Lưu trữ cho từ khóa: CryptoCurrency

Bitcoin

Bitcoin store of value narrative ‘being decimated’, Tezos co-founder says

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Kathleen Breitman, the co-founder of the Tezos blockchain, says Bitcoin’s narrative as a store of value is “being decimated” amid the latest crypto crash.

The Tezos (XTZ) co-founder shared the viewpoint in an interview with CNBC’s ‘Squawk Box’ on Aug. 5, commenting on the crypto market reaction as Bitcoin (BTC) plunged to under $50,000.

According to Breitman, Bitcoin’s price plunged as investors and traders reacted to broader market jitters. Catalysts to this flip in sentiment include fears of a potential global recession, with the crash in Japan’s stocks exacerbating the situation across the market on Monday.

Tezos co-founder comments on BTC sell-off

Analysts also attributed the market’s tumble on Aug. 5 to geopolitical tensions and the Federal Reserve’s recent interest rate decision. In crypto, rumors of massive selling by Jump Trading injected new downside pressure.

It’s the crypto reaction that has Breitman not mincing her words about BTC as “internet pretend money.”

“Basically, what we are seeing is something similar to what happened at the beginning of COVID, where folks get a sense of something that looks like a recession and the first thing they decide to sell is their internet pretend money,” Breitman said.

Not a ‘store of value’

Breitman added that BTC is getting “a bit of a shellacking” as it remains a largely speculative currency and that most holders still don’t see it as anything more.

“It’s good to acknowledge that it’s an experiment,” Breitman told CNBC’s Andrew Sorkin and Joe Kernen. As for Bitcoin being a store of value, the Tezos co-founder said she’s yet to buy into that narrative, which she added was a meme currently “being decimated.”

Despite this view, Breitman says Bitcoin is a core asset in the market and will grow as it becomes more mainstream. BTC has core utility and does not need to be a store of value asset to be useful, she added.

Bitcoin is down double digits

While the digital gold has rebounded slightly to above $50k, its value remains 17% down in the past 24 hours and more than 28% in the red over the past week. Elsewhere, it’s a sea of red for crypto as 24-hour liquidations rose to over $1 billion.

Notably, Bitcoin and stocks’ declines contrasted with the performance of gold, which largely held its value as the market got smashed.

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Theo Crypto News

DeFi

Worldcoin’s approach to decentralized identity: Privado ID CPO weighs in

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Worldcoin, the ambitious brainchild of Open AI CEO Sam Altman and two of his partners, has been marred by controversies since it debuted in late July last year. 

The idea was simple: establish a global digital ID system, introduce a global currency, in this case, Worldcoin token (WLD), and develop the World App, a universal wallet that leverages World ID to facilitate payments.

When the project launched, the initial reception was divided. On the one hand, privacy advocates and regulators across several jurisdictions argued that collecting biometric data on such a large scale poses many risks. On the other hand, the project managed to draw in over 2 million users who signed up for a digital ID during its initial rollout phases.

The regulatory pressure prompted Worldcoin to implement the Secure Multi-Party Computation system that encrypts the scanned iris data into secret shares to be distributed among multiple parties in a bid to address concerns about data centralization.

At the time of publication, the project was banned in some countries, while others were investigating its data collection practices. 

Despite the mixed reception, the project had 119 ‘orbs’ – a spherical device that scans a user’s iris—across 18 countries within the first few months and now plans to expand that number to 1500 globally. Meanwhile, the World App has raked in over 10 million users.

While Worldcoin’s approach to decentralized identity shows promise, there are ongoing debates about whether it truly tackles the broader issues at play. 

Speaking to crypto.news, Sebastian Rodriguez, chief product officer at decentralized identity platform Privado ID, said that while Worldcoin’s use of cryptographic techniques is commendable, the broader issues of governance and transparency remain unresolved.

What are your thoughts on Worldcoin’s biometric data collection efforts? 

Worldcoin has recently announced that they will delete all the biometric data and distribute it in a MPC network. This removes one of the major concerns about data concentration from the technical point of view. Worldcoin also uses nullification to protect the user against cross-application tracking, so technically speaking, we consider the new Worldcoin approach technically secure.

Do you see any shortcomings with the project’s current approach to security?

Security is more complex than its technical component – it’s a property of the entire solution (technology, people, processes and power structures). In our opinion, Worldcoin is using many of the right cryptographic primitives to achieve privacy and security, but they are not following the principles of decentralization and transparency that most Web3 projects embrace. They have made efforts to open source most of their technologies (including hardware to a certain degree), but the governance of the project, its long-term goals and tokenomics are still a source of concern. 

Basically, their model only works if they become a monopoly for proof of uniqueness – this is a type of credential (when it’s based on non-standard biometric templates) that can only be provided by a single provider. It’s not based on national ID documents (that would allow for multiple providers of Identity Verification) but on a non-standardized biometric hash database controlled by a single private organization.

Worldcoin claims that Secure Multi-Party Computation will enhance data privacy and security by distributing biometric data across multiple parties. Do you believe this approach can effectively address the ethical concerns?

No. Technical security should never stop the ethical debate around the implications of a unique identifier that can’t be changed for my entire life. This is an identifier that I can’t deny to have; I can be forced to present, and I can’t change. The implications are deep and, in some cases, dangerous.

Despite the controversies, Worldcoin has garnered considerable attention. What do you think is driving its appeal?

Every tokenized project is susceptible to speculation, and Worldcoin is no different. They are also linked to Sam Altman and OpenAI, which has a “winner” aura that, in my opinion, has attracted controversy and investor interest at the same time. There is a sentiment that OpenAI is investing in a problem they are helping to create (synthetic identities) that is both ethically reprehensible and economically attractive.

Can identity verification systems be enhanced in security and efficiency while minimizing reliance on biometric data? 

Biometrics is at the core of all identity systems, even National ID and Passports. It’s not about the technology, but about who is the source of trust and how centralized it is. We believe that governments should play that role, and with projects like EUDI [the European Unitons’s digital identity solution] it’s going to become more available for many citizens. Some alternatives are based on networks of trust (social graphs, p2p vouching, etc.), but none of these has seen mass adoption so far. 

From your experience at Privado ID, what are the key considerations for creating identity solutions that align with international data protection standards?

We advocate for open ecosystems of interoperability. Centralizing everything in a single identity provider is always tempting (faster, easier, simpler) – but we need to allow for a healthy open ecosystem of competing and local identity providers that avoid concentration of power, provide choice and alternatives, and can also adapt to local regulations. As an example – it is very tempting to add Age Verification to our Google or Apple accounts and have the verification done by our phones or e-mail accounts. But that will give these companies huge databases of every place where we use these credentials. It will probably also not be fully compliant to every single local regulation about the topic. Having an ecosystem of Age Verification providers with interoperable credentials is better.

How does Privado ID approach the challenge of creating open ecosystems and ensuring interoperable credentials within its platform?

We want to provide the underlying infrastructure to build and support open ecosystems of interoperable credentials. We are not in the business of providing these credentials – we aim to provide identity providers and users the best channels to exchange and monetize credentials in the most privacy preserving way and with the best user and developer experience. We see ourselves as a marketplace of trusted data where consumers (applications) and providers (credential issuers) can connect, integrate and make business, all while respecting the user’s privacy and right to consent.

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Theo Crypto News

Altcoin

Hackers use stolen funds to buy ETH amid price crash

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As the price of ETH dropped over 20% on Aug. 30, hackers were seen leveraging the opportunity to buy the dip using stolen crypto.

According to blockchain security firm PeckSheild, the perpetrators behind the 2021 hack on Binance Smart Chain-based defi protocol Pancake Bunny bought 2.922K ETH for 7.8M DAI.

The defi protocol was exploited in a 2021 flash loan attack, in which $46 million worth of its tokens were siphoned off and swapped for tokens like BNB, USDT, and DAI. The attack caused the price of the project’s native token, BUNNY, to crash.

Last month, the exploiter’s address returned from dormancy and transferred 1,002 Ether to crypto mixer Tornado Cash. The service allows bad actors to make tracing of funds difficult for authorities. 

At the time, the attacker’s wallet reportedly held $11.4 million of Dai (DAI).

Similarly, the attackers behind the $200 million hack of cross-chain token bridge Nomad have also acquired ETH, according to analytics firm Lookonchain.

Nomad Bridge allowed users to send funds across multiple blockchains. The attack stemmed from a vulnerability in the smart contract where tokens sent via the bridge are initially deposited. 

On August 30, 2024, the attacker spent 39.75 million DAI to acquire 16,892 ETH before moving them through Tornado Cash in a series of transactions for 100 ETH each. In total, the attacker moved approximately 2400 ETH to the privacy mixer.

Over the years, the attacker has moved the stolen assets on multiple occasions, with over $1.5 million laundered via Tornado Cash in January 2023. Prior to that, $7.5 million was moved to an unknown address.

As of publication time, one of the Nomad bridge attacker’s wallets held just over 14,500 ETH valued at over $33 million.

The recent moves come as ETH recorded its largest drop in 2024, presenting a lucrative buying opportunity. According to analysts, the cryptocurrency has lost key support levels, and the price is expected to dip even further. 

The price drop came as the broader crypto market saw over $1 billion in liquidations recorded in 24 hours.

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Theo Crypto News

Altcoin

Bitcoin slumps under $50K, losing 12% as broader financial markets in turmoil

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Bitcoin experienced a sharp decline on Aug. 5, plummeting to $49,221 after maintaining a level of around $58,350 for almost two hours.

At the time of writing, Bitcoin (BTC) had a daily trading volume of $79.5 billion, while its market cap had fallen to $1.04 trillion. The crypto asset is still 28.2% down from its all-time high of $73,737, reached on March 14.

BTC 24-hour price chart | Source: crypto.news

The drop was part of a broader market downturn that also saw Ethereum (ETH) fall by nearly 20%, from $2,695 to a low of $2,171, before marginally recovering to $2,321, according to the data from crypto.news.

This market turmoil resulted in the liquidation of over $1.07 billion in leveraged positions within the last 24 hours, with the bulk comprising leveraged long positions. Data from CoinGlass reveals that Bitcoin and Ethereum long positions were the hardest hit, suffering losses of $305.49 million and $299.45 million, respectively.

Crypto liquidations map – Aug. 5 | Source: Coinglass

Analysts are linking this sudden market volatility to several external economic factors. Notably, the Japanese stock market saw a 7.1% drop in the Nikkei 225 index, driven by significant losses in Japanese banking stocks following a hike in interest rates by the central bank.

Further pressures came from disappointing job figures in the U.S., a slowdown in the growth of major technology stocks, and reports of extensive liquidations by cryptocurrency trading firms, including Jump Crypto.

This recent downturn marks the most substantial 72-hour drop in over a year, wiping out $200 to $500 billion from the total cryptocurrency market capitalization.

Amidst the market chaos, the Bitcoin fear and greed index took a steep dive to 31, indicating a shift from last week’s high of 74, which suggested a greedy market. Simultaneously, U.S.-based spot Bitcoin ETFs saw significant cash outflows, with a net withdrawal of approximately $237 million on Friday.

Despite the overall market collapse, Bitcoin’s dominance index surged to 56.23%, its highest since May 2021, signaling its increased consolidation compared to other cryptocurrencies.

Meanwhile, market analysts also speculate that the escalating conflict between Iran and Israel could be influencing global market stability, potentially affecting cryptocurrency markets as investors seek safer assets.

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Theo Crypto News

Altcoin

Ethereum nosedives: 32% weekly drop, largest YTD loss

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Ethereum collapses 32% in a week, with an 18% drop in the last 24 hours alone, as the crypto market as a whole records its largest dip this year.

The Ethereum (ETH) price action on the daily chart shows a dramatic decline with the current price at $2,350 down by 12.35% for the day. This drop has pushed Ethereum below the lower Bollinger Band, currently at $2,650, a key index for indicating that the asset may be oversold.

ETH 1D chart – Aug. 5 | Source: crypto.news

The Bollinger Bands indicate heightened volatility, with the bands expanding significantly. Ethereum’s position below the lower band typically suggests the asset is oversold and might be due for a bounce back, indicating bearish pressure if the price does not recover soon.

ETH’s On-Balance Volume (OBV) confirms this bearish sentiment. The OBV currently stands at 43.49 million, having declined sharply in tandem with the price drop, suggesting that sell pressure is substantion.

As more volume is associated with downward price movements, if ETH’s OBV continues to decrease, this would indicate persistent selling and potential for further declines in Ethereum’s price.

ETH weekly chart at critical condition

The weekly chart shows Ethereum’s situation does not look much better. The price has broken below the lower Donchian Channel, which is at $2,111. Currently, the upper and middle Donchian Channels are at $3,977 and $3,044, respectively. 

ETH 1W chart – Aug. 5 | Source: crypto.news

This breach of the lower channel indicates a strong bearish trend, as it shows the price has reached new lows not seen in the past 20 trading periods. A weekly close below this level could signal further downside risk.

Moreover, the Relative Strength Index (RSI) on the weekly chart currently stands at 38.55, down from a recent high of 54.90. If the RSI drops further below 30, it would confirm an oversold condition, potentially leading to a short-term bounce at or above the $2,800 mark.

However, the current trend shows weakening momentum, and unless there is a strong reversal, ETH’s downward pressure could persist.

What next for Ethereum?

Looking ahead, Ethereum’s immediate future largely depends on its ability to reclaim key support levels. On the daily chart, a recovery above the lower Bollinger Band at $2,650 could stabilize the price.

Meanwhile, on the weekly chart, a move back within the Donchian Channels, particularly above the middle band at $3,044, would be a positive sign. 

However, if the current bearish momentum continues, we could see Ethereum testing lower support levels around $2,000, with a possibility of further declines if broader market conditions remain unfavorable.

Analyst Benjamin Cowen argued that Ethereum might stabilize around its current levels in the short term before potentially experiencing another leg down, particularly if macroeconomic conditions, such as rate cuts, play out similarly to past market cycles.

Also, market veteran Peter Brandt suggests that Ethereum is close to hitting its floor. With a rectangle pattern ranging from $4,500 to $2,814, the analyst calculates the downside bottom to be around $2,000, suggesting that this target is almost fulfilled.

Tổng hợp và chỉnh sửa: ThS Phạm Mạnh Cường
Theo Crypto News

DeFi

Neiro meme coin plummets 60% following Vitalik Buterin’s token sell-off

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Neiro, a newly launched Ethereum-based meme coin, dropped by 60% early Monday morning following a massive sell-off by Ethereum co-founder Vitalik Buterin.

According to price data from CoinGecko, Neiro’s price fell from $0.022 to $0.013 before experiencing a minor recovery to $0.015. The meme token plummeted further and is now trading back at $0.013 at press time. 

NEIRO 24-hour rice chart | Source: CoinGecko

The crypto asset has a daily trading volume of $56.7 million, with its market cap standing at $13.29 million.

The fall in Neiro came after Lookonchain revealed that Buterin sold all 17.15 billion Neiro tokens he received from the Neiro team, which represented 4.08% of the total supply — making him the largest holder of the meme coin. The sale netted Buterin 44.53 Ether (ETH), equivalent to $112,500.

Journalist and blockchain blogger Colin Wu clarified to investors that the Neiro token on Ethereum is the one sold by Buterin, noting the existence of other tokens with the same name in the cryptocurrency market.

Launched at the end of July, the memecoin initially saw a value increase of 200% as it attempted to leverage Buterin’s fame by airdropping 4% of its supply to him on Aug. 4, claiming he was the largest holder. However, Buterin’s swift decision to dump the tokens led to a drastic price drop of 60%, causing widespread concern among investors.

Following the sell-off, the Neiro team posted on X, asking Buterin to donate part of the proceeds to a stray dog shelter, “Hey Vitalik Buterin, we see that you sold your Neiro bag. Our humble ask is that you donate part of the proceeds to a stray dog shelter. And thank you for building our playground.”

The Neiro project had created a strategic reserve to hold tokens for potential central exchange (CEX) listings and to make charitable donations to stray dog shelters and other animal abuse prevention foundations.

On Aug. 4, the project announced a donation of almost $1600 to a stray dog shelter in Japan, which houses the dog that inspired the Neiro memecoin.

Neiro memecoin, inspired by Kabosu, the sister of the famous Shiba Inu featured in the Doge meme, saw exponential growth after its launch, reaching an all-time high of $0.19 on Aug. 1 and achieving a market cap close to $200 million.

The latest incident occurred amid a broader downturn in the meme coin market, with the total meme market cap falling around 16% over the past 24 hours to $35.8 billion. Major memecoins such as Pepe (PEPE), dogwifhat (WIF), Floki (FLOKI), and Book of Meme (BOME) have all experienced significant drops between 18% and 20%.

Meanwhile, the global crypto market is also experiencing a drop of 13.8% in the last 24 hours. Bitcoin (BTC), the pioneering crypto asset, was down 12.7%, trading at $52,706, while Ethereum (ETH), the largest altcoin, was also down 18.5%, exchanging hands at $2,355.

Other altcoins that suffered the steepest losses of over 20% include Lido DAO (LDO), Chainlink (LINK), Bittensor (TAO) and KuCoin (KCS).

Tổng hợp và chỉnh sửa: ThS Phạm Mạnh Cường
Theo Crypto News

Altcoin

Polyhedra hits 6.9m staked ZKJ in V2 staking program

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Polyhedra Network’s staking program saw more than 6.9 million of its native token staked in less than a month.

The Polyhedra Network (ZKJ) team, which recently launched the open beta the protocol’s proof cloud, shared details of the new milestone on Aug. 2.

Staking allows ZKJ holders to earn rewards and participate in the Polyhedra Network’s governance. According to the data, the ZKJ staking program surpassed the $9 million mark in “under a month.” The total staked tokens hit 6.9 million, while the number of unique stakers rose to 1,688.

However, as of the announcement on Aug. 2, 2024, the total staked ZKJ only accounted for about 0.08% of Polyhedra’s total supply of 1 billion tokens.

Polyhedra Network staking V2

The zkBridge developer’s V2 staking program followed the conclusion of the first offer that launched in June. As a temporary program, the first event only lasted for four weeks. However, it allowed participants to stake ZKJ for a chance to earn a share of the $1.13 million reward pool.

As crypto.news highlighted at the time, that first Polyhedra staking program ran until July 11.

The protocol launched its staking program V2 on July 15, which it said would run for a maximum of 52 weeks. During this period, network participants will be able to stake their ZKJ tokens to accumulate Staking Power. This allows token holders to earn rewards.

Staking rewards

Rewards calculation and distribution occur every Thursday at 00:00 UTC, based on the individual user’s Staking Power versus the total Staking Power for all users.

The next distribution, for instance, is expected on Aug. 8, with 25,000 CYBER and 38,000 ZKJ available. On Aug. 1, Polyhedra distributed 30,000 ZRO and 20,000 ZKJ.

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Theo Crypto News

Bitcoin

Bitcoin is the solution to an inevitable hyper-financialization | Opinion

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If there’s one thing that is becoming clear, it’s that hyper-financialization is inevitable, and our best chance to navigate it successfully is through Bitcoin (BTC). This decentralized cryptocurrency, which is known for its fixed supply and robust security, offers a unique solution to the upcoming problem of wealth inequality and concentration of power. By adopting Bitcoin, we can create a more transparent and resilient financial future, or we risk losing our financial sovereignty to a handful of corporations.

The hyper-financialization of the world has already begun with the financial sector becoming a relatively bigger part of the economy, growing in size and importance. Financial structures are now fast creeping up in other sectors as well. 

For instance, in 2023, Americans spent more than $100 billion on state-run lotteries, according to The Economist, which reported poorer citizens spent a staggering amount on tickets. Additionally, the online sports betting market, valued at over $100 billion, is projected to generate almost $46 billion in revenue this year, with a 3.9% user penetration. 

Moreover, Robinhood, a commission-free investing platform popular among retail, has seen its number of funded customers rise to 23.9 million and assets under custody surge to $129.6 billion, yet another prime example of the hyper-financialization trend. It was during the COVID-19 pandemic in 2020 that Robinhood started gaining traction, and the trend of hyper-financialization was exacerbated. For people stuck in their homes, the online world became their primary means of entertainment and social interaction. 

Then, the governments injected billions of dollars into the market, providing people with an incentive to bet their money on markets. The subsequent surge in inflation and the weak economy around the world have now further intensified this trend as people bear the burden of survival. 

It has led to a heightened proliferation of financial structures in different spheres of life, which means that both builders and consumers are taking this route. 

The crypto industry

As we can see in crypto, it has grown from less than $150 billion in March 2020 to now worth $2.7 trillion. This explosive growth is not only turbocharging the hyper financialization trend for finance with yield farming, restaking, points, rewards, and meme coins but also for art via NFTs, social dynamics through social tokens and platforms like Friendtech, gaming with play-to-earn concepts, and physical assets via tokenization.

Then, there are prediction markets that allow people to bet on all kinds of events. These range from the US 2024 Presidential election outcome to whether Bitcoin will hit $100k by year-end, if Drake’s verse in “Wah Gwan Delilah” is AI, what will be ‘Bad Boys: Ride or Die’ Opening Weekend Box Office, or if Fed will raise rates this year?

This growing trend of hyper-financialization is detrimental to society, given that it broadens the already widening wealth gap by increasing wealth concentration and contributing to economic inequality. Not to mention, this will lead to even bigger asset bubbles, short-term focus over long-term approach, and more interest in speculative investments. 

Here, crypto can help provide a better way to approach hyper-financialization. After all, middlemen are where the wealth lies, and the use of blockchain technology removes this third party from the equation, bringing trustlessness, traceability, and immutability to the market. Blockchain actually allows the hyper-financialization to be fair and transparent.

Before crypto, not everyone was allowed to participate in markets. But through disintermediation and permissionlessness, crypto has made markets more efficient and accessible. Not to mention, one gets total control over their data, mitigating the risk of data manipulation and privacy invasion.

A better way to deal with hyper-financialization

This is where Bitcoin provides the perfect solution. This decentralized peer-to-peer network enables financial inclusion and resistance to censorship, which is critically important in today’s world, where organizations and governments are encroaching on people’s rights. This network has a decade-and-a-half-long history behind it, offering a robust and secure platform for people to achieve financial sovereignty.

The trillion-dollar asset class further serves as a hedge against inflation, allowing holders to preserve their wealth over time. Unlike fiat currencies, which are devalued through policies, Bitcoin’s fixed supply and decentralization safeguard it from such pressures, making it the perfect asset to be owned in a world where everyone is competing to extract value.

The largest crypto network has now also been seeing experimentation as both developers and investors use it as a base to build a truly decentralized future of finance and value.

For so long, Bitcoin has been a low-activity blockchain, its key role being a store of value. While Bitcoin has been playing a passive role in the blockchain world all these years, it finally changed with the Taproot upgrade that brought NFTs into the BTC realm. Then there has been an increasing interest in tokenization, that too from institutions like Blackrock. 

This focus on expanding Bitcoin’s utility has sparked a wave of innovation, and the day is not far when BTC might dethrone Ethereum to become the go-to blockchain for decentralized finance. Several aspects, including Bitcoin’s robust security framework, widespread recognition, and institutional interest, are positioning Bitcoin at the forefront of defi innovation. 

So, with these developments, Bitcoin is now evolving to start its new era of utility and innovation after fulfilling its original vision of being a peer-to-peer electronic cash system. 

As everything turns into a financial asset and becomes tradable, attention, which is a scarce resource, will become even more critical. Bitcoin has already solidified its position in the attention economy, and the newfound interest in regulatory complaints and the widely adopted BTC to drive productivity will see it lead the future of digital economies. This points to a world where crypto is leading the charge for hyper-financialization, with BTC in the driver’s seat.

So, to conclude, the resilient Bitcoin network that survived the test of time spectacularly may have started as a way to facilitate the transparent flow of monetary value, but today, it has become a foundation of hope to not just protect yourself from a future that is going to be super fixated on financialization aspect but to take advantage of it to build wealth and thrive.

Tổng hợp và chỉnh sửa: ThS Phạm Mạnh Cường
Theo Crypto News

Altcoin

GMX proposal to change revenue model proceeds to on-chain vote stage

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GMX, an on-chain perpetual and spot exchange, has announced that a proposal to change the platform’s revenue distribution model has entered the on-chain vote stage.

According to an announcement on July 31, the new revenue distribution model aims to enhance the long-term value of the GMX (GMX) token. Currently, the DEX protocol supports a model that allows for a buyback and distribution of Ethereum (ETH).

What’s happening?

The snapshot vote for the new ‘Buyback GMX and Distribute GMX’ proposal passed, the platform announced. Due to this, the proposal has moved to the next stage – on-chain voting that will see the GMX DAO community have until August 4 to approve or reject it.

If approved, GMX will drop the current revenue distribution model of “buyback ETH and distribute ETH”. Other than boosting the native token’s value, a buyback for GMX instead of ETH will also preserve real-yield advantages for users.

Key proposals

The “buyback GMX and distribute GMX” proposal will, however, have an option for users to convert distributed GMX to ETH. It means network fees will be stored in GMX and distributed in the same token, with users able to convert directly.

According to details of the proposal, the buyback contract will allocate a seventh of fees towards the purchase of GMX. This will occur every day for seven days, with the buyback price based on GMX’s Chainlink oracle price on Arbitrum (ARB) and Avalanche (AVAX).

The buyback contract will also enforce a premium to the revenue model, with this set to gradually increase from 0% to 5% across the week.

GMX’s trading model allows liquidity providers to earn fees from spreads, funding fees, and liquidations. DeFiLlama currently ranks GMX as the 45th largest chain by revenue and fees. Rival protocols include dYdX and Jupiter Perpetual Exchange.

Tổng hợp và chỉnh sửa: ThS Phạm Mạnh Cường
Theo Crypto News