DeFi Protocol Cream Finance To Launch On Polygon

Decentralized lending protocol Cream Finance is set to launch on the Ethereum layer 2 scaling solution network, Polygon.

Cream To Roll Out Ten Digital Assets At Launch

According to the announcement published by Cream, the integration with Polygon would enable users to lend and borrow ten digital assets, such as USDC, USDT, DAI, WMATIC, LINK, and five others.

The crypto lending firm also said its Polygon markets would be incentivized by $MATIC liquidity mining opportunities.

The integration of Cream to Polygon is the latest move by the firm in its expansion plans.

Cream is already being used on Ethereum, Binance Smart Chain, and Fantom. Users on these platforms can easily deposit collateral to borrow supported assets.

The DeFi protocol said the integration with Polygon, which has $8.64 billion in total value locked (TVL), will usher in faster transaction speeds, lower gas fees, and access to additional markets for its users.

Cream’s integration with the scaling solution comes after the firm introduced staking services last month. The company now enables users to stake native assets to its validator nodes in addition to its multi-chain money market services.

Founded in 2012 by Jeffrey Huang, Cream describes itself as a copy of the top lending platform Compound Finance. According to the platform, it also leveraged some codes from Balancer Labs.

But it hasn’t been short of negative news. The protocol has had its share of attacks and losses. Earlier this year, the platform was hit with a DNS (Domain Name Service) attack alongside DeFi platform PancakeSwap.

In its postmortem report, Cream confirmed that its DNS was hijacked and its domain service provider, GoDaddy, compromised. However, the breach didn’t affect funds or smart contracts.

DeFi Projects Continue To Flock To Polygon

The Polygon network has had a meteoric rise this year. The demand for the Ethereum-compatible blockchain network has been visible among institutional investors and DeFi developers alike.

Cream isn’t the only platform that jumped on Polygon of late. Earlier this month, Kyber Exchange announced its integration with the platform, where it launched a $30M liquidity mining program.

In recent times, several DeFi protocols previously launched on Ethereum have shifted base into Polygon’s fast-rising ecosystem.

Meanwhile, the latest development that has emerged from Polygon is the introduction of a general-purpose blockchain network for standalone chains, sidechains, and other Layer-2 solutions called Avail.

Avail is meant to address the scaling challenges single chains on the network face in verifying transactions. Avail will provide them with the needed data guaranteed to make the tasks easier.

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Author: Jimmy Aki

Yearn Finance (YFI) Targets Decentralized Exchange Vertical, ‘Billions of Dollars’ Untapped

Yearn Finance (YFI) Targets Decentralized Exchange Vertical, ‘Billions of Dollars’ Untapped

The team is trying to get DEX strategies to work while waiting for Yearn creator Andre Cronje’s protocols to be production-ready.

Gas fees on Ethereum have fallen drastically, currently being as low as 10 gwei, which momentarily went past 2,000 gwei during the recent correction.

But the market needs another move lower to single-digit gas prices to get YFI creator Andre Cronje to release one for the several projects he has been working on. Referencing this tweet from April, over the weekend, Cronje tweeted,

“Gas prices are a bit earlier than expected. But ETA is looking good. Won’t be using deployer address, though.”

While Cronje has yet to deploy his new project, pseudonymous Yearn Finance vault security specialist “Doggy B” says much like many in the Ethereum community, they are also focused on layer 2 solutions. Yearn core developer told Cointelegraph during the Bitcoin Miami conference,

“A lot of the strategists have been playing with sidechains, re-deploying vaults on side-chains. The vault would still be on ETH, but it would source liquidity via a bridge from the sidechain.”

He further shared that they are working on getting DEX strategies to work because users have to “deal with impermanent loss.”

“The only vertical where it’s billions of dollars that we haven’t tapped yet,” Yearn is finding a workable DEX strategy that currently involves using liquidity from two vaults and combining them to create a DEX pool position. From a token economics standpoint, Doggy said,

“We just haven’t found many things where it makes sense to have one, aside from printing more money.”

For instance, Keep3r is having internal discussions around having a new token. Here, something like Aave, where the token is an insurance backstop for the money market, “could drive YFI usage, drive value for YFI, without just printing new tokens,” he said.

As for an insurance solution for Yearn, there’s no timeline for such a project as it could launch in “a few months” or it “could be tomorrow.”

“Andre has made some stuff, and we’re waiting for it to be production-ready,” Doggy added.

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Author: AnTy

Rates Fall Off a Cliff Suggesting Risk-Off Appetite, But Lending Protocols Leading DeFi

Just like the rest of the cryptocurrency market, the decentralized finance (DeFi) sector is weathering the woes of the deep correction it experienced last month.

The prices of the majority of DeFi tokens are primarily still down 40% to 75% from their all-time highs.

The total market cap of the sector is currently sitting at around $90 billion, down from May’s high of $145 billion, as per CoinGecko.

With prices of coins lower, leverage going down considerably, resulting in funding rates going negative and the highest being 0.01% as per Viewbase, the yield in the market has been on a downtrend.

CME Bitcoin futures basis has been compressing since April. Back in May, it was 5% annualized in the three months bucket. “The 3m basis trade was ~40% at the April peak ex-CME. Now single digit, sub 10%,” noted Degen Spartan. “Pretty much all rates since April have trended lower.”

One potential reason for the same could be more and more people using this arbitrage opportunity.

“As the futures basis inevitably compresses, we should see actors looking at other opportunities for yield enhancement, for instance leveraging options,” stated data provider Skew, which was recently acquired by Coinbase.

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This has the interest rate in the DeFi market also falling substantially. As DegenSpartan further noted back in October, after DeFi summer ended, yields dropped much like the prices and continued lower in the following month as well. At the time, daily APY across different strategies went between 1.25% to 7.60%.

Stablecoin supply rates on Compound since early April have gone down from 6.8% to 2.8%; for DAI, it went from 8.57% to a mere 2.09% for USDC, and for USDT, it is now at 2.45% from 9.6% high two months back.

The demand for stablecoins was extremely high up until April, when the market was rallying hard, and people were borrowing them to go long aggressively. Now that the market is down, demand for borrowing stablecoin has gone down too, and so has the supply APY.

Also, the supply of stablecoins has risen by 41.5 billion in just the last two months, currently exceeding $105 billion in total supply. Not to mention, the regulatory crackdown from China is keeping things uncertain and users away from DeFi.

Not just DeFi, even centralized lending solutions have cut down their interest rates dramatically. As we reported, BlockFi has reduced its rates twice in just the first four months of this year. BlockFi attributed the slashing to market conditions which show low demand to borrow the crypto assets.

Interestingly, despite the low activity on DeFi, notional loan volumes have been rising. As we reported, liquidity on Aave has already risen to its elevated levels. Outstanding debt on Aave is also already at almost its ATH at $5.7 billion, the same as DAI’s $4.81 billion. However, Compound has a long way to go at just $5.33 billion as its ATH was at $9 billion.

Interestingly, the top three projects in the DeFi sector are all lending protocols, with Aave dominating the space, accounting for 14.65% share, followed by Maker and Compound, as per DeFi Pulse.

The total value locked (TVL) in the sector is trending upwards, nearing $70 billion but still down from an $89 billion high on May 12.

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Author: AnTy

Thailand SEC to Targets Decentralized Finance (DeFi), Drafts New Regulations

Thailand’s Securities and Exchange Commission (SEC) is set to draft new regulations regarding decentralized finance (DeFi) projects.

DeFi Platforms May Require License Soon

According to reports from Bangkok post, DeFi platforms may require a license to operate in Thailand soon.

Per the SEC statement, the new regulation would target DeFi protocols that issue tokens. The statement reads,

“The issuance of digital tokens must be authorized and overseen by the Securities and Exchange Commission, and the issuer is required to disclose information and offer the coins through the token portals licensed under the Digital Asset Decree.”

The SEC clampdown on the country’s DeFi sector follows the listing of the token of local DeFi protocol Tuktuk (TUK) Finance on cryptocurrency exchange Bitkub Chain.

Following its debut, TUK soared in value to the tune of “several hundred dollars” before crashing to $1 a few minutes after.

Speaking on the new wave of regulations, the CEO of Ava Advisor, Niran Pravithana, said that it was important that the announcement was made due to the several fraudulent tokens issued recently.

Pravithana added that criminals behind the fraudulent tokens use messenger applications like Telegram and manipulate the token prices.

Dome Charoenyost, the founder of Tokenine, also supported the new policy, saying that the law gives the SEC the authority to regulate coin issuance and supervise licensed intermediaries.

Thailand Tightening Crypto Regulations

Thailand laid out more regulations in the cryptocurrency industry this year, which could be attributed to the booming crypto adoption in the country.

In April, data compiled by the Thai SEC and released by Bloomberg indicated a combined volume across licensed Thai crypto exchanges increased from 574.5 million in November 2020 to $3.96 billion in February this year.

The number of registered Thailand crypto accounts on exchanges in Thailand also spiked from 160,000 in 2020 to nearly 700,000 at the start of May 2021.

Upon seeing the increasing usage of crypto exchanges, Thailand’s financial regulators introduced new rules regarding account creation at crypto-asset exchanges.

Last month, Thailand’s Anti-Money Laundering Office introduced strict know-your-customer (KYC) protocols. The regulator wants crypto exchanges to verify the identities of new customers in-person using a “dip-chip” machine.

The dip-chip machines require customers to be physically present for the verification process. This is because the machines operate by scanning the Thai citizen ID cards. Despite the government’s move on the DeFi space, financial institutions have remained receptive to the sector.

The Siam Commercial Bank announced a $50 million investment fund in February, and Thailand’s Fourth-Largest Bank Kbank disclosed its usage of DeFi services in exploring a new project.

In the same vein, the Brooker Group, a financial consultancy firm, revealed plans to invest nearly $50 million in decentralized finance (DeFi) and decentralized application (dapp) projects last month.

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Author: Jimmy Aki

‘Mr. Wonderful’ Kevin O’Leary Believes DeFi Is the Next Big Thing

‘Mr. Wonderful’ Kevin O’Leary Believes DeFi Is the Next Big Thing

The decentralized finance (DeFi) space has picked the attention of Kevin O’Leary of Shark Tank fame.

O’Leary Floats DeFi Startup

Bitcoin may be the prime dog, but DeFi is the next big thing. According to Canadian businessman and television personality Kelvin O’Leary who was once a crypto critic like his colleague Mark Cuban a few months ago.

In a podcast show with Anthony Pompliano of Morgan Creek Digital fame, O’Leary said he believes DeFi would become a major sector in the financial space in the future. According to the billionaire investor, DeFi is one to look out for, given the massive returns it was giving to investors.

According to him, DeFi enables him to wrap up crypto assets on Ethereum chains and profit from his trade of which traditional crypto investments do not support. He also said that he has a perfect solution to make this possible as he is currently working with a DeFi startup on commercializing DeFi investing.

The startup named DeFi Ventures has not gone public yet but has been able to gain O’Leary’s attention as he said he had invested $20 million in bringing the product to market.

Speaking on the company’s mission, Mr. Wonderful, as he is popularly called, said that they would enable users to wrap crypto assets and automatically leverage DeFi’s inherent capabilities according to laid down rules.

He also said he would be renaming the startup as WonderFi in homage to his sobriquet.

O’Leary has only recently shown open support for the nascent industry. Before coming on board the crypto wagon, Mr. Wonderful said that Bitcoin’s volatility could not see it become a medium of exchange. According to him, a currency that can lose 20% of its valuation in a few hours is not safe.

BTC Crash May Be Good News For DeFi

The crypto market has been turbulent in the past week, following searing criticism by long-time crypto stalwart Elon Musk. Musk, whose EV company bought $1.5 billion worth of BTC, tweeted that Bitcoin’s environmentally damaging mining protocol was forcing him to delist the premier digital asset from Tesla’s payment system.

He would only work with a crypto project with less than 1% of BTC’s energy demands.

O’Leary has noted that the twin events of China’s crypto payment ban and Musk’s criticism on BTC price action could be good news for DeFi.

According to him, the environmental, social, and governance (ESG) concerns surrounding Bitcoin could force investors to look at less energy-guzzling in the DeFi space.

The DeFi sub-sector has been growing since the beginning of the year. According to DeFi data aggregator DeFi Pulse, the sub-sector dominates as much as 15% of the crypto market with a $63.2 billion total value locked (TVL).

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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

Hungary to Cut Tax on Crypto Earnings to 15% from 30.5% to Help the Economy Recover

Hungary to Cut Tax on Crypto Earnings to 15% from 30.5% to Help the Economy Recover

The finance minister expects “several billion forints” of revenue from this tax reduction while its inflation spiked to above 5% in Q2, the fastest in Europe and the highest since 2012 as it sees no reason to make substantial cuts in spending next year.

Hungary is all set to reduce tax on cryptocurrency earnings by more than 50%, from the current rate of 30.5% to 15%, said Finance Minister Mihaly Varga in a Facebook post.

“Tax cuts and tax simplifications will continue next year: we will also help relaunch the economy through tax policy.”

As part of the post-COVID19 relief efforts, the government is considering cutting the taxes on crypto trading. It expects “several billion forints” of revenue from it, as per the video message posted by the finance minister.

In Hungary, buying and selling crypto assets are classified as “other income” for the purpose of taxation.

Hungary, which has also been involved in a discussion of central bank digital currency (CBDC) like the rest of the world, has been seeing an uptick in cryptocurrency trading this year, much like everywhere else, thanks to the raging bull market.

On Monday, Varga also said that he was not afraid of the economy overheating as it recovers from the pandemic and that there is no reason to make substantial cuts in spending next year.

“We are not afraid of the economy overheating, but we continuously monitor inflation, the forint’s exchange rate, and deficit and debt indicators,” he said in an interview on business website portfolio.hu.

“We do not see any problems that should force us to cool the economy already in 2022 … and make bigger spending cuts.”

Prime Minister Viktor Orban had said he would insist on an expansionary budget for 2022 following a deep 2020 recession caused by the pandemic and resulting lockdowns.

However, inflation is spiking to above 5% in the second quarter, increasing more than estimated.

Inflation in Hungary has been increasing the fastest in Europe and the highest since 2012. However, core inflation, which doesn’t include volatile food and energy prices, only rose 3% in April, the lowest in two years.

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Author: AnTy

Burnt Finance Raises $3M For A Solana-based NFT Marketplace; Famous for Burning Banksy Art Piece

Burnt Finance Raises $3M For A Solana-based NFT Marketplace; Famous for Burning Banksy Art Piece

Burnt Finance raises $3 million seed round funding.  The platform aims to decentralize and tokenize NFTs.

The anonymous NFT artist known for selling a Banksy street art as a non-fungible token (NFT), Burnt Banksy, has raised $3 million seed funding from private investors to launch a decentralized NFT minting and auction protocol. The protocol is built on Solana blockchain (SOL) providing a solution on how NFTs and blockchain synthetic tokens are minted and auctioned.

Some of the key investors in this round include Alameda Research, led by Sam-Bank Freidman who is also part of the Solana founding team, DeFinance, Multicoin, and Injective Protocol. The seed funding round also saw Individual investors such as Sandeep Nailwal (COO of Polygon, formerly Matic) and Do Kwon, CEO and co-founder of Terra, which is building programmable money for the internet. SOL -1.18% Solana / USD SOLUSD $ 42.82
-$0.51-1.18%
Volume 513.42 m Change -$0.51 Open $42.82 Circulating 272.64 m Market Cap 11.67 b
6 h Burnt Finance Raises $3M For A Solana-based NFT Marketplace; Famous for Burning Banksy Art Piece 9 h Cryptocurrency Related Stocks Tumbling in a Massive Divergence from Crypto Assets 1 d Tala Partners With VISA To Drive USDC Adoption in Emerging Markets
MATIC -2.92% Polygon / USD MATICUSD $ 0.75
-$0.02-2.92%
Volume 570.92 m Change -$0.02 Open $0.75 Circulating 5.19 b Market Cap 3.89 b
6 h Burnt Finance Raises $3M For A Solana-based NFT Marketplace; Famous for Burning Banksy Art Piece 9 h Cryptocurrency Related Stocks Tumbling in a Massive Divergence from Crypto Assets 11 h Sushi Goes Live on Polygon (MATIC), Andre Cronje Proposes A Curve like Mechanism for it

The platform aims to solve the persistent problems of “bid manipulation” and “high minting fees” experienced on the Ethereum-based NFT marketplace, OpenSea, the report further states. Speaking in a statement, the Burnt Finance team stated,

“Some actors tried to leverage the congestion and manipulate the transaction fees to sway the results and the length of the auction.”

Moreover, the new funding will be used for the technical development of the platform and boost collaborations with top NFT artists. In a statement to The Block, Burnt Finance stated launching Burnt Finance, “the first fully decentralized auction protocol on Solana” will “address the needs of the market” with the budding potential locked in crypto-based auctions,

The statement from Burnt Banksy further states the protocol will leverage Solana’s high speed, low fees, and ultimate performance platform, Solana Wormhole. The wormhole aims to offer a bidirectional bridge connecting NFTs and synthetic tokens on Ethereum to Solana. Currently, in the beta phase, the platform received a grant from Solana Foundation earlier in the year to promote the development of Burnt Finance.

According to reports, the mainnet launch is expected in Q3 2021 with the “BURNT” token governing the platform.

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Author: Lujan Odera

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

Binance Smart Chain (BSC) TVL Reaches $45 Billion, Catching Up Fast to Ethereum

Binance Smart Chain (BSC) TVL Reaches $45 Billion, Catching Up Fast to Ethereum

Decentralized Finance (DeFi) has now reached past the mark of $100 billion in total market cap to climb to $130 billion, as per CoinGecko.

The top five contributors to this are Uniswap (UNI), Chainlink (LINK), PancakeSwap (CAKE), Terra (LUNA), and AAVE.

According to CoinGecko, a similar picture is seen in the total worth of assets locked up in DeFi, at $120 billion.

While Ethereum is a big part of it, the original blockchain where it all started, other blockchains are gaining traction as well.

Just as BSC-based PancakeSwap made it among the top DeFi projects, similarly, the TVL on BSC is fast approaching the levels of Ethereum, one of the metrics that BSC has been lagging in.

TVL on Ethereum had reached past $67 billion as of writing this, increasing 2.5x this year alone when it was just about $15 billion, as per DeFi Pulse. Lending protocol Maker (MKR) is leading this with $10.42 billion in TVL.

Meanwhile, as we reported, DeFi on Binance Smart Chain (BSC) has really taken off, currently at nearly $44 billion, as per Defistation. Much like every other BSC metric, TVL had also risen much faster than Ethereum, as it was just $1 billion at the beginning of February.

AMM protocol PancakeSwap zone accounts for $10 billion of this, followed by lending protocol Venus (XVS) at $9.57 billion.

Both are competing for market dominance, “whereas Ethereum has been the only widely used smart contract blockchain since inception, Binance Smart Chain can now be seen as a serious competitor,” wrote analyst Mati Greenspan in his daily newsletter.

BSC and Ethereum both have their own benefits. The original decentralized Ethereum is the most widely used blockchain whose high fees priced out small users. But ever since the Berlin hard fork, the fees have been keeping down while the developers are focused on permanently scaling the network. BSC, meanwhile, is a more centralized version that is catering to smaller users.

But “luckily, there’s no need to take sides. We can profit from the growth of the market by investing in many different areas and thus drastically reduce our risk as well as maintain neutrality,” wrote Greenspan.

According to many market experts, BSC could help further the DeFi adoption and bring more users to the entire ecosystem.

More than 2 million wallets have already interacted with DeFi protocols, up from just over 170k a year back, as per Dune Analytics.

According to Crypto Fees, these DeFi protocols are earning millions of dollars in fees every single day, but they have yet to see the involvement and usage that the market has been envisioning.

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Author: AnTy