Building a Future on Ethereum at Canadian Hackathon

A hackathon may sound like something conducted in a disused warehouse by a bunch of computer nerds trying to break into government websites. In reality it is the complete opposite; a gathering of whitehats and industry professionals sharing knowledge and innovating on current networks. A weekend Ethereum hackathon in Toronto, Canada produced some interesting developments as the ETH community continues to grow.
Ethereum Innovation Continues
Ethereum has no shortage of detractors and it gets more than its fair share of FUD. But the bottom line is that there are more developers working on the Ethereum network than any rival blockchain project and this has made it the global standard platform for dApps and smart contracts.
The leading minds in the cryptocurrency space joined over white hat 500 hackers from around the world over the weekend to collaborate on Ethereum based dApps. The Toronto based ETHWaterloo event is organized by the core ETHGlobal team and has been running since 2017.
Prizes were awarded for innovation and 65 projects were submitted over the weekend which brought total hackathon projects to more than 1,000. The most famous dApp ever to emerge from the hackathon was ‘CryptoKitties’ which overwhelmed the network in late 2017.
A recent post by Camila Russo’s ‘The Defiant’ has taken a deeper look into some of the developments and cool things that were built on Ethereum at the event. Previous collaborations have focused on DeFi which is seeing monumental growth this year however this event’s attention was geared towards smart wallets, messaging and gaming.
There were five winners at the event and the first was a concept which turned Google Sheets into an Ethereum wallet. Dubbed ‘Sheetcoin’ (which could have other connotations), the platform allows users to send ERC-20 tokens to a Gmail account. Essentially a Google Sheets sidechain has been strapped on to Ethereum making it ridiculously easy to use.
Another project used Ethereum to prevent spam voice calls, SIM swapping and telecoms providers selling personal data. Eth P2P VOIP uses a token based system that enables users to allow or block calls by placing a price on them that the caller has to pay if not on a whitelist.
A DeFi custody wallet was also developed which, using Metamask, can interact with any dApp. This one if developed further could help simplify DeFi and accelerate its adoption.
Another MetaMask based dApp called Connexion allows users to instant message using their ENS names (Ethereum based domain names). Messages can be sent and received directly on the blockchain without needing third party apps that eat your data such as Facebook Messenger, Microsoft Skype or Apple’s Facetime.
A similar system for notifications was also showcased. Wallet Notify sends push notifications to Ethereum addresses for things such as smart contract expiry, loan liquidations, governance votes etc.
As the Ethereum community grows, more of these hackathons will be scheduled. ETHGlobal already has plans for an online DeFi event early next year.

0/ Early next year, we're launching our first online hackathon, focused on DeFi. https://t.co/Nv49GaOcXA
Here's a short thread about why
— ETHGlobal (@ETHGlobal) November 11, 2019

Ethereum is shaping up to be the future of finance. Watch this space!
Image from Shutterstock
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Maker (MKR) Moving on Multi-Collateral Dai Launch, Will Ethereum Follow?

Decentralized finance is making the media more often as concern grows over another global banking crisis. Ethereum is at the forefront of DeFi platforms at the moment and Maker is the market leader with over 50% share. The launch of a new multi-collateral Dai could send both higher.
Ethereum Based DeFi Evolves
Maker has a fair few accolades going for it. It is by far the most successful Ethereum based money protocol. According to defipulse.com Maker accounts for over half of the $650 million locked in DeFi. As much as 2% of the total supply of Ethereum is also locked in on the platform and over 2.4 million ETH is locked in DeFi in total.
Just this week Dai hit a $100 million supply for the first time as DeFi gathers steam in a world where banks cannot be trusted. The multi-collateral Dai (MCD) is nearing launch date and this is definitely causing Maker (MKR) to pump at the moment.
MakerDAO is the organization behind the Dai stablecoin and its accompanying decentralized credit system. Dai is dollar pegged but not dollar backed. It is more valuable because it derives its worth from pledged collateral. The supply is dynamic because it is created and destroyed based on loans made relative to that collateral. It is the backbone of the DeFi system of Ethereum blockchain and smart contract based lending.
In a detailed report the Maker Foundation’s Gregory Di Prisco explains the evolution of the multi-collateral Dai which will allow more tokens to be used as collateral. The last month’s DevCon 5 in Osaka, Japan, CEO of the Maker Foundation, Rune Christensen, revealed that the MCD is ready to launch on November 18, just ten days away now.
It will mark a huge milestone reached for the MakerDAO project and a turning point that will have a strong impact on the future of DeFi. The MCD will include a highly anticipated Dai Savings Rate (DSR) which gives the option to earn savings simply by holding Dai.
The blog went on to add;
“Multi-Collateral Dai represents a tool in the DeFi toolbox that can help harness the power of money to solve global problems. Because of DeFi’s reliance on transparent, honest collaboration, even the most extreme global financial inequality might one day become a thing of the past.”

11 days out from the launch of the multi-collateral Dai
So here's a question:Why Multi-Collateral DAI?
And…
Why is a credit money better?Why is a stable money necessary?Why did Bitcoin fail part of its original vision?
Post by Gregory Di Priscohttps://t.co/EcZ43OAvhi
— Ryan Sean Adams – rsa.eth (@RyanSAdams) November 7, 2019

Maker On The Move
As the MCD launch date nears Maker prices have started to move. MKR is today’s top performing crypto asset surging 15% in the past 24 hours.
MKR prices 24 hours – Coinmerketcap.com
MKR shifted from $575 to top out above $680 as volume lifted from $5 to $7 million. Since this time last week, Maker is up 25% making it one of the top performing altcoins at the moment.
Momentum is likely to continue as the MCD launches and DeFi picks up pace. Ethereum will only follow in time as it becomes the standard monetary platform of the future.
Image from Shutterstock
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The Crypto Loans Bubble Might Pop Soon; Can DeFi Save It?

As per an article by Bloomberg, another credit bubble is growing – the crypto loans market. However, the bubble may burst soon owing to the lack of robust lending standards and high risk. While this seems to be the case with the lending economy created by centralised crypto companies, the rise of smart-contract based lending protocols in the DeFi economy may help turn around the state of affairs in the crypto loans market.
The Bloating Crypto Loans Bubble
The crypto loans market, just 2 years old, is now worth a whopping $5 billion. The market sprung after the ICO bubble burst in 2018 and the price of digital assets came crashing down. People who did not want to sell their crypto holdings at low prices. That is when the idea of lending crypto to earn interest or use as collateral to borrow cash emerged, and it quickly burgeoned into a market worth billions of dollars. 
While this market has opened new opportunities for credit, it doesn’t come without its own share of problems. A group of former Wall Street traders believe that this market has grown too quickly and it is heading towards a blow-up. The market is characterized by relaxed lending standards and high risk, and these two major issues are a cause of concern for many stakeholders of the crypto market. 
Alex Mashinsky, the founder of lending platform Celsius Network feels that institutions with strong compliance and risk management procedures do not pose a risk to this market. Instead, the risk comes from unsophisticated individual traders holding highly leveraged crypto derivatives.
However, it is to be noted that even institutions are not infallible, as can be deduced from the 2008 Economic Crisis which top US banks and other major Wall Streets institutions were involved. 
Jason Urban, the CEO of Drawbridge Capital in Chicago says – 
“What keeps me up at night is not adoption, or even regulatory uncertainty: it’s credit risk… the torpedo below the waterline is an MF Global-Lehman Brothers type event.”
While some centralised crypto lending companies have established strict rules around crypto loans, others have not. Zac Prince, the CEO of BlockFi claims that his firm follows strict standards and therefore, it has never experienced a loss or even a late payment. On the other hand, there are companies like Nexo which are playing with fire by encouraging “under-leveraged” borrowing where the loan-to-value ratio is no greater than 50%. 
While this crypto credit bubble burst might not even cause a ripple in the global credit economy, it will depress the prices of digital assets further, which might lead to an exodus of users from the cryptocurrency ecosystem. 
Can DeFi Save the Collapsing Crypto Loans Economy?
DeFi lending protocols, while they perform the same function as centralised crypto lending companies, are entirely different in terms of how they work. In DeFi lending protocols like MakerDAO and Compound, the terms of lending are embedded in a smart contract and the value of collateralization for the loan is always greater than the loan value.
If the value of the collateral falls below a certain level, then the borrower has to pay some form of penalty or their tokens given as collateral are automatically unlocked and liquidated in the open market. 
When the borrower returns the principal amount of the loan along with the interest, their collateral is returned back to them. Many lending protocols also allow users to lend their own cryptocurrencies and earn an interest on them. 
All the processes in DeFi lending protocols are controlled by smart contracts, so every process gets executed as per the rules. Since the level of collateralization is always higher than the loan value, the risk of non-repayment is already covered. Thus, cryptocurrency holders get to avail the maximum benefit from their crypto holdings. The risk of non-repayment is also covered by the collateral they give.
Thus, DeFi might be able to save the crypto loans economy from collapsing after all. 
“DeFi is the answer. [It has] Way more transparent, and much more collateral. Businesses have been making bad loans for about ten thousand years – that’s nothing new” says Robert Leshner, founder of Compound.
Compound, at present, ranks second on DeFi Pulse, a tracker for DeFi projects. At present, the total value locked in Compound is over $115 MM. 
Lending Protocols make over 80% of total value locked in DeFi projects. There is over $500 MM in total value locked in lending projects. However, the issue with DeFi lending projects is that they only makes a small fraction of the crypto loans economy as yet – 10%. DeFi protocols need to overtake centralised lending to cause disruption. 
The good news is that the change is happening, gradually. The total value locked in DeFi projects is on the rise. DeFi has grown over 300% in a year. On November 7, DeFi hit a new all-time high of 3.475 MM in total value locked.
It would be reasonable to expect that DeFi projects will grow further as the crypto community starts to recognise the value propositions offered by them. Perhaps, they will initiate the next massive bull run or they might even bring about the crypto flippening if we think optimistically. 
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Source: CoinGape

DeFi Update – Total Value Locked (ETH) in DeFi Products Reaches All-Time High at 3.5 Million ETH

If 2017 was the year of “general crypto” growth and 2018 the year of “stable coins” growth, then 2019 will be regarded as the year we saw an exponential growth in “decentralized finance”, referred to as DeFi. Over the past year, the total value locked in DeFi products grew as the field witnessed a rapid growth due to the increased number of new applications and protocols.
Total USD value locked in De-Fi grows to 4-month high
According to crypto data analytics firm, Defipulse, the total value in USD locked on DeFi products touched $666 million on Nov. 6, recording a four month high. DeFi system presents an accessible-to-all, decentralized and secure platform providing loans, leverage and derivatives trading and transfer of traditional financial assets on digital platforms.
Source: DeFi Pulse
The total USD value locked (TVL) in DeFi products has seen an impressive 37% growth since August currently at $663 million USD, as at time of writing.  The sharp rise in TVL (measured in dollars) however falls short of the all-time high value of $700 million USD recorded in the summer.
Total value locked in Ether at all-time high
While the price of ETH is struggling to break the $200 mark barrier, the total value locked in ETH on DeFi products is at an all-time high with the ETH denominated value at 3.437 million ETH. The TVL (in Ether) crossed the 3 million ETH mark on Oct. 17 causing the market to take notice of the rising sub-industry in blockchain.
Source: DeFi Pulse
Ethereum based applications dominate the top 20 slots of value stored in DeFi products, holding 19 of the slots – the sole loner being the Lightning Network. Maker, a portal that offers DAI-collateralized loans, tops the charts with a dominance of 52.50%, after a slight 1.4% rise in the past 24 hours. Compound, InstaDapp, dYdX and Synthetix – all lending apps except for the last one – make the top five DeFi platforms with highest value of ETH locked.
TVL in DAI also hit an all-time high on Nov. 5 – a few tokens short of 30 million DAI locked in DeFi. A recent tweet by Defipulse, shows the extent of growth in DeFi products,

In case you need a reminder of how fast #DeFi is growing: the total $DAI locked in DeFi has increased…~81% since Aug 4, 2019~275% since May 4, 2019~9133% since Nov 4, 2018🚀 🚀 🚀 🚀 🚀 🚀 🚀 🚀
— DeFi Pulse 🍇 (@defipulse) November 4, 2019

 
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Source: CoinGape

If You Have Good Decentralized Finance Ideas, This Contest Will Award You $5,000

Coinspeaker
If You Have Good Decentralized Finance Ideas, This Contest Will Award You $5,000
Equilibrium framework holding its Crypto DeFiance conference in Singapore on November 16 and they’ll award $5,000 to any team or individual who can come up with a great idea for a decentralized finance application.
If You Have Good Decentralized Finance Ideas, This Contest Will Award You $5,000

Continue reading at Coinspeaker
Source: CoinSpeaker

Why DeFi aka Decentralized Finance Is a Must Know Crypto Trend For Every Finance Professional?

Decentralized Finance, popularly known as DeFi, is another disruptive application of blockchain technology enabling more people across the globe to access financial services. It refers to digital assets and financial smart contracts, protocols, and decentralized applications (DApps) built on blockchain technology, more specifically, Ethereum. In this blog, we will explore the following aspects of DeFi –
Centralised Finance vs Decentralised Finance
Types of DeFi Products in the market
Size of the DeFi Market
Pros and Cons of Decentralised Finance
Future of the DeFi market
Why: Issues With Traditional Finance?
Traditional finance is marked by centralization. It is controlled by centralised institutions that decide who gets access to financial services and who does not. For example, to avail of a loan, one must have a bank account and a sound credit score. To have a bank account, the person should have fulfilled the bank’s KYC procedures. Someone who doesn’t have the necessary KYC documents cannot open a bank account, and therefore cannot avail of a loan or get access to other banking services such as a credit card, foreign currency exchange, Demat account, online payments, etc.
Therefore, traditional finance is characterized by strict parameters that tend to exclude a large chunk of people, especially in developing countries, and deprive them of participating in activities involving the creation of economic value.
Traditional finance is also fundamentally flawed in another respect – it is centralised, and therefore, a massive amount of power rests in the hands of institutions. We have to trust these institutions with our assets. But, the economic crisis of 2008 is a reminder of the fact that centralizing power is risky.
Even regulated financial institutions, despite their stringent checks around to whom they decide to give money, are not infallible. For instance, banks may advance unsecured loans to a large number of people or companies who are unable to repay the loans. In such a case, banks, in many countries, have access to a resolution called a bail-in. In a bail-in, a troubled bank is provided relief by the cancellation of its debts to creditors and depositors. This implies that the bank can use the money of consumers to get out of distressed situations.
How Defi will help?
The bottom line is that the problems with centralised institutions are many, and the need to switch to DeFi can’t be overstated. DeFi, though still in its early stages, has disruptive potential. If allowed to prosper, it can replace many legacy systems in finance. At present, it is already enabling people to gain access to a wider range of financial services, irrespective of the country of their origin, their financial status and other traditional parameters. Anyone with an internet connection can access DeFi products built on the Ethereum blockchain.
DeFi is also giving people an alternative to relying on traditional, centralised financial institutions. Since DeFi uses blockchain, users interact with decentralized architecture while accessing DeFi products. Secondly, there is more transparency about transactions in the DeFi ecosystem as all transactions are recorded on the blockchain and are available for public scrutiny. Thirdly, the funds of users are controlled by smart contracts and not companies.
According to Alex Pack, managing partner at Dragonfly Capital, a $100 million crypto fund,
“The goal of DeFi is to reconstruct the banking system for the whole world in this open, permissionless way,”
Sahil Deshpande, a partner at Bain Capital Ventures echoes similar views about DeFi. He says –
Decentralized financial applications “can make our financial systems more transparent, more resilient and less fragile,”

Types of DeFi Products
In order to understand DeFi in-depth, it is important to understand its products. One thing is common between all the products – they are based on blockchain-powered open protocols. Most of the existing products are based on the Ethereum blockchain, except for one that is on the Bitcoin blockchain. Let us look at some DeFi product categories –

Lending

In Lending, users can borrow one asset by giving another asset as collateral. The collateral is usually ETH, and the borrowed token depends on what the firm is offering. The debt has an accruing interest which is to be paid off when along with principal interest.
Source: CoindirectMaker, a lending DeFi product, offers its USD-backed stablecoin DAI, when ETH is given as c0llateral. The value of the collateral is always higher than the value of the loan to ensure that in the case of a non-repayment of the loan, the collateral can be used to cover up the lender’s loss. In the case of Maker, users can borrow up to 66% of value in DAI on the collateral they lock-up.
In case the value of the collateral falls below the stipulated rate, then the lender may impose a penalty on the borrower and even liquidate their collateral in the open market. Maker charges a 13% penalty if the value of the collateral falls below the 150% collateralization ratio and also sells the collateral at a 3% discount in the open market.
Giving Maker strong competition is EOS’ stablecoin initiative for crypto lending. The USD-backed stablecoin, EOSDT, leverages EOS’ collateral to add to the liquidity in the market. A user can simply lock up their digital assets to issue EOSDT. The level of collateralization is 130%, lower than other lending products in the market.
There are several DeFi lending products in the market which follow a similar model of lending. Compound allows users to supply assets to its liquidity pool and earn compounding interest on that. From this pool, it lends assets to borrowers at interest. dYdX allows borrowers to take leveraged long positions of up to 4x their collateral value or leveraged short positions of up to 3x of their collateral value.

Derivatives

Derivatives are another class of DeFi products – derivatives can range from asset-backed tokens to alternative insurance to decentralized oracles or p2p protocols for prediction markets.

For example, Synthetix is a decentralized platform that allows for the creation of Synths – assets based on fiat currencies, commodities and crypto-assets. Ethereum-based Nexus Mutual allows members to pool and share risk through a community-owned insurance alternative called a discretionary mutual. Augur is a decentralized, p2p protocol that allows users to create a market around the outcome of any event and bet on it.

Dexes

Dexes are open protocols, which, instead of relying on order books, use liquidity pools for token exchange. In simple terms, they facilitate the exchange of crypto assets using smart contracts deployed on the blockchain using liquidity pools. The trading rules are coded into smart contracts deployed on the Ethereum blockchain.
Uniswap is an example of a DEX which allows anyone to create a market or a liquidity pool by providing an equal value of ETH and an ERC20 token. The exchange rate is initially set by the creator of the market, but it keeps changing as trading takes place and the liquidity of one asset compared to the other gets reduced. The arbitrage opportunities presented by these changes promote more trading.

Bancor, like Uniswap, also uses pooled liquidity instead of order books for token exchange. Bancor uses “smart tokens”, which can be considered as tokens that hold the monetary value of other cryptocurrencies. In other words, smart tokens hold the reserves of other ERC20 tokens and are linked to smart contracts. On the exchange, smart tokens are used internally for converting from one asset to another depending on reserves of the tokens.
Kyber is another on-chain liquidity protocol that facilitates token exchange with the help of reserves. Users can create token reserves, which will exist as smart contracts on the Kyber network. When a user wants to exchange a token, Kyber will check across all reserves and show the best price.

Assets

Assets are another class of DeFi products. In this category, there are different types of product offerings – sets of tokens as an investment, tokens backed by other tokens and decentralized asset management.
Set Protocol offers tokens that represent other underlying assets or sets of tokens, for example, ETH and USDT, clubbed together in a specified proportion. Consumers can buy TokenSets based on different strategies – trend trading, range-bound, and buy and hold. For e.g. in Trend trading, if you are holding a token representing ETH and USDT which rebalances according to 20-day moving average, then your token set will be 100% ETH is the price of ETH is above the 20-day moving average, and it will rebalance to USDT if the price goes below the 20-day moving average. The process of rebalancing will be governed by a Smart Contract.
WBTC is an ERC20 token backed by BTC in 1:1 which can be traded on DEXes which support ERC20 tokens. The idea behind yolking Bitcoin and Ethereum together are to bring Bitcoin’s vast liquidity into Ethereum. The token is helping in the expansion of both the networks. For example, this token helps in utilizing DEXes for trading BTC.

Melon Protocol facilitates decentralized asset management. It enables anyone to create their own asset fund whose rules are coded into the smart contract, thus, lowering the barriers to entry into asset management. It also helps investors evaluate different asset funds available in the Melon network and invest in them at a fraction of the cost of what they would pay to traditional asset managers.

Payments

Payments are an interesting use-case of decentralized finance with products that utilize both Bitcoin and the Ethereum blockchain. In the payments sector, DeFi products have tried to make micro-payments more efficient and inexpensive, thereby improving the scalability of blockchain networks.

Lightning Network is a product focusing on Bitcoin blockchain which induces efficiency in smaller transactions by taking them off-chain. In the Lightning Network, two or more network members who want to transact can open a channel by depositing funds. They can perform as many transactions as they want without exceeding the amount of the funds deposited. All transactions will be recorded off-chain, and when the channel is closed, the most recent state of the off-chain ledger will be updated on the blockchain.
xDAI Chain is a payment solution with a 5-second block time and very gas fee. It an Ethereum sidechain that uses the Proof of Autonomy (POA) consensus algorithm. In POA consensus algorithm, only US public notaries can become validators and are managed by a Decentralised Autonomous Organisation (DAO). In the xDAI network, xDAI tokens, backed by DAI in a 1:1 ratio, have the same role as ETH does in the Ethereum network.
Connext is another DeFi product related to payments. Like the Lightning network, it too uses an off-chain solution for fast, low-cost micropayments. Connect requires it users to set up a Dai card that hosts an Ethereum wallet. The Dai card can be loaded for up to $30 with ETH or DAI. The Dai cardholder can then send micropayments to any other user with a Dai card.
Now, let us look at how DeFi products are performing in the market.

DeFi Statistics – How Big is This Market Presently?
Source: DeFiPulse.comAccording to DeFiPulse, a total of $531 MM is locked in the DeFi market presently. There are a total of 20 DeFi products belonging to different categories – Lending, Derivatives, Dexes, Assets, and Payments. MakerDAO is the largest DeFi product with a market share of over 53% and funds worth $281.8 MM locked in. Compound and Synthetix are the second and third largest products with locked-in funds worth $106.3 MM and $59.7 MM respectively.
Source: LoanScanLoanScan is a website that shows the top lending products in the crypto world. Compound, dYdX, Dharma, InstaDApp and Nuo are among the leading DeFi products which enable crypto users to earn interest on their crypto holdings.

Pros and Cons of DeFi
The pros of DeFi are many.
First of all, it promotes financial inclusion as barriers to accessing DeFi products are low. People from across the world can participate in utilizing DeFi products. For example, people can access DeFi assets without needing tens of thousands of dollars. They can exchange tokens on DEXes without having to perform KYC. They can borrow tokens without having a bank account.
Secondly, DeFi products are decentralized and controlled by a smart contract. In other words, a centralised authority doesn’t have control over your funds, though it might be the builder of the product. Thus, users can access DeFi products and put their money in them without having to trust a centralised authority.
Thirdly, DeFi products are contributing to the crypto ecosystem by creating new forms of value and expanding the use cases of cryptocurrencies. Thus, DeFi products are helping the crypto ecosystem grow and diversify.
Fourthly, they are also solving several problems in the crypto ecosystem. For example, DeFi payment products are helping in making micropayments quick, inexpensive and easy. DEXes are trying to solve the problem of liquidity in the crypto market.
Last but not least, DeFi is driving innovation in the cryptosphere. People can create their own products, whose rules will be embedded into a smart contract, and offer them to other people. Network effects will not only help in the adoption of these products but also lead to the creation of new products.
DeFi also has several drawbacks, some of which were fixed, and there are others that can’t be fixed.
Firstly, not all products have low barriers to entry. Lending is a product class in which the user needs to have a high amount of ETH for collateralization of the debt. The ETH is prone to get liquidated if the value of the collateral falls below a certain level.
Many DeFi products are only partially decentralized as the companies creating them are centralised and they create rigid rules around the product. However, the good news is that these companies don’t own your private keys. Also, in many cases, only a step of the process is decentralized. For example, if you need ETH for accessing a particular product, it is likely that you will be purchasing that ETH on a centralised exchange.
About Smart Contracts, they are not 100% secure. Though deployed on robust blockchains that are virtually impossible to be hacked, smart contracts themselves may have bugs that can be exploited by hackers to drain out all your funds. A very infamous example of this is The DAO attack.
Finally, DeFi products suffer from the same problem that the entire world of crypto does – complexity. For most people, crypto is hard to understand, which is why they still haven’t been able to embrace it. The same now goes for DeFi products as well – their connection with crypto, while on one hand, it makes them unique and disruptive, on the other handle, it becomes a hurdle to their adoption.

The Future of DeFi
Well, despite all the problems, does the future of DeFi look bright? Sure it does! DeFi is still at an early age – its size is a tiny fraction of the size of the crypto market. However, it has stirred the interest of the crypto community and it is evolving – one step at a time. From $4 in August 2017 to over $680 MM in June 2019, DeFi has shown massive growth in just 2 years. As the crypto industry grows and gains adoption, DeFi is also likely to see an increase in value with more participants moving to DeFi.
In fact, the DeFi movement is already adding more blockchain networks. EOS has established itself as a major player with EOSDT. Tron has also joined the DeFi movement, as it announced its partnership with the Loom Network in September. With the help of Loom Network’s solutions, it will be able to deploy MakerDAO’s DAI stablecoin on the Tron blockchain.
Given the rapid developments and the growth in the world of DeFi, and the mainstream adoption of crypto, it is a possibility that DeFi may overtake traditional finance in the future.
What do you think of the future of DeFi? Do you think it has disruptive potential, or is it just a bubble? Share your views with us in the comments below!

Why:Issues With Traditional Finance?u1Types of DeFi Productsu2Lendingux2derivativesd1Dexesd2Assetsd3DeFi Statisticsu3Pros and Cons of DeFiu4The Future of DeFiu5
 
The post Why DeFi aka Decentralized Finance Is a Must Know Crypto Trend For Every Finance Professional? appeared first on Coingape.
Source: CoinGape

Coinbase CEO positive about DeFi; claims space has started to take off

Decentralized finance or DeFi, has been making waves over the last couple of months with an increase in the number of platforms and products offering DeFi services. According to Coinbase CEO Brian Armstrong, DeFi graphs have started to have an “exponential curve” in terms of its growth this year. Ethereum’s DeFi landscape has been one […]
The post Coinbase CEO positive about DeFi; claims space has started to take off appeared first on AMBCrypto.
Source: AMB Crypto

Binance to support DeFi through Chainlink collaboration

On October 25, Binance officially announced that it would be supporting growth of decentralized finance (DeFi) by collaborating with Chainlink to connect the cryptocurrency data on its platform to blockchains.  In its official announcement, Binance said that while base layer development is accelerating, it is important to remember that the logic behind smart contracts is reliant […]
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Source: AMB Crypto

Binance To Feed ChainLink’s Oracles with DeFi Market Data

Binance, the world’s largest and liquid cryptocurrency by adjusted trading volumes, and ChainLink, a blockchain-based decentralized oracle provider, are connecting.
In a move that will draw more attention to decentralized finance (DeFi) projects, billed as the next frontier in blockchain, Binance said they support the growth of the sub-sector. For that reason, they will be connecting “a wide variety of their market data” to blockchains through their partnership with ChainLink with an underlying goal of improving blockchain interoperability and efficiency.
Changpeng Zhao, the CEO of Binance, said:
“At Binance, we are committed to growing the blockchain ecosystem. We support the development of Decentralized Finance as an important part of the ecosystem. Binance works with many blockchain projects, including Chainlink, to bring freedom of money everywhere, and through the help of Binance data and ChainLink’s network, we can help accelerate the growth of DeFi.”
ChainLink and the Oracles Market
The Oracle market is one of the fastest-growing in the cryptocurrency and blockchain sphere, and ChainLink is the undisputed leader, perhaps light years ahead of the competition. ChainLink is known for building Oracles, tools that are valuable and needed for smart contract functionality.
An Oracle is a portal used by a smart contract for data connection or retrieval outside of its native blockchain. With access to secure and approved Oracles, the power of smart contracts will be unbound and won’t be limited to tokenization. Access to external and prized data encourages interoperability, making the space more wholesome.
Shooting to fame and dominating headlines in Q1 2019, ChainLink and its native token, LINK, has grown by leaps and bounds days after their partnership with tech and finance companies like Google.
Through their smart contract agnostic platform, different blockchains can easily connect to their APIs, allowing smart contracts to communicate and get data from trusted sources relaying audited, tamper proof inputs.
The Gem in Binance
As the world turns to DeFi products, trusted and reliable data should exist for the smart contract revolution. Smart contracts are integral to DeFi applications since the objective of the product is not only to build financial products but also ready the world for blockchain.
Binance declared that they offer industry standard APIs through which third parties can access 637 trading pairs via web sockets. As a scalable and secure breeding ground for price discovery, the exchange intends to channel their data to the secure Oracles of ChainLink, convinced that their market data should be accessible for DeFi applications.
The post Binance To Feed ChainLink’s Oracles with DeFi Market Data appeared first on Coingape.
Source: CoinGape

Crypto-market ‘not mature enough’ for decentralized exchanges

eToro’s Yoni Assia believes that the market is not mature enough for Decentralized Exchanges [DEX]. The CEO and co-founder of eToro appeared in a podcast for Epicenter where he noted that decentralized exchanges have certain precursors to be a success and it was early for eToro to venture into it. Assia said: “So, I love […]
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Source: AMB Crypto

DeFi Derivatives Volume At All Time High , Over $70 M USD Contributed To Ethereum Mcap

Decentralized Finance (DeFi) derivatives record all-time high volume of 400,000 ETH in the past 24 hours.
DeFi applications contributed a record high of 3 million ETH on Ethereum blockchain.

According to data by DeFi Pulse, the TVL of crypto derivatives soared by 7000% during the year to record a daily trading volume of $70 million USD, as of October 18. Notwithstanding, the total value locked in lending platforms stands at $421 million USD, representing over 120% increase in volumes in the past year.
The total value locked (TVL) for decentralized finance derivatives reaches all-time high in both USD and Ethereum valuation.
DeFi derivatives at all-time high volumes
According to DeFi Pulse, over 400,000 ETH is locked in DeFi derivatives following a massive pump in the past 30 days. As of September 20, the total volume locked in the exotic assets stood at almost 250,000 ETH and volume has since exploded by 61% since then to record its highest TVL to date. In dollar terms, DeFi derivatives also surpassed their all-time high volume – breaking the $70 million USD barrier – with $71.8 million locked.
Source: DeFi Pulse
However, the impressive soaring volume is heavily influenced by Synthetix, a crypto based synthetic asset, which holds 96.6% of the total DeFi derivatives volume. The platform provides on-chain exposure to real world currencies, commodities, futures, options and cryptocurrencies. Nexus Mutual and Augur, a distant second and third respectively, locked a total of $1.8 million (2.5%) and 575,000 USD (0.7%) of the total value of derivatives locked.
DeFi applications transact over 3 million ETH
In the past 90 days, lending DeFi apps have been on the rise as total value locked in ETH soared above the 3 million mark. On Oct. 12, Coingape reported DeFi applications contributed close to 2.3 million ETH in the last quarter with Maker and Nest leading the standings.
Total value locked in DeFi applications in the last 90 days (Source: DeFi Pulse)
Of the total 3 million ETH, Maker, the creator of DAI stablecoin, contributed over half of the total volume with 51.48% dominance despite the slight 0.3% drop in the past 24 hours. Compound, a blockchain based lending platform using digital assets as collateral, is second with 665,000 ETH locked. InstaDapp and dYdX, both lending apps, completed the top five list of DeFi apps with largest volumes in the past 90 days – 176,000 and 142,000 ETH respectively.
The post DeFi Derivatives Volume At All Time High , Over $70 M USD Contributed To Ethereum Mcap appeared first on Coingape.
Source: CoinGape

DeFi applications Contributed More Than 2.275 million ETH in Q3: Report

While the second quarter of Ethereum application users was not such an active one, the wave of DeFi (Decentralized Finance) has brought in more than 310,000 new users.
MakerDao and Nest Are The Leading Defi Apps
DeFi applications have contributed more than 2.275 million Ethers in the third quarter. Also, these applications account for more than 58% of all Ethereum applications. The former’s revenue has exceeded more than $525 million in the quarter, with decentralized financial applications in Ethereum accounting for total financial transactions. Leading DeFi apps on Ethereum include MakerDao and Nest. 
MakerDAO is a decentralized credit platform on Ethereum that supports Dai, a stablecoin pegged to USD.  As of March 2019, only ETH can be used as collateral. A planned upgrade to Multi-Collateral Dai is likely to add support for other assets. 
Source- DeFi Pulse
Whereas the Nest dApp supports mutual mortgage lending between mainstream Ethereum assets such as Ethereum(ETH), Tether(USDT), Maker Dao(MKR), DAI, Basic Attention Token (BAT), Omise Go(OMG), and the LOOM token. 
Source- dapp.com
 
Q3 Witnessed More than 500,000 New Users
Also, Q3 saw more than 500,000 new users who started using decentralized applications. Of which more than 138,000 (27.6%) of them started using financial services applications, and 170,000 ( 34%) of them still entered the application field due to gambling applications.
Drop-in dApp Transaction Volume
Also, a recent report by decentralized app platform dapp.com released a few days back found that dapp transaction volume has dropped on major blockchain ecosystems by almost 40 percent compared to last quarter. The figures have plummeted from $3.28 billion to $2.03 billion, despite huge growth in the decentralized finance (DeFi) industry. 
The report analyzed six major blockchains. These included Ethereum, EOS, TRON, Steem, TomoChain, and IOST. Reportedly, these blockchains have the most active users in the market. 
The report revealed that 150 dApps were launched in Q3 which is far less than the average amount of dApps released every month during the first half of the year- 165 apps per month.
Will DeFi continue to have the same success in Q4? Let us know, what you think in the comments below! 
The post DeFi applications Contributed More Than 2.275 million ETH in Q3: Report appeared first on Coingape.
Source: CoinGape

MakerDao announces launch of Multi-Collateral Dai; introduces new logo 

Maker Foundation’s Chief Executive Officer [CEO], Rune Christensen, spoke at DevCon 5 held in Osaka, Japan, where he revealed the launch of Multi-Collateral Dai [MCD]. Christensen went on to announce that the launch will take place on 18 November. MCD will also be introducing several other features to the Maker Protocol like Dai Savings Rate […]
The post MakerDao announces launch of Multi-Collateral Dai; introduces new logo  appeared first on AMBCrypto.
Source: AMB Crypto

Bitcoin isn’t flexible for enterprise side of things, says former BTC Core developer

Jeff Garzik, former Bitcoin Core developer, made waves in the cryptocurrency community after he said that stablecoins are pushing decentralized finance to the next stage. According to a report by Forbes, Garzik told an audience at Consensus 2019, “Product-wise, we are in a generational shift. The stablecoin is here to stay and now people are […]
The post Bitcoin isn’t flexible for enterprise side of things, says former BTC Core developer appeared first on AMBCrypto.
Source: AMB Crypto

Nasdaq Lists New Index for Decentralized Finance Projects Called Defix

Coinspeaker
Nasdaq Lists New Index for Decentralized Finance Projects Called Defix
Nasdaq’s Defix index will offer real-time tracking of crypto assets of different blockchain projects like MakerDao, Augur, Gnosis, Numerai, 0x and Amoveo.
Nasdaq Lists New Index for Decentralized Finance Projects Called Defix

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Source: CoinSpeaker