Shyft’s Veriscope Governance Task Force for AML Adds Bitfinex, Huobi, Tether, & Others

Shyft Network, a blockchain-oriented firm focused on KYC and AML solutions has added significant liquidity players in the crypto space, including Bitfinex, Unocoin, Tokocrypto, Haskey, and Tether to its Veriscope Governance Task Force. They join the likes of Bitfury and Binance, who had already been onboarded to the Veriscope decentralized compliance framework and smart contract ecosystem.

According to the announcement on August 8, this development will further increase Shyft Network’s favorability in providing a self-regulatory solution to the FATF Travel Rule. This regulation, which came into effect early this year, requires Virtual Asset Service Providers (VASPs) to share the underlying KYC details of both originators and fund beneficiaries for amounts above $1,000.

Despite a preference towards privacy and anonymity, the crypto community led by market giants have reacted positively towards the FATF Travel Rule initiative. Shyft Network’s Veriscope is among the solutions that have since been floated to ease the burden of sharing information or reporting the same to oversight bodies.

Notably, the company tapped some of the FATF top leadership to lead Veriscope which launched as recent as July. They include Rick McDonell who served as the FATF’s executive secretary and former head of Canada’s FATF delegation, Josee Nadeau. The two will serve as Veriscope’s chairs in collaboration with VASPs that have been onboarded in the governance task force.

Veriscope’s Value Proposition in Travel Rule Compliance

As the FATF compliance deadline approaches in 2021, viable and cost-efficient solutions to sharing KYC information are in the pipeline. Some players like BitGo have already gone ahead to leverage API integration to assist their clients in seamless data appending, as per the Travel Rule guidelines. Now that Veriscope, a public blockchain built network, has also made a debut; the vision to FATF compliance in crypto just made a significant milestone.

Shyft Network Co-founder, Joseph Weinberg, noted that Veriscope’s governance task force will work collaboratively to develop sustainable and growth accommodating policies,

“In a time where we are seeing global coordination challenges and incoming guidance requirements that make significant alterations to our ecosystem, it is critical that the rest of the world has strong liquidity representation and directives from our largest operators who in turn aggregate network effects for the smaller VASPs in our space.”

It is also quite noteworthy that the Veriscope underlying model will allow the VASPs within its network to choose who they want to share information with, hence maintaining operational sovereignty while complying with the FATF Travel Rule.

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Author: Edwin Munyui

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

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

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

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

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

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

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

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

Concentration of Power

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

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

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

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

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

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

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

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

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

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

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Author: AnTy

Kyber Network to Roll Out Katalyst Upgrade on July 7th; Launching KyberDAO & Liquidity for DeFi

Kyber, an on-chain liquidity protocol, has announced July 7 as the date for the launch of its Katalyst upgrade, which would bring some significant changes to the in-house token, to attract more consumers.

The announcement suggests that the upgrade aims at lowering the friction liquidity contributions along with DApp integration to the Kyber network and the introduction of rebates for the high-performing reserves.

Another major upgrade would be the launch of KyberDAO, which would be a community platform allowing KNC holders to participate in the essential on-chain governance process. KNC holders can participate in this process by staking their tokens, which will enable them to vote on significant protocol parameters and changes along with the KyberDAO proposal.

Loi Luu – CEO of Kyber Network – talked about the upcoming major upgrade and believed the update would prove pivotal in their effort to offer on-chain liquidity for taker and maker. He said:

“Katalyst will harmonize our efforts towards providing a single on-chain liquidity endpoint for all takers and makers, and establish a long term virtuous loop where the success of the DeFi space, growth of the Kyber ecosystem, and value creation for KNC holders go hand in hand.

The Katalyst upgrade and KyberDAO support three key groups of Kyber stakeholders: reserves who provide liquidity to Kyber, DApps who connect takers to the Kyber protocol, and KNC holders who form the heart of the network.”

Luu further commented on the plans for the network, and how it aims to bring in more options for KNC token holders that can do more by staking their tokens. These plans also include integration to new wallets, which allow easy access to and its dapp ecosystem. The firm also plans to add more third-party staking options.

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Author: Hank Klinger

Bitfinex Exchange to Remove 87 Crypto Trading Pairs Next Week to Improve Liquidity

Invoking low liquidity, the digital assets and crypto trading platform Bitfinex announces that it’s going to delist more than 87 of its trading pairs starting next week.

The move indicates an increased competition in the market, especially within the altcoin space, which can lead to greater volatility. Some altoins will only lose their Ethereum (ETH), or Bitcoin (BTC) pairing, while others will be completely dropped from the exchange.

Bitfinex Has Many Trading Pairs

Bitfinex, known for its vast selection of altcoins to trade against BTC/ETH helped it to achieve its success early on. However, it has witnessed a substantial drop in volume in the last 2 years. It has lost its popularity as one of the top exchanges in the market, especially for newcomers.

Removing the coins that aren’t performing as well as they once did is only logical. This change will improve and consolidate liquidity, which would further lead to a more optimized and streamlined trading experience for Bitfinex users.

The Crypto Community Is Not Very Supportive of Bitfinex

This move may not come as a surprise to most crypto traders, the exchange dropped out of the ranking as a top exchange when users became skeptical about the financial situation between the exchange and its sister company, Tether.  So much so that the NYAG filed a suit against them.

While the cryptocurrency space is becoming more and more mainstream, the Bitfinex’s position is unsustainable. Not only popular among traders and having a large trading pair selection, but Binance has also worked to comply with governmental laws and regulators, not to mention it offers transparency when it comes to operations. This is the reason why it has shown so much growth lately.

Altcoins Will Be Impacted by the Delisting

This delisting is not the only one in the altcoin space as of late. Many crypto enthusiasts said platforms are going to fail at some point, so being cut by exchanges is just the beginning.

Earlier this year Bittrex and Poloniex have also dropped their alts that weren’t performing so well. The challenge for projects isn’t to only have a high market cap or to be listed but to implement the adoption and use of blockchain technology, which is a criterion most altcoins won’t meet.

You can find the full list of pairs here.

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Author: Oana Ularu

MakerDAO Community Approves USDC As DeFi Collateral Amidst Liquidity Concerns

The MakerDAO community has just approved the onboarding of USDC during its ongoing liquidity crisis. This situation was brought about by a $4.5 million discrepancy that arose in the past week when ETH saw its price plummet amid the bear market.

The news emerged that MakerDAO, a player in DeFi space, held official talks in regards to onboarding the USDC as alternative collateral. And has just now been approved.  According to them, this should help input more DAI liquidity into the DeFi realm marking USDC as the third collateral after ETH and BAT.

Notably, the DAI project is unsettled by its liquidity concerns that came about when their liquidators dubbed keepers were able to secure collateral liquidations auctions. This meant that they were not required to compensate the system with DAI for their debts hence resulting in the $4.5 million discrepancy on DAI books.

MKR holders to Initiate process

Naturally, the process would be initiated by the MKR holders ‘executive’ vote on the proposal. But according to the announcement, the foundation is already on course with technical preparations to facilitate the process.

This strategic move should be instrumental as it pushes the DAI back to $1. The cycle involves locking USDC, Minting DAI and then sell the USDC and so on in a bid to restore liquidity. It also affords vault owners the luxury of closing their vaults without enduring the setbacks as the DAI peg is quite high in comparison to USD.

There are however concerns that onboarding the USDC will reduce the so-called ‘purity’ of DAI, questioning its decentralized nature. If anything goes wrong, this will not only be a PR nightmare but also spike regulatory risks in case the US government becomes hostile to stablecoins backed by USD.

MakerDAO top leaders were quick to counter the sentiments that DAI would lose its decentralized nature after onboarding USDC. They insisted that the DAI is decentralized because there isn’t a central authority in the site to oversee functionalities.

“To say that DAI is not decentralized because of some of the assets that might back it would be erroneous”

A couple of things still require planning as they are yet to decide on the intended stability fee increase. The DAI team also needs a liquidation ratio that is evenly balanced which is lower than ETH but just low enough to not allow a single vault to mint all the USDC. Lastly, they need to think of a debt ceiling enough to provide the required liquidity but also without accruing additional risks.

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Author: Edwin Munyui

Ex-Wall Street Team Builds ExOne Platform To Battle The ‘Fragmented’ Crypto Market

  • New liquidity solution unveiled to reduce the discrepancies and inefficiencies in the crypto trading market.
  • Former trading gurus at NASDAQ, Visa and Morgan Stanley, are developing a similar product to the ‘best bid and offer’ in traditional markets.

On Wednesday this week, XRP perpetual contracts on BitMEX experienced a flash crash causing an outrage from users, some complaining that their whole account was wiped out. For a relatively big exchange like BitMEX flash crashes should be rare but happens all the time due to liquidity issues as the crypto market continues to mature.

Well, Apifiny, a trading tech development firm, announced a possible solution to the increasing market inefficiencies in the market leading with a liquidity solution, ExOne. According to the official website, the back-end tool introduces traditional market solutions in non-traditional markets such as digital assets trading offering a wide range of advantages.

According to the former vice chair of NASDAQ and Co-Chairman at Apifiny, the fragmented market in the crypto industry and inefficiencies are the main issues ExOne will be trying to solve in the coming days. He said,

“These marketplaces are highly fragmented and remarkably inefficient. If an investor goes to one marketplace the bid that he sees in that one marketplace may be wildly different than it is in another venue.”

The team consists of a number of former professional traders including Ashu Swami, former VP of Program trading at Morgan Stanley; Head of Product Connie Wong, former Design Lead at Kraken, and CEO of Retail Product Ben Rab, formerly Visa’s head of Global Network Product Support.

A “Best Bid and Offer” solution

Traders in traditional markets are used to a stable quote rate as the data is consolidated before it’s broadcasted on trading platforms. However in the crypto world, the markets are fragmented hence the need for a similar best bid and offer as traditional markets to secure the most optimal bid for retail clients.

The product is still in development with official launch dates set to be released soon. Co-Chairman David Wield, a former vice chair of NASDAQ said,

“This is what we’re looking to do in the digital asset space, broadly defined and globally.”

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Author: Lujan Odera

Acquisition of Circle Leads Poloniex Wallet Users to Yank Out Funds

  • Poloniex has delisted many coins through the last few years of decreasing liquidity, leaving the platform with just 98 trading pairs.
  • One of the most controversial coins to be delisted was DigiByte, which may have led to the gutting of the exchange.

Circle, Inc. recently made a game-changing decision for their customers, abandoning the US market entirely as they moved away from Poloniex. However, the decision has led many consumers to a drastic decrease in deposits for wallets on the Poloniex exchange. According to a recent article by Bitcoinist, the Bitcoin and Ethereum wallet users moved their coins to other markets instead, citing the decision to leave behind the US market as the main reason.

By the time Circle original acquired Poloniex, the supply of coins was already starting to dwindle. The exchange was dealing with technical and regulatory issues, and their traders were slowly decreasing. Tweets by CoinMetrics revealed that the supply that Poloniex held of BTC and ETH dropped dramatically during the Circle acquisition. As it stands, the exchange has not seen levels this low since 2016.

While the cryptocurrency market wasn’t regulated, Poloniex stood strong as one of the first exchanges to actually survive the years. However, the exchange also recorded many outages and disruptions in trading during that time, leaving it with a reputation for being unreliable. As recently as this year, Poloniex was forced to liquidate BTC collateral, leaving them with losses over the volatile CLAMS coin.

The socialized loss of about 1,800 BTC greatly angered traders, and the funds have still yet to be paid, which Bitcoinist suggests is one of the reasons that some traders have walked away from the exchange. While many analysts and experts would advise consumers not the store their funds on the exchange, the socialization of losses was definitely unexpected.

With the low liquidity, Poloniex also had to delist some of the coins that it previously had touted, which has mostly been unproblematic. However, when the exchange pulled DigiByte from their listing, the community became enraged, potentially becoming one of the reasons for the substantial outflow from Poloniex.

Considering the recent path that this platform has taken, Bitcoinist suggests that the focus of Poloniex is on the Tron ecosystem. As one of the larger carriers for the TRON-based Tether token (USDT), their listings have recently been opened up to other TRC-20 tokens. In fact, the TRX crypto asset is even an integral part of the earnings program for Poloniex, according to recent tweets from the latter.

Following this trend, the PoloniexDEX, which only recently launched, has already rebranded as the TRXMarket, now being used as a way for traders to access related coins and tokens.

Presently, daily trading accounts for $44 million on the Poloniex exchange, though these numbers are relatively low for an international exchange. Even with the many delisted tokens, the exchange still has 98 trading pairs, giving them a little standing against the competition of the market.

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Author: Krystle M

Liquidity Provider B2Broker Expands Its Crypto CFD Service, Now Offering 100 Pairs

A liquidity provider platform called B2Broker has recently expanded its liquidity offerings. Now, the platform will offer 61 new crypto pairs of contracts for difference (CFDs). These new CFDs will be offered for both crypto exchanges and companies that work in the forex industry.

The new products are set to include most of the major cryptos in the market and they will be paired against popular fiat currencies. They include USD, EUR, RUB, GBP, JPY, CAD, AUD, and NZD. Some unlikely pairs were also added, too, by pairing prominent cryptos such as Bitcoin and Litecoin with precious metals like Gold (XAG) and Silver (XAU).

According to the press release, B2Broker was also the first company of its kind to launch 39 cryptocurrency-based CFD pairs, using the leverage of 1:5. Now, the company has over 100 different pairs that can be acquired by its clients.

Arthur Azizov, the CEO of the liquidity company, has affirmed B2Broker has constantly tried to improve its liquidity over the years and that now they are in an admirable position to offer additional pairs and let the clients have an even larger set of options. This will help the company in becoming a global leader in the industry.

He explained that the company can provide liquidity via most of the major providers in the industry, such as PrimeXM xCore, MT4 and MT5, OneZero Liquidity Hub and others. This enables brokers to access the platform and use these services independently on the kind of platform that they use to work.

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Author: Gabriel Machado

MoneyGram Money Transfer Service Gets Investment from Ripple to Boost XRP Adoption

MoneyGram will use Ripple’s On-Demand Liquidity (ODL) solution in Australia, Europe and other important markets.

The US-based and blockchain company Ripple made a $20 million investment in the money transfer giant MoneyGram, announces a Ripple press release. This means Ripple owns a 15% stake that includes non-voting warrants in MoneyGram. This is what the CEO and Chairman of MoneyGram Alex Holmes had to say about the collaboration:

“Our partnership with Ripple is transformative for both the traditional money transfer and digital asset industry – for the first time ever, we’re settling currencies in seconds. This initial success encourages us to expedite expanding our use of On-Demand Liquidity.”

Both Parties Involved Are Sure to Win

Ripple started collaborating with MoneyGram back in 2018 when MoneyGram begun running its pilot program for testing the digital token XRP in order to reduce money transfer costs. In June 2019, the cryptocurrency giant Ripple bought $30 million worth of shares at MoneyGram and signed a 2-year partnership that requires the money transfer company to use XRP when making cross-border payments. When this happened, Garlinghouse said the deal is a crucial milestone in the cryptocurrency space because it helps Ripple prove how efficient the blockchain technology is, while MoneyGram is allowed to remain profitable in times of struggle.

New XRP Markets

The Ripple MoneyGram partnership has proven to be a success, seeing that now Ripple’s ODL solution is processing 10% of the MXN-USD Moneygram transactions. The liquidity index for XRP has gone over the Mexican exchange Bitso’s 6 million mark. With this new investment, MoneyGram will continue expanding to European and Australian markets and the adoption of XRP will be boosted. On November 23, XRP surpassed other major coins and set a new high for the daily transaction volume.

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Author: Oana Ularu

Federal Liquidity Injection is Equivalent to 13 Million Bitcoin (BTC) Per Day into the Markets

According to a report by CNBC, the Federal Reserve is significantly increasing the amount of temporary liquidity that it is providing the financial markets. Currently, it is providing $75 billion for repo operations, but this will increase to $120 billion this week. Repo is a form of short-term borrowing from dealers that comes in the form of government securities. The report explains that the New York Fed made the announcement but did not explain the reason for the increase.

Mike Shumacher, the global head of rate strategy at Wells Fargo Securities, stated that the injection is evidence that the Federal Reserve “will not back off” as the year-end nears and that it is seeking to take out more insurance.

7 Bitcoins reported that if the amount were converted to bitcoin, then the actual rate would be 12,903, 226 BTX.

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Author: Silvia A