Crypto Loans – Innovative Words http://innovativewords.com/ Tue, 02 Aug 2022 14:06:44 +0000 en-US hourly 1 https://wordpress.org/?v=5.9.3 https://innovativewords.com/wp-content/uploads/2021/04/default.png Crypto Loans – Innovative Words http://innovativewords.com/ 32 32 YouHodler obtains regulatory approval to operate in Italy https://innovativewords.com/youhodler-obtains-regulatory-approval-to-operate-in-italy/ Tue, 02 Aug 2022 14:00:00 +0000 https://innovativewords.com/youhodler-obtains-regulatory-approval-to-operate-in-italy/ Milan, Italy, Aug. 02, 2022 (GLOBE NEWSWIRE) — European financial intermediary and FinTech platform YouHodler has strengthened its European footprint by obtaining registration and regulatory approval in Italy. Currently, the company has offices in Switzerland and Cyprus and serves various countries in Europe and around the world. From now on, it will once again expand […]]]>

Milan, Italy, Aug. 02, 2022 (GLOBE NEWSWIRE) — European financial intermediary and FinTech platform YouHodler has strengthened its European footprint by obtaining registration and regulatory approval in Italy. Currently, the company has offices in Switzerland and Cyprus and serves various countries in Europe and around the world. From now on, it will once again expand its physical presence in Italy.

Since July 29, 2022, YouHodler has been officially registered and approved by the Organismo Agenti e Mediatori (OAM) in Italy as a cryptocurrency service provider. This registration allows YouHodler to offer its wide range of crypto services to Italian customers in accordance with local regulations.

In a statement, YouHodler legal counsel Julian Grech said, “We are extremely pleased with this recording. This is a new step in YouHodler’s strategy to expand its presence in Europe. Further local licenses and registrations are expected shortly.

Following the announcement, YouHodler says it will take steps to create physical office space in Milan and recruit local teammates. This new structure will align with all local operations in accordance with Italian regulations.

Grech added that “we are delighted to continue to serve our loyal, long-standing Italian customers in a new and exciting way. This latest announcement means we can take them to an even higher level, opening new gateways to creative and innovative financial possibilities. »

Interested parties can check the registration of YouHodler in Italy here.

About YouHodler

YouHodler FinTech platform focuses on crypto lending with fiat (USD, EUR, CHF, GBP), crypto (BTC) and stablecoin (USDT, USDC, TUSD, PAX, PAXG, DAI, HUSD), crypto/fiat and crypto/crypto conversions, as well as high yield generation products (crypto-rewards & staking). The platform supports BTC, BCH, BNB, ETH, LTC, XLM, XRP, DASH, HT, REP and other popular cryptocurrencies and tokens. User’s digital assets are securely protected with advanced security options from Ledger Vault and Fireblocks.

YouHodler is an EU and Swiss based brand with three main offices in Cyprus, Switzerland and Italy. To learn more about YouHodler, visit youhodler.com.

        
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Aave DAO Endorses Creation of GHO Stablecoin https://innovativewords.com/aave-dao-endorses-creation-of-gho-stablecoin/ Sun, 31 Jul 2022 15:34:59 +0000 https://innovativewords.com/aave-dao-endorses-creation-of-gho-stablecoin/ An overwhelming majority of Aave DAO voters approved the creation of a new stablecoin. The proposalsubmitted by Aave Companies, was backed by 99.9% of voters, who pledged half a million AAVE by approving the measure to create GHO, a stablecoin that will be backed by collateral made up of other cryptocurrencies . Aave is a […]]]>

An overwhelming majority of Aave DAO voters approved the creation of a new stablecoin.

The proposalsubmitted by Aave Companies, was backed by 99.9% of voters, who pledged half a million AAVE by approving the measure to create GHO, a stablecoin that will be backed by collateral made up of other cryptocurrencies .

Aave is a decentralized, noncustodial marketplace protocol that allows users to borrow and lend cryptocurrencies. While providing liquidity to the cryptocurrency market, users can earn passive income on digital assets allocated to a smart contract. It’s open-source and has $9.8 billion in cash, according to Aave’s website.

Users looking to mint GHO first will deposit cryptocurrencies accepted by Aave. People who borrow GHO against crypto assets will still earn interest on the underlying collateral used to mint the stablecoin. The loan protocol will also charge interest on loans taken out in the GHO, with payments going to the Aave DAO.

The deposits users allocate to hit the GHO will need to be greater than the value of the GHO they receive, which means the loans will be over-collateralized. When users repay a borrowed position or are liquidated, the loaned GHO will be burned from the protocol.

Even though the measure has been approved, the introduction of GHO will take time as it is implemented through an Aave Improvement Protocol (AIP), with the Aave DAO responsible for overseeing the distribution of the stablecoin once its creation is approved. .

Voting took a total of three days and the price of AAVE – the lending platform’s native coin –dope immediately after approval of the proposal, to about $108 from $95.40. At press time, AAVE was valued at $102.50, up 4.5% in the last 24 hours.

Right now, the market capitalization of all stablecoins is over $153 billion, according to CoinMarketCap, and primarily comprised of Tether’s USDT and Circle’s USDC. US legislation regarding the regulation of the digital asset class has recently been pushed back.

GHO will be pegged to the US dollar and the stablecoin will be backed by a mix of cryptocurrencies that users can already deposit on the platform. The native interest rate of the stablecoin will be determined by the Aave DAO, according to a introduction from GHO on the Aave website.

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Clearpool launched unsecured loans on Polygon https://innovativewords.com/clearpool-launched-unsecured-loans-on-polygon/ Fri, 29 Jul 2022 13:08:15 +0000 https://innovativewords.com/clearpool-launched-unsecured-loans-on-polygon/ Clearpool has announced the launch of its collateral-free lending on Polygon, the scaling solution for Ethereum. The launch provides users with an improved experience and greater capital efficiency. The innovative DeFi protocol will be accessible to institutional borrowers and a decentralized network of lenders. This is the first time that the large-scale institutional DeFi solution […]]]>

Clearpool has announced the launch of its collateral-free lending on Polygon, the scaling solution for Ethereum. The launch provides users with an improved experience and greater capital efficiency.

The innovative DeFi protocol will be accessible to institutional borrowers and a decentralized network of lenders. This is the first time that the large-scale institutional DeFi solution has moved to the Ethereum-enabled scaling platform.

Over $180 million in institutional loans have been issued by Clearpool since its launch on the Ethereum network in March 2022. The list of users includes major crypto institutions and TradFi.

It can be expected that the improved platform scalability and user efficiency will catch on after the integration.

Robert Alcorn, CEO and co-founder of Clearpool, called the launch a milestone as it has been part of their plan since day one. Robert Alcorn added that the integration would help the platform bring institutional DeFi to the Polygon ecosystem.

The integration will also help take Clearpool to the next level in user adoption and efficient access to the lender network.

When combined, all of the updates will improve funding diversification for borrowers, leading to greater efficiency in Clearpool’s ecosystem. It is backed by leading global investors such as HashKey Capital, Arrington Capital and Sequoia Capital India, to name a few.

Clearpool offers more effective opportunities to attract new borrower profiles to DeFi. The opportunities allowed users to manage and hedge risk through unique concepts, namely tokenized credit and single borrower liquidity pools.

Clearpool’s goal is to bridge the gap between the traditional borrow-and-lend market mechanism and modern DeFi.

Another recent launch came in partnership with Jane Street. The launch was its first authorization pool. Another company to join the partnership was BlockTower Capital. Clearpool was designed to be a cost-effective, scalable, and transparent-to-integrate multi-chain protocol that millions of users can access. The blockchain integration with Polygon is the first after launching on Ethereum, enabling faster and more cost-effective transactions for Clearpool’s decentralized network and its users.

A list of current borrowers for Clearpool includes but is not limited to:-

  • FBG Capital
  • amber
  • Jeanne Street
  • Aurora
  • winter mute
  • Folkvang

New Borrower Pools will not launch after deployment to Polygon. One such name includes Parallel Capital, details of which will be announced shortly.

The launch will be followed by the exclusive limited time promotion where lenders of the launched genesis liquidity pools will be able to reap rewards in MATIC in addition to interest earned on USDC and CPOOL LP rewards.

Hamzah Khan, Head of DeFi & Labs at Polygon, said the team aims to onboard 1 million customers on Web3, and only players like Clearpool can help lead the way. He added that the team innovated at the forefront of on-chain borrowing and lending by providing a decentralized marketplace for unsecured institutional capital.

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Institutional Digital Asset Lending Venue, CLST, Completes Oversubscribed Multimillion-Dollar Raise Led by Spartan Group, Coinbase Ventures, Kraken Ventures and Other Leading Investors https://innovativewords.com/institutional-digital-asset-lending-venue-clst-completes-oversubscribed-multimillion-dollar-raise-led-by-spartan-group-coinbase-ventures-kraken-ventures-and-other-leading-investors/ Wed, 27 Jul 2022 13:00:00 +0000 https://innovativewords.com/institutional-digital-asset-lending-venue-clst-completes-oversubscribed-multimillion-dollar-raise-led-by-spartan-group-coinbase-ventures-kraken-ventures-and-other-leading-investors/ Zurich, Switzerland–(BUSINESS WIRE)–CLST (pronounced “Caeleste”), an institutional-only lending and borrowing venue for stablecoins and crypto assets, has successfully closed a multi-million dollar funding round, led by Spartan Group, with participation from Coinbase Ventures, Kraken Ventures, GSR, Menai Financial Group, Luno Expeditions, a subsidiary of Digital Currency Group, and TX Ventures – the VC investment arm […]]]>

Zurich, Switzerland–(BUSINESS WIRE)–CLST (pronounced “Caeleste”), an institutional-only lending and borrowing venue for stablecoins and crypto assets, has successfully closed a multi-million dollar funding round, led by Spartan Group, with participation from Coinbase Ventures, Kraken Ventures, GSR, Menai Financial Group, Luno Expeditions, a subsidiary of Digital Currency Group, and TX Ventures – the VC investment arm of TX Group.

A one-stop shop for peer-to-peer lending and borrowing, CLST attracts digital asset lenders and borrowers such as hedge funds, trading firms, treasuries, asset managers and crypto banks looking for features automated digital asset collateral management systems. Capitalizing on the recent immaturity of the crypto debt market that led to financial difficulties for market leaders, CLST effectively automates bilateral price trading and settlement for the unsecured and secured short-term debt market. With a large number of institutions participating in the network after a soft launch in early 2022, CLST will go live with a broad version of the app later this year.

“CLST sits at the crossroads of the crypto asset short-term debt market and the traditional financial market. In tandem with our world-class investors and partners, we are establishing a marketplace for stablecoins, digital assets, fiat and beyond – the ‘new money’,” said Michael Guzik, Founder and CEO of CLST. “With this new funding, CLST will strengthen its peer-to-peer infrastructure through increased operational and business expansion, ultimately creating a lending facility that has not been made possible between institutional entities, until now.”

“With the current market environment exposing points of failure, it is clear that the crypto industry needs a better way to manage liquidity and counterparty risk as it continues to mature,” said Spartan Group Director Leeor Groen. “We are pleased to support the CLST team as they launch the leading platform to facilitate both institutional borrowing and lending as well as cash management solutions for digital asset market participants.”

The lack of counterparty risk assessment has also plagued the lending industry, prohibiting sophisticated parties from participating in a lucrative part of the industry. Currently, lenders have limited visibility into a borrower’s business risk, while borrowers have no control over the collateral posted to obtain loans. To alleviate this hurdle, CLST provides one-click financial data sharing and collateral management processes so that lenders and borrowers can accurately and efficiently assess their relationship before the negotiation and the value of the collateral after the negotiation.

CLST meets the requirements of any principal and agent lender wishing to automate the entire loan management process. Features such as e-quoting, trading, portfolio-to-portfolio transactions, collateral management, and transaction reporting allow any trade participant to engage in the short-term debt markets. The inherent lack of infrastructure to connect lenders and borrowers hampers institutional adoption and depth of liquidity. This is why the automation and security of collateral management, combined with the assessment of counterparty risk, are essential pillars of CLST.

To learn more about the CLST, please visit clst.com.

About CLST

CLST (pronounced “Caeleste”) is the institutional communication hub for lending or borrowing stablecoins and crypto assets, automating multi-dealer price trading and price matching for institutional lenders. CLST Markets integrates next-generation features such as automated collateral management, counterparty risk assessments, interest rate benchmarking, blockchain-based electronic promissory notes and portfolio connectivity for settlements automated. CLST aims to address market uncertainties and scaling issues in unsecured and secured lending and borrowing of stablecoins and crypto assets. For more information, please visit www.clst.com.

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What caused it, how to fix it https://innovativewords.com/what-caused-it-how-to-fix-it/ Mon, 25 Jul 2022 01:48:00 +0000 https://innovativewords.com/what-caused-it-how-to-fix-it/ Liquidity issues arise when protocol owners don’t forecast unfavorable periods, according to Brian Pasfield, technical director of Marginal funding. Current market conditions are far from perfect for many in the crypto industry, and lending platforms are no exception. Over the past few months, many have faced liquidity issues that have put a strain on their […]]]>

Liquidity issues arise when protocol owners don’t forecast unfavorable periods, according to Brian Pasfield, technical director of Marginal funding.

Current market conditions are far from perfect for many in the crypto industry, and lending platforms are no exception. Over the past few months, many have faced liquidity issues that have put a strain on their users and the broader crypto space.

Let’s analyze how we came to deal with these problems – and try to suggest solutions.

Liquidity issues: Rise in market turmoil

Celsius created every trade media imaginable when it suspended all withdrawals due to liquidity concerns last month. After announcing that it would lay off a trimester of its employees due to “extreme market conditions”, Celsius filed for Chapter 11 bankruptcy.

Similarly, two weeks ago (an eternity in crypto land), crypto platform Voyager Digital announced a suspension of cryptocurrency trading and withdrawals for its users. As noted by representatives of the company, the reason for this is the unpaid payment of a loan from the crypto hedge fund Three Arrows Capital (3AC). Voyager Digital also suffers bankruptcy procedure.

A third example of how recent market declines continue to wreak havoc is Vauld, a Singaporean cryptocurrency exchange and lending platform. Vauld recently suspended operations, citing financial difficulties in volatile market conditions. The collapse of Terra, the financial difficulties of Celsius Network and the default of Three Arrows Capital on its loans were the main reasons given for this suspension.

Interestingly, it seems that the liquidity issues surrounding the crypto ecosystem can all be traced back to a specific time.

Does it seem simplistic to single out Terra for ripple effects in crypto markets? It’s not. While a single event cannot be responsible for everything that happens in crypto, it does show the worrying fragility of our environment.

And once one domino falls, the others follow, revealing who chose to rely on notions of “too big to fail.”

Attempts to restore liquidity

Crypto projects typically use two approaches to restore liquidity. Large debt repayments can help restore confidence in the creditworthiness of platforms and allow withdrawals again. An example of debt repayment is the recent payment of $120 million Celsius to Dai Multiparty Vault No. 25977. This avoids vault liquidation costs and reduces the likelihood of forced liquidation of funds.

On a different note, DAO and DeFi projects are looking for ways to make their cash tokens liquid without selling them. New wave DeFi lending platforms are offering solutions. On the one hand, Fringe Finance officially in partnership with Lido Finance, another crypto-lending organization that aims to address issues with initial ETH 2.0 staking. Problems include illiquidity, immobility and accessibility. The goal is to make whitelisted altcoins more liquid and usable in growing DeFi ecosystems.

Liquidity problems: the root cause

Crypto credit companies were at the forefront of the 2020-2021 crypto rally. Today, however, they are grappling with many critical issues regarding tokenomics, algorithms, and liquidity.

These problems stem from the fact that we now have access to more complex financial tools than ever before. At the same time, these are permissionless and unregulated. The developers had the ambition to create platforms that would yield as much financial gain as possible.

The crucial problem is that most platforms are designed with the assumption of perpetual growth. As soon as growth stops, the bubble will burst. The more massive the platform becomes, the more destruction the explosion can cause to the wider crypto ecosystem, creating a domino effect.

As this effect spreads and the market bleeds, liquidity escapes as people exit cryptoassets or adopt HODLing strategies. In conclusion, if manufacturers do not consider the circumstances of worse times when designing their protocols, another crisis could very well become their end.

About the Author

Brian Pasfield is the CTO of Marginal funding. He has 10 years of expertise in blockchain, cryptocurrency, fintech and DeFi. He has completed technically complex projects that leveraged his engineering background and deep understanding of industry trends and philosophies. Brian has also worked with industry blockchain bodies to lobby for changes in legislation and government policies.

Got something to say about liquidity issues or something else? Write to us or join the discussion in our Telegram channel. You can also find us on tik Tok, FacebookWhere Twitter.

Disclaimer

All information contained on our website is published in good faith and for general information purposes only. Any action the reader takes on the information found on our website is strictly at their own risk.

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Sam Bankman-Fried’s FTX May Buy South Korean Crypto Exchange Bithumb: Report https://innovativewords.com/sam-bankman-frieds-ftx-may-buy-south-korean-crypto-exchange-bithumb-report/ Fri, 22 Jul 2022 21:12:44 +0000 https://innovativewords.com/sam-bankman-frieds-ftx-may-buy-south-korean-crypto-exchange-bithumb-report/ This crypto winter, rumors of FTX rescuing or acquiring struggling crypto companies have proliferated – and now South Korean crypto exchange Bithumb is reportedly on FTX CEO Sam Bankman-Fried’s shopping list. According to a report of Bloomberg, FTX is in late-stage talks to potentially acquire Bithumb, which has over 8 million registered users. The conversations […]]]>

This crypto winter, rumors of FTX rescuing or acquiring struggling crypto companies have proliferated – and now South Korean crypto exchange Bithumb is reportedly on FTX CEO Sam Bankman-Fried’s shopping list.

According to a report of Bloomberg, FTX is in late-stage talks to potentially acquire Bithumb, which has over 8 million registered users. The conversations are said to have been going on for “several months”.

When asked to confirm or deny the report, a representative from FTX said Decrypt “no comment.” Bithumb has not replied yet Decryptrequest for comment.

Although it has seen over $1 trillion in total volume traded on its exchange, Bithumb has struggled over the years. In 2020, Bithumb faced a number of court case and Houbi would have sought to acquire it, but never did.

Last month, FTX acquired Canadian crypto exchange Bitvo. In a statementBankman-Fried said the purchase was made “to expand FTX’s global reach.”

“Our expansion into Canada is another step in proactively collaborating with cryptocurrency regulators in different regions around the world,” Bankman-Fried added.

FTX is also buying struggling lender BlockFi in a $680 million credit agreement and acquisition.

And in June, rumors swirled that FTX was also in talks to acquire a trading platform. Robin Hoodwho dismissed 9% of its staff in April due to the slowdown in growth. Bankman-Fried has since denied the reports.

That said, it makes sense that FTX is looking to acquire crypto companies at a discount during this bear market. Bankman-Fried said earlier this month that FTX still has “a few billionwhich could be deployed to stabilize other crypto companies. In theory, these funds could also be used to buy them directly.

While it’s unclear whether the Bankman-Fried exchange will actually acquire Bithumb, FTX is clearly working to achieve what it believes to be its “responsibilityto stabilize the crypto industry as a whole during this turbulent time.

In the wake of the Celsius and digital travel bankruptcy filings, surprised retail investors were unable to access or withdraw their funds.

In response, Bankman-Fried said on Friday it was “happy to do what we can” to help Voyager customers by providing liquidity to the insolvent business.

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Bitcoin Drives Crypto Rebound https://innovativewords.com/bitcoin-drives-crypto-rebound/ Wed, 20 Jul 2022 14:27:00 +0000 https://innovativewords.com/bitcoin-drives-crypto-rebound/ The cryptocurrencies increased their gains by more than 3% overnight to reach a market capitalization of $1.08 trillion. The gains came despite lackluster trends on Wall Street as well as dollar strength reflected in a higher dollar index. Overnight gains for market leader Bitcoin came in at 7.4%, allowing the major cryptocurrency to trade at […]]]>

The cryptocurrencies increased their gains by more than 3% overnight to reach a market capitalization of $1.08 trillion. The gains came despite lackluster trends on Wall Street as well as dollar strength reflected in a higher dollar index.

Overnight gains for market leader Bitcoin came in at 7.4%, allowing the major cryptocurrency to trade at $23,801.92. BTC has been swinging between a high of $23,877 and a low of $22,106 over the past 24 hours.

Among the top 100 cryptos, only Dogecoin (DOGE) ranked 10th, Lido DAO (LDO) ranked 75th, Shiba Inu (SHIB) ranked 15th, and Flow (FLOW) ranked 31st saw better overnight performance. DOGE reportedly won on some whale trades.

Ethereum’s overnight gains to #2 were more modest at 3.5%. Ether traded between $1,607 and $1,517 in the past 24 hours. ETH is currently trading at $1,595.

Contrary to weekly performance, Ethereum gained 53% while Bitcoin only rose 24%.

Tether (USDT), ranked 3rd, traded between $1.00 and $0.9999 in the past 24 hours.

The 4th ranked USDCoin (USDC) traded between $1.00 and $0.9994 in the last 24 hours.

The 5th ranked BNB (BNB) has gained just over 2% in the past 24 hours and over 22% in the past week.

The 6th ranked XRP (XRP) gained more than 3% overnight.

Cardano (ADA) jumped a notch with a 5% rally overnight, relegating BinanceUSD (BUSD) to 8th position among all cryptocurrencies. BUSD traded between $1.00 and $0.9983 in the past 24 hours.

Solana (SOL), 9th, missed the rally and lost more than 2% in the last 24 hours. However, among the top 10 cryptos, Solana’s weekly gain of 40% ranks second, behind Ethereum’s gain of 53%.

Arweave (AR), ranked 79th, Ethereum Classic (ETC) ranked 24th, and Compound (COMP), ranked 85th, lost more than 4% overnight despite the widespread market rally.

Meanwhile, crypto lending platform Celsius, which filed for bankruptcy on July 13, declared a recovery plan in which it revealed plans to use bitcoin hit by mining operations to help fund mining operations and developing bitcoin holdings. The recovery plan also shows that customers would have the option, at the customer’s option, to cash back or go crypto “long.”

The legal outcome of the bankruptcy proceedings involving Celsius, the lender that reported a $1.2 billion deficit in its balance sheet, would be closely watched by the crypto world. The massive turmoil in the crypto world has also rocked crypto broker Voyager Digital, hedge fund Three Arrows Capital as well as various other crypto market entities.

A key legal issue at the end of the case is whether the crypto assets in possession of Celsius are the property of the estate. The status of crypto assets held under the Custody vs. Earn as well as crypto assets transferred to Celsius to secure institutional and retail loans would also be subject to legal review.

If customers are entitled to the return of crypto in kind, the date when the crypto claim would be determined (e.g., petition date, effective date, or distribution date), the exact meaning of ne not infringe a crypto claim or pay a crypto claim in full are all issues that should be thoroughly investigated from a legal perspective.

Other points for legal scrutiny include, among Celsius entities, customers have claims, and whether retail and institutional borrowers have a right of set-off when they (a) have borrowed money, stablecoins, or coins. other cryptos to Celsius and (b) transferred crypto to Celsius. Also relevant is whether Celsius can recover customer withdrawals or loan liquidations made within 90 days of deposit as preferences.

Meanwhile, Skybridge Capital announced a temporary halt to withdrawals from its Legion Strategies Fund, citing exposure to crypto. The move was confirmed by founder Anthony Scaramucci.

Despite the bankruptcy crises, the momentum in the crypto market continues amid concerns over whether the recent rally signifies a bull market or a bull trap.

For more information on cryptocurrencies, visit rttnews.com

For comments and feedback, contact: Editorial@rttnews.com

Tech News

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CryptoPunks floor price tops $100,000 in Ethereum for the first time in two months https://innovativewords.com/cryptopunks-floor-price-tops-100000-in-ethereum-for-the-first-time-in-two-months/ Mon, 18 Jul 2022 21:10:32 +0000 https://innovativewords.com/cryptopunks-floor-price-tops-100000-in-ethereum-for-the-first-time-in-two-months/ In short The cheapest CryptoPunks NFT available is now listed above $100,000, surpassing that mark for the first time in two months. The Punks’ price hike follows a pair of high-value sales last week, at $2.6 million and $3.3 million respectively. All major blue chips Ethereum NFT collections have taken a huge hit in value […]]]>

In short

  • The cheapest CryptoPunks NFT available is now listed above $100,000, surpassing that mark for the first time in two months.
  • The Punks’ price hike follows a pair of high-value sales last week, at $2.6 million and $3.3 million respectively.

All major blue chips Ethereum NFT collections have taken a huge hit in value over the past two months amid the broader crypto market crashand CryptoPunks was no exception. But next a pair of multi-million dollar sales in the collection, the price even for the cheapest NFT of the project has increased significantly over the past week.

On Sunday, the floor price of CryptoPunks, i.e. the cheapest available NFT listed on a secondary market, exceeded $100,000 of ETH for the first time in two months, since May 18, according to the data of NFT floor price. As of this writing, the floor price of CryptoPunks stands at 84.85 ETH, or around $113,500.

Measured in US dollars, the entry-level price of CryptoPunks has jumped nearly 31% over the past week. This is partly due to rising value of Ethereumwhich itself has risen 27% in the past seven days, according to data from CoinGecko.

But that’s not the whole story here. Measured in terms of ETH, the CryptoPunks floor is still up nearly 12% over the past week and nearly 27% over the past month. However, this is not a market-wide trend for high-value NFTs.

For example, the Bored Ape Yacht Club– which has a floor price of 94 ETH right now, or around $125,750 – has seen its ETH floor price drop by 5% over the past week. But thanks to the rise in the value of ETH, the floor of the USD rose by almost 11% this week.

An NFT is a blockchain token that serves as proof of ownership of an item, often digital assets like profile pictures, as in this case, as well as artwork, collectibles, and video game items. The NFT market hit $25 billion value of trade volume in 2021, with about $20 billion more added to that tally so far in 2022.

CryptoPunks is one of the most successful projects in the space. Larva Labs launched the collection in 2017 and initially distributed the NFTs for free. The project has since become something of a status symbol for those in the crypto industry. To date, the collection has generated over $2.3 billion in trade volume, including a record sale of $23.7 million (8,000 ETH) in February.

This week’s price surge follows a pair of multimillion-dollar CryptoPunks selloffs. A sold for over $2.6 million (2,500 ETH) on July 13, while another sold for $3.3 million (2,691 ETH) two days later. Both are rare monkey avatars in the collection of 10,000 profile pictures, and both sales rank among the top five on-chain CryptoPunks sales when measured in ETH.

Even at a current floor price of around $113,500, CryptoPunks have still lost significant value this year. The floor hit a 2022 high of over $260,000 on January 3 and has remained as high as $241,000 as recently as April 4. But like the Bored Apes and other popular NFT collections, prices crashed as the cryptocurrency market crashed.

CryptoPunks was long considered the most valuable NFT profile picture project until last December, when the Bored Ape Yacht Club has exceeded its floor price. According CryptoSlamthe two projects are neck and neck in all-time secondary transaction volume, with approximately $2.33 billion for each collection.

In March, Yuga Labs, creator of Bored Ape bought IP rights from CryptoPunks from original creator Larva Labs, bringing the two popular projects together under one roof. Yuga Labs has since allowed CryptoPunk holders to market their own images, as with the Bored Apesremedy a long-standing point of contention for some Punk owners.

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How Ethereum players on Lido Finance are negotiating the merger https://innovativewords.com/how-ethereum-players-on-lido-finance-are-negotiating-the-merger/ Sat, 16 Jul 2022 14:09:33 +0000 https://innovativewords.com/how-ethereum-players-on-lido-finance-are-negotiating-the-merger/ Decrypt DeFi is Decrypt’s DeFi email newsletter. Drawing: Grant Kempster Some of the greatest fortunes in crypto have been made through arbitration games. Some of them lay in plain sight but too difficult to execute; others were hidden. Think Arthur Hayes or Sam Bankman-Fried. Arbitrage was exactly how they were able to fund the launch […]]]>
Decrypt DeFi is Decrypt’s DeFi email newsletter. Drawing: Grant Kempster

Some of the greatest fortunes in crypto have been made through arbitration games. Some of them lay in plain sight but too difficult to execute; others were hidden.

Think Arthur Hayes or Sam Bankman-Fried. Arbitrage was exactly how they were able to fund the launch of their respective exchanges. After that, however, the trajectories of the two founders took quite different turns. the old pleaded guilty this year for violating the US Bank Secrecy Act, while the latter appeared as the buyer of last resort amid the latest crypto meltdown.

Yet the two have cut their teeth buying crypto low and selling it high elsewhere. Bankman Fried benefited of South Korea’s so-called Kimchi bounty, and Hayes earned his money from a similar premium on the Chinese mainland.

Nowadays, another potentially lucrative arbitrage exists. Currently, the value of Lido Staked Ethereum (stETH), a token that previously traded 1:1 to the price of Ethereum, lost its peg to ETH.

At the time of writing, STETH is worth $1,037, and ETH is $1,081, a 4.7% discount on stETH. This discount has been known for a while, so why haven’t any of crypto’s Hayes and Bankman-Fried picked up this neat little trade yet?

Granted, it should be easy to just buy the stETH at a discount, then trade it for regular ETH and pocket the difference, right?

Well, not exactly. It’s because of the way Financing of the Lidothe stETH provider, operates.

How Lido Finance works

Lido is a staking service that allows users to deposit Ethereum, receive stETH in return, and earn a small percentage return for doing so. Lido then takes those repositories and adds them to Ethereum’s Beacon chain, essentially a ghost parallel version of Ethereum’s original proof-of-work version (but which uses proof-of-stake).

Lido has become a market leader for offering this.

Dune Analytics shows that Lido currently controls 31.5% of deposits on Beacon Chain; that is, there are over 4.1 million ETH locked up in Lido smart contracts. That’s a whopping $4.4 billion at today’s prices.

Depositors of the Ethereum Beacon chain (source: Dune)

Due to the way the platform generates this return (i.e. by betting it on what will eventually become Ethereum 2.0), no redemption mechanism is currently available. Sophisticated arbitrageurs cannot return these stETH deposits for the ETH they deposited in the first place.

Of Swimming pool: “While Lido allows you to transfer, exchange and use your “staked ETH” before the launch of phase 1.5, you can only exchange staked ETH for ETH after activating transfers on Ethereum 2.0 “Staked ETH” is minted on a 1:1 basis for each ETH staked through Lido and burned once the “Staked ETH” is exchanged for ETH.”

So that’s it for stETH, right? The market is simply expected to ignore this unanchoring as another failed experiment in Challenge?

Not enough. In fact, for some Ethereum bulls, this may even represent another opportunity to bet big on the successful launch of Ethereum 2.0. Remember: “You can only exchange staked ETH for ETH after enabling transfers on Ethereum 2.0.”

So, in the meantime, you could hypothetically start scooping up all that discounted ETH waiting for the time when you can finally redeem it 1:1.

Betting on the merger

It may seem easy, like capturing the Kimchi Premium in its early stages, but it takes a lot of courage.

When you make such a bet, you are assuming that: 1) the long-awaited Ethereum upgrade will indeed take place, 2) Lido will still be there at that time, and 3) the price of ETH will not have not fall at the time of The Merge, gobbling up any potential arbitrage profit.

Today, Ethereum is still in four figures. Tomorrow it could be reduced to three.

Another consideration is that of opportunity cost. By making this bet you are also assuming that there are not yet more lucrative bets to be made elsewhere. You might end up missing the next big thing while waiting to redeem said Ethereum.

Another similar bet you could make is on Grayscale’s Bitcoin Trust, which is currently trading at an even steeper 30% discount to the underlying asset.

In this bet, however, you are essentially betting on the final approval by the Securities and Exchange Commission of a BTC spot ETF. Who knows when that will happen.

As for the Merge event, Ethereum developers are announcing September, for now.

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Why This Cardano-Based Lending Platform Sees a 20% Rise in TVL https://innovativewords.com/why-this-cardano-based-lending-platform-sees-a-20-rise-in-tvl/ Thu, 14 Jul 2022 22:26:02 +0000 https://innovativewords.com/why-this-cardano-based-lending-platform-sees-a-20-rise-in-tvl/ Data of DeFi Llama records a massive increase in the total value locked (TVL) of FluidTokens, a Cardano-based lending protocol. This blockchain rolled out its smart contract capabilities in late 2021 and has seen a spike in ecosystem growth as more projects are launched on the mainnet. Related Reading | When will the prolonged extreme […]]]>

Data of DeFi Llama records a massive increase in the total value locked (TVL) of FluidTokens, a Cardano-based lending protocol. This blockchain rolled out its smart contract capabilities in late 2021 and has seen a spike in ecosystem growth as more projects are launched on the mainnet.

Related Reading | When will the prolonged extreme fear stretch in crypto end?

According to DeFi Llama, the Cardano-based lending and borrowing platform has seen a 20% increase in TVL over the past week and a 56,600% increase in TVL over the past hour. FluidTokens managed to take the 7e position in terms of TVL with $24,200.

This is well below the number one protocol in terms of TVL, WingRiders, which registers $50 million, and the second ranked protocol, Minswap, which registers $37 million. However, FluidTokens has been live for over a month and has cemented some major partnerships, suggesting the trend may be spreading.

Via Twitter, the team behind the project announced a partnership with Eternl, a Cardano lightweight wallet provider. The collaboration will allow users to access FluidTokens products “from any device”.

Additionally, the platform has enabled liquidity for other Cardano projects. The platform will allow users to trade with non-fungible tokens (NFTs) from Yummi Universe, a popular project on this blockchain, and will allow users to access a new use case: using their digital assets to obtain liquidity. .

Other data provided by DeFi Llama records a spike in token inflows and USD inflows for FluidTokens over the past week. This peak in protocol activity could be linked to the partnerships and collaboration announced in June and July.

Source: DeFi Lama

In the coming months, the protocol will enable staking functionality for its native FLUID token and consolidate DAO investment fund sponsorships. By the end of the year, the platform will roll out additional features to further encourage user activity.

Cardano follows the general market trend

The Cardano ecosystem has grown at a rapid pace and garnered a lot of attention due to its “Vasil” Hard Fork Combinator (HFC) event. At the time of writing, the price of ADA is trading at $0.44 with a profit of 4% in the last 24 hours and a loss of 4% in the last week.

Cardano ADA ADAUSDT
ADA price trends down on the 4-hour chart. Source: ADAUSDT Tradingview

The upcoming “Vasil” HFC will implement network updates and improvements to the Cardano blockchain. This should contribute to the price of ADA and provide bullish momentum for the cryptocurrency.

Cardano has been trending down more aggressively than other top 10 cryptocurrencies by market capitalization. This is likely driven by the general risk sentiment in the crypto market.

Related Reading | Bitcoin Price Spends Four Weeks At 2017 Peak Prices, So What?

Data from Material Indicators registers significant resistance for the price of ADA as it climbs higher from its current levels. There are over $2 million in order requests poised to work as a major resistance. If the cryptocurrency can break above this level, it will find resistance at around $0.50.

Cardano ADA ADAUSDT MI1
The price of ADA (in blue on the chart) encounters significant resistance (ask for orders in yellow above the price). Source: Material Indicators
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