Tag DeFi

Although there are many new technologies, they are not always successful. The success of technologies is measured by their ability to make processes more efficient. The same applies to the world of finance. As investors struggle with the cryptocurrency market, many of them have shift their focus to security tokens as they appear to be more promising.

Security tokens are the future of digital assets. In the recent past, security tokens and security token offerings have become fashionable words in finance and the encryption community. Everyone is trying to understand this digital asset.

STOs are great because they fill the gap. They are well regulated, versed and available. They have come a long way from a mere concept to success, especially in the real estate field. Owning an asset in security tokens gives investors more structure. They can expect to have their shareholding preserved in the blockchain ledger.

Read the full story at: theseeker.ca.

Created as an alternative to the inherent volatility of cryptocurrencies such as Bitcoin and Ethereum, stablecoins are marketed as viable payment solutions for corporate blockchain use cases, since traders should - in theory - not hesitate to accept them. Speaking of traders, there are rumors that PayPal (NASDAQ: PYPL) could implement its own stablecoin, having recently announced support for a variety of cryptocurrencies.

The emergence of decentralized finance (defi) - a subset of the crypto market comprising tools to interact without confidence with open financial protocols such as savings and lending - highlighted stable currencies such as DAI and USDT, providing them with a myriad of use cases.

An anonymous community-oriented defi protocol, BXTB wants to transform the stable currency market through a yield-generating currency suitable for corporate use cases. Initially, his ambition is to unify the payment and settlement systems of the multibillion-dollar gambling industry, partnering with operators, platform providers and publishers to ensure a reliable and continuous betting experience.

Read the full story at: finance.yahoo.com.

Ethereum Classic users will now have the option of a new $13 billion Bridge to the DeFi market with the launch of Wrapped Ethereum Classic (WETC) tokens.

ETC users, who were previously unable to access the full range of non-custoy financial services available to ETH users, will now be able to bet their stakes in ETC to gain entry into the world of decentralized finance, which currently exists predominantly in Ethereum.

The launch of WETC aims to provide another entry point into the rapidly expanding DeFi space. Users who own WETC can also take advantage of WETC's transactions and sale on decentralized exchanges and loan platforms to lend assets or create loans with WETC as collateral, James Wo, founder and CEO of ETC Labs, told Decrypt.

Read the full story at: decrypt.co.

After reaching nearly $16,000 last week, Bitcoin has struggled to keep such a high price. It dropped to less than $14,300 a few days later, but managed to start a false leak to $15,800 when news surfaced that Pfizer's COVID-19 vaccine worked successfully in 90% of test cases.

However, the primary cryptocurrency fell once again to less than $15,000 a few hours later. It recovered the $15,000 mark on November 9 and hasn't looked back since. In the last 24 hours, the asset has dropped briefly to $15,100. However, the bulls quickly took control and sent it to the current level of about $15,400.

Technical indicators suggest that BTC would have to conquer the resistance lines at $15,600 and $15,800 before potentially challenging the annual high of $16,000. Alternatively, BTC could count on $15,200, $15,000 and $14,900 in case another price fall arrives.

Read the full story on the website: cryptopotato.com.

The cryptocurrency world is subject to hype, whether it's in the large scale of the ICO boom and the 2017 Bitcoin price bomb or on the smaller scale of a new project or platform launch. This year was all about DeFi and its revolutionary potential to reshape finances.

In February, the total amount blocked in decentralized financial investments exceeded $1 billion for the first time. By the end of October, it had reached $12 billion. The growth reflects the growing willingness of traders to speculate on this nascent and largely experimental sector. With the potential for returns bordering on ridicule - 52,000% in one estimate - it's not surprising.

But activity at DeFi now shows signs of slowing down, with volume on decentralized exchanges beginning to drop. Perhaps this was inevitable, but it represents an opportune time to reflect on some of the lessons learned while riding the DeFi roller coaster.

Read the full story on the website: entrepreneur.com.

Totally 86% of traditional companies are implementing or at least considering blockchain-based decentralized finance technology, says Boston Consulting Group.

More than four out of five traditional European financial institutions now see decentralised finance, or DeFi, as a technology worth implementing or at least considering.

That's according to "The Sudden Rise of DeFi," a new study of 411 insurers, banks and trading companies released by Crypto.com and the BOSTON Consulting Group BCG Platinion with an IT focus on October 22.

Specifically, 86% are implementing or evaluating services based on a decentralized structure.

Noting that the blocked value in DeFi grew an impressive 1,500%, to $8 billion, the report concluded that the "ability to borrow, make loans, deposit funds into a savings account or trade complex financial products, all without asking anyone because permission is gaining strength."

Larger companies are shifting more aggressively to DeFi, with 71% of those with a balance sheet above $13.1bn (£10bn) implementing or evaluating the technology, compared with 51% of those below $131m (£100m).

"Research shows that the adoption of DeFi is not just limited to the blockchain industry," crypto said. with co-founder and CEO Kris Marszalek. "Traditional financial institutions of all sizes are seeing DeFi not as a competitive threat, but as a valuable tool for delivering more decentralized and efficient financial services."

Of the companies surveyed, 38% - and 61% of the largest companies - are using DeFi to "facilitate faster and safer payment processing services," the study concluded.

Two-thirds of respondents - 67% - believe DeFi will open up new revenue streams, while 70% believe it can make financial transactions faster and cheaper.

"As markets evolve toward decentralization, there will be a growing demand for approaches such as DeFi, which can provide a more efficient and open form of banking, trade and investment," concluded Kaj Burchardi, managing director of BCG Platinion.

"It is encouraging to find that financial institutions are already seriously and strategically collaborating with the cryptographic community to begin building a new generation of governance and technologically resilient solutions that will make financial services more accessible."

Work to be done

That said, the report found serious concerns about the lack of regulation, with 61% saying it made them hesitate - a concern that worsened for companies with higher turnover or more assets under management.

Almost the same number - 60% - said the lack of recovery mechanisms is worrisome.

Fraud security concerns are another challenge, with 70% saying it prevents DeFi adoption across the enterprise.

Still, the risk of vulnerabilities in smart contracts that put assets at risk is the biggest concern of DeFi research participants.

"There's still a lot of progress to be made to bring DeFi into the mainstream, especially in security and compliance," Burchardi said.

This is something that European regulators recognise. The European Commission last month unveiled "ambitious" proposals to regulate cryptocurrency assets and service providers. Unfortunately, it also predicted that it would take four years for these regulations to enter into force.

source: modernconsensus.com

Once again, the crypto market is recovering stronger after a bit of a retreat in September, following the uncertainties and irregularities of the upcoming U.S. election. This month, the market seems to find its direction up while the bulls are furious and gaining momentum every day. Once again, the DeFi market is also experiencing a price recovery on various assets, tokens and projects, bringing up the potential of the DeFi market to be among the biggest gainers once again.

But whether in the high or low season, cryptocurrency traders make money regardless of existing market directions, this type of forecasting market is available only on other projects and exchange platforms outside the DeFi market, notably CEXs centralized exchange markets. Plotx, a DeFi prediction market for cryptocurrency traders, is set to change that by once again establishing the dominance of the DeFi market in what appears to be the expected bull run of 2020.

The Plotx prediction market is set to be the link that will connect traders to various Tokens of DeFi projects, so far the only place where you could find traders with the ability to trade in a low, high or neutral direction is in the future or in centralized margin trading exchanges. In fact, Dex platforms where most DeFi tokens are traded do not maintain a portfolio of orders that allows traders to record their price or can set their trades for further execution; usually, trades are made directly from the liquidity pool.

Plotx is a non-custodial prediction tool that allows traders to earn rewards in the high-yield prediction market, allows traders to win in any direction the DeFi market is taking and can generate an incredible amount of money for traders when you take into account the large amount of volatility that exists in the DeFi market.

The cumulative benefits for users of the Plotx prediction platform are as follows:

Automated systems: New markets are created algorithmically, ensuring the creation of a proven fair and decentralized market for traders, facilitating a complete and smooth Onchain forecasting market experience.

Crypto Markets: Plotx was built for mind-focused crypto traders. It is a community-based project, by a team of experienced traders and specialized in cryptocurrency, who are well aware of the need for a simplified prediction algorithm and tools to facilitate fast prediction processes in the market.

Instant rewards: Predictors wouldn't face the hassle of having to wait for an intermediary to credit their rewards, as the Plotx platform is built completely on a chain, on the Ethereum blockchain. As there is no intermediary, payment is therefore fast and secure.

Liquidity mining: interested users can participate in the liquidity mining resource of the Forecastplatform Plotx, anyone can earn additional rewards for participation and participation in the liquidity pool.

Quick Response: Instead of having to wait for a longer duration for a successful forecast, Plotx helps Predictors shorten the curve by reducing the duration to markets by 1 hour, 1 day, and 1 week so users don't have to lock their funds for long.

Automated calculations: Embedded in the platform is an automated calculation algorithm that calculates the Onchain forecast for each market, feeding users live real data, obtained for seconds throughout the market at a given instant. This will provide the professional with a better effort to make decisions on site.

How does it work?

Plotx allows users to take positions in the low, high or neutral positions in different markets at the same time, Plotx will be the aggregator of these other forecast markets, simplifying the process, reducing the amount of time that would be spent on these different platforms. Each market is created using the automated market trainer and all transactions are processed on the blockchain for transparency purposes. Rewards are instant, without any form of limitation. Players can also use leverage to manage their risks (predictors are strongly advised to use only what they can lose, as this is the best form of trading action).

The elegance, dark-themed background and features of the Plotx prediction platform make it a great attraction for traders. The fast and intuitive experience of the site will ensure that anyone with a simple ability to predict or trade on any stock exchange or forecasting market is already equipped to make predictions on the Plotx forecasting platform. This fix, the much-needed introduction of this tool, will increasingly stimulate better innovations for the DeFi market.

source: blockmanity.com

More crypto projects adopt DeFi (decentralized finance)More crypto projects adopt DeFi (decentralized finance)

Why it matters: The decentralized finance movement (DeFi) has generated renewed interest in the crypto market. With Bitcoin worth an average of $10.000 last year, the lack of notable cryptographic white swan events, such as a halving episode, has led to some stasis search. The emergence of DeFi networks saved the situation.

These decentralized platforms encourage the grouping of digital tokens to provide liquidity for financial services in exchange for interest. Thanks to the immutable blockchain, DeFi projects, which are mostly powered by the Ethereum network, allow crypto enthusiasts to borrow funds at high interest and accept microcredits through point-to-point network configuration.

The DeFi concept is based on the visionary principles of the pseudonym Satoshi Nakamoto, the creator of the Bitcoin network. They include transparency, financial inclusion and accessibility. Devoid of centralized control, only an anonymous account is required to access DeFi services. This is a great benefit for crypto fans who value privacy and one of the main reasons why major crypto projects are promoting Defi products alongside their core offerings.

Many of them are changing the brand to DeFi in order to trigger token price increases. Similar enthusiasm and subsequent price trends were last witnessed during the crypto price boom in 2017. This led Bitcoin to reach the $19.500 mark.

Tron TRX is among the most recent currencies to experience a sudden upward trend after the launch of a DeFi product. The digital currency rose 60 percent last month after Tron unveiled the Sun Genesis Mining DeFi token. Sun Genesis is wagered using Tron TRX coins. Stakeout is the process of maintaining a designated digital currency to earn interest. The practice is known as Yield Agriculture in cryptocircles. This causes the demand for coins bet to increase, causing an increase in the price.

The Sun Genesis Mining token was announced by Tron founder Justin Sun as a currency designed to "promote the vigorous development and possibilities of the TRON DeFi self-governing community".

More innovative DeFi projects have emerged. Tao Network is among the most recent companies to join the DeFi movement. Its blockchain-based platform allows music deals to be made directly through its decentralized system. Following its most recent announcement, it is "building entertainment DeFi".

Among the biggest supporters of DeFi today is the popular Binance exchange. The platform's US subsidiary recently joined the Chicago DeFi Alliance to better contribute to the country's current movement. Binance publicly supports BurgerSwap, an automated market creation platform (AMM) where users earn Burger tokens in the currencies bet. According to the DeFi Pulse tracker, the ecosystem is in a snowball. It currently has more than $11 billion in blocked cryptocurrency assets.

The current risks associated with participating in DeFi projects include susceptibility to vector attacks. The prices of primary blocked assets may also change without notice and lead to losses. Finally, the lack of regulation around the millpond environment increases the likelihood of encountering DeFi scams.

source: techspot.com

'DeFi' - short for decentralized finance - is the hot label in the digital asset landscape.

Remember when Long Island Ice Tea Corp. Did your stocks skyrocket by reinventing yourself as a crypto company before breaking and burning? Well, it's happening again in the realm of digital assets, but instead of adding "blockchain" to a name, DeFi is the nickname of choice.

DeFi, or decentralized finance, has increasingly become part of the company's promotions this year. Nucleus Vision, a data source project started in 2014 to provide consumer insights to retailers, recently announced that it is the “DeFi for Retail Purchase Loans”. Tao Network, which has existed since 2015, now claims to be “creating an entertainment DeFi”. Tron, an operating system that has been active for at least three years, has just launched its own DeFi currency.

In many cases, rebranding efforts are driving an increase in prices for unseen tokens since the peak of the Bitcoin bubble in late 2017. The market value of Tron's TRX coin, which is linked to a new DeFi token called Sun Genesis Mining, jumped $ 800 million in the three days after the new currency was announced.

DeFi has been the hottest thing in cryptography for the past year. DeFi applications should allow people to lend, borrow, negotiate and insure each other directly, without using intermediaries like banks. This has also led to several quick enrichment schemes, such as agricultural production, which generally promises three-digit returns.

"The crypto rebranding has been going on since cryptography exists, and since DeFi has been hot for about 18 months, many cryptographers have emphasized its DeFi aspects," said Aaron Brown, a crypto investor who writes for Bloomberg Opinion. "It is not difficult, since DeFi is not always defined in a rigorous way and most of the encryption is decentralized and most have some financial aspect, so it is not difficult to change the brand."

Technically, DeFi applications - whose financial functions are to be performed entirely by software - should not have a central administrator or authority, but this is generally not the case, even with the most recent projects. Often, developers maintain some measure of control in the event that a bug in an application's code makes it unusable or vulnerable to hackers.

"This dilutes the phenomenon a little, which explains why we saw more efforts to define the concept, change the brand to open finance and point out critical points of centralization", said Nic Carter, co-founder of researcher Coin Metrics. "All of these are attempts to maintain the purity of the movement".

In September, Justin Sun, who founded Tron, launched the Sun Genesis Mining meme coin "to promote the vigorous development and possibilities of TRON's DeFi self-governance community," he said in a blog. The currency debuted with a market capitalization of almost $38 million and pushed the price of TRX upward as well, as users have to make deposits on TRX to obtain the new currency. Twenty DeFi projects currently use Tron technology, according to the DappRadar classifier, while several hundred use Ethereum.

EOS, another open-source protocol, said recently that it will “unleash DeFi”. EOS supports 11 DeFi projects, according to DappRadar.

Many projects are adding new features, as well as rebranding. The Nucleus Vision Project on August 3 announced Nucleus Vision 2.0 that “will aggregate existing DeFi loan protocols, partner with liquidity providers and partner with retailers and global brands to allow cryptographic users to leverage their assets to buy products from the real world".

The currency of the venture, whose market capitalization peaked at about $ 200 million in 2018, skyrocketed briefly from $3 million to $8.3 million with the announcement, before falling again, according to the tracker cryptographic data CoinMarketCap.com.

TRON has been investing in the DeFi ecosystem for years and has now become one of the most popular blockchains that support DeFi, a spokesman said. EOS declined to comment, while Nucleus and Tao did not return requests for comment.

"They kind of executed rhetorical pivots for DeFi instead of anything that structurally changed", said Carter. "There is nothing illegitimate about it, but some think it is an attempt to take advantage of the hype surrounding DeFi".

source: aljazeera.com

2020 is a landmark year for DeFi, as the industry inflated more than $100 billion in volume from the second to the third quarter - mostly in Ethereum, according to a new report

Almost all decentralized financial transactions (DeFi) are now taking place in Ethereum, but congestion and the “gas prices” spiral are slowing activity - which may be giving competitors on the popular blockchain network an opportunity to grow, according to a new report.

DappRadar's decentralized application tracker (dApp) report on the state of the world DeFi documents a flurry of activity in the third quarter of this year, with transaction volume exploding by more than 10 times since the second quarter and now exceeding $123 billion. Of these transactions, 96% were in Ethereum.

The total value attached to the DeFi ecosystem now exceeds $ 10 billion, compared to just $ 1billion in June.

Booming DeFi

While other blockchains are trying to capitalize on increasing demand for DeFi, none come close to the volumes supported by Ethereum - a protocol that has become explosively popular in part because of its pioneering advantage and "composibility", which allows less experienced developers to help build the ecosystem.

In contrast, Bitcoin's Lightning Network itself - a protocol built on top of Bitcoin to facilitate faster transactions through the use of smart contracts - has only about $12 million in total value blocked in the DeFi ecosystem.

Bitcoin holders are switching to Ethereum instead of making use of their bitcoins. By converting bitcoin into an ethereum-based token that represents 1:1 bitcoin, called “wrapped bitcoin”, bitcoin holders have already invested more than $1 billion in BTC in DeFi.

The idea behind projects like Wrapped Bitcoin is to explore the liquidity of bitcoin and make it accessible on the Ethereum network. DeFi as a whole has attracted investors' attention as a way to use its digital assets to disburse loans or borrow crypto assets through smart contracts, rather than simply keeping its assets in portfolios.

DeFi participants who invest their cryptocurrency in liquidity pools managed by smart contracts are known as liquidity providers and receive interest or returns on their contributions through a practice known as "yield agriculture".

According to the DappRadar report, the biggest contributors to the Ethereum network were the DeFi Uniswap, Sushiswap, Balancer and Compound protocols, generating a total of 56% of daily active portfolios.

The growth in DeFi can be attributed to the impact of the Composite Protocol (COMP) in particular. "COMP was launched in June and we saw transaction volumes within the DeFi ecosystem exploding," said the report. "In just half of June, the volume of compound transactions grew 27x, reaching US $4 billion."

Congestion and scams

Despite the growing interest of investors in DeFi, its growth in recent months is not without risks. Observers, as well as industry experts, have warned that many projects may be nothing more than Ponzi schemes.

"A lot of people are committing scams because a lot of people are interested in DeFi, so if you put the word DeFi on anything, you'll get a lot of money on your way," said Marc Fleury, CEO and co-founder of Fintech company Two Prime, in an interview recent to Forkast.News.

As reported on Forkast.News, the world of DeFi is filled with dramatic events, such as the sudden increase in the SUSHI protocol followed by a free fall in value, anonymous creator Chef Nomi of SushiSwap returning $14 million in ETH and more.

DeFi's popularity is also clogging the already popular Ethereum network, increasing transaction fees known as "gas". These gas fees can be paid for with ETH denominations known as "Gwei".

"Although the results of Ethereum are surprising, one of the main problems in slowing it down is congestion," said the report. “Gas prices showed impressive heights during the third quarter of 2020. At peak times, transaction costs were more than 400 Gwei.”

According to blockchain software developer ConsenSys, Ethereum's congestion and scalability issues are still being resolved. Ethereum 2.0 - which co-founder Vitalik Buterin said would be a proof-of-bet protocol that greatly improves scalability - is due to be released next year.

"I would be very, very upset if we didn't have profound scaling problems at this point," said ConsenSys founder and CEO, Joseph Lubin, in a recent interview with Forkast.News.

“Scalability is being addressed with the evolution of the Ethereum 1.0 protocol, adding literally tens or hundreds of thousands of transactions per second on Layer 2 above Layer 1 and creating Ethereum 2.0, which will multiply all that scalability by, probably around 500 on beginning and even more with time, ”said Lubin, who is also a co-founder of Ethereum.

With Ethereum 2.0 not yet ready for the market, the DappRadar report notes that the newly relaunched Cardano can offer users an alternative and that Polkadot and Binance are also growing as competitors to Ethereum.

source: forkast.news