Curve Finance Kills the New yv2 Pool After Discovering an Issue

Curve Finance Kills the New yv2 Pool After Discovering an Issue

Both Curve and Yearn team assure that “All funds are safe,” and no other vaults are affected.

Decentralized exchange Curve Finance reported an issue with its new trading pool that involves the DeFi protocol Yearn Finance. Curve reported the vulnerability on Monday morning, further announcing the shut down of the pool. The team noted,

“We have discovered an issue with the new yv2 (@iearnfinance) pool. The pool has been killed in order to protect LPs.”

But they assured that the issue wasn’t fundamental and there has been no loss of funds. Additionally, the funds will be returned to the addresses that supplied them. The team added,

“All funds are safe. Deposits will be sent directly to liquidity providers’ wallets, no further action is required to withdraw.”

The popular stablecoin DEX, Curve, launched in 2020, is the fourth largest DeFi protocol by total value locked (TVL) of $3.85 billion. The native token of the project is currently trading around $3.19, putting its market cap at $680 million.

Curve basically allows users to swap between stablecoins like DAI, USDT, and USDC at low fees and slippage. Users who provide liquidity on the platform earn yields on an annual basis, which comes from the interest paid by stablecoin borrowers.

Today’s issue with Curve was specifically regarding the yearn “v2” pool that got exploited. Yearn Finance is a yield aggregator that saw its “v1 yDAI vault” exploited just last week and lost more than $11 million in the process.

While the attacker got away with $2.8 million, Tether CTO Paolo Ardoino announced that Tether, “a centralized stablecoin using blockchains as transport layer,” had frozen the stolen 1.7 million USDT.

“Recent yv2 pool issue doesn’t affect any of yearn vaults. Funds are safe,” assured the Yearn team on the latest issue with the “v2” pool.

Yearn’s YFI token has a market cap of $1.16 billion and, as of writing, is trading around $31,800.

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Author: AnTy

These 2 DeFi Forks Take a Harsh Beating As The Originals Reclaim Their Dominance

Up until the mid of last week, Curve clone Swerve was enjoying a record $942 million in deposits, or total value locked (TVL), as per Debank.

But today, the protocol has just $69 million of funds left in it, suffering a loss of 92.6%. It took less than half of the days for Swerve to lose $873 million than it took to gain these funds.

But what exactly was behind this crash? Two words: Incentive rewards.

Over the weekend, SWRV issuance was reduced to 9 million SWRV per year from the previous two weeks. With this new chapter, the users fled the scene, and the price of SWRV lost the bulls. It is currently trading at $1.9, after having been on a downtrend since Sept. 9 high of $7.

On Sept. 19, the volume on the platform was at its highest at $220.6 million, which also tanked to $25 million the next day.

“Swerve’s liquidity was just mercenaries searching the highest yield,” said Ryan Watkins of Messari. “Forking is easy, building is hard.”

On the other hand, the original DEX Curve is the third-largest DeFi project currently with a TVL of $1.26 billion, which over the weekend, nearly hit a new record. The volume on the platform also continues to grow, registering $419 million the same day Swerve tanked, which means Curve has taken back all the liquidity from its fork.

Although SushiSwap isn’t experiencing as much loss as Swerve, things aren’t better for this Uniswap copycat, either.

Since hitting $1.58 billion record TVL at the beginning of September, the crypto deposits on the platform have been on a downtrend, hitting $453 million today. The same is the case for its volume, which has continually decreased to $41 million from the high of $265 million on Sept. 10.

This DEX is also set to lock up SushiSwap rewards for six months to decrease circulating supply and further hard cap the supply at 250 million tokens.

The original Uniswap, meanwhile, was all the rage this week with the launch of its governance token UNI. This helped the protocol become the largest DeFi project with $2 billion in TVL.

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Author: AnTy

Swerve Amasses $600 Million in Deposits; Over 60% of Curve within a Week of Launch

Swerve Finance, an unaudited fork of DEX Curve Finance, has amassed more than $600 million in deposits or the total value locked (TVL) in the protocol.

In under a week, this decentralized finance protocol has gotten about 60% of Curve’s deposits, which currently stands at just under $1 billion.

This week, cryptocurrency exchange Poloniex also listed the SWRV token against USDT. Currently, the token is trading at $4.88, down 87.5% from its all-time high hit on the launch day itself.

“Swerve has the best rate out of any exchange for USDC, USDT or TUSD to DAI by both exchange rate and transaction fee! Get some stables and collect your comfortable APY,” boasts the decentralized exchange.

Swerve is fast catching up to Curve. However, volume on the former platform is not strong enough, yet The daily volume recorded on Swerve Finance is just about $15 million compared to Curve’s $135 million.

Curve is the second biggest DEX after Uniswap, which registered $1.3 billion of volume in the past week, accounting for 22% of the market share, compared to Uniswap’s nearly 65% share.

Overall, DEXs are seeing huge growth in 2020, recording $11.6 billion in total trading volume in the month of August. Now in September, already $10.9 billion in combined volume has been seen, as per data source Dune Analytics.

Swerve cloned Curve, a decentralized exchange protocol for trading stablecoins, with the key difference of the latest project being “100% community-owned and governed,” which means SWRV is generated by users with deposits right from the beginning.

Curve’s token CRV’s launch, however, was a botched one. Before the planned schedule, an anonymous developer front-run it and deployed the smart contract with some accusing the protocol of pre-mining the tokens.

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Author: AnTy

Curve Fork Swerve Finance (SWRV) Locks in over $400 Million within a Day of Launch

After the Uniswap forks, it’s time for another hot DeFi project, Curve, a stablecoin-to-stablecoin DEX.

Curve’s clone Swerve Finance is an unaudited decentralized finance protocol that has over $410 million locked within 12 hours of its launch and a volume of $55.4 million.

The protocol aims to be “100% community-owned and governed,” allowing users to generate SWRV tokens with these deposits.

“It’s a simple 33,000,000 supply owned entirely by you, the community of liquidity providers and users. If you provide liquidity to Swerve, you get ySWRV tokens, which can be staked in the Swerve DAO to earn $SWRV.”

With “no questionable pre-mining,” which means the team members or early investors won’t be allocated any tokens, Swerve refers to Curve’s token CRV’s forced launch last month.

Swerve’s launch, however, wasn’t issue free either as the protocol launched with a bug, now addressed, that prevented users from interacting with contracts.

Curve Finance was launched in January 2020 and is one of the most popular DeFi projects with more than $1 billion of total value locked (TVL). After Uniswap, it is the second-most popular DEX and fourth-largest project in the DeFi world.

This project allows consumers to trade between stablecoin with the lowest slippage thanks to high liquidity allowing users to lose less marginal profit. While growing, the protocol continues to face grievances in the form of control over the project and unfair voting rights.

Yearn Finance creator Andre Cronje found Swerve Finance’s design “very intriguing” stating, “What Swerve did was add a proxy pattern, so the implementation is the copyright curve contract. But the storage is Swerve. This abides by the copyright, but also allows a full feature fork. Both from a legal and technical perspective, this is really smart.”

SWRVE token is currently trading at $12.16, already losing 66% of its value from the all-time high of $39 hit earlier in the day, as per CoinGecko.

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Author: AnTy

YFI Opening the ‘Floodgates for BTC Hodlers into DeFi’ as it Adds ‘Curve sBTC yVault’ to Yearn.Finance

YFI has passed the latest proposal “YIP 39 – Curve sBTC Pool LIP-Tokens yVault” with 98% votes and 40.48% quorum. The weight of Curve sBTC will increase from 17% to 48% on Thursday.

This development would bring a lot of Bitcoin to Ethereum, which has already reached 46,694 BTC worth $534 million.

The idea of the YIP-39 proposal is to capture the $214 billion in AUM from bitcoin holders by allowing them to “passively grow their BTC holdings.” This would be done by using voting power to increase sBTC pool CRV returns and create a Vault for sBTC Curve Pool LP-token holders — which works almost identically to the yYFI and yCRV vault — who deposit renBTC / wBTC / sBTC in Curve Pool.

“Harvest CRV, sell it for more LP-tokens or renBTC, which is then re-deposited to create, distribute and compound LP-token growth,” states the proposal.

With the YIP-39, the YFI community aims to generate “significant goodwill from Bitcoin holders,” by presenting them with other use cases of the holdings.

It also mentions how currently the most confident BTC holders are only depositing and recycling or farming CRV.

“This can become a black hole for BTC deposits into Curve via renBTC and LP tokens into yVault for passive returns and governance fees,” it adds.

Move where the Money Is

For quite some time now, the YFI community has been discussing bringing BTC, the standard in the crypto world, to Yearn.Finance, which “would open the floodgates for BTC hodlers into defi.”

The rationale behind this has also been to bring a “greater” share of CRV rewards and wBTC revenue into the fold and to maximize AUM to get “governance control of other platforms.”

While “pure” bitcoiners will prefer to keep their BTC in multi-sig and not earn yield and some will go for crypto lenders BlockFi and Aave’s Lend, “there is a huge cohort of btc holders who want yield and will move to where the money is,” noted analyst Ceteris Paribus.

However, there are risks given that the “experimental” projects of DeFi continue to see a loss of funds along with the “Ethereum/smart-contract/synthetic risk.”

But there is also the advantage of higher yield, currently ~50%, maybe >100% soon, and not to mention there is no need for KYC.

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Author: AnTy

‘Ops’ Curve Finance ‘Overreacted’ & Seized Nearly 80% Voting Power for First Proposal

Curve Finance, the decentralized exchange liquidity pool on Ethereum, is currently voting for its very first proposal. As per this proposal, the project is looking to introduce a new Compound COMP-enabled pool to Curve Finance with DAI and USDC. It also proposes to boost incentives for liquidity providers of COMP.

Additionally, the proposal further involves a suggestion to introduce a withdrawal fee of 0.02%, which would be used to burn CRV, governance token of Curve, for this pool.

To vote, users have to obtain a separate voting token veCRV. Those who want to vote through the Curve DAO have to lock their tokens and vote with veCRV. Having large amounts of veCRV means, one can submit their own proposals as well.

Interestingly, the voting power is affected by the length of the period, a maximum of four years, the token is locked. As such, the longer the CRV tokens are locked, the higher the voting power.

Launched less than ten days ago, only a small portion of CRV tokens has been locked up, just 6.7% of the 10 million CRV tokens, which has been because of the gas prices, making it difficult for smaller liquidity providers to claim and lock their CRV.

According to the Curve Finance team, the goal of its CRV token is to “incentivise liquidity providers,” and get the users involved in its governance.

CRV meanwhile is struggling as it currently trades 94.4% lower than its all-time high, hit the day of the launch. Unlike the token price, Curve Finance enjoyed a growth of 338% during the same period to surpass $1 billion in total value locked in its protocol. The project has also crossed $2.5 billion in cumulative volume.

Concentration of Power

The voting process for the proposal saw the founder of Curve Finance take over 79.8% of the voting power, noted yEarn Finance founder Andre Cronje. He added,

“Since founder rewards are significantly higher than LPs and other voters, pretty much locked everyone else out. So guess voting is pointless now.”

Cronje further shared that he doesn’t mind any of this and thinks it’s “good the founder has arguably the most control, and there is nothing wrong with that.”

Curve reacted to this with, “Ops. Too bad,” adding,

“That was a reaction to 0x431 taking 50%, but the founder overreacted. The founder will abstain from voting now until more people votelock.”

The community has until August 28th before the governance system is up. To decrease the founder’s power to 50%, they only need to lock up to 150 million CRV.

Currently, in limbo, the project is waiting for a quorum to pass it, which is expected to be fixed in the coming days as voting power balances.

The decentralized nature of DeFi governance systems has been coming into question lately. The concentration of tokens in these systems is actually not better than the ownership structure in JP Morgan Chase or Bank of America, said TokenDaily in its report.

For instance, over 13% of voting power for Compound is controlled by the top 10 addresses.

This is because DeFi governance tokens offer a “unique opportunity to influence the direction of open protocols that are otherwise nearly impossible to control,” a power not unlike what is allotted to shareholders.

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Author: AnTy

Plenty Reasons to be Bearish on Equities, Would be Bullish for Bitcoin: Fundstrat’s Tom Lee

Plenty Reasons to be Bearish on Equities, Would be Bullish for Bitcoin: Fundstrat’s Tom Lee
  • Trade wars, inverted yield curve, Fed cuts, Brexit, among many other reasons call for bears on equities
  • This will have a bullish impact on Bitcoin which is turning green and surging above $8,650
  • Fundstrat founder Tom Lee took to Twitter to share a list of reasons that calls for being bearish on equities.

The trade war is at the top of these reasons that is showing no signs of slowing down any time soon. The US and China are already seeing the effect of this ongoing war and now India has also joined the trade war with the US by imposing retaliatory tariffs on 29 US products.

As Trump’s trade wars rattle investors, Wall Street is reaching for the security blanket which is a new Federal Reserve rate cut. When the Fed officials meet next week, they are expected to clear the way for a July interest rate cut to help the US economy make it through a period of slow growth and potential impact of trade wars.

David Rosenberg a prominent Canadian economist says the Fed will cut the rate all the way back to zero while the world’s biggest economy is already in a recession.

Earlier last month, US Treasury yield curve inverted again for the first time since March, foreshadowing an economic recession.

Senior economists from political parties of both sides are also saying that it may not work as smoothly and can pose risks to America’s decade long recovery as the 2020 presidential election draws nearer.

United Kingdom’s withdrawal from the European Union or the Brexit has already shaken the markets and affected currencies and is yet to come to a conclusion.

An interesting but very true one is that tweets control the markets. We saw it when Elon Musk announced that he will take Tesla private ($TSLA stocks jumped 11%), Musk wielded this power before in 2013 as well.

President Trump is famous for using Twitter to attack political foes, trading partners, and media companies, that has visible effects on the market.

Bullish Momentum for Bitcoin

While these factors and more are behind the bears in the equity market, Lee believes this will have a “bullish” impact on Bitcoin.

BTC/USD is currently trading at $8,666 with 24 hours gains of 5.24 percent while being up 134 percent till date in 2019.

Recently, Fundstrat’s technical strategist Rob Sluymer that has been recommending investors to be patient following the 60 percent surge in May now says there’s early evidence of renewed potential for gains as Relative strength index momentum gains to turn upward from neutral.

“Another upside attempt appears to be developing for most cryptocurrencies. Increase exposure. We expect Bitcoin to stage another rally from current levels toward next resistance between $8,800-$9,000,” Sluymer wrote.

Bitcoin’s price is $8,839.42 BTC/USD exchange rate today. The real-time BTC market cap of $157 Billion currently ranks #1 with a chart dominance at 56.64%, daily trading volume of $5.16 Billion and live coin value change of BTC 1.95 in the last 24 hours.

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Author: AnTy