Lưu trữ cho từ khóa: #DeFi

DeFi

MANTRA announces mainnet launch set for October

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MANTRA announces mainnet launch set for October

Real-world assets platform MANTRA has announced that the mainnet launch for its MANTRA Chain will go live in October 2024.

MANTRA (OM), a layer-1 blockchain for RWA tokenization, said in a Sept. 18 announcement that the mainnet launch will offer key features such as enhanced network stability and institutional-grade access to on-chain finance and tokenized assets.

Bridging DeFi and TradFi

The mainnet will position the blockchain platform to achieve its goal of bringing traditional finance on-chain, MANTRA co-founder and chief executive officer John Patrick Mullin said.

MANTRA’s token and stablecoin on-ramps continue to attract more businesses and industry players to the RWA and asset tokenization space, helping to bridge the gap between decentralized finance and traditional finance, Mullin added.

MANTRA has struck some key partnerships

The MANTRA Chain’s mainnet launch will support this objective through new partnerships in the real-world assets ecosystem. Mantra unveiled its incentivized testnet in April and struck a signficant partnership with MAG, a UAE-based real estate giant. The deal centers around the tokenization of $500 million in real estate.

In August, MANTRA disclosed a memorandum of understanding between the blockchain firm and an aviation finance company. The collaboration aims to unlock RWA investment opportunities in the aviation sector, a market currently valued at over $200 billion.

These developments have recently catalyzed the native token OM’s performance, with prices surging amid a spike in active wallets and staking.

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Theo Crypto News

DeFi

DeFi vs Crypto: What sets them apart

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Decentralized finance and cryptocurrencies are tightly linked, yet they each play distinct roles within the blockchain world. Curious about the difference? Let’s break it down.

What is cryptocurrency? And what is DeFi? Crypto vs DeFi.

Cryptocurrency explained

Cryptocurrency is a virtual currency, serving as an alternative to fiat money. Essentially, it’s code generated through complex computer-based mathematical calculations. Cryptocurrencies operate on blockchain technology — a database structured as a chain of blocks, each containing transaction information. Cryptocurrencies don’t have a central authority managing or regulating their value. Instead, everything runs through a decentralized network of users online.

Decentralized finance explained

DeFi represents a completely new financial system, akin to traditional banking but built on public blockchains. With DeFi, you can do a lot of what you’d normally do with a traditional bank, like earning interest on your deposits, taking out loans, borrowing money, getting insurance, and trading cryptocurrency derivatives.

Decentralized finance vs crypto: core differences between DeFi and cryptocurrency

What is the difference between DeFi and crypto?

Purpose and use cases

Crypto. Today, people use cryptocurrencies in many ways. You can spend them on services and products if the seller is open to it, and they’re also relatively easy to exchange for dollars, euros, and other currencies. However, many people view digital coins more as investment assets, similar to stocks or precious metals, rather than just a purchase method.

DeFi. DeFi opens up a world of innovative financial services, making it easier for people to manage their money in new ways. For example, trading cryptocurrencies on DeFi platforms often means lower fees than traditional methods. With DeFi, you can do much more than just trade crypto; you can also lend money, either earning interest on what you lend or borrowing funds when you need them. Plus, you can save your money in interest-bearing accounts, helping it grow over time.

Ecosystem and components

What are the main components of DeFi and crypto?

Crypto

Here are the key components of cryptocurrencies: 

  • Blockchain technology. Think of blockchain as a digital ledger that tracks all cryptocurrency transactions. It’s a secure and open way to see who owns what and ensure everything’s above board.
  • Cryptographic security. This is the tech that keeps your transactions safe and your data private. It also means you don’t need to rely on a middleman to manage your money.
  • Decentralized ledger. Picture a public record that’s spread across many computers. It keeps tabs on digital assets like cryptocurrencies and NFTs, making sure they’re tracked securely and transparently. This system is also handy for things like supply chain tracking, managing medical records, and even voting.

DeFi

Here’s a simple rundown of the main components of DeFi:

  • Blockchain. Most DeFi action happens on the Ethereum blockchain, which is where this whole movement started.
  • Crypto assets and tokens. Think of BTC and ETH as the core players in the DeFi game. They’re essential to how the system operates.
  • Digital wallets. These are like your online bank accounts for cryptocurrencies. They keep your digital assets safe and secure, typically protected by private keys.
  • Smart contracts. Imagine these as self-executing agreements that automatically do what they’re programmed to do when certain conditions are met. They’re the backbone of many DeFi services.
  • Stablecoins. These are digital coins designed to hold steady value, usually pegged to traditional currencies or commodities. They help keep things stable amidst all the crypto volatility.

DeFi vs crypto: regulation

Everything you need to know about DeFi and crypto regulation.

Cryptocurrency regulation

Cryptocurrency regulation is a bit of a rollercoaster ride.

Global patchwork. Countries are all over the map with how they handle crypto. Some, like El Salvador, are embracing Bitcoin with open arms. Others, like China, have put up strict barriers. It’s a bit like a global game of crypto regulation dodgeball.

The why behind the rules. The heart of cryptocurrency regulation is all about keeping things safe and stable. Regulators want to protect investors from scams and fraud, prevent crypto from being used for illegal activities, and ensure the financial system doesn’t go off the rails. It’s all about striking a balance between letting innovation flourish and keeping things in check.

What’s on the table? Here’s a taste of what regulations might cover: 

  • Anti-Money Laundering: Rules to make sure crypto isn’t a front for dirty money.
  • Know Your Customer: Requirements for exchanges to know who their users are, to keep things above board.
  • Taxation: Guidelines on how to deal with crypto-related taxes, from gains to income.
  • Consumer Protection: Measures to guard users against scams and ensure transactions are transparent.

A moving target. Since the crypto world evolves so quickly, regulations are constantly playing catch-up. What’s true today might change tomorrow as governments and financial authorities tweak their approaches.

Market buzz. News about regulations can shake up the crypto markets. Good news might give a boost, while strict or vague rules can make things a bit shaky. 

In essence, cryptocurrency regulation is an ongoing effort to keep digital assets safe and balanced while navigating the fast-paced world of innovation and risk. It’s a tricky but crucial piece of the crypto puzzle.

DeFi regulation

Regulating DeFi isn’t just about making rules; it’s about creating a safe environment where new financial technologies can thrive. The goal is to bring some order to this fast-moving landscape without putting a damper on the innovation that’s driving it.

Regulating a decentralized system is no small feat. Because DeFi platforms operate without a central authority, pinpointing who’s responsible and enforcing rules can be tricky. Regulators are working hard to adapt current regulations or come up with new ones that fit the unique nature of DeFi.

Future outlook

Both crypto and DeFi are shaping up to be game-changers in the future of finance. Cryptocurrencies are transforming our view of money, and DeFi is taking it even further by removing traditional middlemen from finance. Together, they’re shaping a future where financial transactions are more open, efficient, and full of exciting new opportunities.

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Theo Crypto News

DeFi

1inch launches Fusion+ upgrade for its cross-chain swaps

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Decentralized exchange 1inch has introduced a new upgrade that allows users to swap their crypto assets without giving up custody.

According to a Sept. 18 announcement, 1inch has deployed the next iteration of its 2022 Fusion upgrade for its Swap Engine known as Fusion+. 

The new feature lets users swap cryptocurrencies across multiple blockchain networks but lets them retain full self-custody of their tokens. Further, it pools both on-chain and off-chain liquidity “to deliver convenient and secure swaps,” and will also offer “built-in protection” against maximal extractable value attacks.

Fusion+ is powered by atomic swap technology, ensuring cross-chain transactions remain secure, trustless, and efficient, while avoiding the vulnerabilities associated with traditional cross-chain bridges.

How it works

An Atomic swap is the process of exchanging cryptocurrencies between two different blockchains without the need for a trusted third-party intermediary, such as an exchange. The term “atomic” refers to the idea that the transaction either happens in its entirety or not at all.

Fusion+ leverages this “all-or-nothing” principle, meaning if any part of the transaction fails to meet the conditions or is incomplete, the assets are automatically returned to their original owners.

Further, the process is governed by smart contracts, which automatically enforce the terms of the swap. These contracts ensure that all preconditions, such as time limits or asset amounts, are met by both parties.

The swap process starts with a user sharing their order details with resolvers, who are professional traders who compete to execute swaps at the best rates through a Dutch auction model. 

The resolver then locks the user’s tokens into an escrow contract and deposits the corresponding amount of the other token into a separate escrow contract, with both contracts containing the same secret hash and conditions. 

Once both contracts are active on-chain, both parties reveal the cryptographic secret, the tokens are swapped, and the user receives the new asset. If either party fails to meet the set conditions, the assets are returned to the respective owners.

1inch initially disclosed its plans to introduce Fusion+ in a Sept. 12 blog where it cited issues like the security risks of centralized cross-chain bridges, inefficiencies in decentralized solutions, and the complexity of current cross-chain processes.

In related news, the DEX funded a crowd-testing platform earlier this year that allows beta testing of web3 products. 

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Theo Crypto News

DeFi

SUI hits six-month peak following USDC integration

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Sui has recorded an impressive price rally last day following the integration of native USDC on the platform.

At the time of writing, Sui (SUI) was still up 10% over the past day, exchanging hands at $1.2 per price data from crypto.news. The token also registered a 35% price jump over the past seven days — rising from $0.88 on Sep. 11 to a six-month high of $1.22 earlier today. 

Following the price hike, SUI’s market cap surpassed the $3.2 billion mark — making it the 30th-largest crypto asset — with a daily trading volume of roughly $673 million.

One of the main reasons behind SUI’s price surge could be its upcoming integration of native USDC and the Cross-Chain Transfer Protocol, which is expected to boost liquidity and cross-chain transactions.

The upgrade will allow users and developers on the Sui network to expand the use of USDC in a range of applications such as decentralized finance, gaming, and e-commerce, potentially increasing market demand for SUI.

Another factor potentially fueling the rally could be the Sui Foundation’s announcement of a partnership with MoviePass, a movie subscription service based in the U.S.

Rising futures demand and expanding DeFi ecosystem

The coin’s rebound aligns with growing demand in the futures market, where open interest has soared to a new peak. Data from CoinGlass shows that open interest reached $315 million, surpassing the previous record of $290 million and marking a substantial rise from less than $52 million in August.

Meanwhile, data from DeFi Llama indicates that Sui’s network is becoming more popular with developers and users. The total value locked in its decentralized finance sector has increased by more than 25% in the last 30 days, reaching over $741 million. The majority of these assets are held in NAVI Protocol, Scallop Lend, Suilend, and Aftermath Finance.

SUI’s momentum faces key resistance test

On the daily chart, Sui has risen above both the 50-day and 200-day Simple Moving Averages, and it has developed an inverse head and shoulders pattern, typically considered a bullish indicator.

SU price, 20-day SMA and 200-day SMA } Source: crypto.news

SUI is also positioned above its upper Bollinger Band at $1.1948, indicating strong upward momentum. However, this also suggests the asset is overbought, which could foreshadow a possible pullback or price correction.

SUI Bollinger Bands and RSI } Source: crypto.news

Despite the overbought status, prolonged market excitement can sometimes keep an asset in this condition for extended periods. The key resistance level now stands at $1.40, which SUI approached during its rally on April 20. If the momentum persists, a push towards these levels again is plausible.

The Relative Strength Index is slightly elevated at 72.52, just above the overbought threshold of 70, signaling that the asset may soon experience downward pressure as traders potentially begin to take profits.

Should the price decline, the middle Bollinger Band at $0.9325 will serve as immediate support, with a further drop potentially challenging the lower support at $0.6702.

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Theo Crypto News

Altcoin

Google Cloud unveils new blockchain RPC service with Ethereum compatibility

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Google Cloud has launched an Ethereum-compatible Remote Procedure Call service to simplify blockchain development and provide a reliable way to interact with blockchain data.

Announced on Sept. 17, Google Cloud’s latest offering allows decentralized applications to communicate with blockchain networks, starting with support for the Ethereum mainnet and testnets, offering a cost-effective alternative to managing node infrastructure.

An RPC is a software protocol that enables one program to request a service from another program located on a different network. In blockchain, RPCs are crucial for DApps to interact with blockchain data, handling tasks like transaction validation, data retrieval, and node communication.

RPC reliability has been a persistent issue in the blockchain sector. Delays or errors in RPCs can affect the functioning of DApps, which often need to handle transactions and data requests instantaneously. 

High network traffic or sudden spikes in transaction volumes often cause disruptions, as seen in the past with Ethereum’s layer-2 solution ZkSync, and blockchains like Solana and Manta, which have experienced issues during times of peak demand.

Google Cloud’s Blockchain RPC service aims to solve these issues by leveraging its infrastructure for better reliability. 

The service is fully compatible with the JSON-RPC standard, which allows Ethereum developers to integrate it with their dapps with minimal coding by just modifying their RPC endpoints.

Further, it offers a free tier, allowing up to 100 requests per second and 1 million requests per day, supporting real-time and data-heavy applications, catering to both startups seeking an entry point into blockchain technology to large enterprises that need a dependable infrastructure.

Kyle Quintal, Head of Engineering at web3 analytics firm 0xArc, noted that Google Cloud’s RPC service provides “fast response times,” and aligns with the Ethereum Improvement Proposal 1474 standards, which encouraged them to integrate it into their system.

 EIP-1474 defines a set of standardized RPC methods for Ethereum nodes.

The Blockchain RPC service is now available globally in preview and Google Cloud plans to extend support to more blockchains over the coming year.

The new initiative is a part of Google Cloud’s broader push into the blockchain sector. Over the years, the cloud computing giant has collaborated with several blockchain projects and platforms like EigenLayer, Aptos, Flare, and Polygon among others. 

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Theo Crypto News

DeFi

Centrifuge and Anemoy partner with Archax to list liquid treasury token

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Anemoy, a tokenized securities issuer powered by on-chain finance platform Centrifuge, has partnered with Archax to bring their Liquid Treasury Fund to the platform.

Centrifuge, Anemoy and Archax are partnering to expand access to new investment opportunities in the tokenized real-world assets market.

Per a press release shared with crypto.news, the partnership will allow London-based Archax to offer its users direct access to the U.S. Treasury bills via Anemoy’s liquid treasury fund.

Liquid funds relate to investments that one can easily liquidate for cash, and includes short-term treasury bills. 

The partnership looks to tap into Anemoy’s web3 infrastructure, Centrifuge’s growing traction in the real-world assets, and Archax’s distribution channels and venture capital.

With Archax handling sub-custodial services as well as compliance via know your customer, the move is intended to make it easier for institutional investors to gain exposure to T-bills, thereby expanding Archax users’ investment portfolio beyond USDC (USDC).

The strategic partnership with Archax, which is the first regulated digital assets exchange in the U.K., comes days after asset manager Janus Henderson announced its collaboration with Centrifuge and Anemoy.

On Sept. 13, Centrifuge revealed that Janus Henderson was taking over the management of Anemoy’s LTF, with the firms’ eyeing a market that is attracting major financial advisors and asset managers.

Nick Cherney, the head of innovation at Janus, said that the decentralized blockchain and the RWA market could be bigger and potentially more disruptive that the exchange-traded funds space.

According to Cherney, there’s possibility that these investments around decentralized blockchain will do to ETFs what the exchange-traded funds did to mutual funds.

Recent RWA.xyz data shows the global tokenized real-world assets market has grown to over $12 billion, with tokenized treasuries accounting for about $2.2 billion.

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Theo Crypto News

DeFi

CoinDCX’s Okto Chain allocates 1% of OKTO supply as developer grant

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Okto Chain will allocate 1% of its upcoming token to incentivize early builders who start using the Okto software development kit.

According to a press release shared with crypto.news, Okto, a blockchain focused on chain abstraction, has launched a Grant Program allocating 1% of its total OKTO token supply to reward developers who start building on the Okto Chain using its SDK and embedded wallet before the Token Generation Event.

Announced during the Token 2049 event in Singapore, the grant aims to encourage early adoption by helping developers integrate advanced Web3 features into their decentralized applications on Okto Chain.

Launched by CoinDCX in May 2024, Okto Chain aims to simplify blockchain integration and enhance Web3 usability. The blockchain employs an orchestration layer which according to CoinDCX and Okto chain co-founder Neeraj Khandelwal addresses the issue of fragmented user experiences across multiple blockchains.

“Through chain abstraction, we’re breaking down technical barriers to fuel the next wave of Web3 innovation,” Khandelwal told crypto.news.

As the native token of Okto chain, the OKTO token is used to incentivize network participants, support decentralized security measures, and facilitate transactions across different blockchain networks. Additionally, OKTO plays a vital role in Okto Chain’s governance, ensuring that developers, validators, and users all have a shared stake in the network’s growth. Detailed tokenomics for OKTO is expected to be released later this year.

For developers, Okto SDK simplifies blockchain development by providing a unified platform with a comprehensive set of APIs and programmable scripts, known as “Blocs.” With these tools, developers can create dApps without having to worry about gas management, transaction sequencing, or multi-chain compatibility. 

According to the project’s whitepaper, the SDK is expected to reduce development time by over 90%.

The announcement comes shortly after Okto Wallet, a self-custody solution built on the Okto Chain, became the first Web3 wallet licensed to operate in the RAK Digital Assets Oasis, a free-trade zone in the United Arab Emirates. The development was a part of CoinDCX’s expansion strategy in the region where it had previously acquired BitOasis, the first crypto exchange to register with the UAE Financial Intelligence Unit.

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Theo Crypto News

DeFi

MAGA, FIGHT, and DJT surge as Trump’s crypto project announces WLFI token

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Donald Trump-themed cryptocurrencies surged as World Liberty Financial announced a new governance token.

Fight to MAGA (FIGHT) led the charge with a massive surge of over 150%, pushing its valuation to $10.3 million. TrumpCoin (DJT) also saw a strong rally, climbing 28% to reach $0.00032, its highest since Aug. 7, with daily trading volumes near $1 million. Meanwhile, MAGA (MAGA) rose by 18% over the past day, with a daily trading volume of $11.48 million.

All these gains helped push the total market cap of political-themed tokens past $481 million. Meanwhile, the community sentiment around the tokens had also turned bullish according to Coinmarketcap data.

These tokens rallied after Donald Trump’s crypto initiative, World Liberty Financial, announced its plans to release a governance token named WLFI.

WLFI has been advertised as a non-transferable governance token, allowing holders to propose and vote on platform-related matters. Approximately 63% of the total token supply is designated for public sale, with 17% for user rewards, and the remaining 20% for the team and advisors.

While the token’s launch date remains undisclosed, the project team has confirmed that sales will be limited to accredited investors.

Despite the rise on Sept. 17, political-themed tokens have been experiencing a downturn, with their total market cap now down to $481 million.

These tokens tend to gain prominence during election seasons, potentially losing much of their relevance after the elections conclude. Traders often refer to these as “event coins” because their prices are influenced as the date of the related event approaches.

However, in the short term, these coins could see further gains if Bitcoin (BTC) breaks past its previous high, as meme coins often thrive during Bitcoin’s bull runs. Factors that could drive Bitcoin’s price higher include possible cuts in Federal Reserve rates, a weakening US dollar, and a continuing stock market rally.

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Theo Crypto News

DeFi

Donald Trump’s WLFI token to be limited to accredited investors

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Donald Trump’s crypto project World Liberty Financial has confirmed plans to launch a governance token that will only be available to accredited investors.

After surviving a second assassination attempt, Former President Donald Trump made his first public appearance in an interview with crypto influencer Farokh Sarmad during a Sept. 17 X spaces where the World Liberty Financial team members unveiled the WLFI token to over 100,000 listeners.

The WLFI token will be sold under a Regulation D exemption, which lets companies raise money without registering with the SEC, as long as they stick to accredited investors or small, private sales. 

Zak Folkman, one of the project’s founders, said this decision comes down to the regulatory uncertainty around token sales in the U.S., where the Securities and Exchange Commission often treats these tokens as securities.

Sales to U.S. residents will require verification as accredited investors, while non-U.S. buyers may face other restrictions, though how they can participate remains unclear.

WLFI will be a non-transferable “pure governance tokens”, offering holders the ability to make proposals and vote on matters related to the platform that promises to leave “slow and outdated banks behind.” 

Around 63% of the total token supply is set aside for public sale, with 17% allocated for user rewards and 20% reserved for the team and its advisers. While Folkman did not disclose the total supply of the token, he said the distribution would be “incredibly fair,” adding that there would be no pre-sales or early buy-ins with discounted allocations for venture capitalists.

A launch date for the token launch is yet to be disclosed.

Trump silent about WLFI

Trump, who had previously teased the project on multiple occasions, refrained from directly discussing it but focused instead on broader topics related to crypto policy and the potential of digital assets within the U.S. economy.

“Crypto’s one of those things we have to do, whether we like it or not,” he said during his time as speaker, adding that the sector is “big and yet it’s a fledgling compared to what it will be.”

Other members of the Trump family participated in the discussion. Donald Trump Jr. stated that he views DeFi as a means to bring “fairness to the financial system,” aligning with what he believes “our founding fathers intended.” 

Eric Trump chimed in, saying DeFi needs to be way more user-friendly, sharing his own struggles navigating decentralized platforms like Aave.

Concerns remain

As previously reported by crypto.news, there were initial concerns that 70% of all WLFI tokens would be reserved for insiders, including Trump. However, with that number now clarified at 20%, those concerns have eased somewhat, though some doubts still linger over the project’s security, specifically, the involvement of Chase Herro, one of the project’s leaders.

His last venture, Dough Financial, a lending platform similar to Aave, JustLend, and Spark, hit a peak of $3.2 million in assets before an exploit drained over $2 million. Now, Dough is nearly inactive, with just $9,747 in total value locked per Defilama.

To address security concerns, the WLFI team has enlisted top-tier security firms like PeckShield, Zokyo, and BlockSecTeam to audit and safeguard the platform. Further, the team disclosed the project’s code has been thoroughly reviewed by these experts to prevent any vulnerabilities.

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Theo Crypto News