FTX CEO Proposes Building SushiSwap on Solana and Serum

FTX CEO Proposes Building SushiSwap on Solana and Serum

A proposal has been made to build the DEX SushiSwap on Solana and Serum, codenamed Bonsai. With Sushi emerging as “having one of the most vibrant and influential communities” and “the sky’s the limit” for it, the proposal states it’s important to keep growing.

“The purpose of this proposal is to lay out an efficient and effective method for SushiSwap to evolve and build out its leading platform on Solana and Serum,” it reads, adding, “To reinforce perceptions of SushiSwap as a DeFi leader and innovator.”

As per the proposal shared by Sam Bankman-Fried, CEO of FTX, who is also building the DEX Serum on Solana, on Twitter, the team has been farming, staking, and investing in DeFi for the past eight months and Sushi from its beginning.

Now, they want to bring SushiSwap on Solana to provide the community additional liquidity, fast transactions, and significantly low fees on Serum.

The Layout

In the light of the cost of the Ethereum network making DeFi out of the reach of smaller users, they built Raydium. Having been worked on since last year, the AMM was launched just over this weekend.

The proposal also talks about the Raydium roadmap, which involves completing the development of liquidity pools and staking, launching mainnet along with the website and platform launch in Q1.

This AMM will work as a bridge for SushiSwap, and the protocol is already able to support Sushi’s liquidity pools for the Serum orderbook.

As a first step, Raydium will work alongside the DEX and then deploy on its testament. The next step would be the deployment of Bonsai pools and staking on the mainnet.

As an incentive, the double yield is also proposed for the first Decentralized Franchise Pool. The additional rewards will be in the form of a native RAY token, which means Sushiswap stakers on Raydium would get SUSHI rewards plus free yield from RAY.

The new project, Bonsai, is anticipated to launch on testnet within Q1 of 2021.

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Author: AnTy

Yearn Finance Mints 6,666 YFI Tokens ($225M) After Supply Proposal Vote Passes

Yearn Finance Mints 6,666 YFI Tokens ($225M) After Supply Proposal Vote Passes

  • Andre Cronje goes back on his “fair release” mantra.
  • The proposal aims to keep key contributors and attract new talents

Yearn Finance stakeholders have uniformly passed a proposal seeking to increase the amount of YFI tokens currently in the market. The proposal was initiated after Yearn Finance’s creator, Andre Cronje, made a medium post on why the community should make the change.

New Mints To Address “Competitive Disadvantage”

An earlier proposal for YFI tokens to be increased has seen it passed. Andre Cronje, the creator of the Yearn.Finance protocol published a poll asking for input on how best to move forward with the YFI tokens’ supply.

The poll began on January 28. It received input from over 2,000 participants. In the end, 1,671 voters (roughly 84%) supported the move to increase the supply of tokens, while 331 of them (16.5%) voted against it.

Currently, there is a hard cap of 30,000 YFI tokens in circulation. As the results of the poll have shown, the token’s market cap will be increased by 6,666 tokens. The proposal aims to reward key contributors with a third of the minted tokens (2,222 YFI), while the remaining two-thirds (4,444 YFI) will be reserved in the protocol’s treasury.

The expansion proposal aims to use the newly minted tokens to motivate new contributors, fund liquidity mining and staking rewards, acquire talent, and provide new cross-platform incentives. However, most users who voted against it claimed that it contravened the token’s social contract, a problem that could lead to an erosion of the token’s value in the open market.

Eventually, the proposal’s authors decided to increase the token’s supply by just 22 percent, adding that this slight increase will maintain YFI’s competitive advantage over the tokens of other decentralized finance (DeFi) protocols.

It is unclear how the protocol plans to distribute the newly minted token. However, it is expected that the distribution process will be handled by a Compensation Working Group. The group will present its recommendations to the multisig committee (YFI’s version for a board of directors) for a review. Once approved, the compensation plan will be executed. Yearn has stated that the process of minting new tokens will take three days.

The decision to reward key contributors shows a change of perspective in the community who are known for not giving preferential treatments for insiders. Andre Cronje began this practice and it has stuck. But the new proposal sets out to break this practice citing cases of some of their contributors being “poached” by other projects.

Cronje Backtracks

The decision to make this change started when Andre Cronje, creator of the YFI space, spoke on the difficulties of operating in the decentralized finance industry. In a medium post from February 2020, Cronje explained that many people demanded too much from him, and running the Yearn Finance platform was getting costlier by the day.

The developer additionally questioned his decision to limit the number of YFI tokens in his “fair launch,” adding that minting more tokens could be the best way to reward developers. Although a lot of reactions followed his public address, Cronje has expressed his pleasure at the proposal’s acceptance.

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Author: Jimmy Aki

YFI Opening the ‘Floodgates for BTC Hodlers into DeFi’ as it Adds ‘Curve sBTC yVault’ to Yearn.Finance

YFI has passed the latest proposal “YIP 39 – Curve sBTC Pool LIP-Tokens yVault” with 98% votes and 40.48% quorum. The weight of Curve sBTC will increase from 17% to 48% on Thursday.

This development would bring a lot of Bitcoin to Ethereum, which has already reached 46,694 BTC worth $534 million.

The idea of the YIP-39 proposal is to capture the $214 billion in AUM from bitcoin holders by allowing them to “passively grow their BTC holdings.” This would be done by using voting power to increase sBTC pool CRV returns and create a Vault for sBTC Curve Pool LP-token holders — which works almost identically to the yYFI and yCRV vault — who deposit renBTC / wBTC / sBTC in Curve Pool.

“Harvest CRV, sell it for more LP-tokens or renBTC, which is then re-deposited to create, distribute and compound LP-token growth,” states the proposal.

With the YIP-39, the YFI community aims to generate “significant goodwill from Bitcoin holders,” by presenting them with other use cases of the holdings.

It also mentions how currently the most confident BTC holders are only depositing and recycling or farming CRV.

“This can become a black hole for BTC deposits into Curve via renBTC and LP tokens into yVault for passive returns and governance fees,” it adds.

Move where the Money Is

For quite some time now, the YFI community has been discussing bringing BTC, the standard in the crypto world, to Yearn.Finance, which “would open the floodgates for BTC hodlers into defi.”

The rationale behind this has also been to bring a “greater” share of CRV rewards and wBTC revenue into the fold and to maximize AUM to get “governance control of other platforms.”

While “pure” bitcoiners will prefer to keep their BTC in multi-sig and not earn yield and some will go for crypto lenders BlockFi and Aave’s Lend, “there is a huge cohort of btc holders who want yield and will move to where the money is,” noted analyst Ceteris Paribus.

However, there are risks given that the “experimental” projects of DeFi continue to see a loss of funds along with the “Ethereum/smart-contract/synthetic risk.”

But there is also the advantage of higher yield, currently ~50%, maybe >100% soon, and not to mention there is no need for KYC.

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Author: AnTy

DeFi App, Aave, Releases Aavenomics Upgrade as It Prepares to Launch Its Governance Tokenv

Aave, the Ethereum based DeFi protocol, has released a tokenomics upgrade proposal dubbed ‘Aavenomics’ that will define its shift to a more decentralized governance ecosystem.

The firm announced this milestone on July 29 via a medium blog, noting that it is another exciting phase for Aave. Aave’s founder and CEO, Stani Kulechov, has since confirmed that the new governance tokens have been under development since we began the year.

The protocol is set to join the likes of Compound and Synthetic, which already launched its governance tokens. Notably, the debut of Compound’s token saw the DeFi market rally to new ATH’s as this protocol overtook Maker in terms of total value locked (TVL). This position, however, has not held given Maker regained its position as the leading DeFi protocol; over $1 billion are currently locked within its ecosystem.

Aave’s Governance Token

Currently, Aave’s DeFi platform uses LEND as its native token, but these are now set to be swapped for the upcoming governance token, AAVE. These governance tokens will supposedly introduce a financial services ecosystem that is pegged on a future proof framework and distributed governance to enhance safety and sustainability.

The LEND token supply, which is currently 1.3 billion, will be reduced to a bare 16 million AAVE tokens once the Aavenomics proposal is fully integrated. Thirteen million of these AAVE tokens will be redeemed by token holders, while the remaining 3 million will be allocated to Aave Ecosystem reserve. Going by these stats, Aave set the conversion rate for LEND against the new governance token at 100:1 to achieve the target numbers.

To initiate the swap, a governance vote will be conducted via the existing LEND token holders. Once approved, the underlying smart contracts will then facilitate the swap in a move that will see Aave achieve more decentralization in its governance.

The 3 million tokens allocated to Aave’s Ecosystem reserve will be used to incentivize development, hence safety and economic incentives in the rewards pool. Their allocation will be heavily dependent on Aave’s community, a decision they can now voice via a governance token.

Aave’s DeFi Footprint

At the moment, Aave is the fourth DeFi in terms of TVL with a significant $445 million in locked digital assets, up 14.6% in the last 24 hours. The project launched in 2017, and went by ‘EthLend‘ at the time; this name was, however, changed in September 2018 to what is now ‘Aave.’

Some highlights by this ETH financial service protocol include its $18 million ICO funding. This was later topped up by other funding rounds that have seen Aave gather over $3 million from the sale of LEND tokens after 2017.

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Author: Edwin Munyui

EOS Block Producers Reach ‘Strongest Consensus’ In Approval Of Worker Proposal

The EOS Worker Proposal, which is famous for being very controversial, was announced by the most important EOS block producers that it went into its first execution stage and is supported by many participants to the network.

One of the leading EOS block producers, EOS Nation, reported that many Eosians agreed to support the new proposal and nothing could have changed their mind. On March 24, it also announced that a number of 34 both active and standby producers approved the EOS Worker proposal. It seems that until now, this is the strongest consensus achieved by any proposal in the EOS Mainnet.

The Eosio.wps System Launched

The March 24 first multi-signature approval launched the eosio.wps account that stores funds needed for new operations on the system. After this approval and the MSIG execution, eosio.wps will receive 50,000 EOS tokens in transfers from eosio.names, while the 3rd MSIG is going to deploy the Worker proposal smart contract to the same account, namely eosio.wps. After the 4th approval, the new proposal will have the whole network’s voting system reconsidered.

A Proposal Surrounded by Controversy

According to the new scheme and outlines, anyone can make a proposal on how the EOS blockchain should work, in exchange for a small EOS fee. After that, the block producers, regardless if they’re active or standby, need to vote on the proposal with +1, -1, or 0. In order to pass, a proposal has to gather 20 points. Here’s what the co-founder and CEO at Block.one, Brendan Blumer, had to say about the strategy employed by EOS:

“Socially authorising the BP’s to direct token-holder funds into projects without a clear or measurable return of value is risky, and may open the door to corruption and external scrutiny.”

Many voices don’t agree with him, but it remains to be seen how things are going to work for the EOS Worker Proposal in the future.

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Author: Oana Ularu

Will Trump’s Stimulus Package Include BTC Investments As Part Of The Tax-Incentives?

One of the senior officials for President Donald Trump came with the proposal of a new economic package that stimulates people to make tax-free investments, Bitcoin (BTC) included.

It seems that the President’s administration is seriously taking new tax incentives into consideration, incentives meant to give the stock market a boost by allowing Americans to buy shares, stocks and cryptocurrencies like Bitcoin.

Tax-Free Household Income for Employees

According to what a number of sources have told on Friday to CNBC, the new proposal wants to make a part of the household income tax-free so that people invest outside a traditional 401 (k) plan that allows employees to divert a sum from their salary towards long-term investments. Larry Kudlow, President Trump’s senior adviser and the National Economic Council director, said the approach is focused on developing tax-free savings accounts, so the capital gains wouldn’t be taxed.

The Tax-Free Proposal Would Benefit Crypto Investors

Many who have invested in cryptocurrencies have been worried about tax liability, so the investment plan that wants to make a part of the income tax-free would greatly help them. As what sources told CNBC, in a household that gets $200,000 as income per year, $10,000 would be invested in the tax-free scheme. The proposals to cut taxes are to be formally announced in September and regarded as a way for President Trump to stand out from the crowd, especially when compared with his Democratic rivals.

Americans Are Investing in the Stock Market More than Ever

The White House has these policies through which it wants to accelerate the rise of the owning stocks trend. Last year, 55% of all Americans, which is a record percentage and the greatest number since the Great Depression, were playing the stock market. However, since the US House of Representatives is currently in the Democrats’ hands, the Trump administration’s tax legislation is very likely not to pass, at least not in the near future.

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Author: Oana Ularu

Justin Sun Responds To TRX Coin Burn Criticism, Tron Super Reps Voted To Increase Cap

  • TRON foundation passed its 27th proposal altering the method by which voting and block rewards are issued
  • TRON’s stakeholders (Super Reps and partners) have been the key decision-makers of the networks’ decisions

When TRON Foundation was founded in 2017 they initially started with the ERC-20 token which restricted their hard cap to only 100 billion TRX. However, in June 2018 when they had just announced their mainnet, TRON’s executives took the DPoS (Delegated Proof of Stake) approach. On which they introduced block and voting rewards for TRON’s Super Reps and those that held TRX stake. This resulted in the lifting of their hard cap.

Founder Justin Sun responded to TRX holders that went to social media to call out Tron for not running a coin burn since Justin promised to not let the supply cross 100 billion.

With an estimated reward of close to 500 million TRX annually, the blocks rewards are more often than not reserved for the super reps while the voting rewards are subject to division by the total votes.

Rewards per year = (SR rewards per block + voting rewards per block) * (seconds of one year/seconds of block time)

Therefore;

Rewards per year = (32 + 16) * 365 * 24 * 3600 / 3 = 504,576,000

The 27th proposal.

TRON’s 27th proposal sailed through on the 2nd Nov 2019, whose main objective was to change the Super Reps block rewards to around 16 TRX while altering voting rewards awarded to the 127 partners (27 Super Reps and following 100 partners) to around 160 TRX.

This brought about a substantial increase in TRON’s reward program encouraging more people to pick up Super Reps and partners and be active participants in voting and staking of TRON mainnet. Now all the functions are decentralized with close to 90% of rewards being pocketed by those who have a stake in TRON. This would mean that TRON’s hard cap would be subject to decision by block and voting rewards. Their rewards have since skyrocketed to 1.85 billion TRX annually.

Rewards per year = (SR rewards per block + voting rewards per block) * (seconds of one year/seconds of block time)

Rewards per year = (16 + 160) * 365 * 24 * 3600 / 3 = 1,850,112,000

Notably, TRON foundation doesn’t govern the TRON mainnet. It is mainly controlled by those who hold TRX and the community around TRX. The last decision TRON foundation made in regards to the Network was the original issuing of one hundred billion TRX, while all other key decisions were completely made by the super Reps and partners.

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Author: Lujan Odera

Litecoin Founder Charlie Lee Proposes 1% Block Reward Funding Plan To Rake in $1.5 Million

  • Proposal for donating 1% of block rewards to generate $1.5 million per year
  • It’s like paying for your kid’s college and “securing your family for the long term” – Litecoin developer

Litecoin founder Charlie Lee proposed a donation program to fund the Litecoin network. The donation of just 1% of block rewards amounting to 0.125 LTC by every miner would generate a fund of $1.5 million yearly.

“I think a better way to fund development is mining pools voluntarily donate a portion of the block reward,” wrote Lee on Twitter. He added:

“How about Litecoin pools donate 1% (0.125 LTC) of block rewards to the LTC Foundation? If every miner/pool does this, it amounts to about $1.5MM donation per year!”

The organization, Litecoin Foundation, LitecoinDotCom, The Lite School, to which the donations would be sent to can be chosen by miners, he said.

A reasonably small amount to give back to the public good

He explains how currently with merged mining for Dogecoin and other Scrypt coins, miners make more than 105% of block rewards. As such, Lee said,

“1% is a reasonably small amount to give back towards funding a public good.”

Decred has built-in funding where a Treasury wallet receives 10% of the block reward which can be used to finance the network developments. This wallet receives around about 15k DCR every month. Currently, the wallet has over 700k DCR in the wallet worth over $12 million, at current prices.

This is in a way similar to Zcash’s (ZEC) Founder’s Reward where 5.7% of the block reward goes to the project’s founders, employees and advisers with the exception that in Decred there is no time limit.

Securing the Litecoin Family for the Long Term

According to the Lite School, the voluntary donation should have a time limit of 2-3 years as then it would be more likely for pools to donate.

“There should be a budget, and there should also be a with a revenue model to become self-sustainable,” proposed The Lite School adding,

“Even though I think this is a good idea, I don’t like that it centralizes Litecoin more.”

While Crypto Twitter doesn’t seem to be in favor as some compare it to paying more taxes voluntarily, Litecoin developer Loshan says, “it’s up to the miners to donate or sit still” and that

“it’s more like paying for your kids college so that they perform well and get good jobs which end up securing your family for the long term.”

BCH’s Coercive Funding a Bad Precedent

Lee’s suggestion came just two days after a group of Bitcoin Cash miners proposed a “short-term donation plan” where the block reward will be cut by 12.5% to fund the network development.

Back in November 2019, Roger Ver’s Bitcoin.Com announced a $200 million fund to promote the growth of the BCH ecosystem and now with this new funding plan they will bring in about another $6.8 million.

BCH’s coercive soft fork Lee said would likely lead to may forks and “adding such a centralizing feature in this coercive manner sets such a bad precedent.”

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Author: AnTy

Japanese Lawmakers Are Open to Issuing A Digital Yen To Compete With Libra, Digital Yuan

A group of Japanese lawmakers from the ruling party came forward with the proposal of Japan issuing its own digital currency.

It seems China’s determination to create the digital yuan and Facebook’s Libra has alarmed Tokyo more than a little bit. The digital yen would be created by the government working in partnership with private companies, which would help Japan be in tune with the global changes that are happening in financial technology at the moment, thinks Norihiro Nakayama, the foreign affairs parliamentary vice president, who also said on Thursday:

“The first step would be to look into the idea of issuing a digital yen. China is moving toward issuing digital yuan, so we’d like to propose measures to counter such attempts.”

The Proposal to be Submitted Next Month to the Government

The proposal is scheduled to be submitted next month to the government. While it’s unlikely for Japan to issue a digital currency as a result of both technical and legal impediments, the proposal comes while the Bank of Japan (BOJ) has made the decisions to conduct expertise on the matter, joining 6 other central banks that did the same.

Japan’s Government and BOJ Studying Digital Currencies

While political circles in Japan are paying more and more attention to digital currencies, Prime Minister Shinzo Abe took the word in parliament on Friday and said the government and the BOJ will work together to study digital currencies and to enhance the convenience of the yen as a means of settlement.

Facebook’s Libra and China’s Digital Yuan Had Central Banks on Fire

Facebook pushing forward to launch the Libra cryptocurrency had central banks looking more into issuing their own digital currencies. At the same time, China is working to have its own digitized money too, which has caused lawmakers in Japan to express their concerns.

The Finance Minister Taro Aso said at the beginning of this month that if the popularity of the digital yuan increases when it comes to it being a means for international settlement, Japan would have a “very serious problem” because it settles transactions in dollars mostly.

Takahide Kiuchi, a former board member at BOJ, thinks the two countries, Japan and China, would have to issue digital currencies for completely different reasons.

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Author: Oana Ularu

SEC Publishes a New Proposal by Bitwise Regarding Bitcoin ETFs

The SEC or The United States Securities and Exchange Commission has recommended a proposal from Bitwise advocating why the time is ripe for the world’s first Bitcoin ETF (Exchange Traded Fund).

This document by the San Francisco-based Bitwise was presented to SEC commissioners Robert Jackson, Hester Peirce, and Elad Roisman. Bitwise is a venture-backed Cryptocurrency index and fund provider

This proposal, coupled with Bakkt soon launching its Bitcoin exchange platform next week, is just what the crypto sector requires to build trust. Cryptocurrency dealers are eagerly awaiting it to be widely accepted into the mainstream financial market.

Though Bitcoin futures have been acknowledged globally, the ETF proposal is at the moment just a plea.

Why is the World Ready for a Bitcoin ETF?

The first argument is that the Bitcoin spot sector has grown and shown more efficiency. By showing the average deviation in prices in the ten real spot Bitcoin exchanges, you will notice that since December 2017, it has decreased significantly.

It is important to note that in 2017, there was a massive blow up in the cryptocurrency market. In addition, Bitcoin custody has become fully institutional and they have a solid regulatory structure backing them.

Why Bitcoin ETFs Can Be a Massive Win for Investors

Why would Bitcoin ETFs prove to be a massive market? This can be answered in a number of ways, mainly that is brought to the table a safer method for institutional investors to put money into the asset.

Most importantly, by investing in ETF, it doesn’t necessarily translate into a direct Bitcoin purchase. Rather, it is paying for a fund that is equal to the asset’s present value. By doing this, any investors that term buying into Cryptocurrency as being high risk business will not have any reason not to join.

But still, for Bitcoin exchange-traded funds to become a reality, they have to go through an approval process by the SEC. The reason why the SEC posted the proposal from Bitwise is to reply to the questions asked about the fund’s approval.

Matt Hougan, heading global research at Bitwise, stated in the proposal that today’s Bitcoin market has been evolving over the recent years. One proof of this is Bakkt’s futures being accepted by the SEC.

In addition, Hougan also quotes Jane Street and Fidelity as prime examples of spaces where regulated institutions offer first-rate superior services and insurance. If the Bitwise proposal is approved by the SEC, then the Bitcoin ETFs will be listed on the New York Stock Exchange.

Keep in mind that a decision must be made before or by October 14th. This decision will make them highly viable for both ordinary investors and institutions. To be clear, note that just because the SEC posted this proposal is not automatic approval.

They have just been sharing information regarding Bitwises’ proposal in the recent past. But it is important to note that the future of Bitcoin looks bright.

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Author: Ali Raza