$2 Million Slippage & Surge in Ether Price on Uniswap Helps Net $40k in Profit

A Uniswap user was able to profit $40,000 thanks to $2 million of slippage and the price of Ether surging north of 15%.

It all started with a trader using $45k worth USDC to borrow another $405k USDC to have a total of $450k USDC.

This $450k USDC was then traded for $492k USDT on Uniswap only to trade $492 USDT for $492 USDC on Curve.

The user paid the $405k loan and ended up with $40k in profit after paying $2k in fees.

In this transaction, the user was able to get $492 USDT for $450k USDC because of the $15 million worth of Ether bought by someone on Uniswap. This pushed the price of ETH to jump to nearly $450, on Uniswap’s ETH/USDC market.

“This ETH is already on the move to what appears to be Binance. The USDT to buy the ETH came from Huobi originally,” noted @econoar.

This event resulted in the volume of ETH/USDC and ETH/USDT to skyrocket on the popular DEX.

After a series of swaps totaling about $18 million in USD to buy just over 40,000 ETH, the price of Ether went back to normal levels on Uniswap.

“This will attract the sharpest, hungriest minds globally to the ecosystem is self-evident,” commented Su Zhu, CEO and CIO of Three Arrows capital on this incident.

“A kid sitting anywhere in the world with zero wealth can participate in arbitrage trading via flash loans, at the same scale as the most well-heeled and brand-named corporations,” he said.

Uniswap, the DEX which is the center of this event, has been growing like crazy in 2020. As we reported, recently it raised $11 million in Series A funding round led by Andreessen Horowitz for the development of Uniswap V3 which will “dramatically increase the flexibility and capital efficiency of the protocol.”

On August 10th, the exchange recorded a volume of $193 million which is higher than Gemini’s $35 million, Poloniex’s $45 million, and Bitfinex’s $140 million. Uniswap is now reaching towards Kraken’s $267 million and Coinbase Pro’s $580 million, as per CoinGecko.

Read Original/a>
Author: AnTy

Crypto Lender to Pay Out $6.1 Million In Dividend To Users Who Staked Nexo Token

Crypto lending platform Nexo has announced that it would be paying out 30% of its profit, equivalent to $6.1 million, as dividends to those who staked their Nexo token. The payout would take place on August 15th as per the Press Release. The official statement from the crypto lender read:

“This payout marks a 154.32% increase on the dividend distributed in 2019 and comes against the backdrop of financial volatility and uncertainty spurred by the COVID-19 pandemic.”

Nexo is a centralized lending platform where users can lend their crypto holdings to generate interest on their staked cryptocurrency. The firm also promises to pay out 30% of its net yearly profit to those that hold Nexo’s native token. The lending works quite the opposite to that of decentralized finance where there is no need for a third-party, and users can only stake ERC-20 tokens.

The firm has made quite a profit from last year given, on August 15th, 2019, the firm only paid out $2.4 million in dividends, which has almost grown by 3X this year. The growing profits of crypto lending firms like Nexo or the tremendous rise of the Defi ecosystem suggest the bullish sentiment of the crypto space and how people have started using crypto beyond trade markets. Antoni Trenchev, a co-founder of Nexo, commented on their phenomenal performance and said:

“Our profit this year unequivocally showcases Nexo’s development and staunch resilience to what are perhaps the toughest market conditions since the 2007 economic crisis,”

The co-founder also predicted the rise of digital finance shortly and believed that the gap between the traditional finances and digital finances are already narrowing down and might become negligible as more people see the technical advantages that digital assets offer over traditional ones.

Read Original/a>
Author: Rebecca Asseh

This Indicator Suggests Bitcoin at the Beginning of a Bull Market

  • Bitcoin Unrealized Profit is at a healthy level, that is similar to the beginnings of past bull markets
  • Despite Bitcoin losing 16% of its value last week, whales and long-term bitcoin holders are not selling their BTC

Bitcoin price might have lost 16% percent of its value last week and recovered some of the losses back, but the market hasn’t topped yet.

According to the unrealized profit of bitcoin, we just might be at the beginning of a bull market. Relative unrealized profit is the total profit in USD of all the coins in existence whose price at realization time was lower than the current price normalized by the market cap.

This indicator was at its highest at just above 0.85 in June 2011. In April 2013, it yet again reached 0.82 before dropping to 0.30 in Sep. 2015.

During the last bull run, in Dec. 2017, Bitcoin Unrealized Profit jumped to 0.77 only to drop to 0.32 in Feb. 2019. On Feb. 24, the bitcoin unrealized profit was at 0.463.

Bitcoin HODLers Holding their BTC Tight

According to yet another indicator, coin days destroyed, the whales and long-term bitcoin holders aren’t off-loading their bitcoin amidst the coronavirus scare. On-Chain data suggests both are sitting “firm and tight” on their bitcoin, said crypto investor and researcher Cryptokea.

The sell-off recorded last week was on par with prior bull markets and nothing extraordinary has been registered yet.

Source: @CryptoKea

The metric Coin Days Destroyed (CCD) measures the total HODL age of bitcoins moved on a given day which is calculated by multiplying those coins with the number of days they are held.

It becomes supply-adjusted CDD, when adjusted by the total supply of bitcoin. If long term bitcoin holders sell larger than usual portions of their holdings, this metric jumps “noticeably.”

But currently, the selling is “on par with prior bull market sell-offs,” especially in comparison to the periods around the reward halvings, which is coming in May.

Previously, he noted that bitcoin’s bull cycle, bottoms, and tops fluctuate around halving dates in an “almost equal ratio.” And though history never repeats itself, it does often rhyme.

“If this relationship were to hold true, we still have more than 570 days of bull market ahead of us, with a cycle top coming in around Sep 2021.”

Read Original/a>
Author: AnTy

How will Bitcoin Halving Affect Miners’ Profitability

  • To maintain healthy profit margins for miners, a rising hashrate is needed while newer and more efficient mining devices to reduce mining costs
  • Before halving the gross cost to mine one BTC is $6,851 and after halving $15,062 and much lower for large scale commercial mining pools like Bitmain

Bitcoin reward halving is less than 100 days away, scheduled to occur in Mid 2020 that would see the new issuance supply of bitcoin declined by 50%. With this supply reduction, there would be changes in the breakeven cost to mine bitcoin before and after the halving.

Digital currency research company TradeBlock tries to find “bitcoin mining profitability following ‘The Halving’ and its indication for price in its latest blog.

Maintaining healthy Profit Margins & Reducing Mining Cost

In 2019, commercial mining operators were operating at “healthy profit margins,” as the price of BTC jumped throughout the year.

The network hashrate meanwhile, continued on its record run, making new highs each week as the number of resources committed to secure the network rises. But as the resources rise over time, efficiency and mining costs rise as well.

To maintain healthy profit margins for miners, a rising hashrate is needed to correspond with a rising bitcoin price while to reduce mining costs, newer and more efficient mining devices are continuously being developed.

Miners expecting the price of bitcoin to rise to higher levels?

The decentralized peer-to-peer network is secured by miners who receive 12.5 bitcoin for mining each block. Currently, 144 blocks are mined on average per day that results in 1,800 new BTC per day. After the halving, the mining reward will decline to 6.35 bitcoin per block, resulting in 900 new bitcoins mined per day.

Before the halving, the gross cost to mine one BTC at current levels with current device types are estimated by TradeBlock at $6,851. Meanwhile, the BTC price is trading at $9,800.

After the halving, assuming the hashrate will continue to rise over the next three months at the same rate it has been for the past three months and commercial operators transition to newer models for 30% of their rigs, the cost to mine one BTC would be $15,062.

If instead of rising to ~135,882,500 TH/s on halving day, the hashrate remains flat, the cost would fall to $12,525. However, for large scale commercial mining pools like those operated by Bitmain, the largest manufacturer of mining rigs, will have even lower breakeven cost.

The breakeven costs, TradeBlock says indicates miners continue to increase towards which suggests miners are “likely expecting the price of bitcoin to rise to higher levels,” above $12,000-$15,000 around the halving to continue to generate a profit. In contrast, it is also likely they will reduce resources following the halving that will result in a decline in hashrate as profitability falls.

Read Original/a>
Author: AnTy

CZ Says BNB Burns Not Priced In after 2.2 Million Binance Coin Taken Out of Circulation Forever

  • Binance burns $38.8 million worth of B&B and raking in a profit of $194 million 4Q19
  • CEO changpeng Zhao, CZ is “mystified” that BNB is down 54% from its ATH but isn’t worried much

Today, the world’s leading cryptocurrency exchange Binance conducted its 10th BNB burn which has been the second biggest burn in USD terms, at $38.8 million, and the 3rd highest burn in terms of BNB, at 2.2 million BNB.

This 10th quarterly burn, Binance said represents the first full quarter that factored in the performance of its most recent new products, margin trading and an increasing roster of fiat-to-crypto options.

4Q19 was also the first full quarter of Binance Futures operations that “hit the ground running.” The daily trading volumes of its bitcoin futures surpasses its spot exchanges. Just this week, Binance launched three out of its nine perpetual contracts.

Although in the last quarter, Bitcoin price lost 10.30% of its value, Binance still made a profit of $194 million, up from $185 million made last year and any of 2019’s quarter, on the basis that Binance burns its native tokens worth 20% of its profits every quarter.

In the recent quarters BNB is in fact, “slowly but surely” decoupling from the core operations of the exchange, Binance CEO, Changpeng Zhao said.

Scarcity and Increasing Demand making a Bullish Case

The BNB burn event is common knowledge but according to CZ, it still isn’t priced in.

This means the available information about Binance to burn 100 million BNB isn’t already reflected in its price.

Given that burn means the supply is cut down, Binance is creating a scarcity of BNB while constantly finding means to make BNB more usable as CZ said about BNB’s utility, “We began 2019 with 30+ use cases, and we ended it with 200+.”

Binance is doing everything to increase the demand for BNB while the regular burns keep on tightening the supply, which is bullish for BNB price.

However, BNB price hasn’t been able to feel the effects. The event didn’t have any effect on the price as BNB is currently trading at 17.95, down 0.20% in the past 24 hours, as per Coincodex. The ninth largest cryptocurrency, however, is up over 30% YTD.

CZ is actually “mystified” about the fact that BNB is down 54% from its all-time high (ATH) at $39.45 but he isn’t worried about it much because he sees it as a “long-term play.”

The CEO ensures that 2020 is the year of adoption and intends to be “a major player in bringing that widespread adoption worldwide.”

Read Original/a>
Author: AnTy

Coinbase Offers 1.25% Interest On USDC Holdings for Stablecoin Users

You do not need to be a trader to profit from Coinbase anymore. The crypto exchange has started a new program for its customers recently. Now they can earn 1.25% interest yearly for holding the official stablecoin of the exchange: USDC.

According to Paul Katsen, product manager at Coinbase, the company is currently trying to create more ways in which people can grow their wealth by using the company. Coinbase knows how bad the need to move money back and forth via different accounts is, so they want to give some benefits for the people who choose to hold tokens in their wallets.

If the user has at least one dollar of USDC in the account, the rewards are automatically enabled. Max Branzburg, the director of product of the company, affirmed that the whole experience was created to be as smooth as possible. People will be able to see their rewards in real-time whenever they want to.

He also affirmed that this is least 15 times more than people will get if they let their savings rest in traditional saving accounts in the U. S. According to him, one of the main advantages of using the USDC Rewards program is that the person does not need to actually move the money since the program is automatic.

Now, Coinbase and Circle, which launched the token in a joint effort, are expecting to see more people using their stablecoin to recieve the rewards. If the program is successful, other ones can be started in the future.

Read Original/a>
Author: Hank Klinger

Graychain Report Shows Crypto Lenders Earned Under 2% On $4.7 Billion Worth of Loans

Cryptocurrencies are bringing a revolution to the world but if you want to use them in order to profit from loans, we have bad news for you. According to a new report made by Graychain, a crypto credit assessment company, $4.7 billion USD has been lent in the crypto industry up until this point. However, the returns from that are only 1.8%.

Borrowers generally get at least 6 to 10% returns on investments per year, so a profit of only 2% is meaningless. Inflation is higher than that in most countries.

The CTO of Graychain, Neil Zumwalde, has said that most companies are actually lending money for very short periods when compared to more traditional loans. Also, it is easier to make it look like the loans are more profitable when you look at their originations only.

He said that the company gathered data from several companies such as Dharma, Compound, Unchained, and Maker in order to make the study. Some companies such as Genesis and Celsius, however, are less prone to offer information and can keep it private. Without this private information, the numbers can be slightly different from the reality.

According to the executive, the market is growing fast. As the industry is maturing, more opportunities are appearing and more loans are being made.

Part of the reason why the profit is so low is that cryptos are volatile and because some of them are very short. As prices change all the time and nobody wants to lose money, people often don’t hold the money long enough.

Read Original/a>
Author: Gabriel Machado