Compound Rolls Out Cross-Chain DeFi Platform, ‘Gateway’ on Testnet

Decentralized finance (DeFi) protocol Compound has announced its latest addition to the blockchain network called Gateway on testnet. The new blockchain is built on a Substrate blockchain, and it would enable users to access cross-chain interest rates and collateralized markets.

Gateway Built On Substrate Blockchain

Initially announced in a Dec. 18 whitepaper, Compound had revealed that its latest upgrade would come with a multi-asset platform that enables the transfer of value and liquidity between peer ledgers.

Decentralized protocols have varying asset value on their platform, making it difficult for DeFi to really grow.

Compound aims to address this issue with its Gateway launch. Gateway would allow users to borrow assets native to one network with collateral from another. That means borrow Ether, provide collateral in CELO.

Gateway is said to run on a more modern programming language called Rust. This will see the multi-paradigm programming language increase performance and safety of the blockchain.

The substrate blockchain will also eliminate the consensus algorithms which has plagued older generation blockchains like Bitcoin. Instead, the team settled on building its own application code, enabling it to bring to developers only features that matter the most.

Compound says Gateway is fully upgradeable, which will enable governance token holders to vote on code upgrades without worrying about forks or downtimes.

Gateway would be powered by a dollar-pegged stablecoin called CASH, which would be used to settle interest payments on collateralized deposits.

Network validators (nodes) have also been considered in the upgrade. Compound says validators will earn a portion of all interest in every market in addition to transaction fees.

Gateway is currently running a testnet on Ethereum’s Ropsten testnet and will go live in the coming months.

Compound Reaching For The Stars

Compound says its goal does not end with Gateway. The DeFi platform could evolve into the backbone of a global interest rate market with the capacity to support any asset, including future currencies, assets, and tokens.

In the coming months, it has set clear goalposts for the Gateway project. Stress tests will be conducted before the mainnet launch. Gateway would also be integrated into its Compound protocol currently running on Ethereum’s blockchain network. Compound Finance is a big player in the DeFi space with around $5 billion in locked funds, according to DeFi Pulse.

Compound’s token rallied 15% following the announcement. This surge has seen it climb one step higher to rank as the 40th most valuable crypto by market cap, according to coinmarketcap. It currently trades at $510 at press time; the asset has come a long way from its ATH of $535 on Feb.13. The crypto-asset now has over $2.3 billion market valuation and is projected to rise further before the year runs out.

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Author: Jimmy Aki

1Inch Decentralized Exchange to Transition to Binance Smart Chain as Ethereum Exodus Begins

1Inch, a decentralized exchange (DEX) built on the Ethereum blockchain, has become the highest-profile project to join Binance’s new Smart Chain.

Yesterday, the exchange confirmed that it had moved to the Binance Smart Chain (BSC), marking what could be a broader move away from the leading blockchain network for decentralized finance (DeFi) protocols.

Exploring New Opportunities

In its announcement, 1Inch explained that it had successfully moved ten million 1INCH tokens (worth about $40 million) to the Smart Chain. The exchange will use the tokens as a liquidity bridge between the two competing blockchains. Adding that, they will also seed its entire ecosystem on the Smart Chain.

Speaking to industry news sources, Sergej Kunz, 1Inch’s founder, explained that the move was inspired by a necessity to escape the rising gas fees on the Ethereum blockchain; with Binance Smart Chain launching to full fanfare earlier this month, it was the perfect opportunity, and they latched on to it.

Ethereum Better Watch Out

The possible move from Ethereum isn’t a new trend. For months, industry experts – including DeFi protocol developers and analysts – have criticized the Ethereum Network for its rising gas fees ETH -5.02% Ethereum / USD ETHUSD $ 1,446.93
-$72.64-5.02%
Volume 31.49 b Change -$72.64 Open $1,446.93 Circulating 114.84 m Market Cap 166.16 b
6 h Crypto Hedge Fund Arca is the Latest to Join the Crowd of Bitcoin Trust Issuers 6 h Coinbase Going Public Is A Watershed Moment for the Cryptocurrency Industry 7 h 1Inch Decentralized Exchange to Transition to Binance Smart Chain as Ethereum Exodus Begins
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With transactions costing more, the blockchain has shown problems with scalability, and several developers have actively shopped for alternatives to move into.

Earlier this month, Harvest Finance, one of the largest yield farming protocols in the DeFi space, made moves to hire developers to bring the protocol to the Smart Chain. While a moderator for the community described the move as an opportunity to show the cross-chain yield farming’s viability, it’s no doubt Ethereum’s problems were driving them away.

ValueDeFi, another leading protocol, confirmed on Twitter that it would also be moving away from Ethereum in the nearest future.

With the leading blockchain now in more danger of losing its crown, the Binance Smart Chain isn’t the only viable option for investors. This week, fast-rising blockchain project Chainlink LINK -3.26% Chainlink / USD LINKUSD $ 25.20
-$0.82-3.26%
Volume 170.53 b Change -$0.82 Open $25.20 Circulating 410.01 m Market Cap 10.33 b
7 h 1Inch Decentralized Exchange to Transition to Binance Smart Chain as Ethereum Exodus Begins 9 h Polkadot (DOT) Proposes Public Utility Parachains to Provide Easy Access to Resources 1 d Chainlink (LINK) Launches Off-Chain Reporting Feature to Improve Network Scalability
took a step forward as it announced the launch of off-chain reporting (OCR) – a feature that will allow its blockchain oracles to aggregate data Externally and publish it to the blockchain.

As the company’s announcement explained, the new feature will further bolster scalability by reducing gas fees and congestion on the network. Other benefits include greater node decentralization and cost-effective node onboarding.

Ethereum is putting a lot of home on its ETH 2.0 upgrade to solve many of its problems. However, even that might not come quickly enough to prevent this exodus.

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Author: Jimmy Aki

Uniswap Hits Over Bln in Weekly Trading Volume & 0 Billion Overall

The popular decentralized exchange Uniswap has hit a milestone of processing more than $100 billion in trading volume in its entire life.

Ever since the beginning of 2021, the DEX has been doing more than $5.5 billion per week, which went past $7 billion during the second week of February, as per Uniswap.Info.

With this much volume, Uniswap is the leading decentralized exchange (DEX), capturing the majority of market share, 54.4%, which is down from 70.7% on August 31st due to SuhsiSwap’s launch.

The TVL (total value locked) of the protocol has also surpassed $4 billion for the first time.

Much like the exchange, its token UNI is experiencing a significantly positive price performance. Uniswap Token, with a market cap of $6.34 billion, is trading above $21, up 345% this year so far.

After exchange balances peaked at 36.86 million UNI in early January, a 10% outflow of over 5.3 million UNI tokens occurred, supporting a price rally from $6.33 to over $23.26.

According to Glassnode, over this same period of time, the number of intra-day transactions transferring UNI tokens tripled from 277tx per hour to a peak of 830tx per hr. However, despite this continued price appreciation, there has been a marked slow-down of transaction counts for UNI tokens since the beginning of this month.

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Author: AnTy

MyEtherWallet Provides Easy Access to dApps With DappRadar Integration

  • Popular Ethereum wallet app MyEtherWallet (MEW) has provided an upgrade that decentralized application (Dapp) users will find welcome.
  • Earlier this week, the company announced that it had inked a partnership to provide easy access to Dapps on its mobile app, essentially allowing it to capture several growing crypto markets.

Easy Access to Over 2,000 Apps

A press release explained that MEW had partnered with top dApp analytics site dAppRadar on the initiative. Thanks to the partnership, MEW users will be able to access over 2,000 dApps on their MEW browser.

The new feature will allow MEW users to track applications across several sub-industries, including decentralized finance (DeFi), non-fungible tokens (NFTs), and more. It will also allow users to track their portfolios across apps and easily tap into the new wave of crypto-based financial services.

Users can search for specific dApps, and the partners believe that iOS users will be able to view rankings and critical metrics for the applications from later this year.

Currently, these metrics are only visible through web browsers within the MyEtherWallet app. They will most likely include numbers like active users, total value locked, periodic trading volumes, and more. In the announcement, Kosala Hemachandra, MEW’s chief executive, explained:

“Our dedication to bringing DApps to all of our users, no matter how they choose to access them, reflects our belief that wallets can, and should, become the hub where the entire Ethereum DApp ecosystem comes together.”

Gas Fees Reach New Highs

The move is sure to provide easier interaction across the Ethereum blockchain. MEW remains a top figure in the Ethereum ecosystem, and most dApps run on the Ethereum blockchain too. Considering that many of these users are interwoven, easy access between one Ethereum-based service and another should consolidate Ethereum’s influence in the decentralized space.

As for the Ethereum network itself, it continues to deal with the problem of rising gas fees, something that continues to threaten its dominance in the DeFi space primarily. According to data from YCharts, the average gas fees hit an all-time high of $17.50 per transaction on Wednesday, beating the previous record of $17.43 that was set exactly a month before.

The rise forced immediate reactions, with top crypto exchange Liquid announcing that it would have to suspend Ether withdrawals due to the gas hike.

As for the DeFi space, things are getting direr. Many DeFi projects require the execution of smart contracts, and there are now reports of fees associated with protocols running into the thousands of dollars.

It’s been widely reported that large transactions on Synthetix cost as high as $1,100, while simple swaps on exchanges like SushiSwap and UniSwap went as high as $75.

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Author: Jimmy Aki

Decentralized Exchange (DEX), dYdX, Raises $10 Million Following A Record 2020

Decentralized exchange dYdX has raised $10 million in Series B round led by Three Arrows Capital and DeFiance Capital, which the team calls “an important milestone.”

While a16z, Polychain Capital, Kindred Ventures, 1confirmation, Elad Gil, Fred Ehrsam continued their support, Wintermute, Hashed, GSR, SCP, Scalar Capital, Spartan Group, and RockTree Capital are the new investors in the DEX platform. Arthur Cheong, founder of DeFiance Capital said,

“We have been users since the early days and are excited to back dYdX in the current round to accelerate its mission to build the most powerful decentralized trading platform for cryptoassets.”

The funds raised will be used to add new assets and features, partnerships, strategically invest in international growth markets such as Asia, and further expand the team, which recently added six new members across engineering, design, & growth.

The DEX runs on smart contracts on the second-largest network, Ethereum, eliminating the need for a central exchange. The infrastructure of the decentralized exchange combines non-custodial, the on-chain settlement with an off-chain low-latency matching engine to deliver an institutional-grade, liquid, and low slippage trading experience.

The investment came after a “record” 2020 that saw the total cumulative trade volume across the perpetual, margin, and spot trading increasing 40x, reaching $2.5 billion in 2020, up from $63 million in 2019. Also, loan originations registered $17.4+ billion from dYdX lending pools.

In 2021, total cumulative trade volume has surpassed $3.5 billion, with the team preparing to launch Layer 2 solution with StarkWare for cross-margined perpetuals to scale lower cost in February.

Besides these metrics, dYdX users also jumped 4.8x with 38,588 unique wallets depositing funds into the exchange’s smart contracts.

dYdX, however, accounts for only 2.37% of total DEX volume, recording just over $5 million in volume in the last 24 hours. The majority of the DEX volume share is captured by Uniswap at 47.7%, followed by SushiSwap at 21.3%, and Curve and 0x at 11..21% and 9.69%, respectively, as per Dune Analytics.

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Author: AnTy

Bitcoin’s Decentralized Model is What The Internet Wants To Be: Twitter CEO

Bitcoin’s Decentralized Model is What The Internet Wants To Be: Twitter CEO

While calling banning President Donald Trump the “right decision for Twitter,” Jack Dorsey said this sets a “dangerous” precedent.

Twitter CEO Jack Dorsey took to Twitter on Wednesday to clarify his decision to ban President Donald Trump on the platform, which he maintained was the “right decision for Twitter.”

For starters, he isn’t celebrating or feeling pride in this move to ban Trump, but it was made “after a clear warning” and with “the best information we had based on threats to physical safety both on and off Twitter,” he wrote in his series of 13 tweets.

Despite calling this the “right decision,” Dorsey called this ban “a failure of ours ultimately to promote healthy conversation” and set a “dangerous” precedent of an individual or corporation having this much power over a part of the global public conversation.

As other companies made such decisions, Facebook being another big giant to do so, Dorsey says, over the long term it will be destructive to the noble purpose and ideals of the open internet.”

While a company moderating itself is different from a government removing access, Dorsey said it might feel so while adding, “If folks do not agree with our rules and enforcement, they can simply go to another internet service.”

But at the same time, he maintained that Twitter does need more transparency in such moderation operations.

And this is why he has all this passion for Bitcoin, which he has previously said that one day could be the currency of the Internet.

“The reason I have so much passion for Bitcoin is largely because of the model it demonstrates: a foundational internet technology that is not controlled or influenced by any single individual or entity. This is what the internet wants to be, and over time, more of it will be,” said Dorsey, the founder of payment company Square, whose Cash App supports BTC.

Dorsey has been calling for an open, decentralized standard for social media, and it has been towards this goal that they have been developing Bluesky — “a client of that standard for the public conversation layer of the internet.”

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Author: AnTy

Yield Farming & NFT’s Led 2020’s DeFi Boom; Boosting DApp Volume by 1178%: DappRadar

The decentralized finance (DeFi) space has arguably been the most impressive component of the entire crypto industry in 2020.

With Bitcoin rallying to record highs, total assets locked in DeFi protocols have reached record levels too. However, it now appears to be bringing in an influx of users to decentralized apps (dApps), again.

DeFi is Pulling DApps Use

This week, top DApp tracking platform DAppRadar published its 2020 DApp Industry Report, revealing that there has been over $270 billion in transaction volumes in 2020. The platform noted that a staggering 95 percent of these volumes came from the Ethereum-based DeFi ecosystem, marking a jump from $21 billion last year.

The report pointed out that the DeFi space had also contributed to Ether’s growth, with money flowing from Bitcoin to the asset all through the year. DAppRadar explained that this cash influx’s primary driver was the theoretical yields in DeFi, with renBTC and Wrapped Bitcoin (wBTC) allowing dApps to tap some of Bitcoin’s liquidity.

Moving on, DAppRadar explained that only ten DeFi dApps accounted for 87 percent of the total transaction volumes on Ethereum. The report echoed findings from November when DAppRadar’s rankings showed that dApps had attracted over a million users in 30 days.

At the time, the top three DApps – DeFi Swap, Uniswap, and Compound, respectively – accounted for over 930,000 users between them. None of the remaining dApps in the top ten rankings had over 30,000 users that month.

Data from Dune Analytics also found that a single DeFi user could have used multiple addresses to interact with several dApps on several occasions during a month. It would be challenging to accurately estimate the actual number of users from DAppRadar’s numbers. As Dune estimated, the total cumulative DeFi wallet addresses were about 901,000.

Even at that, the numbers seem pretty impressive, especially considering that the DeFi space was almost nowhere this time in 2019.

Problems Remain

While the report was positive, it also highlighted some of the challenges plaguing the DeFi space. As expected, it touched issues such as the apparent dependence on the Ethereum blockchain, which has led to challenges like network congestion and higher gas fees.

Hacks and security breaches have also become common, with crafty hackers capitalizing on security flaws in DeFi smart contracts to steal users’ funds. As DAppRadar estimates, hackers have stolen over $120 million across 12 hacks this year. The tracking platform adds that the industry should improve insurance in 2021, which will enhance user confidence.

In general, DAppRadar notes that the future is bright for DeFi. Issues like the coronavirus pandemic and more have brought decentralized platforms into the forefront, and dApps have benefited from that rise in prominence.

With DeFi set to play a more prominent role in the global economy, it should spread its benefits to components like gaming, non-fungible tokens (NFTs), and dApps.

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Author: AnTy

Sovryn Launches DeFi Platform on RSK Bitcoin Sidechain; With Suite of Lending & Trading Tools

New decentralized lending and trading platform launches with a focus on the top cryptocurrency, Bitcoin (BTC), rather than the conventional Ethereum-based applications.

Sovryn, a decentralized platform built and operating on Bitcoin’s RSK sidechain, announced the launch of its public chain this Tuesday, aiming to bring a full Bitcoin suite to the DeFi world. Users on the platform can now access a suite of DeFi tools, including lending, borrowing, and trading using Bitcoin.

The platform incorporates a decentralized exchange and a derivatives platform, where users can place future bets on assets (either long or short) with up to 5X leverage. In addition to borrowing and lending services on the platform, users can also stake (provide liquidity) on Bitcoin (BTC), Tether stablecoin (USDT), and Dollar on Chain (DOC) tokens and earn interest rewards by lending out the assets.

RSK is a Bitcoin sidechain type that offloads some of the transactions from the layer 1 chain to another public network. As a sidechain, RSK gives Bitcoin similar smart contract capabilities to Ethereum-based applications allowing new features to be integrated using Bitcoin.

In a statement to the press Edan Yago, Sovryn project lead, praised RSK as a “natural fit” for his project, allowing the development of a censorship-resistant digital currency. He further stated,

“Now, with the addition of a smart contract layer, deploying on RSK has meant we can provide the same or better functionality than centralized services, but in a decentralized way.”

The statement from Sovryn further confirmed a planned launch of its decentralized governance protocol later this month, similar to a lending protocol, Compound token launch in May. The governance smart contracts will be forked from Compound, with the early investors and users of Sovryn having the exclusive sale rights at the launch of the Sovryn governance tokens, which are expected to launch in Q1 2021.

To participate in voting on the platform, users must stake their tokens, where the longer you stake your tokens, the higher your voting power will be.

Sovryn completed a symbolic $2.1 million funding round led by Greenfield One and joined by other investors, including Collider Ventures, Monday Capital, and BlockVentures, who also provided development support. The funding value is a representation of the 21 million BTC coins that will be mined.

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Author: Lujan Odera

IOHK and BONDLY Partner to Launch First DeFi Project on Cardano Blockchain

  • IOHK is making in-roads to introduce DeFi to Cardano blockchain.
  • Bondly, a decentralized exchange, becomes the first DeFi protocol on the blockchain.

Announced on Dec.10, Bondly became the first decentralized finance, or DeFi, to launch and run on the Cardano blockchain. This follows the successful launch of the Goguen testnet, a smart contract functionality that allows developers to build their decentralized apps atop the blockchain.

In a tweet, the Input-Output Hong Kong (IOHK) team confirmed the partnership with Bondly, a decentralized peer-to-peer exchange, further stating,

Following Shelley’s successful completion, an upgrade targeting more decentralization on the Cardano network, the community is awaiting the Goguen upgrade. According to the official statement, the Goguen upgrade, expected to launch in 2021 fully, introduces smart contracts and the ability to build decentralized apps on Cardano.

Bondly is a peer-to-peer e-commerce system and decentralized exchange that aims to bring the qualities of DeFi to the traditional finance world. The latest partnership with IOHK sees the two companies share visions and joint roadmaps entering 2021, including the addition of the BONDLY cryptocurrency to Cardano – a switch from the Polkadot ecosystem. Charles Hoskinson, Founder of Cardano, said,

“IOHK’s core mission is to widen and democratize access to financial services, which is why Bondly is a perfect partner for us.”

Once the Goguen upgrade is complete, BONDLY plans to integrate its e-commerce platform, BONDProtect, and BSwap, its over-the-counter (OTC) exchange, Cardano too. BONDProtect is a peer to peer marketplace designed to protect buyers and sellers using smart contract-based escrows that will run on Cardano’s fast and secure network.

Hoskinson further believes BONDLY’s capabilities are essential in further pushing Cardano-based DeFi ecosystems once the Goguen update is launched. DeFi solutions built on Cardano allows the blockchain to “live up its potential” and “replace the global digital financial system,” he further said confidently.

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Author: Lujan Odera

DeFi Leader, Aave, Rolls Out V2; Adding ‘Collateral Swaps’ to Reduce Loan Liquidations

Aave, a decentralized lending platform, launches Version 2 (Aave v2), bringing along a slew of new features to build more efficient decentralized lending solutions. While the added features all bring better efficiency to the platform, the new collateral swap feature is the poster boy for the Aave v2 launch on Thursday.

Furthermore, the launch coincides with the recent rise in Aave flash loans – reaching $1 billion – and rise to the fourth spot in rankings of the largest DeFi projects in total value locked (TVL) – recording $1.5 billion in TVL (10% of the total DeFi market cap).

The collateral swap feature

As mentioned, the new collateral swap is the most exciting feature in the new upgraded version. If a user wants to borrow across the DeFi ecosystem, users place their crypto as collateral, locking them up until they are repaid. For example, a user can put ETH as collateral against Maker’s DAI stablecoin to use it. However, they wish. However, this forces the user into a long position on ETH since they are locked for a set period.

If the price of ETH tanks, the user will be readily liquidated, as witnessed during the March mega-crash. The new collateral swap feature allows the borrower to swap their collateral for another token efficiently while using low gas costs. In the case that if the ETH price is collapsing, users can switch it for wBTC, AAVE, LINK, or even a stablecoin to protect them from volatile crypto price movements and potentially liquidations. Stani Kulechov, Founder of Aave, wrote in a blog post,

“In DeFi, assets that were being used as collateral were tied up, but now with V2, they are free to be traded,”

“Users can trade their deposited assets, across all currencies supported in the Aave Protocol, even when they are being used as collateral.”

The collateral swap on Aave v2 is supported by a new flash loan, a new feature on the upgrade, allowing users to open and close a loan within one block. The new feature aims to quicken the process and reduce the fees when repaying loans giving users a seamless experience.

“This new feature allows users to close their loan positions by paying directly with their collateral in just 1 transaction — smooth and simple.”

Native credit delegation introduced

Aave v2 encompasses a host of features, including credit delegation aiming to revolutionize the decentralized lending industry. According to Stani’s post, the credit delegation feature will “open up access to liquidity without [the user] needing existing capital.” Introduced back in July, the CD feature remained a hugely centralized feature on version 1, managed by the Aave development team.

The upgrade introduces a more decentralized power to users who wish to delegate their collateral to another account. In a statement to Coindesk, Kulechov called on developers to build systems atop the Aave v2 and solutions to boost credit delegation across the platform.

Other features added on Aave v2 include batch flash loans, flash liquidations, gas optimization, and stable & variable rate borrowing, allowing users to switch conditions on their loans at any given time, switching from regular and irregular rates.

The Aave community also recently passed the AIP-3 proposal that makes a move from v1 to v2 seamless. The statement reads,

“By using a Flash Loan powered migration tool, users will be able to make the transition without having to close their V1 loan positions.”

The migration will be launched later in the month.

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Author: Lujan Odera