Boxmining v2

Category: Decentralised Finance (DeFi)

Decentralized Finance (DeFi) is a sector within the cryptocurrency and blockchain space which aims to provide a decentralized version of the products available in traditional finance- without central control and at a lower cost with potentially higher returns. These products include loans, interest-bearing deposits and borrowing services.

The advantages of decentralized finance are that it addresses the problems we have with the traditional banking system. For example, decentralized finance protocols are controlled by multiple people, and all participants are required to abide by the rules written into the smart contracts underlying the protocols.

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

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

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

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

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

    Background

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

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

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

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

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

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

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

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

    Paralink Network
    Paralink Network (Image Credit: Medium)

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

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

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

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

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

    Simple Ingress

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

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

    Trusted Ingress

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

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

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

    On-chain Security

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

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

    Para Token ($PARA)

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

    PARA tokenomics

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

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

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

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

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

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

    Conclusion

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

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

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

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

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

    Tutorials and guides for the ESSENTIAL DEFI TOOLS:

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

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

  • InsurAce Protocol: Insuring decentralised finance?

    InsurAce Protocol: Insuring decentralised finance?

    The cryptocurrency industry has enjoyed rapid growth and adoption thanks to its accessibility and open-source nature. Different people from all over the world can participate freely in crypto projects, with the option of anonymity. And thanks to this ease of access, the total locked value (TVL) in DeFi grew to over $3 Billion in 2020 and $44 billion in 2021, according to DeFi Pulse.

    However, as an industry based majorly on the internet with trillions of liquid digital assets, it is no surprise that it makes the perfect attraction for hackers hoping to run off with a score.

    Luckily, in the decentralized finance (DeFi) corner, liquidity providers (LPs) can still protect their investment through insurance protocols, each of which is armed with their unique solutions – one of the more promising ones is InsurAce.

    Background

    InsurAce was created by Oliver Xie, a cryptocurrency enthusiast and computer programmer. The decentralized insurance protocol was developed during the peak of DeFi growth in the third quarter of 2020, launching officially in October of the same year.

    The protocol is headquartered in Singapore, led by Oliver’s vision and steadfastness. After just two months of existence, the protocol was able to raise $1 Million in seed funding, from renowned institutions such as DeFiance Capital, Signum Capital, and Parafi Capital. Later, in February 2021, and an additional $3 Million was raised during its strategic round.

    They currently run a tight team, with a few experts and professionals at the helm of affairs, most of which are based in Singapore.

    What is InsurAce?

    InsurAce is an insurance protocol that offers DeFi assets a reliable, decentralized, and flexible coverage. Users are also able to enjoy low premiums and a sustainable investment return.

    InsurAce’s flexibility is its major highlight as it gives users the ability to cover their assets with a portfolio-based product design that optimizes cover cost. Users would also benefit from their cross-chain coverage and wallet accessibility, along with the protection of their assets and investments.

    How Does InsurAce Protocol Work?

    As both a DeFi and Insurance protocol, InsurAce runs two different arms that work synergistically to benefit all parties involved. As a decentralized platform, each role is filled by its users, each of which are rewarded with the INSUR token.

    The protocol also offers a more streamlined experience with its permissionless feature, where users can enjoy full anonymity without the KYC process that complicates other DeFi Insurance platforms.

    The Two Arms of InsurAce Protocol

    The first part of the investment arm involves contribution by a first-party known as the investor. As the name suggests, investors finance portfolios, each portfolio with its own risk/reward ratio which investors can choose from.

    The next party is the insurer, and these are participants that stake assets in the mutual insurance pool created by investors. The more direct class of users are the “insured” – they are the insurance customers, and they get the benefit of buying insurance covers, either in single or multiple pools.

    2 Arms of InsurAce Protocol (Image credit: InsurAce whitepaper)

    Features

    The InsurAce protocol will be responsible for providing a supporting architecture for the smooth operation and integration of the arms. To start with, the protocol will function to ensure adequate evaluation of risk to manage losses.

    Two risk assessment procedures exist. One with experts analyzing potential assets and pools with thorough auditing and code analysis. After which, a community assessment is carried out by volunteer members for further analysis and to come up with a risk score.

    It will also be in charge of claim requests, for insurers to check out their buys.

    More important, however, is the availability of liquidity for all users. To ascertain this, InsurAce plans to develop an enriched product line that is capable of covering a diverse number of DeFi protocols. By providing insurance services to multiple DeFi projects the platform retains its flexibility, remains open to opportunities while keeping tokens moving.

    The insurers would enjoy access to a wide range of asset pools in addition to considerably reduced cover costs and zero premium protection.

    SCR Mining and Governance

    When users bring in capital to stake into different mutual pools, they are rewarded with INSUR tokens as incentives. This process is known as Mining, and it offers rewards based on the magnitude of user contribution to the platform.

    As with most other DeFi projects, a Decentralized Autonomous Organization (DAO) would be responsible for managing and regulating the activities of InsurAce protocol. To be eligible to become a member of the DAO, users must own INSUR Tokens.

    An advisory board made up of InsurAnce employees and independent experts will oversee the affairs of the DAO community, provide guidelines for its operation, and provide a contingency plan if the decentralized voting mechanism should fail.

    INSUR Token

    The INSUR token is the standard token on the InsurAce platform. It is based on Ethereum’s ERC20 standards and serves a variety of utility functions.

    As a governance token, it confers voting rights on its holders. Users who have the INSUR token can propose changes, vote on issues and proposals, and participate in claim assessments on the protocol. When a token holder participates actively in governance, he becomes entitled to a share of the fees generated on InsurAce.

    The token also incentivizes involvement in all the different roles available on the protocol. It serves as the reward for mining through capital provision, liquidity support, staking in investment pools and products.

    There will be a total of 100 million INSUR tokens in supply. And it is planned to be launched through a Liquidity Bootstrapping Pool (LBP) on Balancer from March 15th to March 17th, 2021. The proposal would see a total of 6,675,000 tokens vested after the LBP ends – with about 45% of the total token distribution kept in SCR mining reserves.

    Conclusion

    The sheer amount of fortune going into DeFi project and associated mining mechanisms is too much to leave to the whims of hackers and project developers. The impressive progress made by pioneer insurance projects like Nexus Mutual and Augur should not be taken for granted either.

    However, these insurance protocols are still scarce in numbers and hardly enough to cover the ever-growing need of the DeFi sector.  Which makes it difficult not to root for a platform like InsurAce that puts everything in place, taking the best out of existing protocols and adding a fresh detail.

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

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

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

    Tutorials and guides for the ESSENTIAL DEFI TOOLS:

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

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

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

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

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

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

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


    Background

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

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

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

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

    What is Glitch?

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

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

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

    How does Glitch Work?

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

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

    Consensus Mechanism

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

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

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

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

    The Vault 

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

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

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

    Token Wrapping

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

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

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

    Glitch Token ($GLCH)

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

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

    Glitch GLCH Token Distribution

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

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

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

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

    Glitch Rewards Program

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

    Glitch DAO

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

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

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

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

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

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

    Conclusion

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

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

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

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

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

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

    Tutorials and guides for the ESSENTIAL DEFI TOOLS:

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

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

  • Union Finance ($UNN): tailored protection from DeFi risks?

    Union Finance ($UNN): tailored protection from DeFi risks?

    Union Finance is providing a tailored solution which will provide protection from risks and reduce costs in decentralised finance (DeFi).

    What is Union Finance?

    Union Finance is a technology platform that combines bundled protection and a liquid secondary market with a multi-token model. The Union platform guarantees full-stack DeFi protection to all users as it seeks to reduce the risks and cost within DeFi ranging from Layer-1, smart contract, transaction completion risks, and exposure.

    Since its introduction, Union finance has had a considerable impact in the cryptocurrency space and is composed of experts with years of experience in their respective sectors. Union’s protocol offers a unique combination of traditional insurance and the blockchain’s tremendous efficiency through its broad coverage and costs-savings model specific to the DeFi sector’s needs.

    Similarities With Traditional Insurance

    Furthermore, Union’s algorithm addresses the apparent break between DeFi and CeFi unlike any other blockchain-based solutions as it provides protection to various layers of coverage and segregated underwriter exposure, with a multi-token protocol that cleanly separates governance from the market dynamics of protection buying and writing.

    Similar to traditional insurance companies, the Union Protocol prides itself on total protection and coverage under their blockchain-based bundled insurance packages. However, the platform takes it further, by utilizing the blockchain concept of decentralization, freeing the platform from “members only” models and KYC requirements. Furthermore, Union offers an effective governance process to safeguard the validity of claims and the solvency of pools to meet coverage applications.

    DeFi-Related Risks

    Union’s team also offers a secondary market enabling the management of DeFi-related risks which facilitates the protection of traders and protection writers within the DeFi ecosystem. Additionally, this frees up capital and distributes risk, allowing the DeFi sector to scale more efficiently while reflecting the current market trends.

    The blockchain solution has a distinct economic model that has sustainably grown the decentralized ecosystem, along with a capital and pricing model that balances the supply and demand curves while adapting dynamically to economical conditions set by the market and keeping transparent reporting of financial and risk key performance indicators (KPIs) to create trust and increase adoption of the protocol.

    Three-Token Model

    Overall, Union Finance’s DeFi protection platform is managed through a three-token system comprised of the UNN, uUNN, and pUNN tokens.

    UNN Token

    UNN is the core token of the financing platform as it is used for governance purposes. UNN users are granted voting rights within the company, giving them influence on protection claims and related conflict resolution protocols, adjusting risk parameters, and adjusting incentive programs, etc.

    uUNN and pUNN Tokens

    As for the uUNN token, it is used by clients of the platform and protection buyers enabling them to impact the platform’s protection policies. The pUNN token on the other hand is given to writers of the protection, representing a percent share of the protection pool that the writer is powering.

    uUNN and pUNN tokens are only available on Union’s secondary market, which guarantees the separation of governance tokens from protection tokens, preventing a conflict of interest within the platform.

    Additionally, through the three-token based system, Union finance enables users to benefit from a dynamic and unique pricing model for the protection premium that provides an efficient and real-time price discovery mechanism, as well as a capital model that adjusts leverage, which maximizes solvency of protection pools while providing returns through surplus capital. Furthermore, a multi-layer governance, claim, and challenge mechanism ensures all operations are handled fairly and transparently.

    Key Components of Union Finance

    Buyer Protection

    A protection contract is automatically generated as a buyer purchases a protection product(s) on the platform. Upon purchase, each contract specifies the:

    • type of protection – this identifies which protection pool writes the protection and in return, earns the premium;
    • the cover amount;
    • the term of the insurance (start date/end date); and
    • the premium level.

    The purchase of the protection contract is confirmed when buyers receive uUNN tokens which demonstrate their right to the token protection policy. Then, the protection protocol will begin later after the premium is deposited or the start date of the protection contract. Buyers who stake UNN tokens through reliable decentralized exchanges (DEX) like Uniswap will receive a discount in the protection premium.

    Capital Model

    The capital model is a fundamental component that optimizes the leverage of protection writers, locking capital to meet solvency based on stringent standards used in insurance and finance while providing economic incentives that attract protection writers and help fund ecosystem development. Additionally, protection writers can use their pUNN tokens and stake for more UNN, enabling them to share in a small portion of UNN that accrues every block.

    UNN Staking

    UNN holders can stake their holdings to earn additional UNN through liquidity mining, which is split into two distinct categories; liquidity providers and locked tokens for governance purposes. Union will soon allow UNN holders to provide liquidity on different DeFI ecosystems such as Uniswap. As for the second category, UNN users will have control over decisions regarding the future of the UNN token through the decentralized governance process. 

    Conclusion

    Union Finance’s arrival to the DeFi sector came at a time when the potential risks and problems DeFi users have been facing on a daily basis have become too overwhelming. Thankfully, the platform simultaneously manages to resolve those risks through its distinct ecosystem and protection products.

    Union Finance protocol has the potential to elevate the DeFi sector by further impacting and empowering investors within the blockchain, as it decreases the barriers to entry for retail users and lays the foundation for institutional investors, thereby creating a trustworthy DeFi ecosystem.

    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.

  • Linear Finance ($LINA): The future of synthetic exchange platforms?

    Linear Finance ($LINA): The future of synthetic exchange platforms?

    Linear Finance ($LINA) understands that decentralized finance (DeFi) has opened new possibilities for derivative offerings and that many exchanges have the apparent problems of front-running, expensive gas fees, and liquidity issues. Linear Finance seeks to go around those issues with its cheap, quick, and transparent synthetic asset exchange platform. With Linear, users can simply make a synthetic asset that contains a portfolio of different underlying tokens based on the exposure that they are willing to take. This presents new yield-making opportunities for anyone based on their customized financial goals.

    Check out our interview with Linear Finance!

    https://www.youtube.com/watch?v=JcXsEwj5hpI

    Background

    Drey Ng and Kevin Tai, Co-founders of Linear Finance, built the project with a vision of an inclusive and more democratized access to investment opportunities. By their team’s expertise in different crypto initiatives and financial instruments, Linear made a cross-chain, Ethereum-based protocol that seeks to fulfill their vision.

    With Linear, users can make their own portfolio exposures and manage them on their own. This initiative enables investors to easily invest, save, and earn efficient profits from their assets.

    What is Linear Finance?

    Linear Finance is a decentralized delta-one asset protocol where users can make, manage, and trade synthetic assets. This gives users exposure to different kinds of assets without having to actually own their underlying assets.

    An additional feature that Linear Finance has introduced is a cross-chain compatible and decentralized protocol that can support a faster, more affordable, and secure exchange of synthetic assets.

    Linear Finance’s platform is powered by its native token, LINA. It can be used for many purposes such as payments, staking, liquidity mining, governance, and investing in “Liquids.” Liquids are Linear’s synthetic assets composed of different underlying tokens or investment options.

    LinearDAO

    LinearDAO is the governance community who controls important platform designs and system parameters including pledge ration, LINA inflation reward and frequency, transactions fees, proposal implementation, and many more. Furthermore, they also regulate the profit and loss regarding liquidation.

    Perks and Special Features

    The project promises infinite liquidity and no slippage. Here are some of the perks users can find with Linear Finance:

    • Convenience: The protocol promises quick transactions with low transaction fees. Any kind of user can enjoy the platform as well, whether they are a market maker, staker, or trader.
    • Transparency: To prevent front-running, every transaction made within the exchange is made transparent to all users. This also reduces systemic risks on the part of each network participant.
    • Ethereum-based: Because it is built on the Ethereum network with cross-chain compatibility, it can work alongside other DeFi projects too.
    • User-tailored options: There are different exposure options that users can freely choose from, such as other tokens, commodities, or market indices.

    The whole Linear platform is built on two different blockchains but they complement each other thanks to cross-chain compatibility. For users, they only need to open an Ethereum-based wallet and an EVM-compatible wallet.

     Linear automatically links these two together through smart contracts. Here are some of the advantages of an infrastructure modeled around that concept. They are:

    • Maximized DeFi support: While LinearDAO and LINA tokens are based on Ethereum, its use of EVM and smart contracts make it easy for the platform to interact with other DeFi protocols.
    • Affordability: Buildr and Exchange function through smart contracts on top of EVM-compatible blockchains. This enables Linear to support the building and trading of Liquids at very minimal gas fees.
    • Fewer risks of front-running: The block time confirmation for other EVM-compatible blockchains are much faster than Ethereum. This allows users to create their own Liquids at more updated prices through the help of oracles. This way, the risk of users front-running the exchange becomes much lower.

    LINA Token

    LINA can be used for payments, staking, and governance participation. But mainly, LINA functions as the base collateral needed to mint Liquids through Buildr, the decentralized application (dApp) designed to manage synthetic assets.

    To create Liquids, users have to “pledge” 100% of their digital assets, which also means collateralization. This is to ensure that Liquids are fully-backed by an underlying asset, saving the stability of the system from the volatility of synthetic assets. The pledge requirement can be reduced eventually if the LinearDAO deems it necessary.

    Collateralization

    Buildr takes a hybrid approach in terms of collateralization. For Liquids, users need to deposit a mixture of LINA and other cryptocurrency tokens to generate a synthetic asset. The ratio is 80:20, where at least 80% of the collateral must be in LINA and 20% can be in other cryptocurrencies.

    Staking

    Staking LINA offers users many incentives. These are the following rewards that users can receive by doing so:

    • Exchange Fee Reward: The transaction fees collected from users of the Linear.Exchange platform, currently set at 0.25%, is redistributed weekly to LINA stakers on a pro-rata basis. For non-LINA stakers, these rewards can also be provided too but it will depend on the decision of the community governance council.
    • Inflationary Reward: LINA has a starting inflation rate of 75% which decreases on a weekly basis. The inflation reward is given to LINA stakers on a pro-rata basis as well.
    • Yield Farming: Yield farmers help maintain Linear’s debt pool and the whole platform. For the first two years of the project, users who actively use the exchange can receive token bonuses. These token bonuses can then be deposited by yield farmers in other liquidity pools such as Balancer, Curve, and Uniswap.

    Where can I buy/sell/trade $LINA?

    $LINA is now tradable on other exchanges as well like Bitmax, MXC, Bilaxy, Bibox, Hotbit and Hoo.

    Linear.Exchange

    In facilitating faster trade activities with almost unlimited liquidity, Linear is building their own exchange. As of now, Liquid is collaborating with other public blockchains to reduce transaction settlement timeframes to as quick as one second every transaction coupled with instant finality.

    With a plan of partnering with oracles, Linear also believes that they can solve problems with front-running as they gain the capability of refreshing prices on a frequent and quick basis at much lower prices for the underlying assets.

    Linear Finance ($LINA) token public sale

    The token public sale took place on 14th September 2020. A total of 47,222,222 LINA tokens were sold in 2 rounds. The first round had 25mil tokens at $0.00400 per token. The second round, 22,222,222 tokens at $0.00450 per token.

    The sale was 40 times oversubscribed and closed earlier than expected (it was supposed to last for 24 hours). Each participant in the sale had to purchase 500 USDT/USDC worth of LINA. Hence only 400 participants were able to get the allocation on a FIRST COME FIRST SERVED basis. This was determined by the time/date stamp on their Google Form submission. The first 200 users were allocated LINA tokens from round 1, and the remaining 200 participants from round 2. This was however subject to the registrants completing the KYC process in a period of 24 hours.

    $LINA was first listed on Uniswap and reached more than 20x from public sale price (and around 60x from private sale round 1). It is now stabilized at around $0.005 (as at 3 November 2020).

    Linear pre-staking platform

    Immediately after listing, Linear Finance has launched its staking platform. Holders can participate in the 8 weeks pre-staking program and get rewarded. The APY has been around 600% for weeks and has now decreased around 370%. All the earnings will be claimable 6 months after mainnet launch but users can withdraw their staked funds at anytime.

    Partnership announcements

    In the weeks following the launch, Linear has announced partnerships with Nervos, Moonbeam and Hex Trust.

    Nervos is an open source blockchain that offers security and trustlessness without compromising on scalability and performance with its unique layered architecture. The collaboration is focused on improving Linear’s cross chain capabilities and penetration of the Chinese market.

    Moonbeam, an Ethereum ($ETH) compatible smart contract parachain, is a strategic partner to help set the feet into the Polkadot ($DOT) ecosystem and level up Linear’s interoperability. Finally, the partnership with Hex Trust as a custody partner, will give Linear the chance to offer secure, institutional grade custodial services for institutional investors.

    A next announcement has revealed a new partnership with 3Commas, a cryptocurrency trading platform that helps users build automated trading bots. The investment is meant “to include future integration of the platforms and tools, streamlining operations and allowing for a greater range of features and offerings”.

    Testnet is live

    On 16th October 2020, the first testnet for Buildr has been released. Buildr is one of the core dApps of the Linear suite, where users can stake their $LINA (and soon more collaterals) to build ℓUSD, the base currency of Linear Exchange. Stakers are entitled to rewards and to a part of the transaction fees generated by the exchange. ℓUSD tokens can be minted to purchase synthetic assets within the exchange itself and can be moved to other protocols.

    The last testnet update has just come out allowing users to purchase “Liquids” with ℓUSD on Linear.Exchange. Meanwhile, mainnet launch is allegedly happening in a couple of weeks.

    If you want to read more and discover how to contribute to the testnet, please have a look at the articles here and here.

    More than 222 million of $LINA tokens are staked, for a total value of more than USD$1 million.

    New Partnership with Band Protocol

    In this article dated November 16, Linear Finance has ufficially announced their partnership with Band Protocol, cross-chain decentralised oracle.

    The biggest problem this collaboration is trying to solve is front running. As Drey Ng, Co-Founder at Linear Finance said: “Front running is a fundamental problem not just for current synthetic asset trading but all trading in general”. Not solving this problem would jeopardize all “the benefits of cross-chain compatibility (such as speed and cost), and a superior creative selection of synthetic assets”.

    How Band Protocol Oracle works with Linear
    How Band Protocol Oracle works with Linear

    Other reasons why Band Protocol was chosen are the minimized network risk., end-to-end customizability for real-time data and truly decentralized oracle mechanism. The partnership will start securing the Linear Protocol on Binance smart Chain, the first project’s cross-integration, where the BEP token has just been created (the common $LINA we see on exchanges is an ERC-20 token).

    The team is now working on features to allow users to seamlessly swap chains.

    Mainnet Buildr Launch and new staking program

    The Linear Mainnet Buildr v1.0 went live on December the 21st, after months of extensive testing. The Buildr dApp is the heart of Linear’s decentralised application suite. Users can stake $LINA tokens to build ℓUSD and earn rewards. Here is a complete and detailed guide on how to use Buildr to the fullest.

    All of the $LINA from the pre-staking program were migrated seamlessly to the mainnet and while previously earned rewards will be blocked until next June, new mainnet staking rewards will be locked for 1 year from launch. They will count towards the P-Ratio and can be used to build $LUSD. It is important to note that in order to be eligible for rewards, users are required build ℓUSD or any subsequent Liquids.

    Binance Smart Chain’s Buildr v2.0 launch

    As anticipated, Linear wants to bring Cross Chain compatibility and ease of use to Defi and Ethereum users. The team had, in fact, previously declared that “Linear was designed for all users (no matter how much LINA you hold) and transaction costs will not become a barrier to entry. Nobody will get left behind”.

    The promise has been kept and Linear.Builder Mainnet v2.0 with full Binance Smart Chain (BSC) integration and swap has gone live on January the 15th, 2021. Users can now enjoy almost gasless fees when interacting with the platform.

    The transaction was seamless and old stakers only have to connect to Buildr via MetaMask using the BSC Mainnet (they can also use Binance Chain Wallet) and they will see their Lina tokens and rewards already there. For new holders who would like to stake for the first time, there is an internal ERC-20 -> BEP20 swap whithin Buildr itself. More info and complete instructions can be found on the Medium article.

    Be careful!: There are now two versions of the $LINA token. If you send the Etherum version to a BSC wallet or vice-versa (whether it is a custodial or non-custodial address) you will lose your tokens! If in doubt on what to do, contact the support team via the official channels which you can find on their Website.

    Linear will be listed on Binance Innovation Zone

    Binance has announced it will list Linear Finance’s $LINA token on its Innovation Zone. Trading for $LINA/$BTC, $LINA/$BUSD and $LINA/$USDT trading pairs will start at 12:00pm (UTC) on 18th March 2021.

    Furthermore, Binance Launchpad is offering 21,084,000 LINA tokens for sale at at 0.00031044 BNB for 1 LINA. Subscription has already ended at 1:00p.m. (HKT) on 18th March 2021 and tokens will be sent to successful applicants at 6:00p.m. (HKT) on the same day.

    Conclusion

    With the rising gas prices in Ethereum, as well as the emerging trend of yield farming, the DeFi space is presented with new financial opportunities but is discouraged by its costs. Projects such as Linear is a promising addition to the space as it seeks to go around these problems.

    With Linear as a platform to easily build and manage investments, users can now enjoy quick and affordable profit-building opportunities. And in recognition of the real purpose of decentralization, Linear appears to be on the right track after putting in the pipelines a roadmap for a planned transition to community governance.

    Linear is certainly on the radar of a lot of renowned investors in this space. They have recently completed a USD$1.8m seed round with notable backers in the investment space such as NGC Ventures, Hashed, CMS Holdings, Genesis Block, Kenetic Capital, Alameda Research, Evernew Capital, Soul Capital, Moonrock Capital, Black Edge Capital and PANONY. According to Linear, this funding will go towards accelerating the development of their testnet and mainnet, as well as promoting their platform. It will certainly be exciting to see what the Linear Finance team will be releasing in the months to come.

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

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

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

    Tutorials and guides for the ESSENTIAL DEFI TOOLS:

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

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

  • Polkadex: Polkadot’s DEX for the DeFi ecosystem

    Polkadex: Polkadot’s DEX for the DeFi ecosystem

    Polkadex is a new addition to the Polkadot ecosystem. Polkadex a decentralised cryptocurrency exchange (DEX) concentrating purely on tokens powering decentralised finance (DeFi) applications through a user-friendly interface and lightning-fast transactions.

    Background

    Polkadex is developed by a team of highly skilled professionals led by Matthias Hafner (cryptoeconomic advisor), Vivek Prasannan (executive director), Gautham J (CEO & tech lead), and Deepansh Singh (COO). In addition, the team comprises advisors on artificial intelligence, machine learning, and banking.

    The project has struck key partnerships with notable firms such as CMS, Cluster, Blocksync Ventures, Existential Capital, Web3 Foundation, among others.

    What is Polkadex?

    Polkadex is a non-custodial decentralized platform powering the P2P exchange of tokens used in the DeFi ecosystem. The platform looks forward to building a financial-inclusive future through bridges that connect traditional and decentralized finance spaces.

    The project leverages the power of the Polkadot platform.

    The decentralized exchange is designed to solve liquidity issues plaguing many platforms in the market today. The root of the problem is the use of an orderbook on a decentralized protocol.

    The introduction of automated market-maker (AMM) as the solution led to the birth of Uniswap and other DeFi protocols. Unfortunately, the approach had its own limitations.

    For example, it can only be beneficial when there’s a price difference on exchanges using an orderbook. However, even though AMMs rely on orderbook-based platforms, these platforms don’t need AMMs for them to run.

    To bridge the disconnect, Polkadex brought AMMs and the orderbook together. The project is unique because it uses on-chain bots for market making.

    Key Components of Polkadex

    To bring its vision into focus, the project is built on FIVE core components. They include:

    Fluid Switch Protocol

    The switch changes between the platform’s orderbook and automated market-making AMM. The shift ensures that the decentralized exchange (DEX) has seamlessly-flowing liquidity for traders and liquidity providers.

    By utilizing professionally-designed AMM algorithms, Polkadex provides a fully-supported orderbook, which in turn eradicates impermanent loss and price slippage, which are the biggest ills in the DeFi sector.

    Trading Bots

    Polkadex powers high-frequency trading using trading bots. Notably, these bots handle both institutional and retail customers. They use a carefully manicured architecture that optimizes cancellation fees by managing traders’ entry and exit points depending on the situations in the market. (radiomusical.com)

    The bots are also used to perform on-chain market making. This approach fuses AMMs with an orderbook. How does this work?

    When the bots don’t find a match during a trade, they automatically place the trade in an orderbook adding liquidity to the network.

    When a trade doesn’t find a match in the orderbook, the bots are tasked with finding a suitable pair. Note that trades on Polkadex are only completed using the best price.

    Ethereum Bridge

    With most DeFi networks running on the Ethereum blockchain, Polkadex employs a trustless Ethereum bridge to facilitate the movement of any token to the decentralized exchange. Consequently, it makes it possible to interact with other liquidity providers in a trustless way that allows users to maintain control of their virtual wealth.

    High Performance

    Currently, Polkadex is operating in a testnet capable of reaching a speed of 300 transactions per second (tps). Although this speed is enough in the current landscape, the project targets a throughput of 20,000 tps.

    Polkadot Parachain

    The exchange incorporates the Polkadot Parachain as an additional way to drive liquidity into the DEX. However, the parachain is only used to bring tokens from the Polkadot ecosystem to the Polkadex world.

    During the movement, the security of the tokens is provided through an interoperability layer provided by Polkadot. In addition, the layer assumes a non-custodial approach letting token holders have full control of their digital wealth, effectively eliminating centralized service providers.

    Types of Trades Supported by Polkadex

    The exchange supports market and limit orders. Limit orders enjoy zero trading fees while market orders incur a 0.2 percent trading fee.

    The main reason for the difference in trading fees is that limit orders add liquidity to the platform while market orders remove liquidity. Liquidity providers share the trading fee charged on market takers on a 50-50 ratio with the Polkadex team.

    Since bot-based transactions aren’t viable on a decentralized exchange using smart contracts, Polkadex moves above this hurdle by removing network fees.

    However, this presents another problem where malicious actors can attack the application through a DDoS (Distributed Denial of Service) attack. To guard against such incidents, Polkadex lets the blockchain anticipate such attacks and impose a network charge for specific trades.

    The exchange uses several methods to determine a potential DDoS threat. For instance, if a trade has an invalid price, trading pair, order type, or insufficient balance, then it’s categorized as a likely DDoS attack.

    Two Critical Polkadex Partnerships

    Polkadex X KILT Protocol X Fractal

    Polkadex joined hands with KILT Protocol and Fractal to bring decentralized know-your-customer (KYC) functionalities to the DEX. The partnership saw Fractal, an identification firm, and Polkadex leverage KILT’s infrastructure to manage KYC procedures needed by the exchange.

    The move eases the onboarding process for the DEX’s users. Note that KILT stores customer information. Thus, with the collaboration, new exchange users are directed to the KILT platform, where they set-up a wallet that stores their data in a decentralized way.

    Polkadex X Cryptecon.org

    This partnership involved including Cryptecon’s Matthias Hafner into the DEX’s advisory board. Hafner’s experience in developing economic models helps the exchange effectively merge its orderbook with multiple AMMs.

    Current status of Polkadex

    Polkadex is currently in the testnet phase and has recently released version 2.0. New features in this release include:

    1. ability for the public to use testnet tokens to submit trades; and
    2. ability to watch live trades being executed by the Polkadex engine.

    To participate in the testnet, you will need to download the Polka Chrome extension and create an account. Then you can ask for testnet tokens in their official telegram group.

    Polkadex interface
    Polkadex interface (Image credit: YouTube)

    Roadmap: What’s next for Polkadex?

    The next exciting phase for Polkadex of course would be its mainnet launch. It appears that they intend to be on track for mainnet launch in Q1-Q2 2021.

    As for Polkadex’s token sale, they have indicated on their Telegram group that the community round will take place in March 2021.

    Conclusion

    Polkadex takes a superior approach in fusing AMMs with the orderbook through the inclusion of on-chain market-making bots. Notably, the provision of a user-friendly design, a high throughput, and a non-custodial approach add to the exchange’s uniqueness among other DEXs in the market.

    Additionally, its partnership with KILT and Fractal eases the onboarding process while the Cryptecon collaboration enhances its Fluid Switch component.

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

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

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

    Tutorials and guides for the ESSENTIAL DEFI TOOLS:

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

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

  • TotemFi ($TOTM): Combining prediction markets and DeFi

    TotemFi ($TOTM): Combining prediction markets and DeFi

    TotemFi is a blockchain-based prediction platform that operates on both the Ethereum and BSC networks, interfacing the prediction markets world with the decentralized finance (DeFi) ecosystem.

    In the predictions market, it’s either you agree with the system or leave the space. The ecosystem exists as a closed cave without a way to know whether you’ll get to enjoy the rewards even if you make a correct prediction. Blockchain technology came to the forefront to offer multiple solutions to the problems of traditional markets, and the predictions market should not be left out. Unfortunately, decentralized projects in the prediction world are yet to solve critical issues such as counterparty risks, accessibility, and bias.

    Fortunately, TotemFi is among the few reliable blockchain-based prediction platforms that aim to solve significant problems in traditional prediction markets through the use of, for instance, audited smart contracts. Additionally, it guards against cases where an individual’s prediction gets influenced by another. In this guide, we shall take a comprehensive tour of this project.

    Background

    Jolyon Layard leads the team as the CEO. He has a bachelor’s degree in mathematics and economics. Before joining TotemFi, he was a corporate tax associate at Grant Thornton LLP, CFO at Happy Space UK, and worked at One Young World in different capacities.

    Other key members include Harry Horsfall (CMO), Henry (CBO), and Dan (PR & Community). Note that the team members’ backgrounds cut across various industries such as cryptocurrency, brand management, and communications.

    DuckDao incubates the project in collaboration with Trustology, Ferrum Network, BlockPass, Certik, Lauchpool, among others. Its list of strategic partners includes Bluenode Capital, Alphabit, MoonWhale, and Nabais Capital.

    What Is TotemFi?

    TotemFi is a blockchain-based prediction platform operating on both the Ethereum network and Binance Smart Chain (BSC). Notably, the protocol interfaces the prediction markets world with the decentralized finance (DeFi) ecosystem. TotemFi offers solutions to five major ills in the prediction markets world.

    1. Financial risk – The platform guarantees that stakers will receive their incentives. As such, there is no way a staker will lose their input in the protocol.
    2. Incentivization – The conventional prediction market fails to form a clear incentivization route for individual and group participants. TotemFi breaks this hurdle by rewarding both parties for logical predictions.
    3. Accessibility – TotemFi uses decentralized applications (Dapps) to reduce and hopefully eradicate friction during the prediction process. It does this using a professional but easy-to-use user interface. The protocol take’s it a level higher by not penalizing inaccurate projections.
    4. Echoed influence – This happens when the market is influenced by factors such as partial media highlights and politics. The effect is largely felt on centralized prediction networks. To counter the impact, the project employs decentralization. Consequently, it distributes viewpoints and media sources.
    5. Counterparty risk – Verified and audited staking smart contracts help in building a trustless prediction platform. In return, it boosts user confidence and ensures that participants maintain ownership and control of their stake.

    How does TotemFi Work?

    The protocol works by interacting with various critical sections. Some of the areas include staking pools, prediction ranges, as well as results and tie breakers. (brownshvac.net)

    Staking Pools

    TotemFi staking pools provide a safe place for users to deposit their coins while waiting for the prediction of the price of cryptocurrencies like Bitcoin. These pools have varying maturity durations between 15 and 60 days. However, a pool only takes to the skies if it either reaches the maximum time limit or the pool’s allocation becomes full.

    Furthermore, the maturity date marks the end of the prediction date. For instance, a pool with a maturity length of sixty days means participants must predict the price of Bitcoin (BTC) in the next two months.

    Notably, TotemFi uses a single data source such as an oracle to check the prices of the assets, which enhances consistency and trust.

    TotemFi automatically births another pool with similar specifications to provide timeliness once a pool hits its allocation threshold.

    Prediction Range

    The range determines how far a participant can go with their price forecast. The number of the protocol’s native tokens, TOTM, held by a participant determines their projection range. More tokens mean a higher range and vice versa.

    However, TotemFi’s step function determines the range. The function gives the correlation between the TOTM stake size, the step size, and the range increase.

    Results and Tie Breaker

    In a prediction, the possibilities of a tie are very high. In case of a tie, the first person to provide the correct prediction becomes the winner. Also, this process applies in case a tie situation involves more than one participant. In such a scenario, users ranking is done in a chronological format.

    Staking Rewards and Price Pools

    Stakers receive guaranteed incentives. However, the rewards depend on the pool’s maturity time, staked amount, and staking time. Assuming that a staker lets their stake run peacefully for their entire pool maturity time, they’re likely to receive a tentative annual percentage rate (APR) of 60%, 65%, and 75% for pools with a maturity time of 15, 30, and 60 days, respectively.

    On the other hand, the prize pool contains both BTC and TOTM tokens. For example, in the case of a correct prediction, the winner takes home 0.03375 BTC and 1,687 TOTM coins, while the third in the winning queue gets 0.0110 BTC and 495 TOTM tokens.

    TotemFi Tokens (TOTM)

    TOTM has a fixed supply of 10 million tokens. This entire amount was excavated during the token generation event (TGE).

    The tokens go to advisors (8.5%), community development (10%), team (15%), seed (4.5%), and public sale (4.5%). Additionally, staking rewards get 16.5%, while strategic development, liquidity pool, and private sale get 15%, 6%, and 20%, respectively.

    Notably, the allocated coins are locked for varying months. For example, TOTM issued to staking have a lockup period of 48 months, while those meant for private sale have a five-month lockup period.

    Apart from rewarding predictions, TotemFi’s native asset acts as a governance token. Therefore, its holders are capable of taking part in critical decisions such as pool mechanics.

    Conclusion

    TotemFi is set to revolutionize an industry that is relatively underserved. Fortunately, a decentralized approach allows participants to blame themselves for not getting the forecasts right. Additionally, its use of blockchain increases participants’ confidence.

    Moreover, guaranteed incentives for stakers, as well as not penalizing incorrect predictions, allows everyone to participate, opening the door to broader adoption. Most importantly, the experience of the TotemFi core team, incubators, and advisors sets the project apart from other blockchain-based prediction networks targeting.

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

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

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

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

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

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

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

    Background

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

    Radix team (Image credit: Radix DLT)

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

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

    What is Radix DLT?

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

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

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

    Radix network

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

    Cerberus

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

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

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

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

    Radix Engine

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

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

    Radix Component Catalog

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

    Radix Network (Image credit: Radix Whitepaper)

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

    Developer Royalties

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

    Radix Token ($XRD)

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

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

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

    E-Radix (eXRD) Token Sale and tokenomics

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

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

    Radix proposed distribution
    Radix proposed distribution

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

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

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

    E-RADIX will be available for trading on Uniswap.

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

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

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

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

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

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

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

    Staking Radix Token

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

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

    There are two approaches to locking tokens:

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

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

    Network Subsidy

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

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

    Conclusion

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

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

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

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

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

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

    Tutorials and guides for the ESSENTIAL DEFI TOOLS:

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

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

  • Vortex DeFi ($VTX): One-stop Gateway to DeFi

    Vortex DeFi ($VTX): One-stop Gateway to DeFi

    Vortex DeFi ($VTX) aims to provide users a one-stop access to all leading decentralized finance (DeFi) platforms and protocols from a single web-based user interface.

    Decentralized Finance (DeFi) has evolved from a niche subcategory to the biggest catalyst driving the cryptocurrency and blockchain field today. It’s primarily focused on the Ethereum network, which has the majority of the DeFi share. There are, however, a large number of core DeFi protocols, combinators, and countless forks. All of this can become confusing fast.

    Fortunately, users don’t have to delve into the complex workings and nuances of these protocols, which can be overwhelming even for long-term users. Vortex DeFi is introduced to simplify the access and exposure to the sector. It has integrations with different protocols, which abstracts away the complexity in a simple and yet intuitive interface, to level the playing field and ensure greater participation.

    Background

    Vortex DeFi launched in Aug 2020 through a private investment round. It accrued interest and funding from X21 Digital, DuckDao, Moonrock Capital, Magnus Capital, Pluto Digital Assets PLC, Faculty Capital, A195 Capital, etc. A public sale will be held soon.

    It has a multicultural team, led by CEO Rahul Singh and strategic advisor Lester Lim. The other prominent team members are technical lead Arun Sunil and product lead Shaz. All team members have previous experiences in market-leading companies and blockchain projects.

    What is Vortex DeFi?

    Vortex DeFi is a web-based DeFi management system or a comprehensive DeFi aggregative solution platform, serving as a bridge between Ethereum and Polkadot. It combines the functionality and power of core protocols in a sleek dashboard to allow users of all categories to engage in yield farming. The core services provided are NFT asset management, lending and borrowing, insurance, and exchange.

    Vortex DeFi will also utilize the yEarn finance protocol to access and extract value from various lending protocols to enable automated profitable yield farming. The added advantage of cross-chain compatibility ensures that users don’t have to choose between two promising blockchains. Vortex DEFI also has several components, taking the guesswork and experimentation out of the process.

    Vortex DEFI – Components

    V-Swap

    Being the Uniswap or Bancor equivalent of Vortex, V-Swap will offer an automated digital assets exchange on the Ethereum and Polkadot blockchain. It’s likely to offer liquidity aggregation from multiple sources, so a peer to peer exchange of tokens can be performed without a direct counterparty or orderbook.

    V-Pay

    It will offer a fiat gateway for users, so they can acquire and sell crypto assets from FIAT, in their cards or bank accounts. This is required for onboarding new users, as well as ensuring that they have a way for realizing their returns.

    V-Yield

    A yield aggregator as the name goes, V-Yield will combine yield from different sources and optimize them according to the best return rate. It will spare users from the trouble of manually finding sources and having the need to rotate them.

    V-NFTs

    An asset management, V-NFTs will allow users to manage their asset collection and swap them for each other. Given that NFTs are an illiquid asset class and their infrastructure is scattered, it’s hugely important to develop a unified interface.

    V-Insure

    DeFi protocols are rife with exploits and smart contract risks. Therefore, to onboard new users and even to retain existing ones, it’s necessary to grant them peace of mind by ensuring the protection of their funds. V-Insure will seek to insure user funds by seeking out integrations with multiple DeFi insurance protocols.

    Vortex DEFI Native Token ($VTX)

    The native token of the platform is Vortex DeFi Token ($VTX), ERC-20 token, which will be used to incentivize users. It has four purposes:

    1. Liquidity pools (LP) rewards are distributed in VTX
    2. Usage for staking on the platform.
    3. Holding VTX tokens allows users to save on the platform fees
    4. The team has announced plans to regularly buy tokens and burn them every quarter to reduce supply and increase the value of existing tokens.

    All of these benefits and value accrual mechanisms will motivate users to hold tokens, in anticipation of rising demand and prices.

    $VTX Token Metrics

    The VTX token has a total supply of 100M $VTX and an initial circulating supply of $0.4M $VTX.

    Funding Rounds

    Private Sale (concluded): 32,500,000 VTX sold at 0.0276 USD per token.(25% TGE, 75% vesting over 120 days)

    Public Sale (on 28 February 2021): 2,500,000 VTX to be sold at 0.04 USD per token. No vesting period.*

    Advantages of Vortex DeFi

    The platform offers users the advantages of a unified DeFi management dashboard, the ability to fuse several protocols together offering a seamless experience with abstracted complexity, powerful lend and earn functionality, automated rotation of funds for optimized returns, non-custodial function, and insurance against loss of funds.

    Vortex DEFI Connected Protocols

    Vortex DeFi connected protocols (source: ‘Introducing Vortex DeFi Beta & Access to the Vortex of DeFi‘ medium article)

    Vortex DEFI will have integrations with several key DEFI protocols, including but not limited to Maker DAO, Compound, Kava, Idle, Aave, Yearn, Uniswap, Nexus Mutual, Curve. This will allow for a powerful user experience, which is likely to improve penetration of decentralized finance.

    Vortex Vision

    The team hopes that Vortex will become the top one-stop solution for a user’s DeFi needs and allow them to simplify their experience. Vortex hopes to make financial applications accessible and simple for all users, regardless of their technical expertise. It will also allow saving on transaction fees (gas) by batching and combining transactions.

    Vortex can also enhance the decentralization level of DeFi protocols by ensuring broad participation and an increase in user activity. Furthermore, it will feature the DAAS (DeFi-As-A-Service) business model. Currently, the product is in development and more changes are expected as the platform launch draws near.

    Conclusion

    DEFI was founded on the principle of openness, equal opportunity, transparency, trustlessness, lack of centralized control, fast processing, and lego-like composability. It is generally presented as a superior alternative to the traditional financial system, which differs heavily from the principles of the crypto community and disallows these services to a large number of people.

    On the other hand, DeFi is accessible to almost everyone with an internet connection and a personal computing device or smartphone. However, primitive user interfaces and experiences of the existing DeFi protocols were a problem. Thankfully, Vortex will overlap the strong functionality of these protocols with an amazing and simple interface.

    Currently, there is a lack of dashboard-style platforms connected to multiple DEFI protocols, aggregating their services and offering a one-stop solution. All of this is about to change with the Vortex launch, which is likely to onboard a large number of new users as well as provide a novel interesting solution to the existing ones.

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

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

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

    Tutorials and guides for the ESSENTIAL DEFI TOOLS:

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

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

  • Unido ($UDO): Crypto Banking and DeFi for Enterprise

    Unido ($UDO): Crypto Banking and DeFi for Enterprise

    Unido ($UDO), powered by Polkadot, provides enterprises crypto-asset management solutions, that specialize in governance, security, and interoperability within the crypto banking sphere guaranteeing the satisfaction of all users.


    Background

    Powered by Web3 blockchain Polkadot, Unido was founded by Chris Weddle who has over 20 years of experience within the blockchain sector. The project was initiated in 2017 and is anchored by an experienced team of finance experts, software developers, and blockchain developers. They all come from well-known financial and development firms such as Goldman Sachs, Wipro, and Macquarie.

    Unido’s Founder: Chris Weddle (Source: Unido website)

    Through the Unido project, the team has successfully managed to solve security and accessibility challenges with its distinct and dynamic implementation of a blockchain-based management tool that facilitates the handling of crypto assets.

    What is Unido?

    Unido is a technology ecosystem that addresses the governance, security, and accessibility challenges of decentralized applications, and enables companies to manage crypto assets and capitalize on DeFi.

    Unido’s distinct protocol facilitates investment in DeFi by leveraging its efficient proprietary and multi-sig key signing technology. Furthermore, users have the unique capability to manage crypto banking operations in complete security.

    Under the decentralized platform, assets management enterprises and crypto native companies are ensured agility and efficiency for the custody of their respective digital assets. This creates a strong bridge for firms and organizations to interface with DeFi networks as they remain compliant with licensing and regulatory requirements.

    The platform’s algorithm works best by leveraging, as well as supplying clients with a great deal of crypto trading, payments, and banking solutions.

    Through Unido’s user-friendly protocol, participants essentially have access to three main features all responsible for the system’s special implementation of the blockchain, namely, Enterprise Crypto Banking Suite, DeFi Vault Access, and Governance/Security features.

    Enterprise Crypto Banking Suite

    A business banking portal, through which firms can manage day-to-day operations and capital expenditure. This feature empowers users with a multi-user wallet management protocol that creates, assigns, and manages clients’ wallets.

    Additionally, it is equipped with user governance tools providing access to rights and access requirements unique to the blockchain solution. Overall, this business banking portal is a simple and intuitive instrument with an interoperable, modular architecture that provides analytics on DeFi transactions, activities, and trends.

    DeFi Vault Access

    The vault access is a multi-signature enterprise wallet or DeFi vault used to store, manage, and invest digital assets in an efficient and safe manner.

    The team behind the wallet describes it as a secured and most importantly, a well-integrated bridge into several prominent DeFi investment solutions such as UniSwap, Yearn Finance, and Balancer. Additionally, the vault provides users with a complete overview of investment opportunities within the DeFi space, as well as potential returns and benefits within specific DeFi networks.

    Supported by a portfolio performance dashboard, this feature facilitates the management and investment of digital funds.

    Governance and Security

    Through this blockchain-based feature, the Unido enterprise platform (EP) provides users with an array of security and management instruments ensuring the safety of all funds within the platform.

    The Unido platform guarantees blockchain-based security and agnostic architecture, rendering it versatile and applicable to any given on-chain use cases. Powered by a key signing technology, Unido EP ensures flexible and trustworthy governance, which provides assets access only to permitted entities and parties.

    Unido Token ($UDO)

    The platform’s utility token, $UDO, is the fuel behind Unido’s efficient implementation as it is used to drive network access, ensure transaction security, governance, and network management. Overall, the token is built on a trustworthy smart contract algorithm guaranteeing the development and expansion of the Unido network in the future.

    Furthermore, the token facilitates access to the platform’s variety of products to all users, including institutions and developers. UDO has three main use cases, being network access licenses, consumption fees, and DAO Governance.

    $UDO Tokenomics

    Total Supply: 115,000,000 UDO

    Initial Market Cap: $487,813

    Seed/Private/Pre-Public Sale Fundraising: $1,400,000

    Seed Sale: $0.04, 0% TGE, 20% monthly unlock

    Private Sale: $0.05, 25% TGE, 25% monthly unlock

    Public Sale:: $0.06, full unlock

    Deflationary Economics:

    • Phase 1: From consumption fees, 60% burn, 20% to EDF, and 20% into reserve. Phase 1 when token supply is reduced by 20%.
    • Phase 2: After enterprise products take off, 50% of fees to be invested into EDF & 50% into reserve.

    UDO Use Cases

    Network Access License

    All applications and Unido EP features will only be available via a license purchasable with the UDO token. Once the license is bought, the tokens are removed from circulation and placed into a secured smart contract until the license eventually expires.

    Companies are provided with annual licenses for the Unido platform, where fees are determined by the volume of usage for the target clients and the number of users.

    Consumption Fees

    All fees and consumption charges within the Unido ecosystem and auxiliary platform will be based on the volume of usage within the platforms. Additionally, UDO will be used to authenticate each transaction within its parent platform.

    All operations from developers will either be charged under a subscription model, Freemium model, paid model, or In-App model, all depending on the user specifications and needs.

    DAO Governance

    In general, the DAO will oversee Unido’s Ecosystem Development Fund (EDF) and allow for the subsidizing of new applications implementation and development, which will contribute to the diversification of the platform.

    Unido Ecosystem (source: Unido one-pager)

    Conclusion

    Unido EP aims to be a leader within the blockchain space by spearheading the race toward mass adoption; especially within the traditional financial sector. The platform’s drive to provide secured banking management tools is a great boost for wide DLT acceptance.

    Overall the Polkadot-based platform is a dynamic implementation of decentralized technology, which guarantees total accessibility and security through key features lacking in most solutions of its genre on the market.

    Unido Enterprise Platform is ahead of the curve as it provides a sure connection with blockchain giants, ensuring its growth and development in the future. Unido will likely become a leader within the blockchain given the protocol’s current algorithm and products.

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

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

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

    Tutorials and guides for the ESSENTIAL DEFI TOOLS:

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

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