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Category: Decentralised Finance (DeFi)

Decentralized Finance (DeFi) is a sector within the cryptocurrency and blockchain space which aims to provide a decentralized version of the products available in traditional finance- without central control and at a lower cost with potentially higher returns. These products include loans, interest-bearing deposits and borrowing services.

The advantages of decentralized finance are that it addresses the problems we have with the traditional banking system. For example, decentralized finance protocols are controlled by multiple people, and all participants are required to abide by the rules written into the smart contracts underlying the protocols.

  • Polkastarter ($POLS) – Kickstarter for Cryptocurrencies?

    Polkastarter ($POLS) – Kickstarter for Cryptocurrencies?

    Polkastarter ($POLS) is a cross-chain decentralised protocol, powered by Polkadot, that allows start-ups to raise funds in a decentralised and interoperable environment.

    In 2020, the decentralized finance ecosystem (DeFi) recorded encouraging figures in the number of DeFi protocols, as well as the number of funds locked in these platforms. On the number of protocols, the platforms addressed different spheres such as lending, trading, and insurance.

    Unfortunately, not many protocols touched on revolutionizing conventional fundraising models such as initial coin offerings (ICOs), initial decentralized exchange offerings (IDOs), and initial exchange offerings (IEOs).

    However, projects like Polkastarter are on their way to bring a sigh of relief to startups looking for innovative ways to attract funding. Before we dig deeper into the project and what it brings to startups, let’s take a look at the group behind it.

    Background

    Daniel Stockhaus and Tiago Martins are the top brains behind Polkastarter. As project co-founders, Stockhaus is the CEO, while Martins is the CTO. Notably, the two have vast experience spanning from tech entrepreneurship to software development.

    Other members of the team include Danilo Carlucci and Matthew Dibb. Carlucci is a serial entrepreneur and angel investor, while Dibb is a strategic advisor.

    What is Polkastarter?

    Polkastarter is a decentralized platform enabling startups and other projects to attract capital through token auctions and inter-blockchain token pools. As you would have guessed from its name, the project is built on the Polkadot network that sits on Ethereum.

    Polkadaot Network

    Stockhaus settled on Polkadot because of the network’s major strengths in scalability, speed, interoperability, upgradeability, and governance. To elaborate, Polkadot surpasses Ethereum and Bitcoin transaction speed thanks to its use of parachains, which power horizontal scalability, and Grandpa consensus mechanism, which drives vertical scalability.

    Polkadot’s Proof of Stake consensus, GRANDPA (Source: Polkadot Wiki ‘Polkadot Consensus’)

    Polkastarter taps into these strengths to enable governance through community voting and staking. The network also relies on Polkadot to drive liquidity mining.

    Using these features, the project scores better than existing decentralized exchanges and swap protocols such as Uniswap, Bounce, and Primablock. For instance, these networks don’t support cross-chain pools, while Bounce and Primablock support a limited array of virtual assets.

    Polkastarter’s Use Cases and Major Features

    Polkastarter expands outside the fundraising space to crowdfunding and allows participants to benefit from discounted sales. Additionally, the protocol can increase privacy to over the counter deals by enabling password protection during such trades.

    Polkastarter Key Features (Source: Polkastarter Docs)

    The network differs from other similar projects since it allows:

    • Inter-chain swaps
    • Fixed and dynamic swaps
    • Community voting on critical governance issues
    • Decentralized and permissionless token listing
    • Comprehensive Know your customer (KYC) procedures
    • Users to spot scams from a distance through a built-in anti-scam feature

    Notably, combining these features brings low-cost transactions, fast cross-chain token swaps, the ability to move virtual assets across decentralized platforms, and a user-friendly design.

    How Polkastarter Handles Fixed Swaps?

    Fixed swaps pools are significant components of the network. Unlike with automated market making, fixed swap counteracts price volatility. Also, fixed swaps provide a greater level of transparency on the amount raised during fundraising.

    Polkastarter employs fixed swap pools instead of AMM swap pools. This approach solves, among other challenges, the risk of private investors artificially inflating the price and dumping their holdings and the cost of token offerings.

    Additionally, fixed swap pools ensure a fair distribution of tokens while eliminating the risk of rug pulls in a liquidity pool.

    Note that instead of using a bonding curve approach to determine token prices in a pool, Polkastarter sets a fixed price when swapping tokens. As such, it’s possible to add other parameters, such as how much a single user can contribute to a project. Additionally, it’s easier to set more parameters to ensure transparency and fairness on new token holders.

    Immediate advantages of using fixed swaps are:

    • The amount raised and tokens sold can easily be calculated.
    • It attracts investors distributed both demographically and geographically.
    • Token holders are given a chance to acquire tokens at a standard price.

    Polkastarter’s Native Token ($POLS)

    Tokenomics

    The network has a native token called $POLS, which it uses for various sections on the platform. POLS’s total supply is 100 million tokens. Exactly 42.5 percent of the tokens were sold during the seed sale, private sale, and Uniswap listing. Other tokens went to the marketing fund, team, advisors, and foundational reserve.

    $POLS Token Distribution & Utility (Source: Polkastarter Docs – What are the Tokenomics?)

    Funds raised during the sales periods went into legal/accountancy (5%), ecosystem growth (20%), liquidity/exchanges (30%), and product development (45%).

    POLS is used on the Polkastarter ecosystem as a utility token. Among its major uses are governance and fees.

    As a governance token, its holders can vote on crucial matters such as protocol features and tokens to be displayed on the network. On fees, transactions on the platform are paid using the native currency.

    Other Utilities

    • Staking – The token can be staked to earn staking rewards on various fronts. For example, it can be staked to receive pool rewards or for pool access. Note that the option to stake POL for pool access is solely upon pool creators. However, the choice is ideal for giving top liquidity providers private access to high-end pools.
    • Liquidity mining – Additionally, Polkastarter’s native currency can be staked to participate in liquidity mining. Rewards are distributed to entities providing liquidity on the secondary markets, among other subsections.

    Two Key Partnerships With Polkastarter

    Although Stockhaus and the team have inked many partnerships with reputable decentralized platforms, two stand out.

    Polkastarter and Covalent

    Covalent is a platform capable of fetching intricate details about a crypto wallet. As such, it allows Polkastarter and its users to check the trustworthiness of a token contract. The users have access to the token contract age, verification, transaction volume, among other details.

    Polkastarter and DIA

    Decentralized Information Asset (DIA) is a platform that provides distributed oracles on Polkastarter. Thanks to the exceptional qualities of its oracles, DIA helps Polkastarter provide warnings against massive price slippage.

    Other partnerships involve Moonbean, Shyft, and Orion Protocol.

    Conclusion

    By using fixed price swaps instead of AMM, Polkastarter sets the bar higher in decentralized funding. It adds the transparency and fairness aspect that has been missing on similar platforms. The projectl’s partnerships with Covalent and DIA gives its users peace of mind knowing that they can pick a suspicious project from the crowd and avoid price slippage.

    Furthermore, Polkastarter’s native token opens the door to distributed governance while giving its holders an extra way to earn rewards through staking.

    Decentralised Finance (DeFi) series: tutorials, guides and more

    With content for both beginners and more advanced users, check out our YouTube DeFi series containing tutorials on the ESSENTIAL TOOLS you need for trading in the DeFi space e.g. MetaMask and Uniswap. As well as a deep dive into popular DeFi topics such as decentralized exchanges, borrowing-lending platforms and NFT marketplaces

    The DeFi series on this website also covers topics not explored on YouTube. For an introduction on what is DeFi, check out Decentralized Finance (DeFi) Overview: A guide to the HOTTEST trend in cryptocurrency

    Tutorials and guides for the ESSENTIAL DEFI TOOLS:

    More videos and articles are coming soon as part of our DeFi series, so be sure to SUBSCRIBE to our Youtube channel so you can be notified as soon as they come out!

    Disclaimer: Cryptocurrency trading involves significant risks and may result in the loss of your capital. You should carefully consider whether trading cryptocurrencies is right for you in light of your financial condition and ability to bear financial risks. Cryptocurrency prices are highly volatile and can fluctuate widely in a short period of time. As such, trading cryptocurrencies may not be suitable for everyone. Additionally, storing cryptocurrencies on a centralized exchange carries inherent risks, including the potential for loss due to hacking, exchange collapse, or other security breaches. We strongly advise that you seek independent professional advice before engaging in any cryptocurrency trading activities and carefully consider the security measures in place when choosing or storing your cryptocurrencies on a cryptocurrency exchange.

  • Stone DeFi ($STN): DeFi with rock solid yields?

    Stone DeFi ($STN): DeFi with rock solid yields?

    StoneDefi ($STN) considers itself the only yield management protocol which is focused on creating “Rock Solid Yield” for users of the decentralised finance (DeFi) ecosystem.

    Background

    StoneDefi was founded in September 2020 by Alex Lam. Previously, Lam had worked with government-affiliated Institutions before taking up a keen interest in cryptocurrency. He has so far become actively involved in the crypto world, building platforms to support investment pools, notably RockX.

    Rockx provides some degree of support to StoneDeFi thanks to Lam’s influence. However, StoneDefi is currently run by a team of about 7 people scattered across South-east Asia.

    In the later months of 2020, StoneDefi’s project caught the attention of Singapore-based Venture Capital, Signum Capital. The project then received early-stage funding from the VC of undisclosed value. Signum Capital exclusively deals with blockchain startups and innovations.

    Together with his team of finance and cryptocurrency experts, Lam guides StoneDefi as the project leads to becoming the only rock-solid yield management protocol for crypto assets.

    What is StoneDefi?

    StoneDefi, commonly referred to as Stone, is a yield management protocol that functions to ensure maximum returns for liquidity providers. It also secures capitals in asset pools and yield farms to safeguard investor’s interests in the DeFi sector.

    StoneDeFi was designed to create a “rock-solid” yield for DeFi investors. Stone differs from other yield aggregator platforms in the priority it gives to the credibility of investments. The protocol focuses on the viability and integrity of all digital assets over just the potential yield. 

    After all, the name “stone” comes from the idea of a rock-solid yield aggregator. 

    Most yield aggregators are notorious for their risky strategies endangering investor funds in high-risk pools. StoneDeFi’s developers see a far bigger future for DeFi and understand the role of investors in it. Therefore, their enduring emphasis on “rock-solid” yield to transform funding in the DeFi space from just speculations and get-rich-quick schemes into a credible institution.

    They are able to achieve this by carrying out thorough assessments of the sustainability and integrity of different investment pools. The protocol also carries out regular audits of active pools and yield farms to keep up with changes and safeguard investor funds. 

    By hedging single assets through indexes, the protocol is able to venture into more volatile pools while mitigating investors’ risk. Consequently, investors can enjoy a reliable and consistent passive income from liquidity pools through Stone’s protocol.

    Earn yield on Stone DeFi
    How to earn yield on Stone DeFi (Image credit: Stone DeFi)

    Liquid Staked Assets

    To ensure stable and maximum yield to users, StoneDefi has explored a number of alternative farming strategies. One of Stone’s more progressive strategies is staking in liquid assets. 

    Stone, in collaboration with platforms that generate staking derivatives (notably StaFi), has developed a way to use LP funds to create a flexible redemption for rigid PoS stakes. Stakers can redeem locked tokens for rTokens which can be subsequently traded on platforms like Uniswap while still accruing yield on their locked stakes.

    For the liquidity of staked assets to be viable, there must be a system by which the credibility of user funds is ascertained. Stone’s extensive assessment protocol plays a vital role in this phase. This flexibility would see tokens in sufficient circulation without inflation while accelerating its price discovery on DEX. 

    Users can also use staked tokens for other purposes, especially trading where they have access to their profits without the restrictions of the unbounding that can sometimes take up to 28 days.

    STN Token and The Stone DAO

    Just like other yield aggregators, StoneDefi has its own native token which is tied to most activities carried out on its platform. The Stone token or “STN” has a variety of functions that ensure smooth participation and exchange on StoneDefi. 

    STN’s most important function is to ensure effective protocol governance through its Decentralized Autonomous Organization (DAO). Individuals who stake STN tokens are granted voting rights and the ability to propose adjustments in the way the protocol is run.

    This DAO approach seeks to ensure open and transparent governance of investor funds to counteract closed and centralized regulation, which is a common problem for yield aggregators.

    Stone’s token is also used to reward participation in investment pools. When Liquidity providers participate in different recommended pools, they are given different quantities of STN as acknowledgement and reward.

    However, not all pools attract the same number of STN tokens. Token rewards are distributed to encourage participation in less populated pools. This system of incentivizing smaller pools would ensure portfolio rebalancing. 

    Distribution of STN

    STN is also used for paying transfer fees in cross-chain executions, as well as standing as the security deposit in liquid staked assets. To prevent the devaluation of STN, a system where some percentage of STN tokens in the market are bought back to be burned is put in place. A percentage of the Stone platform’s fee income is used to fund the purchase of the STN tokens to be burnt.

    Conclusion

    While several yield management platforms have been successful in generating a consistent return for investors, one thing that they often get wrong is risking their user’s funds at the expense of high yields. This is symbolic of short-term thinking that could have dire consequences on the DeFi sector and possibly the entire crypto industry if asset pools are not given adequate risk assessments. 

    But with an innovative approach to yield management, StoneDefi is able to ensure maximum yield for users without having to risk user fund without cause. Their open and transparent method of governance through a DAO is also promising, giving investors the authority to contribute to the administration of their funds. 

    Disclaimer: Cryptocurrency trading involves significant risks and may result in the loss of your capital. You should carefully consider whether trading cryptocurrencies is right for you in light of your financial condition and ability to bear financial risks. Cryptocurrency prices are highly volatile and can fluctuate widely in a short period of time. As such, trading cryptocurrencies may not be suitable for everyone. (https://www.stocktargetadvisor.com/) Additionally, storing cryptocurrencies on a centralized exchange carries inherent risks, including the potential for loss due to hacking, exchange collapse, or other security breaches. We strongly advise that you seek independent professional advice before engaging in any cryptocurrency trading activities and carefully consider the security measures in place when choosing or storing your cryptocurrencies on a cryptocurrency exchange.

  • Benchmark Protocol ($MARK): Supply Elastic Collateral and Hedging Device

    Benchmark Protocol ($MARK): Supply Elastic Collateral and Hedging Device

    Benchmark Protocol ($MARK) is a supply elastic, stablecoin-alternative that connects traditional finance with the cryptocurrency market by revolving around the volatility index. It provides liquidity to the DeFi space during periods of high volatility to optimize value and stability.

    Background

    Founded by David Mass, the Benchmark protocol aims to bridge the digital currency market to traditional financing. The project was set in motion by a team composed of investors, blockchain engineers, and financial experts to strengthen security and the efficacity of loan collateral within the blockchain.

    The sudden selling pressure experienced by the crypto market in march of 2020 prompted the team to act as they understood the risks within DeFi. The Birth of Benchmark exhibits the unique drive of the ambitious team behind the platform.

    Ultimately, Benchmark’s team looks to be a household name within the market by staying relevant within the mainstream DeFi space and optimizing their product to the needs of the blockchain.

    What is Benchmark Protocol?

    Benchmark Protocol is a supply-elastic collateral and hedging system driven by a volatility index. Simply put, the Benchmark Protocol lessens liquidation events and hedges risk with its very own cryptocurrency, the $MARK token.

    Benchmark Protocol Dashboard (Source: Benchmark Protocol website)

    Furthermore, Benchmark’s algorithm functions as a rule-based utility that adjusts supply, and is supported by the CBOE volatility index (VIX) and deviations from the target metric, which is equal to 1 Special Drawing Rights (SDR) unit. The Benchmark team believes that implementing the SDR creates a larger and far more efficient use case rather than exposure to just one currency.

    The Benchmark Protocol provides a dynamic and supply-elastic token in the MARK token, as it manages to connect traditional capital markets to DeFi. The platform’s protocol is unique and efficient; completely separate from the crypto market prices and trends.

    The protocol prides itself as an ideal hedge exhibiting total transparency with all users and transactions making a secure and reliable solution for the DeFi sector. Its immutability is robust enough to prevent systematic risk arising from cease and desist orders.

    Benchmark’s innovative approach has isolated the recurring issue of overshooting the target peg within the varying market conditions. Through the MARK token, the platform can effectively rebalance supply within a 5-hour window after the New York Stock Exchange (NYSE) ensuring the reduction of arbitrage activity for token users.

    The distinct algorithm effectively adjusts to trends within DeFi while implementing traditional finance market strategies. The protocol actively monitors and regulates the total supply of tokens to compensate for anticipated price movements. This method helps in reducing excessive amplitudes of price percentage changes.

    SDR

    SDR Breakdown (Source: Benchmark Protocol website)

    Since its implementation by the International Monetary Fund (IMF), the international reserve asset SDR has been an important factor concerning the health of the international financial system. SDR value is supported by five currencies: the Euro, Chinese renminbi, Japanese yen, U.S. dollar, and British pound sterling.

    The Benchmark Protocol has been targeting the SDR’s historic price of $1.4075, with a long-term view utilizing macro-exposure to the world’s most established currency basket. The SDR is a superior and secured peg that will not face a tough path should the US Dollar experience strong inflation.

    The Benchmark Protocol primarily benefits from SDR diversified and global currency risk instead of single currency risk, which will attract more users globally, thereby, contributing to the growth of the project long term.

    Volatility Index (VIX)

    Described as the market’s “fear indicator”, VIX is a real-time market index used to estimate the market’s expectations for the relative strength of near-term price changes and volatility typically within the S&P 500 index (SPX).

    The blockchain-based platform relies on the VIX as an accurate and suitable predictive element for price development. The VIX enables the platform to be ahead of its competitors by allowing it to be more dynamic and proactive in the DeFi market.

    The Press

    The platform values Liquidity providers a great deal, as they are essential for the proper operation of the MARK token as a stable collateral utility. Furthermore, liquidity mining is an essential component of the Benchmark Protocol during the bootstrap phase.

    The Press is the second phase of Benchmark’s liquidity providers rewards distribution program. It is the largest token allocation with 27% of the total supply provided to liquidity mining initiatives that compensate the liquidity providers’ active participation in the Benchmark network. The Press will feature core MARK Pairs, such as MARK-ETH and MARK-USDC on Uniswap.

    The team plans to implement The Press for a period of 3 to 7 years, all depending on distribution velocity.

    MARK Token

    Built on the Ethereum blockchain, Mark Token is Benchmark’s native asset. MARK is an ERC-20 utility token and was released to the market while taking into consideration SDR and the VIX. So, MARK is secured to the world’s most stable currency (the SDR). Additionally, the token’s rebalances are smart and fast, derived from VIX.

    Overall, Benchmark’s native token can be described as a supply-elastic collateral utility designated to increase liquidity during periods of high volatility and in direct correspondence with global equities markets.

    MARK is a dynamic digital asset separate from other crypto implementations as it does not rival traditional fiat or paper currencies, which enables token holders to rely on a global currency risk profile versus a single currency risk profile. Additionally, through the platform’s utility token, users are shielded from inflation and further benefit from collateralization of risks.

    XMARK Token

    xMARK is another ERC-20 utility token within the platform, which represents MARK but is not affected by rebases. xMark is designed to help move the platform towards on-chain governance. The token is minted by holders staking MARK tokens within the single-asset staking platform and is currently available on Binance Smart Chain and Quickswap.

    Conclusion

    Overall the Benchmark protocol manages to deal with the issues of volatility and inconsistency within the blockchain elegantly. Through MARK and xMARK utility tokens, users are ensured that rules-based, non-dilutive, and supply-elastic collateral will facilitate their crypto journey.

    The DeFi sector is set to benefit tremendously from such technology, which provides a unique product that is currently lacking in the blockchain.

    Decentralised Finance (DeFi) series: tutorials, guides and more

    With content for both beginners and more advanced users, check out our YouTube DeFi series containing tutorials on the ESSENTIAL TOOLS you need for trading in the DeFi space e.g. MetaMask and Uniswap. As well as a deep dive into popular DeFi topics such as decentralized exchanges, borrowing-lending platforms and NFT marketplaces

    The DeFi series on this website also covers topics not explored on YouTube. For an introduction on what is DeFi, check out Decentralized Finance (DeFi) Overview: A guide to the HOTTEST trend in cryptocurrency

    Tutorials and guides for the ESSENTIAL DEFI TOOLS:

    More videos and articles are coming soon as part of our DeFi series, so be sure to SUBSCRIBE to our Youtube channel so you can be notified as soon as they come out!

    Disclaimer: Cryptocurrency trading involves significant risks and may result in the loss of your capital. You should carefully consider whether trading cryptocurrencies is right for you in light of your financial condition and ability to bear financial risks. Cryptocurrency prices are highly volatile and can fluctuate widely in a short period of time. As such, trading cryptocurrencies may not be suitable for everyone. Additionally, storing cryptocurrencies on a centralized exchange carries inherent risks, including the potential for loss due to hacking, exchange collapse, or other security breaches. We strongly advise that you seek independent professional advice before engaging in any cryptocurrency trading activities and carefully consider the security measures in place when choosing or storing your cryptocurrencies on a cryptocurrency exchange.

  • E-money ($NGM): Rethinking stablecoins?

    E-money ($NGM): Rethinking stablecoins?

    e-Money is aiming to reimagine the stablecoin. Traditional stablecoins are cryptocurrencies designed to maintain a value that is pegged to a particular asset. But this has its drawbacks- for example, sudden market crashes of the underlying asset can result in the stablecoin being unable to keep up and maintain its peg.

    e-Money distinguishes itself with its novel token- an interest bearing stablecoin that can shift in value to accommodate economic pressures.

    Check out our interview with CTO Henrik Aasted Sørensen:

    Currency-backed Stablecoin: E-money (NGM) w. Henrik Aasted Sørensen

    Background

    The team behind e-Money is Block Finance A/S while their motive is to create a platform that can bridge blockchain with the traditional financial system. This way, stablecoins can find a stronger use case and attract greater adoption as it promises an alternative means of exchange, free from the interference of financial middlemen or large institutions.

    The platform is built on top of the Cosmos chain, which is also the same network where some of the biggest decentralized exchanges are developed. Furthermore, e-Money promises a faster, easier, and cheaper method of making peer-to-peer transactions worldwide.

    What is e-Money?

    e-Money is a blockchain-based payment platform that aims to make peer-to-peer payments and money transfers cheaper and more accessible digitally. With e-Money, Block Finance A/S intends to do away with the intermediaries present in most traditional financial services by introducing ‘currency-backed’ stablecoins.

    Later in this article, we will talk about the difference between this token class, as well as algorithmic and collateralized stablecoins. Basically, eMoney’s own currency-backed stablecoins serve as the backbone of e-Money’s frictionless digital asset for cross-border transactions.

    The team behind e-Money established the coin to usher in a new model for stablecoins that has the following characteristics:

    • Completely backed with actual bank deposits and government bonds;
    • Can support multiple currencies;
    • Lower transaction charges;
    • Quick transaction settlement times; and
    • Interest-bearing.

    How does the e-money stablecoin work:?

    e-Money is an innovation from the original concept modeled for collateralized stablecoins. One of its differences, however, is that it can hold interest. This is similar to how savings accounts in traditional banks work, making them a viable alternative store of value compared to other stablecoins that also fluctuate based on the movements of the whole crypto market.

    Bank reserve v Currency-backed tokens
    Bank reserve v Currency-backed tokens

    e-Money’s currency-backed token does not ensure a 1:1 peg with the fiat it represents. Instead, its price depends on the value held by the currency plus the interest accrued on the reserves of e-Money on the represented fiat.

    Annually, the supply of the e-Money token will be inflated by 1%. And unlike algorithmic stablecoins, the value of a currency-backed stablecoin does not depend on the need to manage its overall supply, monitor the performance of its underlying reserve, or collect transaction fees.

    Features of e-Money

    Cosmos and Tendermint Deployment

    e-Money is developed on top of the Cosmos chain, making it interoperable with other blockchain ecosystems. However, e-Money’s system maintains its independence from other chains through the implementation of a ‘sovereign zone.’

    Cosmos is used to enable inter-blockchain communication (IBC), a feature known to many as the ‘internet of blockchains.’ Through the Cosmos Hub, e-Money’s platform can frictionlessly interact with other blockchain networks should they need to be implemented on different platforms.

    Tendermint deployment is also another remarkable feature of the platform as it helps achieve faster transaction settlement times without compromising data integrity and security through a Proof of Stake consensus mechanism.

    Validator Network

    Since the platform secures blockchain consensus through stakers, validator networks are put in place to ensure the security of the network. Therefore, e-Money implements the validator service accessible in the Cosmos Hub and IRISnet’s IRIS Hub.

    The main task of validators is to confirm the authenticity of blockchain transactions involving e-Money, as well as to ensure the integrity and health of the whole network. Currently, there are already over 40 validators working to maintain the security of the platform.

    e-Money’s Decentralized Exchange

    Along with the currency-backed stablecoin, e-Money also has a decentralized exchange platform where users can access cryptocurrencies available in the Cosmos ecosystem.

    It bears some differences from a typical decentralised exchange (DEX). Here are some of them:

    • Payments needed for trades are only for transaction fees;
    • Transaction fees can be paid with your preferred token;
    • There are no listing requirements to use the DEX, any token is already tradeable once supported by the platform;
    • Higher liquidity since token balances can be sold on different orders; and
    • Faster transaction throughput through an on-demand block generation method.

    Risk Management

    To manage the risks that are likely to be experienced by stablecoin holders, e-Money implements an interest mechanism that helps its currency-backed stablecoin maintain its value despite economic fluctuations.

    To further mitigate the risks of partnering with single financial institutions to back their stablecoins, e-Money is collaborating with several banks. This spreads the risk that most collateralized stablecoins face when dealing with escrow accounts. e-Money is also putting a portion of their collateral into low-risk government bonds.

    Regulatory concerns are also dealt with. In fact, e-Money’s team has already begun working with regulatory agencies in the EU to determine their status and plan their road ahead. They have legal counsels and advisors who are directly working on EU financial regulations.

    Cosmos stacks, like e-Money, have already been audited and subjected to adversarial testnets. This ensures that the risk of users experiencing a problem with the platform is mitigated even before they are rolled out.

    2 e-Money Tokens

    There are two token classes supported on the e-Money platform. They are (1) Next Generation of Money (NGM); and (2) e-Money, a currency-backed stablecoin, which is a fiat currency represented onchain.

    Next Generation of Money (NGM) Tokens

    NGM token is primarily used for staking, as well as a reward incentive for users. Users can lock their NGM tokens on smart contracts for staking, or use them to nominate validators they trust to maintain the network. Annually, the NGM supply will be inflated by 10%, and then distributed proportionally to stakers.

    NGM tokens will also be the backbone of e-Money’s operations, with token rewards being the only source of funding for the platform.

    NGM token
    NGM token

    e-Money Tokens

    e-Money, its currency-backed stablecoin, can represent several cryptocurrencies. Its main function is to support the exchange of currencies between e-Money users. They can be used for payments, remittances, and transaction fees.

    Supported fiat currencies will have their own representation on the e-Money platform. These are currencies like EUR, CHF, SEK, NOK, JPY, USD, and GBP. Support for more tokens will be introduced soon.

    e-Money token class
    e-Money token class

    e-Money Token Metrics

    The NGM token has an initial total supply of 100,000,000 $NGM and a circulating supply of 6,364,516 $NGM.

    Funding Rounds

    Seed Round (concluded) :2,285,000 NGM sold at 0.10 USD per token. 12 months vesting period.*

    Private Sale (concluded): 6,700,000 NGM sold at 0.25 USD per token. 6 months vesting period.*

    Public Sale (on 19th January 2021): 300,000 NGM to be sold at 0.50 USD per token. No vesting period.*

    *The initial vesting date was 4th November 2020 at 1:00pm CET.

    Token allocation

    Marketing Costs: 280,000 NGM (0.28% of total supply)

    Market Making Fees: 33,333 NGM. (0.033% of total supply)

    Exchange Listing Fees: 600,000 NGM. (0.60% of total supply)

    Liquidity Provisioning (Float): 1,193,026 NGM. (11.9% of total supply)

    Customer Acquisition: 8,300,000 NGM. 8.3% of total supply)

    Ecosystem Fund (Grants): 10,000,000 NGM. (10% of total supply)

    Treasury: 60,000,000 NGM. (60% of total supply)

    e-Money Token Sale

    On 19th January 2021 at 12:00 CET, e-Money will launch the public sale of its NGM token on Polkastarter. This will be in the form of an Initial Decentralised exchange Offering (IDO). 300,000 NGM tokens will be available for sale at USD$0.50 each.

    Conclusion

    Stablecoins currently on the market have huge drawbacks. Problems with collateralization and the performance of their underlying assets can cause uncertainty on their value. For instance, MakerDAO’s DAI had encountered some problems when ETH crashed last March 2020, creating difficulties in maintaining its peg.

    e-Money is proposing a potentially promising alternative. By being collateralized in its issuing currency and interest-bearing, they are resilient against the at-times volatile economic climate. It is also simplified as its underlying fiat reserve is calculated automatically, and transparent with the help of quarterly audits by Ernst & Young to ensure Proof of Funds.

    Decentralised Finance (DeFi) series: tutorials, guides and more

    With content for both beginners and more advanced users, check out our YouTube DeFi series containing tutorials on the ESSENTIAL TOOLS you need for trading in the DeFi space e.g. MetaMask and Uniswap. As well as a deep dive into popular DeFi topics such as decentralized exchanges, borrowing-lending platforms and NFT marketplaces

    The DeFi series on this website also covers topics not explored on YouTube. For an introduction on what is DeFi, check out Decentralized Finance (DeFi) Overview: A guide to the HOTTEST trend in cryptocurrency

    Tutorials and guides for the ESSENTIAL DEFI TOOLS:

    More videos and articles are coming soon as part of our DeFi series, so be sure to SUBSCRIBE to our Youtube channel so you can be notified as soon as they come out!

    Disclaimer: Cryptocurrency trading involves significant risks and may result in the loss of your capital. You should carefully consider whether trading cryptocurrencies is right for you in light of your financial condition and ability to bear financial risks. Cryptocurrency prices are highly volatile and can fluctuate widely in a short period of time. As such, trading cryptocurrencies may not be suitable for everyone. Additionally, storing cryptocurrencies on a centralized exchange carries inherent risks, including the potential for loss due to hacking, exchange collapse, or other security breaches. We strongly advise that you seek independent professional advice before engaging in any cryptocurrency trading activities and carefully consider the security measures in place when choosing or storing your cryptocurrencies on a cryptocurrency exchange.

  • LABS Group ($LABS): bringing real estate investments to the masses?

    LABS Group ($LABS): bringing real estate investments to the masses?

    LABS Group aims to realise everyone’s dream of real estate ownership through fractionalising real estate investments.

    Traditionally, entry into the real estate industry requires a substantial investment due to the indivisibility of assets. Consequently, small investors find this asset class completely out of their reach.

    Among the few platforms trying a stab at bringing real estate to the masses is LABS Group. Through its ecosystem token and utilising decentralised finance (DeFi) and governance, its mission is to intelligently blend the centralized and the decentralized worlds of real estate to improve its liquidity.

    Check out our interview with Chairman Mahesh Harilela (or listen to the podcast).

    Tokenizing Real Estate Assets-LABS Group with Mahesh Harilela

    Background

    Mahesh Harilela, is the Company’s Chairman. Mahesh comes from one of the most prominent families in Hong Kong, which owns 19 hotel properties worldwide through the Harilela Group. Mahesh himself has certainly inherited the family’s entrepreneurial spirit and is involved in Trading, Brand Development, Renewable Energy Infrastructure, Agriculture and Education. He is also Chairman of the Board and CEO of M. Harilela Global Investments Ltd and Asia CBD Pte Ltd.

    What is Labs?

    LABS is a leading blockchain-based ecosystem for real estate investments. The platform seeks to bring more people into the space by fractionalizing investments. Compared with other legacy modes of investing in the real estate space like private equity funds, REITs, and direct investment, LABS emerges as the winner.

    For instance, it ticks crucial boxes such as low fees, governance, ownership, staking for profit, tradable, among others.

    Critical issues the protocol is trying to solve include:

    1. Costly entry and exit prices – Currently, the median entry price into the ecosystem is high. The cost rises as you enter into big cities. Apart from entry points, exit costs are driven through the roof by third parties such as agencies.
    2. Eradicate reliance on Real Estate Investment Trusts (REITs) – Although they allow pooled investments, they are majorly open to deep-pocketed individuals.
    3. Complicated access to a global network – International property ownership is a nightmare in the current state of the real estate industry.
    4. Low Liquidity – The traditional real estate market restricts investors from selling to the local market due to low liquidity.
    5. High fees – The fees range from taxes, agent fees, and transaction fees that introduce inefficiencies in the conventional market.
    LABS Ecosystem (Image credit: LABS Group)

    How Labs Tackles the Above Problems

    Labs uses different approaches to solve key issues plaguing the traditional real estate industry permanently. These are:

    Crowdfunding

    The project believes in fractionalizing real estate assets, making it possible for multiple investors to put their money in the same assets by reducing the entry costs. Additionally, it minimizes the need for investors to stretch their cash reserves unnecessarily. In doing so, it reduces the risks of losing a lot of money.

    Powering a Global Portfolio

    With digitization, the project removes the global barrier. Consequently, it provides investors with a chance to have a global portfolio of real estate assets. (contentbeta) This lowers the risks for investors. Apart from enabling them to build a global portfolio, the digitization process enables investors to mimic traditional asset features like a store of value.

    Caters to Investors Diverse Appetites

    Labs enables investors to choose between different types of assets in the industry. For example, they can select residential, commercial, industrial, or hybrid and still choose their preferred location, risk levels, and ROI.

    It Brings Blockchain and Digitization Together

    By digitizing real-world assets, the project opens them up to trading on virtual exchanges that have no geographical limitations nor opening/closing times.

    Extra benefits

    Other benefits birthed by the project are:

    1. Interaction with the DeFi scene and enabling decentralized governance.
    2. Ability to trade real estate securities.
    3. Faster and direct dividends payments
    4. Reduced and enhanced transactions.

    Liquidity Provision On the Labs Network

    1. Tokenization – This helps power an asset-backed token ecosystem that lives on the blockchain enabling other activities such as over-the-counter trading and token swapping.
    2. Trading on the secondary market – Trading of Labs’ securities leverages recognized exchanges. Note that when shares are tokenized, they are traded on a securities exchange. Such asset trading platforms enable enhanced non-stop trading, positively impacting investors’ entry and exit points.
    3. Lending – Labs facilitates lending activities on the platform using two native assets; the Labs stable token, the Labs security token (more on these later). The protocol uses these tokens to address the liquidity problem by allowing their holders to engage in collateralized lending.

    Conclusion

    By fractionalizing real estate assets, Labs eases the entry of retail investors into the industry. Consequently, it increases liquidity. Another critical Labs undertaking is digitizing these assets, effectively connecting the real estate market to the DeFi world.

    In return, it opens up the space to more possibilities such as collateralized lending, over-the-counter trading, and swapping. Additionally, the inclusion of the LABS token drives community governance that is a crucial pillar in DeFi-focused protocols.

    Disclaimer: Cryptocurrency trading involves significant risks and may result in the loss of your capital. You should carefully consider whether trading cryptocurrencies is right for you in light of your financial condition and ability to bear financial risks. Cryptocurrency prices are highly volatile and can fluctuate widely in a short period of time. As such, trading cryptocurrencies may not be suitable for everyone. Additionally, storing cryptocurrencies on a centralized exchange carries inherent risks, including the potential for loss due to hacking, exchange collapse, or other security breaches. We strongly advise that you seek independent professional advice before engaging in any cryptocurrency trading activities and carefully consider the security measures in place when choosing or storing your cryptocurrencies on a cryptocurrency exchange.

  • Covalent ($CQT): unified blockchain data for the entire ecosystem?

    Covalent ($CQT): unified blockchain data for the entire ecosystem?

    Covalent is a multichain protocol that provides easy and quick access to deep, granular, and historical blockchain data.

    So far, the blockchain has had an irrevocable impact on modern technology. The spread of decentralized architectures and frameworks has given birth to numerous technological innovations. Despite the technological freedom the blockchain has brought, granular and historical blockchain data is almost impossible to access. Blockchain product users and developers often have no way to explore data on the blockchain; data that are highly unstructured and unstandardized in most cases.

    Through its special algorithm, Covalent resolves this issue and guarantees mass adoption for Decentralized ledger technologies (DLT), powered by a rich data infrastructure.


    Background

    Founded in 2018, Covalent prides itself as a new frontier of development for enterprises, consumers, and software developers. The very first version of the protocol was built at a distributed systems hackathon back in 2017.

    After winning the hackathon, co-founders Ganesh Swami and Levi Aul decided to turn the ambitious blockchain implementation into a highly secure, reliable, and easy-to-use decentralized solution. Covalent technology strives to resolve the huge infrastructure problems slowing down blockchain adoption and acceptance worldwide.

    The team behind Covalent is a diverse 30-persons group of financial, marketing, and blockchain experts and engineers all with rich experience in decentralized finance (DeFi).

    What Is Covalent?

    Covalent is a multichain API that provides easy and quick access to deep, granular, and historical blockchain data. This efficient blockchain protocol has managed to index the whole blockchain space to empower blockchain pioneers and leaders of the future. Additionally, the solution bridges the entrenched world of centralized databases with the new world of distributed blockchain technologies.

    Covalent’s unified API enables access to the richest and most secure data infrastructure within the decentralized ecosystem. Additionally,  through its immense data infrastructure,  The API allows users to scrutinize numerous well-known and specific blockchain protocols. This gives endless possibilities to participants in terms of transparency and total visibility throughout decentralized networks.

    The covalent network’s unique API implementation offers incredible access to historical transaction activity, positions, and token balances to many top Defi and NFT projects. Currently, the protocol is working with the likes of Ethereum, Polygon, Binance Smart Chain, and Avalanche to provide substantial, granular, and accessible data.

    Covalent Use Cases

    Overall, the full extent of the protocol’s use cases is relatively unknown. However, developers and partners within the platforms have come up with multiple ways to leverage data provided by the protocol.

    Wallets

    There are over 200,000 ERC-20 tokens on Ethereum and growing all thanks to the composability of DeFi Solutions. Under the Covalent algorithm, wallets are well structured, as they show real-time and historical balances, positions, and most importantly, portfolio value for all of their assets.

    Taxes

    All DeFi actions are taxable, and having easy access to such data facilitates blockchain transactions and makes firms compliant. Covalent is the only protocol in the market that provides this service for decentralized exchanges (DEXs).

    NFT Dashboards

    Mainstream blockchain products like Chainguardians and NFTX rely heavily on the platform’s Investor tools to show price trends, liquidity, and ROI of collectibles to educate their clients.

    How Covalent works
    How Covalent works (Image credit: Beginners Guide to Covalent)

    What Makes Covalent Unique

    It is no doubt that Covalent is special in regards to other solutions within the market. The platform’s incredible algorithm is rooted in 4 main features, which allows Covalent to provide clients with the best transparency and visibility tool in the blockchain sphere. The features are:

    Data availability

    Covalent’s infrastructure is responsible for every transaction, contract, and wallet address under its ecosystem. Hence, this blockchain solution is accountable for billions of rows of data and terabytes of data, unlike most projects on the market that provide smaller or minuscule amounts only.

    Composability

    Composability is viewed as an important tool for DeFI implementations, as it grants users the ability to build financial solutions leveraging building blocks from a multitude of projects. Therefore, Covalent’s immense multichain API ultimately enables developers to instantly construct scalable and data-rich applications powered by a granular data infrastructure. (Xanax)

    Multi-blockchain Support

    One of the platform’s greatest strengths is its multichain support, as the covalent team is currently working with customers on 7 different well-known blockchain networks, with many more set to join and rely on the protocol soon.

    In general, the Covalent team works closely with technical and business teams of their customers across the blockchains networks to ideate, plan, and execute a turn-key solution for developers building on top of their blockchains.

    No code solution

    The multichain API firmly believes in no-code solutions for clients and participants. Therefore, no overpriced and complicated SQL queries, no subgraph development and maintenance, and no need to invest in highly-skilled developers to simply retrieve blockchain data, which can be a huge waste of engineering time. With one fast and secured API, customers are sure to be satisfied.

    Covalent Query Token (CQT)

    CQT is the platform utility token and is primarily a proof-of-stake governance token powering Covalent’s rich and robust network. Additionally, the token facilitates the democratization of the multichain solution and enables the creation of blockchain data apps in Covalent’s vast marketplace.

    CQT will primarily serve as a governance token, giving voting rights to holders concerning the system’s parameters such as new data sources, specific geolocations, and data modeling requirements. CQT will also be used as a staking asset within the multichain API.

    Conclusion

    The Multichain API aims to organize the world’s blockchain information, enabling more transparent blockchain actions and transactions. Covalent has successfully managed to resolve issues concerning transparency and visibility within the blockchain.

    The platform’s unified API has indexed billions of blockchain data points in the scope of empowering blockchain leaders of tomorrow. It is fair to conclude that Covalent is ahead of its competition, as more than 7 prominent blockchain networks rely on the services of this protocol.

    The team’s continuous drive to elevate and scale blockchain technologies is a testimony of the platform’s innovative ecosystem built to bring forward key attributes of decentralization in complete transparency and visibility. Overall, Covenant is set to impact the blockchain space positively, thereby contributing to the worldwide adoption of decentralized technologies.

    Decentralised Finance (DeFi) series: tutorials, guides and more

    With content for both beginners and more advanced users, check out our YouTube DeFi series containing tutorials on the ESSENTIAL TOOLS you need for trading in the DeFi space e.g. MetaMask and Uniswap. As well as a deep dive into popular DeFi topics such as decentralized exchanges, borrowing-lending platforms and NFT marketplaces

    The DeFi series on this website also covers topics not explored on YouTube. For an introduction on what is DeFi, check out Decentralized Finance (DeFi) Overview: A guide to the HOTTEST trend in cryptocurrency

    Tutorials and guides for the ESSENTIAL DEFI TOOLS:

    More videos and articles are coming soon as part of our DeFi series, so be sure to SUBSCRIBE to our Youtube channel so you can be notified as soon as they come out!

    Disclaimer: Cryptocurrency trading involves significant risks and may result in the loss of your capital. You should carefully consider whether trading cryptocurrencies is right for you in light of your financial condition and ability to bear financial risks. Cryptocurrency prices are highly volatile and can fluctuate widely in a short period of time. As such, trading cryptocurrencies may not be suitable for everyone. Additionally, storing cryptocurrencies on a centralized exchange carries inherent risks, including the potential for loss due to hacking, exchange collapse, or other security breaches. We strongly advise that you seek independent professional advice before engaging in any cryptocurrency trading activities and carefully consider the security measures in place when choosing or storing your cryptocurrencies on a cryptocurrency exchange.

  • FinxFlo ($FXF): Cost-saving crypto trading?

    FinxFlo ($FXF): Cost-saving crypto trading?

    Despite the apparent growth of the crypto ecosystem, one major problem faced by traders is the cost. Many retail traders often fall victim to exchanges that quote unfair asset prices. Unfortunately, these shortcomings can lead to distortions in the market. This is where FinxFlo comes in to provide a solution.

    FinxFlo is a platform that seeks to allow its users to trade with 25+ exchanges (DeFi and CeFi based) from a single interface, with a one-time KYC verification process. Therefore, traders on FXF can access the best price for the asset to be traded. With just one account and one KYC process, traders can maximize the prices and rates provided by the platform.

    Furthermore, the brokerage also enables traders to make informed decisions by providing them with accurate and real-time information and ensuring transparency.

    Background

    Founded in 2019, Finxflo comprises a multi-cultural team of individuals with successful stints in various industries such as Law, Finance, Fintech, etc.

    The CEO and Co-founder, James Gillingham, is a household name in the world of investments, who has once owned a trade algorithm platform, which he sold off later at the tender age of 23 in a big deal.

    Along with Thomas Plaskocinski, he is channeling all that experience towards creating a simple yet effective solution to most traders’ problems, namely, market volatility.

    FinxFlo operates under an exemption granted by the Monetary Authority of Singapore (MAS) within the Payment Services Act 2019. Meanwhile, further regulatory approvals in other jurisdictions are underway.

    What is FinxFlo?

    FinxFlo is a crypto brokerage platform that aggregates offers from the top exchanges to create a fair market environment and provide more liquidity.

    Using Decentralized Finance (DeFi) model and concepts, FinxFlo doubles as a price aggregator platform with brokerage services to help traders and investors identify the best buy and sell positions for digital assets.

    That way, they can avoid the risks that exist within the crypto markets. But not only that, FinxFlo offers its users the privilege to trade at a low fee.

    Through its native token, FXF, users can earn rewards by engaging themselves in various activities available on the platform (more details in the subsequent sections). 

    In short, the platform combines the best of Defi and CeFi into a single product.

    The Advantages of FinxFlo

    FinxFlo advantages
    FinxFlo advantages (Image credit: FinxFlo)

    Smart Order Routing

    It’s the proprietary concept at the heart of the FinxFlo trade algorithm. Whenever a user enters an order, the platform automatically compares available prices on different exchanges and selects the user’s overall best option.

    With it, users are ensured to derive maximum returns on their investment without having to swap platforms.

    Dark Pool Trading

    Front running, which closely resembles the popular pump and dump strategy, occurs when, as in most cases, a whale investor moves to cause a sudden change in the price of assets by creating a large transaction.

    Cryptocurrencies are not immune to such manipulation. But this is where the Dark Pool feature comes in. The function protects users from unsuspected market movements by enabling users to exit a trade in the case of such events swiftly. At the same time, if the user can pull profits with his position, the trade will be allowed to continue.

    A Unitary portal

    In trying to keep pace with this fast-evolving industry, most crypto traders end up owning even more than five accounts with different exchanges to access the extra privileges offered on each.

    But thanks to FinxFlo’s one account, one KYC, one wallet, and one interface policy, users can have all their needs met on a single portal without losing any of the benefits that come with having multiple accounts.

    Furthermore, FinxFlo’s combination of the Ethereum and Tron blockchain network means, for the first time, traders can access different asset pairs not available elsewhere.

    Token Mining

    On other exchange platforms, traders’ rewards are the profits they make with successful orders. On Finxflo, even the list performing traders get rewarded for their activities.

    This process is also referred to as Trade Mining.

    FinxFlo Fees

    On FinxFlo, a trading fee of 0.1% (for each buy or sell order) is deducted at the execution point. In addition, fund withdrawals are completely free.  

    Exchange Security

    Security and safety are arguably the most sensitive issues users worry about when selecting a good crypto exchange. For several years, various protocols and upgrades have been developed to address this issue but theft and hacks are still on the rise.

    For this reason, FinxFlo has partnered with Fireblock to insure users’ assets and also provide top-level security based on the latest cybersecurity technology.

    FinxFlo token (FXF)

    FXF is the utility token of the platform, which is built as a blockchain 3.0 asset to facilitate interoperability between two separate networks, Ethereum (as an ERC20 coin) and Tron (as a TRC20 coin).

    To enjoy some of the most exciting benefits of the ecosystem, users must hold the FXF coins. Aside from that, there are other lucrative benefits that come with having an FXF token in one’s FinxFlo account such as staking and yield farming.

    FXF token is available for trading on Uniswap, Gate.io and Bilaxy.

    FinxFlo tokenomics
    FinxFlo tokenomics (Image credit: FinxFlo whitepaper)

    Staking

    Trading fees accumulated over time are distributed to users through a reward pool system. To be eligible, token holders would need to stake their FXF holdings on the network. Users would have their rewards distributed via a smart contract relative to their staked coins.

    Yield Farming

    Similar to other DeFi platforms, FinxFlo offers a yield farming program. But unlike how it is being provided on other exchanges, FXF token holders are automatically listed as Liquidity Providers (LPs).

    These locked tokens are used to create funds, which serve as margins for FinxFlo exchange partners. In return, LPs get additional FXF assets as rewards. Most crypto investors utilize this process (called Liquidity Mining) to create additional income streams for themselves.  

    Conclusion

    With all the recent hype centered around crypto such as the Gamestop and Dogecoin debacle, major corporations like Tesla buying into Bitcoin, etc., many newcomers are now eager to join the blockchain movement, which also exposes them to massive risk.

    Fortunately, Finxflo’s vision to mitigate the risks of trading overhyped digital assets. Therefore, if the project becomes widely adopted, the crypto universe will see an even bigger influx of new individuals who will actively participate in trading, liquidity mining, as well as other crypto activities.

    Disclaimer: Cryptocurrency trading involves significant risks and may result in the loss of your capital. You should carefully consider whether trading cryptocurrencies is right for you in light of your financial condition and ability to bear financial risks. Cryptocurrency prices are highly volatile and can fluctuate widely in a short period of time. As such, trading cryptocurrencies may not be suitable for everyone. Additionally, storing cryptocurrencies on a centralized exchange carries inherent risks, including the potential for loss due to hacking, exchange collapse, or other security breaches. We strongly advise that you seek independent professional advice before engaging in any cryptocurrency trading activities and carefully consider the security measures in place when choosing or storing your cryptocurrencies on a cryptocurrency exchange.

  • KeyTango ($TANGO): the easiest way to DeFi?

    KeyTango ($TANGO): the easiest way to DeFi?

    KeyTango is an investment solution built on Web3 technologies that function as a gateway for DeFi products and services.

    While the decentralized finance (DeFi) market is growing, the struggle to keep up is getting bigger for many users. And sometimes, because of so many rug-pulls in DeFi, scam tokens, and underdeveloped projects in this space, people choose to avoid it altogether. KeyTango is a solution to these concerns.

    KeyTango offers a one-stop shop for various, reputable, and secure DeFi projects to minimize the risk that a new cryptocurrency holder or trader absorbs. It also offers learning options that can help anyone better understand what DeFi’s underlying concepts and technicalities actually mean.

    Background

    The growth of DeFi projects has been outstanding, posting 725% growth within just 3 months. However, there are still a lot of investors who are unfamiliar with how the ecosystem functions. Most of the new retail traders find themselves into sketchy projects that claim to be DeFi, only to find out later that these projects cannot actually deliver their promise.

    KeyTango is developed with the help of experts from cryptocurrency, financial technology, and investments. The project is also supported by many Outlier Ventures staff members as their angel investors. The goal of the team behind it is to introduce an easy-to-use, Robinhood-like platform, where users can easily trade in the DeFi space within just a few clicks.

    What is keyTango?

    KeyTango is a Web3-based investment solution that functions as a gateway for DeFi products and services. It is connected with multiple projects on a variety of DeFi markets. This gives users a wide selection of financial tools to choose from if they are looking for ways to maximize the capacity of their assets in making a profit.

    KeyTango features a user-friendly interface for any cryptocurrency or DeFi user and focuses on three main goals: discover, learn, and invest.

    Moreover, the platform offers its users a tailored recommendation on the products they could access based on the history of their activity on the wallet they linked. This makes it easier for the users to choose which asset fits their profile and easily avail of the products and services in the instruments suggested for them.

    Discover

    One of the things KeyTango gives to its users is exposure to different DeFi products, such as yield farming and liquidity mining. The platform is backed by a team of investment experts and venture capital managers. More than that, any product posted on the application is carefully curated by MIT and Y-Combinator Alumni, which assures users that the DeFi projects they discover through the protocol are guaranteed of good quality and reputation.

    Learn

    To address the problem of most cryptocurrency holders who do not completely understand some of the complex DeFi projects that they could potentially benefit from, KeyTango introduced a “Learn” layer on the application. Every technical knowledge that any user would need to know will be made accessible on this part of the platform.

    Invest

    Once a user has already understood what it means to put their assets in DeFi, from how they can earn yields to DeFi protocols’ underlying risks, they can easily use the platform to start their investments. The process is simple. Users just need to link their cryptocurrency wallet.

    Products

    Liquidity Pools

    Users who are looking to put their idle assets in a liquidity pool can now easily do so using the platform. In this product, a holder of a token can supply them to the liquidity of any supported decentralized exchange (DEX) to earn additional tokens from trading fees.

    The products that can be accessed on this market are DEXs like Balancer, Bancor, Curve, SushiSwap, and Uniswap.

    Yield Farming

    DeFi projects have their own native utility tokens. Holders of these tokens earn rewards for keeping them and using them to participate in the network’s activities. What yield farmers do is they stake their tokens to DEXs where these utility tokens are traded and supply their liquidity there.

    This way, they can also earn rewards in the form of the token that they supplied liquidity to. There are various yield farming protocols in the market today, however, they can be too difficult for others to access because due to the challenges is finding a safe platform. KeyTango makes it a safer opportunity for investors since they have also curated the projects they support on the application.

    DeFi Trading

    DeFi applications that offer spot trading and leveraged trading functions can be easily found in KeyTango. In these platforms, users will be able to access exchanges powered by automated market makers (AMM). Some of the platforms that are known for this product are 0x, Aave, and Sushiswap.

    Derivatives and Other Products

    As the DeFi economy continues to grow, KeyTango will also adapt accordingly. The application will be working on providing access to new DeFi opportunities such as NFTs, derivatives, and many others.

    TANGO

    TANGO is the platform’s native, utility token. It can be used to pay for the protocol’s transaction fees and to participate in the platform’s governance functions. A portion of TANGO’s total supply will also be allocated to the community treasury.

    Staking

    The platform will have four staking pools: Earlybird Staking, Pro Staking, Expert Liquidity Mining ETH, and Expert Liquidity Mining USDT. They have specific maturity periods and pool sizes which users can see in the interface. Users can also have an estimate of their potential profit as the pools also indicate their APY for each one.

    keyTango staking
    Some of the staking options available on keyTango (Image credit: keyTango)

    Conclusion

    KeyTango is a project that the whole DeFi space could benefit from. Having assembled a team of experts to curate the projects that will be made available on the platform provides a tremendous advantage. More than the minimization of risks and breaking the psychological barrier that keeps people from adopting DeFi, it also raises the awareness of the public as to what DeFi can offer.

    This is why the project is a promising complement to the DeFi ecosystem. Getting people to understand how DeFi works and enabling a way to easily supply their assets in the best projects available can be a huge boost when it comes to achieving wider adoption.

    Decentralised Finance (DeFi) series: tutorials, guides and more

    With content for both beginners and more advanced users, check out our YouTube DeFi series containing tutorials on the ESSENTIAL TOOLS you need for trading in the DeFi space e.g. MetaMask and Uniswap. As well as a deep dive into popular DeFi topics such as decentralized exchanges, borrowing-lending platforms and NFT marketplaces

    The DeFi series on this website also covers topics not explored on YouTube. For an introduction on what is DeFi, check out Decentralized Finance (DeFi) Overview: A guide to the HOTTEST trend in cryptocurrency

    Tutorials and guides for the ESSENTIAL DEFI TOOLS:

    More videos and articles are coming soon as part of our DeFi series, so be sure to SUBSCRIBE to our Youtube channel so you can be notified as soon as they come out!

    Disclaimer: Cryptocurrency trading involves significant risks and may result in the loss of your capital. You should carefully consider whether trading cryptocurrencies is right for you in light of your financial condition and ability to bear financial risks. Cryptocurrency prices are highly volatile and can fluctuate widely in a short period of time. As such, trading cryptocurrencies may not be suitable for everyone. Additionally, storing cryptocurrencies on a centralized exchange carries inherent risks, including the potential for loss due to hacking, exchange collapse, or other security breaches. We strongly advise that you seek independent professional advice before engaging in any cryptocurrency trading activities and carefully consider the security measures in place when choosing or storing your cryptocurrencies on a cryptocurrency exchange.

  • Linear Finance ($LINA): The future of synthetic exchange platforms?

    Linear Finance ($LINA): The future of synthetic exchange platforms?

    Linear Finance ($LINA) understands that decentralized finance (DeFi) has opened new possibilities for derivative offerings and that many exchanges have the apparent problems of front-running, expensive gas fees, and liquidity issues. Linear Finance seeks to go around those issues with its cheap, quick, and transparent synthetic asset exchange platform. With Linear, users can simply make a synthetic asset that contains a portfolio of different underlying tokens based on the exposure that they are willing to take. This presents new yield-making opportunities for anyone based on their customized financial goals.

    Check out our interview with Linear Finance!

    https://www.youtube.com/watch?v=JcXsEwj5hpI

    Background

    Drey Ng and Kevin Tai, Co-founders of Linear Finance, built the project with a vision of an inclusive and more democratized access to investment opportunities. By their team’s expertise in different crypto initiatives and financial instruments, Linear made a cross-chain, Ethereum-based protocol that seeks to fulfill their vision.

    With Linear, users can make their own portfolio exposures and manage them on their own. This initiative enables investors to easily invest, save, and earn efficient profits from their assets.

    What is Linear Finance?

    Linear Finance is a decentralized delta-one asset protocol where users can make, manage, and trade synthetic assets. This gives users exposure to different kinds of assets without having to actually own their underlying assets.

    An additional feature that Linear Finance has introduced is a cross-chain compatible and decentralized protocol that can support a faster, more affordable, and secure exchange of synthetic assets.

    Linear Finance’s platform is powered by its native token, LINA. It can be used for many purposes such as payments, staking, liquidity mining, governance, and investing in “Liquids.” Liquids are Linear’s synthetic assets composed of different underlying tokens or investment options.

    LinearDAO

    LinearDAO is the governance community who controls important platform designs and system parameters including pledge ration, LINA inflation reward and frequency, transactions fees, proposal implementation, and many more. Furthermore, they also regulate the profit and loss regarding liquidation.

    Perks and Special Features

    The project promises infinite liquidity and no slippage. Here are some of the perks users can find with Linear Finance:

    • Convenience: The protocol promises quick transactions with low transaction fees. Any kind of user can enjoy the platform as well, whether they are a market maker, staker, or trader.
    • Transparency: To prevent front-running, every transaction made within the exchange is made transparent to all users. This also reduces systemic risks on the part of each network participant.
    • Ethereum-based: Because it is built on the Ethereum network with cross-chain compatibility, it can work alongside other DeFi projects too.
    • User-tailored options: There are different exposure options that users can freely choose from, such as other tokens, commodities, or market indices.

    The whole Linear platform is built on two different blockchains but they complement each other thanks to cross-chain compatibility. For users, they only need to open an Ethereum-based wallet and an EVM-compatible wallet.

     Linear automatically links these two together through smart contracts. Here are some of the advantages of an infrastructure modeled around that concept. They are:

    • Maximized DeFi support: While LinearDAO and LINA tokens are based on Ethereum, its use of EVM and smart contracts make it easy for the platform to interact with other DeFi protocols.
    • Affordability: Buildr and Exchange function through smart contracts on top of EVM-compatible blockchains. This enables Linear to support the building and trading of Liquids at very minimal gas fees.
    • Fewer risks of front-running: The block time confirmation for other EVM-compatible blockchains are much faster than Ethereum. This allows users to create their own Liquids at more updated prices through the help of oracles. This way, the risk of users front-running the exchange becomes much lower.

    LINA Token

    LINA can be used for payments, staking, and governance participation. But mainly, LINA functions as the base collateral needed to mint Liquids through Buildr, the decentralized application (dApp) designed to manage synthetic assets.

    To create Liquids, users have to “pledge” 100% of their digital assets, which also means collateralization. This is to ensure that Liquids are fully-backed by an underlying asset, saving the stability of the system from the volatility of synthetic assets. The pledge requirement can be reduced eventually if the LinearDAO deems it necessary.

    Collateralization

    Buildr takes a hybrid approach in terms of collateralization. For Liquids, users need to deposit a mixture of LINA and other cryptocurrency tokens to generate a synthetic asset. The ratio is 80:20, where at least 80% of the collateral must be in LINA and 20% can be in other cryptocurrencies.

    Staking

    Staking LINA offers users many incentives. These are the following rewards that users can receive by doing so:

    • Exchange Fee Reward: The transaction fees collected from users of the Linear.Exchange platform, currently set at 0.25%, is redistributed weekly to LINA stakers on a pro-rata basis. For non-LINA stakers, these rewards can also be provided too but it will depend on the decision of the community governance council.
    • Inflationary Reward: LINA has a starting inflation rate of 75% which decreases on a weekly basis. The inflation reward is given to LINA stakers on a pro-rata basis as well.
    • Yield Farming: Yield farmers help maintain Linear’s debt pool and the whole platform. For the first two years of the project, users who actively use the exchange can receive token bonuses. These token bonuses can then be deposited by yield farmers in other liquidity pools such as Balancer, Curve, and Uniswap.

    Where can I buy/sell/trade $LINA?

    $LINA is now tradable on other exchanges as well like Bitmax, MXC, Bilaxy, Bibox, Hotbit and Hoo.

    Linear.Exchange

    In facilitating faster trade activities with almost unlimited liquidity, Linear is building their own exchange. As of now, Liquid is collaborating with other public blockchains to reduce transaction settlement timeframes to as quick as one second every transaction coupled with instant finality.

    With a plan of partnering with oracles, Linear also believes that they can solve problems with front-running as they gain the capability of refreshing prices on a frequent and quick basis at much lower prices for the underlying assets.

    Linear Finance ($LINA) token public sale

    The token public sale took place on 14th September 2020. A total of 47,222,222 LINA tokens were sold in 2 rounds. The first round had 25mil tokens at $0.00400 per token. The second round, 22,222,222 tokens at $0.00450 per token.

    The sale was 40 times oversubscribed and closed earlier than expected (it was supposed to last for 24 hours). Each participant in the sale had to purchase 500 USDT/USDC worth of LINA. Hence only 400 participants were able to get the allocation on a FIRST COME FIRST SERVED basis. This was determined by the time/date stamp on their Google Form submission. The first 200 users were allocated LINA tokens from round 1, and the remaining 200 participants from round 2. This was however subject to the registrants completing the KYC process in a period of 24 hours.

    $LINA was first listed on Uniswap and reached more than 20x from public sale price (and around 60x from private sale round 1). It is now stabilized at around $0.005 (as at 3 November 2020).

    Linear pre-staking platform

    Immediately after listing, Linear Finance has launched its staking platform. Holders can participate in the 8 weeks pre-staking program and get rewarded. The APY has been around 600% for weeks and has now decreased around 370%. All the earnings will be claimable 6 months after mainnet launch but users can withdraw their staked funds at anytime.

    Partnership announcements

    In the weeks following the launch, Linear has announced partnerships with Nervos, Moonbeam and Hex Trust.

    Nervos is an open source blockchain that offers security and trustlessness without compromising on scalability and performance with its unique layered architecture. The collaboration is focused on improving Linear’s cross chain capabilities and penetration of the Chinese market.

    Moonbeam, an Ethereum ($ETH) compatible smart contract parachain, is a strategic partner to help set the feet into the Polkadot ($DOT) ecosystem and level up Linear’s interoperability. Finally, the partnership with Hex Trust as a custody partner, will give Linear the chance to offer secure, institutional grade custodial services for institutional investors.

    A next announcement has revealed a new partnership with 3Commas, a cryptocurrency trading platform that helps users build automated trading bots. The investment is meant “to include future integration of the platforms and tools, streamlining operations and allowing for a greater range of features and offerings”.

    Testnet is live

    On 16th October 2020, the first testnet for Buildr has been released. Buildr is one of the core dApps of the Linear suite, where users can stake their $LINA (and soon more collaterals) to build ℓUSD, the base currency of Linear Exchange. Stakers are entitled to rewards and to a part of the transaction fees generated by the exchange. ℓUSD tokens can be minted to purchase synthetic assets within the exchange itself and can be moved to other protocols.

    The last testnet update has just come out allowing users to purchase “Liquids” with ℓUSD on Linear.Exchange. Meanwhile, mainnet launch is allegedly happening in a couple of weeks.

    If you want to read more and discover how to contribute to the testnet, please have a look at the articles here and here.

    More than 222 million of $LINA tokens are staked, for a total value of more than USD$1 million.

    New Partnership with Band Protocol

    In this article dated November 16, Linear Finance has ufficially announced their partnership with Band Protocol, cross-chain decentralised oracle.

    The biggest problem this collaboration is trying to solve is front running. As Drey Ng, Co-Founder at Linear Finance said: “Front running is a fundamental problem not just for current synthetic asset trading but all trading in general”. Not solving this problem would jeopardize all “the benefits of cross-chain compatibility (such as speed and cost), and a superior creative selection of synthetic assets”.

    How Band Protocol Oracle works with Linear
    How Band Protocol Oracle works with Linear

    Other reasons why Band Protocol was chosen are the minimized network risk., end-to-end customizability for real-time data and truly decentralized oracle mechanism. The partnership will start securing the Linear Protocol on Binance smart Chain, the first project’s cross-integration, where the BEP token has just been created (the common $LINA we see on exchanges is an ERC-20 token).

    The team is now working on features to allow users to seamlessly swap chains.

    Linear Finance road to mainnet
    Linear Finance road to mainnet

    Mainnet Buildr Launch and new staking program

    The Linear Mainnet Buildr v1.0 went live on December the 21st, after months of extensive testing. The Buildr dApp is the heart of Linear’s decentralised application suite. Users can stake $LINA tokens to build ℓUSD and earn rewards. Here is a complete and detailed guide on how to use Buildr to the fullest.

    Linear's Buildr
    Linear’s Buildr

    All of the $LINA from the pre-staking program were migrated seamlessly to the mainnet and while previously earned rewards will be blocked until next June, new mainnet staking rewards will be locked for 1 year from launch. They will count towards the P-Ratio and can be used to build $LUSD. It is important to note that in order to be eligible for rewards, users are required build ℓUSD or any subsequent Liquids.

    Binance Smart Chain’s Buildr v2.0 launch

    As anticipated, Linear wants to bring Cross Chain compatibility and ease of use to Defi and Ethereum users. The team had, in fact, previously declared that “Linear was designed for all users (no matter how much LINA you hold) and transaction costs will not become a barrier to entry. Nobody will get left behind”.

    The promise has been kept and Linear.Builder Mainnet v2.0 with full Binance Smart Chain (BSC) integration and swap has gone live on January the 15th, 2021. Users can now enjoy almost gasless fees when interacting with the platform.

    The transaction was seamless and old stakers only have to connect to Buildr via MetaMask using the BSC Mainnet (they can also use Binance Chain Wallet) and they will see their Lina tokens and rewards already there. For new holders who would like to stake for the first time, there is an internal ERC-20 -> BEP20 swap whithin Buildr itself. More info and complete instructions can be found on the Medium article.

    Be careful!: There are now two versions of the $LINA token. If you send the Etherum version to a BSC wallet or vice-versa (whether it is a custodial or non-custodial address) you will lose your tokens! If in doubt on what to do, contact the support team via the official channels which you can find on their Website.

    Linear will be listed on Binance Innovation Zone

    Binance has announced it will list Linear Finance’s $LINA token on its Innovation Zone. Trading for $LINA/$BTC, $LINA/$BUSD and $LINA/$USDT trading pairs will start at 12:00pm (UTC) on 18th March 2021.

    Furthermore, Binance Launchpad is offering 21,084,000 LINA tokens for sale at at 0.00031044 BNB for 1 LINA. Subscription has already ended at 1:00p.m. (HKT) on 18th March 2021 and tokens will be sent to successful applicants at 6:00p.m. (HKT) on the same day.

    Conclusion

    With the rising gas prices in Ethereum, as well as the emerging trend of yield farming, the DeFi space is presented with new financial opportunities but is discouraged by its costs. Projects such as Linear is a promising addition to the space as it seeks to go around these problems.

    With Linear as a platform to easily build and manage investments, users can now enjoy quick and affordable profit-building opportunities. And in recognition of the real purpose of decentralization, Linear appears to be on the right track after putting in the pipelines a roadmap for a planned transition to community governance.

    Linear is certainly on the radar of a lot of renowned investors in this space. They have recently completed a USD$1.8m seed round with notable backers in the investment space such as NGC Ventures, Hashed, CMS Holdings, Genesis Block, Kenetic Capital, Alameda Research, Evernew Capital, Soul Capital, Moonrock Capital, Black Edge Capital and PANONY. According to Linear, this funding will go towards accelerating the development of their testnet and mainnet, as well as promoting their platform. It will certainly be exciting to see what the Linear Finance team will be releasing in the months to come.

    Decentralised Finance (DeFi) series: tutorials, guides and more

    With content for both beginners and more advanced users, check out our YouTube DeFi series containing tutorials on the ESSENTIAL TOOLS you need for trading in the DeFi space e.g. MetaMask and Uniswap. As well as a deep dive into popular DeFi topics such as decentralized exchanges, borrowing-lending platforms and NFT marketplaces

    The DeFi series on this website also covers topics not explored on YouTube. For an introduction on what is DeFi, check out Decentralized Finance (DeFi) Overview: A guide to the HOTTEST trend in cryptocurrency

    Tutorials and guides for the ESSENTIAL DEFI TOOLS:

    More videos and articles are coming soon as part of our DeFi series, so be sure to SUBSCRIBE to our Youtube channel so you can be notified as soon as they come out!

    Disclaimer: Cryptocurrency trading involves significant risks and may result in the loss of your capital. You should carefully consider whether trading cryptocurrencies is right for you in light of your financial condition and ability to bear financial risks. Cryptocurrency prices are highly volatile and can fluctuate widely in a short period of time. As such, trading cryptocurrencies may not be suitable for everyone. Additionally, storing cryptocurrencies on a centralized exchange carries inherent risks, including the potential for loss due to hacking, exchange collapse, or other security breaches. We strongly advise that you seek independent professional advice before engaging in any cryptocurrency trading activities and carefully consider the security measures in place when choosing or storing your cryptocurrencies on a cryptocurrency exchange.

  • DAO Maker ($DAO): can retail investors become venture capitalists?

    DAO Maker ($DAO): can retail investors become venture capitalists?

    One notable challenge for every startup is finding the required capital to set up businesses. This is where concepts like venture capital help such businesses to meet the required level of capital to help them blossom. However, this has traditionally been a field accessible by funds and institutions with ample resources.

    DAO Maker is here to improve the process for both parties by respectively creating growth technologies and funding frameworks for startups, and reducing risks for investors.

    Background and Team

    The Founder of DAO Maker is Christoph Zaknun who entered the cryptocurrency space in 2017. The idea of private permissionless money and the gains associated with cryptocurrency lured him further into the creation of ICO DOG, a platform that allowed for investing in token presales.

    His Co-founder, Giorgio Marciano, also acts as DAO Maker’s CTO. Marciano has over 16 years of experience in developing software and products.

    Other notable team members include Hatu Sheikh, who has overseen over 35 crypto assets marketing campaigns, and Malte Christensen, who works as the COO and Head of Sales, Dima, who works as the Head of Visual Communication.

    What is DAO Maker?

    DAO Maker is a provider of a participation framework that allows retail investors (small-scale investors) to participate in global retail venture capital. Essentially, the primary goal of DAO Maker is to raise a fundraising platform that would allow for equal participation of crowd equity and tokens.

    The reality is that most of these small-time investors are likely unable to afford to invest large sums of money in venture capital. DAO fills the gap by enabling the average man on the street an opportunity to grow his own capital. This creates a win-win situation, the business is able to effectively provide a new source of funding while at the same time helping to improve the lives of many.

    Achievements of DAO Maker

    The platform has over time proven itself to retail investors. In the last 2 years, over 70,000 unique retail investors were signed up and allowed to participate in the funding of early-stage ventures. Apart from attracting investors, DAO Maker has also been able to attract startups with enormous potential to join the burgeoning ecosystem.

    Advantages of DAO Maker

    One major reason these startups join the DAO Maker ecosystem is simple: it provides them a safe, decentralized, and free environment that allows them to reach their potentials. In addition, the platform also has one of the leading solutions that would allow for the growth of these companies.

    As a result, the ecosystem has seen a marked increase in the demand for its services, which enabled them to begin working on a permission version.

    DAO Maker’s approach to fundraising stands out since not only does it connect startups with funding, it also assiduously works to assist them in facing challenges in the initial stages of their development.

    This is why the track record of the fundraising platform has defied many market cycles.

    DAO Maker’s Venture Bond

    DAO Maker’s new flagship product is Venture Bond. It allows startups to issue bonds that users can access, whilst users benefit from close to zero-risk venture investments.

    Venture Bonds work as follows:

    • startups issue Venture Bonds;
    • users purchase these bonds, giving the startups a principal sum of money;
    • startups then use the principal sum generated by bond purchases to generate interest through insured margin funding activities in decentralised finance (DeFi) or centralised finance (CeFi);
    • the generated interest serves as the funding for the startups;
    • the startup will then deposit tokens/equity to the Venture Bond holders; and
    • when the Venture Bond matures, the principal sum is returned to the buyer, so they are left with both their initial funding and also any newly acquired tokens or equity.
    DAO Maker's Venture Bonds
    DAO Maker’s Venture Bonds (Image credit: DAO Maker)

    Other DAO Maker Services

    Other notable services of DAO Maker are Refundable Strong Holder Offering and Dynamic Coin Offering.

    Strong Holder Offering

    Strong holder offerings are designed to build a community that would actively participate in providing an increased level of awareness for a company, and at the same time, induce confidence by imposing a strict refund policy.

    DAO Maker strong holder offerings
    DAO Maker strong holder offerings (Image credit: DAO Maker)

    Dynamic Coin Offering

    For dynamic coin offerings, 100% of the circulating supply is backed by a notable portion of the funds raised during the sale.

    DAO Maker then escrows this fund through a trusted and insured custodian, allowing the platform users the opportunity to claim a refund within a specified period.

    Social Mining

    One of the earliest offerings of DAO Maker is Social Mining, which has played a pivotal role in the successful launch of some tokens in the space. The software was conceptualized in 2018, and since then, it has seen various upgrades and usage, which made it an essential part of the DAO Maker community.

    What social mining does is simple; it enables any project to create token-based incentives that encourages community members to offer value. In other words, it helps energize a project’s community to participate in its growth and development.

    The first use of this software was with LTO Network, where it served as a core component in the community creation of the project, and subsequently enjoyed tremendous growth despite the bear market of 2018. Despite the notable success of this first project (LTO), there were still some notable lapses like the dependence of the software on centralized involvement, which negated the core idea of building a decentralized and self-organizing community in the first place.

    However, since then, the team of developers have developed the software to allow pluggable DAOs and also allowing for stake-based voting. The voting allowed the community to determine the value each token holder contributed to the project. This voting system became a quite effective distribution network that was decentralized as token holders were the ones in charge.

    As it stands, work has already begun on the two key pathways social mining is being geared to: granting permissionless support for tokenized startups and permissioned access for equity startups.

    DAO Maker Token ($DAO)

    DAO, the protocol’s native token currently allows its holders to stake in the platform and enjoy governance power in submitting proposals, as well as vote on them.

    By participating in governance, stakers would also receive a part of the fee generated from the source. And in order to promote long-term participation, the staked DAO tokens are locked for a period of time.

    As can be seen below, more utilities for the DAO token are in the works.

    DAO token utilities
    DAO token utilities (Image credit：DAO Maker)

    Conclusion

    The idea behind DAO Maker is to create a platform where startups can enjoy early stage exposure from retailers. Thus, DAO Maker could be a single platform that elevates the capabilities of ordinary retail investors. The platform would also enable them to be issued with equity, while others are issued with tokens. All in all, the platform will enable varying levels of downside protection as early-stage startups face inevitable risks in their early days.

    Disclaimer: Cryptocurrency trading involves significant risks and may result in the loss of your capital. You should carefully consider whether trading cryptocurrencies is right for you in light of your financial condition and ability to bear financial risks. Cryptocurrency prices are highly volatile and can fluctuate widely in a short period of time. As such, trading cryptocurrencies may not be suitable for everyone. Additionally, storing cryptocurrencies on a centralized exchange carries inherent risks, including the potential for loss due to hacking, exchange collapse, or other security breaches. We strongly advise that you seek independent professional advice before engaging in any cryptocurrency trading activities and carefully consider the security measures in place when choosing or storing your cryptocurrencies on a cryptocurrency exchange.

  • Unbound Finance (UNB/UND): unlocking liquidity from AMM pools

    Unbound Finance (UNB/UND): unlocking liquidity from AMM pools

    Unbound Finance (UNB/UND) is a decentralised protocol that aims to unlock liquidity from automated market maker (AMM) pools. This allows users to instantly obtain crypto credit lines, as well as providing high-yield earning opportunities.

    Background

    Unbound Finance was launched in October 2020 by a publicly known team. It’s currently in the testnet phase and no token sale has been conducted yet. The team has claimed that they have major exchanges’ CEOs onboard as angels and currently working on audits for mainnet launch in the near future. It’s supported by Tomo Chain, Zilliqa, Frontier, Fuse Network, Enjin, among others.

    What is Unbound Finance?

    Unbound Finance is a decentralized protocol slated to unlock more use cases for liquidity pool tokens from the AMM market. Unbound is aiming to unleash the potential of these powerful assets and promote their further usage in DeFi protocols, without the need to redeem those liquidity pools tokens. It will also enable minting of a decentralized collateralized stablecoin called UND, synthetic Ethereum, and other synthetic assets with LPTs as collateral.

    It’s essentially a derivative layer of automated market makers (AMMs) or orderbook-less decentralized exchanges (DEXes) tasked with ‘unlocking’ the total value locked (TVL) in DeFi protocols. This mechanism can retrieve liquidity from DEXs like Uniswap, Balancer, Bancor, Curve, etc.

    According to the official documents, it will be debt and liquidation-free thanks to the use of high-quality liquidity pairs, large collateral ratios, and backup funds.

    Unbound Finance supported AMMs
    Unbound Finance supported AMM protocols (Image credit: Unbound Finance)

    Synthetic Assets

    Having introduced the term Synthetic assets, it’s a good idea to clarify what they mean. Synthetics are, as the name dictates, not the real thing but a copy of the original. It means that it is a representative of the underlying asset.

    Generally, this is accomplished by tracking the price of an asset through on-chain oracles, which allows for their continuous availability and 24/7 trading, as well as usage in protocols. Synthetic assets can range from cryptocurrencies, fiat, stocks, index funds, precious metals, foods, bonds, and many more. If anything has a price in the market, it can be turned into a synthetic asset.

    Aims And Objectives

    The protocol is trying to become the primary source of liquidity provision for Liquidity Pool tokens (LPTs) in order to bring existing liquidity pools into active usage, act as an LPT treasury, mint and manage the synthetic assets tracking the price of an underlying, establish LPT role as collateral, create pools of liquidity pools, develop instruments for margin trades and yield compounding, and safeguard against loan liquidations.

    Fees

    Unbound Finance charges a fee for minting assets. Fees will be distributed as follows:

    • 20% SAFU fund-
    • 40% UND-DAI liquidity pool
    • 20% team fund: this will be for further development of the project.

    Unbound Finance Services

    There are three primary services provided by the protocol. These include minting, unlocking, and earning services.

    Minting

    Unbound Finance allows users to mint the UND stablecoin and other synthetic assets by providing their LPT tokens as collateral. This allows them to put the value of their LPTs to use without having to liquidate them in a convenient manner, allowing them to access the funds immediately. The users are charged a minting fee and can only generate the synthetics according to the Loan-to-Value (LTV) ratio. 

    Unlocking

    After the users return their borrowed funds, the UND or synthetics are burned and the collateral is released. Since the contracts are perpetual and devoid of an expiry date, the users can return the funds at any time without any deadline. There is no fee charged by the protocol for unlocking collateral.

    Earning

    Another service provided by the platform is the earning facility, where the liquidity providers are given rewards for providing liquidity to the platform pools. The rewards are competitive, variable, and derived largely from the initial mint transaction fees.

    Unbound Finance Tokens (UNB/UND)

    The primary token of the platform is the Unbound Finance (UNB) token, used for governance purposes and user participation. It can be used to signal intent on important parameters and tuning the performance of the protocol. UNB is an inflationary token and users staking the it will receive rewards to offset the yearly inflation of 4%.

    The second token type on the protocol is the synthetics, minted from depositing LPT collateral and being withdrawn/burned once the borrowed amount has been successfully repaid. They don’t have a fixed cap and their actual amount in circulation will remain variable.

    UNB tokenomics
    UNB tokenomics (Image credit: Unbound Finance whitepaper)

    Unbound Finance – Supported Liquidity Pools

    Unbound Finance is currently available on testnet only, but supports the following:

    • Uniswap
    • Balancer
    • Bancor
    • Mooniswap
    • Curve.Fi
    • Kyber

    In the future, the liquidity pools of Dodo, Fulcrum, 0x, and Black Hole will be made available too.

    Here’s their tutorial on how to use to the Unbound Finance testnet.

    Conclusions

    The first decentralized orderbook-less exchange was Bancor. And since then, DEXs have exploded in numbers and currently compete well against their centralized counterparts. However, the users providing the liquidity and getting the LPT tokens are stuck with an asset, which ironically isn’t liquid by itself. Unbound Finance seems to be the likely answer to address the shortcomings of LPT tokens.

    Their further inclusion in the DeFi protocols and newfound uses will surely help boost liquidity and derivatives trading. The promise of no debt and no liquidation is another bonus point, as users can make use of the capital borrowed against collateral, without any fear of losing them. The perpetuity of the contracts allows the borrowed amount to be paid at any time.

    Even though Unbound Finance is in its infancy and available only on testnet. The concept and the premise are powerful. Its execution remains to be seen, but if successful, it will be the first of its kind to allow users to mint assets against liquidity pool tokens (LPTs). Hence, it’s likely to set the tone for the upcoming projects and the integrations within the existing ones.

    Disclaimer: Cryptocurrency trading involves significant risks and may result in the loss of your capital. You should carefully consider whether trading cryptocurrencies is right for you in light of your financial condition and ability to bear financial risks. Cryptocurrency prices are highly volatile and can fluctuate widely in a short period of time. As such, trading cryptocurrencies may not be suitable for everyone. Additionally, storing cryptocurrencies on a centralized exchange carries inherent risks, including the potential for loss due to hacking, exchange collapse, or other security breaches. We strongly advise that you seek independent professional advice before engaging in any cryptocurrency trading activities and carefully consider the security measures in place when choosing or storing your cryptocurrencies on a cryptocurrency exchange.

  • Collateral Pay ($COLL) ($COLLG): Payment gateway on Polkadot

    Collateral Pay ($COLL) ($COLLG): Payment gateway on Polkadot

    Collateral Pay is a decentralized payment system that merges decentralised finance (DeFi) with Traditional Finance (TradFi), enabling users to store, stake, loan, save, and pay with crypto.

    Since its inception, DeFi has aimed to give participants a better alternative to traditional financing. Reliance on centralized parties is being replaced with decentralized and transparent systems. This is achieved by building digital services in an open, secure, and permissionless manner.

    Additionally, the rise of  DeFi has been nothing less than tremendous. DeFi has grown exponentially and has open the world to new financial opportunities. A year ago, the monetary value locked in DeFi projects was $276 million. As of today, it is a whopping $43.6 billion in value.

    However, unlike fiat, it is a bit difficult to make use of crypto assets outside of their respective blockchains, as there is an absence of “gateways to the real world”. Collateral Pay is that gateway that facilitates this process by bridging DeFi and mainstream finance.

    Background

    Set to launch its marketplace this May 2021, Collateral Pay is an ambitious project supported by more than 12 well-known firms within the blockchain space. The team behind the project is composed of longtime veterans in marketing, blockchain technology, and finance. CEO and founder Chris Longden guarantees that the protocol offers users a much more tax-efficient opportunity.Collateral Pay is described as an ecosystem that works faster and better than any solutions in the market providing participants with an efficient implementation of blockchain.

    What is Collateral Pay?

    Collateral Pay is a Polkadot-powered decentralized payment method that merges DeFi with the traditional finance sector. The protocol enables users all around the world to store, stake, loan, save and pay. The crypto solution is a payment gateway accessed through an interoperable crypto wallet, granting access to spending power by using crypto as collateral at the point of sale.

    Furthermore, under Collateral’s unique algorithm, users are allowed to unlock and make use of their crypto assets without the need of selling them. Interestingly, crypto assets will be used as collateral against merchant payments by users for liquidity.

    Overall, Collateral’s secure ecosystem is supported by a P2P network of borrowers and lenders where all transactions are conducted on-chain. Here, lenders stake crypto assets in staking contracts and receive generous APYs in return. 

    This thorough process is quick and easy, giving users access to instant spending power where assets are used as collateral from the very first point of sale. Precisely, Collateral Pay automatically evaluates at the point of sale the specific amount of digital currency to be bound in a smart contract. This facilitates the payment, and once locked, the fiat equivalent is instantly sent to the seller, legitimizing the transaction.

    Ultimately, Collateral users will be able to leverage crypto assets autonomously, not needing loan drawdown facilities, saving time, and facilitating everyday crypto transactions. The platform is set to be a market leader through its efficient protocol that facilitates purchases in-store and online using crypto as collateral through its worldwide network of merchants. The platform aims to soon compete with prominent solutions like Worldpay, Visa, and Mastercard.

    By leveraging Polkadot’s cross-chain technology, Collateral is set to also seamlessly connect with Ethereum, Bitcoin, and Binance Smart Chain by Q3 2021, with the possibility of additional blockchain compatibility over time

    Decentralized Payment Gateway

    The platform offers clients several special tools, allowing users to enjoy their crypto experience in total security under Collateral’s ecosystem.

    Save

    Collateral Save provides clients with a continuous flow of passive income by staking digital assets in smart contracts that are lent to borrowers, where up to 60% of APY rewards are earned. Overcollateralized crypto assets are used to ensure the security of all staking contracts. Furthermore,  powered by chainlink, the platform’s oracles monitors all collateral crypto prices to ensure the collateral-to-value (CTV) level is maintained, protecting both borrowers and lenders.

    Pay

    Under Collateral pay, participants can pay for services by using the platform’s application or online. Users can simply scan a QR code and lock crypto as collateral. Then, merchants will receive funds directly from Collateral in fiat. The fiat will then be repaid at any given time to unlock the digital assets again.

    Loan

    Through loans, Collateral pay gives users the possibility to finance larger purchases, where sellers or merchants are not involved in the transaction. In general, these larger purchases tend to have the lowest CTV on the market. Hence, users simply have to select the amount they seek to borrow, then lock up the required cryptocurrency to receive funds in a native currency of their choice.

    Merchant

    The Polkadot-based protocol will provide merchants with a brand new market of crypto holders who once were unwilling to take the risk of losing potential upside. The platform will allow merchants to sell goods and services, and receive native currency payments safely within the Collateral pay ecosystem.

    Govern

    The blockchain platform will almost be entirely run by token holders who will have an active role in the protocol’s governance system and decision-making processes. 

    Collateral Pay Tokens ($COLL) and ($COLLG)

    COLL is the utility token for the Collateral protocol while COLLG is the platform’s governance token. Both tokens work hand in hand, as users can earn COLLG tokens by staking COLL tokens. This will allow them to participate in the platform’s governance and influence Collateral Pay’s future.

    Additionally, staking COLL also allows users to receive more COLL as token rewards from the product fees generated on the platform while liquid provider tokens can be staked to provide liquidity to the ecosystem and earn additional COLL.

    There is currently 2,800,000 COLL circulating in the market, with a total supply of 50,000,000 and an initial market cap of USD$1,120,000.

    COLL token uses
    COLL token uses (Image credit: Collateral Pay)

    Conclusion

    Collateral Pay is a unique payment method, that relies on the efficiency of the Polkadot ecosystem to successfully bridge DeFi and the traditional financing sector. Through this decentralized algorithm, users are sure to gain upon every crypto transaction, offering potentially 100% satisfaction to all customers. 

    Upon its imminent expansion, Collateral Pay is sure to disrupt the DeFi space and further blockchain adoption worldwide. The platform’s key features ensure a smooth and secure blockchain experience for all participants.

    Decentralised Finance (DeFi) series: tutorials, guides and more

    With content for both beginners and more advanced users, check out our YouTube DeFi series containing tutorials on the ESSENTIAL TOOLS you need for trading in the DeFi space e.g. MetaMask and Uniswap. As well as a deep dive into popular DeFi topics such as decentralized exchanges, borrowing-lending platforms and NFT marketplaces

    The DeFi series on this website also covers topics not explored on YouTube. For an introduction on what is DeFi, check out Decentralized Finance (DeFi) Overview: A guide to the HOTTEST trend in cryptocurrency

    Tutorials and guides for the ESSENTIAL DEFI TOOLS:

    More videos and articles are coming soon as part of our DeFi series, so be sure to SUBSCRIBE to our Youtube channel so you can be notified as soon as they come out!

    Disclaimer: Cryptocurrency trading involves significant risks and may result in the loss of your capital. You should carefully consider whether trading cryptocurrencies is right for you in light of your financial condition and ability to bear financial risks. Cryptocurrency prices are highly volatile and can fluctuate widely in a short period of time. As such, trading cryptocurrencies may not be suitable for everyone. Additionally, storing cryptocurrencies on a centralized exchange carries inherent risks, including the potential for loss due to hacking, exchange collapse, or other security breaches. We strongly advise that you seek independent professional advice before engaging in any cryptocurrency trading activities and carefully consider the security measures in place when choosing or storing your cryptocurrencies on a cryptocurrency exchange.