Bonfida DEX Restricts Access to US-based Users

Serum-based, Bonfida decentralized digital asset exchange (DEX) is the latest decentralized finance (DeFi) project to put the US in its restrictive region list.

According to Bonfida’s terms of use, the Bonfida DEX is not available to residents of the USA. With this, the US has joined the Democratic People’s Republic of Korea, Belarus, the Central African Republic, the Democratic Republic of Congo, the Crimea region of Ukraine, Cuba, Iran, Libya, Somalia, Sudan, South Sudan, Syria, Yemen, and Zimbabwe.

“If you intend to enter into any transactions involving derivatives, you also confirm that you are not located in, incorporated or otherwise established in, or a citizen or resident of, a Derivatives Restricted Jurisdiction,” said the exchange.

Last month, the decentralized exchange aggregator 1Inch also started geofencing US IP addresses.

As we reported, 1Inch also includes the US in its list of restricted territories and blocks people from these regions from using a Virtual Private Network (VPN) to access the website. The platform said that it had been planning to launch a new product in the US in compliance with the regulatory requirements.

DEX dYdX has also updated its terms of service to mention that if the user is a US citizen or resident, they are required to physically settle all trades made using dYdX and fully close and physically settle all open margin positions within 28 days.

US-based users are also not permitted to access or trade any of the platform’s advanced features, including Bitcoin trading and perpetual contracts on dYdX. They are also not to use a VPN to modify your internet protocol address or otherwise circumvent or attempt to circumvent this prohibition.

Earlier last month, dYdX users celebrated a massive DYDX token airdrop worth thousands of dollars for many people. However, those who traded on the platform using an IP address within the United States were not eligible for the airdrop or to participate in its staking program.

“This has become almost standard now. People don’t need the US market to win anymore, so US regulators no longer have leverage with truly global founders. The future has already escaped their grasp,” commented Balaji Srinivasan, former CTO of Coinbase and General Partner at Andreessen Horowitz.

Read Original/a>
Author: AnTy

AnySwap and Aave Fork Geist Finance Send Fantom TVL Past $9 Billion, FTM Makes a New ATH

The total value locked (TVL) in the decentralized finance (DeFi) sector continues to hit a new all-time high, the latest being $209.8 billion, according to DeFi Llama. This growth reflects the growing world of multi-chains.

While Ethereum remains the king, accounting for about 68% of this TVL with $142.58 billion coming from the second-largest network, other chains like BSC ($$17.4 bln), Terra ($8.85 bln), Avalanche ($4.93 bln), and Polygon ($4.56 bln) are also growing.

Solana is currently the most popular one with a $10.6 bln TVL. While Fantom comes in third place with $9 billion in TVL, it had seen explosive growth in the past 24 hours when its TVL was at just $3.25 bln.

This growth is also reflected in FTM price, up 85% in less than two days to make a new all-time high at $2.43 on Friday. As of writing, FTM is trading at $2.34.

The majority of Fantom’s growth comes from AnySwap, a trustless MPC protocol to cross-chain any assets and data between chains. With 43.6% dominance in the Fantom ecosystem, AnySwap is responsible for almost $4 billion of Fantom’s TVL.

Decentralized non-custodial liquidity market protocol Geist Finance is another significant contributor with $3.19 billion of TVL. Geist Finance, a fork of popular lending protocol AaveAave, has been “giving LPs ridiculous incentives.”

Together, AnySwap and Geist Finance account for almost 78% of Fantom’s total TVL.

image1

Flows from Ethereum to FantomFDN have also been averaging $10-25 million per day over September. But it was over the last two days that it “increased by an unprecedented amount on the back of a new yield farm,” noted Delphi Digital.

Some notable mentions include SpookySwap, SpiritSwap, Beefy Finance, Curve, Scream, Tarot, Abracadabra, and Yearn Finance.

Abracadabra Money has launched a new stablecoin, Magic Internet Money, or MIM, which taps into yield tokens allowing people to borrow stables against them.

“Yearn alone has over $5B in TVL, meaning there were a lot of idle tokens to loan against,” said Delphi Digital.

On Thursday, Yearn Finance finally launched on Fantom as well, tweeting,

“Today, we go multichain with the launch of Iron Bank Fantom and the first Fantom vaults on http://beta.yearn.finance.”

The first vaults on Fantom include yvWFTM, yvUSDC, yvDAI, and yvMIM.

Yearn decided to go multichain because they need specific infrastructure to function safely and efficiently, both externally and internally.

“Our v2 vault codebase has hardened over the past few months, and the new beta website is a vast improvement, allowing us to switch chains relatively easily, something we simply could not have done in the past.”

As for choosing Fantom, it is fast and simple to use, not to mention easy to bridge thanks to Anyswap Network. “It doesn’t hurt that @AndreCronjeTech is a big fan,” it added.

Fantom, however, is just the beginning for Yearn as they plan to add support for other chains as well.

“The Realm expands, and we go with it. We want to meet people where they are, including new users and users with smaller deposits. Multichain expansion is a natural way to do this.”

Read Original/a>
Author: AnTy

1Inch Network Restricts Access to US Users, imToken Blocks Chinese Users from using its DEX and DApps

Decentralized platforms might not be as decentralized as they claim to be.

This can be seen with the decentralized exchange aggregator 1inch, which has started geofencing US IP addresses.

“It looks like you are trying to use the linch dApp from a restricted territory or are using a VPN that shows your location as a restricted territory,” reads the pop-notification on the platform when used by the people in the restricted regions.

“We respect your privacy, but, please, change your VPN settings to correspond with your real location.”

The Terms of Use of the platform also talk about the interface not being available to those residing in the United States of America.

This means America has been now added to the restricted territories, which include Belarus, Burundi, Crimea and Sevastopol, Cuba, Democratic Republic of Congo, Iran, Iraq, Libya, North Korea, Somalia, Sudan, Syria, Venezuela, Zimbabwe, or any other country to which the US, the UK or the European Union embargoes goods or imposes similar sanctions.

“Use of a virtual private network (e.g., a VPN) or other means by restricted persons to access or use the Interface is prohibited.”

Reportedly the terms were changed in April, but the notification was just recently added. The platform has been planning to launch a new product in the US to comply with the regulatory requirements.

1Inch Network is also in the process of collecting the Series B funding round that has grown to $175 million from the previously planned $70 million, Sergey Maslennikov, chief communications officer of the 1inch Network, told The Block.

Decentralized finance (DeFi), along with the broad crypto market, has been seeing increasing regulatory scrutiny in the US throughout this year. Popular DEX Uniswap also delisted several tokens earlier this summer as the SEC turned its attention to the sector.

Besides the US, as China strengthened its stance against crypto, imToken announced that it would restrict users in China from accessing and using its DEX, staking services including stake mining and liquidity mining, and DeFi applications such as lending and derivatives to match the regulatory policies.

As we reported, the heightened ban and the resultant shutdown of centralized crypto services in China have users turning to decentralized applications, but if they continue to ban users, they might be decentralized only in the name and claim.

Read Original/a>
Author: AnTy

DeFi Rallies Towards New Highs As Multiple Layer 1 Blockchains Amaas $50 Bln in TVL

The decentralized finance (DeFi) sector has started to go up, yet again.

DeFi tokens are in the green, gradually moving up with Perpetual protocol (PERP), leading the gains up 16% in the past 24-hours. Popular DeFi coins, PancakeSwap, AMP, Thorchain, Synthetix, Bancor, Curve, Swipe, Alpha, Venus, Polkastarter, and Akropolis are also up 5% to 10%.

This has the total DeFi market cap climbing towards its all-time high of almost $150 bln from mid-May, according to CoinGecko. As of writing, the market cap is above $143 bln.

But it is the total value locked (TVL) in the sector that is rising even more rapidly, which has surpassed the May peak of $156.2 bln last month, as per DeFi Llama. Currently, the TVL of the entire sector is sitting at almost $180 bln, with Aave contributing the highest at $16.33 bln.

In terms of layer 1 blockchains, Ethereum is a clear winner with roughly $131 bln in TVL, followed by Binance Smart Chain at $19.32 bln. Other popular blockchains with smart contract capability attracting the most capital include Terra $7.63 bln, Polygon $5.28 bln, Solana $4.81 bln, Avalanche $2.42 bln, and Fantom $1.25 bln.

Binance and Polygon are the only ones that are about 40% down from their ATH TVLs, while others are hitting new highs.

Deflationary Pressure

With these latest uptrends, DeFi is actually catching up to the rest of the market, with the overall market capitalization of crypto reaching $2.45 trillion, just inches away from May 12 ATH of $2.55 trillion.

Ether, in particular, has been rallying for the past month thanks to being the popular chain for the latest mania in town NFTs.

Ether briefly hit $4,000 late Friday and is currently trading around $3,950.

Besides NFTs, the London upgrade early in August, which implemented EIP 1559, is another factor behind its success as it reduced Ether’s supply increases and, at times, even making it deflationary.

Since the EIP 1559 upgrade a month ago, more than 212,000 ETH worth $714 mln has been burned, “resulting in continued disinflationary pressure on the Ethereum supply,” the Fundstrat crypto team wrote in a note Friday.

Onto New Highs

The breakout in Ethereum has cascaded into other cryptos and is also expected to help Bitcoin lead the way now.

The gains recorded by the leading cryptocurrency have been relatively smaller than its peers. But BTC also jumped $52,000 early on Monday and is hovering around this level now.

“Hold $50,000 and I expect Bitcoin to have another leg up to $60,000 and test the April highs,” said Antoni Trenchev, co-founder of crypto lender Nexo. But Bitcoin “needs to start closing above $50,000 and settle in the early 50s to temper concerns that this is a double top and we’re heading down to $30,000 again,” he said.

Amidst this, users on platforms including Reddit and Twitter are discussing plans to buy $30 worth of BTC en masse on Sept. 7 to mark El Salvador’s law-making Bitcoin a legal tender coming into effect.

El Salvador has already begun installing Bitcoin ATMs for the conversion of the token into USD, and Congress has approved the creation of a $150 million fund to back conversions.

Meanwhile, USD went back above 92.2 to start the week after dipping to 91.941 for the first time since August 4. Benchmark 10-year US Treasury yields firming to over a week high helped boost the dollar. US markets are shut for Labor Day.

Read Original/a>
Author: AnTy

Crypto Developer to Lead Twitter’s “Decentralized Standard for Social Media” Bluesky

Crypto Developer to Lead Twitter’s “Decentralized Standard for Social Media” Bluesky

Twitter CEO and co-founder Jack Dorsey’s “decentralized standard for social media” Bluesky has found its lead in Jay Graber, a cryptocurrency developer and a founder of a social events startup.

As we reported last week, Dorsey acknowledged that Bluesky has “taken a long time,” which was first announced in 2019, as the team decided to research before hiring a lead which he said would be announced this week.

And on Monday, Twitter said the open-source project will be led by Graber and is currently focused on hiring and setting up the group as an independent entity that will be funded by Twitter.

“Over the past year, I’ve been working closely with a group of thinkers and builders from the decentralized social ecosystem. We published an ecosystem review in January, and my next step will be hiring for the bluesky team,” said Graber on Twitter.

Graber built her own decentralized social network called Happening and previously worked on the development team behind the privacy-focused cryptocurrency Zcash (ZEC).

“The team and community that Jay will bring together can shape the future of social media through decentralization using open standards,” said Parag Agrawal, CTO at Twitter.

Dorsey had previously said that with Bluesky, the idea is to introduce new decentralized technology as a standard on which others will rebuild their platforms and become its clients. This, he had said, will allow collaboration on building content algorithms promoting “healthy conversation.”

Back in March, in written testimony to a US House committee, Dorsey said the project is “complex and unprecedented” and is expected to take years to build.

Read Original/a>
Author: AnTy

dYdX Launches Governance Token, But the Airdrop Won’t Cover US-based Users

The decentralized trading platform also announced the launch of the dYdX Foundation “to fully decentralize” the Protocol and remove single points of failure.

Decentralized finance (DeFi) project dYdX announced the launch of dYdX Foundation, a Zug-based independent foundation, which it describes as the first important step in its journey towards complete decentralization.

The same day, the trading platform announced that the dYdX Foundation is launching the governance token DYDX, which “powers a community-led ecosystem of governance, staking, and rewards.”

The Foundation has minted a total of 1 billion DYDX tokens which will become accessible over five years starting on August 3rd.

50% of this is allocated to the community, out of which — 25% goes to its users who trade on Layer 2 based on fees and open interest, 7.5% to past users who complete a certain trading milestone on Layer 2, another 7.5% to LPs, 5% to a community treasury, and 2.5% goes to users staking USDC and DYDX each.

dYdX’s past investors will be getting a 27.73% share while the project’s founders, employees, advisors, and consultants get 15.27%, and the remaining 7% is allocated to future employees of dYdX Trading or Foundation.

All DYDX issued to stockholders, directors, officers, employees, and consultants are subject to various vesting schedules — 30% will unlock in 18 months, 40% will unlock equally from month 19 through month 24th, 20% from month 25 through month 36, and the remaining 10% will unlock equally from month 37 through month 48.

image1

The tokens will be airdropped over this month which will become transferable on Sept. 8. However, DYDX is not available to its users from the US and other prohibited jurisdictions.

“The launch of the dYdX Layer 2 protocol came with a new focus on global growth outside of the United States,” noted the team.

In order to be eligible for retroactive rewards, users must have traded on dYdX protocols (perpetual, margin, spot) on Layer 1 or Layer 2 in the past or deposited funds into its borrow/supply pools and have hit a certain threshold.

image2

The team also announced trading fee discounts based on DYDX holdings.

Meanwhile, the Foundation will help the project in research and development activities, promote and educate the public about it, and engage with third parties for the benefit of the ecosystem.

It will also issue, receive, spend, and hold digital assets (no speculative trading activities) and acquire, hold or grant trademarks, copyrights, and other intellectual property (IP) rights or licenses.

Through this Foundation, the project aims “to fully decentralize the dYdX Protocol, removing single points of failure and creating a self-sustaining protocol governed by a community of users.”

Read Original/a>
Author: AnTy

Zcash Founder Proposes Moving to A ‘More Decentralized’ & Eco-Friendly PoS as PoW Has ‘Security Flaws’

Zcash Founder Proposes Moving to A ‘More Decentralized’ & Eco-Friendly PoS as PoW Has ‘Security Flaws’

This new narrative is also expected to “eliminate the downward pressure” on ZEC price, which is down a whopping 96.4% from its peak of $3,192 from almost 5 years back.

Zcash founder Zooko Wilcox is now proposing to move his privacy-focused cryptocurrency from having a very large carbon footprint to a more eco-friendly approach which is Proof-of-Stake (PoS) consensus mechanism.

“The benefits of PoS outweigh the drawbacks,” commented Electric Coin Company, the firm behind the Zcash.

The second-largest cryptocurrency Ethereum is already underway this transition, which some believe this will make Ether more attractive to institutional investors after the recent concerns around Bitcoins’ energy usage were raised by Tesla CEO Elon Musk.

Besides being energy-intensive, Wilcox believes PoW has “some security flaws” as well, as seen with the 51% attacks.

“I think proof-of-stake can provide a much more powerful kind of security and at lower cost,” he told Forbes.

According to him, under PoW setups, users don’t have much of an option if the network gets attacked while on a PoS network, bad actors can be identified and their tokens revoked.

He is also ready to move forward because Proof-of-stake is ”proven” and is no longer experimental, as can be seen with the successful launch of Tezos (XTZ), Algorand (ALGO), Cosmos (ATOM), and Cardano (ADA).

Additionally, we are entering an inflection point when it comes to protecting our privacy, he said.

“We’re both simultaneously seeing mega corporations and governments seizing more and more control over everyone, both in the east and the west…And we’re simultaneously seeing people worldwide becoming more aware and valuing their privacy more, their autonomy, their human relationships.”

The close cousin of Bitcoin, Zcash, is focused on privacy which was “the main value proposition” of “basically 100% of all the early bitcoiners, including Satoshi and Hal (Finey) and Nick (Szabo) and Adam (Back),” said Wilcox. He proposed integrating zk-snarks on top of Bitcoin in 2012 and founded Zcash in October 2016.

While Bitcoin is currently trading around $38,600, down 40.6% from its nearly $65,000 all-time high in mid-April, Zcash is at $113.35, down a whopping 96.4% from its peak of $3,192 from almost 5 years back, as per CoinGecko.

And this switching to a “more decentralized, attack- and capture-resistant, and egalitarian” network, is also expected to “eliminate the downward pressure” on ZEC price, wrote Zooko in a blog post. Also, to turn ZEC holders into users by passively earning income by staking their coins or by actively running validator nodes.

This new narrative just might help ZEC pump for the first time since 2016.

Read Original/a>
Author: AnTy

Uniswap Introduces Token Censorship On its Front-End Due to ‘Regulatory’ Reasons

Uniswap Introduces Token Censorship On its Front-End Due to ‘Regulatory’ Reasons, Protocol Remains Decentralized as Ever

Users can still trade the delisted 129 tokens that include synthetic stocks, currencies, commodities, inverse derivatives, options, and yield-generating tokens; via decentralized interfaces and aggregators.

A total of 129 tokens, synthetic stocks, synthetic currencies, synthetic commodities, inverse derivatives, options, index products, yield-generating tokens; has been removed from the leading decentralized exchange (DEX) Uniswap, announced Uniswap Labs, a software studio that contributes to the protocol.

The delisting has been done in response to “the evolving regulatory landscape.”

These tokens include the likes of Gold Tether (XAUT), Grup Cat, Opyn cDai Insurance, Zelda Spring Nuts Cash, multiple Mirrored stock tokens, and several Synth cryptos and Synth Inverse cryptos.

They represent a “very small” portion of the overall volume on the Uniswap Protocol, it said in the announcement.

image1

The portal app.uniswap.org is an open-source interface for reliable interaction with the Uniswap Protocol. Unlike the interface, the Uniswap Protocol is a set of autonomous, decentralized, and immutable smart contracts which provide unrestricted access to anyone with an Internet connection, clarified the team.

As Banteg of Yearn Finance noted, “Uniswap has introduced token censorship on the main UI.”

It is the interface that is restricting the access to particular tokens, which is “consistent with actions taken by other DeFi interfaces” and has no impact on Uniswap Interface code or other portals or locally-run instances used to access the Protocol.

Users can basically still trade these affected assets via contracts, decentralized interfaces, or aggregators.

The crypto community didn’t take this news well, calling it a bad move. Some in the community wondered about the lack of UNI governance token holders’ input in the decision and the reason behind removing these particular coins, while others called for its demise.

“People can’t comprehend the difference between http://uniswap.org (a frontend owned by a company) and a protocol (a series of smart contracts hosted on ethereum) and cannot see this is regulator enforced,” commented influencer CryptoCobain who hosts UpOnly podcast.

“There’s no censorship at the contract level that’s the point of DeFi frontends are just a convenience for users. In a couple of years, only community run frontends will be around,” said a DeFi enthusiast.

Moving forward, Uniswap Labs said they would continue to develop products and contribute to the Uniswap Protocol in accordance with the broader DeFi industry’s values, that is, safe, transparent, and robust financial infrastructure to empower users around the world.

Read Original/a>
Author: AnTy

Stock Tokens, Even on Decentralized Platforms, Must Adhere to Securities Laws: SEC Chair

Stock Tokens, Even on Decentralized Platforms, Must Adhere to Securities Laws: SEC Chair

The US Securities and Exchange Commission (SEC) is renewing its efforts to impose “long overdue” rules for the registration and regulation of security-based swap execution facilities, including tokenized stocks, said Chair Gary Gensler on Wednesday.

In his prepared speech, Gensler said he wanted the SEC to coordinate such derivatives rules with those already in place at the Commodity Futures Trading Commission (CFTC), which has the bulk responsibility for overseeing derivatives.

When it comes to the cryptocurrency industry, Gary Gensler emphasized that any crypto token priced off the value of securities, be it a stock token, a stablecoin backed by securities, or any other product providing synthetic exposure to securities; must adhere to securities laws, even if offered on a decentralized platform.

“These platforms — whether in the decentralized or centralized finance space — are implicated by the securities laws and must work within our securities regime,” he said in a speech at the American Bar Association Derivatives and Futures Law Committee Virtual Mid-Year Program.

While the SEC has brought some cases involving retail offerings of security-based swaps, “there may be more,” added Gensler.

Regarding tokenized stocks, the leading cryptocurrency exchange Binance has been asked by authorities in Germany and Hong Kong to stop offering these products.

Last week, the exchange announced that they are “winding down” support for these tokens on Binance.com effective immediately and would no longer be available on its website after October 14.

In other news, the US Banking, Housing, and Urban Affairs Committee will be conducting an open session called “Cryptocurrencies: What are they good for?” next week on July 27.

Read Original/a>
Author: AnTy

Sushi Summar Drama: VCs Dumping Tokens & Counter-Proposing Premium Buy to Get Their Hands on Millions of SUSHI

Popular decentralized finance  project Sushi is now aiming to attract institutional investors, a growing trend in the DeFi sector as seen with Compound Finance’s fixed 4% interest rate feature and Aave launching Aave Pro.

But Sushi thrives in drama, and after a controversial beginning this summer, we have yet another spectacle.

“To onboard institutional investors,” a new proposal called “Sushi Phantom Troupe – Strategic Raise” has been introduced that offers to use a portion of 51 million SUSHI, currently worth $357 million.

Following an “insane” month in terms of volume and an “attractive pipeline of upcoming releases,” the distribution as part of the broader Treasury Diversification plan has proposed up to $60 million, 25% of Developer Treasury to VCs with 10 million allocated to community members.

“SushiSwap has been a DeFi Community darling since inception, and at this juncture, we feel that it’s ready to welcome established crypto funds and cement SushiSwap as a household DeFi blue chip,” reads the proposal.

Sushi aims to raise capital and deploy it into productive assets via safe yield solutions, including Yearn vault, seed liquidity in key Kashi markets, and LP in a stable pool on Sushi to generate liquidity.

The fresh capital will be raised by selling its $60 million worth of tokens (SUSHI) to VCs, which will be converted into xSushi and receive xSushi yield whilst vesting for a “6-month cliff followed by 18-month linear vesting.”

These SUSHI tokens are proposed to be offered at a 20% to 30% discount to 30-Day TWAP.

The proposal has mentioned a “confirmed strategic Investor list,” which includes the likes of Spartan, Dragonfly Capital, Polychain, Blockchain.com, Pantera Capital, Jump, 3AC, Zee Prime, CMS Holding, DeFiance Capital, and others.

“Most interested parties already have stakes in SUSHI, and voting through this capital raise via governance should be a formality,” it added.

What seems to be in anticipation of buying back at low prices, some funds are speculated to have sold their SUSHI sending the price of the token crashing by over 25% to $6.39 in about the last nine days when the proposal was first introduced.

Most crypto VCs are chasing 100x returns, “generally focus on private market where their perceived edge is stronger,” said Arthur Cheong, founder of DeFiance Capital, noting while institutions have arrived, they are not venturing beyond Bitcoin.

Unlike the traditional market, crypto doesn’t have mutual/passive index funds to smoothen the volatility, and “the buying pressure of all VC unlocked bags almost 100% go to retails, with occasional trading in and out by the crypto hedge funds and prop trading firms.”

The proposal, however, is receiving some flak with Jeff Dorman, CIO at Arca, the digital asset management company that holds 7.51% of the xSUSHI circulating supply, saying it is “value-destroying,” and has made a counter-proposal.

“Sushiswap does not need money… We agree that there is merit to diversifying the Treasury, but not at current depressed prices,” wrote Dorman, who advocates for a diversified community of many smaller investors than a concentrated group of large passive investors.

Instead of a discount, Arca actually proposes to buy at a higher price with a minimum purchase of $10mm at the first offering price of $7.04. SUSHI is currently trading at $7, down 70% from its all-time high of $23.38 four months back.

The discount and short lock-up are “not indicative of a vibrant growth project like SUSHI,” and Dorman believes SUHSI is currently trading at a massive discount to its fair value.

“Now is absolutely not the time to be selling,” he added.

Read Original/a>
Author: AnTy