Both Coinbase.com and Pro Now Support USDT, “Making Arbitrage Across Exchanges Faster”

Both Coinbase.com and Pro Now Support USDT, “Making Arbitrage Across Exchanges Faster”

For now, Coinbase only supports ERC20 USDT. The total USDT market supply meanwhile surges past 52 billion, up 147% so far this year.

  • Coinbase Pro is officially starting the trading of USDT.
  • The exchange is providing support for six pairs viz. BTC-USDT, ETH-USDT, USDT-EUR, USDT-GBP, USDT-USD, and USDT-USDC.
  • Along with this came the announcement that Coinbase.com is now also supporting USDT.

On Monday, the exchange said that the popular stablecoin will now be available on the main Coinbase platform along with its iOS and Android apps.

“Coinbase customers can now buy, sell, convert, send, receive, or store USDT,” said the exchange. USDT is available in all the supported regions except for New York State.

At this time, the exchange only supports ERC20 USDT running on the Ethereum blockchain, clarified Coinbase as USDT is issued on several blockchains including Tron, EOS, Liquid, Algorand, Solana, and other blockchains.

As of writing, nearly $27 billion USDT is issued on the Tron blockchain compared to almost $26 billion on Ethereum, as per the Tether website.

The total supply of the dominant stablecoin in the market has currently climbed past $52 billion, up 147% so far this year, as per CoinGecko.

According to Paolo Ardoino, the CTO of crypto exchange Bitfinex and its sister company Tether, the largest crypto exchange in the US supporting USDT is of importance because of arbitrage.

“Traders arb across multiple exchanges,” and speed of transfer and low friction are key to that, he noted.

Launched in 2014, Tether was created exactly for this use case, making arbitrage across exchanges faster, he said. Now, after seven years, “all exchanges will be all tethered by a common, high liquidity stablecoin.”

While the dominance of USDT is gradually decreasing in the market as more and more competitors like USDC and BUSD gain traction, Ardoino points out that it is still 4x the second biggest stablecoin USDT with a market cap of just under $15 billion, up 277% YTD. He added,

“Tether and Bitfinex are setting up a massive strategy (including spin-offs and investments) that will open mind-blowing opportunities for the next decade, and this might well be an understatement.”

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Author: AnTy

MakerDao Proposes D3M to Integrate with AAVE & Expand Stablecoin DAI Across DeFi

MakerDao Proposes D3M to Integrate with AAVE & Expand Stablecoin DAI Across DeFi

The proposal will help MakeDAO gain capital efficiency, make DAI the primary choice for borrowers on Aave, accumulate AAVE, and proliferate DAI across Aave markets on every L2.

MakerDao proposes a Direct Deposit Dai Module (D3M) to join Maker with another DeFi blue-chip lending protocol Aave more closely.

This will allow the Maker protocol to enforce a maximum variable borrow rate on the Aave DAI market.

MakerDAO is the protocol that mints the DAI stablecoin, which has a market cap of $3.19 billion and acts as a hedging tool and medium of exchange directly on-chain.

DAI, USDT, and USDC are the dominant stablecoins in the decentralized finance sector currently, with the lending rate going as high as 10-12% and borrowing rate up to 19%, as per DeFi Rate.

According to the proposal, over-collateralization is the basis of DeFi with more collateral present than the asset minted, providing room for incentivizing a third party to pay back the debt on behalf of borrowers.

And “MakerDAO protocol is heavily overcollateralized,” it states. The proposal further mentions that the protocol has also proved itself to be resilient during the March crash.

The D3M explores an alternative path to bring more liquidity in secondary DAI venues by minting DAI backed by aDAI and a potential new tool to stabilize DAI peg. aDai is an automatically-generated, native token to the Aave protocol issued to a user who supplies DAI into the Aave protocol. AAVE 5.71% Aave / USD AAVEUSD $ 377.85
$21.585.71%
Volume 261.74 m Change $21.58 Open $377.85 Circulating 12.48 m Market Cap 4.71 b
6 h MakerDao Proposes D3M to Integrate with AAVE & Expand Stablecoin DAI Across DeFi 1 d Bitcoin Takes A Dive & Altcoins’ Drop Hard, But People Are Still ‘HODLing and Not Selling’ 1 d Balancer Labs Has ‘Zero’ Involvement in Algorand; V2 Launch is the Sole Focus

According to Sam MacPherson, smart contracts facilitator at Maker (MKR), this will benefit both the protocol. For Aave leverage seekers, it means not getting stuck in a position with double digits interest rates, and for Maker, DAI supply expansion to reduce reliance on USDC.

This proposal will further help Maker attract borrowers, more revenue, expand DAI supply, and if Aave starts a Liquidity Mining program, then collecting AAVE and earning governance rights in it.

The Aave community is deploying new liquidity pools across various L2 solutions, which means more DAI can bridge into pools to transact affordably. Aave can essentially become the distributor for DAI on every L2.

All of this will be achieved by the D3M module mining and directly depositing freshly minted DAI into the Aave V2 protocol.

“The D3M has a target rate for limiting the size of the deposit and ensuring DAI to be the most competitive asset to be borrowed on Aave compared to other stablecoins,” states the proposal.

MakerDAO basically aims to expand its stablecoin across DeFi and ensure its market position amidst the rise of new stablecoins.

“Yet another example of how deeply integrated Maker is across DeFi,” commented Ryan Watkins, a researcher at Messari. “Now becoming a bank for banks.”

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Author: AnTy

Decentralized Exchange, Uniswap, Accounts for 80% of The Daily Active DeFi Users

Decentralized Finance (DeFi) recorded a marked year-over-year increase in adoption and usage across the board despite suboptimal user experiences such as UX and gas fees.

“Remember the Internet was slow, clunky & expensive once. L2s launching this year will make DeFi more accessible – faster, better, cheaper,” noted Santiago R Santos, partner at Parafi Capita.

Total value locked (TVL) in DeFi had a 75x growth to $43.5 billion. In terms of stablecoins, their supply grew ~7x to $43 billion YoY, while total borrowing volume across money markets has increased 100x to $9.9 billion.

As for the most popular DeFi protocol, decentralized exchanges (DEX) have seen a growth in their active users.

Over the past year, these active users have grown from a mere 3,000 to the current 67,000. Interestingly, Uniswap accounts for 80% of these daily users.

The popular DEX, which accounts for 60.4% of the total DEX weekly volume market share, recently announced that its much-anticipated V3 is coming in early May, with a special emphasis on increasing capital efficiency.

ThorChain (RUNE), a decentralized liquidity protocol, meanwhile, argues that with V3, Uniswap is making “LP’ing active” — “Active LPs are going to destroy the passive LPs. It’s going to return the edge to desks and bots.”

Another interesting facet of this upgrade is the use of Business Source License (BSL) 1.1, which restricts the use of V3 source code for two years. Another popular DEX SushiSwap, which is moving into lending, started as a fork of Uniswap.

While Uniswap (UNI) can really use the license against v3 forks, it comes “mostly, at a cost,” said Jake Chervinksy, General Counsel at Compound Finance.

“It’s crucial for DeFi protocols to be free & open-source software,” said Chervinsky noting that that is why most DeFi protocols are launched with fully open-source licenses like MIT, BSD, & GPL.

He explained how while people might think enforcing copyright rules against anonymous developers won’t be possible, making the licenses useless, that is not true.

Not only most dev teams aren’t fully anonymous, especially as a project succeeds, but developers aren’t the only viable target, Chervinsky said.

“US law also allows copyright holders to sue third parties for “contributory” copyright infringement even if they didn’t commit any infringing acts directly. Other theories of secondary liability may apply to third parties too,” including those who adopt, support, or use it such as exchanges, DEX aggregators, investors, LPs, and MMs.

Also, enforcement is not the only way; the threat alone is enough at times.

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This may come at a cost, though, as “it’s crucial for DeFi protocols to be free & open-source,” and many people in the sector also feel strongly about it, he said.

Still, “BSL 1.1’s two-year delayed conversion to GPL seems to strike a fair balance between creating a copyright moat & open-sourcing the protocol. Personally, I like it a lot, especially since UNI holders can accelerate the conversion at any time. Governance decides,” Chervinsky said, adding, “it’s an elegant bit of legal innovation for DeFi.”

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Author: AnTy

FinClusive Partners With Stellar (XLM) to Enhance Stablecoin Payments Across Institutions

FinClusive Partners With Stellar (XLM) to Enhance Stablecoin Payments Across Institutions

New York-headquartered compliance firm, FinClusive announced a strategic partnership with Stellar USDC on Thursday in a bid to “enable businesses to access and leverage stablecoins instantly while staying compliant.” According to the report, the new alliance will enhance crypto-focused payment innovations while creating confidence among market participants due to compliance checks.

Integrating Stellar USDC gives users (corporations, institutions, banks) a fast, low fee, and convenient channel to complete financial transfers across borders.

FinClusive integrates compliance-as-a-solution (CaaS) to enable financial firms to enhance their financial inclusion products across the globe. The partnership with Stellar to incorporate the second largest stablecoin, USDC, will allow corporations to conveniently and instantly make cross-border payments while staying compliant and minimizing the transaction fees.

“Thanks to USDC, businesses using FinClusive can worry less about enduring prolonged settlement times or fluctuations in the value of their transactions.”

FinClusive selected Stellar USDC over Ethereum’s USDC as the former provides a cheaper platform to transact. Providing low fees and convenience will see the strategic partnership enhance stability and security, accelerating financial inclusion across businesses further.

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Author: Lujan Odera

US Tax Authorities Discusses Taxing Digital Currencies; Each Standard Method Has Trade-Offs

  • Tax regulators across the U.S. are debating on the trade-offs in taxing digital assets, Bloomberg Law states.
  • Erika Nijenhuis, a senior counsel at the department’s tax policy office, said at a virtual conference on Thursday.

The world’s largest economy is looking for ways to increase revenues, including taxation of digital assets and cryptocurrencies. During a virtual interview at the OECD’s 2020 Global Blockchain Policy Forum, senior counsel at the Treasury Department, Erika Nijenhuis, stated the U.S is developing domestic reporting rules on taxing cryptocurrencies.

In their quest to find the best models, the tax regulators are debating different tradeoffs that proposed tax models offer, including the risk factor approach and the direct reporting of tax from crypto transactions.

The authorities are looking for a balance that will be efficient in collecting the tax proceeds. This ranges from checking the burden placed on the crypto-taxable parties such as crypto money transmitters and exchanges and how to enhance compliance across these firms. Nijenhuis said,

“There are trade-offs among all of them, and we are hard at work thinking about all of those issues.”

“None of those are easy questions.”

The U.S. Internal Revenue Service (IRS) has been at the forefront of taxing crypto assets in calling for clarity on taxing these assets.

Earlier in the month, David W. Klasing, a boutique Californian tax firm, reported that the IRS looked into Coinbase accounts to catch offenders who do not comply with the platform’s reporting tax standards.

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Author: Lujan Odera

Digital Yuan Pilot Records $300 Million in Transactions But No Launch Yet, says PBOC Governor

The pilot program on the digital yuan rollout across four cities – Shenzhen, Suzhou, Xiong’an, and Chengdu has been smooth, said Yi Gang, governor of China’s central bank People’s Bank of China.

Over 4 million transactions, totaling more than 2 billion yuan ($299 million) in the digital currency so far, have been made, he said.

As per the figures, the digital yuan pilot expanded 21% and 82% from the 3.3 million transactions valued at 1.1 billion yuan, respectively recorded in late August, according to South China Morning Post.

The PBOC pilot discovered 12,000 use cases for DCEP, up 80% from 6,700 ways as of late August. Yi said,

“So far, the experiment and pilot program have been (going) fairly smoothly.”

Legal Framework Needs Completion

The comments were made during the Hong Kong Fintech Week conference on Monday, where Yi was speaking on a virtual panel with Agustin Carstens, head of the Bank for International Settlements, and Klaas Knot, president of the Dutch central bank.

Despite the digital yuan usage expanding rapidly across Chinese cities, Yi said they are in the early stages of developing a central bank digital currency. On the launch of digital yuan, Yi said China first needs to complete,

“A fairly complicated, and complete legal framework and regulations (for digital yuan) that enhances its transparency.”

With DCEP, the world’s second-largest economy is accelerating towards a cashless society. The country’s digital payments transaction volume has actually been expected to surge to 412 trillion yuan by 2025, up from 201 trillion yuan last year.

A Global Framework for CBDC

As we reported, the central bank published a draft law last week aiming to provide the DCEP a legal status.

Yi didn’t say anything about that on Monday but said the PBOC had completed the architectural design of the (CBDC). He further reiterated that the pilots would also run at the Winter Olympics in 2022, for which QR codes, tap-and-go transactions, and other features will be available.

During the panel, which was moderated by the Hong Kong Monetary Authority’s chief executive Eddie Yue, Yi said the PBOC would also collaborate with other central banks to establish a legal framework for CBDs globally. Yi said,

“I would like to cooperate with the Bank of International Settlements, the Financial Stability Board and international central bankers to discuss a legal framework, [fostering] transparency and how to safeguard [the development] of central bank digital currencies.”

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Author: AnTy

4,000 ETH Worth $1.6 Million Deposited at Binance Right Before the 4.5% Drop in Price

Over the weekend, the crypto market enjoyed a green sweep across the board.

Bitcoin jumped past $14,000, marking a 34-months high on the 12th birthday of its whitepaper. Following BTC, altcoins also recorded some gains, with ETH going back above $390.

However, today, Bitcoin’s price went down from about $13,800 to as low as $13,200. A fall of more than 4% in the price of BTC has altcoins in red too.

One potential reason for this decline could be another China-based exchange, Huobi being under investigation. However, the team assured its users that “assets are safe, and everything is fine.”

Corrections are to be expected after BTC rallied from $10,580 to the highest close ever. Although market participants believe this bull cycle is nothing like 2017 because the crypto space is maturing, adoption is rising, and infrastructure is improving; pullbacks happen all the time. So did nine times, of about 30%, in 2017.

Meanwhile, the second-largest cryptocurrency Ethereum (ETH) started the day on a bullish note as it moved past $400 only to get down to the $382 level, back to the weekend level before it started moving up.

Interestingly, before the breakdown, 4,000 ETH, worth $1.6 million, were deposited at the leading cryptocurrency exchange Binance.

At the time of writing, ETH/USD has been trading at just above $385.

“Surprise surprise, eth/btc rekt, since losing that key 31k sat support and now in the 27k sats zone, however still thinking it goes a bit lower before i’ll be looking for any bottoms. Getting close now but BTC still king for now IMO,” noted one trader.

Ethereum usually leads the cryptocurrency rallies, but this time, Bitcoin is outperforming the altcoins.

As we saw with year-to-date returns, ETH recorded 192.5%, while BTC only returned 85% YTD. But this month, the momentum shifted, and Bitcoin made a new 2020 high and then broke the 2019 high as well. BTC is up 26.63% in the past 30 days, while ETH’s returns have been only 10.5% during the same period.

“There’s a lot of ETH bearishness recently,” noted quant trader Qiao Wang.

“I’m also of the view that ETH will underperform BTC in the next bull cycle. But only slightly. And I want to explore arguments for why this thesis may be wrong, i.e., why ETH could outperform BTC.”

According to Wang, a significant percentage of the population does not get the “digital gold” narrative, and they are more comfortable with the “tech platform” that ETH represents.

“Most of this new inflow from tech people is likely going to be in ETH because ETH is the best index play,” said Wang adding, “it also takes a lot less money to move ETH than to move BTC given their relative size.”

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Author: AnTy

Bitcoin Comes to the Rescue of Nigerian Protesters as Account Gets Suspended

It’s been more than a week now that people across Nigeria have been protesting against police brutality and demand reform and accountability.

The younger generations are using social media to document the event in real life to amplify their cause and counter false narratives.

The youth-led rallies in several parts of the countries target the federal Special Anti-Robbery Squad (SARS). Authorities have announced that SARS will be disbanded, but the promise is not enough to quell the anger.

Nigerians continue to protest and fight for accountability, calling for an end to police violence and a complete overhaul of the system.

As part of the protests, various organizations have been asking for support. One such activist, the Feminist Coalition Group, which has managed large funds, reported having its accounts suspended.

“For demanding an end to police brutality, we are now under attack! Our bank account has been deactivated, and so has the Flutterwave donation link. Our members lives are also being threatened!” it was written on twitter earlier this week.

Amidst this attack, Bitcoin came to the rescue as the official twitter account of Nigerian feminists fighting against the injustice of SARS through peaceful protests, fundraising, and social media organization shared the option to donate with BTC.

The platform accepts BTC through BTC Pay Server, a self-hosted cryptocurrency payment processor, which is a “free, secure, and censorship-resistant platform.”

Already, over 180 transactions have been made to their addresses and raised about $10,800 (0.94749255 BTC) at the current BTC price.

Twitter CEO Jack Dorsey, a Bitcoin proponent, also mentioned the protest in several tweets and asked people to donate via BTC to support the protest.

“Donate via Bitcoin to help EndSARS,” tweeted Dorsey.

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Author: AnTy

Lightning Network’s Ready for the Next Step in its Evolution; Bitcoin Capacity Across Channels Hits Peak

The cumulative capacity across all channels on the layer 2 solution of bitcoin Lightning Network has hit an all-time high at 1,106 BTC, worth about $11.8 million at current bitcoin prices, as per 1ML.

The previous high was in early May 2019 at 1,099.7 BTC, worth about $6.5 million at that time.

Source: Bitcoin Visuals

The number of channels is also approaching the peak of 40k from mid-March 2019, as it currently hovers around 37,600. As for the number of nodes that open payment channels with each other funded with BTC, it is above 7,600.

Amidst this, Lightning Labs, which maintains the Lightning Network Daemon (LND) implementation of the Lightning Network, started supporting Wumbo with the release of Ind 0.11-beta — channels over the 0.1677 BTC limit originally imposed to discourage users from putting too much money into the early software.

This latest development means “the software has progressed to a point where advanced users, companies, and node operators can opt into larger channels.”

“Enabling Wumbo was our signal to the rest of the world that the Lightning Network is ready for the next step in its evolution,” states Lightning Labs.

This evolution involves a world where Lightning nodes are as “ubiquitous as the TCP/IP driver,” and every device from the mobile phone, laptop, desktop, router, and network switch can send/receive payments, authenticate themselves, and send end-to-end encrypted messages without a trusted third party.

Just last week, Lightning Labs also added accounting reports to the suite of tools for Ind to help users track sats. And with Wumbo and Faraday, it expects more and more companies to enable Lightning for its users.

Blockstream, which maintains the c-lightning implementation, also updated its tech stack in the form of channel management and routing tools.

The latest version 0.9.1 of c-lightning improves the likelihood of larger transactions to find a route between the sender and receiver while removing the bugs to make the process more efficient.

Additionally, with multifundchannel plugin, it is now possible to open multiple channels with a single transaction.

Also Read: Bitfinex Launches Wumbo Lightning Network Channels

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Author: AnTy

A Dose of Hopium Amidst the Bitcoin Market Sentiments Turning to ‘Fear’

With so much red across the crypto market, the market sentiment has taken a drastic turn.

Until yesterday, the market sentiments were of “extreme greed” with a reading around 80, on a scale of 1-100, as per Crypto Fear & Greed Index. The crypto market has been in “extreme greed” ever since late July.

But yesterday’s correction resulted in a sudden decline to a reading of 40, which translates to “fear” last seen in early July when bitcoin was around $9,100.

Crypto Fear & Greed Index
Source: Crypto Fear & Greed Index

The sentiment makes sense, given that bitcoin nearly dropped to $10,000 level in over a month. The crash in the prices of the leading digital currency also sent altcoins in a free fall.

Overall, the crypto market cap lost $60 billion but is currently seeing a small rebound as bitcoin trades at $10,450 with altcoins making a recovery as well.

However, analyst Rekt capital notes, “In the bear market, BTC was in a macro downtrend with relief rallies on the way to new yearly lows. In this bull market, BTC is in an overall uptrend with small pullbacks on the way to new highs.”

Given that crypto markets were influenced by the stock market where tech stocks experienced a sharp reversal, we need to pay attention to the last trading day of the week for the US stock market and, of course, the U.S. Dollar Index, which seems to be gaining strength.

Amidst this somber mood, the popular analyst “Nunya Bizniz” shared the hopium that calls for stacking the sats in anticipation of a bullish wave.

Comparing the 2015 market structure, currently, we are retesting the descending trend line on the weekly just like we did at that time. After the successful retesting five years back, the digital asset had a rally of 8,000% into the all-time high of $20,000 in December 2017.

Source: TradingView

Also, it is nothing out of character for bitcoin to fall this much. As a matter of fact, if bitcoin drops to $8,000, even that won’t be out of the ordinary. During the past cycle, the flagship cryptocurrency had about nine such retracements, where it fell 30% to 40%.

If anything, it is a good buy the dip opportunity.

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Author: AnTy