Union Finance is providing a tailored solution which will provide protection from risks and reduce costs in decentralised finance (DeFi).
What is Union Finance?
Union Finance is a technology platform that combines bundled protection and a liquid secondary market with a multi-token model. The Union platform guarantees full-stack DeFi protection to all users as it seeks to reduce the risks and cost within DeFi ranging from Layer-1, smart contract, transaction completion risks, and exposure.
Since its introduction, Union finance has had a considerable impact in the cryptocurrency space and is composed of experts with years of experience in their respective sectors. Unionâs protocol offers a unique combination of traditional insurance and the blockchainâs tremendous efficiency through its broad coverage and costs-savings model specific to the DeFi sectorâs needs.
Union Finance features (Image credit: Union Finance)
Similarities With Traditional Insurance
Furthermore, Unionâs algorithm addresses the apparent break between DeFi and CeFi unlike any other blockchain-based solutions as it provides protection to various layers of coverage and segregated underwriter exposure, with a multi-token protocol that cleanly separates governance from the market dynamics of protection buying and writing.
Similar to traditional insurance companies, the Union Protocol prides itself on total protection and coverage under their blockchain-based bundled insurance packages. However, the platform takes it further, by utilizing the blockchain concept of decentralization, freeing the platform from âmembers onlyâ models and KYC requirements. Furthermore, Union offers an effective governance process to safeguard the validity of claims and the solvency of pools to meet coverage applications.
DeFi-Related Risks
Unionâs team also offers a secondary market enabling the management of DeFi-related risks which facilitates the protection of traders and protection writers within the DeFi ecosystem. Additionally, this frees up capital and distributes risk, allowing the DeFi sector to scale more efficiently while reflecting the current market trends.
The blockchain solution has a distinct economic model that has sustainably grown the decentralized ecosystem, along with a capital and pricing model that balances the supply and demand curves while adapting dynamically to economical conditions set by the market and keeping transparent reporting of financial and risk key performance indicators (KPIs) to create trust and increase adoption of the protocol.
Three-Token Model
Overall, Union Finance’s DeFi protection platform is managed through a three-token system comprised of the UNN, uUNN, and pUNN tokens.
Union Finance’s 3 token model (Image credit: Union Finance)
UNN Token
UNN is the core token of the financing platform as it is used for governance purposes. UNN users are granted voting rights within the company, giving them influence on protection claims and related conflict resolution protocols, adjusting risk parameters, and adjusting incentive programs, etc.
uUNN and pUNN Tokens
As for the uUNN token, it is used by clients of the platform and protection buyers enabling them to impact the platformâs protection policies. The pUNN token on the other hand is given to writers of the protection, representing a percent share of the protection pool that the writer is powering.
uUNN and pUNN tokens are only available on Unionâs secondary market, which guarantees the separation of governance tokens from protection tokens, preventing a conflict of interest within the platform.
Additionally, through the three-token based system, Union finance enables users to benefit from a dynamic and unique pricing model for the protection premium that provides an efficient and real-time price discovery mechanism, as well as a capital model that adjusts leverage, which maximizes solvency of protection pools while providing returns through surplus capital. Furthermore, a multi-layer governance, claim, and challenge mechanism ensures all operations are handled fairly and transparently.
Key Components of Union Finance
Buyer Protection
A protection contract is automatically generated as a buyer purchases a protection product(s) on the platform. Upon purchase, each contract specifies the:
type of protection â this identifies which protection pool writes the protection and in return, earns the premium;
the cover amount;
the term of the insurance (start date/end date); and
the premium level.
The purchase of the protection contract is confirmed when buyers receive uUNN tokens which demonstrate their right to the token protection policy. Then, the protection protocol will begin later after the premium is deposited or the start date of the protection contract. Buyers who stake UNN tokens through reliable decentralized exchanges (DEX) like Uniswap will receive a discount in the protection premium.
Capital Model
The capital model is a fundamental component that optimizes the leverage of protection writers, locking capital to meet solvency based on stringent standards used in insurance and finance while providing economic incentives that attract protection writers and help fund ecosystem development. Additionally, protection writers can use their pUNN tokens and stake for more UNN, enabling them to share in a small portion of UNN that accrues every block.
UNN Staking
UNN holders can stake their holdings to earn additional UNN through liquidity mining, which is split into two distinct categories; liquidity providers and locked tokens for governance purposes. Union will soon allow UNN holders to provide liquidity on different DeFI ecosystems such as Uniswap. As for the second category, UNN users will have control over decisions regarding the future of the UNN token through the decentralized governance process.Â
Conclusion
Union Financeâs arrival to the DeFi sector came at a time when the potential risks and problems DeFi users have been facing on a daily basis have become too overwhelming. Thankfully, the platform simultaneously manages to resolve those risks through its distinct ecosystem and protection products.
Union Finance protocol has the potential to elevate the DeFi sector by further impacting and empowering investors within the blockchain, as it decreases the barriers to entry for retail users and lays the foundation for institutional investors, thereby creating a trustworthy DeFi ecosystem.
Disclaimer: Cryptocurrency trading involves significant risks and may result in the loss of your capital. You should carefully consider whether trading cryptocurrencies is right for you in light of your financial condition and ability to bear financial risks. Cryptocurrency prices are highly volatile and can fluctuate widely in a short period of time. As such, trading cryptocurrencies may not be suitable for everyone. Additionally, storing cryptocurrencies on a centralized exchange carries inherent risks, including the potential for loss due to hacking, exchange collapse, or other security breaches. We strongly advise that you seek independent professional advice before engaging in any cryptocurrency trading activities and carefully consider the security measures in place when choosing or storing your cryptocurrencies on a cryptocurrency exchange.
Ethernity Chain is a blockchain-based platform that deals with limited authenticated NFTs from top artists and with endorsements from popular figures in the sporting and entertainment scene.
Although Bitcoin concentrated on hedging away from government-issued currencies, its blockchain technology opened a much bigger world of possibilities. For example, Ethereum tapped into the technology to build a decentralized computer and power decentralized applications (Dapps). Next came decentralized finance (DeFi). Non-fungible tokens (NFTs) then followed suit.
However, most NFT projects concentrate on the broad digital artwork space. Consequently, they fail to address specific problems in any of the artwork subsections. This leaves room for platforms such as Ethernity Chain to take over. Below is a detailed overview of the platform and what it brings to the NFT ecosystem.
Table of Contents
Background
Ethernity Chain is a community-focused project that banks on artworks from top artists and stars. The project’s team is led by Nick Rose Ntertsas, the platform’s founder and chief executive officer.
What is Ethernity Chain?
Ethernity Chain deals with limited authenticated NFTs from top artists and with endorsements from popular figures in the sporting and entertainment scene.
Its vision is to raise funds for charitable causes while at the same time keeping NFT creators motivated. The charity offerings ride on the project’s for-profit status that allows it to design services for more users compared to non-profit themed networks.
Apart from charity, Ethernity Chain provides a crucial connection between non-fungible tokens and the wider DeFi industry. Consequently, it enables increased access to rare and collectible virtual artworks designed by reputable artists and features respected public figures. Notably, featured celebrities must approve the NFTs using a digital signature, known as aNFTs.
What are aNFTs?
aNFTs are authenticated non-fungible tokens- a unique creation of Ethernity Chain. These aNFTs are authenticated by the creator so that purchasers or traders know it is officially endorsed by them.
Users can buy these aNFTs using Ethernity Chain’s native token, known as ERN. ERN can be purchased on the market or earned when users LP stake and earn ERN and use these rewards to purchase aNFTs.
“Welcome to the internet” limited edition aNFTs for sale on Ethernity Chain (Image credit: Ethernity Chain)
Here, NFTs have a community focus and employ a lottery model. Notably, these packs have a minimum and maximum price of $50 and $300, depending on rarity. The Ethernity Chain team curates all the collectibles in this category.
To awaken collectors’ taste buds, the team hides rare NFTs inside random packs, and collectors won’t know what’s inside before purchase. Also, the packs are available at different times on the network. Interacting with this product requires the platform’s native asset, ERN. Note that Ethernity Packs have a connection to STONES.
STONES
STONES is a product earned through staking the native token. In other words, it’s a farm-only offering. The farming process involves interfacing your MetaMask wallet with Ethernity Chain using the Ethernity.io platform.
Note that one ERN coin gives its holder 1000 STONES when locked in the farming contract for one day. Unfortunately, STONES are indivisible. As such, if you unlock your ERN tokens before the completion of the staking cycle, you end up with no rewards.
Additionally, STONES cannot be transferred from the farming contract, have no monetary bearing, and can’t be swapped with ERN or Ethereum (ETH). This leaves them exclusively for exchanging with a select number of NFTs on the protocol.
March 24, 2021, marks the first STONES farming spree, with the second slated for the end of April the same year.
Ethernity Chain ($ERN) Staking and Rewards
Ethernity Chain runs a staking program for liquidity providers. However, the rewards go to those who choose to interact with the ERN/ETH pair on Uniswap. Staking has a lockup period of 30 days, after which the pool is restarted. The annual percentage yield (APY) for staking fluctuates between 100 and 300% and has a monthly payment plan.
How the ERN staking process works
First, deposit tokens in Uniswap’s V2 ERN/ETH pair.
In return, the decentralized exchange (DEX) issues LP tokens equivalent to your stake in the pool.
Next, access the staking option on Ethernity and connect your wallet address that holds the assigned LP tokens. Then, approve and lock the tokens into the staking contract known as the Liquidity Reward Program.
Note that Ethernity Chain ties the unstaking event with claiming ERN. As such, unstaking automatically claims the native asset.
Staking rewards are calculated by dividing the amount of LP tokens a staker has in the contract with the total amount of LP tokens padlocked in the staking contract.
Ethernity Chain ($ERN) Tokenomics
The total ERN supply is 30 million tokens. Token distribution includes to team/advisors (20%), partnerships (8%), expansion (6%), staking/rewards (12%), and reserves (15%). Also, there’s a 30.6% allocation to private price sale, 3.33% to a public initial digital offering (IDO), and 5% to liquidity.
However, some of the allocations have different freeze and unlock times. For example, the private sale has a two-month vesting period, while distribution to partnerships has 14 months vesting time.
Ethernity Chain Strategic Partnerships and Investments
Ethernity has its eyes set on interacting with the larger cryptocurrency industry. As such, it has inked notable partnerships with major firms building different products. For example, the protocol partnered with Kenetic, a reputable global blockchain-focused firm working to drive the adoption of decentralized protocols by offering investments, technology, tech, and advisory services. Kenetic’s managing partner, Jehan Chu, believes “NFTs are the true missing link between online and offline objects.”
They have also partnered with Chainlink by integrating Chainlink’s oracle solution to secure the minting and pricing of aNFTs.
Another notable partnership is with Terra Virtua, an inter-blockchain NFT protocol. Terra Virtua, through its Terra Virtua Kolect platform, provides a tailor-made marketplace for NFT collectors and creators on the web, mobile, and PC environments.
Conclusion
With a growing NFT ecosystem, Ethernity Chain provides a specific solution to the sector. For example, its focus on authenticated digital artworks gives collectors assurance of rarity, among other things.
Notably, the works are authenticated by globally renowned individuals such as Tony Hawk, a skateboarding legend, and Fernando Tatis Jr., a high-profile baseball player. Also, partnering with major firms like Terra Virtua and Kenetic boosts its vision in the future of the non-fungible industry. (https://www.smallhandsbigart.com/)
Also, other hidden gems inside Ethernity Chain Packs keep the collector’s hope alive. STONES add fun to the NFT farming while staking allows liquidity providers to earn rewards.
Disclaimer: Cryptocurrency trading involves significant risks and may result in the loss of your capital. You should carefully consider whether trading cryptocurrencies is right for you in light of your financial condition and ability to bear financial risks. Cryptocurrency prices are highly volatile and can fluctuate widely in a short period of time. As such, trading cryptocurrencies may not be suitable for everyone. Additionally, storing cryptocurrencies on a centralized exchange carries inherent risks, including the potential for loss due to hacking, exchange collapse, or other security breaches. We strongly advise that you seek independent professional advice before engaging in any cryptocurrency trading activities and carefully consider the security measures in place when choosing or storing your cryptocurrencies on a cryptocurrency exchange.
KeyTango is an investment solution built on Web3 technologies that function as a gateway for DeFi products and services.
While the decentralized finance (DeFi) market is growing, the struggle to keep up is getting bigger for many users. And sometimes, because of so many rug-pulls in DeFi, scam tokens, and underdeveloped projects in this space, people choose to avoid it altogether. KeyTango is a solution to these concerns.
KeyTango offers a one-stop shop for various, reputable, and secure DeFi projects to minimize the risk that a new cryptocurrency holder or trader absorbs. It also offers learning options that can help anyone better understand what DeFiâs underlying concepts and technicalities actually mean.
Background
The growth of DeFi projects has been outstanding, posting 725% growth within just 3 months. However, there are still a lot of investors who are unfamiliar with how the ecosystem functions. Most of the new retail traders find themselves into sketchy projects that claim to be DeFi, only to find out later that these projects cannot actually deliver their promise.
KeyTango is developed with the help of experts from cryptocurrency, financial technology, and investments. The project is also supported by many Outlier Ventures staff members as their angel investors. The goal of the team behind it is to introduce an easy-to-use, Robinhood-like platform, where users can easily trade in the DeFi space within just a few clicks.
What is keyTango?
KeyTango is a Web3-based investment solution that functions as a gateway for DeFi products and services. It is connected with multiple projects on a variety of DeFi markets. This gives users a wide selection of financial tools to choose from if they are looking for ways to maximize the capacity of their assets in making a profit.
KeyTango features a user-friendly interface for any cryptocurrency or DeFi user and focuses on three main goals: discover, learn, and invest.
Moreover, the platform offers its users a tailored recommendation on the products they could access based on the history of their activity on the wallet they linked. This makes it easier for the users to choose which asset fits their profile and easily avail of the products and services in the instruments suggested for them.
Discover
One of the things KeyTango gives to its users is exposure to different DeFi products, such as yield farming and liquidity mining. The platform is backed by a team of investment experts and venture capital managers. More than that, any product posted on the application is carefully curated by MIT and Y-Combinator Alumni, which assures users that the DeFi projects they discover through the protocol are guaranteed of good quality and reputation.
Learn
To address the problem of most cryptocurrency holders who do not completely understand some of the complex DeFi projects that they could potentially benefit from, KeyTango introduced a âLearnâ layer on the application. Every technical knowledge that any user would need to know will be made accessible on this part of the platform.
Invest
Once a user has already understood what it means to put their assets in DeFi, from how they can earn yields to DeFi protocolsâ underlying risks, they can easily use the platform to start their investments. The process is simple. Users just need to link their cryptocurrency wallet.
Products
Liquidity Pools
Users who are looking to put their idle assets in a liquidity pool can now easily do so using the platform. In this product, a holder of a token can supply them to the liquidity of any supported decentralized exchange (DEX) to earn additional tokens from trading fees.
DeFi projects have their own native utility tokens. Holders of these tokens earn rewards for keeping them and using them to participate in the networkâs activities. What yield farmers do is they stake their tokens to DEXs where these utility tokens are traded and supply their liquidity there.
This way, they can also earn rewards in the form of the token that they supplied liquidity to. There are various yield farming protocols in the market today, however, they can be too difficult for others to access because due to the challenges is finding a safe platform. KeyTango makes it a safer opportunity for investors since they have also curated the projects they support on the application.
DeFi Trading
DeFi applications that offer spot trading and leveraged trading functions can be easily found in KeyTango. In these platforms, users will be able to access exchanges powered by automated market makers (AMM). Some of the platforms that are known for this product are 0x, Aave, and Sushiswap.
Derivatives and Other Products
As the DeFi economy continues to grow, KeyTango will also adapt accordingly. The application will be working on providing access to new DeFi opportunities such as NFTs, derivatives, and many others.
TANGO
TANGO is the platformâs native, utility token. It can be used to pay for the protocolâs transaction fees and to participate in the platformâs governance functions. A portion of TANGOâs total supply will also be allocated to the community treasury.
Staking
The platform will have four staking pools: Earlybird Staking, Pro Staking, Expert Liquidity Mining ETH, and Expert Liquidity Mining USDT. They have specific maturity periods and pool sizes which users can see in the interface. Users can also have an estimate of their potential profit as the pools also indicate their APY for each one.
Some of the staking options available on keyTango (Image credit: keyTango)
Conclusion
KeyTango is a project that the whole DeFi space could benefit from. Having assembled a team of experts to curate the projects that will be made available on the platform provides a tremendous advantage. More than the minimization of risks and breaking the psychological barrier that keeps people from adopting DeFi, it also raises the awareness of the public as to what DeFi can offer.
This is why the project is a promising complement to the DeFi ecosystem. Getting people to understand how DeFi works and enabling a way to easily supply their assets in the best projects available can be a huge boost when it comes to achieving wider adoption.
Decentralised Finance (DeFi) series: tutorials, guides and more
With content for both beginners and more advanced users, check out our YouTube DeFi series containing tutorials on the ESSENTIAL TOOLS you need for trading in the DeFi space e.g. MetaMask and Uniswap. As well as a deep dive into popular DeFi topics such as decentralized exchanges, borrowing-lending platforms and NFT marketplaces
More videos and articles are coming soon as part of our DeFi series, so be sure to SUBSCRIBE to our Youtube channel so you can be notified as soon as they come out!
Disclaimer: Cryptocurrency trading involves significant risks and may result in the loss of your capital. You should carefully consider whether trading cryptocurrencies is right for you in light of your financial condition and ability to bear financial risks. Cryptocurrency prices are highly volatile and can fluctuate widely in a short period of time. As such, trading cryptocurrencies may not be suitable for everyone. Additionally, storing cryptocurrencies on a centralized exchange carries inherent risks, including the potential for loss due to hacking, exchange collapse, or other security breaches. We strongly advise that you seek independent professional advice before engaging in any cryptocurrency trading activities and carefully consider the security measures in place when choosing or storing your cryptocurrencies on a cryptocurrency exchange.
Collateral Pay is a decentralized payment system that merges decentralised finance (DeFi) with Traditional Finance (TradFi), enabling users to store, stake, loan, save, and pay with crypto.
Since its inception, DeFi has aimed to give participants a better alternative to traditional financing. Reliance on centralized parties is being replaced with decentralized and transparent systems. This is achieved by building digital services in an open, secure, and permissionless manner.
Additionally, the rise of  DeFi has been nothing less than tremendous. DeFi has grown exponentially and has open the world to new financial opportunities. A year ago, the monetary value locked in DeFi projects was $276 million. As of today, it is a whopping $43.6 billion in value.
However, unlike fiat, it is a bit difficult to make use of crypto assets outside of their respective blockchains, as there is an absence of âgateways to the real worldâ. Collateral Pay is that gateway that facilitates this process by bridging DeFi and mainstream finance.
Background
Set to launch its marketplace this May 2021, Collateral Pay is an ambitious project supported by more than 12 well-known firms within the blockchain space. The team behind the project is composed of longtime veterans in marketing, blockchain technology, and finance. CEO and founder Chris Longden guarantees that the protocol offers users a much more tax-efficient opportunity.Collateral Pay is described as an ecosystem that works faster and better than any solutions in the market providing participants with an efficient implementation of blockchain.
What is Collateral Pay?
Collateral Pay is a Polkadot-powered decentralized payment method that merges DeFi with the traditional finance sector. The protocol enables users all around the world to store, stake, loan, save and pay. The crypto solution is a payment gateway accessed through an interoperable crypto wallet, granting access to spending power by using crypto as collateral at the point of sale.
Furthermore, under Collateralâs unique algorithm, users are allowed to unlock and make use of their crypto assets without the need of selling them. Interestingly, crypto assets will be used as collateral against merchant payments by users for liquidity.
Overall, Collateralâs secure ecosystem is supported by a P2P network of borrowers and lenders where all transactions are conducted on-chain. Here, lenders stake crypto assets in staking contracts and receive generous APYs in return.
This thorough process is quick and easy, giving users access to instant spending power where assets are used as collateral from the very first point of sale. Precisely, Collateral Pay automatically evaluates at the point of sale the specific amount of digital currency to be bound in a smart contract. This facilitates the payment, and once locked, the fiat equivalent is instantly sent to the seller, legitimizing the transaction.
Ultimately, Collateral users will be able to leverage crypto assets autonomously, not needing loan drawdown facilities, saving time, and facilitating everyday crypto transactions. The platform is set to be a market leader through its efficient protocol that facilitates purchases in-store and online using crypto as collateral through its worldwide network of merchants. The platform aims to soon compete with prominent solutions like Worldpay, Visa, and Mastercard.
By leveraging Polkadotâs cross-chain technology, Collateral is set to also seamlessly connect with Ethereum, Bitcoin, and Binance Smart Chain by Q3 2021, with the possibility of additional blockchain compatibility over time
Decentralized Payment Gateway
The platform offers clients several special tools, allowing users to enjoy their crypto experience in total security under Collateralâs ecosystem.
Save
Collateral Save provides clients with a continuous flow of passive income by staking digital assets in smart contracts that are lent to borrowers, where up to 60% of APY rewards are earned. Overcollateralized crypto assets are used to ensure the security of all staking contracts. Furthermore, powered by chainlink, the platformâs oracles monitors all collateral crypto prices to ensure the collateral-to-value (CTV) level is maintained, protecting both borrowers and lenders.
Pay
Under Collateral pay, participants can pay for services by using the platformâs application or online. Users can simply scan a QR code and lock crypto as collateral. Then, merchants will receive funds directly from Collateral in fiat. The fiat will then be repaid at any given time to unlock the digital assets again.
Loan
Through loans, Collateral pay gives users the possibility to finance larger purchases, where sellers or merchants are not involved in the transaction. In general, these larger purchases tend to have the lowest CTV on the market. Hence, users simply have to select the amount they seek to borrow, then lock up the required cryptocurrency to receive funds in a native currency of their choice.
Merchant
The Polkadot-based protocol will provide merchants with a brand new market of crypto holders who once were unwilling to take the risk of losing potential upside. The platform will allow merchants to sell goods and services, and receive native currency payments safely within the Collateral pay ecosystem.
Govern
The blockchain platform will almost be entirely run by token holders who will have an active role in the protocolâs governance system and decision-making processes.
Collateral Pay Tokens ($COLL) and ($COLLG)
COLL is the utility token for the Collateral protocol while COLLG is the platformâs governance token. Both tokens work hand in hand, as users can earn COLLG tokens by staking COLL tokens. This will allow them to participate in the platformâs governance and influence Collateral Payâs future.
Additionally, staking COLL also allows users to receive more COLL as token rewards from the product fees generated on the platform while liquid provider tokens can be staked to provide liquidity to the ecosystem and earn additional COLL.
There is currently 2,800,000 COLL circulating in the market, with a total supply of 50,000,000 and an initial market cap of USD$1,120,000.
Collateral Pay is a unique payment method, that relies on the efficiency of the Polkadot ecosystem to successfully bridge DeFi and the traditional financing sector. Through this decentralized algorithm, users are sure to gain upon every crypto transaction, offering potentially 100% satisfaction to all customers.
Upon its imminent expansion, Collateral Pay is sure to disrupt the DeFi space and further blockchain adoption worldwide. The platformâs key features ensure a smooth and secure blockchain experience for all participants.
Decentralised Finance (DeFi) series: tutorials, guides and more
With content for both beginners and more advanced users, check out our YouTube DeFi series containing tutorials on the ESSENTIAL TOOLS you need for trading in the DeFi space e.g. MetaMask and Uniswap. As well as a deep dive into popular DeFi topics such as decentralized exchanges, borrowing-lending platforms and NFT marketplaces
More videos and articles are coming soon as part of our DeFi series, so be sure to SUBSCRIBE to our Youtube channel so you can be notified as soon as they come out!
Disclaimer: Cryptocurrency trading involves significant risks and may result in the loss of your capital. You should carefully consider whether trading cryptocurrencies is right for you in light of your financial condition and ability to bear financial risks. Cryptocurrency prices are highly volatile and can fluctuate widely in a short period of time. As such, trading cryptocurrencies may not be suitable for everyone. Additionally, storing cryptocurrencies on a centralized exchange carries inherent risks, including the potential for loss due to hacking, exchange collapse, or other security breaches. We strongly advise that you seek independent professional advice before engaging in any cryptocurrency trading activities and carefully consider the security measures in place when choosing or storing your cryptocurrencies on a cryptocurrency exchange.
Base Protocol ($BASE) created a token with a value pegged to the total market capitalization of every cryptocurrency available in the market. The purpose is to diversify a personâs investments and expand their exposure to a lot of cryptocurrencies that they would not have otherwise availed from existing traditional investment vehicles.
This has helped investors because trading on the cryptocurrency market has always been challenging. Especially when the performance of some coins varies a lot from each other. There are big gainers and big losers. In addition, choosing which digital currency to invest in can be truly difficult at times considering their inherent risks. Fortunately, Base Protocol’s token aims to solve this problem.
Learn more about Base Protocol and how rebasing works in our debate with Nick Ravanbakhsh, co-founder of Base Protocol.
EPIC Debate: Are “Rebases” Useful Financially? – With Base Protocol
Background
Nick Ravanbakhsh and Dylan Senter, founders of the Base Protocol, started the project to address the lack of a crypto index fund product for the cryptocurrency market. They came up with the idea to establish a basket of digital assets that track the market.
Both of them are also co-founders of Spectiv, a digital token designed as a rewards system for content creators, aiming to do away with the advertising intermediaries like YouTube or Facebook.
Base Protocolâs key team members also include Chris Peña (Head of Development), who has over 10 years of experience being a developer for systems that span multiple industries,and Based McGee (Head of Development â Solidity), who has 10 years of experience being a software engineer.
What is Base Protocol?
Base Protocol is an Ethereum-based synthetic token that has its price derived from the value of all digital assets in the cryptocurrency market. You can think of it like a stock index. It functions as a trading vehicle where the price is dependent on the movement of all other stocks held in its particular market.
Through Base, investors can participate in the cryptocurrency market with the Base Protocol index mitigating risk.
Rather than simply speculating on the numerous cryptocurrencies that pop up almost daily, investors can spread their risk by simply investing in Base Protocol. This means that they can have a stake in every successful coin, at the same time, have a more balanced risk exposure.
And for as long as the cryptocurrency market continues to grow, you cannot lose. Basically, this project is geared to those who believe in the nascent industryâs long-term potential.
Features of Base Protocol
Base Protocol as a Synthetic Asset
A synthetic asset in finance is a tool designed to produce the same effects as investing in another asset (called the underlying asset). However, it also alters the key characteristics of the underlying asset.
This is effectively the engineering mechanism behind the Base protocol, which is a synthetic asset that simulates the performance of the cryptocurrency market. To do this effectively, it is built with some important features in place.
Elastic supply
BASEâs value is designed to be the combined value of all cryptocurrencies in the market at a ratio of 1:1 trillion. Hence Base Protocol is built to always achieve equilibrium with the market cap of all cryptocurrencies (target price). This means that its supply could also change depending on the current state of the market. Through its rebasing method, BASE could ensure that it can reconcile the difference between the value of its coin and the total market cap for cryptocurrencies.
Rebasing- how does it work?
Rebasing is the term used for the process by which a synthetic asset’s price is restored in equilibrium to the underlying asset. BASEâs rebasing mechanism adjusts its total supply until the market price reaches the target price.
While this protocol functions to ensure that the market price of BASE always correlates with the target price â it often only manages to influence the corrections. It is left to market actors to respond to rebases to correct prices.
t0 â An investor buys 1 BASE with a market price $1
t1â The market price of BASE goes up to $2 â out of sync with the target price of $1
t2 â To restore the market price’s equilibrium to target price, BASE’s total supply is adjusted in proportion to the difference. This is a “rebase”, and the process is called a “rebase event”.
t3 â Regardless of the rebase event, the investor’s net $ balance and his percent ownership of the total supply are always constant.
BASE Token ($BASE)
Baseâs token ($BASE) is the token associated with the Base Protocol index and is both itself a cryptocurrency and a measure of the cryptocurrency market as a whole. It serves as a trading instrument that enables individuals to make investments based on the whole cryptocurrency market, instead of just a single or few digital asset selections.
BASEâs value follows the ratio of 1:1 trillion, based on the whole market cap for cryptocurrencies. For example, if the market cap is at $800 billion, the value of one BASE is $0.80.
The protocol is based on the Ethereum blockchain and can be bought on Uniswap. The price feed uses Chainlinkâs decentralized oracle network.
Base Protocol dashboard (Image credit: Base Protocol)
While BASE is becoming more popular as an investment instrument, it can serve other specific purposes too. Here are some of the other features that the $BASE token can be used for.
Uses for $BASE token
Price Reference
Traders trying to analyze the potential movement of a particular coin could track its price with the value of BASE to determine how they fare against the whole crypto market. This can even be better than just comparing altcoins with BTC because it shows an overview of the whole crypto economy.
Hence $BASE is intended to be a single token that allows an investor to speculate on all crypto assets simultaneously. This way, they don’t have to buy any specific coin or invest in a select few and can spread their stake across the entire industry.
As long as the investor is optimistic about the industry’s future, they can invest in the market as a whole.
Safe Haven
According to the Team, purchasing BASE allows holders to make safe investments, instead of just selecting a single digital asset.
This is because cherry-picking cryptocurrencies into a portfolio opens the investor to the risk of loss â seeing how volatile the market can be. People might also miss out on the emergence of the rapid rise of any new currency.
By investing in $BASE, however, the idea is that one can mitigate the risk of exposure of individual coins while enjoying the rest’s potential gains.
Price Reference
As a market tracker, BASEâs price is indicative of the total market cap of the crypto market. Crypto investors already track the performance of altcoins in relation to bitcoin instead of USD.
The performance of any altcoin in relation to bitcoin is more a more important measure for the decentralized economy. But even better would be to use $BASE as the price reference. Instead of just BTC, the trader can see how well any altcoin performs against the entire crypto market.
Lending Instrument
BASE can be utilized as a hedge for leveraged crypto trading. It can be considered an alternative to borrowing in BTC since it is less volatile. For example, if the value of BASE drops and they have to repay the loan they made, they can suffer less in terms of losses since it depends on the overall drop in the market.
Base Cascade
BASE Cascade is a program on the platform designed to reward BASE holders. This is because it also serves as their contribution to the liquidity of Uniswapâs pool. In order to take part in the Cascade program, users have to lock their BASE and ETH on the Uniswap liquidity pool. They get a percentage of the transaction fees based on the volume of trading in the pool as a reward.
After they have deposited their BASE and ETH on Uniswap, they are given LP tokens, which is the token that they can stake to claim their rewards on Cascade.
At first, the rewards multiplier for Cascade participants is at 1x. 30 days after they are staked, it increase to 2x. 60 days after, the multiplier becomes 3x. The increase in the multiplier happens everyday until it reaches the ceiling point, which is at 3x.
Participation in Cascade is merely optional. Only the user can decided how much liquidity they want to contribute. Furthermore, they can withdraw at any point in time.
Conclusion
Devising new ways to expand the investment opportunities for the cryptocurrency market serves the purposes of adoption and new use cases. Base Protocolâs initiative to create a product that expands the exposure of its users to the whole crypto market can be a convenient entry point for fresh investments.
Some of the factors affecting the arrival of new entrants to the crypto space include the volatility of some coins and the difficulty in selecting the best-performing coin. With Base as one of their options, not only are investors given a much safer alternative to investing in single digital assets, they are also given the opportunity to speculate on the crypto market as a whole. Given that this project could potentially bring new interest to the space, we can expect a more vibrant community if the project becomes successful.
Disclaimer: Cryptocurrency trading involves significant risks and may result in the loss of your capital. You should carefully consider whether trading cryptocurrencies is right for you in light of your financial condition and ability to bear financial risks. Cryptocurrency prices are highly volatile and can fluctuate widely in a short period of time. As such, trading cryptocurrencies may not be suitable for everyone. Additionally, storing cryptocurrencies on a centralized exchange carries inherent risks, including the potential for loss due to hacking, exchange collapse, or other security breaches. We strongly advise that you seek independent professional advice before engaging in any cryptocurrency trading activities and carefully consider the security measures in place when choosing or storing your cryptocurrencies on a cryptocurrency exchange.
Stacks ($STX) (formerly Blockstack) is an open-source network that allows developers to easily build decentralised applications (such as decentralised finance DeFi applications) and smart contracts. It also relies on Bitcoin as a backbone by reusing its computing power and blockchain for settlement and security with a new mechanism known as proof of transfer (PoX). Below, we look into PoX and everything you need to know about Stacks.
Background
Stacks is handled by a globally-distributed team that includes scientists from leading universities such as MIT, Stanford, and Princeton. On top of that, The project is a public company with its headquarters in New York.
Stacksâs place in the DeFi and broader crypto ecosystem is further cemented by being backed by notable names in the industry such as Y Combinator, Foundation Capital, Digital Currency Group, Winklevoss Capital, and LUX.
What is Stacks?
Stacks is a decentralized platform that leverages the Bitcoin platformâs security to power the creation of smart contracts and decentralized applications (Dapps). Interestingly, the network does not have to recreate the systemâs PoW mechanism to connect to it. The project has four major layers; application, protocol, Stacks blockchain, and the Bitcoin system.
Proof of Transfer (PoX) and the earliest Proof of Work (PoW) are requirements to define what a miner needs to do in order to create blocks on the blockchain. The purpose of mining is to verify a transactions’ legitimacy and in return miners are rewarded with cryptocurrencies. Proof of Work is the mechanism used for Bitcoin whereby miners compete to solve a puzzle using their computer’s processing power in order to add each block to the chain.
However, Bitcoin has its fair share of drawbacks. It has a very low transaction speed and is not smart contract-friendly. Therefore, second-layer solutions like the Lightning Network have tried to provide fast Bitcoin transactions but failed to power smart contracts.
As such, it has lost in the competition to Ethereum who now powers most decentralized finance (DeFi) protocols. Yet, with Ethereum witnessing increased congestion, new projects are shifting from Bitcoin and Ethereumâs proof of work (PoW) to platforms using proof of stake (PoS) and other energy-friendly consensus mechanisms such as proof of burn (PoB). Now Stacks wants to take this a step further with their proof of transfer (PoX).
Name
What miner needs to do to mint new cryptocurrencies
Proof of work (PoW)
Use electricity towards computations i.e. solving complex problems.
Proof of stake (PoS)
Dedicate an economic stake in a base cryptocurrency
Proof of burn (PoB)
Destroy a base cryptocurrency
Proof of transfer (PoX)
Transfer a base cryptocurrency
Proof of work and other mechanisms
Stacks Blockchain
As mentioned earlier, Stacks has four major layers; application, protocol, Stacks blockchain, and the Bitcoin system.
Stacks blockchain is the solid rock that holds the ecosystem together. It is a distributed layer by itself and allows users to create smart contracts and virtual assets. Whatâs interesting with this layer is that itâs not a layer two chain but connects to the BTC-powered network with a 1:1 block ratio.
This implies that whatever happens on the Stacks platform is easily verifiable on the Bitcoin platform.
How Do the Two Platforms Connect?
To interface the two independent distributed networks, the Stacks blockchain uses PoX instead of PoW. Generally, the mechanism enables miners to mine a new digital currency by transferring a base currency. In the case of Stacks, transferring BTC results in a new coin being minted on the Stacks protocol.
Apart from fronting a new consensus mechanism i.e. PoX, the decentralized platform allows its users to easily create virtual assets that are transferable, and ownership can be assigned. The assets can represent a wide range of use cases such as business models, funding, and governance.
However, to effectively cater to each of these use cases, Stacks, through the Stacks blockchain, supports different asset types such as fungible and non-fungible tokens.
To power smart contracts, the Stacks blockchain uses a smart contract-centric programming language called Clarity, which provides enhanced security. Notably, the programming language is employed by leading decentralized platforms such as Algorand.
Protocol Layer
The protocol layer has the storage, authentication, financial, and naming service. Stacks’ storage system is called Gaia. It stores app data without the need for a third-party service provider.
It utilizes off-chain cloud systems such as a DigitalOcean or Azure to power super-fast data access by applications. Fortunately, the data is secured by its creatorâs private key.
On the other hand, Stacks uses a decentralized feature to provide authentication. Authentication powers access to the networkâs apps using a username and details on Gaia.
The financial aspect of the system supports DeFi platforms such as those providing decentralized exchanges and lending. The financial pillar is further strengthened by the protocolâs use of Clarity to drive smart contracts.
For instance, the smart contract-programming language can interface directly with the Bitcoin blockchain. Additionally, itâs reinforced to prevent security breaches and anticipate possible vulnerabilities.
Stacks has a unique naming feature called BNS (Blockstack Naming Service). Despite being decentralized, the service enables the platformâs users to give assets human-readable names. The names are secured with a combination of public and private keys.
$STX Token: What is is and tokenomics?
Activities on the Stacks blockchain are powered by a native currency known as Stacks token ($STX). It is used up as “fuel” when making transactions, interacting with smart contracts and using the BNS feature. It is also distributed as a reward to STX miners (see below).
The genesis block minted 1.3 billion Stacks tokens. Minted coins were shared among the founders, treasury, equity investors, employees, two token sales, and app mining.
App mining is Stacks’ way to reward developers for building high-quality applications on the Stacks network.
Stacks is available on Binance, HashKey, Crypto.com, and Kucoin. Unfortunately, its availability has been set for non-US persons only.
Stack Networkâs Use Cases
From the start, the platform is built to enable privacy and allow users to control how their data is used in a world where user data is treated as a commodity for sale. And with Stacks’ use of PoX, Clarity, and other qualities, developers can ensure data privacy when creating apps, eliminate central authorities in financial products, and build fair games.
Stacks 2.0 and use cases
Stacks 2.0 blockchain is a layer-1 blockchain utilising the Bitcoin blockchain as a secure base-layer to bring apps and smart contracts to Bitcoin. Stacks 2.0 is currently in the testnet phase. The team have confirmed they are on track to reach code completion for the Stacks 2.0 blockchain by 15th December 2020 and have set a launch date for 14th January 2021.
Stacks implements proof of transfer (PoX) as a consensus mechanism and natively connects to Bitcoin. Therefore developers can ensure data privacy when creating apps, eliminate central authorities in financial products, and build fair games without the need to modify Bitcoin.
There will be 2 types of participants on Stacks
STX miners
They can spend BTC to elect leaders by sending transactions on the Bitcoin blockchain, where a Verifiable Random Function (VRF) will randomly select the leader of each round. The leader then writes the new block on the Stacks chain.
As a reward, STX miners get STX tokens, transaction fees, and the Clarity contract execution fees of each block.
STX holders
Holders can participate in consensus by locking up their STX for a cycle, running a full node, and sending useful information on the Stacks network as transactions.
As a reward, STX holders can earn Bitcoin rewards and unlike in the proof of stake mechanism, there is no risk of slashing for STX holders.
Conclusion
With an increasing number of security breaches on smart contracts and blockchain platforms, leveraging Bitcoinâs security when building smart contracts puts Stacks at the top of the game. Using Clarity at the base of every smart contract keeps hackers at bay, especially in the DeFi scene where malicious actors are always on the prowl for vulnerabilities in protocols.
Additionally, Chainlink oracles provide a trusted source of off-chain data for developers, while PoX allows for a one-on-one connection to the BTC-powered blockchain.
We are certainly curious to see what the team come up with in Stacks 2.0 and whether they can live up to their aims.
Disclaimer: Cryptocurrency trading involves significant risks and may result in the loss of your capital. You should carefully consider whether trading cryptocurrencies is right for you in light of your financial condition and ability to bear financial risks. Cryptocurrency prices are highly volatile and can fluctuate widely in a short period of time. As such, trading cryptocurrencies may not be suitable for everyone. Additionally, storing cryptocurrencies on a centralized exchange carries inherent risks, including the potential for loss due to hacking, exchange collapse, or other security breaches. We strongly advise that you seek independent professional advice before engaging in any cryptocurrency trading activities and carefully consider the security measures in place when choosing or storing your cryptocurrencies on a cryptocurrency exchange.
Utilizing Substrate as a development blueprint, Konomi Network aims to develop a fully interoperable service product that allows users to trade cryptocurrencies, manage their holdings, and make a profit out of decentralized money market options for the Polkadot ecosystem.
Background
The problem that has since limited the use of cryptocurrencies and hindered its mass adoption is the lack of interoperability. Holders of a particular token belonging to a different blockchain cannot easily make cross-chain transactions. This also means that all other digital asset providers cannot simply work together to provide financial services due to network restrictions.
Konomi Network is designed to solve that issue. Built on top of the Polkadot blockchain, the project addresses the problem with gas fees on Ethereum. This is to improve transaction speed and network scalability.
As of now, the protocol already supports a decentralized liquidity swap and money market. The team behind Konomi is currently working on the launch of the bridge to Polkadotâs parachains, wallets, and the open virtual machine to support smart contracts. Before the end of the year, the team is planning to launch the Konomi mainnet on the Polkadot ecosystem, link with other assets through a cross-chain bridge, as well as introduce fiat payments.
What is the Konomi Network?
Konomi Network is an independent blockchain project that features a comprehensive asset management platform on top of the Polkadot ecosystem. It provides cross-chain products and services such as trading, lending, and deposits. Since the platform is supported by parachains and Ethereum bridges, it can facilitate blockchain-agnostic services.
One of the strongest suits of the platform is its liquidity. Any trader can access liquidity from other exchanges through the platform in performing their trades and it relies on automated market makers (AMM) to supply buy and sell orders without the need for order books.
For further decentralization, the platform implements the same consensus model as Polkadot, the Nominated Proof of Stake (NPoS). In this system, network security is maintained by the validators selected by the protocolâs stakers. They can freely choose how much they want to delegate to a validator and earn rewards in proportion to the amount of their stake.
In the beta phase of the platform, it can be accessed as a web application. But in the next upgrades, the team will introduce a mobile version with the objective of making it easier for users to open the application.
Konomi Network platform
Konomi Wallet
Konomi Wallet features a decentralized asset storage function. Users can freely deposit their cryptocurrencies on the wallet while still being able to monitor their holdings across different protocols. Through this application, users can also access either Konomi Trade or Lend easily.
Konomi Trade
Konomi Trade allows users to conduct their trades with the supply of liquidity coming from different markets in the Polkadot network. Supported by its AMM implementation, traders enjoy immediate on-chain transaction execution without the need for any third-party facilitator.
Konomi Lend
Konomi Lend is a decentralized money market protocol designed to allow users to borrow and lend their digital assets to other interested users. This product features the collateralized debt position model. This is where borrowers are required to lock at least the minimum amount specified for collateralization before they are allowed to make loans. For now, Konomi supports Polkadotâs native token (DOT) for collateralization.
Decentralized Trading Protocol
Konomi is designed to implement AMMs that are similarly deployed in most Ethereum-based exchanges. Its architecture is patterned after the DODO exchange, allowing it to effectively mitigate the risks of impermanent loss on the part of the traders.
Decentralized Money Market
Konomiâs money market protocol backs its borrowing and lending services for assets based on the Polkadot ecosystem. The interest rates imposed on borrowing depend on the total supply and demand in the platformâs liquidity pool. Patterned after the Compound protocol, these rates will be computed on a per-block basis.
For those who would like to supply assets to the protocolâs existing liquidity pools, they can lock their holdings in smart contracts as collateral to earn lending interest. This also lets them access borrowing services.
Cross-Chain Messaging Passing Feature
Konomi will implement the Cross-Chain Messaging Passing (XCMP) function in order to achieve interoperability. XCMP is designed to link parachains together for the purposes of relaying transactions from one network to the other.
What this does is it allows transactions made in different parachains to work despite their independence with each other. This allows users to tap other markets on the Polkadot ecosystem even if their assets are only on the Konomi protocol.
KONO Token
KONO is Konomiâs native utility token that is used to pay for the platformâs minimal transaction fees, trade between other market participants, collateral for loans in the network, staking, and protocol governance. The supply of KONO is limited and fixed to 100 million tokens.
KONO token uses
KONO holders are given the right to cast their votes on network proposals concerning different protocol parameters such as staking fee, transaction fee burn, liquidity mining ratio, and others. Participants to the governance mechanism are also given rewards for joining.
The reward system for the protocol is also powered by KONO tokens. Those who stake their tokens and supply liquidity to the protocol are entitled to a reward proportional to the amount of token they locked in the network.
Conclusion
Konomi is an up-and-coming addition to the array of decentralized finance (DeFi) products in the space today. Since its infrastructure is supported by the Polkadot blockchain, it can stand to be a valuable competitor of other decentralized money markets and asset management services in the near future. Furthermore, its products can potentially entice a lot of users looking to make additional profit out of their holdings through staking. Its outlook for future adoption is positive.
However, until the platform is fully operational, we cannot absolutely compare it with the initiatives that were first launched in the market. While Konomi is built on a high-performing blockchain with cross-chain functionality, its applicationâs capacity to support the needs of its users is still going to be the best metric for its growth and success.
Disclaimer: Cryptocurrency trading involves significant risks and may result in the loss of your capital. You should carefully consider whether trading cryptocurrencies is right for you in light of your financial condition and ability to bear financial risks. Cryptocurrency prices are highly volatile and can fluctuate widely in a short period of time. As such, trading cryptocurrencies may not be suitable for everyone. Additionally, storing cryptocurrencies on a centralized exchange carries inherent risks, including the potential for loss due to hacking, exchange collapse, or other security breaches. We strongly advise that you seek independent professional advice before engaging in any cryptocurrency trading activities and carefully consider the security measures in place when choosing or storing your cryptocurrencies on a cryptocurrency exchange.
StoneDefi ($STN) considers itself the only yield management protocol which is focused on creating “Rock Solid Yield” for users of the decentralised finance (DeFi) ecosystem.
StoneDefi was founded in September 2020 by Alex Lam. Previously, Lam had worked with government-affiliated Institutions before taking up a keen interest in cryptocurrency. He has so far become actively involved in the crypto world, building platforms to support investment pools, notably RockX.
Rockx provides some degree of support to StoneDeFi thanks to Lam’s influence. However, StoneDefi is currently run by a team of about 7 people scattered across South-east Asia.
In the later months of 2020, StoneDefiâs project caught the attention of Singapore-based Venture Capital, Signum Capital. The project then received early-stage funding from the VC of undisclosed value. Signum Capital exclusively deals with blockchain startups and innovations.
Together with his team of finance and cryptocurrency experts, Lam guides StoneDefi as the project leads to becoming the only rock-solid yield management protocol for crypto assets.
What is StoneDefi?
StoneDefi, commonly referred to as Stone, is a yield management protocol that functions to ensure maximum returns for liquidity providers. It also secures capitals in asset pools and yield farms to safeguard investorâs interests in the DeFi sector.
StoneDeFi was designed to create a “rock-solid” yield for DeFi investors. Stone differs from other yield aggregator platforms in the priority it gives to the credibility of investments. The protocol focuses on the viability and integrity of all digital assets over just the potential yield.
After all, the name âstoneâ comes from the idea of a rock-solid yield aggregator.
Most yield aggregators are notorious for their risky strategies endangering investor funds in high-risk pools. StoneDeFiâs developers see a far bigger future for DeFi and understand the role of investors in it. Therefore, their enduring emphasis on “rock-solid” yield to transform funding in the DeFi space from just speculations and get-rich-quick schemes into a credible institution.
They are able to achieve this by carrying out thorough assessments of the sustainability and integrity of different investment pools. The protocol also carries out regular audits of active pools and yield farms to keep up with changes and safeguard investor funds.
By hedging single assets through indexes, the protocol is able to venture into more volatile pools while mitigating investorsâ risk. Consequently, investors can enjoy a reliable and consistent passive income from liquidity pools through Stone’s protocol.
How to earn yield on Stone DeFi (Image credit: Stone DeFi)
Liquid Staked Assets
To ensure stable and maximum yield to users, StoneDefi has explored a number of alternative farming strategies. One of Stone’s more progressive strategies is staking in liquid assets.
Stone, in collaboration with platforms that generate staking derivatives (notably StaFi), has developed a way to use LP funds to create a flexible redemption for rigid PoS stakes. Stakers can redeem locked tokens for rTokens which can be subsequently traded on platforms like Uniswap while still accruing yield on their locked stakes.
For the liquidity of staked assets to be viable, there must be a system by which the credibility of user funds is ascertained. Stone’s extensive assessment protocol plays a vital role in this phase. This flexibility would see tokens in sufficient circulation without inflation while accelerating its price discovery on DEX.
Users can also use staked tokens for other purposes, especially trading where they have access to their profits without the restrictions of the unbounding that can sometimes take up to 28 days.
STN Token and The Stone DAO
Just like other yield aggregators, StoneDefi has its own native token which is tied to most activities carried out on its platform. The Stone token or “STN” has a variety of functions that ensure smooth participation and exchange on StoneDefi.
STN’s most important function is to ensure effective protocol governance through its Decentralized Autonomous Organization (DAO). Individuals who stake STN tokens are granted voting rights and the ability to propose adjustments in the way the protocol is run.
This DAO approach seeks to ensure open and transparent governance of investor funds to counteract closed and centralized regulation, which is a common problem for yield aggregators.
Stoneâs token is also used to reward participation in investment pools. When Liquidity providers participate in different recommended pools, they are given different quantities of STN as acknowledgement and reward.
However, not all pools attract the same number of STN tokens. Token rewards are distributed to encourage participation in less populated pools. This system of incentivizing smaller pools would ensure portfolio rebalancing.
Distribution of STN
STN is also used for paying transfer fees in cross-chain executions, as well as standing as the security deposit in liquid staked assets. To prevent the devaluation of STN, a system where some percentage of STN tokens in the market are bought back to be burned is put in place. A percentage of the Stone platformâs fee income is used to fund the purchase of the STN tokens to be burnt.
Conclusion
While several yield management platforms have been successful in generating a consistent return for investors, one thing that they often get wrong is risking their user’s funds at the expense of high yields. This is symbolic of short-term thinking that could have dire consequences on the DeFi sector and possibly the entire crypto industry if asset pools are not given adequate risk assessments.
But with an innovative approach to yield management, StoneDefi is able to ensure maximum yield for users without having to risk user fund without cause. Their open and transparent method of governance through a DAO is also promising, giving investors the authority to contribute to the administration of their funds.
Disclaimer: Cryptocurrency trading involves significant risks and may result in the loss of your capital. You should carefully consider whether trading cryptocurrencies is right for you in light of your financial condition and ability to bear financial risks. Cryptocurrency prices are highly volatile and can fluctuate widely in a short period of time. As such, trading cryptocurrencies may not be suitable for everyone. (https://www.stocktargetadvisor.com/) Additionally, storing cryptocurrencies on a centralized exchange carries inherent risks, including the potential for loss due to hacking, exchange collapse, or other security breaches. We strongly advise that you seek independent professional advice before engaging in any cryptocurrency trading activities and carefully consider the security measures in place when choosing or storing your cryptocurrencies on a cryptocurrency exchange.
LABS Group aims to realise everyoneâs dream of real estate ownership through fractionalising real estate investments.
Traditionally, entry into the real estate industry requires a substantial investment due to the indivisibility of assets. Consequently, small investors find this asset class completely out of their reach.
Among the few platforms trying a stab at bringing real estate to the masses is LABS Group. Through its ecosystem token and utilising decentralised finance (DeFi) and governance, its mission is to intelligently blend the centralized and the decentralized worlds of real estate to improve its liquidity.
Check out our interview with Chairman Mahesh Harilela (or listen to the podcast).
Tokenizing Real Estate Assets-LABS Group with Mahesh Harilela
Mahesh Harilela, is the Companyâs Chairman. Mahesh comes from one of the most prominent families in Hong Kong, which owns 19 hotel properties worldwide through the Harilela Group. Mahesh himself has certainly inherited the familyâs entrepreneurial spirit and is involved in Trading, Brand Development, Renewable Energy Infrastructure, Agriculture and Education. He is also Chairman of the Board and CEO of M. Harilela Global Investments Ltd and Asia CBD Pte Ltd.
What is Labs?
LABS is a leading blockchain-based ecosystem for real estate investments. The platform seeks to bring more people into the space by fractionalizing investments. Compared with other legacy modes of investing in the real estate space like private equity funds, REITs, and direct investment, LABS emerges as the winner.
For instance, it ticks crucial boxes such as low fees, governance, ownership, staking for profit, tradable, among others.
Critical issues the protocol is trying to solve include:
Costly entry and exit prices â Currently, the median entry price into the ecosystem is high. The cost rises as you enter into big cities. Apart from entry points, exit costs are driven through the roof by third parties such as agencies.
Eradicate reliance on Real Estate Investment Trusts (REITs) â Although they allow pooled investments, they are majorly open to deep-pocketed individuals.
Complicated access to a global network â International property ownership is a nightmare in the current state of the real estate industry.
Low Liquidity â The traditional real estate market restricts investors from selling to the local market due to low liquidity.
High fees â The fees range from taxes, agent fees, and transaction fees that introduce inefficiencies in the conventional market.
Labs uses different approaches to solve key issues plaguing the traditional real estate industry permanently. These are:
Crowdfunding
The project believes in fractionalizing real estate assets, making it possible for multiple investors to put their money in the same assets by reducing the entry costs. Additionally, it minimizes the need for investors to stretch their cash reserves unnecessarily. In doing so, it reduces the risks of losing a lot of money.
Powering a Global Portfolio
With digitization, the project removes the global barrier. Consequently, it provides investors with a chance to have a global portfolio of real estate assets. (contentbeta) This lowers the risks for investors. Apart from enabling them to build a global portfolio, the digitization process enables investors to mimic traditional asset features like a store of value.
Caters to Investors Diverse Appetites
Labs enables investors to choose between different types of assets in the industry. For example, they can select residential, commercial, industrial, or hybrid and still choose their preferred location, risk levels, and ROI.
It Brings Blockchain and Digitization Together
By digitizing real-world assets, the project opens them up to trading on virtual exchanges that have no geographical limitations nor opening/closing times.
Extra benefits
Other benefits birthed by the project are:
Interaction with the DeFi scene and enabling decentralized governance.
Ability to trade real estate securities.
Faster and direct dividends payments
Reduced and enhanced transactions.
Liquidity Provision On the Labs Network
Tokenization â This helps power an asset-backed token ecosystem that lives on the blockchain enabling other activities such as over-the-counter trading and token swapping.
Trading on the secondary market â Trading of Labsâ securities leverages recognized exchanges. Note that when shares are tokenized, they are traded on a securities exchange. Such asset trading platforms enable enhanced non-stop trading, positively impacting investorsâ entry and exit points.
Lending â Labs facilitates lending activities on the platform using two native assets; the Labs stable token, the Labs security token (more on these later). The protocol uses these tokens to address the liquidity problem by allowing their holders to engage in collateralized lending.
Conclusion
By fractionalizing real estate assets, Labs eases the entry of retail investors into the industry. Consequently, it increases liquidity. Another critical Labs undertaking is digitizing these assets, effectively connecting the real estate market to the DeFi world.
In return, it opens up the space to more possibilities such as collateralized lending, over-the-counter trading, and swapping. Additionally, the inclusion of the LABS token drives community governance that is a crucial pillar in DeFi-focused protocols.
Disclaimer: Cryptocurrency trading involves significant risks and may result in the loss of your capital. You should carefully consider whether trading cryptocurrencies is right for you in light of your financial condition and ability to bear financial risks. Cryptocurrency prices are highly volatile and can fluctuate widely in a short period of time. As such, trading cryptocurrencies may not be suitable for everyone. Additionally, storing cryptocurrencies on a centralized exchange carries inherent risks, including the potential for loss due to hacking, exchange collapse, or other security breaches. We strongly advise that you seek independent professional advice before engaging in any cryptocurrency trading activities and carefully consider the security measures in place when choosing or storing your cryptocurrencies on a cryptocurrency exchange.
FTX EXCHANGE (INCLUDING FTX INTERNATIONAL AND FTX.US) ARE NO LONGER IN OPERATION
Both exchanges have filed for bankruptcy. Subsequently, the exchange was “hacked” and more than US$600 million worth of cryptocurrencies drained. The hacker is strongly rumoured to be a former FTX employee. For more about how this story unfolded and the latest news, check out these articles:
Newcomers to cryptocurrency and digital asset trading must navigate a complex sector filled with acronyms and technical jargon, as well as dozens of ways to trade across multiple exchanges.
One option newcomers may have heard of, and which they may want to learn more about is futures trading.
At first glance, this seems like a complicated way to invest, but the team at exchanges like FTX do their best to make the process as straightforward as possible.
What are futures?
Futures are a type of derivative financial contract that creates an obligation for the parties to exchange the asset at a price and date that is predetermined.
The buyer is obliged to buy that asset, and the seller has to sell the asset, even if the price of the asset has gone up or down.
Think of future trading as a fixed price sale in the future. You agree with someone on a price that is higher or lower than the current price, and then in the future, the sale gets executed at the same agreed price.
The underlying assets in the contract can be anything from a set of cryptocurrencies to real estate or any other commodity. The contracts are designed to have a detail of the quantity of the underlying asset, and also help in the execution of the trade on a trading platform.
Why is it called futures trading?
Futures are generally named by the month they expire. For example, a January gold futures contract will expire in January and is based on gold as an underlying asset. Similarly, you can also find contracts for other commodities as well.
Traders usually use the term futures broadly for a whole asset class. However, there are multiple futures contracts available based on different assets. These future contracts include:
Commodities such as crude oil, corn, wheat, and so on
US bonds, or any other government-backed financial bond
Precious commodities like platinum and gold
Index futures such as the Dow Jones Industrial Index
Examples
A very good example of a contract available on FTX is the Donald Trump 2024 futures contract.
This is a contract that allows traders to âbetâ whether Donald Trump will return to the White House following the next presidential election in 2024.
The contract expires on $1 if former president Donald Trump wins the 2024 election and it expires at $0 if he loses the election. The contract specifically also specifies other scenarios in which the contract expires early, for example, if he decides not to run in the future presidential election.
So if anyone invests $100 right now into the contract they will get 1063 positions of the contract which may become worth $1063 if Trump wins, and if he loses the amount would become zero.
The leverage used by the futures market is usually high. Leverage is a process in which a buyer can purchase the contract even if they enter it with a fraction of the contractâs value. The buyer only needs to come up with a fraction of the money, while the remainder is put up by the broker.
One of the most important things in futures trading is the exchange, where the whole trade gets executed and settled. As futures trading also involves physical exchange, it is important to have a good exchange with a stellar reputation backing up your trade. However, it should be noted most futures contracts are for people who speculate on the trade.
Difference between options and futures contracts
For people who are new to futures, it is important to understand thereâs a difference between futures and options. An options contract does not put an obligation on the buyer or the seller. In the American way of doing business, it gives them the right to execute the trade before the expiration time, while in Europe the right is given after the expiration time.
In a futures contract, the buyer has to take possession of the underlying asset, and subsequently, the seller has to sell him that asset, they can settle for the cash equivalent. However, the trade has to take place.
The buyer also has the option of loading off their position any time before the trade expires to get rid of their obligation. This is one thing that is common in options as well as futures trading giving an advantage to the buyer to benefit from the leverage holderâs position before expiration.
FTX Exchange
Hundreds of platforms deal with crypto futures trading, however, traders need to be careful about which one they choose. They need to select a platform based on their preferences.
FTX has been one of the most promising entrants in the futures trading domain and has been taking up market share. The platform is slowly gaining a lot of traction and is widely considered to be one of the best platforms for futures trading. So, if you are interested in futures trading, FTX should be considered.
FTX was founded by Sam Bankman-Fried in 2019. He is also the founder of Alameda Research, a cryptocurrency, and blockchain research company that creates specialized algorithms for trading cryptocurrency. He is also a high-profile trader and created FTX as a trading platform that specializes in margin trading, futures trading, and leveraged trading. The exchange is backed by Binance, the biggest crypto exchange in the world, in what has been termed as a âstrategic partnershipâ.
The FTX exchange was founded due to the SBFâs quest for a crypto trading platform that had it all from a traderâs perspective. He wanted a trading platform that put traders at the heart of the experience and designed FTX to cater to traderâs every need.
Simplicity, security, and abundance of features were made important parts of the FTX core philosophy. Even though the exchange was designed for traders, the UI/UX was kept simple and intuitive, so novices donât feel overburdened.
What makes FTX futures different from regular futures?
The futures trading on FTX is a little different from other exchanges that offer futures contracts.
FTX futures are settled using stable coins. The settlements are made using stable coins as collateral and regular crypto cannot be used. This means that the volatility of crypto has no real effect on the users. This also gives the users a USD-based settlement exposure which means that you can use USD as the base currency for all your collateral and contracts, without the need for a bank account. Being in the crypto space also makes it easier for the position to be shifted around.
To avoid clawbacks, FTX futures has a unique program for providing backstop liquidity. The backstop liquidity is provided to accounts that are about to go bankrupt. This prevents the exchange from clawbacks.
Backstop liquidity is the assistance from the exchange that helps in creating a secondary source of funds for liquidity when the primary canât cover it, in case of a bankruptcy event. It also stops the buyer from making additional payments to the seller in the case, which are called clawbacks.
The margin calls on the platform are measured and careful which avoids exposure to major price dislocations and huge losses.
How to post collateral?
In FTX futures the collateral is based upon stable coins and you do not have the option to post collateral in other cryptocurrencies. The current stable coins that are accepted include TUSD, USDC, and PAX.
For you to deposit or withdraw collateral you can go to your wallet on the FTX exchange and deposit USDC, PAX, or TUSD in your wallet. You can deposit them through a credit card or wallet transfer as well.
All margins posted on the wallet are in USD in your wallet by default, even if you fund it with stable coins the balance is shown in USD.
The collateral has a weight difference for each stable coin, in the case of USD fiat, the weight is kept at 1 meaning you can keep the collateral at the same amount. However for USDT, it is 0.975, for BTC it is 0.95 and for ETH it is 0.9 which means for the collateral to be high you have to have more collateral. This means that for $100 invested in USDT the collateral is at $97.5 while for the equivalent amount in BTC it is $95.
You can use the same collateral pool for all of your positions, by default all currencies that include USD, non-USD fiat, stable coins, and some cryptos can be counted as collateral. Cross margin is used for the account as every sub-account has its collateral wallet which is central to that account. Sub-accounts are considered as accounts and each sub-account has its own collateral. If you want isolated margins you would need to create a sub-account for each margin pool.
How do Futures expire?
The futures contract expires based on the set date of expiration. For example, a quarter future contract will expire every quarter between 2 am and 3 am UTC. Once the futures contract has expired the collateral amount gets credited into the sellerâs account.
What are perpetual futures?
Perpetual futures are based on contracts that have no expiration date. The perpetual contracts work hour-wise, with each hour the contract has a funding payment.
This has a function of keeping the price of perpetual futures according to the index which is underlining it. The price can be kept stable without the position closing down or expiring.
How can I trade futures?
FTX is simple, go to the FTX website and youâll see the registration page. Simply sign up with the email address you want to create your account with.
Sign up for an FTX account
Once you have opened an account the next thing to do is to add funds to the exchange wallet. Depositing your funds into the FTX exchange can be done either through connecting it with an existing crypto wallet or you can deposit funds directly through using a credit card or a debit card.
Deposit to FTX
Once your funds have been deposited you can go to the âMarketsâ tab on the front page:
FTX markets
In the âmarketsâ tab, you would get the following view, where you can see different futures contracts listed. The FTX exchange offers the largest collection of altcoins futures in the business.
FTX markets page
You can also see the timed futures, for example, December expiration futures, as well as perpetual futures in the list as well.
The exchange also offers futures on US-based stocks and commodities as well.
FTX US stocks and commodities futures
Once you have decided you want to trade a future, you select the future you want to trade and you get taken to the console. The console looks something like this:
FTX trade console
At the middle of the console you can look at the trading window which has the graphs displayed.
The top right corner shows you the index details as well as the price of the futures contract, along with its expiration. The bottom right shows you details of the collateral you have available, and the leverage can also be set from there as well.
Coming down from the console you can come to the order book as well as the order execution tab and the market trades tab:
FTX order book
The console of the futures tab is designed with professional traders in mind; the console has each functionality that a trader would require.
The traders can monitor the price through the grid as well as make reference lines on the console as well. You can also add a variety of indicators to the console. The index price shows you the average of all the exchanges in the area, it also shows you different details as well.
Below the console window, you can take a look at the current positions you have in the market as well as the previous positions you have had.
The futures trades can be made through the console easily by keeping the collateral in your wallets. Once you have the collateral you can start trading futures through the exchange easily.
Conclusion
Hopefully, this guide has given you an insight into the world of futures trading and gives you an oversight of how traders can and do use this method to make money on digital asset markets.
FTX is a great place to trade futures and to learn more about this exciting sector of digital asset trading, offering users a simple and easy-to-understand interface.
As with all investments, people should take care and ensure they have an appropriate trading risk mitigation strategy in place to manage their portfolios. Always make sure you never invest more than you can afford to lose. The cryptocurrency markets are by their very nature extremely volatile, with prices moving much more sharply than traditional markets, both up and down.
Are there any fees for futures trading on FTX exchange?
FTX uses a tiered fee structure for futures trading which starts at 0.020% for maker fees and 0.070% for taker fees. Frequent traders can get discounted trading fees up to 0.00% and 0.04% for maker and taker fees respectively.
Can you trade crypto futures as a United States resident?
This depends on the policies of each cryptocurrency exchange, but generally, residents of the United States are not permitted to trade crypto futures. A few exceptions are the Chicago Mercantile Exchange (CME) and the Cboe Options Exchange.
Is crypto futures trading safe?
Trading in crypto or Bitcoin futures, or even cryptocurrency trading generally involves risks. One notable risk is the inherent volatility of cryptocurrency prices which can fluctuate greatly on a daily basis. Combined with leverage trading, this can hugely amplify any losses you may suffer if the market does not go in the way you anticipated.
How can you mitigate risks in crypto futures trading?
Some traders use stop-loss or take-profit levels. These will close trades that are losses or before the market trend changes. These can help traders because it works automatically, so the trader does not need to be at their computer.
Another way to mitigate risks in crypto futures trading is avoiding emotional trading. For example, some traders feel FOMO (Fear of Missing Out) or revenge trade by “doubling down” when making a loss in an effort to minimise the loss. Emotional trading can in fact lead to further losses because it is not well thought out and researched.
Disclaimer: Cryptocurrency trading involves significant risks and may result in the loss of your capital. You should carefully consider whether trading cryptocurrencies is right for you in light of your financial condition and ability to bear financial risks. Cryptocurrency prices are highly volatile and can fluctuate widely in a short period of time. As such, trading cryptocurrencies may not be suitable for everyone. Additionally, storing cryptocurrencies on a centralized exchange carries inherent risks, including the potential for loss due to hacking, exchange collapse, or other security breaches. We strongly advise that you seek independent professional advice before engaging in any cryptocurrency trading activities and carefully consider the security measures in place when choosing or storing your cryptocurrencies on a cryptocurrency exchange.
PancakeSwap is one of the most popular yield farming projects on Binance Smart Chain. However, beyond the usual yield farming method, PancakeSwap offers multiple products which users can maximize in order to leverage their holdings. This makes PancakeSwap is a strong competitor against similar projects in the space such as Uniswap.
Check out or video on PancakeSwap yield farming strategies and particularly how to avoid impermanent loss!
https://www.youtube.com/watch?v=XCqAa6a5EQ8
PancakeSwap yield farming strategies
What is PancakeSwap?
PancakeSwap is a decentralized exchange (DEX) platform that facilitates the trading of BEP-20 tokens. It implements an automated market maker (AMM) model to provide liquidity on peer-to-peer trades within the protocol.
Through this model, PancakeSwap matches buy and sell orders from different platform users directly in a liquidity pool. The supply of tokens in this pool is provided by user deposits in a process called âstaking.â
When they stake tokens, PancakeSwap rewards them in return with a proportional amount of their share in the platformâs trading fees as well as liquidity provider (LP) tokens. The LP token that stakers will receive as an incentive will be the same asset that they supplied to the liquidity pool.
But basically, it works closely similar to how Uniswap and SushiSwap works. Even its user interface looks almost the same. The difference lies in the yield strategy that anyone can take advantage of in the platform. When users stake, they also earn CAKE tokens.
There are multiple liquidity pools where users can stake. Here are some examples for them:
CAKE-BNB
BUSD-BNB
BETH-ETH
USDT-BUSD
USDC-BUSD
DAI-BUSD
LINK-BUSD
TWT-BNB
CAKE token: What is it?
PancakeSwap token ($CAKE) is the platform’s native token. Users are rewarded with CAKE tokens for staking their funds on the platform. They can then stake their CAKE tokens to earn other types of tokens on special staking pools. The CAKE token is mainly for participating in community governance where users can vote on decisions relating to the direction or running of PancakeSwap.
PancakeSwap Guide: How do you start using PancakeSwap and earn CAKE tokens?
PancakeSwap is easy to use. First, you will have to visit their website at https://pancakeswap.finance/ and link your wallet there. You have the option to connect it to your MetaMask, Binance Chain Wallet, WalletConnect, and Trust Wallet, among others.
As mentioned, it also supports MetaMask even if that wallet is Ethereum-based. This is because the platform is built on top of the Binance Smart Chain (BSC), which supports interoperability between Ethereum-based wallets.
On the platform, there are options to either swap your tokens or supply liquidity in the âpoolsâ section. There is also an option to start âfarmingâ if you look through other sections.
You can farm CAKE tokens on the platform. But before you can start doing so, you first have to supply liquidity to PancakeSwapâs pool in order to earn rewards in CAKE tokens. You can stake them back to the platform and get more in return. And again, users can also farm other tokens by participating in other liquidity pools.
Syrup Pools
Project owners can launch their tokens with the help of the Syrup pools. Here, they can commit a portion of their own tokens and distribute them to CAKE holders. There will be two categories for projects supported by the Syrup pool: Core and Community.
Core projects are those that have been vetted by the team behind PancakeSwap. Community projects are those that CAKE holders voted in governance decisions. Despite this, anyone can distribute their tokens to CAKE holders through the Syrup pool. However, only the projects that get the vote of the community gets to be listed on the interface of the platform.
PancakeSwap syrup pool (Image credit: PancakeSwap)
Transaction Fees
DEXs that follow the AMM model also charge trading fees. Users that participate in liquidity pools receive their LP token rewards on top of the accumulated trading fees on the platform.
PancakeSwap charges 0.2% trading fees for users. In these fees, 0.17% is redistributed to liquidity providers with the other 0.03% allocated for burning by the PancakeSwap Treasury.
Since the platform is decentralized, this distribution schedule can be revised by the stakers as necessary.
CAKE Lottery
There is also an option for users to join the CAKE lottery. It will have an interval of 6 hours per lottery session and you can get one lottery ticket for 10 CAKEs. This ticket will generate a random four-digit combination of numbers between 1 to 14.
A winnerâs take-away can go as high as 50% of the entire lottery pool if their ticket numbers match all four winning numbers on the lottery. There are also rewards too even if at least two of your numbers match the same position as the ones on the winning ticket.
Non-Fungible Tokens (NFTs) on PancakeSwap
PancakeSwap also offers an option to participate in the exchange of collectibles on the platform. There is a section for non-fungible tokens (NFT) (called “Pancake Collectibles) represented by cute figures that users can trade for CAKE. You can choose to keep these NFTs if you own a few and trade them at a sooner date.
PancakeSwap introduced Initial Farm Offerings (IFO) on the platform to help out newly-launched tokens in opening opportunities for yield farming. To do this, users can commit their LP tokens to available pools. Here, those who will launch their tokens to the IFO will first be asked about the specifics of their project like their tokenâs current development stage, use case, distribution schedule, smart contract audits, expected valuation, and the purpose for the fundraising.
Is PancakeSwap safe?
PancakeSwap is audited by CertiK, one of the most reputable smart-contract auditors in this space. However, there is always risks involved in using these platforms such as bugs, which could result in loss of funds.
Conclusion
There are many yield farming projects in the space today and it can be difficult to assess where to focus on. And in selecting a platform to use, it is important to look beyond their promised APY. On multiple fronts, PancakeSwap seems to be a strong competitor to some of the biggest yield farming protocols in the space today.
Since the platform is built on top of the Binance Smart Chain, it has an edge because this means that their blockchain network is faster than others in the space as it features around 3-5 second block times with their Proof-of-Stake model. Above that, there are other profit-generating opportunities with PancakeSwap. Beyond yield farming, users have the opportunity to participate in lotteries, collect NFTs, and launch fundraising rounds through IFOs. These are features that many other popular yield farming projects do not offer yet.
Disclaimer: Cryptocurrency trading involves significant risks and may result in the loss of your capital. You should carefully consider whether trading cryptocurrencies is right for you in light of your financial condition and ability to bear financial risks. Cryptocurrency prices are highly volatile and can fluctuate widely in a short period of time. As such, trading cryptocurrencies may not be suitable for everyone. Additionally, storing cryptocurrencies on a centralized exchange carries inherent risks, including the potential for loss due to hacking, exchange collapse, or other security breaches. We strongly advise that you seek independent professional advice before engaging in any cryptocurrency trading activities and carefully consider the security measures in place when choosing or storing your cryptocurrencies on a cryptocurrency exchange.
One of the benefits of BSC is that the Ethereum blockchain has been plagued lately by exorbitantly high fees and delayed transaction processing times. This has resulted in retail or average users getting priced out and unable to participate in decentralised finance (DeFi) or NFT activities. For some investors, itâs simply too much to pay $15-30 per transfer and $50-100 per Uniswap asset conversion.
Therefore, BSC has risen up to the occasion to alleviate some of these problems by cloning and porting Ethereumâs most used DApps over to its blockchain. Thereby offering an attractive alternative with its low fees and near-instant transaction processing time.
Background
Binance Smart Chain (BSC), the blockchain Bakerswap runs on, is a project from Binance – the largest cryptocurrency exchange in the world by traffic volume and traded amount. It is an Ethereum fork with a Proof of Staked Authority (PoSA) consensus mechanism and the ability to integrate with the Ethereum Virtual Machine (EVM). There are 21 validators staking large amounts of BNB, who process activity.
The identity of these validators isnât known but is largely believed to be Binance permissioned actors. These validators need permission from the Binance network to run the validator node. Furthermore, the BNB token holdings are greatly controlled by the Binance team or founders. Itâs a permissioned network.
But, it does have its benefits. It ensures high throughput transaction processing and low fees for the users. Itâs an experience for the users, who otherwise wonât be able to experience DeFi and NFTs. Binance further returns some part of the transaction fees to the developers to give them the incentive to develop on the BSC network.
BakerySwap
BakerySwap is a Uniswap clone that allows for orderbook-less automated market maker (AMM) services and NFT trading. It runs exclusively on the Binance Smart Chain (BSC). Itâs marketed by Binance as having âcheaper fees and faster confirmation time than Ethereum”. Also included are the functionalities for staking with users providing liquidity and earning new tokens, combination NFTs and pets feature.
In the place of orderbooks, liquidity pools are used to conduct swaps. In a similar manner to Uniswap, the participants receive Liquidity Pool (LP) tokens and can redeem them for assets supplied and fees earned when liquidating them. Thatâs according to their share in the pool gathered from the assets. Recently, an Initial DEX Offering (IDO) has also been introduced which allows projects to raise capital.
BakerySwap Fees
BakerySwap has a 0.30% fee for every activity on the platform, 0.25% goes to the liquidity providers and the remaining 0.05% will be used to buyback BAKE from the market and distributed to BAKE holders.
How To Access BakerySwap Through MetaMask
Itâs pretty simple to access BakerySwap through Web3 wallets like MetaMask. Simple click the MetaMask button and open the dialog box and it will show Ethereum mainnet by default.
Connecting to BakerySwap
Then, enter the following information in a case-sensitive manner.
Click Save and then switch to Binance Smart Chain. Now you can access BakerySwap. To transact on the BSC network, you need to have Binance Coin (BNB) on your wallet, so buy and withdraw them to your MetaMask as BEP20 standard tokens.
BakeryToken ($BAKE)
The native token of Bakeryswap is called BakeryToken or BAKE, which is earned by providing liquidity to asset pairs and staking liquidity pool tokens or by staking BAKE itself. Since this is a food-themed clone, itâs possible to deposit the liquidity pool tokens into different pools of Doughnut, Waffle, Rolls, Croissant, Latte, etc. with different ROIs.
There was no pre-mine and/or presale of BAKE tokens. The tokens reserved for the team are only 1% because of their belief in a fair distribution model. Its distribution is skewed in favor of people staking tokens and the total supply is 731,745,000 BAKE. The tokens will be gradually released with the communityâs consultation and advice.
NFTs
On the Binance Smart Chain, BakerySwap is the first AMM plus NFT project. The native BAKE token can be used to create a âfood mealâ – a fancy term for a NFT, which can be used to farm BAKE again.
Every food meal has a different staking multiplier and earns proportional rewards. Plus, it can be traded for other NFTs and burned to yield BAKE.
The platform also has an NFT Supermarket which allows artists to turn their artworks into NFTs through the minting process and to sell them. Users can buy artwork at the Supermarket using BAKE tokens.
Despite having an interesting overlap of two emerging fields in blockchain tech, the innovation doesnât seem to slow down at BakerySwap. As such, the team has announced that they would introduce the stake to farm NFT functions like MEME. A novel bidding and auctions system would also be developed.
In DeFi and NFTs, gamification is key to engage users and keep them involved. BakerySwap will create raffles and rewards for completing BAKE tasks. AMM/NFT data analytics and token price charts are also under development. At some point in the future, margin trading and derivatives would also be deployed on BSC.
BakerySwap Ethereum 2.0
Like any emerging unconventional DeFi protocol, BakerySwap has had its fair share with procuring and managing liquidity for the yet-to-be-launched Ethereum 2.0. It has been reported to be working to integrate Ankr staking services aETH – a synthetic asset representing deposited Ether tokens, which will be used to create new farming pools.
BakerySwap has also launched its own Eth2 BETH token, in partnership with Binance.
Conclusion
BakerySwap marks the introduction of an interesting experiment and an attempt to include users, which have been left out because of the high fees on the Ethereum network. At a fraction of cost and rapid transaction processing, retail users can try out the asset swap and NFT minting functions without clearing out their wallets for fees.
The project takes Uniswap one step further, adding elements of NFT and gamification. Plus the tokenomics ensure value accrual and incentives for users to continue holding the token. The trajectory of BakerySwap doesnât appear to be descending and notable features are waiting to be implemented in the coming days.
Disclaimer: Cryptocurrency trading involves significant risks and may result in the loss of your capital. You should carefully consider whether trading cryptocurrencies is right for you in light of your financial condition and ability to bear financial risks. Cryptocurrency prices are highly volatile and can fluctuate widely in a short period of time. As such, trading cryptocurrencies may not be suitable for everyone. Additionally, storing cryptocurrencies on a centralized exchange carries inherent risks, including the potential for loss due to hacking, exchange collapse, or other security breaches. We strongly advise that you seek independent professional advice before engaging in any cryptocurrency trading activities and carefully consider the security measures in place when choosing or storing your cryptocurrencies on a cryptocurrency exchange.
