ParaSpace recently introduced an incentive program in which users’ actions and activities earn points that can be redeemed for ParaSpace governance tokens through an airdrop when the token launches. Moreover, users have the opportunity to receive a 300% boost in points accumulation until June 30, 2023. In this article, we will explain what ParaSpace is and what you can do position yourself for the airdrop.
ParaSpace is a cross-margin NFT lending protocol that enables users to borrow ETH, stablecoins, and supported ERC-20 tokens against various crypto assets such as blue-chip NFTs, ERC-20 tokens, and Uniswap V3 LPs. The platform allows NFT owners to lend and borrow ERC-20 tokens against a diverse array of non-fungible investments, while ERC-20 holders can earn yields through lending against NFTs.
According to DefiLlama, ParaSpace is the second largest NFT lending protocol in total value locked ($100.5 million) at the time of writing. It is also the sister company of Parallel Finance ($PARA), and both platforms have been audited by some of the top smart contract security firms such as Certik, Trail of Bits, and Veridise.
Does ParaSpace have a Token?
ParaSpace does not have a token yet, but has confirmed that it will launch a governance token in the future. Token holders will be a part of the platform’s decentralized autonomous organization (DAO).
How to Get ParaSpace Token Airdrop?
ParaSpace recently announced an incentive program where users’ actions and activities are rewarded with points that will be redeemed for ParaSpace governance token via airdrop when the token launches. Additionally, users can enjoy a 300% boost for earning points until 30th June, 2023. Here’s a step-by-step guide:
Connect Wallet to ParaSpace App
Connect your MetaMask or other supported wallets to app.para.space. The network is Ethereum Mainnet. You will need ERC-20 tokens or ERC-721 (NFTs) to interact with the protocol. Make sure you have enough ETH to cover gas fees.
Supply ERC-20 or ERC-721 Tokens to ParaSpace
If you own any blue-chip NFTs such as Bored Apes or CryptoPunks, you can supply them to the protocol to earn yields. Click the “supply” button on the main page.
Similarly, you can also lend out ERC-20 tokens to earn yields.
Liquidate NFTs
You can perform liquidations for both the user account and tokens held within the account in the Liquidation section.
Borrow ERC-20 Tokens
You can borrow ERC-20 tokens from the protocol, but you will first need to supply NFTs or ERC-20 tokens as collateral.
Stake ApeCoins ($APE) in Auto Compound Pool
You can stake your $APE in the ParaSpace ApeCoin Pool to earn high APY rewards. You can also borrow $APE to stake if you don’t have any.
Stake NFTs in Auto Compound Pool
For NFT owners with or without ApeCoins, you can stake your NFTs in the NFT Staking Pools to earn $APE.
Use Share Staking Pool
You can create $APE listings or NFT listings for the Share Staking Pool. This allows you to find other users to match with your assets for staking purposes and share the APY rewards.
When reviewing an airdrop, there are several factors to consider. First, the likelihood the project will even do an airdrop in the first place. Then, to look at how many tokens the project intends to allocate towards airdrop campaigns, as well as the difficulty in participating in their airdrop. It is also important to look at the utility of the token so that there will be an actual use and purpose in participating in the airdrop in the first place. Finally, a factor to consider when reviewing an airdrop is whether the airdropped tokens are subject to any lockup period.
Likelihood of Airdrop: ParaSpace has confirmed users’ actions and activities will be rewarded with points that will be redeemed for ParaSpace tokens via airdrop when the token launches. Additionally, users can enjoy a 300% boost for earning points until 30th June, 2023.
Airdropped Token Allocation: ParaSpace is still designing its tokenomics for long-term sustainability.
Airdrop Difficulty: It is recommended to engage in this activity only if you have experience borrowing and lending Ethereum NFTs. You will need ERC-20 tokens or ERC-721 (NFTs) to interact with the protocol. You will also need some ETH to cover gas fees.
Token Utility: The ParaSpace token will be used for governance of the lending protocol.
Token Lockup: Details of token lockup period is not yet available.
Opyn is an options trading platform built on Ethereum. It currently does not have a token, but the team announced on Discord that they will consider launching one as the protocol matures. As early users, we are in an opportune position to potentially earn massive token rewards. In this article, we will explain what Opyn is and what you can do to position yourself for the airdrop.
Opyn Airdrop Step-by-step Guide
Here’s how to receive a potential Opyn token airdrop:
Opyn is a DeFi options trading protocol that allows users to buy, sell or create options on ERC-20 tokens. It is powered by Squeeth, short for squared ETH, which is a derivative contract that tracks the index of ETH². This allows traders to make a leveraged bet on ETH, while also having protection from losses and not needing to worry about being forced to sell.
Does Opyn have a Token?
As of now, Opyn does not have a token yet. However, the team announced on Discord that they plan to launch one down the line as the protocol becomes more decentralized. Moreover, they also mentioned that most of the tokens will be distributed to the community, DAO, or in the form of grants. This means airdrop opportunities for early users of the protocol!
How to Receive Potential Opyn Token Airdrop?
The best chance to receive a potential Opyn token airdrop is to trade Squeeth (oSQTH token) or use deposit strategies on the platform. It is on the Ethereum mainnet, so you will need some ETH for trading and gas fees. Here’s a step-by-step guide:
Connect Wallet to Opyn
Go to opyn.co and connect your MetaMask or other supported wallets. Switch the network to Ethereum, and have some ETH ready.
Trade Squeeth (oSQTH Token)
Use ETH to buy oSQTH at opyn.co/squeeth. You can enter a long or short position, and it will tell how much your profit/loss and breakeven point is if ETH price goes up or down.
You can see all of your open positions at opyn.co/positions, and close them anytime.
Deposit on Crab USDC Strategy
You can earn yields on your USDC on opyn.co/strategies/crab. It is worth noting this strategy favors sideways market conditions for ETH, hence its name.
Deposit on Zen Bull ETH Strategy
You can earn yields on your ETH on opyn.co/strategies/bull. This strategy favors low volatility markets where the price of ETH trends upwards.
Provide Liquidity on Uniswap V3 SQTH-ETH Pool
You can provide SQTH-ETH liquidity at Uniswap via opyn.co/lp. It gives you exposure to ETH 1.5x leverage, but you give up some of your Squeeth in exchange for trading fees.
Airdrop Review
When reviewing an airdrop, there are several factors to consider. First, the likelihood the project will even do an airdrop in the first place. Then, to look at how many tokens the project intends to allocate towards airdrop campaigns, as well as the difficulty in participating in their airdrop. It is also important to look at the utility of the token so that there will be an actual use and purpose in participating in the airdrop in the first place. Finally, a factor to consider when reviewing an airdrop is whether the airdropped tokens are subject to any lockup period.
Likelihood of Airdrop: Opyn doesn’t have a token yet, but the team mentioned that they will launch one as the protocol grows in the future.
Airdropped Token Allocation: The team mentioned that most of the tokens will be distributed to the community, DAO, or in the form of grants. This means airdrop opportunities for early users of the protocol!
Airdrop Difficulty: The steps are easy to complete, but it will require ETH.
Token Utility: Token utilities are unknown.
Token Lockup: There are no available tokenomics yet.
Sentiment is a lending and borrowing protocol built on Arbitrum. It does not have a token, but the team mentioned on Discord that they did not rule it out. As such, if the airdrop is confirmed, early users of the protocol can potentially earn massive token rewards. In this article, we will explain what Sentiment is and what you can do to position yourself for the airdrop.
Sentiment Airdrop Step-by-step Guide
Here’s how to receive a potential Sentiment token airdrop:
Sentiment is a liquidity protocol that enables undercollateralized borrowing and lending. This means that borrowers can create leveraged positions without the need for overcollateralization, which is the more common practice in DeFi. Despite providing capital efficiency and flexibility, the undercollateralized model is challenging in crypto due to the volatile nature of the market. In the event of a default, there is nothing to back the lenders’ fund.
Sentiment aims to solve this issue by assigning a proxy contract that holds the borrower’s collateral and borrowed assets. This means that the borrower never has custody of the loaned assets in their wallet, but they are allowed full control over deploying these assets, as long as it meets the requirements of the system’s risk measures.
Project Funding and Audits
In September 2022, Sentiment successfully raised $2.4 million in a seed funding round led by Archetype Ventures, with participation from Castle Island Ventures, Maxtriport Ventures and numerous angel investors.
Sentiment’s smart contract code has been reviewed and audited by Web3 security firms Arbitrary Execution and Sherlock. Additionally, the team is insuring the first $10 million of total value locked (TVL) on Sentiment in the case of any smart contract vulnerabilities.
Does Sentiment have a Token?
As of now, Sentiment does not have a token. However, the team mentioned in Discord that they have not ruled out the possibility of a token launch. Additionally, DefiLlama has listed Sentiment as one of the tokenless protocols that may have an airdrop.
How to Receive Potential Sentiment Token Airdrop?
The best chance to receive a potential Sentiment token airdrop is to interact with the protocol. On-chain activities are essential to be included in the snapshot for the airdrop. Here’s a step-by-step guide:
Click “Mint A Margin Wallet” on the top right side of the screen. You will need some ETH to cover gas fees.
Deposit Assets on Your Account
Once you set up your wallet, you’ll see your account assets and debt on the main page dashboard. You can deposit some stablecoins, WBTC or ETH to begin using the protocol.
You can borrow and repay tokens at arbitrum.sentiment.xyz/borrow. There is a health factor which shows the safety of your deposited assets against the borrowed assets and its underlying value.
When reviewing an airdrop, there are several factors to consider. First, the likelihood the project will even do an airdrop in the first place. Then, to look at how many tokens the project intends to allocate towards airdrop campaigns, as well as the difficulty in participating in their airdrop. It is also important to look at the utility of the token so that there will be an actual use and purpose in participating in the airdrop in the first place. Finally, a factor to consider when reviewing an airdrop is whether the airdropped tokens are subject to any lockup period.
Likelihood of Airdrop: Sentiment does not have a token, but the team mentioned on Discord that they did not rule it out.
Airdropped Token Allocation: There are no token distribution information yet.
Airdrop Difficulty: You will need some ETH on your Arbitrum wallet to cover gas fees. Other than that, the tasks are relatively straightforward.
Token Utility: Token utilities are unknown.
Token Lockup: There are no available tokenomics yet.
Hunting for crypto airdrops is a great way to make free money. Some people have made as high as $10,000 from the Aptos token airdrop. If you missed it, Quai Network is another upcoming project with airdrop qualifications happening right now. Let’s take a look at what Quai Network is and what you can do to receive their token airdrop before it’s too late!
Quai Network ($QUAI) Airdrop Step-by-step Guide
Here’s how to receive a potential Quai Network ($QUAI) token airdrop:
Quai Network is a decentralized network of multiple proof-of-work (PoW) blockchains running in unison. These blockchains have native interoperability, allowing for cross-chain transactions and messages. It is also fully EVM compatible, allowing any Solidity contract to be ported and deployed.
Quai Network provides a novel approach to blockchain scaling, different from parallel processing chains such as Aptos and Sui. It aims to maximize the energy efficiency of PoW by introducing the concept of modularity.
Proof-of-Work 2.0 (PoW2)
Quai Network sought to improve upon the PoW consensus mechanism by addressing its environmental concerns. For the longest time, Bitcoin’s PoW algorithm has been infallible, but it also consumes massive amounts of energy. And it will continue to rise as mining difficulty increases after every Bitcoin Halving event. This is why Ethereum switched to proof-of-stake (PoS).
But Quai Network believes that PoS is inherently centralized due to the amount of money it requires to be a validator, creating a gap between the validator “class” and everyday users. Therefore, Quai Network has introduced an upgraded version of PoW called Proof-of-Work 2.0 (PoW2) where hash power can be reused to secure multiple chains. This is achieved by utilizing a novel combination of merged mining and sharding, reducing computational cost while allowing the network to scale more efficiently.
Merged Mining
Merged mining is the process of securing multiple blockchains with one miner, allowing miners to earn rewards in multi cryptos without having to switch between networks or use additional hardware. It was first conceived by Satoshi Nakamoto in the Bitcoin white paper, in which a completely seperate blockchain could share CPU power with Bitcoin, inheriting the same security and decentralization of Bitcoin without requiring dedicated miners.
Quai Network uses this concept, but instead of having Bitcoin as a parent chain, it has its own parent chain (the Prime Chain) which secures the many other chains beneath it by sharing hashrate. This improves throughput over monolithic chains such as Solana without the need for layer-2 solutions. Moreover, Quai Network is horizontally scalable, which means additional chains can be added to meet network demands. This is possible because of their multi-chain architecture.
Multi-Chain Architecture
Quai Network’s architecture makes use of sharding by dividing a single blockchain into multiple smaller and faster blockchains to improve network performance, similar to Ethereum and Polkadot. Its network is divided into a hierarchical structure of three different types of chains. At mainnet launch, Quai Network will begin with the single Prime Chain, three Region Chains, and nine Zone Chains.
The Prime Chain is at the core of the entire network, utilizing a hashing algorithm that is shared across all subordinate chains (Region and Zone). It aggregates and settles state transitions across the network, which means miners are required to mine the Prime Chain to keep the blockchains functional.
However, it has the highest mining difficulty, which means it has the slowest throughput (one block every 15 minutes). Therefore, it is not ideal for simple transactions and DApp activities. It is mostly for use in situations where the whole network is being addressed and securing the network.
Region Chains
There are three Region Chains at mainnet launch: Cyprus, Paxos, and Hydra. These chains have lower mining difficulty, thus a higher throughput than the Prime Chain (one block every 5 minutes). These chains handle lesser network interactions that are not necessary to address the entire network. They can also interact natively on the network, but each require unique mining power. Therefore, a miner can only mine a single Region Chain at a time, in addition to the Prime Chain.
Zone Chains
At mainnet launch, each Region Chain will have three Zone Chains under it. These Zone Chains have the highest throughput (one block per 10 seconds) and TPS capacity, making them ideal for regular transactions and contract interactions. As such, most activity on Quai Network will occur on Zone Chains. They are also able to interact with other Zone chains, even those under different Region Chains. But similar to Region Chains, miners can only select one Zone Chain to mine.
Coincident Blocks
Coincident Blocks tie the whole hierarchal structure together, linking all chains which enables cross-chain state transfers and periodic pegging of all chains to the Prime Chain’s total work. These blocks allow the entire network to inherit the same security of the Prime Chain, governed by three rules:
All Prime blocks must contain a Region and Zone block.
All Region blocks must contain a Zone block.
Zone blocks can be mined asynchronously without being included in a Prime or Region coincident block.
Basically, a Coincident block occurs when (1) a Prime, Region, and Zone block are confirmed at the same time OR (2) when just a Region and Zone block. Each time a Coincident block is mined, all blocks since the last coincident block are then confirmed by the Region Chain, continuing upwards until the Prime Chain — think of it as a roll call. Therefore, chains lower in the hierarchy can inherit the security of the Prime Chain while still conducting independent activities.
Who is the Team behind Quai Network?
Quai Network is developed by Dominant Strategies, a technology development company based in Austin. The company was co-founded in 2019 by Alan Orwick, Jonathan Downing, Karl Kreder, Yanni Georghiades, and Sriram Vishwanath, all of whom worked together in the Electrical and Computer Engineering department at the University of Texas. They co-wrote and published the white paper for Quai Network in December 2021.
Dominant Strategies has raised $10 million over two funding rounds — $8 million from Polychain Capital in March 2022 and $2 million from Alumni Ventures in May 2022.
Does Quai Network have a Token?
Yes. $QUAI will be used to ensure network security and as an exchange of value in the ecosystem. Their token supply is hard-capped but its total number is not yet determined. According to their tokenomics, 25% is distributed as “adoption incentives”, 3% for “community” and 0.5% for “testnet incentives.” This means token airdrop opportunities for early users of Quai Network!
How to Receive Quai Network ($QUAI) Token Airdrop?
Quai Network has a Social Media Rewards Program that will airdrop $QUAI tokens for engaging with their Twitter, YouTube, Reddit, TikTok, and Instagram. Compared to other projects, this is one of the easiest ways to earn free tokens.
To begin, join their Discord server and follow their Twitter account. Afterwards, you can check your rewards on the Quai Dashboard. If you have a Citizen role in their Discord server, you will have a 1.5x multiplier for your $QUAI rewards. You can obtain it by completing their survey here. It is easy to do if you have some degree of understanding of the project.
From here on out, Quai Network will reward you $QUAI tokens for your engagement with their social media platforms. As of now, only Twitter and Reddit rewards are available. YouTube, TikTok, and Instagram rewards will be available soon.
Liking and retweeting Quai Network’s Tweets that are less than seven days old (limited to twice a day).
Make a Tweet mentioning Quai Network. Original and insightful Tweets that are liked or replied by Quai Network will grant you additional rewards.
Reddit
Make a unique post in their channel (limited to twice a day).
Make a post about Quai Network in another approved crypto-related Subreddit (limited to twice a day).
It is worth noting that your account must have more than 50 post/comment karma, and the post must be approved by their team. Therefore, it will some time for your rewards to show if you make a post on Reddit.
Quai Airdrop Review
When reviewing an airdrop, there are several factors to consider. First, the likelihood the project will even do an airdrop in the first place. Then, to look at how many tokens the project intends to allocate towards airdrop campaigns, as well as the difficulty in participating in their airdrop. It is also important to look at the utility of the token so that there will be an actual use and purpose in participating in the airdrop in the first place. Finally, a factor to consider when reviewing an airdrop is whether the airdropped tokens are subject to any lockup period.
Likelihood of Airdrop: Quai Network’s token airdrop is now live!
Airdropped Token Allocation: According to Quai’s tokenomics, 25% will be distributed as “adoption incentives”, 3% for “community” and 0.5% for “testnet incentives.” This could mean token airdrop opportunities for early users of Quai Network!
Airdrop Difficulty: Quai Network has a Social Media Rewards Program that will airdrop $QUAI tokens for engaging with their social media accounts on Twitter, YouTube, Reddit, TikTok, and Instagram. This is one of the easiest ways to earn free tokens compared to other projects!
Token Utility: The $QUAI token will be used to ensure network security and as an exchange of value in the ecosystem.
Token Lockup: Participants of Quai Network’s Social Media Rewards Program will receive their $QUAI tokens upon Quai Network’s Mainnet Launch
Visa payment is proposing to use Ethereum and Smart Contracts as an Auto-payments platform in order to increase efficiency and speed. The company published a technical paper detailing its plan to develop an automatic payment system for self-custodial wallets on the Ethereum network. This would enable Ethereum users to schedule auto-payments from their own self-custodial wallets, making online bill payments possible via blockchains. This comes at a very critical time as Ethereum is currently in a series of network upgrades, dubbed “Ethereum 2.0“, that will drastically increase its network efficiency and capacity.
Visa is also innovating using Ethereum’s account abstraction — combining Ethereum’s user accounts and smart contracts into one account type which allows smart contract functions including pre-scheduled executions for recurring payments. This not only progresses blockchain technology but also brings real-world applications for the general public.
Limited Payment Options on Blockchain Networks
Existing blockchain infrastructures do not have the core functionality for auto-payments. In order to send funds to another address, all crypto users must generate a cryptographic signature via their private key. This is an example of push payments, where a payment transaction is manually triggered by the payer. It requires time and attention from the payer.
On the other hand, there is pull payments, where a payment transaction is triggered by the payee. Automatic online bill payments are an example of this. Most of our recurring payments today are done directly on mobile banking applications or charged on our credit/debit cards. It is very convenient as users do not have to manually settle bills every month.
Large blockchain networks such as Bitcoin and Ethereum support push payments but do not natively support pull payments. Additionally, users might be unwilling to hand over their private keys to a third-party custodian for monthly bill payments. Therefore, Visa has found a solution to enable pull payments on Ethereum, giving users full control over their scheduled payments.
Smart Contract Auto-Payments
Visa leverages the concept of Ethereum’s account abstraction to provide self-custodial wallets with automatic recurring payment capability. Instead of hard-coding validity conditions into the Ethereum protocol that applies to all transactions, validity conditions can be programmed in a customizable way into a smart contract on a per-account basis. This means that users would be able to create a whitelist of pre-approved auto-payments on a “delegable account.” This would not require the owner’s signature every time a payment is made.
Furthermore, Visa also believes account abstraction has other real-world applications beyond just recurring payment such as account recovery services, multi-owner accounts or even public accounts where anyone could make a transaction. But the technology is still nascent and a lot of research needs to be done around fundamental aspects important for digital payments such as security and scalability, which are crucial for crypto adoption.
Other payment competitors
As one of the world’s largest payment networks, Visa is actively getting involved in the crypto ecosystem, looking for ways to expand their capabilities within blockchain payments. This could be a huge step towards mass adoption as traditional financial leaders are seeing the potential of crypto in the long-term future of digital payments.
In fact, more and more global financial services are getting involved in the crypto ecosystem. Last week, PayPal is partnering with MetaMask to allow users to purchase ETH directly in their wallet via PayPal. On another note, Cash App, the number one finance app in the App Store, has also added support for transactions via the Bitcoin Lightning Network.
FAQ
What is Visa proposing?
Visa is proposing a technical paper detailing their plan to develop an automatic payment system for self-custodial wallets on the Ethereum network. This would enable Ethereum users to schedule auto-payments from their own self-custodial wallets, making online bill payments possible via blockchains.
How does Visa’s solution work?
Visa leverages the concept of Ethereum’s account abstraction to provide self-custodial wallets with automatic recurring payment capability. Instead of hard-coding validity conditions into the Ethereum protocol that applies to all transactions, validity conditions can be programmed in a customizable way into a smart contract on a per-account basis. This means that users would be able to create a whitelist of pre-approved auto-payments on a “delegable account.”
What are the benefits of Visa’s solution?
Visa’s solution would enable pull payments on Ethereum, giving users full control over their scheduled payments. It also has other real-world applications beyond just recurring payment such as account recovery services, multi-owner accounts or even public accounts where anyone could make a transaction.
What other companies are getting involved in the crypto ecosystem?
PayPal is partnering with MetaMask to allow users to purchase ETH directly in their wallet via PayPal. Cash App, the number one finance app in the App Store, has also added support for transactions via the Bitcoin Lightning Network.
What is the potential impact of Visa’s solution?
Visa’s solution could be a huge step towards mass adoption as traditional financial leaders are seeing the potential of crypto in the long-term future of digital payments. It could also open up more real-world applications for the general public.
The concept of the “Flippening” has been increasingly gaining traction in the crypto space. It refers to the hypothetical moment when Ethereum (ETH) surpasses Bitcoin (BTC) as the most valuable cryptocurrency by market capitalization. The Flippening is important because it would signify a major shift in the overall direction of the crypto landscape, signalling a change in investor sentiment and adoption patterns.
https://www.youtube.com/watch?v=0lQ8bz9QRBo
While the Flippening is not set in stone, there are compelling data that indicate it is coming, and sooner than you think… Here’s why:
The Case for Bitcoin
Being the world’s first cryptocurrency, Bitcoin has maintained its throne on the crypto market since its genesis block in 2009. It is often considered as the safest digital store of value by investors, with its limited supply structure similar to the scarcity of gold, hence its nickname “digital gold.” As such, Bitcoin is usually the primary choice of cryptocurrency for financial institutions looking to get involved. As far as mainstream adoption goes, Bitcoin has led the way so far.
However, Bitcoin’s Proof-of-Work (PoW) consensus model is highly energy-intensive, sparking criticisms of the network’s impact on the environment. Additionally, the usage of Bitcoin is only limited to exchanging and storing value. This is where Ethereum has much more to offer.
The Case for Ethereum
As the second most valuable cryptocurrency, Ethereum is designed to be used as the foundation of a decentralized, blockchain-based internet — an idea that is become known as Web3. Apart from exchanging and storing value, Ethereum introduced smart contract functionalities that allows developers to do all kinds of innovative and creative things on the network. This brought about a proliferation of financial products that have enabled a much broader range of investors.
Ethereum earned its nickname “digital oil” because it is a utility-based asset like oil, fuel or gas, and its value is largely dictated by supply and demand mechanisms. Similar to how the world’s global supply chain is fueled by crude oil, Ethereum lays at the heart of the Decentralized Finance (DeFi) space as well as GameFi and Non-Fungible Token (NFT) market. And as the Web3 landscape progresses, demand will increase as more and more people are recognizing the potential of a decentralized internet. It is only a matter of time when Web2 evolves to Web3, and Ethereum is at the centre of that.
Do “Ethereum Killers” Hinder the Flippening?
It is worth noting that Ethereum faces competition from other prominent layer-1 blockchains such as Aptos, Cardano, Solana, BNB Chain, Polkadot, and Avalanche. There is a trending “Ethereum Killer” narrative in which user adoption will be distributed amongst these blockchains instead of focusing on Ethereum only. However, most of these blockchains in fact depend on Ethereum, as one way or another they are associated with the network’s smart contract. As shown in the image below by Cryptowatch, all of the top layer-1 blockchains are closely correlated with Ethereum’s price action.
Comparing Market Share between Bitcoin and Ethereum
As of 11th January 2023, Ethereum’s market share increased by 3% among global crypto assets, signalling its dominance on the rise. According to Coinmarketcap, Ethereum’s market dominance is at 19%, valued at around $856 billion. On another note, Coingecko’s metrics were slightly different, indicating Ethereum’s dominance at 18.3%. But both aggregation websites show that Bitcoin’s market dominance is decreasing, from 40% to 38%.
It is unclear whether this trend will continue, but according to data sourced from Blockchain Center, the Flippening has been on an uptrend since July 2021. And we are nearly halfway for it to happen. It is also worth noting that Ethereum came closest to the Flippening in 2017, when Bitcoin’s market dominance’s dropped by 40.6% and Ethereum took over 32% of the market amidst the situation.
In reference to the data provided by Blockchain Center, there are also other metrics apart from market cap that determines the Flippening. As of now, Bitcoin is still by far superior in trading volume, which is a crucial metric for adoption usage. However, Ethereum has Bitcoin beat in active addresses, transaction count and volume, and total USD transaction fees.
Outperformance of Ethereum will be primarily driven by the strength of its post-Merge fundamentals. The upcoming Shanghai Upgrade will significantly reduce the risk and opportunity cost of staking ETH, which is likely to attract participation from more crypto users.
Key Takeaway
Despite Ethereum’s increasing adoption and market dominance, Bitcoin still reigns supreme in the crypto space. In fact, Bitcoin saw significant adoption in 2021-2022 from retail and institutional investors, public companies, and even countries. As of now, El Savador and the Central African Republic (CAR) have adopted Bitcoin as a legal currency. This is a monumental step towards mainstream adoption.
But that is not to say the Flippening will never happen — it is certainly a possibility. After all, both Bitcoin and Ethereum have different visions. Bitcoin aims to become the global reserve currency, whereas Ethereum aims to become the infrastructure of a global digital economy. The Technology Acceptance Model (TAM) applies to both assets, but it all comes down to supply and demand mechanisms. If demand in digital money is higher, then Bitcoin dominates. But if demand in utility-based asset in building out a decentralized ecosystem is higher, then Ethereum is generally favored.
The crypto industry had a tumultuous year in 2022, with coins tanking at the start of Q2 and never rallying, signalling the beginning of a crypto winter. To make matters worse, the collapse of Terra Luna and FTX led to a devastating contagion across the industry. Despite the challenges, we shouldn’t forget about the progress and achievements the industry has made. Here’s a brief recap of some of the biggest news in 2022.
Crypto’s Role in the Russia-Ukraine War (February)
During the Russia-Ukraine war, cryptocurrencies have been immensely valuable to Ukrainian refugees. Russian attacks have destroyed critical infrastructure, rendering many Ukrainians inaccessible to withdrawing money from ATM machines. Therefore, many Ukrainian refugees relied on digital currencies sent from relatives or donors abroad to purchase goods and services.
All that is needed for them to access their cryptocurrency wallets is a mobile phone and internet access, which was being provided by the thousands of Starlink satellite internet dishes provided by Elon Musk’s SpaceX at the time.
Feds Interest Rate Hike (March)
Despite Bitcoin reaching an all-time high of $69000+ in November 2021, what follows is a series of market decline. This is in part due to the U.S. Federal Reserve announcing its first interest rate hike in March to fight increasing inflation. As a result, the macro backdrop began to worsen, not only affecting crypto assets but also every other investment asset class. This also called into question Bitcoin’s reputation as an inflation hedge as Bitcoin itself started to trade in tandem with Nasdaq tech stocks, according to the New York Times.
Collapse of Terra Luna (May-July)
The collapse of the Terra Luna ecosystem in May 2022 was one of the most devastating black swan events in crypto history, wiping at least $60 billion off the market which triggered a dangerous domino effect across the industry such as the fall of several high-profile crypto firms, namely Three Arrows Capital, Voyager Digital, and Celsius Network.
Amid the crash, the UST algorithmic stablecoin, which was supposed to maintain a $1 peg via on-chain mechanisms with Terra’s native token LUNA, depegged, bottoming out at $0.006. This was caused by a massive continuous selloff on both UST and LUNA, resulting in a death spiral. Terraform Labs (TFL) developers and founder Do Kwon are facing multiple investigations as well as lawsuits into its collapse. (Canadian Pharmacy) As of now, South Korean authorities and Interpol have issued a warrant for the search and arrest of Do Kwon and his accomplices.
Recovery Plan of Terra Luna Classic (August)
As of now, the Luna Classic blockchain is managed and governed by the community after Terraform Labs (TFL) developers abandoned the chain in support of Luna 2.0. On August 26th 2022, governance was restored as citizens of Luna Classic could delegate, stake, and vote for the future of the ecosystem. Proposals and the associated implementations are being passed by the Terra Classic Decentralized Autonomous Organization (DAO).
Feds Sanction Tornado Cash (August)
On 8th August 2022, the U.S. Treasury Department imposed sanctions against Tornado Cash, a privacy-focused Ethereum mixing service that obscures the trail back to the fund’s original source. They claimed that Lazarus Group, a cybercrime group run by the North Korean government, has been using Tornado Cash to launder illicit funds.
Moreover, one of the developers for Tornado Cash was arrested in the Netherlands. The crypto community and privacy advocates bashed Netherlands authorities as the developer was simply writing code and had nothing to do with illicit activities. Ethereum co-founder Vitalik Buterin also criticized the move as he himself used Tornado Cash to make donations to Ukraine’s cause.
Ethereum Merge (September)
On 15th September 2022 at 06:42:42 UTC at block 15537393, the Ethereum Merge was completed. This meant a merger of the Ethereum mainnet execution layer and the Beacon Chain’s consensus layer, transitioning from the proof-of-work consensus mechanism to proof-of-stake. This landmark update brings major changes to the network, including a 99.95% reduction in energy consumption and a 90% cut in ETH issuance.
This is a significant achievement in the history of blockchain, allowing the Ethereum network to scale effectively as demand for Web3 and DeFi increase. Since Ethereum is the mother of all smart contract platforms, this could put Ethereum in a position to rival Bitcoin in adoption and even value.
Downfall of FTX and Sam Bankman-Fried (November)
On 11th November 2022, former FTX CEO Sam Bankman-Fried (SBF) filed FTX, FTX US, and Alameda Research for bankruptcy in the U.S. Once hailed as one of the top crypto exchanges, the sudden collapse of FTX came as a shocking blow to the entire crypto industry, setting off yet another contagion across the space. This affected 130 affiliated companies including several high-profile firms such as BlockFi, Genesis Trading, Grayscale, KuCoin, Gemini, Coinbase, Crypto.com, Sequoia Capital, and Galaxy Digital.
Apparently, SBF was misappropriating customer funds for his own benefits without customers’ consent and knowledge, conducting unethical flywheel schemes with Alameda Research. As a result, SBF had been arrested in the Bahamas, facing many criminal charges including securities fraud, money laundering, and campaign finance law violations. However, on 22nd Decemeber 2022, the disgraced FTX founder was released on a $250 million bail.
The Graph ($GRT) is a decentralized and open-sourced indexing protocol for blockchain data. Developers can build and publish different APIs, which are referred to as subgraphs, and perform queries through the GraphQL.
The platform can easily be used to look for any Ethereum data conveniently through simple queries. This addresses the common problem faced by a lot of other blockchain indexing platforms.
Blockchain applications face difficulties in keeping properties like finality, chain reorganization, and security in their process of fulfilling query tasks. These are also potential complications that applications usually address, but unfortunately make the process of querying time-consuming. The Graph has a workaround for this, and it is built exactly for that purpose.
Through “subgraphs,” The Graph indexes blockchain data, which users can access via the GraphQL API. According to the team, they will make it fully decentralized in the future, where more nodes will be involved and made responsible for maintaining the index.
The interest for the platform is steadily growing. In fact, they hit over a billion queries last June 2020. This was right at the time when decentralized finance was also gaining much institutional attention.
Yaniv Tal, co-founder and CEO of The Graph, together with his team, has created an indexing protocol meant to ease the process of accessing blockchain data. Tal and his co-founders had personally witnessed themselves how difficult it was to actually create new applications on the Ethereum blockchain.
Thanks to their experience on applications, they have found out that there is actually no decentralized indexing and querying softwares yet for blockchain. The problem back then was that developers had to come up with their own method to gather data and transform them from different sources.
The mission of the platform, which Tal and his team developed, is to help create applications that require no servers and make Web3 accessible to everyone.
How Does The Graph Index Data?
To index Ethereum-based data, The Graph uses the “subgraph manifest.” This refers to the description of a subgraph containing data about smart contracts, blockchain events, and the procedure in mapping event data with one another, before they are all kept in the platform’s database.
The flow of the data from transactions, subgraph manifests, and the database follows a particular structure. All of it begins with decentralized applications that are adding data to the Ethereum blockchain through the help of smart contracts.
All of that data will contain a record of all events and transactions up until the point that they have achieved finality. Then comes the Graph Node, which scans the whole blockchain database, gathers new data, and filters out those that are relevant to the queries that users make. To make the indexing much easier, it identifies every information that answers the questions from subgraphs.
GraphQL is the link between blockchain data and the application that a user wants to provide it with. But then again, it is through the Graph Node that users can deliver searches to the platform. After the whole process, users can finally look at the results of their query from their applications.
Basically, this is how the cycle of data query and indexing works in the platform. Users can refer to the Graph Explorer to scan through the subgraphs that are already in the platform. Each of these subgraphs have a playground where users can perform queries through GraphQL.
As of latest, The Graph can support the indexing of data coming from Ethereum, IPFS, and PoA networks. There are more networks that the platform will support in the future. But right now, they already have more than 2,300 subgraphs deployed, which developers for applications utilize. Some of these applications are AAVE, Aragon, Balancer, DAOstack, Uniswap, Synthetix, and many others.
There is a lot of institutional support for The Graph network. Michael Anderson of Framework Ventures, said in a press release that they “couldn’t be happier to back Yaniv and the team, and we look forward to helping grow the decentralized network when it launches.”
Hayden Adams of Uniswap also shared how useful the platform was for their analytics needs: “As a company we don’t manage or run our own databases. … Right now it’s pretty difficult to get historic data from the Ethereum blockchain in an efficient way.”
Their plan, apart from expanding to other blockchains soon, is to make it community-owned and governed in the future. This is also in response to the shift of many blockchain applications to a decentralized model of governance.
Key Roles
The platform’s whole ecosystem is composed of the following:
Consumers – These are the users who pay indexers for their searches. It could also be web services or any other software linked with The Graph.
Indexers – These are the nodes that maintain the indexing function of the platform.
Curators – Using GRTs, curators identify to the subgraphs the information that is valuable for the platform’s index.
Delegators – These are other stakers who delegate their GRT to existing indexers and earn a portion of the rewards run by nodes.
Fishermen – They check whether the network’s response to queries is accurate.
Arbitrators – They decide whether an Indexer is malicious or not.
The Graph Council
The Graph plans to decentralize its governance in the future. This will most likely be similar with MakerDAO and Compound. At the point of the protocol’s maturity, the team plans to launch a Decentralized Autonomous Organizations (DAO) that would allow core interest groups to participate in important protocol decisions.
Similar to other DAOs, the Graph Council, which will be the governing body for the technical parameters of the protocol, is also in charge of how The Graph Foundation allocates its native, utility tokens.
Among their basic functions include decisions on allocating grants and ecosystem funding, protocol upgrades, protocol parameters, and other emergency decisions.
GRT Token ($GRT)
The Graph Token, or $GRT, is its native ERC-20 based token, which can serve as a medium of exchange and the reward distributed to community participants who function as Indexers, Curators, and Delegators.
GRT also has a vesting and distribution schedule ranging between 6 months to 10 years depending on the bucket. Around 12.5% of the total token supply (i.e. 1,224,999,438 GRT) is expected to be in circulation at launch. However this figure is exclusive of stakeable but locked tokens.
GRT token distribution at mainnet launch
The Graph launched its mainnet at 9:00a.m. (PT) on 17th December 2020. Upon launch, GRT has been distributed to all of the participants of the public sale. Members of The Graph’s Curator Program also received an initial USD $1,000 worth in rewards, with the remainder to be distributed to them on a quarterly basis based on their contributions to the Program.
The Graph Foundation also received around 20% of the supply for the future development of The Graph. In particular, contributors who want to help building on The Graph can apply to their Grants Program, around 1% of the total supply of GRT will be allocated to support these participants in 2021.
Here’s a graph showing the GRT circulation over the course of 5 years from the date of launch (i.e. 17th December 2020 at 9:00a.m. PT)
5-year GRT circulation schedule by Bucket (Image source: The Graph)
Indexers that assisted during the Testnet phase have also ben rewarded between USD$10,000 to USD$100,000 in GRT as a reward for their contributions.
In addition, around 2% of the total GRT has been granted to several Education Programs and loans totalling around 2.5% had been made to independent ecosystem partners.
Indexer Staking
In order for users to stake in the nodes that operate the whole platform and sell their services in the query market, they have to lock their GRT. In return, they are given financial rewards. If the indexers work maliciously, like altering data intentionally, the GRT that they staked will be slashed.
Mainnet now live!
The Graph Network launched its main net on 17th December 2020 after 3 years of development! According to the team the mainnet launch includes the following components: Deployment of The Graph Network contracts on Ethereum mainnet, deployment of the GRT contract, distribution of GRT to takeovers, launch of the Bug County Program and new docs for network roles.
With the mainnet launch, Indexers will first stress test and improve performance before supporting real query volume, which will be upwards of 5,000 queries per second. Of course, there will be rewards for Indexers who will now begin earning on-chain indexing rewards and query fees.
Graph Roadmap: What’s next?
Now that mainnet has launched, The Graph will continue building. The Team has stated that the Graph Foundation will work on building a production-ready Graph Explorer dApp and Gateway that will support all network contributors.
The Graph is also open to any individuals or third-parties that want to build for the network and as mentioned previously, they an apply to the Grants Program or collaborate with other community contributors.
Conclusion
Looking at the current boom of the DeFi space, we can see how important it is for developers to be able to freely access blockchain data. Making the process faster and less difficult for everyone could potentially influence the growth of the space as well as its reliability, security, and capacity.
Everyone saw the need to create a bridge of information between applications and blockchain data. The Graph sought out to answer that.
And with the deployment of smart contracts that depend on user data, The Graph has proven itself to be easy to use, cost-efficient, and fast. The platform is seen as a promising tool to empower everyone in the community, especially those who are developing more use cases for 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
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.
The decentralized finance (DeFi) space has grown to include platforms in various sectors such as spot trading, derivatives, and futures. Interestingly, some networks such as Yearn Finance support yield farmers and liquidity providers through an aggregation service.
Instead of offering spot trading, lending, or borrowing functionalities, it allows users to deposit funds, then it distributes it based on projected returns and the risks involved.
However, this isn’t enough to drive meaningful DeFi adoption. Therefore, Yearn followed the partnership route to expand its ecosystem and to improve interoperability between DeFi systems.
In this article, we look at the most impactful partnerships in the Yearn ecosystem:
On November 3, 2020, Yearn’s creator, Andre Cronje, took to Medium to announce the coming together of his platform and Sushiswap. The connection between the two platforms meets as Sushi improves its automated market-making (AMM) outlooks while Yearn digs deeper into aggregating formulas. These qualities brought a need for cooperation between them, leading to:
A combination of development resources.
A rise in the total value locked (TVL) on each platform.
Working together to develop and launch Deriswap, a platform bringing together spot trading, derivatives, and futures trading.
Introducing Keep3r Network, an on-chain price oracle on the second iteration of Sushswap.
Additionally, liquidity providers on Sushi provide collateral for the Sushi money market.
Partnership with Cream Protocol
The DeFi aggregator platform partnered with Cream, a lending network similar to Aave, in developing the system’s second version. With the partnership, the Yearn and Cream team created Cream V2, which introduced or enhanced leverage and lending features. Notably, the new platform enables yield farming using leverage.
Additionally, Cream V2 acts as a springboard to power stable credit and yet-to-be-built lending functionalities. Apart from merging resources allocated towards development and seeing a rise in individual TVL, the partnership saw shares in Yearn Vaults qualify to provide collateral in Cream.
One feature added to Cream’s new version includes rotating multi-signature keys in order to improve deployment, iteration, and testing. Unchanged features include those that touch on governance and native tokens.
The partnership is rather a unique one. Why? It aims to bring out the best in each platform’s team. Therefore, each team continues with their previous journey but leans on the other if they need help.
Furthermore, Akropolis users can access Yearn and a host of other networks such as Cream and Pickle. In return, Yearn investors benefit from Akropolis’s investment strategies and a pool of institutional networks. The partnership between the two platforms brought with it improvements on Akropolis.
For instance, there was a development of new vaults, an institutional application, some strategies, and a rotation of multi-signature. In addition, Akropolis’s native token was upgraded to be able to track losses.
The PowerPool Partnership
PowerPool is a decentralized protocol accumulating governance strengths in systems built on the Ethereum blockchain. In short, it brings together governance tokens from a wide range of DeFi protocols, such as Compound and Balancer.
The partnership with Yearn Finance connected YFI, the governance token on Yearn, with PowerPool’s PowerIndex.PowerIndex provides a DeFi index inspired by distributed exchange-traded funds (ETFs). The index exudes meta-governance functionalities and contains eight tokens, including YFI.
Note that the meta-governance aspect rides on concentrating user tokens from different DeFi platforms into a single contract. Next, the tokens’ voting weight is delegated to a group consensus. Notably, the contract generates a token that its holders can use to decide the other tokens’ fate in the pool.
So, what does the partnership bring to Yearn?
Having a share of the index gives DeFi lovers a share in Yearn.
It increases participation in YFI governance issues.
PowerIndex supports swapping. Thus, anyone can exchange another platform’s token with YFI and vice versa.
In return, Yearn benefits from more liquidity. Additionally, pooling YFI helps stabilize its price.
The Cover Merger
Although Cronje formally announced the partnership on November 28, 2020, the two platforms have been collaborating since Cover’s launch. The marriage between the two opens doors to advanced features targeting optimization, among other aspects.
The partnership allows Curve to provide backstop coverage to products built on Yearn. Their coming together allows Cronje’s network to enjoy Cover’s range of coverage known for supporting multiple collaterals. Yearn can mitigate risks for users through vault coverage. That’s not all. Underwriting coverage on Yearn becomes more profitable.
Fortunately, the benefits aren’t one way. For Cover, it’s hoisted to expand its wings to unchartered money markets. Additionally, it’s empowered to seek a bigger share of perpetual coverage and other products in the market. However, components such as the native COVER currency remain intact.
This is another key partnership in the Yearn ecosystem. Its uniqueness emanates from the fact that it’s supposed to eradicate duplicate works among the two teams. Doing so lets each team and individuals within a team work on what they’re extremely good at.
As a result, Pickle will launch new features such as reward Gauges. Governing members on the Pickle ecosystem receive DILL tokens when they lock their tokens for governance-related purposes. DILL holders share Gauge performance, withdrawal, and deposit fees.
On the other hand, Yearn users, especially Vault depositors, are incentivized to interact with Gauges through Vault shares. The depositors also receive more rewards by setting aside Pickle tokens to receive DILL. (www.chronicpainpartners.com)
Others benefits originating from the partnership include:
A merger of the platforms’ TVL.
Pickle finds its way into the Yearn ecosystem.
Pickle enjoys Yearn’s security, among other features.
Pickle’s reward Gauges rake in incentives from Yearn depositors.
The two protocols’ teams work together on strategy creation and split profits from the strategies.
There’s an overall increase in rewards for users in both circles.
Conclusion
By expanding the Yearn ecosystem, Cronje and his team seek to build an inter-connected DeFi world. With everything connected to everything, DeFi adoption naturally sets in.
Apart from interconnection and adoption, the partnerships focus on, for example, reducing the duplication of roles within teams working on DeFi projects. This encourages the birth of new products and features to help drive growth in the space.
In the process, DeFi enthusiasts benefit from enhanced products and yields, which further encourage interaction with DeFi-focused systems.
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
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.
Duck Liquidity Pool ($DUCK) is a DeFi Market Maker protocol, developed by DuckDAO, one of the biggest cryptocurrency community that provides funding and marketing support to early-stage crypto projects.
The boom of decentralized finance (DeFi) in recent months has ushered in a new profit-making strategy for crypto traders, beginners and advanced alike. Decentralized exchanges (DEX) rely on liquidity pools to help power their market-makers. While the Duck Liquidity Pool is a new entrant in DeFi, it has already captured the attention of many users in the space thanks to its high APY and token burning model.
https://youtu.be/8MNKafDgW0o
What is the Duck Liquidity Pool?
The Duck Liquidity Pool (DLP) is DuckDAO’s own market maker. The funds that supply its pool came from the sale of pre-mined tokens and can be accessible in many other protocols and exchanges. In the meantime, projects that are supported by DuckDAO will be the first to be able to tap the pool. The ticker for the pool is $DUCK.
The unique feature that distinguishes DLP from others is its “unilateral burn” strategy, or the one-sided token burn model. It is designed to burn 50% of all earned rewards (more on this later).
The APY level for DLP is high and its suppliers can receive as much as 50% of the profits from market making, airdrop of incubated project tokens, as well as non-fungible token (NFT) campaigns. Such a feature enables yield farmers the ability to earn profit by just providing liquidity to DuckDAO’s market maker.
To participate in the DLP, users have to lock their cryptocurrency holdings by depositing their funds in the pool. In return, they receive DUCK tokens as a reward for supplying funds to the pool.
DUCK token is the DuckDAO’s native utility token, which also powers the incentive model for the Duck Liquidity Pool. The token has the following use cases:
Yield farming on Uniswap pools – Staking tokens help contribute liquidity to DUCK and DDIM pools. For this, they earn profit through DLP.
Reward token for market-making profit – Half of the profit from the market maker is returned to the community who belong to the liquidity pool. If the performance of DLP is good, the profit for the yield farmers grows in proportion as well.
Project token airdrops
Non-fungible token as reward
Deflationary Farming: “One-Side-Burn”
This is touted by the team as “Yield Farming 2.0,” which is designed to support a deflationary, unilateral burning of tokens. To understand how this works, we must first look at how the current yield farming mechanism works.
The Usual Scenario for Most Liquidity Pools
Commonly, yield farming pools in the DeFi space look very advanced for the average trader. Not only does this create a psychological barrier to entry, but it also makes profit-making a little more difficult for someone new to yield farming.
Another issue that traders face is the inflationary structure of the incentive mechanism in most liquidity pools. This is because, in order to provide rewards to yield farmers, mined tokens have to be released into the market. This model isn’t designed for long-term effectiveness since with more reward tokens in supply over time, we can expect its value to depreciate as well.
Duck’s Unilateral Burn
$DUCK, on the other hand, is designed to support long-term yield farming strategies. Even beginners on liquidity pools can just stake and earn a part of the profit that DuckDAO’s market maker gets.
$DUCK One-Side-Burn Deflationary Model (Source: DuckDAO website)
One-Side-Burn is a deflationary model that is designed to burn 50% of the carry pair as soon as the liquidity provider decides to cash in a portion of his stake.
What happens in such a situation is that users lose one side of their liquidity as the tokens are burned. And when someone decides to exit the pool completely, his entire liquidity is also burned and further lowers the DUCK tokens in supply.
While this model may seem counterintuitive for profit-earning at first, over-time, the value of the tokens is going to be greater than what it was when a user has staked in the pool. That is why DLP’s design appears to be much better in the long run.
Duck Liquidity Pool Market-Maker Models
Project Token Purchase
DLP purchases tokens in order to facilitate buy and sell liquidity.
DeFi has enabled the birth of new profit-making strategies for traders in the space. However, whether existing liquidity pools can support long-term yield farming models is another question altogether. DLP’s model, which is powered by the ‘unilateral burn’ design, appears to be more promising.
To be fair, like many other pools, the profit it can generate for stakers is also influenced by the number of users joining the pool. This is why it is important to look into that as well before deciding to lock your tokens and supply liquidity to the pool.
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
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.
Taipei Blockchain Week, the largest Web3 event in Taiwan, was held last week from December 12-17, 2022. Similar to TOKEN2049 Singapore, the event features a series of keynotes, panel discussions, workshops, and meetups with some of the leading developers and entrepreneurs in the Web3 industry. Speakers of the event included core team members from Avalanche, Solana, Filecoin, Moongate and many more, where they talked about the real-world applications of blockchain technology and the future landscape of crypto.
Moongate, in particular, has introduced an end-to-end solution for brands and businesses to create customized NFTs for ticketing and memberships. In fact, Moongate is the official ticketing partner of Taipei Blockchain Week, having issued 4000 tickets for the event’s attendees. Despite the NFT industry getting a bad rap, Moongate helps bring meaningful and productive application of Web3 into the Web2 world with real utility NFTs that can greatly benefit everyday retail consumers. Let’s take a look at what they have to offer.
What is Moongate?
Moongate provides an end-to-end, no-code solution for brands and businesses looking to transform their user engagement experience via Web3. Its user application covers (1) membership and loyalty programs, (2) events and conferences, and (3) NFT projects. All customers will be able to own their membership as NFTs which unlock token-gated rewards and access.
CEO of Moongate Jonathan Mui told Boxmining that they have helped brands, businesses, conferences, and sports leagues with NFT-empowered memberships and tickets. So far, Moongate has 30+ live programs, 50+ ecosystem partners, and 5000+ end customers. Notable partners include Polygon, SimpleHash (backed by Y Combinator), DTTD (backed by Animoca Brands), Limewire and many more.
How Does Moongate’s App Work?
Moongate’s User App is very easy to use, catering to both Web3 and Web2 users. You can create an account, which is also your crypto wallet, with your email, phone number or social media account. For experienced Web3 users, you can instead use your self-custodial wallet such as MetaMask to sign up.
To onboard Web2 users more easily, there won’t be any traditional Web3 private key management such as seed phrases. Moongate understands that with traditional private keys, users can never get their NFTs back if they lose their key. This can be a problem for most Web2 users who are not used to Web3 interfaces.
Instead, Moongate is collaborating with some of the top endpoint security solutions to implement a next-gen key management architecture. Its security infrastructure involves two independently-created mathematical secret shares, eliminating the single point of failure for traditional private keys. The wallet is still non-custodial as users have full control over their NFTs but it also allows them to restore their account safely if they delete the App or lose their phones.
User App Interface
In the App, users can enroll in membership programs via one-click join/redemption. Users can view and claim exclusive benefits tied to their NFT memberships. Tiered rewards can be earned, and benefits will increase overtime with increased spending/usage. Moreover, users can earn token rewards by completing promotions, and use tokens to claim extra rewards across partnered brands.
Mui said that it is important for Moongate to integrate blockchain technology with legacy systems so that it would require less steps and create less friction for Web2 users to get onboard while reaping the benefits of Web3. Since most retail customers are accustomed to Point of Sale (POS) systems, Mui said that adopting some of the Web2 approaches can help make their product scalable and viable.
Merchant Setup for Moongate’s App
Apart from retail customers, brands and businesses with no Web3 knowledge can also easily manage their Moongate account. NFT projects can keep track of the holders engagement for future rewards and airdrops, without requiring holders to reveal personal information.
NFT Design and Minting
Users can create, deploy, and mint their own NFTs without any coding knowledge. Moongate’s smart contract builder is a simple drag-and-drop deployment. It supports dynamic NFT integration and can be issued on multiple chains. Moongate’s mint site builder provides customized storefront design with personalized information. Users can checkout with fiat or crypto via Web2 social logins or crypto wallets.
No-code dashboards are available for merchants and projects to set the parameters of online or offline token-gated content, access, and discounts across different tiers of membership. There are also key applications on offline discounts, exclusive events, and online e-commerce stores. Additionally, off-chain data can be captured to support corresponding changes to dynamic NFTs.
Moongate has a one-scan solution to complete real-time, on-chain NFT ownership verification across multiple blockchains including Ethereum, Polygon, and Solana. Users will have their own ephemeral QR code for merchants to scan and verify as it supports whitelabel integration with other apps or third-party scanners. Moreover, it is also compatible with near-field communication (NFC) “phygital” gateways, which are essentially physical cards that hold the QR code verification.
Moongate provides data analytics for merchants and projects to monitor membership usage in real-time and post-attendance. It can integrate with traditional technology stack such as POS and CRM (Customer Relationship Management) marketing software. The portal also displays API for data integration with other sites, supporting tracking of spending credits.
Moongate introduces a new paradigm in customer loyalty while maintaining positive business impact. It changes how businesses can build better branding and how customers approach purchasing goods and services.
Since customers can truly own their NFT membership, they can also choose to sell the NFT along with all the rewards stored in it, as the NFT is a transferrable token. That way instead of “spending”, customers are actually investing because they are creating value for their NFT. This also helps businesses better connect with the next generation of customers, lowering their Customer Acquisition Cost (CAC). After all, that is what Web3 is all about — ownership by users.
Ledger, one of the top hardware wallet providers, has announced the launch of its new Ledger Stax wallet in partnership with Tony Fadell, co-creator of the iPod and iPhone. This is a significant initiative as Fadell being one of the world’s foremost tech engineer is stepping in to bring clarity and confidence to owning digital assets following the collapse of FTX.
Pre-order your Ledger Stax Wallet here!
Key Features of Ledger Stax Wallet
Fadell realized that existing hardware wallets are difficult to use for mass consumers. Therefore, he drew inspiration from his iPod design to bring a more user-friendly experience for wallet users.
Ledger Stax resembles a small smartphone and has a monochromatic E ink display which covers the front and curves around the spine. That way users can easily view complete transaction details as well as their NFT collections even when the wallet is off. This works in conjunction with integrated magnets, allowing multiple Stax devices to stack, hence its name. This is particularly useful for Ledger owners who have different portfolios since they can look at the labels displayed on the spine, like books on a shelf.
Stackable Ledger Stax wallets with displayable screen on the spine (Source: Ledger)
Users can store more than 500 cryptocurrencies or NFTs on Ledger Stax. Developers are also planning to allow users to explore Web3 applications through the Ledger Live app. Users can connect the Ledger Live app on (1) laptops via secure USB-C or (2) smartphones via bluetooth. This new user interface will enable clear and intuitive interaction for all mainstream users.
Ledger Stax also has good energy efficiency and supports wireless Qi charging. Its battery can last as long as few months with a single charge.
How to Get Ledger Stax Wallet?
Ledger Stax is now available for preorder at $279 and will begin shipping by the end of March 2023. It will also be available from select retailers such as Best Buy in the U.S. Those who purchase the wallet will also receive an Infinity Pass, which provides users with a free utility NFT.
Additionally, a Ledger Stax NFT Bundle is available to mint on [Ledger] Market for 0.22 ETH to redeem a free Ledger Stax device. It also unlocks access to exclusive NFT artwork from Ledger’s network of hand-picked artists. However, Genesis Pass holders and PREMINT Collabs have special mint-priority, and there are only 10,000 bundles available.
Key Takeaway
“Not your keys, not your crypto” — there is a great risk of losing all your crypto if you park it on a centralized exchange. Hardware wallets are great self-custodial solutions because only you have control over your funds. But the problem is it can be quite daunting to operate one, especially for beginners.
Ledger Stax will revolutionize this by bringing the familiar user experience of smartphones into hardware wallets. This is a big step towards a decentralized financial future as more people are opting for self-custodial solutions. If you are interested in other hardware wallets, feel free to check these out:
Pre-order your Ledger Stax for only $279 and get it by end of March 2023!
What is the Ledger Stax wallet?
The Ledger Stax wallet is a new hardware wallet developed in partnership with Tony Fadell, co-creator of the iPod and iPhone. It has a unique and innovative design in the style of high-end Samsung cell phones, and lets users view their NFT collections even when the wallet is off.
When will the Ledger Stax be available for sale?
Ledger Stax is now available for reorder at $279 and will begin shipping by the end of March 2023.
What features does the Ledger Stax offer?
The Ledger Stax wallet is an easy-to-carry device about the size of a credit card, which allows users to store more than 500 cryptocurrencies or NFT collections. It also features an E-Ink touchscreen for viewing NFT collections, and a battery that can last for weeks or even months with a single charge.
Are there any incentives for purchasing the Ledger Stax?
Yes, those who purchase the wallet will be eligible for various prizes, such as a “Magnet Shell” protective case and an NFT from the “The Art On Ledger Stax Collection.”
