Archiv für den Monat: Januar 2023

Aave Protocol Fixes Exploit Debt with CRV Token Purchase

Summary of Article:
• Aave clears bad CRV token debt from Exploit Attempt.
• Protocol upgrade “Aave v3” is set to be activated.
• Avraham Eisenberg attempted to exploit the protocol resulting in $1.6 million of bad debt.

Table of Contents:
I. Introduction
II. Overview of Aave v3 Upgrade
III. Exploit Attempt by Avraham Eisenberg

Introduction:
Aave, a decentralized finance (DeFi) protocol, has eliminated the bad debt of 2.7 million curve dao tokens (CRV) from an exploit attempt made by Mango Markets exploiter Avi Eisenberg in November 2020. The maneuver was proposed and approved by Aave’s governance DAO prior to the activation of a major tech upgrade called Aave v3 which is set for launch on January 26th, 2023 at 6:30 pm UTC timezone and will bring about improved security measures to deter such attempts in future protocol versions. In this article we will discuss the details behind Aave’s decision to clear CRV token debt as well as provide an overview of upcoming changes with the new Aave v3 upgrade.

Overview of Aave v3 Upgrade:
Aave V3 is a major revamp for the DeFi lending platform that provides users with greater flexibility and enhanced security features designed to protect against malicious attacks like those initiated by Avi Eisenberg in November 2020 that resulted in millions in CRV token debt being cleared from the platform before its launch date later this month on January 26th, 2023 at 6:30 pm UTC timezone . The update includes several changes including a more robust liquidity pool system which allows users to quickly withdraw funds without having to wait for approval or verification; improved collateralization mechanisms that guarantee asset protection even if borrowers default on their loans; increased staking rewards so users can earn extra income while helping keep the network secure; and additional privacy options such as masking transactions data so it cannot be tracked or traced back to individual addresses making it difficult for attackers or malicious actors attempting similar exploits again in future . Furthermore, there are also plans for adding support for other mainstream digital assets like Bitcoin (BTC), Ethereum (ETH), Ripple (XRP), Binance Coin (BNB) and many more over time allowing more people access these services regardless their location around world thus further increasing adoption among investors looking diversify portfolios into alternative asset classes beyond traditional stocks bonds commodities etc..

Exploit Attempt by Avraham Eisenberg:
In November 2020, Avraham Eisenberg roiled Aave with a trading strategy involving borrowing tens of millions worth CRV tokens from platform without any collateral backing them up causing massive liquidation event after sudden price spike due short squeeze which left behind roughly $1 .6 million bad debt owed back then according analysis done EigenPhi DeFi data platform . Furthermore, it was found that liquidator who took over this position profited close $1 million thanks recent upswing crypto markets helped lead 98% gain since start year alone leading some speculate whether intent behind move was purely financial gain or something else entirely completely unrelated matter altogether remains be seen but one thing certain anyone taking risk investing should always take into consideration possible consequences their actions might have long run especially when dealing volatile investments like cryptocurrencies any other asset class out there today not just limited cryptocurrencies either stocks bonds commodities real estate etc.. all carry inherent risks involved must weighed properly order maximize returns while minimizing losses same applies here situation too can never guaranteed success no matter how much research done beforehand due unpredictable nature market itself so caution taken ensure safety capital investment soundness every single time involved anything related financial instruments anywhere world both online offline platforms alike ….

Maple Finance Plots Comeback with $100M Liquidity Pool: 10% Yield

Summary:
• Maple Finance is launching a new liquidity pool that will let firms receive cash advances on their tax rebates and other funding programs.
• The pool will offer an annualized yield of 10% with a minimum investment of $500,000 in USDC.
• AQRU and Intero Capital Solutions are managing the pool and serving as loan originator respectively.

Table of Contents:
I. Introduction
II. Receivables Financing Pool Offers 10% Yield
III. Maple’s Major Overhaul & Move Away from Uncollateralized Lending

Introduction:
Maple Finance, a blockchain-based credit marketplace, has unveiled a liquidity pool of trade receivables on Wednesday – its first step in bringing traditional financial investments onto the blockchain. This new initiative marks Maple’s comeback after defaults and major overhauls caused by FTX’s collapse back in September 2020 toppled some of the platform’s largest borrowers resulted in losses up to 80%. The company intends to move away from uncollateralized crypto lending toward yield-generating real-world assets for crypto investors via this new initiative.

Receivables Financing Pool Offers 10% Yield:
The new USDC stablecoin pool enables firms to receive cash advances with a discount on their tax rebates and funding programs such as Employee Retention Credit (ERC) from the Internal Revenue Service (IRS). Qualifying firms pledge their receivables as collateral which investors can then use to earn returns once they are transferred by IRS. The target yield offered by this liquidity pool is 10% annually without any lockup period or entry barriers for accredited investors such as institutional asset managers or decentralized autonomous organization (DAO) treasuries who must comply with know-your customer (KYC) and anti-money laundering checks before investing into it. Moreover, the pool can scale up to $100 million where AQRU might consider lowering the entry barrier once it reaches certain size limits. Furthermore, Maple provides the blockchain based technology while London-based public company AQRU manages it – referred to as ‘pool delegate’ – overseeing applying firms while managing loan books; Intero Capital Solutions serve as loan originator using funds borrowed from the pool itself for lending qualified companies within its network .

Maple’s Major Overhaul & Move Away From Uncollateralized Lending:

To ensure better control over risk management practices, maple launched a major protocol overhaul last month winding down most of its active lending pools leading towards move away from uncollateralized crypto lending which had earlier resulted in $52 million worth bad debts with 80 percent losses for select liquidity providers alike due to FTX’s spectacular collapse back in September 2020 . With current banking systems not providing enough security against defaulting creditors , Maple offers an alternative approach catering those risks via smart contracts backed by blockchain technology ensuring better transparency enabling lenders , borrowers & third party services like KYC/AML checks etc work together under one roof efficiently reducing transaction costs associated with manual processes thus making digital assets more attractive & securer than ever before offering higher yields compared to traditional banking products .

In conclusion , given all these features along with potential benefits like improved transparency , lower transaction costs etc ; this receivable financing product stands apart offering many advantages over traditional banking products paving way towards future digital finance ecosystem wherein people can access global markets securely earning higher yields eventually unlocking capital markets around world enabling inclusive economic growth for everyone involved all at same time .

Binance Launches Self-Trade Prevention Service for API Users

Summary:
• Binance has introduced a service to help API users prevent self-trading.
• The new feature will be available to Binance’s API users from Jan. 26 and is optional.
• Self-trading is considered a form of market manipulation.
Table of Contents:
Introduction
What Is Self-Trading?
Binance’s New Prevention Service
Conclusion

Introduction:
Cryptocurrency exchange Binance recently announced the introduction of a service to help its API users prevent self-trading on their platform. Self-trading, which is considered a form of market manipulation, can create the illusion of more activity than there actually is in the trading markets. The new feature from Binance will be available to its API users from Jan. 26 and aims to provide more security measures for traders on the exchange’s platform. In this article, we’ll explore what self-trading is and how Binance’s new prevention service works in order to help protect traders from potential losses due to market manipulation or other malicious activities.

What Is Self-Trading?
Self-trading occurs when two parties trade with each other in order to create an artificial increase in stock prices or volume traded on the exchange they are both trading on. This type of activity is seen as a form of market manipulation because it distorts the actual amount of activity taking place within that particular market, as well as potentially giving one side an advantage over another when it comes to profits made off trades executed during such periods of artificially inflated prices or volumes traded. Such types of activities can also lead to an increase in volatility within certain markets, making them riskier for investors who may not have full knowledge about what’s going on behind the scenes at any given moment in time. When done by large institutions with significant amounts invested across multiple exchanges, such actions can have far reaching consequences for individual investors and small businesses alike, which is why preventing self-trades has become increasingly important for exchanges like Binance that have high levels of liquidity and customer trust associated with their platforms.

Binance’s New Prevention Service:
In order address this issue, Binance has now announced its new optional Self Trade Prevention (STP) function which will be available starting Jan 26th 2021 for all its API users only; those using website or app won’t be affected by this update.. This feature will block any orders that would result in a self trade situation occurring between two parties on their platform and should provide some additional protection against potential losses due to fraudulent activities or market manipulations taking place at any given time within their network environment.. Additionally, STP also provides further assurance that all user data remains private while still allowing them access necessary information required when executing trades through APIs connected directly into their respective exchanges..

Conclusion:
By introducing this new function into its existing suite of services offered through APIs, Binance hopes that it will provide customers with greater peace of mind when investing across various markets linked up with its own network infrastructure without having worry about any potential threats posed by external actors trying take advantage unsuspecting investors through manipulative tactics like self trading.. It remains uncertain if other exchanges follow suit implement similar features themselves but regardless these developments show increased focus industry leaders towards ensuring safety integrity investments made digital assets today tomorrow.“

Circle’s $9B SPAC Deal Halted by SEC

Table of Contents
I. Introduction
II. Circle’s Plans to Go Public Via SPAC Deal
III. SEC Derails Circle’s Plans to Go Public

I. Introduction
Crypto payments company Circle recently announced its ambitious plans to go public with a valuation of around $9 billion, however their plans were derailed after the US Securities and Exchange Commission (SEC) declined to sign off on the deal. This article will cover the details of Circle’s proposed plan, how it would have gone public via a Special Purpose Acquisition Company (SPAC) and why the SEC declined to approve it. In addition, this article will also provide insights into what could happen in the future for crypto companies seeking to go public in the US markets.

II. Circle’s Plans To Go Public Via SPAC Deal
In July 2021, crypto payments company Circle announced its plans to go public with an initial valuation of $4.5 billion through a Special Purpose Acquisition Company (SPAC). A SPAC is basically a shell corporation that is created solely for the purpose of raising funds through an initial public offering (IPO) and then using those proceeds to acquire assets or other businesses within a specific industry sector or region. It provides an alternative route for companies who are unable or unwilling to pursue traditional IPO offerings due to stringent requirements set by regulatory bodies such as the SEC. It was reported that under this deal, Concord Acquisition Corp., which is a publicly-traded entity founded by former Microsoft executive Chris Luntz, would take control over 75% ownership stake in circle while existing investors would get 25%. In February 2022, when the company negotiated this new deal with Concord Acquisition Corp., its valuation doubled from $4.5 billion up to $9 billion reflecting improvements in its financial outlook and competitive position at that time period . However these dreams of going public did not come true as SEC declined signing off on it thus derailing any chances of success for this venture .

III .SEC Derails Circles Plan To Go Public
Circle said its plans didn’t go through because U..S Securities And Exchange Commission (SEC) did not sign off on it according to Financial Times report .This means that neither turbulent markets nor fearful investors were factors behind failureof their plan instead they attributed delay in registration process with S-4 registration document filed by them with SEC seeking permission offer new shares , causing them time crunch resulting their mutual termination agreement between parties involved i nthe acquisition process including Conccord ACquisition corp and circle itself alongwith other stakeholders involved in this transaction . Furthermore The spokesperson from Cirlce denied any blame put upon SEC by FT article saying „Circle has not and does not blame SEC for anything related transactions“ but rather stated , „Jeremy Allaire further stated on twitter that ‚SEC has been rigorous and thorough understanding our business many novel aspects of this industry.‘

CONCLUSION : Crypto Payments Company Circles ambitious plan got derailed as SEC refused signing off on it citing various reasons but none involving market uncertainties or investor fear among other things , though judgement still remains open regarding what impact could be seen over companies looking forward same prospects in near future

Cardano-Based Djed Stablecoin to Launch Next Week, Promises 400% Collateral

– Cardano-based decentralized stablecoin djed is set to launch next week, developed jointly by Cardano code maintainer IOG and Coti, a layer 1 blockchain.
– Djed requires more than 400% in collateral value to be posted before it is issued to a user for stability during market stress.
– SHEN holders receive extra rewards when holders of Cardano’s ADA cryptocurrency stake their coins to mint djed stablecoins.

The highly anticipated djed stablecoin is finally on track for its launch next week, as announced by the developers behind the token this Tuesday. Developed jointly by Cardano code maintainer IOG and Coti, a layer 1 blockchain, Djed seeks balance through an unconventional overcollateralized mechanism that requires more than 400% in collateral value to be posted before it is issued to a user. This would ensure that its value holds stably during market stress and prevent a repeat of terraUSD’s infamous fall over 99% in May.

Djed is expected to go live on over 40 Cardano-based decentralized finance applications (dapps) upon launch and will also come with DjedPay – a payments application that uses djed – allowing users to transfer the tokens to merchants and businesses. The Cardano dapp ecosystem currently locks up over $72 million worth of tokens according to DefiLlama data.

Meanwhile, holders of SHEN – which acts as the reserve token meant to support djed’s stability – will receive extra rewards when holders of Cardano’s native ADA cryptocurrency stake their coins into the smart contract used for minting new djeds. Developers have simultaneously developed a snapshot mechanism that allows SHEN holders track these rewards via an interface at djed.xyz website once everything goes live next week.

In other news related with the network’s operations, there was brief outage reported on Sunday which was automatically fixed within minutes with no singular root cause determined as of writing time according to GitHub post written by developers involved in maintaining the protocol.. Despite this slight hiccup though, ADA’s price has been holding steady so far today suggesting resilience for both its underlying network and native coin itself as we inch towards one exciting development after another!

Digital Surge to Repay Creditors After $33M FTX Loss: Aussie Crypto Exchange Bounced Back

• Digital Surge, an Australian cryptocurrency exchange, has been bailed out after creditors approved a long-term recovery plan.
• The Brisbane-based exchange had held $33 million on FTX, the cryptocurrency exchange that collapsed in November.
• A loan of 1.25 million Australian dollars from an associated business will allow the exchange to repay customers with under $250 in full and others at least 45% of their balance over five years.

Digital Surge, Australia’s leading crypto exchange platform, recently received a lifeline from creditors who have approved a long-term recovery plan. After holding up to 33 million USD worth of assets on the now defunct FTX Exchange – which shut down operations in November – Digital Surge was left struggling to stay afloat amidst a devastating crypto contagion that wiped out close to one trillion USD across all industry players. To rescue the Melbourne based investment firm KordaMentha was appointed as administrators and placed Digital Surge into voluntary administration – a process where control is handed over to licensed insolvency practitioners for financial assessment and restructuring purposes.

As part of the newly formed deed of company arrangement (DoCA), Digico, an associated business entity will be providing 1.25 million AUD in order to get things back up and running again while allowing customers with less than 250 USD worth of assets frozen since mid-November last year receive full payment while those with more can expect at least 45% return over the course of five years under this new agreement. Michael Bacina, partner at Piper Alderman also confirmed that this marks Australia’s first ever rescue package for troubled crypto exchanges following yet another tumultuous period for these digital asset firms post 2020’s bear market slump which saw multiple large entities file for bankruptcy protection during its aftermath. With this news however comes hope that other similar businesses may similarly benefit from such measures should they be faced with similar hardships in future endeavours going forward into 2021 and beyond..

Dogecoin and Ether Lead Crypto Market Pullback as Bulls Take a Breather

• The crypto market capitalization dropped by 3.5% in the past 24 hours after a decline in U.S. equity markets
• Ether and dogecoin led the slide among major tokens, with both dropping more than 5%, while bitcoin lost only 1.6%
• Traders liquidated around $173 million in longs, mainly from ether and bitcoin futures

The crypto market witnessed a pullback in the last 24 hours as traders took profits following weeks of an uptrend. CoinDesk data showed that market capitalization dropped by 3.5%, with Ether and Dogecoin being hit the hardest among major tokens, falling more than 5% each. Bitcoin was relatively less affected, losing only 1.6%. This sell-off caused liquidations worth around $173 million to be executed – most of which were from Ethereum and Bitcoin futures contracts.

Outside of majors, AVAX was down 7.7%, while LDO dropped over 10%. Both these tokens had experienced considerable gains recently – AVAX rose 135% over the last month alone – but succumbed to profit taking pressure this time around as well. There were a few outliers that managed to remain unscathed from this bearish sentiment, such as Quant (QNT) and Aptos (APT), both rising over 4%.

The fall coincided with a decline in U.S equities markets due to technical glitches at New York Stock Exchange (NYSE). Some analysts suggested that this could be just a breather for bulls after experiencing strong rallies over recent weeks driven largely by sentiment and low funding rates coupled with cascading short liquidations; however they warned that there are still few traders in the markets currently so it is best not to get too complacent yet about the bullish trend continuing onwards right away without any hiccups or pauses along the way .

Overall, investors would do well to remain aware of any potential risks when trading amidst such volatility and taking profits or losses at appropriate times can help them stay ahead of any sudden movements up or down across cryptocurrency markets going forward into 2021 & beyond

TechDeFi Sushi Passes 2 Proposals to Strengthen Treasury

• The Sushi community passed two governance measures in order to strengthen the DeFi service’s treasury and long-term staying power.
• The “Kanpai” proposal redirects all trading fees from xSushi holders to the Sushi treasury, while the other seeks to claw back unclaimed sushi tokens from a distribution held in 2021 back to the treasury.
• Liquidity providers have until Apr. 23 to claim their tokens before they are sent back to the Sushi treasury.

The Sushi community has recently voted on two separate proposals that aim towards strengthening its decentralized finance (DeFi) service’s treasury and long-term staying power. With an overwhelming majority of votes cast by token holders who staked sushipowah and xsushi – two of Sushi’s ecosystem tokens – in the project’s governance forums, both initiatives were approved.

Sushi is a protocol for providing financial services such as trading, borrowing and lending using smart contracts, which have allowed it to lock up over $459 million in tokens since its launch in 2021 – down from a lifetime peak of $7.5 billion at one point last year. The first measure passed was known as the „Kanpai“ proposal, which directs all trading fees generated by xSushi holders directly into the Sushi treasury instead of allowing them to receive 0.05% rewards as previously intended; this change is set for nearly one year until Dec 19 2023 when another reward system may be proposed and voted upon by users once again.

The second measure that was passed involved retrieving 8.2 million SUSHI tokens from an initial distribution held during SushiSwap’s launch phase in 2020; these rewards were given out to early liquidity providers who supplied assets into the platform but left more than 8 million unclaimed after six months had elapsed since then – with all unclaimed tokens being directed back into the Sushi Treasury post April 23rd if not claimed beforehand.. This decision will help bolster much needed funds for further development of projects under its umbrella such as projects like Uniswap or Kyber Network making it easier for new users to access these technologies without having prior knowledge or experience with blockchain technology itself

Crypto in 2023: DeFi, NFTs, and CBDCs Set to Take Center Stage

• Pantera Capital, a crypto-focused venture capital firm, has predicted that the future of crypto lies in decentralized finance (DeFi).
• The bear market of 2020 was worsened by the implosion of multibillion-dollar centralized exchanges and crypto lenders.
• Ripple’s SVP of Global Customer Success, Brooks Entwistle, is exploring crypto-based solutions for climate change.

Crypto-focused venture capital firm Pantera Capital has released its predictions for the future of digital currency in 2023, and the focus is on decentralized finance (DeFi). With about $3.8 billion in assets under management, the firm has identified DeFi as the future of crypto, believing it will promote greater transaction fees, liquidity, and usability.

The past year has seen a number of headline-grabbing exploits and bankruptcies which have contributed to a bear market that has had a dampening effect on the industry. In particular, the implosion of multibillion-dollar centralized exchanges such as FTX and the filing of crypto lender Genesys have had a significant impact on the market.

In light of this, Ripple’s SVP of Global Customer Success, Brooks Entwistle, has been exploring ways in which crypto-based solutions can be leveraged to tackle climate change. As part of this initiative, Entwistle has partnered with blockchain firm Solana and the Global Blockchain Business Council to develop solutions which will benefit not only the crypto industry but the environment as well.

Entwistle has also made predictions for 2023, with a focus on the real-world utility of non-fungible tokens (NFTs) and central bank digital currencies (CBDCs). He believes that these will play a key role in the future development of cryptocurrency, as they have the potential to revolutionize the way people transact and interact with digital assets.

In addition, Pantera Capital has identified a number of trends that it believes will shape the future of crypto over the coming year. These include the increased use of DeFi, the growth of the decentralized finance ecosystem, and the ongoing development of security protocols and blockchain technologies.

With the future of cryptocurrency looking promising, it is clear that Pantera Capital’s predictions are well-informed and based on sound reasoning. As the industry continues to evolve and develop, it is likely that these trends will become more prominent over the course of the next year. It will be interesting to see how the industry responds to the changes that are likely to occur over the course of 2023, and how these changes will affect the future of cryptocurrency.

Argo Blockchain’s Stock Surges 14% After Regaining Nasdaq Listing Compliance

• Argo Blockchain’s (ARBK) shares rose 14% on Monday after regaining Nasdaq listing compliance.
• The company was able to avoid bankruptcy in late December with a deal with Galaxy Digital.
• The miner met the requirement to remain listed on Nasdaq after bids for its shares remained above $1 for 10 consecutive days.

Argo Blockchain, the cryptocurrency mining company, has seen a surge in its stock price after regaining listing compliance with Nasdaq. The miner was able to avoid bankruptcy in late December with a deal with Galaxy Digital.

The miner, whose shares are also listed on the London Stock Exchange, said it met the requirement to continue listing its shares on Nasdaq on Jan. 13, after bids for its shares remained above $1 for 10 consecutive days. This announcement led to a jump of 14% in its share price.

In December, the miner’s stock price had plummeted to as low as $0.38, partly due to the crypto winter which weighed on the price of Bitcoin. This prompted Nasdaq to notify Argo that its shares didn’t comply with rules to be listed in the exchange because closing bid prices for its stock were below $1 for 30 consecutive days. The company was given until June 12 this year to regain its listing privileges with Nasdaq before potentially being delisted from the exchange.

To help make up for the lack of funds, Argo Blockchain entered into a deal with Galaxy Digital, under which the latter purchased a portion of the miner’s stock for $2.5 million. This helped the miner stay afloat and regain compliance with Nasdaq.

Since then, Argo Blockchain has been able to maintain its stock price over the $1 threshold, and the miner was able to regain compliance with Nasdaq. This has been a major boon for the miner, as it now has access to a larger pool of investors, which will help the company expand its operations.

The surge in Argo Blockchain’s stock price is also a positive sign for the cryptocurrency industry, as it indicates that investors are still interested in the sector despite the market downturn. This could be a sign that the crypto winter is slowly thawing and that the sector is slowly regaining its footing.

Overall, Argo Blockchain’s success in regaining its Nasdaq listing is a welcome development for the cryptocurrency industry. The miner’s stock price surge is a sign of renewed investor confidence in the sector, which could be a sign of better times ahead.