Is DeFi The Future of Crypto Finance? Some Big Industry Names Think So

The hot potato in the world of crypto at the moment is decentralized finance. Satoshi’s original notion of cutting out the bankers is now possible in this new world of digital assets and DeFi protocols. The industry is still embryonic but some of the bigger names in the world of crypto and finance are finally paying attention.
Crypto Wealth Management Built on ETH
By definition decentralized finance is a movement that leverages decentralized networks to transform old financial products into trustless and transparent protocols that run without intermediaries. In essence it is doing away with the banks and middlemen to allow people to manage their own wealth on autonomous networks governed by smart contracts.
DeFi is currently dominated by DAI which is a decentralized hard asset backed, dollar pegged stable coin.  DAI, and the MakerDAO platform uses margin trading to respond to changing market conditions while preserving its value against the major world currencies. Maker is a smart contract platform on the Ethereum blockchain that backs and stabilizes DAI through a series of dynamic feedback systems called Collateralized Debt Positions (CDPs).
By depositing ETH, people can borrow stable DAI to make other investments without risking the loss of ETH, which is what happened to most during the ICO boom. Essentially it is a crypto credit facility that can issue loans at certain interest rates. Stakers are also able to use it to generate interest while protecting their stake. Industry observer Alex Saunders noted that in a world of negative interest rates DeFi could be the answer …

Imagine #Defi Apps offering 10%pa in a world of negative interest rates. Accessing stocks, commodities & tokenised assets. Portfolios auto rebalance. Smart contracts allow custody & insurance. No middlemen taking fees. The future of wealth management is being built on #Ethereum. pic.twitter.com/Crcfm3OjhO
— Alex Saunders (@AlexSaundersAU) September 10, 2019

Maker is not the only DeFi platform out there but it is the most popular at the moment. Two others have recently be noticed by crypto exchange giant Coinbase which announced a new fund to invest in the fledgling industry.
Coinbase Invests in DeFi
In a company blog post yesterday, Coinbase stated that it aims to encourage growth in DeFi by channeling funds into the development of two protocols. To begin it will contribute 1 million of its own stablecoin, USDC, each to the development of the Compound and dYdX platforms.
Coinbase USDC Bootstrap Fund lead Nemil Dalal said that DeFi is a tiny portion of the world of banking and financial transactions, adding that the company is tracking growth in an effort to further fund its expansion.
Just last month Nasdaq announced that it was adding a decentralized finance index (DeFiX) to track the projects working in the field. It initially included Maker, Augur, Gnosis, 0x and two other obscure tokens but failed to include Ether which currently powers most of the industry.
Image from Shutterstock
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Source: New feedNewsBTC.com

Tether, Dai, Paxos take lead over Venmo as stablecoins report higher trading volume

With the market being driven by the price of Bitcoin, there are various speculations of the BTC market being manipulated by whales and others. As the users’ main focus lies with major cryptos, stablecoins are taking a lead in the competition with the payments app, Venmo in terms of transaction volumes. According to the data […]
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Source: AMB Crypto

Tron [TRX] and DAI move forward in the e-commerce ecosystem as WSWC announces support

Tron [TRX], the twelfth largest cryptocurrency in the market, takes another step in terms of its adoption to an e-commerce platform, We Shop with Crypto [WSWC]. Notably, Tron was not the only cryptocurrency to be added to its payment list, DAI, a leading stablecoin, was also added on the platform.
We Shop with Crypto announced on Twitter,
“#DAI Stablecoin now accepted on (link: http://WeShopwithCrypto.com) WeShopwithCrypto.com Buy & sell everything with #DAI on the marketplace dedicated for #Cryptocurrency Users!
#TRON $TRX now accepted on (link: http://WeShopwithCrypto.com) WeShopwithCrypto.com Buy everything with #TRX on the marketplace dedicated for #Cryptocurrency Users!”
We Shop with Crypto is an e-commerce site that has over 200 products on sale and accepts only cryptocurrencies for payments. With the addition of these two cryptocurrencies, the platform now accepts around 35 cryptocurrencies for payments. The other notable cryptocurrencies accepted for payments includes Bitcoin [BTC], Ethereum [ETH], Litecoin [LTC], Ethereum Classic [ETC], Monero [XMR], Stellar [XLM], and NEM [XEM].
We Shop with Crypto stated on its website,
“We also offer a wide range of Seller Services and tools that help creative entrepreneurs start, manage and scale their businesses. Our mission is to re-imagine commerce in ways that build a more fulfilling and lasting world, and we’re committed to using the power of business to strengthen communities and empower people.”
Tron was also in the limelight recently because of news concerning the development of the BitTorrent ecosystem. Justin Sun, the CEO of Tron Foundation, unveiled BitTorrent’s new project BitTorrent File System, a protocol and network implementation “that provides a content-addressable, peer-to-peer mechanism for storing and sharing digital content in a decentralized file system.”
Sun stated on Twitter,
“#BTFS is a continuing step in our mission to create a decentralized internet that allows everyone to share in the wealth of web commerce.”
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Source: AMB Crypto

Coinbase Ventures invests in Matic Network; platform will integrate USDC and DAI

Coinbase, a leading cryptocurrency exchange, has always been one of the highlights of the cryptocurrency space. The platform has yet again taken the spotlight with news of its venture fund investing in another blockchain project, Matic Network.
Coinbase Ventures is an early-stage venture fund launched by Coinbase in April 2018. This venture fund was launched mainly to focus on funding/ investing blockchain and cryptocurrency projects, with its first investment reported to be Compound Ventures, an Ethereum-based project.
An official announcement by Jaynti Kanani, the co-founder and CEO of Matic Network, stated that Coinbase Ventures was one of its seed investors. The blog post stated,
“We are pleased to announce Coinbase Ventures as our investor in our seed round. This investment is aligned with our goals to achieve adoption through better usability alongside scalability and will help us realize our vision to achieve scale for decentralized applications.”
To add on, Matic Wallet will be collaborating with Coinbase Wallet in order to improve usability, as the platform would be helping users to shift their assets from Ethereum to Matic. It would also help the platform’s decentralized application interaction with the Matic network in a secure and easy manner.
The announcement stated,

“Once the user’s assets are on Matic, they will be able to transfer and trade them on Coinbase Wallet instantly. Users can use DApps built on Matic directly on Coinbase Wallet’s browser or can use WalletConnect to access them through Matic Wallet.”

Matic would also be integrating stablecoins such as Circle’s USD Coin [USDC] and DAI, to better its network’s payment rails, and also tackle the volatility of the cryptocurrency market.
Notably, Coinbase Ventures has invested in over 30 blockchain and cryptocurrency-driven projects so far, with the most prominent ones being The Block, Etherscan, Dharma, and Alchemy.
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Source: AMB Crypto

DeFi is Growing into the Next Generation of the Crypto Revolution

Coinspeaker
DeFi is Growing into the Next Generation of the Crypto Revolution
The movement around decentralized finance (DeFi) is gaining swift traction, and many believe that it’s DeFi that will dominate blockchain space. Let’s find out what it is and why DeFi is such a big deal for the crypto community.
DeFi is Growing into the Next Generation of the Crypto Revolution

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Source: CoinSpeaker

Coinbase Custody clients will be able to participate in MakerDAO’s governance in Q2-2019

Coinbase, a leading cryptocurrency exchange in the United States, has been in the limelight over the past few weeks. The exchange is now in the news after it added new services to its platform. Coinbase announced the launch of staking support for Tezos as well as governance support for MakerDao for their Coinbase Custody clients.
Setting the Tezos baking support aside, the platform will be participating in the governance of Maker and Tezos. The official blog post read,

“In addition to Tezos baking, we’re launching Maker and Tezos voting in Q2–19, pending approval per our internal evaluation process.”

This was followed by the platform remarking that MakerDAO was one of the “fastest growing” projects in the Ethereum ecosystem. The blog further stated that there were over 200 projects that were integrating DAI, Maker’s stablecoin based on Ethereum network. This makes it one of the “most used” decentralized stablecoin and “a core element in the #DeFi movement”, the platform claimed.
The blog further stated,

“The Maker community is known for its passionate commitment to decentralized governance. Until now, institutional investors who used custodians to store their MKR (the governance token for the Maker system) were unable to participate. That changes with Coinbase Custody.”

This was followed by the platform stating that their team was collaborating with the MakerDAO team to “ensure” that the offline storage of the exchange “works seamlessly with VoteProxy smart contract”.
Rune Christensen, the Founder and CEO of MakerDAO, said,
“Decentralized governance is fundamental to the success of the Maker project. Coinbase Custody will provide an essential service by providing a way for institutional holders to participate in the system and vote with their MKR.”
The platform added that they would be launching staking support for any chain its customers’ would invest in moving forward. Further, along with allowing its institutional clients to vote on Maker’s proposal, it will also enable them to validate Cosmos.
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Source: AMB Crypto

PlasmaChain integrates with six stablecoins including USD Coin, TrueUSD, and Gemini Dollar

James Martin Duffy, the co-founder of Loom Network, announced PlasmaChain integration for the top 100 ERC20 tokens via an official Medium blog post. The integration includes leading stablecoins in the market such as USD Coin [USDC] and Maker Dai [DAI]. The integration allows for “Lightning-Fast layer 2 Stablecoins payments with multi-currency support”. This news comes days after it was announced that BNB was added to Loom PlasmaChain as a payment method.
The announcement read,
“Since BNB is an ERC20 token, adding support for one token on PlasmaChain meant we were easily able to abstract the logic and apply it to any ERC20 token […] As of now, we’ve officially added support for the top 100 ERC20 tokens by market cap on PlasmaChain.”
PlasmaChain is one of the three sidechains of the Loom Network, the others being GameChain and SocialChain. This DPoS sidechain is noted to be a revamp of ZombieChain, and is also one of Loom’s most significant sidechains. This sidechain is going to be the main point of transaction for tokens that are linked to Ethereum through Plasma Cash.
Plasma Cash is a scaling solution proposed by Vitalik Buterin, the co-founder of Ethereum, and Joseph Poon, the co-creator of Lightning Network. It is a built-in decentralized exchange that is going to “act as a bridge to Ethereum mainchain and other sidechains”. This not only ensures faster transactions, but also cheaper transactions.
Another prominent feature of PlasmaChain is that it would act as a main chain, in order to connect Plasma Cash to Layer 3 chains. It enables fee payment in ETH and Loom Token. In the future, it would also pave path for Bitcoin [BTC] payments. Crucially, since the chain was connected to the mainnet, it enables ETH, ERC20 and ERC71 token transactions.
The blog post stated,
“It enables zero-fee and near-instant transfers of tokens, while allowing users to easily transfer their tokens to and from Ethereum mainnet at any time […] But since PlasmaChain offers much shorter time-to-finality (typically 1–3 seconds), it allows for an online payments experience using crypto that is comparable to using a credit card.”
Among the top 100 ERC20 tokens integrated to PlasmaChain, six are stablecoins. This includes USD Coin [USDC], TrueUSD [TUSD], Maker Dai [DAI], Paxos Standard Token [PAX], Gemini Dollar [GUSD], and EURS.
The co-founder said,
“Layer 2: Enabling Lightning-Fast Stablecoin Payments with Near-Instant Settlement
Stablecoins by themselves are great. But integrating them into a Layer 2 like PlasmaChain is like putting stablecoins on steroids — bringing them even closer to a potentially disruptive form of online payments.”
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Source: AMB Crypto

Dollar-Pegged USDT is Not Really Pegged by Dollar? Here’s How Tether Explains This

CoinSpeaker
Dollar-Pegged USDT is Not Really Pegged by Dollar? Here’s How Tether Explains This
The crypt-community awakened with the revelation that the USDT is not really backed by the dollar and commentators allege that it could in future pull an exit scam stunt.
Dollar-Pegged USDT is Not Really Pegged by Dollar? Here’s How Tether Explains This

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Source: CoinSpeaker

Yet Another Cryptocurrency Wins Listing on Coinbase Pro

CoinSpeaker
Yet Another Cryptocurrency Wins Listing on Coinbase Pro
Coinbase adds Stellar Lumens to its professional trading service Coinbase Pro. Initially, XLM trading will be only available for customers in Coinbase’s supported jurisdictions, expect the state of New York.
Yet Another Cryptocurrency Wins Listing on Coinbase Pro

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Source: CoinSpeaker

Coinbase ‘Exploring’ Support for XRP and 30 Other Cryptocurrencies

CoinSpeaker

Coinbase ‘Exploring’ Support for XRP and 30 Other Cryptocurrencies

Coinbase is exploring a possibility to add support for a list of 31 coins, including XRP that is currently the second-largest cryptocurrency by market cap.

Coinbase ‘Exploring’ Support for XRP and 30 Other Cryptocurrencies

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Source: CoinSpeaker

Game On For Stablecoins as Volatility Returns to Crypto Markets

Stablecoins were introduced to protect traders and investors against the volatility of crypto markets. But the stability of the markets over the past few months had put them on the backburner. But as the volatility returned to the markets after the BCH fork, volumes in nearly all Stablecoins shot up multifold bringing them back to the limelight.
Volumes in most Stablecoins rise more than 100%
The meltdown just before the Bitcoin Cash fork bought back trademark volatility to crypto markets. Most of the coins in that meltdown took a 10% beating exposing a lot of open positions for traders. The only hiding place for these traders was stablecoins and they utilized it well. According to the data that is available in markets most stablecoins volumes rose by over 100% as traders and investors took shelter by moving their monies to stablecoins.

According to the chart above, there has been a sudden spike in volumes for stablecoins. The dark blue graph is that of USDC, yellow resembles Dai, the light blue being that of BitUSD and Green being that of the Gemini Dollar.
Owing to the meltdown, the cryptocurrency market lost over USD 30 billion of its total market value last week, but during this same time period, the prices of certain USD-backed stablecoins have remained stable or have moved up slightly.
It now appears that stablecoins are proving to be the best shelter for crypto traders as the prices of leading cryptocurrencies continue their downward journey. Because of strict regulatory policies of exchanges and many countries, fiat currencies are hard to obtain via crypto exchanges – which leaves stablecoins as the best option to hedge against the volatility of crypto markets.
One thing worth noting here was the absence of Tether. As most crypto investors and traders were aware of the controversies surrounding Tether (USDT) and due to some high risks about Tether ’s banking operations, many crypto traders seem to have found more comfort in dealing with other alternative stablecoins now available.
For now, stablecoin seems to have played their stability role well and if Bitcoin does start striking back with its traditional volatility, there is every chance that the advancement of stablecoins will be rapid as an alternative.
Is the stablecoin craze justified with volatility returning to crypto markets? Do let us know your views on the same.
The post Game On For Stablecoins as Volatility Returns to Crypto Markets appeared first on Coingape.
Source: CoinGape

A flurry of Stablecoins find listing of COBINHOOD

The demand for stablecoins doesn’t seem to be ending as nearly all exchanges are adding them to take advantage of the stablecoin craze among its users.  The recent addition to the list of exchanges is Cobinhood which has added four stablecoins to its platform.
GUSD, DAI, PAX and TUSD now available on Cobinhood
Cobinhood, a cryptocurrency service platform, and exchange, in order to satiate the growing demand of stablecoins among the users announced that it is adding four (4) stable coins on its exchange: the Gemini Dollar (GUSD), MakerDao (DAI), Paxos Standard Token (PAX) and TrueUSD (TUSD). THe exchange believes that each of these stablecoins has a unique set of features that achieve same end result: increased market stability and user flexibility.
On this latest addition, the Co-Founder of Cobinhood, Wei-Ning Huang, was quoted saying    
“The biggest flaw in the market right now is uncontrolled fluctuations in the value of many customary cryptocurrencies. We are increasing the presence of stablecoins on the COBINHOOD exchange so the community understands that their voices have been heard and stability is being made possible. Our mission is to make the space more approachable for anyone who wants to participate.”
Stablecoins have been the recent trend among the crypto enthusiasts apart from providing stability they also seem to be a bridge between the traditional financial world and the cryptoshpere.
Over past month or so a lot of exchanges have added stablecoins. Last month Huobi also had announced it would list four U.S. dollar-pegged cryptocurrencies this week. In the announcement then, the Singapore-based exchange which currently has the fourth-largest by trading volume had said that it would open deposits and withdrawal for TrustToken’s TUSD, Circle’s USDC, and two regulator-approved stablecoins: the Gemini exchange’s GUSD and Paxos’ PAX, on Oct. 19.
Another exchange, Liquid, which known to be a trading platform that bridges fiat and crypto, this week had added a couple of stablecoins. The exchange had announced that it has added multiple stablecoins including Gemini Dollar (GUSD) and Circle’s USDC.
In early November Circle, in its official blog post, had said that not less than 12 exchanges  have expressed their plans of joining the ecosystem for the incorporation of the USD coin. Some of the exchanges that were named in the blogpost were The exchanges are BitMart, Fcoin, Gatecoin, Hanbitco, Hotbit, SWIFT, OCP Capital, DDEX and Bit-Z. Others that had shown interest for USDC also included Nexo a crypto loans provider and crypto wallets providers BitKan and Tokenary
Looking at the recent listings of Stablecoins one can definitely say their demand is at the peak now and if the inference of them being a bridge between the crypto world and traditional financial world is true, we can be sure that this money would soon be converted to cryptos.
What is your view on this Stablecoin frenzy. Is it a fad or are these coins here to stay? Do let us know your views on the same.
 
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Source: CoinGape