Coinbase Launches Defi Yield Earning Service to Over 70 Countries, United States Not Included

The cryptocurrency exchange Coinbase has revealed that it has made decentralized finance (defi) more accessible by giving Coinbase customers from over 70 countries access to earning yield on the stablecoin DAI. Coinbase claims the process is simple with “no fees, lockups, or set-up hassle,” as the firm believes “defi has tremendous potential to help increase economic freedom.”

Coinbase Now Offers Yield on the Defi Stablecoin Issued by Makerdao

Coinbase has announced that it has opened up decentralized finance (defi) services to customers in more than 70 different countries. The news follows the company’s announcement last week when it revealed it acquired BRD wallet and Unbound Security. According to Coinbase, eligible customers in these countries can now earn yield on the defi stablecoin issued by Makerdao called DAI.

“Today we’re introducing a new way for Coinbase’s global customers to put their crypto to work and earn yield,” the firm’s announcement explains. “We are making defi more accessible, enabling eligible customers in more than 70 countries to access the attractive yields of defi from their Dai with no fees, lockups, or set-up hassle.”

Coinbase Defi Users Must Reside in an Eligible Jurisdiction

Coinbase notes that customers that want to participate in earning yield with DAI must access the DAI asset page either on the Coinbase app or Coinbase.com. Users need a balance of DAI to earn and customers must be located in an eligible jurisdiction. Coinbase has been interested in getting into defi-based yield earning and lending programs for a while. It previously had plans to reveal a lending product but was threatened by the U.S. Securities and Exchange Commission.

The Nasdaq-listed cryptocurrency exchange has abandoned the lending program for now. Furthermore, the latest defi yield earning service offered by Coinbase is currently not available for customers in the United States. The service that offers yield on DAI is just the beginning, Coinbase notes, as the company aims to use “a wider variety of assets and a greater number of defi protocols” going forward.

What do you think about Coinbase offering defi services to customers in more than 70 countries? What do you think about the United States being excluded from the Coinbase yield program for now? Let us know what you think about this subject in the comments section below.

What is DeFi? A 3-moment guide to decentralized finance

In Brief

  • DeFi, shorthand for “decentralized finance,” is a catchall phrase for a group of economic tools developed on a blockchain.
  • The thought is to let any one with world wide web accessibility to lend, borrow and lender without going by means of middlemen.
  • DeFi is a person of the swiftest growing locations of the blockchain and decentralized net area.

Bitcoin—a payment technique in which anybody on earth can send cash to any individual else—was just the start off of the crypto revolution. The men and women creating DeFi purposes request to get accessibility one step additional. Decentralized finance has been touted as a achievable remedy to lowering the barrier of entry for people who struggled to access financial institution accounts. And extra just lately, it is really currently being used by cryptocurrency homeowners for a different purpose: to make far more dollars.

Let us choose a seem.

What is DeFi?

Taken collectively, DeFi apps are money items that run on a general public blockchain, this kind of as Ethereum. These goods are permissionless, which means they don’t use third get-togethers. Instead of monetary intermediaries, these kinds of as brokers and banking institutions, every little thing is automatic into the protocol by means of smart contracts. 

Want to just take out a loan? You will not want the lender to hand you revenue. You can get a mortgage instantly from your friends. All set to bet on Bitcoin futures and other derivatives? Ignore obtaining a bookie. You can let the protocol deal with it. Searching to swap one asset for a different? Decentralized exchanges can aid the transaction with out having a large slash.

Who invented DeFi?

There is no one inventor of DeFi, but DeFi applications to start with appeared on leading of Ethereum, which was invented by Vitalik Buterin. They have given that expanded to other networks that use wise contracts to automate transactions. These include Solana, Binance Smart Chain, and Avalanche.

Did you know?

Popular venture funds agency

Andreessen Horowitz led multi-million dollar investment decision rounds in both equally Compound and MakerDAO–pillars of the recent DeFi ecosystem.

What is so specific about it?

DeFi has several important functions.

Very first, it truly is “open up,” meaning you can use the programs by developing a wallet—often devoid of displaying any identifying data, these as name and handle. That’s theoretically (if not technologically) simpler than possessing a bank account. 

Next, you can shift cash around near-instantaneously by means of a blockchain, so no waiting for the financial institution transfer to clear. 

3rd, the fees (for now, at minimum) are a great deal improved than at common banks, though transaction fees change based on the blockchain network.

Very last, DeFi applications work alongside one another like “money Legos.” This “composability” lets anyone to create, modify, combine and match, hyperlink, or build on best of any present DeFi merchandise with out authorization. Sadly, this element may perhaps also be DeFi’s most important weak spot, because if a vital component, such as the DAI stablecoin, results in being vulnerable or corrupted, the total ecosystem designed close to DAI could appear crashing down.

What can you do with DeFi?

There are 3 simple forms of DeFi applications.

Lending/borrowing: If you own cryptocurrency, you can lend it to a protocol these as Aave or Compound in exchange for desire and/or rewards. Similarly, you can borrow digital belongings from such a protocol, which is especially useful if you want to make a trade. Be thorough, however! Most DeFi protocols use about-collateralization, which means you must place up a lot more than the quantity you want to borrow if the asset’s price falls much too much, the protocol may possibly get your collateral to stay away from losses.

Numerous DeFi consumers utilize this as a way to make belongings via “generate farming,” in which they lock up resources in a pool of belongings to get benefits. Considering that costs differ relying on protocol and asset, skilled produce farmers transfer their property to capitalize on the greatest charges.

Trading: With centralized exchanges these kinds of as Coinbase and Binance, you’re relying on the trade to just take custody of your belongings with each trade. Decentralized exchanges eliminate the intermediary so folks can trade specifically with a person an additional. Furthermore, DEXes these kinds of as Uniswap and PancakeSwap allow for people today to listing new tokens for investing. The absence of vetting increases the hazards, but it also allows men and women to “get in early” on new belongings ahead of they strike broader marketplaces.

Derivatives: At times you don’t want to be restricted to buying and selling certain coins or tokens. Derivatives platforms these types of as dYdX and Synthetix let folks to do additional than spot buying and selling. For instance, consumers can make leveraged trades in which they guess far more than they have, or even produce “synthetic property” that mimic conventional shares and commodities.

How are DeFi purposes generated? 

Any one capable of producing intelligent contracts is capable to produce DeFi programs. There are a number of applications for screening and/or deploying clever contracts, among the them Truffle and Ganache for Ethereum. Just after downloading a framework to make smart contracts, you can develop a token that allows a protocol to employ the blockchain network. On Ethereum, this is an ERC20 token on Solana it can be referred to as SPL and Binance Intelligent Chain has BEP20s. 

Possessing a token makes it possible for the protocol to interact right with the layer-1 blockchain’s coin. But assignments have also promoted their tokens to push decentralization. Lending protocol Compound, for occasion, works by using COMP as a governance token those people who hold it get to make conclusions about the protocol’s code and treasury allocations.

How do you use DeFi items?

Anyone can use DeFi goods by likely to an application’s web-site and connecting with a DeFi-enabled crypto wallet, this sort of as MetaMask on Ethereum or Phantom on Solana. Most DeFi dapps do not need users to give up any private data or sign up. On the other hand, mainly because the purposes are designed atop a blockchain, you have to use that blockchain’s coins to shell out for transactions. ETH is essential in purchase to pay for transactions on the Ethereum community, SOL is required on the Solana blockchain, and so forth.

The Potential

As of November 2020, a lot less than $20 billion worthy of of benefit was locked in various DeFi products, most of them on Ethereum. By the subsequent 12 months, it was worth more than $250 billion, with $19 billion coming from Binance Clever Chain on your own. If the craze carries on and the DeFi maximalists are appropriate, this is just the starting of a massive DeFi wave. Accurate believers argue that the strengths of an open up and decentralized economic system are merely much too persuasive to not capture trillions of dollars of worth.

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Enso Finance Launches ‘Vampire Attack’ Against Six Ethereum DeFi Products and solutions

In what could be viewed as a controversial bootstrapping strategy, Enso Finance has declared that it is launching a month-extended vampire assault that could drain just about $1 billion from 6 competing DeFi protocols.

A vampire attack sources liquidity by siphoning it from one (or several) competing jobs. The vampire analogy ends there—the initial assault does not actually modify the character of the challenge that was targeted. 

Enso, a platform that enables end users to mix investing procedures into “metastrategies” and abide by other people, introduced earlier this 12 months. It will focus on six protocols with an accrued $941.5 million whole price locked as of Tuesday afternoon, in accordance to facts from DeFi Llama.

Established Protocol and Index Coop, which allow consumers to produce their individual indexes, account for additional than $400 million each individual in total worth locked (TVL), a metric that approximates the sum of income flowing as a result of any given DeFi protocol. dHedge, a decentralized hedge fund, and PowerPool, an automatic DeFi token portfolio manager, account for $21 million and $18 million, respectively. PieDAO, a system for constructing DeFi ETFs, has $13.8 million, and Indexed, a protocol for passive portfolio administration, has $11.7 million in TVL.

Enso by itself has set out to present all of people attributes and will gamify the migration method with a virtual arcade that reimburses users’s gas costs (transaction expenditures on the Ethereum community) as they migrate liquidity during the 4-7 days vampire attack. Liquidity providers who migrate will also be rewarded with NFTs—distinctive collectible tokens—and Enso native tokens when the assault is entire. 

DeFi is a capture-all term for monetary instruments constructed on a blockchain. In contrast to common finance, DeFi tasks for lending, borrowing, and investing in property are not managed by a central corporation like a lender. In accordance to DeFi Llama, the TVL in these tasks has reached $259 billion throughout blockchain networks, including Ethereum, Solana, Avalanche and other folks.

The decentralized and group-driven mother nature of the marketplace has led to some head-turning start methods. In actuality, the Enso Finance crew was likely to call its go-to-marketplace method a liquidity migration, but made the decision a vampire attack would attract much more interest—even if some of it is detrimental.

“I basically believe it is very constructive. Simply because it’s what classic players do. [UK mobile service providers] Swisscom or BT incentivize consumers to improve options all the time,” Enso cofounder Connor Howe instructed Decrypt. “Sure, it may well sound terrible, it could audio a bit aggressive, but at times you have to take a chance. We chose the phrase ‘vampire attack’ as an alternative of liquidity migration since it’s a lot more effective and people understand what it is.”

1 of the most perfectly-recognized vampire attacks happened past yr, when an nameless developer regarded as Chef Nomi forked the open resource code for crypto trade Uniswap and launched SushiSwap, a clone that was able to drain nearly $1 billion from its predecessor over the system of a 7 days. 

The approach was viewed as controversial, to say the least, especially when Chef Nomi withdrew $14 million from the $SUSHI liquidity pool and triggered its rate to plummet 73%. It even stoked talks of authorized motion against the developer, just before Chef Nomi transferred control of the trade to FTX CEO Sam Bankman-Fried and later on returned the resources he experienced withdrawn.

Whilst Enso is extremely deliberately calling its liquidity migration a “vampire attack” to get attention, it’s not a fantastic comparison. For starters, Howe claims he and his workforce have published their have code as an alternative of cloning any just one of the tasks they’re targeting. 

The job raised $5 million through a personal funding spherical co-led by Polychain Cash and Dfinity Beacon Fund in April, indicating it would use the money to construct its community and platform.

“Crypto Twitter has a ton of people talking about price tag actions. And I individually want persons to begin putting their cash where their mouth is,” Howe mentioned. “I want them to make a approach and show the group that they have really acquired and how significantly they’ve invested on their own. And then they can have persons observe it or they can show what they’re stating is real.”

The post Enso Finance Launches ‘Vampire Attack’ Against Six Ethereum DeFi Products and solutions appeared first on Soltimes.

Terra becomes top-10 crypto: Classic ‘bull pennant’ setup paint $100 LUNA price target

Chiron’s $50-million fundraiser to back Terra-backed projects has boosted traders’ appetite for LUNA.

Terra (LUNA) faces the prospects of hitting $100 in the coming weeks as it paints a classic bull pennant structure.

In detail, Bull Pennants appear as the price trends inside a Triangle pattern after a strong move upside. Many analysts see it as a sign of bullish continuation, i.e., they think the instrument would eventually break above the Triangle’s upper trendline to resume its price rally higher.

Additionally, the profit target of a Bull Pennant structure typically comes to be equal to the length equal to the size of the previous price rally, called Flagpole, when measured from the breakout point. As it appears, LUNA has been forming a similar pattern on its lower-timeframe chart.

LUNA/USDT four-hour chart featuring Bull Pennant setup. Source: TradingView

Considering the breakout happens at the point where the Bull Pennant trendlines converge — the apex — the ideal profit target comes out to be over $22, the Flagpole height. That puts LUNA on the road to almost $100.

Supportive bullish catalysts

The bullish technical setup in the Terra market appeared as LUNA rallied nearly 65% in less than three weeks to become the tenth-largest cryptocurrency by market capitalization.

The digital asset jumped past Dogecoin (DOGE) and Avalanche (AVAX) to value over $28.60 billion, almost 1.18% of the current total cryptocurrency market valuation of $2.30 trillion. Meanwhile, LUNA’s token price climbed from $43.50 to over $77 on Dec. 5, a new all-time high.

LUNA circulating market capitalization. Source: Messari

Traders took cues from Chiron Partners, a Hong Kong-based venture capitalist firm, that announced Wednesday that it had raised $50 million for a dedicated fund, dubbed Chiron Terra Fund I, to build decentralized finance (DeFi) and metaverse-linked nonfungible token (NFT) projects atop the Terra blockchain.

Jake Cormack, chief operating officer at Chiron Partners, credited Terra’s growth potential behind their decision to choose them as their official public ledger, particularly after the blockchain’s recent Columbus-5 upgrade, which promises to enable higher scalability and greater cross-chain interoperability.

Deflation FOMO

In detail, the Terra ecosystem consists of a family of stablecoins pegged to a growing list of fiat currencies and a mining token, LUNA. LUNA serves as a governance token, volatility absorption tool, and rewards catcher through “seigniorage” and transaction volumes. 

The volatility absorption feature, in particular, proves to be the most bullish case for LUNA. Notably, the Terra ecosystem maintains its stablecoins fiat-peg by burning LUNA tokens. In other words, if the price of Terra’s native stablecoin TerraUSD (UST) goes above $1, the protocol burns LUNA to mint more UST, thus bringing its value back to $1.

Conversely, if the UST value goes below $1, the protocol swaps the stablecoin for LUNA to prop up its prices. With the Columbus-5 upgrade and Chiron’s $50-million fund promising to bring more projects to the Terra ecosystem, anticipations of more deflationary pressure on LUNA have been rising.

As Cointelegraph reported, UST stablecoin adoption is growing with its net supply hitting a new record high of $8.221 billion on Wednesday. On the other hand, according to TerraAnalytics, the Terra protocol has burned more than 104 million LUNA tokens ever since the Columbus-5 upgrade went live at the end of September. 

Talis’s $2.3M NFT marketplace

Bullish cues for LUNA before the Chiron announcement came in the form of Talis. The startup raised $2.3 million in funding led by ParaFi Capital and Arrington Capital to build an NFT marketplace on the Terra blockchain.

LUNA/USDT versus BTC/USD daily price chart. Source: TradingView

Two days after the announcement, LUNA rose nearly 13% to reach its new all-time high despite a major correction in Bitcoin (BTC), Ether (ETH), and most other cryptocurrencies. 

The views and opinions expressed here are solely those of the author and do not necessarily reflect the views of Cointelegraph.com. Every investment and trading move involves risk, you should conduct your own research when making a decision.

Bank for International Settlements States True Decentralized Finance Is an ‘Illusion’

bank for international settlements

The Bank for International Settlements (BIS), a finance organization comprised of several central banks, has stated that while the objective of decentralized finance is to move control of financial tools away from current financial institutions, it just provides an ‘illusion’ of doing so. The organization argues that there is some kind of centralization around governance tokens and that this extends to proof-of-stake (PoS) consensus chains.

Bank for International Settlements Criticizes Decentralized Finance’s Raison D’etre

The Bank for International Settlements (BIS), a group of central banks, has addressed the rise of decentralized finance applications and their current impact on capital markets. The bank has criticized cryptocurrencies before, and now, in its latest quarterly review, the organization issued a report called “Defi risks and the decentralization illusion,” where it questions the ethos of the sector, and declares there is no real decentralization in it.

The report states that the current implementation of defi has little to no influence in bringing financial freedom to the masses, as it is a self-contained environment. The report stresses:

At present, (defi) has few real-economy uses and, for the most part, supports speculation and arbitrage across multiple cryptoassets. Given this self-contained nature, the potential for defi-driven disruptions in the broader financial system and the real economy seems limited for now.

Decentralization Is an ‘Illusion’

Furthermore, BIS criticizes the way in which defi declares its total decentralization when compared to the traditional financial market. The organization argues that this decentralization is just an illusion and that the execution of defi today also carries centralization risks.

The report states that:

All deFi platforms have an element of centralization, which typically revolves around holders of “governance tokens” (often platform developers) who vote on proposals, not unlike corporate shareholders.

In addition, it makes the case for defi protocols to be considered legal entities due to this governance element. As most of the chains that host decentralized finance protocols are driven by proof-of-stake consensus algorithms, this also leads to some kind of centralization in the hands of big token bagholders.

Another interesting source of centralization, according to the review, are the growing links that the traditional finance world is establishing with these new protocols. This could cause spillover from traditional finance and from bridging companies to defi, affecting the operations of these protocols significantly.

What do you think about the latest report from the Bank for International Settlements, and its conclusions? Tell us in the comments section below.

Bitwise CIO Says $100K Bitcoin a Difficult Prediction to Make, Calls Ethereum the ‘Asset of the Year’

Bitwise CIO Says $100K Bitcoin a Difficult Prediction to Make, Calls Ethereum the 'Asset of the Year'

While there’s been an awful lot of calls for bitcoin to reach six-digits in value in 2021, as the end of the year draws closer, it doesn’t seem like $100K per bitcoin will happen. Bitwise Asset Management’s chief investment officer Matt Hougan told the press on Monday that “$100,000 by the end of the year is a difficult prediction to make.”

$100K Bitcoin Prices May Be Unattainable in 2021 — Bitwise Exec Says Next Year ‘Investors Are Going to Be Looking at Ethereum’

For a good portion of the year, many bitcoin advocates, experts, luminaries, and analysts predicted that bitcoin (BTC) would surely hit the $100K per unit range in 2021. One of the most popular forecasts belongs to Plan B, the creator of the stock-to-flow (S2F) bitcoin price model. Plan B said based on the pseudonymous analyst’s “worst case scenario for 2021 (price/on-chain based)” would be “Aug>47K, Sep>43K, Oct>63K, Nov>98K, Dec>135K.”

However, November’s price call missed and the $135K prediction looks like it will miss as well. Bitcoin would have to double in value over the next 24 days gathering a touch over 96% during that time. Plan B is not the only one that has predicted BTC could hit six-digits in USD value by the year’s end. The financial institution Standard Chartered predicted at the beginning of September that bitcoin’s value could reach $100K by the end of the year.

Yahoo Finance contributor, Javier David, said on October 21, that “suddenly, a bitcoin move to $100K doesn’t seem so farfetched.” In fact there’s a great number of analysts that have said that at some point in the future, bitcoin prices will touch the six-digit zone or $100,000 or more per unit. Speaking with Bloomberg’s Emily Chang, Bitwise Asset Management’s CIO Matt Hougan explains that bitcoin hitting $100K will be difficult in 2021. Hougan further explained that ethereum (ETH) was the “asset of the year” in 2021.

“I think as we look into 2022, we still have these fundamental drivers, the institutions we speak to every day at Bitwise,” Hougan explained. “$100,000 by the end of the year is a difficult prediction to make — I think $100,000 could be in target in 2022 but this year, I’m not so sure,” Hougan remarked.

Hougan Predicts an ‘Explosion of Activity Built on Ethereum’

As far as the second-largest crypto asset by market capitalization, ethereum (ETH), Hougan thinks 2021 was the digital currency’s year. While noting to Bloomberg’s Chang that ethereum was the “asset of the year,” Hougan also stressed that there will be an “explosion of activity built on Ethereum” next year. But investors will be looking at other smart contract blockchain networks as well, the Bitwise CIO said. Hougan added:

Investors are going to be looking at Ethereum, Solana, or Polygon. Investors are starting to realize there’s more to crypto than just Bitcoin. If there’s one bigger story for next year, it’s going to be everything else: crypto as defi, NFTs, Web3, or metaverse.

What do you think about the Bitwise CIO’s cryptocurrency predictions? Let us know what you think about this subject in the comments section below.