Ethereum Network Activity, DeFi Still Growing, When Will ETH Prices Follow?

Fundamentally Ethereum is going from strength to strength. Network activity is up, development is on track, an upgrade is imminent, and DeFi is hitting record figures. Yet ETH prices have fallen again so what is going on?
Ethereum Network Strengthens
Despite a flurry of FUD from Bitcoin maximalists and rival network supporters, Ethereum is still the second largest crypto asset for good reason. There are several methods to measure network health, hash rate is one and activity is another.
According to blockchain analytics research in just the past 24 hours over 70,000 new addresses were created on the Ethereum network. Additionally there were almost 245,000 active addresses which prove that things are still ticking along nicely.

A good measure of the healthiness of a crypto-asset is the network activity
In #Ethereum during the last 24hours: 70.71k New Addresses were created 23.94k Addresses left the network There were 244.7k active addresses
The network keeps growing#eth #crypto #blockchain pic.twitter.com/zmL5VIYeqI
— intotheblock (@intotheblock) December 2, 2019

A roundup of last month’s activity on Ethereum also shows things strengthening for overall network health. Positive metrics include over 9 million blocks mined on Ethereum, 15.6 million addresses with a greater than zero account balance, and solid growth in dApp usage including a record number of ERC-721 transactions on Gods Unchained, a popular digital trading card game.

#Ethereum by the Numbers:
9M+ blocks mined on @ethereum.6 EIPs scheduled for Istanbul. 7M+ @GodsUnchained transactions. 4M+ $DAI locked in @MakerDAO.$500M+ locked in #DeFi.2.6M+ @trufflesuite downloads. $2.7M+ @gitcoin platform value.
BOOM. https://t.co/3Vz4RxP9jX
— Joseph Lubin (@ethereumJoseph) December 2, 2019

One of the biggest events in November was the MakerDAO protocol upgrade creating a Mulit Collateral DAI which now accepts both Ether and Basic Attention Token (BAT) as collateral for Dai generation.

2 weeks after @MakerDAO's upgrade to "Much Cooler" Dai, around one third of the supply has been converted. source: https://t.co/SWJPT9dCc3 pic.twitter.com/cTOMXfw0Y0
— DeFi Pulse (@defipulse) December 2, 2019

DeFi Breaking Records
Despite the 50% slump in total crypto market capitalization over the past six months, Ethereum based decentralized finance continues to grow.
The total amount of ETH locked in DeFi protocols has reached another all-time high at 2.7 million, slightly higher than last week’s record. This equates to almost 2.5% of the entire supply. In USD terms it is just over $670 million.

Honey badger don't care 2.7 MILLION ETH Locked in #DeFi pic.twitter.com/GmHxD1BFlg
— DeFi Pulse (@defipulse) December 2, 2019

Why is ETH Dumping?
The only thing not so positive about Ethereum at the moment is its price. According to Tradingview.com Ethereum has fallen below $150 again. A few hours ago ETH dumped to $147 before a slight pullback as it struggles to hold on to support.
Over the past month ETH has dumped almost 20% as it blindly follows its big brother back into the digital doldrums. On a brighter note the asset is still trading 37% higher than it was this time last year. During those long cold crypto winter months ETH dumped to a bottom of around $85.
Istanbul is due in less than five days according to the countdown and it will introduce 6 EIP’s that deal with network security and gas cost reductions. The important thing however is the upgrade is a precursor to a major shift to ETH 2.0 as the first phases of Serenity can then start getting rolled out.
There may have been delays to the Ethereum roadmap, but development is still pressing ahead and the network is still strengthening so current token price is no way indicative of the bigger picture.
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Constant’s Customized P2P Lending Terms and Rates Fuel Platform’s Impressive Growth

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Constant’s Customized P2P Lending Terms and Rates Fuel Platform’s Impressive Growth
The increasing competition among borrowing/lending platforms, stablecoins, derivatives, and cross-chain CDPs indicates a new era in fintech innovation.
Constant’s Customized P2P Lending Terms and Rates Fuel Platform’s Impressive Growth

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Source: CoinSpeaker

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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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

‘MakerDAO will revive traditional financial market’s non functional debt market’

MakerDAO has been one of the most successful Ethereum-based crypto ecosystem, which was established with the motive of providing stability to the unstable cryptoverse. Gregory Di Prisco, the company’s Head of Business Development recently featured in an interview to reiterate his support for the technology. He highlighted how MakerDAO’s in-house crypto, Dai, follows the issuance […]
The post ‘MakerDAO will revive traditional financial market’s non functional debt market’ appeared first on AMBCrypto.
Source: AMB Crypto

Nasdaq Lists New Index for Decentralized Finance Projects Called Defix

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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

Maker [MKR]: Security Firm Discovers Critical MakerDAO Vulnerability During Security Audit

Zepplin, a blockchain security firm has reported a critical vulnerability that affects MakerDAO system currently in production. The vulnerability which was found in one of the DappHub library contracts during an audit of the Maker Voting Contract being reviewed is said to be fixed and is not a threat to the MKR token contract anymore.
Do MakerDAO holders need to worry?
The discovered vulnerability has been confidentially reported to MakerDAO, according to a Medium post by Zeppelin. The team also says it has been working on a fix and have confirmed a fix. However, Maker holders who participated in the voting portal must be wondering if there is a reason to worry.
The Head of Community Development at Maker Foundation, in a Reddit post, said:
“You are not in danger of losing your MKR if you own one of the ~190 addresses who has staked MKR in the current MakerDAO Governance Voting Contract.” 
However, he encourages participants to move their MKR from the contract to their personal wallets, just in case, while those who did not participate have no reason to worry.
Assurance of safety
The Maker team also assures users of their continuing effort to make participation in the platform activities as safe and seamless as possible.
“The Maker Foundation is committed to ensuring everybody has a seamless experience making this shift, so please join us in our chat at #help. Support will be standing by to help anyone having issues or problems with transferring your MKR,” the announcement read.
Coinbase exchange-listed Maker in December 2018 as one of its traded assets.  The Maker Foundation is currently engaging in an audit of the Maker Voting Contract as part of routine security checks as is practiced by Coinbase. To properly secure the network, the Maker team is doing an urgent upgrade and will give a full account of the development as soon as it is complete, according to the Reddit post.
The post Maker [MKR]: Security Firm Discovers Critical MakerDAO Vulnerability During Security Audit appeared first on Coingape.
Source: CoinGape

DeFi is Growing into the Next Generation of the Crypto Revolution

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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.
The post Coinbase Custody clients will be able to participate in MakerDAO’s governance in Q2-2019 appeared first on AMBCrypto.
Source: AMB Crypto

Ethereum, Augur and MakerDAO together represent the holy trinity of crypto, says CEO of CitizenHex

The CEO of Ether Capital Corp, Benjamin Roberts recently talked about Ethereum, Augur and MakerDAO, on his official Twitter handle. The CEO started the thread by remarking that the three projects are “ingenious independently” and that these three together represent the “holy trinity of crypto.” This was followed by Roberts speculating on the reasons as to how their combined utility will increase the value of Ethereum.
The first point made by the CEO was that the demand for DAI, in turn, increases the price of Ethereum [ETH]. He also stated that this is one of the factors that many people in the community miss about MakerDAO.
“How? DAI demand > supply causes DAI price to exceed $1.00. This creates an incentive for ‘arbitrageurs’ to open CDPs and sell DAI proceeds for greater than $1.00.”
The next point was about the necessity of locking collateral in the Maker System in order to open a CDP. He further added that currently, the collateral is in the form of Ethereum, wherein the token is locked, thereby reducing the supply of the coin and increasing its price. The third point made by the CEO was pertaining to the multi-collateral DAI.
“What about multi-collateral DAI? The same process increases the value of any asset used as collateral. If Ethereum network is securing it, the collateral value increase leads to higher value of the Ethereum network.”
This was followed by Benjamin stating that the demand for the stablecoin “kicks off” the feedback loop, which would result in Augur accelerating the DAI feedback loop. He also remarked that as the cryptocurrency market grows the demand for DAI, it would also grow to near infinity.
“@AugurProject is the Twitter of derivatives. As meaningful to financial engineering as blockchains are to trust, but it’s severely hampered due to a wildly volatile quote currency. 6/ Adoption happens whenever crypto utility exceeds fiat -> crypto friction + crypto volatility. Projects like @veil solve friction, but right now crypto volatility is too high to adopt Augur.”
Benjamin further stated that Augur “acquires an incredible amount of utility” if the volatility of the cryptocurrency market is going to be taken out of the picture. According to him, this is Augur’s goal and the project “will adopt” DAI as the “quote currency for all markets.”
“8/ What happens when Augur adopts DAI? Augur acquires more utility and open interest increases substantially. This creates *a lot* of demand for DAI, putting upward pressure on the ETH price (as described above).”
This was followed by the CEO stating that this would thereby increase the demand of REP and the currency could also be collateral in multi-collateral DAI. “The Ethereum blockchain secures the REP market cap and this creates yet more utility for ETH and further increases value”, he added.
“10/ If all of this doesn’t implode, it’s going to be the greatest financial / social / economic revolution in history. Akin to adoption of the internet…maybe more powerful because of deep synergies within the ecosystem and incentives for modifying behaviour in the real world.”
The post Ethereum, Augur and MakerDAO together represent the holy trinity of crypto, says CEO of CitizenHex appeared first on AMBCrypto.
Source: AMB Crypto

Stablecoins in 2019: Exclusive Comments from 10 Industry Executives

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Stablecoins in 2019: Exclusive Comments from 10 Industry Executives

Kirill Bezverhi, professional marketer, blockchain and crypto enthusiast, shares exclusive comments from representatives of 10 leading stablecoin projects, taking a look into market trends we will most likely see in 2019.

Stablecoins in 2019: Exclusive Comments from 10 Industry Executives

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Source: CoinSpeaker