Citadel Founder Says Regulating Crypto Will Make It “A Smaller Market” And “That’ll Be Good”

Citadel Founder Says Regulating Crypto Will Make It “A Smaller Market” And “That’ll Be Good”

The billionaire’s Wellington hedge fund beat S&P 500’s 16% return by a mere 2.5% this year through September while Bitcoin rose 68%, Ethereum 363%, Solana 8914%, and Dogecoin 4055% YTD.

Ken Griffin, the founder of the $38 billion hedge fund Citadel and market-maker Citadel Securities, is a cryptocurrency skeptic and recently criticized the time and energy spent on cryptocurrencies.

“I wish all this passion and energy that went into crypto was directed toward making the United States stronger,” said Griffin on Monday in an interview with Bloomberg at the Economic Club of Chicago.

“What a crazy concept this is that we as a country embrace so many bright, young, talented people to come up with a replacement for our reserve currency.”

According to him, it’s “a jihadist call” that “we don’t believe in the dollar.”

While not a fan of crypto, Griffin said his firm would trade digital assets if they were properly regulated.

“I just don’t want to take on the regulatory risk in this regulatory void that some of my contemporaries are willing to take on,” he said. Market makers, firms that provide market liquidity, such as Jump Trading and DRW, have embraced the asset class.

Griffin further praised US Securities and Exchange Commission (SEC) Chairman Gary Gensler for increasing the scrutiny of cryptocurrencies.

He “is spot-on on the need to have thoughtful regulation around cryptocurrency,” Griffin said, adding:

“I actually think that doing so will make it a smaller market because it will become a far more competitive market when there is regulatory clarity and that will be good.”

The hedge fund billionaire has long been a crypto skeptic as back in 2018, when he questioned crypto’s value, moaning about how young investors are attracted to the crypto asset instead of company stocks that drive economic growth.

Citadel’s Wellington hedge fund rose 18.5% this year through September after recording a 7.8% gain last month but only managed to beat the S&P 500’s total return of 16%, reported Bloomberg citing a person familiar with the matter.

When it comes to year-to-date returns of the crypto market, Bitcoin is up 68%, Ethereum 363%, Solana 8914%, and Dogecoin 4055%. The total crypto market cap recorded gains of 148% in the year through September, according to CoinGecko.

During the conversation, Griffin also commented on inflation running hot, which he says is “unsettling,” but noted the Federal Reserve Chair Jerome Powell is doing the best he can. He further said that people who are in the early part of their careers are making a “grave mistake” by not going back to the office.

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Author: AnTy

Tonga MP Drafting a Bill to Make Bitcoin Legal Tender, Blockchain Tech Already in Use

Tonga MP Drafting a Bill to Make Bitcoin Legal Tender, Blockchain Tech Already in Use to “Revolutionise Humanitarian Aid”

Tonga, which has a population of 105,700 people, is the latest one that could take the route of cryptocurrency as its MP Lord Fusitu’a drafts a bill to make Bitcoin a legal tender in the Pacific nation, according to a media report.

Last month, El Salvador officially became the world’s first nation to adopt Bitcoin alongside the US dollar. In less than a month, the government’s Bitcoin wallet Chivo has 3,000,000 active users, representing 46% of the country’s population.

Following El Salvador’s footsteps, other LATAM countries like Panama and Paraguay have been working on bills to legalize and adopt Bitcoin and crypto.

Much like El Salvador, remittances account for 40% of Tonga’s national GDP, and according to Lord Fusitu’a, using crypto instead of traditional banks would make them cheaper and faster.

While he supports Bitcoin, Lord Fusitu’a is also concerned about people turning to speculating cryptos. “If you put your life savings into something that’s not on that (regulated) list, that’s gone,” he said.

While crypto is yet to become popular here, blockchain technology has already been used in “humanitarian aid” by the members of Melbourne start-up Sempo and NGO Oxfam, who have been training vendors and villagers about how to use Unblocked Cash, a pilot project funded in part by the Australian government.

This blockchain program has registered 35,000 people in the Pacific region and has given over $2 million to participants.

The Unblocked Cash system relies on traditional cash stored in a private bank account and prohibits the trading of crypto assets.

“I don’t see this as being experimental; I see this as being pioneering,” said Jesse Gartner, Oxfam’s cash transfer coordinator in Vanuatu. “Blockchain is here. It’s not going away.”

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Author: AnTy

Bank of Mexico Governor says Bitcoin Is More like Precious Metal than Legal Tender

Meanwhile, to billionaire investor Leon Cooperman, Bitcoin doesn’t make “a great deal of sense” because he’s old, not to mention he’s a “paper guy.”

Riksbank Governor Stefan Ingves compared buying and selling bitcoin to trading stamps and questioned its staying power without the government’s backing.

“Private money usually collapses sooner or later,” said the governor of Sweden’s central bank at a banking conference in Stockholm.

“And sure, you can get rich by trading in bitcoin, but it’s comparable to trading in stamps.”

Ingves said earlier this year that cryptos are unlikely to escape regulatory oversight as they rise in popularity.

Much like Ingves, billionaire investor Leon Cooperman is skeptical of the leading cryptocurrency, which doesn’t make “a great deal of sense.”

“I say that if you don’t understand bitcoin, it means you’re old. I’m 78. I’m old. I don’t understand it,” he said on CNBC.

Gold is a “better” store of value than Bitcoin if one is nervous about the world, as per Cooperman. But he doesn’t own much bullion either as he’s a “paper guy” and “a perennial optimist.”

According to the hedge fund manager, it isn’t in the US government’s interest to make way for a substitute to the dollar either, “My guess is I’d be very careful in bitcoin,” he said.

Evolved Fiat Money

But unlike Ingves and Cooperman, the chief of Bank of Mexico believes, Bitcoin is more than just money; in fact, it is a means of barter that is an “evolved” version of fiat money.

On Thursday, Governor Alejandro Diaz de Leon called Bitcoin a high-risk investment and a poor store of value.

According to him, receiving Bitcoin in exchange for a good or service is more like bartering because there isn’t really the exchange of money for a good, but the person is actually exchanging a good for a good.

“In our times, money has evolved to be fiat money issued by central banks.”

“Bitcoin is more like a dimension of precious metals than daily legal tender.”

According to the head of the apex bank, for a cryptocurrency to be considered money, it must be a reliable payment method and safeguard its value, pointing to its high volatility where it fluctuates 10% from one day to another.

“You don’t want that volatility for purchasing power. In that sense, it is not a good safeguard of value.”

Saving Millions of Dollars

The Banxico boss’s comments on Bitcoin came the same week that another LATAM country, El Salvador, officially adopted Bitcoin as a legal tender alongside the US dollar. Another country, Panama, is moving to embrace digital currencies as well.

As we reported, EL Salvador, whose 70% population doesn’t have a bank account, became the world’s first nation to adopt Bitcoin to increase financial inclusion and cut down on the high cost and inefficiencies involved in remittances.

Last year, El Salvadorians living abroad transferred nearly $6 billion home, about 25% of the country’s GDP. But a chunk of this goes to the middleman facilitating these international transfers.

El Salvador President Nayib Bukele estimates that MoneyGram and Western Union will lose $400 million a year in commission for remittances should bitcoin adoption scales.

According to Mario Gomez Lozada, who worked as a banker with Merrill Lynch and Credit Suisse and now runs a crypto derivatives exchange, this figure will be closer to $1 billion.

Remittances are a major support for Mexico’s economy, which rose to their highest-ever level in February 2021 since records began in 1995. Remittances to Latin America’s second-largest economy in February recorded $3.174 billion and totaled $40.61 billion last year, according to central bank data.

This means Mexico can gain immensely if it decides to adopt Bitcoin and cryptocurrencies like other countries in the region.

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Author: AnTy

Japan FSA Commissioner: Need to “Consider Carefully” to Make It Easier to Invest in Crypto

Japan FSA Commissioner: Need to “Consider Carefully” to Make It Easier to Invest in Crypto

Japan’s Financial Services Agency Commissioner Junichi Nakajima is open-minded about the potential benefits of crypto assets but said they are currently being used primarily for speculation and investment and not as a means of transferring money. Nakajima said in an interview,

“We need to consider carefully whether it is necessary to make it easier for the general public to invest in crypto assets.”

Nakajima, 58, who became the chief of Japan’s financial regulator last month, said new challenges come from decentralized finance (DeFi). Just last month, Japan’s FSA set up a study group of outside experts and is expected to consider regulatory responses to DeFi in the coming months.

Japan continues to be heavily redistricted after the hack of Tokyo-based crypto exchange Coincheck in 2018, which led to the tightening of regulations. In 2017, Nakajima was involved in drafting Japan’s first regulatory framework for crypto assets that included the registration requirement for exchanges.

While the current regulatory framework on exchanges has been effective in anti-money laundering and customer protection, many of the 31 registered platforms are struggling financially, said Nakajima, who is an engineering major from the University of Tokyo.

Nakajima further said that, unlike stocks, crypto-assets do not have underlying assets, as such, subject to big price swings.

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Author: AnTy

FONGO is Creeping into The Crypto Market Just as the Shape of the Curve Changes

While Bitcoin price is at a make or break point, “investor appetite remains very strong,” with money continuing to flow into private markets looking for a beta to the public market.

The stock market has recovered all the losses that it suffered after Federal Reserve officials started talking about tapering.

The S&P 500 rose 1.5% to 4,224.79, aiming for an all-time high above 4,255 from last Monday. The Dow Jones Industrial Average led the recovery as it went to nearly 33,877 following an increase of 1.7% but still down from 34,756 peak early this month.

Tech-heavy Nasdaq only rose 0.87% to 14,141 but is near its ATH of 14,174 made last Monday.

Gold sees a slight uptick at $1,780 per ounce, while the US dollar has eased some of its gains and is now at 92.105.

The dollar paused for breath as traders awaited US Federal Reserve chair Jerome Powell’s testimony after a surprise shift in the central bank’s policy outlook. Westpac currency analyst Imre Speizer said,

“We’ve had a meaningful shift from a longtime dovish stance to now a slightly hawkish one.”

“We’ve had a bit of a positioning cleanout – the whole world was mega short the U.S. dollar, and that’s in good part probably been cleaned out already.”

Powerless to Monetary Policy

While the Federal Reserve’s new policy shift and talks of tapering aren’t affecting stocks anymore, cryptos are surely getting battered.

The cryptocurrency market continues to struggle, with Bitcoin back under $31,150 today and Ether going to $1,850 yet again. The total crypto market cap has fallen even more this week and is now just under $1.3 trillion. He said,

“The tides of FONGO (Fear of Not Getting Out) are creeping in,” said Chris Weston, head of research at broker Pepperstone. “Bitcoin is also at a make or break point.”

However, the fact that the digital assets market is looking for clues from the largest central bank could be “indicative of an asset class growing up, while in other ways it was a stark reminder of how powerless all markets are when it comes to monetary policy,” wrote Jeff Dorman, CIO at Arca.

These clues also matter in the long-term because “the low dollar, low rate environment has been positive for all risk assets, including digital assets.”

Digital assets had the 5th decline in the past 6 weeks with high correlations and few drivers outside of macro.

China’s strict measures against crypto trading and mining are one of them. Not to mention, Grayscale Bitcoin Trust (GBTC) shares are still flowing in the market, at least until next month.

Capturing Beta to the Market

While crypto-assets are tanking hard, leverage and speculation have been wiped clean; sentiments are of extreme fear, Coinbase’s retail app has dropped from #1 on the IOS app store to 125th, in stark contrast, money continues to flow in the private markets so much so that deals are pricing at a higher valuation than a few months ago. Dorman wrote,

“Investor appetite remains very strong, as new entrants to the market are choosing to fund private companies and projects as a form of capturing beta to the market. This is another way of saying the shape of the curve has changed, with steep contango (future prices) but lower spot prices. In other words, it’s signaling that the market expects prices to go higher in the long-term regardless of near-term price action.”

He further noted that we had seen this before when investors switch between Bitcoin and Ethereum, currencies and DeFi, public and private, and digital assets and crypto stocks — all proxies for the growth of this asset class. Dorman added,

“Just like with the Fed, the end result is spelled out, but the path it takes to get their changes.”

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Author: AnTy

SEC Delays VanEck Bitcoin ETF Decision Again, Another 45 Day Wait Period

The US Securities and Exchange Commission (SEC) seems to be struggling to make its mind up about Bitcoin exchange-traded funds (ETF). The agency has once again extended the review period for the VanEck Bitcoin ETF application by 45 days.

This is the second time the SEC is delaying its decision on the VanEck Bitcoin exchange-traded fund (ETF) application. The regulator first extended its decision in April 2021.

SEC To Accept Comments On The VanEck Bitcoin ETF Application

According to the order filed on Wednesday, the SEC said it would now accept public input on the proposed rule change surrounding the VanEck Bitcoin ETF. This would help guide its decision on whether to approve the fund or not.

The regulator asked the public for comments on the vulnerability of the ETF to market manipulation and if Bitcoin is suitable as an underlying asset for an ETF.

The commission also wants to know commenters’ views on whether the regulatory landscape relating to Bitcoin and other digital assets has changed since 2016.

The regulatory answer to that question could have deep implications for Bitcoin and other cryptocurrencies like Ethereum, which is also yet to get approval to be used in exchange-traded funds.

Interested people who wish to comment on the proposed Bitcoin ETF have until 21 days after the order is published in the Federal Register and 35 days after publication in the same register for rebuttals.

VanEck had filed for the Bitcoin ETF in December 2020. In March, the Chicago Board Options exchange (Cboe) pleaded for VanEck when it filed a request to list and trade shares of the VanEck Bitcoin fund, thereby putting the SEC on the 45-day clock.

The SEC’s 45-days window, which started in April 2021, was expected to end on June 17, 2021. The latest extension means we don’t know the fate of the VanEck Bitcoin ETF until August 3, 2021.

The SEC typically renders a decision on future applications within 45-day windows but can also take up to 240 days to decide.

The US Continuous Delay In Approving A Bitcoin ETF

Despite the change in leadership at the SEC, the agency has so far shown no sign of approving any Bitcoin ETF anytime soon.

The agency has often cited fraud and market manipulation as obstacles to its approval, but applicants have made arguments as to why those issues are blown out of proportion.

Apart from VanEck, there have been at least seven other applications of firms seeking to launch competing funds but none has been approved.

Given the SEC’s continued delay in approving the ETFs of firms like VanEck, WisdomTree, Kryptoin, and Fidelity Investments, many do not expect approval soon.

However, Canada remains one of the most progressive countries in terms of ETFs. Over the past few months, the North American nation has approved both Bitcoin and Ether ETFs.

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Author: Jimmy Aki

MoneyGram Teams Up With Coinme to Make It Easier to Buy Bitcoin and Cash Out In The US

MoneyGram Teams Up With Coinme to Make It Easier to Buy Bitcoin and Cash Out In The US

  • According to an official press release, American remittance company MoneyGram International has sealed a new partnership with Bitcoin Kiosk Operator Coinme.
  • The partnership would allow customers to conveniently buy and sell Bitcoin for cash at Coinme locations across the US.

MoneyGram Partners with Coinme

Through this collaboration, customers would be able to make cash purchases and sales of Bitcoin at 12,000 different locations owned by Coinme in the US.

The deal would utilize MoneyGram’s modern, mobile, and API-driven payments platform and Coinme’s vast network of cryptocurrency kiosks in the American nation.

This initiative is specially designed for customers interested in utilizing Bitcoin for the first time.

This new partnership with MoneyGram would fulfill two needs. It would further expand Coinme’s network of making BTC accessible to all and further increase Bitcoin adoption in the U.S.

The money transfer company plans to expand further access to Bitcoin in the US and select international markets in the second half of 2021. MoneyGram Chairman and CEO, Alex Holmes said,

“This innovative partnership opens our business to an entirely new customer segment as we are the first to pioneer a crypto-to-cash model by building a bridge with Coinme to connect bitcoin to local fiat currency.”

Founded in 2014, Coinme is the first state-licensed Bitcoin ATM company in the US. It handles millions of dollars in transactions each month through its cash-for-bitcoin swaps at around 6,000 supermarket kiosks across the country.

Coinme further grew its network when it collaborated with coin-cashing machine operator Coinstar. The collaboration saw Coinme bring its Bitcoin trading services to about 20,000 Coinstar physical locations.

MoneyGram’s Growing Interest In Crypto Transactions

MoneyGram’s last crypto partnership didn’t end well.

The money transfer company previously partnered with Ripple Labs in 2019 to use the blockchain startup’s XRP digital currency for cross-border payment and foreign exchange settlement.

During the time MoneyGram used Ripple’s on-demand liquidity service, the firm made $9.3 million in Q3 2020 from the blockchain company from market development fees.

Problems ensued, which led to the termination of the partnership when MoneyGram stopped transacting under its commercial agreement with Ripple in early December 2020.

MoneyGram suspended trading on Ripple’s platform over concerns about the latter’s legal tussle with the Securities and Exchange Commission (SEC). The SEC had sued Ripple, alleging that the company sold over $1.3 billion XRP in unregistered security offerings to investors.

Ripple finally announced the formal end of the MoneyGram partnership in March this year.

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Author: Jimmy Aki

Coincheck Sees 5x Surge in Revenue; Japan Assembly Members Seek ‘Tax-Free’ Crypto Zone in Tokyo

Coincheck Reports 5x Surge in Revenue, Japan Assembly Members Call to Make Tokyo a Special ‘Tax-Free’ Crypto Zone

During the period of Oct. and March, Monex Group acquired a crypto exchange that was hacked in Jan. 2018 gained 210,000 users. Meanwhile, ruling party members want to transform the city into a crypto “trading center.”

Japan is now aiming to boost its cryptocurrency industry with a member of the ruling party Tokyo Metropolitan Assembly wanting to transform the capital into a “trading center” for cryptos. And for this, they are advocating for a 0% tax on cryptocurrency trading.

Assembly member Yuu Ito talked about bolstering the city’s financial sector by increasing its involvement in the digital asset industry.

“According to our research, the number of financial institutions that are gathered in the city is key to our success or failure,” Ito was quoted as saying, “unfortunately, Tokyo is lagging behind in that regard.”

Fellow Tokyo Metropolitan Assembly member Nobuko Irie is of a similar opinion as she said,

“The country is printing deficit-financing bonds in the wake of the corona. Even in Tokyo, we must create new financial resources by setting technology that can generate wealth like blockchain as a growth strategy.”

While praising the rising bitcoin adoption, she raised concerns about how politicians were handling the situation and urged for necessary action to make Tokyo a crypto trading center.

“Politicians should now tackle the issues of monetary policy and taxation around bitcoin. If you do it in the nation, you will lose the sense of speed, so create a special zone in Tokyo to use it tax-free in the city. I think it is the role of politicians to identify issues and clear them systematically while running.”

Virtual currency and blockchain can also be used to turn its economy around, Irie said.

Gains on cryptocurrencies are taxed as capital gains, but Bitcoin “is originally a currency, therefore, it’s not easy to use unless taxation is set to 0%,” said Ito.

Moving Forward

Japan has been seeing a growth in crypto adoption until the crypto exchange Coincheck was hacked in January 2018, which has been acquired by online brokerage Monex Group. Hindering the growth of the crypto frenzy in the country, people are now hopeful of moving to the next stage after undergoing a period of scrutiny and renewal.

Coincheck’s revenue actually increased fivefold to ¥20.8 billion (over $191 million) in the 2020 fiscal year compared to the previous year, as per earnings released by the Monex Group last month.

The exchange also gained 260,000 users, out of which 210,000 were accumulated in the second half of the business year ending in March, reported Japan Times. However, the volume on the exchange only including the BTC/JPY pair, is still only about $150 million, as per CoinGecko.

According to CryptoCompare, JPY has the fifth biggest share of BTC volume by currency after Tether (USDT), USD, Binance stablecoin BUSD, and EUR.

“Due to our hacking problem, not only us but each Japanese cryptocurrency exchange had to strengthen measures to protect customers” and prevent cyberattacks, money laundering, and other inappropriate transactions, said Yusuke Otsuka, an executive, and co-founder of Coincheck.

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Author: AnTy

Bitcoin Dominance on a Decline for 8 Weeks Straight to Hit Three-Year Low

Time and again, the Bitcoin price will make a strong upward movement, but instead of continuing the momentum, it ends up back down again. As of writing, BTC/USD has been trading around $57,500.

It has been due to lack of momentum in Bitcoin and the surging Ether prices, which hit a new all-time high yet again at $3,550 and 0.06348 BTC, that the dominance of the leading cryptocurrency continues to decline. ETH -1.11% Ethereum / USD ETHUSD $ 3,488.63
-$38.72-1.11%
Volume 44.11 b Change -$38.72 Open $3,488.63 Circulating 115.77 m Market Cap 403.87 b
8 h Tala Partners With VISA To Drive USDC Adoption in Emerging Markets 9 h Bitcoin Dominance on a Decline for 8 Weeks Straight to Hit Three-Year Low 10 h Uniswap V3 Recording $265M in Liquidity and $70M in Volume After Going Live on the Ethereum Mainnet

Bitcoin dominance has been declining throughout this year, so far, and for seven straight weeks, it has printed only red candles.

On Dec. 28, 2020, BTC dominance was at 73.67%, which has now fallen to nearly 45%, last seen in mid-July 2018. The lowest it even went down was at 35.5% on Jan. 8, 2018, when altcoins peaked during the last bull market.

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Since the beginning of 2017, when initial coin offerings (ICOs) first became popular in the market, Bitcoin dominance has been on a decline. The metric, however, has become meaningless over time, noted Qiao Wang.

“BTC dominance is now at ~45%, and is probably heading lower,” because of a combination of reasons including the success of Ethereum and other smart contract crypto-commodities, the proliferation of crypto-equities, and froth, he added.

Party to Continue

With Bitcoin price around $58,000, Ether around $3,500, and the total crypto market cap on its way to hit $2.5 trillion, we are experiencing a bull rally, which according to some, could very well be a super cycle.

While that remains to be seen, the ongoing lack of momentum in Bitcoin along with other risky assets is the result of inflation expectations keep on rising and bond yield having stalled, which has real rates falling and deep into negative territory, said Charlie Morris, founder of ByteTree.

“It’ll be back when yields turn up assuming inflationary pressures remain,” he added.

This week, as we reported, Treasury Secretary Janet Yellen, who previously served as the chairman of the Federal Reserve, spooked the market with the talks of raising the interest rates to prevent overheating of the economy.

But Yellen does not directly impact rates in her current position, and the markets have recovered nicely since then.

It is Fed Chair Jerome Powell who is in charge, and he remains dovish as he has repeatedly said that rates will be kept low at zero and inflation target 2% until full employment and economic recovery is achieved.

So, “the party will continue for as long as the fundamentals stay the same,” writes analyst Mati Greenspan.

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Author: AnTy

KeeperDAO (ROOK) Poised to Hit $5 Billion in Flash Loan Volume

KeeperDAO (ROOK) Poised to Hit $5 Billion in Flash Loan Volume

The goal is to make a transition to DAO, a process that isn’t clearly defined yet, co-founder Joey Zacherl said the next feature coming out for the hiding game is potentially a higher reward mechanism.

KeeperDAO (ROOK), an on-chain liquidity underwriter for decentralized finance (DeFi), is ready to hit the milestone of $5 billion in flash loan volume since v2 was launched in November last year.

At the beginning of January, the flash loans volume was just under $120 million, and it was at the end of the same month that it first hit the $1 billion mark.

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Source: Dune Analytics

In comparison, DeFi blue-chip lending project Aave has done $2 billion in flash loan volume in its entire lifetime. Aave was launched as ETHLend (LEND) with an ICO in 2017, raising $16.2 million.

KeeperDAO’s mainnet was launched in July 2020, the same month it raised a “seven-figure sum” from crypto venture capital firm Polychain Capital and fund manager Three Arrows Capital in a seed funding round.

With a market cap of $123 million, its token ROOK is currently trading at $367, down 56% from its all-time high of nearly $840 last month.

Today, the total value locked in the project has reached almost $230 million while having $42.5 million in its Treasury, as per Dune Analytics.

The size of the KeeperV2 pool is currently under $300 million after surpassing it earlier last month, with DAI accounting for the highest share (30.8%), followed by WETH, ETH, and USDC.

What’s Coming?

KeeperDAO is a DeFi protocol aiming to alleviate liquidity issues in the beginning sector by providing a ready-to-use liquidity pool for flash loan-like transactions. The project has cited the March 2020 cryptocurrency market crash as an example when having liquidity on-hand would have benefitted the ecosystem.

In an interview on Epicenter Podcast, KeeperDao co-founder Joey Zacherl explained about the project whose goal is to “capture profit opportunities on-chain and distribute them to the various participants.”

Interestingly, there’s a lot of participants who actually don’t see any of this profit even though they participate in making it possible by making a trade or limit order or using a DEX aggregator.

So, KeeperDAO captures profit and helps it redistribute and also coordinate all of the various participants.

About the hiding game, which was launched at the beginning of last month, Zacherl said it “is essentially our implementation to where we align incentives between users and keepers.”

The idea is to take actions that users like to perform that end up resulting in profit opportunities that get gas auctioned or sandwich traded and take some of those actions and put them in such a way that the user and the keeper can actually collude together and prevent that gas auction or sandwich trade from ever happening and in a way that user gets some of that profit when captured, he explained.

The next feature coming out for the hiding game is potentially a higher reward mechanism. Currently, taking the treasury and staking it back in the KeeperDAO lp pool is one option, but the next pool that’s being launched may generate even a higher yield, Zacherl said.

The project basically has a goal to create this entity as a DAO on-chain and enable all the participants to govern the system. While the transition to DAO is not clearly defined because the team is still working through it, and it’s a short-term challenge.

“We’re trying to kind of let the pieces fall where I think the DAO voting comes into high value,” Zacherl said. A transition into a mechanism that allows ROOK holders to make the decisions as opposed to the team doing it internally, he added.

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Author: AnTy