Decentralized Trading Platform Slingshot Launches Open Beta On Polygon (MATIC)

Decentralized exchange (DEX) aggregator Slingshot has launched on Ethereum’s layer two protocol Polygon network, per an official tweet.

Slingshot Chooses Polygon Over Ethereum

According to the rebranded DEX platform (formally DEX.AG), the upgrade will enable users to execute faster trades, pay fewer transaction fees, and get the best prices on Polygon. This is following a run-up of DeFi platforms launching in the past year. Slingshot is in open beta on Polygon.

Slingshot noted that its reason for using the Polygon instead of launching on the Ethereum blockchain was due to high gas fees and slow transaction issues the decentralized finance (DeFi) facilitator experienced. Polygon is a multichain solution that runs alongside Ethereum’s network.

The Ethereum network is the second most active blockchain ecosystem after Bitcoin. In a year that has seen cryptocurrencies gain more followers, the Ethereum network has attracted more developers riding on the decentralized finance (DeFi) and non-fungible tokens (NFT) craze.

But this adoption has brought up issues previously left unattended. First, the insane gas fees users have to pay before executing a trade on the platform.

Another major hiccup has been the network congestion issues prompted by the explosion of NFTs. NFTs, which are predominantly built on the Ethereum network, are unique virtual assets stored on the blockchain. Recent successes in the digital collectibles circle have seen the Ethereum network battle with slow transaction speeds.

These issues have seen the upsurge of layer two protocols like Polygon. Given their swift execution timelines and lower gas fees, developers are now shifting to alternative platforms to access the burgeoning world of DeFi.

Speaking on the recent announcement, Slingshot’s CEO, Clinton Bembry noted that the DEX platform ran multiple pilots on both the Ethereum and Polygon network for some time before settling with Polygon. All trades would now be executed on the Polygon network, while the Ethereum network integration would come much later.

ConsenSys Launches Developer-friendly Tools

Ethereum is aware of the challenges facing its platform and is reportedly preparing to migrate to a proof-of-stake (PoS) protocol in the coming months. According to founder Vitalik Buterin, Ethereum 2.0 will see the end of high gas fees and network congestion and make the Dapps facilitator scalable.

Meanwhile, Ethereum software studio ConsenSys is working to make the Ethereum platform more developer-friendly. According to the blockchain company, it will be adding tools to scaling solution Polygon to make it easier to develop and run dapps on the platform.

The tools named Infura and Truffle would be added to its already extant Ethereum and IPFS offering. Infura would allow developers to connect to the Ethereum network using an application programming interface (API) without running a full node.

Its Truffle tool would help developers build and deploy dapps easily like boilerplate projects.

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Author: Jimmy Aki

Uniswap Collecting More than Double the Daily Fees Generated by Bitcoin

Decentralized finance (DeFi) project Uniswap’s V3 has achieved $1 billion volume in 24-hours in just a week of its launch.

In the past 24-hours, Uniswap v3 recorded $862 million in liquidity and $1.74 billion in volume. As of writing, the volume is at $916 million.

This surge in activity on Uniswap has been the result of Dogecoin-inspired meme coins such as SHIB, AKITA, and WOOF. With these coins not available on centralized exchanges, the retail crowd has been using the DEX to trade these coins.

Up until today, they all have been at the front page of Uniswap, accounting for most of the volume. Wrapped Dogecoin is now the only one left in the top 10 after Ethereum co-founder Vitalik Buterin dumped a ton of supply of these meme coins, which has been unwittingly sent to his address and sent the proceeds to the charity.

These retailers chasing the meme coins were the ones congesting the Ethereum network this time, unlike the Crypto Kitties in 2017, and sending the fees on the second-largest network and Uniswap flying.

This helped Uniswap surpass Bitcoin in daily fees. Compared to Uniswap’s nearly $9 million daily fees, Bitcoin only did almost $4 billion. The 7-day average fees for Uniswap and Bitcoin stand at $6.6 million and $5 million, respectively, as per Crypto Fees.

For four days in a row, the popular DEX has surpassed Bitcoin’s daily fees thanks to the retail’s dog meme mania.

Meanwhile, average fees on Ethereum hit a new ATH on Wednesday at $70, generating $107 million in daily fees with $65 million as the 7-day average.

Ethereum fees have gone 2x higher than the previous ATH with “increased competition for MEV should push fees even higher,” noted Lucas Nuzzi from Coin Metrics.

According to him, SHIB was the driver of this spike, but MEV had a clear role in pushing fees higher. MEV increases fees because bots are willing to pay higher fees to extract value and out-of-band payments decrease the certainty of what a “sufficient” gas price should be, leading to overpaying.

EIP-1559 that is coming with the London hard fork in July is expected to normalize some of this volatility.

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Author: AnTy

Uniswap V3 Recording $265M in Liquidity and $70M in Volume After Going Live on the Ethereum Mainnet

Popular decentralized exchange (DEX) Uniswap has finally deployed v3 to the Ethereum manninet. The official announcement states,

“Uniswap v3 is the most powerful version of the protocol yet, with Concentrated Liquidity offering unprecedented capital efficiency for liquidity providers, better execution for traders, and superior infrastructure at the heart of decentralized finance.”

The pool interface now supports the creation of Uniswap v3 positions with multiple fee tiers and concentrated liquidity ranges. Developers can start building on Uniswap v3.

Dominating the DEX space with more than 50% share, Uniswap also accounts for 80% of all daily DeFi active users. Just last month, Uniswap achieved the milestone of surpassing $10 billion in weekly trading volume.

Overall, April was a record month for DEXs, with total volume hitting nearly $77.5 billion.

Meanwhile, UNI is trading around $42, down 6.7% from its all-time high of almost $45 earlier this week. In the past 8 months, the token has soared about 4,000%.

Defined as a “profound” step forward for DeFi, V3 offers capital efficiency for LPs and improved execution for traders.

As for Uniswap V2 protocol, it will remain functional and available for use as long as the Ethereum network continues to exist; it is expected over time the advantages of Uniswap v3 will draw a majority of liquidity and trading volume away from v2, reads the FAQ.

The liquidity on the latest version is currently $265 million with a volume of just over $70 million, as per Uniswap.info.

Interestingly, each Uniswap v3 LP position is represented as an NFT and comes with a unique piece of on-chain generative art. But “Look out for rare sparkles!”

To counter the high gas prices on Ethereum, Uniswap will also be launching v3 on a Layer solution called Optimism within the next few months.

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Author: AnTy

MakerDAO Reports $12.57 Million in Net Income for April

MakerDAO Reports $12.57 Million in Net Income for April

Original decentralized finance (DeFi) protocol, MakerDAO has released the financial report for April 2021.

Yet again, the protocol recorded growing income for the month. Maker DAO broke past the $12 million this time, up 44% from the previous month’s $8.7 million. These insane numbers show that the stablecoin minter has come a long way over the past year, as in April 2020, its net income was less than $51k.

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Maker has three business lines — 1: Lending where DAI is lent against strong collateral, i.e., non-dollar backed stablecoins. 2: Trading, which involves exchanges of DAI with other dollar-backed stablecoins. 3: Liquidation, which involves liquidating loan collateral before losing money.

MakerDAO’s latest income resulted from increasing interest income due to loan demand accounting for $10.3 million, up 27% from the previous month, of all the net income. The average yield during the month was 5.15%, about the same as March.

Project’s trading business saw a deep decline, down 61% due to slowing demand on the USDC PSM and lower fees (0.04% vs. 0.10%) on PSM outflow. Liquidations provided it with $2.2 million, which was mainly because of one big ETH-B vault.

When it comes to stablecoin on-chain volume, DAI recorded 63% MoM growth, increasing its market share from 4% last year to 11% now.

MakerDAO is also currently dominating the Ethereum DeFi scene with $11.52 billion in total value locked (TVL), as per DeFi Pulse. In response to all the growth amidst the bull market, the MKR price is hitting new all-time highs; today’s new one was at $5,644.

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“Thanks to a good business performance and some MKR burning, we have generated $10 for each token this month. The market decided that the price that was too cheap it seems,” said Sébastien Derivaux, head of real-world finance at MakerDAO.

MakerDAO also made its very first real-world asset-backed loan with real estate project New Silver, currently at $588k and growing.

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Author: AnTy

DeFi Protocol Balancer Rolls Out $2M (or 1000 ETH) Bug Bounty Program Ahead of V2 Launch

Following a tumultuous year for decentralized finance (DeFi) projects, many liquidity providers and automated market makers (AMMs) are looking for solutions to address the growing menace of cyberattacks.

Generalized AMM protocol Balancer Labs, which previously lost $500,000 worth of tokens through a security breach, has opened the floor for ethical hackers to test its newly released V2 single-vault security protocol.

$2 Million For The Best Hacker

Balance Labs is looking to secure its network from malicious attacks with what it has termed the “biggest bug bounty” in DeFi’s history.

According to the non-custodial portfolio manager, it will be giving away 1,000 ETH or $2 million to any white-hat hacker that discovers vulnerabilities within its V2 smart contracts vault.

The DeFi protocol said that this prize is meant to reward ethical hackers who can discover backdoors through which malicious actors may infiltrate its newly launched V2 smart contracts architecture.

This open-source platform is scheduled to be available on the testnet starting on Tuesday.

According to the bug bounty website, these vulnerabilities are classified into critical, high, medium, and low, with critical vulnerabilities receiving the top prize of 1,000 ETH. Solutions for low-level defects will only attract 5 ETH or $10,000.

It also went further to state that critical vulnerabilities lead to the draining of investor funds from the vault or permanent locking of these funds in the vault.

High exposures would prompt severe rounding errors where a bad actor can steal funds over any gas costs or swap fees, while medium defects would be minor rounding errors that allow an attacker to gradually doctor balances to their advantage.

Low-level vulnerabilities are those that are mainly information and code quality-based disclosures. The liquidity provider also stated that vulnerabilities previously discovered during formal audits would not be eligible for the rewards.

Speaking on the latest development, company CEO Fernando Martinelli noted that the bug bounty program is meant to build a developer community that will help to create a better Balancer platform for all investors.

DeFi Security Breaches Growing Unchecked

In a report published by blockchain analytics firm CipherTrace in November 2020, in the first half of 2020, DeFi projects were major targets of criminals with a 45% success rate.

This saw over $51.5 million lost to cyber criminals during the period. In the closing months of 2020, DeFi hacks rose to 50%, with the affected crypto projects losing over $47.7 million in the process.

It also said that DeFi hacks made up 21% of all crypto-related crimes. This, according to the document, is because cryptocurrencies have continued to boom as more investors are coming into the crypto space.

And this has not ceased even with the growing prosecution of crypto criminals. In a statement posted last month, decentralized exchange platform DODO DEX said that it lost $3.8 million to a cyberattack. Even though the company has said it expects $1.88 million to be recovered, crypto thefts have continued to boom unhindered.

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Author: Jimmy Aki

Uniswap Hits $10B In Weekly Trade Volume; DEX’s Current Pace Would Be $0.5 Trillion Per Year

Leading decentralized exchange (DEX) Uniswap has hit a new milestone.

The weekly trading volume on Uniswap surpassed $10 billion for the first time ever. Daily volume, meanwhile, is $1.5 billion, which hit its all-time high at $2.2 billion in late October.

The latest milestone represents half a trillion-dollar volume every year.

“Uniswap weekly trading volume just passed $10b for the first time!!! $10b/week is over $0.5 trillion per year,” said Uniswap creator Hayden Adams.

The first time, Uniswap hit $1 billion in weekly volume was in early August in 2020, and ever since then, these numbers have only been going up. Much like volume, liquidity is ever-growing as well, keeping above $8 billion.

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Uniswap currently has more than half of the market share at 51.7% in terms of volume, followed by Cuve at 18.6% and SushiSwap’s nearly 15%. CRV -3.91% Curve DAO Token / USD CRVUSD $ 2.90
-$0.11-3.91%
Volume 233.76 m Change -$0.11 Open $2.90 Circulating 273.68 m Market Cap 794.35 m
4 h Uniswap Hits $10B In Weekly Trade Volume; DEX’s Current Pace Would Be Half A Trillion-Dollars per Year 1 w Coinbase Accelerates Altcoin Listing Ahead of Going Public, Bringing Millions of Retail to DeFi 4 w Coinbase CEO Says Exchange is Open to CBDC Listings, Not Intimidated by DEXs
SUSHI -1.22% SushiSwap / USD SUSHIUSD $ 12.51
-$0.15-1.22%
Volume 482.49 m Change -$0.15 Open $12.51 Circulating 127.24 m Market Cap 1.59 b
4 h Uniswap Hits $10B In Weekly Trade Volume; DEX’s Current Pace Would Be Half A Trillion-Dollars per Year 1 w Cross-Chain Decentralized Exchange, THORchain (RUNE), Launches After 3 Long Years of Development 1 w CipherTrace Releases DeFi Compliance Solution Built on Chainlink to Abide by OFAC Sanctions Requirements

Overall, $49 billion has been recorded by DEXs in monthly volume in April so far. In Q1, the best month was February, $76.7 billion monthly volume.

The token UNI, meanwhile, is a $17 billion crypto-asset trading above $32.

Earlier this week, eToro, which has 20 million registered users globally, added support for UNI and LINK on its trading network, bringing the total number of crypto assets available to trade on the platform at 18. LINK -6.15% Chainlink / USD LINKUSD $ 36.27
-$2.23-6.15%
Volume 2.05 b Change -$2.23 Open $36.27 Circulating 419.01 m Market Cap 15.2 b
2 h Oracle Service API3 Inks Deal With OBP To Merge Conventional Banking With DeFi 4 h Uniswap Hits $10B In Weekly Trade Volume; DEX’s Current Pace Would Be Half A Trillion-Dollars per Year 1 d Social Trading Platform, eToro US, Adds Chainlink (LINK) & Uniswap (UNI) For Trading

“Now is the right time to be adding new cryptos to eToro. We have seen an explosion in retail investor appetite for the asset class and strong demand to invest across a greater range of tokens.”

Doron Rosenblum VP of Business Solutions at eToro

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Author: AnTy

Microsoft-Led Consortium Invests $1.3B in Decentralized Storage Facility in China to Mine FIL

Microsoft-Led Consortium Invests $1.3B in Largest Decentralized Storage Facility in China to Mine Filecoin (FIL)

Chinese tech consortium IPFS Union is investing over $1.3 billion to build China’s largest decentralized storage in Jiangxi Province of Fuzhou City. As part of its “Big Data Industrial Park” project, the facility will mine Filecoin (FIL), a peer-to-peer data storage platform, allowing users to buy and sell storage without a third party, a blog post by Filecoin read.

Filecoin has been attracting wide attention across China in the past few months since the network upgraded to mainnet. According to the post, this mining facility is expected to be the largest distributed storage facility in China to boost the union’s vision in big data.

The consortium boasts of some big tech players such as Microsoft, AMD, Huawei, Alibaba, and SAP leading the globe in cloud storage, large cluster data management, and internet infrastructure for the past ten years.

“We’ve been active in the blockchain space since 2016, primarily focused on digital currency investment, but not really participating in development.”

“We were looking for a project with both investment value and a mature ecosystem.”

Filecoin has been one of the top performers so far across the crypto market, popping into the top 15 largest cryptos by market cap earlier in the year. The project was added to Grayscale’s Investment Trust shortly after gaining a listing on Coinbase Pro in December.

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Author: Lujan Odera

Thailand’s KBank to Explore Decentralized Finance (DeFi) to Expand Its Digital Reach

Thailand’s KBank to Explore Decentralized Finance (DeFi) to Expand Its Digital Reach

Kasikornbank, one of the biggest financial institutions in Thailand, has identified decentralized finance (DeFi) as key to its growth and expansion strategies.

Kasikornbank, commonly known as KBank, has kickstarted exploring asset-backed DeFi utilizing blockchain as it seeks to expand and grow regionally.

As reported by Bangkok Post, the decentralized finance experiment is led by Kasikorn Business Technology Group, or KBTG, an offshoot of KBank tasked with technology matters.

Ruangroj Poonpol, KBTG chair, explained that DeFi exploration is crucial to KBank’s short and long-term success. He said:

“DeFi is a key exploration for KBank Group this year […] The project is being explored through KBTG under the second phase of the company’s digital transformation programme.”

Poonpol also explained that DeFi is crucial and could help the country tackle the financial exclusion problems that have persisted for years. He explained that DeFi would allow Thais to access improved financial services. He also explained that asset-backed DeFi would play a crucial role in creating economic value for the country.

Asset-backed DeFi faces various regulatory difficulties as it interacts with the ideal world assets. In the past, some industry players, like MakerDAO’s Christensen, are already in the process of engaging DeFi stakeholders as well as regulators in efforts to see decentralized finance make an impact in the mainstream financial world.

The DeFi exploration by KBank is poised to allow the bank to enhance its expansion strategy in Southeast Asia, especially in countries where there are many unbanked people like Vietnam, where only a third of its population is banked.

KBank’s DeFi exploration comes in the backdrop of the bank’s remarkable performance in Thai’s digital banking sector. The bank controls about 40 percent of all digital transactions in Thailand. The bank also boasts of the country’s biggest mobile banking platform, with more than 16 million people using its mobile banking app.

Recently, the bank, through its offshoot KBTG, unveiled Kubix in collaboration with the Thai stock exchange. The platform will help in the operationalization of initial coin offerings (IPO) for blockchain-based platforms. In 2018, KBank became a member of Visa’s B2B solution, a blockchain-based international payment platform.

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Author: Joseph Kibe

R3’s Corda Releases Ethereum-Based XDC Bridge for Interoperability

Corda, a decentralized blockchain offshoot of software company R3, recently announced that it had built a decentralized bridge to permissionless blockchains on the Ethereum ecosystem.

XDC To Facilitate Exchange On Corda

The announcement sees them collaborate with permissioned hybrid blockchain protocol eXchange inFinite (XinFin) to improve the global trade finance space. XinFin’s utility token XinFin Digital Contract (XDC) would be used for payment settlement in the Corda network.

The interoperable bridge built by a team of former Royal Bank of Scotland (RBS) employees designated LAB577 will make the Corda blockchain talk to other blockchain networks. This will greatly engender the transmission of private user data on the Corda network. The limited dataset will also make its way to the XDC secure network.

In a press release shared with us, Director of the team Richard Crook noted the importance of this Corda-XinFin interoperable bridge, saying that one of the blockchain’s trilemma would be put to bed.

“The first currency across is XDC, but this lays the groundwork to connect Corda to ERC-20s and other cryptocurrency networks.”

“What you would see here is the age-old challenge of interoperability being solved.”

R3 has been in the crypto space for some years. During its inception in 2015, the R3 team pointed to the potential blockchain technology like Bitcoin would bring to the financial sector. Even though large financial houses initially signed up for the project, fears about competitors getting their hands on company data saw interests wane.

This led to the creation of Corda- a system that enables data and value transfer between parties without giving out vital data. The Corda project has been hugely successful, and they created a payments platform that supported Ripple Labs’ XRP token in 2018.

KYC Will Come To XinFin

This innovation joins a growing number of new generation interoperable blockchains. Cosmos, a permissionless blockchain platform on the Ethereum network, recently launched its Inter-Blockchain Communication Protocol (IBC).

Crook noted that the XDC-powered bridge between Corda and other DLT-based platforms would incorporate more inter-chain enabled assets in the coming months.

But even as the blockchain protocol values decentralization, XDC co-founder Atul Khekade notes that the platform ensures that regulatory guidelines are being followed.

Khekade said that all intending validators would need to undergo regulatory know your customer (KYC) protocols to be eligible. This will see them lock 10 million XDC tokens (valued at $300,000) to become a validator, and they must duly attach a KYC node to the network.

The need for regulatory goalposts is increasing by the day as the crypto industry continues to attract institutional demand. A growing number of criminal elements have become attracted to the crypto space, forcing global regulatory bodies to clamp down on crypto activities in some regions.

Like the US Securities and Exchange Commission (SEC), regulatory agencies have since directed crypto-facing businesses to incorporate necessary security protocols obtainable in the traditional financial space.

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Author: Jimmy Aki

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