Saddle Finance Raises $4.3M; Launches A Slippage-Free AMM for DeFi Tokens

Saddle Finance Raises $4.3M; Launches A Slippage-Free AMM for DeFi Tokens

  • Saddle Finance, an automated market maker, launches a $4.3 million funding round from top VC firms in the crypto sphere.
  • The platform will offer Bitcoin backed tokens, including wrapped Bitcoin (wBTC).
  • DeFi AMM platform, Curve, accuses Saddle of copying its algorithm.

Saddle, a VC-backed AMM, went live earlier this week, allowing users to deposit, withdraw, swap, and provide liquidity on the platform. The project raised $4.3 million from top crypto venture capital firms, including PolyChain Capital Framework Ventures and Electric Capital. Other investors who participated in the funding round include Coinbase Ventures, Dragonfly Capital, Alameda Research, Divergence Ventures, and Nascent.

The volatility of crypto markets increases the slippage chances, difference between expected (order) price and the execution price, even across stablecoin pairs, Sunil Srivatsa, founder of Saddle and a former Uber senior software engineer, said in an interview.

Saddle is built to minimize slippage chances across different tradable assets such as stablecoins and tokenized assets. Saddle users can now choose amongst four tokenized Bitcoin liquidity pools, namely tBTC, wBTC, renBTC, and sBTC, to swap tokens or provide liquidity. Sunil further stated,

“So one of the problems that we’re setting out to solve is to unlock deep on-chain liquidity for pegged value crypto assets basically. That means you’re able to make trades and lose a very minimal amount to slippage and transaction fees.”

The platform will use Synthetix’s virtual synths, ensuring the trades are completed instantly and prevent any slippage while trading.

Curve claims Saddle copied their code

The launch of Saddle has not been taken on good terms with another AMM platform, Curve Finance, who claim the former copied their algorithm. Curve Finance is an AMM that provides stablecoin liquidity pools, different from Saddle’s tokenized Bitcoin liquidity pools.

In a tweet responding to the difference the two platforms had, Curve Finance blasted the similarities in code between the platform, claiming they have “the same math.”

In a statement first made public on Crypto Briefing, Curve Finance elaborated that Saddle “used the same algorithm.” Furthermore, the QuantStamp audit on the project stated they “were not able to determine how the developers derived formulas copied from Curve’s StableSwap whitepaper.”

The audit further claims that Saddle could be vulnerable to an attack previously noticed on Curve since the smart contract is typically the same.

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Author: Lujan Odera

DeFi Trading Startup, Dharma, Adds Ability to Buy Tokens Directly from Bank on UniSwap

Dharma, a DeFi-focused startup, has been given the green light to enable Automated Clearing House (ACH) trading for DeFi tokens within 13 states in the U.S. The startup, backed by Coinbase, has been making major strides in the burgeoning DeFi space, with the latest integration of the Uniswap DEX a few months back. The startup is optimistic about becoming the ‘Robinhood’ of crypto as per earlier comments from its CEO, Nadav Hollander.

“Our goal in building ‘the Robinhood of crypto’ is to bridge the final gap between these blossoming markets and the millions of individuals who will want to tap into them as they gain popularity and mindshare.”

The ACH service by Dharma will enable its U.S clients to make direct DeFi token purchases from their bank accounts. According to the milestone update, users will incur a 1.5% fee while the weekly purchase limits have been capped at $25,000. U.S states where this service is available to include Wyoming, Wisconsin, New Hampshire, Washington, Virginia, Texas, Pennsylvania, Montana, Michigan, Massachusetts, Georgia, California, and Arizona.

With the ACH service in place, Dharma’s prospects of pivoting as the ‘Robinhood’ of crypto have increased; Nadav noted that DeFi trading with their application would undoubtedly make the participation process simpler,

“Investing DeFi has, up until now, been a bifurcated and highly technical process. Now, it’s as easy as downloading an app and connecting your bank account.”

Notably, Dharma had earlier incentivized user participation by offering to cover the gas fees coupled with a no-fee, no-gas promotion in August. Its newly integrated ACH services are being supported by APIs from a Fintech giant dubbed ‘Plaid.’ Nadav told CoinDesk in an email that they are leveraging services from an active crypto-focused bank. However, he did not disclose the name.

“We are processing ACH transfers through a direct partnership with a well-known bank active in the crypto space.”

Dharma’s journey in the DeFi space has evolved quite fast; the startup secured $7 million in a funding round back in February 2019. At the time, Dharma’s focus was an Ethereum based lending service; it later moved to stablecoin-oriented savings and finally the Uniswap integration.

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Author: Edwin Munyui

Cream Finance Announces AMM, creamY, with Several Innovations that ‘Make it Stand Out’

Cream Finance has introduced an automated market maker (AMM) which focuses on low slippage and fees of stablecoins.

Combining Curve’s very low cost and very high-efficiency feature and Balancer’s updatable for addition or removal of an asset from the pool — unlike Uniswap or Curve pool, which are immutable — creamY has created a “dynamically updateable AMM which consolidates liquidity.”

Besides being dynamic and capital-efficient, this AMM allows users to hold or transact with yielding and provide liquidity using one token.

According to yEarn Finance’s Andre Cronje, who partook in the discussion of the project, the design of creamY. it “can alleviate a lot of the current liquidity pain-points.”

Coming up with innovations such as consolidated liquidity, a mixture of a shared order book, a governed liquidity pool, and allowing single-sided liquidity is what makes it “stand out,” said Cronje.

Right from the launch, It will support exchanges for stablecoins, BTC, and ETH.

It will be supporting cryUSD including USDT, USDC, TUSD, BUSD, yCRV, yyCRV, yUSDT, yUSDC, yTUSD, cUSDT, cUSDC, crUSDT, crUSDC, and crBUSD; cryBTC covering wBTC/renBTC/tBTC/crRENBTC/cWBTC/ycrvRenWSBTC, and cryETH inclusive of WETH/yETH/crETH/cETH.

Although the code of the protocol has been reviewed by several developers and is currently in the final stages of it, like all the DeFi projects, it hasn’t been through production testing yet.

According to the official announcement, creamY will launch with “strong incentive rewards” in CREAM tokens form, which will be escrowed until the end of the LP period.

For now, the CREAM token of the lending protocol with a TVL of $241 million, is trading at $118, up 2.63% since Sunday in line with the broad market.

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Author: AnTy

Brazil’s Atlas Quantum, a Bitcoin Trading Firm, Has 1 Day to Give Back Investors’ Money Over $250K of BTC

A court in Brazil has given 24 hours for a company operating in automated bitcoin to refund the money to the two investors it has. In the past few years, Atlas Quantum platform as allegedly faced a lot of difficulties withdrawing funds and making profits since the securities regulator in the country took strict action against it in August.

In a BelnCrypto Brazil report, the Atlas Quantum will have to deposit a total of $250,000 in bitcoins to refund its two aggrieved investors. One of these investors has been in and out of court on the issue since the 4th of September, 2019.

This company is based in Brazil and is responsible for identifying prices and differences in in price in cryptocurrency trading across the various trading avenues on behalf of its customers. The company will then buy a digital asset at the lower price and sell it to customers at a higher price to make a profit.

Reis explains:

“For one, two or three people it is possible to do the operation on time. However, as there are many clients, it is difficult to get the same values ​​for all and, in this case, the investor can lose money.”

According to the bitcoin expert Guilherme Reis, this type of business can truly generate huge profits. Although, the methods are less effective the more people do not buy the bitcoin. Suddenly there are huge amounts of pressure to sell and still make profits to appease the investors. Lack of the necessary withdrawals has led the company’s investors to take the drastic measures.

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Author: James W