswap ecosystem in the last months: it is now time for a quick recap and to look at what the future will bring to this project!
The number of all the partnerships finalized by the protocol is countless, but one of the most important ones, if not the most important, is certainly the merger with Yearn. The news also sparked controversies: Sushiswap was still considered a sort of “copycat” of Uniswap by some, and when Andre Cronje (Yearn’s father) wrote an article on how it is difficult to build in Defi and how conversely it is easy for anyone to just copy other people’s code, this wasn’t seen as really coherent. The collaboration was born to allow the two teams to cooperate on Deriswap.
Nevertheless, Sushiswap has been evolving so much that, according to Mira Christanto (one of Messari’s data analysts) they have “put their past behind” and, not being backed by Venture Capitals, they can move faster than competitors. January has seen a real growth in Sushiswap’s TVL (now at $2.1 billion), mostly at the expense of Uniswap’s.
Among the important milestones in 2020, we find Onsen, the new Sushiswap liquidity mining incentivization program which replaces the old Menu of the week. It brings communities together into the ecosystem and allows voted tokens to become accredited and participate in the mining program. The website also has a new layout of and a lite version.
2021 Roadmap
As the new year has already begun, it is also interesting to have a look at what Sushiswap is working on for 2021. The team released a long and detailed roadmap in early January. Notable upgrades are the following:
Mirin will be the new upgraded version of Sushiswap’s V3 protocol. It will include many new features like franchised pools, double yield, dynamic yield rebalancing, and many more as you can read here.
Bentobox (which should have launched in January) was born in the team’s mind as a new Lending Platform. While they were was working on its code though, it became something more. In simple terms, it will be a single vault that holds all tokens for any protocols and future extensions. It will support several oracles and it will also benefit all the $SUSHI holders.
Miso (Minimal Initial Sushi Offering) will be a sort of token launchpad, designed to drive new projects’ launches on the platform. It will include crowd sale options, IDOs (Initial Dex Offering), auctions, and more. We could think of it as something similar to Binance’s launchpad.
As Ethereum fees are and will keep growing in the next future until ETH2 will be a reality, most platforms are studying alternative solutions for their users such as Layer 2 possibilities. Unlike Uniswap, which is working on Optimistic Rollups, Sushiswap decided to move in sync with the greater Yearn ecosystem and thus will probably offer Zk-rollups options.
Together with all these big news, Sushiswap is also planning to move to a new domain as the old one, in their view, is not enough to describe the diversity of the platform anymore. A transition to a fully decentralized governance structure is also planned by the end of 2021. Last but not least, Sushiswap has created a proposal page for people to express their ideas on what they would like to see on the platform. Everyone can be a chef is the place where you can voice your opinion if you like to suggest new ideas.
FAQs
Is it risky to provide liquidity to SushiSwap?
The pool could get hacked if the code isn’t audited. There have been cases of hackers draining funds from smart contracts. It helps if the code is audited by a reputable firm. In the case of SushiSwap, it has been given a “security review” (not an audit) by Quantstamp. 10 issues were identified but they do not appear to be fatal. Subsequently, Peckshield had completed an audit on SushiSwap. They found no critical or high severity issues relating to business logistics but 2 high severity opsec issues that need to be fixed through extra care with deployment.
What is the reward model of Sushi Swap?
0.25% go directly to the active liquidity providers and 0.05% gets converted back to sushi and is distributed to active SUSHI holders.
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
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.
