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  • Reef Finance ($REEF): The All-In-One Defi Platform

    Reef Finance ($REEF): The All-In-One Defi Platform

    In the last months, we have witnessed the crypto space and blockchain industry go beyond the norm. With more decentralized finance (DeFi) projects than ever, it is clear that the next target should be greater adoption. However, the complexity of dealing with multiple (d)Apps interfaces in order to access a wide array of services, inevitably narrows down the number of participants. Reef Finance is built to change that.

    The way Reef Finance works is by reuniting all blockchain services together in a single, unified interface. This makes the whole DeFi user experience seamless and convenient. In just a single dApp, anyone can buy crypto, perform trades, stake assets, take loans, farm, manage their portfolio and more without any fuss.

    Tackling Defi’s Fragmentation

    What Denko Mancheski, CEO of Reef Finance, and his team had in mind when they started working on the project, was to solve an inherent complexity. Mancheski believes that, while there have already been many useful innovations in crypto recently, mass adoption is still difficult to achieve. The reason he points out is the psychological barrier that dampens the DeFi communities’ growth. True enough, the DeFi space today seems very fragmented. There are features existing in a particular application that are unavailable in another, and there are contract functions that would complement each other, but only exist on separate platforms.

    The space offers promising products, but they are too overwhelming to spur adoption, especially for beginners. This is why Reef Finance’s goal has been, according to Mancheski, to “abstract away complexities” and try to “onboard a simple non-tech savvy user.”

    What is Reef Finance?

    Reef Finance (“Reef”) is a non-custodial multi-chain smart yield engine and liquidity aggregator. Powered by Polkadot, it enables cross-chain integrations across various DeFi protocols.

    Essentially, it makes Decentralized Finance much easier to access, with the ability to diversify a portfolio in a single click. It functions as a one-stop-shop for DeFi projects that users can access without having to switch from different applications, one after another. Within its interface users can access different exchanges and, through the help of smart contracts, Reef combines the liquidity of these markets. Furthermore, trading can be easily done on the platform. 

    Reef Finance is the first Polkadot project ever launched on Binance Launchpool. The farming started on December the 23rd and will continue for 30 days. The platform will be beginner-friendly and will launch in Q1 2021, while the protocol has recently been audited by Halborn.

    Why Polkadot?

    Reef’s deployment on the Polkadot ecosystem will benefit users in terms of transaction costs and speed. As it is well known to many, the ‘traffic’ on the Ethereum’s network has often resulted in skyrocketing fees and long transaction times. This will continue at least until Ethereum 2.0 is fully deployed, which isn’t likely to happen for a while. 

    Polkadot, on the other hand, doesn’t suffer from the same issues. Parachains’ independence on the network prevents network congestion. It also powers Reef’s cross-chain functionality through the ‘Bridge’ protocol. By implementing this blockchain innovation, Reef can rely on products and services from different networks into a single interface.

    The Reef platform is made of three major components that complement each other.

    Global Liquidity Aggregator

    Reef offers a simil-exchange service linked to some of the biggest trading platforms in the space. The uniqueness here is that the aggregated liquidity goes through CEXs and DEXs. In this way, users can hedge the downsides of the two types of liquidity sources, among which trading fees and high slippage.

    Reef can access all the liquidity combined of CEXs and DEXs
    Reef can access all the liquidity combined of CEXs and DEXs

    The centralized exchange liquidity will be accessed through the use of brokerage services, such as Tagomi, Caspian or Quantreq. Conversely, decentralized liquidity will come from sources like on-chain order-books (0x) and AMMs (Uniswap, Balancer, Bancor….). Reef’s liquidity aggregation will also assist in protecting users from market manipulation and front-running attacks.

    All of this will make trading on Reef not only easy and affordable, but also diverse.

    Smart Yield Farming Aggregator

    Reef Yield Engine enables staking in multiple asset baskets which can be automated through the help of an AI that users can configure based on their financial needs. Users can decide how much to allocate to each basket and the operating system will dynamically rebalance and adjust them, moving portions of the allocations to other more convenient assets/pools.

    The purpose of the ‘Reef Intelligence Engine’ is to enable the AI to manage assets on user’s behalf. This helps automate the nitty-gritty of trading and staking for Reef’s newcomers. Planning a profitable allocation of assets according to each trader’s risk level has never been much easier in Defi. The engine is machine learning-powered, enabling its growth over time.

    Since the AI is data-driven, the information it holds is fed by an off-chain oracle (they have a partnership with Chainlink also). The oracle supplies data to proxy smart contracts that serve as the AI’s backbone. It monitors every pertinent information concerning services offered on the platform, whether they are social media data, latest news, or on-chain data.

    Reef also integrates with some Defi insurance protocols to provide coverages for its users.

    Smart Asset Management

    The third founding element of the platform is its asset management option. Users can seamlessly rebalance their allocations between their baskets through an easy UI accessible from mobile devices or computers. The AI engine will also make intelligent recommendations to help with taking decisions.

    The $REEF Token

    $REEF is the native, utility token of the Reef platform. It is mainly used to pay for transaction fees as well as support the protocol rewards structure.

    An important role for the platform is that of Network Collators. They assure that the network is healthy by keeping a copy of the full state of Parachains at a given time. They are similar to miners producing blocks, supporting the Polkadot blockchain. The Collators receive $REEF tokens as a reward for all basic operations such as processing transactions, deploying smart contracts, submitting a proposal and more.

    Staking and Governance

    Reef Protocol utilizes Polkadot’s Proof of Stake base consensus mechanism and it’s governed through a DAO structure. By holding and staking $REEF tokens, users can take part in important protocol decisions concerning the structure of the asset baskets, reserve limits, yield rewards, liquidity pools, and others.

    Stakers have the freedom to choose how they want to receive their rewards, whether in ETH/USDC or $REEF. Opting for the native token will lead to better rates.

    New Partnerships and roadmap

    Even though Reef Finance launched in late September, its development has been in progress for long. The project secured over 20 partnerships in 2020 and more are coming this year. Among them, important were those with Matic, Kava, Covalent, Bluzelle and Chainlink. Reef’s integration with Binance Access Api will also allow a FIAT ramp for cryptocurrency purchases along with a decentralized trading opportunity within their platform.

    In January, they secured a new partnership with OpenDefi, a platform that allows the tokenization of insured and physically backed real-world assets, held by custodians. Users can stake to receive instant loans against their assets and enjoy yield opportunities. More on the partnerships and on OpenDefi can be found here and here.

    Another notable collaboration is the one with Manta Network, a cross-chain privacy devoted Defi platform and price-stable Dex. Reef users will be able to access the liquidity offered by Manta Network Dex, reinforcing the core aspect of Reef Finance: liquidity aggregation.

    On January the 20th a two-week “zero gas fee” initiative started on OpenOcean, a trading platform, which has given traders the opportunity to receive a refund for all the fees spent while trading $REEF. The offer was limited to a total of 40,000 $REEF.

    The official Roadmap is constantly updated and more information on future news can be found on Reef Finance’s Medium page. This project is definitely one of the most anticipated and rumored in 2021!

    Conclusion

    DeFi innovation has to attract a lot more people to keep creating a vibrant and supportive community. After all, it is adoption that helps sustaining all these blockchain developments in the long run. Simplifying access to multiple DeFi products and creating a unified platform is exactly what the space needs today.

    Reef Finance’s target to abstract (?) DeFi looks promising. Not only do they make it easier for users to tap into other exchanges, but the platform also introduced AI technology to make it convenient for traders to manage their assets. The project may be young, but it has the tools users need to efficiently and profitably take control of their funds.

    Our interview with Denko Mancheski, CEO of Reef Finance

    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

    The DeFi series on this website also covers topics not explored on YouTube. For an introduction on what is DeFi, check out Decentralized Finance (DeFi) Overview: A guide to the HOTTEST trend in cryptocurrency

    Tutorials and guides for the ESSENTIAL DEFI TOOLS:

    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.

  • Polkadex: Polkadot’s DEX for the DeFi ecosystem

    Polkadex: Polkadot’s DEX for the DeFi ecosystem

    Polkadex is a new addition to the Polkadot ecosystem. Polkadex a decentralised cryptocurrency exchange (DEX) concentrating purely on tokens powering decentralised finance (DeFi) applications through a user-friendly interface and lightning-fast transactions.

    Background

    Polkadex is developed by a team of highly skilled professionals led by Matthias Hafner (cryptoeconomic advisor), Vivek Prasannan (executive director), Gautham J (CEO & tech lead), and Deepansh Singh (COO). In addition, the team comprises advisors on artificial intelligence, machine learning, and banking.

    The project has struck key partnerships with notable firms such as CMS, Cluster, Blocksync Ventures, Existential Capital, Web3 Foundation, among others.

    What is Polkadex?

    Polkadex is a non-custodial decentralized platform powering the P2P exchange of tokens used in the DeFi ecosystem. The platform looks forward to building a financial-inclusive future through bridges that connect traditional and decentralized finance spaces.

    The project leverages the power of the Polkadot platform.

    The decentralized exchange is designed to solve liquidity issues plaguing many platforms in the market today. The root of the problem is the use of an orderbook on a decentralized protocol.

    The introduction of automated market-maker (AMM) as the solution led to the birth of Uniswap and other DeFi protocols. Unfortunately, the approach had its own limitations.

    For example, it can only be beneficial when there’s a price difference on exchanges using an orderbook. However, even though AMMs rely on orderbook-based platforms, these platforms don’t need AMMs for them to run.

    To bridge the disconnect, Polkadex brought AMMs and the orderbook together. The project is unique because it uses on-chain bots for market making.

    Key Components of Polkadex

    To bring its vision into focus, the project is built on FIVE core components. They include:

    Fluid Switch Protocol

    The switch changes between the platform’s orderbook and automated market-making AMM. The shift ensures that the decentralized exchange (DEX) has seamlessly-flowing liquidity for traders and liquidity providers.

    By utilizing professionally-designed AMM algorithms, Polkadex provides a fully-supported orderbook, which in turn eradicates impermanent loss and price slippage, which are the biggest ills in the DeFi sector.

    Trading Bots

    Polkadex powers high-frequency trading using trading bots. Notably, these bots handle both institutional and retail customers. They use a carefully manicured architecture that optimizes cancellation fees by managing traders’ entry and exit points depending on the situations in the market. (radiomusical.com)

    The bots are also used to perform on-chain market making. This approach fuses AMMs with an orderbook. How does this work?

    When the bots don’t find a match during a trade, they automatically place the trade in an orderbook adding liquidity to the network.

    When a trade doesn’t find a match in the orderbook, the bots are tasked with finding a suitable pair. Note that trades on Polkadex are only completed using the best price.

    Ethereum Bridge

    With most DeFi networks running on the Ethereum blockchain, Polkadex employs a trustless Ethereum bridge to facilitate the movement of any token to the decentralized exchange. Consequently, it makes it possible to interact with other liquidity providers in a trustless way that allows users to maintain control of their virtual wealth.

    High Performance

    Currently, Polkadex is operating in a testnet capable of reaching a speed of 300 transactions per second (tps). Although this speed is enough in the current landscape, the project targets a throughput of 20,000 tps.

    Polkadot Parachain

    The exchange incorporates the Polkadot Parachain as an additional way to drive liquidity into the DEX. However, the parachain is only used to bring tokens from the Polkadot ecosystem to the Polkadex world.

    During the movement, the security of the tokens is provided through an interoperability layer provided by Polkadot. In addition, the layer assumes a non-custodial approach letting token holders have full control of their digital wealth, effectively eliminating centralized service providers.

    Types of Trades Supported by Polkadex

    The exchange supports market and limit orders. Limit orders enjoy zero trading fees while market orders incur a 0.2 percent trading fee.

    The main reason for the difference in trading fees is that limit orders add liquidity to the platform while market orders remove liquidity. Liquidity providers share the trading fee charged on market takers on a 50-50 ratio with the Polkadex team.

    Since bot-based transactions aren’t viable on a decentralized exchange using smart contracts, Polkadex moves above this hurdle by removing network fees.

    However, this presents another problem where malicious actors can attack the application through a DDoS (Distributed Denial of Service) attack. To guard against such incidents, Polkadex lets the blockchain anticipate such attacks and impose a network charge for specific trades.

    The exchange uses several methods to determine a potential DDoS threat. For instance, if a trade has an invalid price, trading pair, order type, or insufficient balance, then it’s categorized as a likely DDoS attack.

    Two Critical Polkadex Partnerships

    Polkadex X KILT Protocol X Fractal

    Polkadex joined hands with KILT Protocol and Fractal to bring decentralized know-your-customer (KYC) functionalities to the DEX. The partnership saw Fractal, an identification firm, and Polkadex leverage KILT’s infrastructure to manage KYC procedures needed by the exchange.

    The move eases the onboarding process for the DEX’s users. Note that KILT stores customer information. Thus, with the collaboration, new exchange users are directed to the KILT platform, where they set-up a wallet that stores their data in a decentralized way.

    Polkadex X Cryptecon.org

    This partnership involved including Cryptecon’s Matthias Hafner into the DEX’s advisory board. Hafner’s experience in developing economic models helps the exchange effectively merge its orderbook with multiple AMMs.

    Current status of Polkadex

    Polkadex is currently in the testnet phase and has recently released version 2.0. New features in this release include:

    1. ability for the public to use testnet tokens to submit trades; and
    2. ability to watch live trades being executed by the Polkadex engine.

    To participate in the testnet, you will need to download the Polka Chrome extension and create an account. Then you can ask for testnet tokens in their official telegram group.

    Polkadex interface
    Polkadex interface (Image credit: YouTube)

    Roadmap: What’s next for Polkadex?

    The next exciting phase for Polkadex of course would be its mainnet launch. It appears that they intend to be on track for mainnet launch in Q1-Q2 2021.

    As for Polkadex’s token sale, they have indicated on their Telegram group that the community round will take place in March 2021.

    Polkadex roadmap
    Polkadex roadmap (Image credit: Polkadex)

    Conclusion

    Polkadex takes a superior approach in fusing AMMs with the orderbook through the inclusion of on-chain market-making bots. Notably, the provision of a user-friendly design, a high throughput, and a non-custodial approach add to the exchange’s uniqueness among other DEXs in the market.

    Additionally, its partnership with KILT and Fractal eases the onboarding process while the Cryptecon collaboration enhances its Fluid Switch component.

    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

    The DeFi series on this website also covers topics not explored on YouTube. For an introduction on what is DeFi, check out Decentralized Finance (DeFi) Overview: A guide to the HOTTEST trend in cryptocurrency

    Tutorials and guides for the ESSENTIAL DEFI TOOLS:

    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.

  • Oddz Finance ($ODDZ): decentralised options trading?

    Oddz Finance ($ODDZ): decentralised options trading?

    Decentralized finance (DeFi) projects have seen an enormous boost in recent years. While there has been an increase in its total value locked, especially in protocols that support yield farming, liquidity mining, and leveraged trading, there is still a need to design these platforms in a way that makes the experience easier for users, especially non-crypto people. This is what Oddz aims to do.

    Oddz Finance ($ODDZ) is offering an on-chain options trading product on their platform without significant costs on the part of the user, lowered barrier to entry, zero gas fees, and reliable data feed. These are features that are not completely embraced in most projects we see in the DeFi space.

    Background

    According to the team behind Oddz, while the boom of DeFi introduced new trading opportunities for cryptocurrency holders, it still has its problems. Most trading platforms that offer derivatives to their users are not as user-friendly as they are supposed to be. This is a concern if adoption is the end goal.

    Moreover, most platforms suffer from slow trade execution and a lack of transparency, which makes it difficult for traders to establish the positions they want given these limitations. Oddz protocol is designed to solve these issues on its own on-chain option trading and derivatives platform.

    As of this writing, the next step for the team is to work on the integration of the protocol to the Polkadot network. There is also a plan for the team to launch its oracle, options on wallet applications, and futures platform by the second quarter of 2021. Conditional and perpetual markets will be introduced by the third quarter of 2021.

    What is Oddz Finance?

    Oddz Finance is a decentralized, cross-chain, options trading platform that runs on Binance Smart Chain, Ethereum, and Polkadot. It offers a simplified approach for users to engage in derivatives trading. Through the platform, they can easily create positions, settle options contracts, and enter futures contracts, among others.

    Oddz abstracts several functions in derivatives trading such as accessing features like call and put options, conditional market, and swap contracts. There are different stakeholders unified by the platform, including arbitrageurs, hedgers, and speculators.

    Products of Oddz Finance

    Leveraging and Hedging Options – Traders can make either call and put options on the protocol. In Call options, traders are given the ability to purchase underlying assets listed on the protocol based on a specified price within a particular time period. In Put options, traders can determine a specific price in selling a particular asset within a time period.

    Oddz Finance products- call and put options
    Oddz Finance products- call and put options (Image credit: Oddz Finance litepaper)

    Conditional and Perpetual Tokens – Users can create and trade conditional tokens which can be valued based on any standard that is tied to it, say political, sporting, and other similar events. They can also trade either long or short through the protocol as supported by the platform’s high liquidity.

    Attributes of Oddz Finance

    • Blockchain Agnostic -The platform can facilitate user trades regardless of the blockchain that they belong to. Because the platform is also designed to be multi-chain, DeFi platforms from other networks can be easily deployed on Oddz.
    • Customizable – Through the implementation of smart contracts, users can freely change the parameters covering their automated trading positions according to their own preferences.
    • Economical – Unlike most leveraging platforms, Oddz does not charge gas fees for each transaction made on the platform.
    • Low Barrier – The platform allows users to leverage any amount in on-chain option trading products without the need for any authorization or third-party approval.
    • Reliable – To help traders establish informed positions on the market, the platform has integrated a built-in oracle which feeds real-time blockchain data to the network.

    Liquidity Pool

    In order to further support the liquidity of the platform in facilitating leveraged trading, users can also choose to lock a portion of their assets using Oddz’s USD-pegged stablecoin (oUSD). These will be used to supply liquidity for both call and put options.

    Liquidity providers can withdraw their stake at any given time. However, a period of at least 14 days is required before they are given the opportunity to collect their share in the premium fees of the network.

    Providing liquidity on Oddz Finance
    Providing liquidity on Oddz Finance (Image credit: Oddz Finance Litepaper)

    There will be multiple liquidity pools for the protocol. It has a maximum threshold for staking and liquidity providers who staked ODDZ tokens will receive their portion of the platform’s collected settlement fees. However, there is a minimum stake requirement for users joining the pools.

    Apart from the distribution of settlement fees to stakers of ODDZ or oUSD, there will be a portion of it that will be allocated to cover the gas fee for users to help keep its “zero gas fee” model.

    ODDZ Token

    ODDZ token is the platform’s native utility token. They can be used as a medium of exchange and to support other platform features such as governance, staking, reward distribution, referral incentives, and liquidity pools, among others.

    ODDZ will be mainly used to pay for transaction fees to help facilitate trades. They can also be staked in the liquidity pool to earn rewards.

    Since the platform is decentralized, ODDZ holders are given the right to vote on important protocol upgrades, modifications, and other community-based proposals.

    And if the users refer others to the platform, they are also entitled to earn rewards which are given out in ODDZ.

    Conclusion

    In order to take advantage of DeFi’s boom, the design of its protocols today must be aimed at lowering its barriers to entry and maximizing adoption. Here, the complexity and level of advanced understanding required to make transactions on a platform is worth considering. There are many projects that offer options trading to users but most of them still haven’t addressed these prevailing concerns so far.

    Oddz Finance is a welcome development in the derivatives and options trading market. Since its platform is user-friendly and it minimizes the barrier to entry from required capitalization, more traders can finally tap leveraged trading in their own portfolio. Another advantage in using the platform is that if users wish not to participate in leveraged trading, they can just stake their holdings and still earn additional rewards in doing so.

    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 ($COLL) ($COLLG): Payment gateway on Polkadot

    Collateral Pay ($COLL) ($COLLG): Payment gateway on Polkadot

    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 “gateways to the real world”. 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 Collateral’s 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, Collateral’s 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 Polkadot’s 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 Collateral’s 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 platform’s 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 platform’s 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 protocol’s 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 platform’s 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 platform’s governance and influence Collateral Pay’s 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.

    COLL token uses
    COLL token uses (Image credit: Collateral Pay)

    Conclusion

    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 platform’s 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

    The DeFi series on this website also covers topics not explored on YouTube. For an introduction on what is DeFi, check out Decentralized Finance (DeFi) Overview: A guide to the HOTTEST trend in cryptocurrency

    Tutorials and guides for the ESSENTIAL DEFI TOOLS:

    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.

  • Kraken Exchange Review (2023): One of the Best Crypto Exchanges

    Kraken Exchange Review (2023): One of the Best Crypto Exchanges

    Kraken is a cryptocurrency exchange that allows users to trade using fiat currencies as well as cryptocurrencies. The exchange has 38 different cryptocurrencies and even more available pairs. In this Kraken exchange review, we are going to tell you everything you need to know about this exchange, from its low fees, security, reliability, and all its key features.

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    What is Kraken?

    Kraken is a US-based crypto exchange founded in 2011, offering users the ability to trade bitcoin and altcoins in Euros. It is one of the most secure exchanges, with comprehensive safety measures, self-regulation, and security audits. Kraken also offers some of the lowest fees in the industry, with free deposits and competitive withdrawals and trades. Users can access the platform via its web platform or mobile apps, making it easy to trade on the go.

    Kraken, one of the leading cryptocurrency exchange, offers a wide range of trading options, including limit orders, stop-loss orders, dark pool trading, and margin trading. It enables users to trade between fiat currencies (e.g., Pounds, Euros) and cryptocurrencies, making it an ideal fiat-to-crypto gateway. Kraken also offers advanced security features, such as two-factor authentication, and a wide range of trading tools and charts to help users make informed decisions. With its user-friendly interface and competitive fees, Kraken is a great choice for both experienced and novice traders.

    Key Features of Kraken

    Here are the key features of Kraken:

    High Liquidity: Kraken is a fiat-to-crypto onramp with high liquidity, allowing users to trade over 32 cryptocurrencies in more than 140 markets with six fiat currencies (USD, EUR, CAD, JPY, GBP, CHF).

    Dark Pool: Dark pools are private exchanges that allow traders to buy and sell securities anonymously, without revealing their orders to other traders. This provides a secure and efficient way to trade without impacting the market.

    Over The Counter (OTC) Service: Kraken’s OTC service provides high-volume traders with personalized service to facilitate their trading needs. The service is designed to help traders maximize their profits and minimize their risks.

    24/7 Customer Support: Kraken provides 24/7 customer support chat for users around the world, offering assistance with any questions or issues related to the exchange.

    Margin and Future Trading: Kraken is a cryptocurrency exchange that offers margin trading with up to 5x leverage. This allows traders to increase their potential profits by taking on more risk. Kraken also provides a secure and reliable platform for traders to access the cryptocurrency markets.

    Forex Trading: Forex trading is an investment opportunity that allows traders to exchange their fiat currency into one of six other supported fiat currencies. With Forex trading, investors can take advantage of the global currency market and benefit from price movements in the foreign exchange market.

    Secured and Trusted Platform: Kraken is the most secure and trusted crypto exchange platform. It has never been hacked, so you can rest assured that your funds are safe when left in Kraken’s custody.

    Overall, Kraken is a well-established cryptocurrency exchange that offers traders a variety of features and trading options. It is a great choice for those looking to buy and sell digital assets with fiat currencies. Kraken provides both advanced trading options for experienced traders and simple trading options for beginners. It also offers a secure platform with a variety of features such as margin trading, staking, and futures trading. Kraken is a reliable and trusted exchange that is suitable for both experienced and novice traders.

    Key Advantages of Kraken

    Kraken is a secure and trusted cryptocurrency exchange platform offering high liquidity, dark pool, OTC service, 24/7 customer support, margin and future trading, and Forex trading. With its advanced security measures, Kraken provides users with a safe and reliable platform to access the cryptocurrency markets and maximize their profits. Kraken is the most secure and trusted crypto exchange platform, having never been hacked, so you can rest assured that your funds are safe when left in Kraken’s custody.

    Buy, Sell, and Trade Digital Assets Securely on Kraken

    Kraken is the industry leader in crypto security, offering a secure and trustworthy platform for users to buy, sell, and trade digital assets. With its advanced security measures, Kraken has never been hacked before, giving users peace of mind that their funds are safe. Kraken also offers a wide range of features, including margin trading, futures, and staking, making it a great choice for both beginners and experienced traders. With its user-friendly interface and low fees, Kraken is the perfect platform for anyone looking to buy, sell, or trade digital assets.

    Exchange Fiat Currency for 6 Supported Currencies

    Forex trading is the exchange of one currency for another. With it, you can take advantage of the fluctuations in currency prices to make a profit. You can also exchange your fiat currency for one of six other supported fiat currencies, such as the US Dollar, Euro, British Pound, Japanese Yen, Swiss Franc, and Canadian Dollar. With the right strategies, you can make a profit from Forex trading and increase your wealth.

    Trading Fees Lowest on Market

    Kraken is one of the most competitive cryptocurrency exchanges when it comes to fees. Trading fees are between 0% and 0.26%, depending on whether you are buying or selling. Buyers usually pay 0.16% and sellers usually pay 0.26% on each trade. Kraken fees also depend on the 30-day trading volume and the currency pair that is being traded. It is a great choice for those looking to trade cryptocurrencies with low fees and a reliable platform. Kraken is committed to providing a secure and user-friendly platform for traders of all levels. With competitive fees and a wide range of trading options, Kraken is a great choice for those looking to trade cryptocurrencies.

    Trade 150+ Cryptocurrencies

    Kraken is a popular cryptocurrency exchange that offers a wide selection of digital assets to trade. With more than 150 cryptocurrencies available, Kraken is one of the most comprehensive exchanges on the market. It offers a variety of coins, including the most popular ones, as well as lesser-known altcoins. Kraken also provides advanced trading tools and features, such as margin trading, futures, and options. The exchange is secure and reliable, and its user-friendly interface makes it easy to use. Kraken is a great choice for both experienced traders and beginners, as it provides a wide range of features and services to meet their needs.

    Proves Security with Proof-of-Reserves Audit

    Kraken has earned global respect for its commitment to customer safety. It has proven its ability to keep customer funds safe through a proof-of-reserves audit, a test that verifies the exchange’s financial reserves. Kraken is a trusted exchange that has been providing secure services to customers since 2011. With its commitment to customer safety and security, Kraken is a reliable choice for those looking to buy, sell, and trade cryptocurrency.

    Useful Tips from Support

    Kraken is a leading cryptocurrency exchange platform that provides users with a wide range of helpful information. New users can easily find the support they need by visiting the “Help” and “Support” sections of the website. Here, they can find useful tips and advice on how to use the platform, as well as troubleshooting guides and FAQs. Kraken also offers a variety of other features, such as advanced trading tools, secure storage, and a user-friendly interface.

    Trade Cryptocurrency on the Go with Kraken’s App

    Kraken’s mobile trading app is the perfect solution for those who want to trade on the go. With its clear interface and simple design, users can take advantage of exceptional trading features, such as real-time market data, advanced order types, and charting tools. The app also offers a secure environment, with two-factor authentication and 24/7 customer support. With Kraken’s mobile trading app, you can stay connected to the markets and make the most of your trading opportunities, no matter where you are. It is available both on Google Play Store and iOS App Store.

    Key Disadvantages of Kraken

    Reliability

    Kraken experienced some reliability issues in 2017. It was overwhelmed by the number of users signing up and had to deal with several cyber attacks. As a result, Kraken had to close for a week in January 2018 to improve security. However, after the closure, Kraken came back with improved security measures, making it one of the most reliable cryptocurrency exchanges in the world.

    Support

    Kraken has had a history of poor customer support. However, the company is now taking steps to improve this. Kraken has implemented a new customer service system that includes a 24/7 live chat feature, as well as a ticketing system and a comprehensive FAQ page. The company is also investing in customer service staff to ensure that customers receive timely and accurate responses to their queries. It is also working on improving its user interface and making it easier for customers to navigate the platform.

    Kraken Withdrawal Fees

    Kraken is a popular cryptocurrency exchange that offers users the ability to buy, sell, and trade digital currencies. Withdrawal fees vary depending on the user’s location and the currency they are withdrawing. For example, if you are withdrawing USD from an American bank account, the fee is 5 USD. However, if you are withdrawing from a non-American bank account, the fee is 60 USD. Kraken also offers users the ability to withdraw in other currencies, such as EUR, GBP, and CAD, with varying fees. Kraken is a reliable and secure platform for users to buy, sell, and trade digital currencies.

    For example, Kraken charges 0.0005 BTC to withdraw Bitcoin and 0.005 ETH to withdraw Ether. This makes Kraken an attractive option for those looking to move their cryptocurrency quickly and cheaply. Kraken also offers a variety of other features, such as advanced order types, margin trading, and staking. With its low fees and wide range of features, Kraken is a great choice for those looking to buy, sell, and trade cryptocurrency.

    Who is Kraken Best for?

    Kraken can be intimidating for beginners. It has a lot of features that can be confusing, even for experienced traders. However, beginners should not be discouraged from using Kraken. Learning to trade on Kraken is like learning to drive a car – you start small and gradually build up your skills. With patience and practice, anyone can become an expert trader on Kraken. So, if you’re a beginner looking to get into cryptocurrency trading, Kraken is a great place to start.

    Kraken is a comprehensive cryptocurrency exchange platform that allows users to buy, sell, and trade digital currencies. With Tier 2 verification, users can deposit fiat money and start trading in minutes. Kraken also offers advanced features such as margin trading and short selling, allowing experienced traders to take advantage of more complex strategies. Kraken is a great choice for those looking for a reliable and secure platform to trade digital currencies.

    Conclusion

    Kraken is one of the most recommended cryptocurrency exchange platforms, offering great features for both beginners and more advanced users. It provides low fees, reliability, and security, making it a great choice for those looking to trade digital assets. The platform is comprehensive and slightly confusing, but its features make it worth the effort. Kraken is a secure and reliable platform, with a wide range of features and tools to help users make the most of their trading experience. With its low fees, reliability, and security, Kraken is an excellent choice for those looking to trade digital assets.

    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.

  • FxPro Exchange Review (2023): An Excellent Platform For Those Who Don’t Want to Hold Actual Cryptocurrencies

    FxPro Exchange Review (2023): An Excellent Platform For Those Who Don’t Want to Hold Actual Cryptocurrencies

    FxPro is an unconventional yet reliable cryptocurrency exchange platform, as evidenced by its positive user reviews. This review will provide you with all the information you need to make an informed decision about whether FxPro is the right trading platform for you.

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    What is FxPro?

    FxPro is a leading provider of contracts for difference (CFD) and spread betting services in the U.K. Founded in 2006, the company has executed more than 445 million orders and is headquartered in London. In 2017, FxPro was voted the U.K.’s most trusted forex brand by Global Brands Magazine, making it a reliable choice for traders. With its competitive spreads, fast execution speeds, and wide range of trading instruments, FxPro is the perfect choice for those looking for a reliable and secure trading experience.

    This platform is a trusted and reliable broker operating in more than 170 countries and providing services to over 2,188,000 client accounts. It is regulated by the FCA, CySEC, FSCA, and SCB and has €100 million of tier 1 capital. FxPro offers a wide range of products and services, including forex, CFDs, and spread betting, to meet the needs of all types of traders. The company is committed to providing a secure and transparent trading environment, with competitive spreads, fast execution, and 24/5 customer support.

    Key Features of FxPro

    Here are some core features of FxPro:

    • Negative Balance Protection for a customer on a real account is a one-of-a-kind broker service. It has an automated transaction monitoring system and a risk management system, and the capital is assured not to slip into a negative balance.
    • Client money is insured at the expense of the broker’s investment in an investor compensation fund.
    • Beginners will have access to tested advisors.
    • Regardless of his account balance, the client has access to a comprehensive set of services.
    • VIP account users are given a personal manager and a free VPS.
    • The capital of the corporation approaches 100 million euros.
    • Offers swap-free accounts to customers whose religious convictions prohibit them from trading, for example. Islamic merchants
    • The solid trading environment given by the professional education and research department.

    Key Advantages of FxPro

    Let’s address this right now and look at the available good aspects of the arrangement.

    FxPro – Not an Actual Cryptocurrency Exchange

    FxPro is a stock and commodity brokerage that is slowly opening its doors to cryptocurrency assets. With the traditional stock market becoming increasingly volatile due to the COVID-19 pandemic, more and more investors are turning to crypto assets as a more stable option for investing. FxPro reviews are still mainly focused on its primary services, but the platform is becoming increasingly attractive for crypto investors. The platform offers a range of services, including trading, investing, and portfolio management, and is a great option for those looking to diversify their investments.

    FxPro, a mainstream stock trading platform, has recently started offering crypto trading options. However, users can only trade CFDs – Contracts for Difference – rather than actual crypto assets. CFDs are a way to invest and speculate on an asset’s price without actually buying the asset. This feature is great for those who aren’t interested in creating or buying a separate crypto wallet and learning the intricacies of cryptocurrency management, but would still like to try and capitalize on the market at their own leisure. FxPro offers a viable solution for those who want to make money from the volatile crypto market without having to manage their own crypto assets.

    One of the Internet’s Most Reliable and Secure Brokerage Sites

    FxPro is a veteran among traditional brokerage sites, having been in business since 2006. It is regulated by the Financial Conduct Authority and offers many different assurances to its customers in terms of security. These include account, withdrawal, asset, and trade security, as well as insurance and exemptions for leverage trading. User FxPro reviews are generally positive, and the platform has a good reputation in terms of security and reliability.

    Many More Features to Look Into

    FxPro is a popular online broker that offers a variety of features, including leverage trading and the FxPro MT4 and cTrader trading platforms. Leverage trading can be a great way to grow your portfolio if done carefully and knowledgeably. The FxPro MT4 and cTrader platforms are both optimized for the best user experience and are available on mobile devices, desktop computers, and the web. (https://musclemx.com/) Users report the best experience with the FxPro MT4 platform, which is still widely used and available. With its variety of features and user-friendly platforms, FxPro is a great choice for those looking to trade online.

    FxPro is a No Dealing Desk (NDD) brokerage, offering its users unfiltered access to the market. With a FxPro demo account, new traders and investors can learn how to use the real interface and trade the assets they’d like. The platform also provides a range of learning materials, such as a FxPro calculator, to help users understand CFDs and the process of trading. In addition, FxPro offers a wide range of financial asset CFDs, including metals, energies, futures, forex, and crypto, allowing users to broaden their portfolios.

    Commission Fees Are Low

    This crypto exchange is a reliable and straightforward online brokerage that offers CFD trading with no blockchain fees. It charges a simple $45 commission from every $1,000,000 worth of CFDs traded, and there are no deposit or withdrawal fees either. The platform is easy to use and provides a range of features such as advanced charting, automated trading, and more. It also offers a variety of trading instruments, including forex, indices, commodities, and cryptocurrencies. FxPro is a great choice for traders looking for a reliable and cost-effective online brokerage.

    Key Disadvantages of FxPro

    As said earlier in the review, the method you can trade cryptocurrencies on this platform is highly contentious – as you can probably assume, there’s a lot of hostility directed at it as well.

    You Do Not Receive Any Cryptocurrencies

    FxPro is a popular online trading platform that allows users to trade crypto CFDs multiple times. However, it does not offer the chance to trade actual cryptocurrencies, meaning users do not receive any coins in their accounts. This means that users cannot transfer coins out of the brokerage and into their wallet, and they are not responsible for their own crypto assets. As a result, crypto enthusiasts who are in it for the long term may not find FxPro to be a viable option.

    It May Be Too Complicated For Inexperienced Traders

    It offers a wide range of learning materials for traders of all levels, but it can be confusing and difficult to use for those who are new to the scene. Despite this, FxPro is a great choice for those who don’t want to hold their own crypto coins, as it replaces modern crypto exchanges. It offers a world of opportunities for traders, with its wide range of markets, competitive spreads, and advanced trading tools. FxPro also provides a range of account types, including a demo account, to suit the needs of all traders.

    How to Register on FxPro?

    We’ll take it one step at a time so you can follow along with ease.

    • Step 1: Navigate to the FxPro website and click the Register button in the upper-right corner of the screen.
    • Step 2: You will be taken to a form where you will be asked for your name, email address, and password.
    • Step 3: You will now be prompted to give some personal information about yourself. This is quite normal KYC for brokerages of this type. Expect to be asked for your phone number, residential address, employment status, annual income, and CFD trading expectations, among other things.
    • Step 4: Once you’ve entered all of the essential information and agreed to all of the terms and conditions, you’re in!

    Registering an account with a high-end cryptocurrency exchange can be a tedious process. However, registering with a reliable exchange like PrimeXBT is not something that should put you off. After submitting identity-verifying documents and adding funds to your digital wallet, you can access the main dashboard of your account. Here, you can check your wallet, account settings, and trading accounts, and access the knowledge base. The trading screens may be confusing at first, but you can easily find crypto CFDs. PrimeXBT is a reliable exchange that offers a secure and straightforward registration process, allowing you to access a wide range of features and services.

    The platform is known for its user-friendly interface and fast ID verification process. According to user FxPro reviews, the verification process should take no more than a few minutes, allowing users to start trading quickly. FxPro also offers a range of educational resources, such as webinars, tutorials, and market analysis, to help traders make informed decisions. With its competitive spreads, low commissions, and fast execution speeds, FxPro is a great choice for both beginner and experienced traders.

    Conclusion

    FxPro is a CFD trading platform that offers a wide range of assets, including cryptocurrencies. However, it is important to note that FxPro does not allow users to trade actual cryptocurrencies, only CFDs. This means that users cannot own the underlying asset, but rather speculate on the price movements of the asset. FxPro also offers a demo account, allowing users to practice trading without risking real money. Despite its features, FxPro is not the best option for those looking to trade actual cryptocurrencies, as it does not offer this service. However, it is a great option for those looking to trade CFDs and practice their trading skills with a demo account.

    It is a secure and regulated online brokerage that allows users to make money from the crypto market. It is available in the US, EU, and other versions, and is compliant with all official regulations. However, if you’re looking for a legitimate cryptocurrency exchange to purchase and trade coins, you’ll have to look elsewhere. Popular exchanges include Coinbase and Binance, both of which offer a wide range of coins and features.

    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.

  • Polkadot ($DOT): Everything you need to know about the DeFi darling of China

    Polkadot ($DOT): Everything you need to know about the DeFi darling of China

    Polkadot ($DOT) refers to itself as a next-generation blockchain protocol that connects multiple blockchains into one network. As we’ve seen in a previous article on the hottest blockchain projects in China, Polkadot and its Co-creator Gavin Wood are highly regarded by the Chinese cryptocurrency community, who are heavily invested in this project. Polkadot is also now gaining a lot of interest in the West because of its listing on major exchanges such as Binance, OKEx and Kraken.

    The purpose of Polkadot is to enable blockchain networks to improve scalability, optimise themselves for specific use cases, work and communicate together, self-govern, and upgrade without the need for hard forks. In this article, we look at Polkadot’s current status, its role in Decentralised Finance (DeFi), the $DOT token and more.

    Here’s our video explaining what is Polkadot in less than 2 minutes!

    https://www.youtube.com/watch?v=2FyLxZezPmk&t=2s

    Background

    Polkadot was launched in 2016 and is run by the Web3 Foundation, which strives to build a free and decentralized web. However, the foundation had made a contract with Parity Technologies to build its protocol. Its Founders are Gavin Wood, Peter Czaban, and Robert Habermeier. Gavin Wood, in particular, is also one of the Co-founders of Ethereum, thus bringing a sense of legitimacy and confidence in the eyes of a lot of cryptocurrency enthusiasts, especially from the Chinese audience.

    The team has extensive experience with distributed ledger systems, blockchain protocols (particularly Ethereum), cryptography, and wallet technology. Despite the lead developer being Parity Technologies, multiple independent teams have contributed to the development of Polkadot.

    What Is Polkadot?

    Polkadot is a sharded bridge-like protocol, which focuses on maintaining communication, value transfer, and pooling the security of blockchains. It allows blockchains to operate with each other in a parallel manner by unifying them into one network. The unification compounds the strengths of different blockchains and mitigates their weaknesses.

    According to the team, Polkadot is a project by developers for developers. It is aimed at connecting public and private chains, oracles, DApps, and services to seamlessly work side by side. And thus, it facilitates the connection of different independent blockchains together into a single Web3 Internet.

    Polkadot’s Building Blocks

    Polkadot is built on Substrate blockchain building framework that is derived from Parity’s experience with Ethereum, Bitcoin, and enterprise blockchains. The protocol’s state machine is compiled with WebAssembly (WASM) – a high performance virtual environment.

    Furthermore, Polkadot uses libp2p for peer discovery and communication. It is coded with C++, Rust and Golang for wide developer accessibility.

    Polkadot Governance Model

    Polkadot governance model is on-chain and well defined. It is designed to include all stakeholders in a governance council. The users can participate in the system’s decision-making by simply holding the native $DOT token. Currently, Polkadot’s Council and Technical Committee are in place, so the project and its direction is completely in the hands of $DOT holders. Governance proposals are submitted by the Council, the Technical Committee or $DOT holders. There are then voted on by the $DOT holding public.

    Status of the Polkadot Network

    Polkadot has been increasing the size of its validator sets. Now there are 274 validators operated by around 200 independant operators and backed by over 7,000 individual nominating accounts.

    This year, Polkadot launched Westend, their main long-term valueless testnet. They have also launched 2 versions of Rococo- which are Polkadot’s short-term parachains public testnets.

    Rococo

    Rococo is a public testnet aimed at testing the parachains consensus process, together with parachains built by the community and their interactions with each other.

    Rococo v1 is the latest version released on 22nd December 2020.

    PolkaBrige

    PolkaBrige is a decentralised application (dApp) platform. It also comes with its own decentralised exchange (DEX) known as PolkaBrige DEX which allows users to directly swap tokens on Polkadot to other tokens on other blockchain platforms such as Ethereum, Binance Smart Chain etc.

    To meet the yield farming craze, Polkabrige also has a smart farming mechanism which allows liquidity providers to earn more rewards.

    Advantages of Polkadot

    The Polkadot project is set to revolutionize blockchain technology by offering a bridge-like framework that provides the following advantages:

    1.       Limitless Scalability – Polkadot can support an infinite number of blockchains and allow them to connect together. These are known as para-chains.

    2.       Adaptable Consensus Mechanism – As different blockchains run on different consensus mechanisms, the Polkadot platform provides an open and adaptable consensus mechanism to host them.

    3.       Cross-Chain Transactions – The framework can support the transfer of value between different blockchains. It’s necessary for interoperability and true integration.

    4.       Defined Governance Mechanism – It has a defined governance mechanism, which eliminates a major problem faced by other blockchains.

    5.       Upgradeability – Polkadot can support upgrades, without having to resort to drastic hard forks to implement change.

    6.       Pooled Security – The blockchains connecting with Polkadot can be secured by a unifying security umbrella. This can help protect small chains that don’t have effective security bootstrapping.

    7. Low transaction fees– Polkadot claims it has lower transaction fees compared to Ethereum.

    Polkadot Token ($DOT)

    The Polkadot token, denoted by the ticker symbol $DOT, is the native asset of the Polkadot platform. It serves three main functions: governance, staking, and bonding. It has a total supply of 10 million DOT.

    Governance

    As mentioned before, DOT holders have the right to govern the platform. When we say ‘right’ it doesn’t mean that they are given privileges by someone. But rather, it is embedded in the protocol of Polkadot that DOT holders inherently have governance capabilities. These capabilities include changing the network fees, auctions, as well as the schedule for adding parachains — parallelized chains that execute parallel to Polkadot’s Relay Chain. Furthermore, holders also have influence over upgrades, bug fixes, and other system maintenance.

    Staking

    Decentralized networks require consensus mechanisms to ensure that only valid transactions are confirmed. Polkadot utilizes NPoS (Nominated Proof of Stake) as its algorithm for validation. And, DOT holders have the option to participate in this essential network operation.

    Basically, holders will be rewarded for staking their DOT in the protocol in exchange for risking their holdings for the validation of the network. This also serves as a disincentive for bad actors to participate in the network, as they are likely to lose their stake if they ‘misbehave’.

    The requirement for participating largely depends on the staking duration and the total number of tokens staked.

    However, it has been discovered by the Polkadot Team that some nominators are not receiving their rewards. The Team is currently working on a solution but this will take time. Meanwhile, the Team recommends those staking with less than 200 $DOT who do not have the opportunity to bond more should move to staking on cryptocurrency exchanges. At present, the following exchanges offer staking-as-a-service for Polkadot: Kraken, Huobi, MXC, and KuCoin.

    Bonding

    The last use case for the DOT token is bonding — this is the process of tying up DOT in order to add new parachains. It is an extension of the functionality of proof of stake.

    DOT 100x redenomination

    After the Council and Technical Committee was put into place, there was a community-run poll to determine how many Plancks should be considered as being one DOT token. Plancks are the smallest unit of exchange in Polkadot, this value does not change, rather it was how many Plancks comprise one DOT which was voted upon. It was decided that one DOT will now be denominated by 1e10 plancks instead of 1e12 plancks. So the new version of $DOT will be 100x smaller than the old $DOT.

    This redenomination will occur on 21st August 2020 at around 13:15 (UTC), specifically at block number 1,248,328. When this occurs, users do not have to do anything because it is only a front-end change. Also, most exchanges such as Binance or Kraken will automatically multiply users’ DOT deposits after the redenomination, i.e. if you deposited 10 old $DOT before the redenomination, you will automatically be credited with 1,000 new $DOT after the redenomination. And to protect users in anticipation of this, users will not be able to withdraw new $DOT until after the redenomination.

    Users have to meantime, bear in mind that some exchanges e.g. OKEx, MXC etc. offer trading pairs in OLD $DOT, whereas others e.g. Binance and Kraken offer trading pairs in NEW $DOT. $DOT holders and traders should check with the exchange they are trading on to see what their policies are for $DOT.

    Projects Built On Polkadot

    The Polkadot ecosystem has an enormous outreach and usage. There are currently 188 projects building on it. This includes crypto-projects related to DeFi, cryptocurrency wallets, infrastructure projects, tokens, Oracle, DAO, privacy, exchange, gaming, IoT, scaling, etc.

    A few well-known projects being built on the Polkadot protocol are Chainlink, Ankr, Celer Network, Akropolis, Ocean Protocol, 0x Protocol, imToken, etc.

    Polkadot’s Role in DeFi Projects

    The Decentralized Finance (DeFi) field relies on composability, cross-chain communication, value transfers, and protocols integrating with each other. It’s practically the entire rationale behind the Polkadot project. And as such many, DeFi projects utilize Polkadot.

    For instance, the DeFi automation and aggregation-based Akropolis project relies on integrations with Maker, Compound, Curve and dYdX,. They have collaborated and contributed greatly to the Polkadot ecosystem.

    Polkadot’s Similarities with Upcoming Ethereum 2.0

    The Ethereum 2.0 Phase 0 mainnet is expected to be launched in November 2020. It will introduce the highly anticipated staking mechanism. However, its full deployment won’t be complete until a few years. Polkadot, as it appears, has an incredible similarity with Eth2.

    For instance, both blockchains support sharding, meaning that they execute processing in parallel by allowing individual shards to divide the workload and communicate with each other. They both also implement hybrid consensus models, staking mechanisms, and state-transition functions.

    Conclusion

    Polkadot is fast gaining traction in the DeFi field and the wider crypto community. Owing to the easy integration, available grants, and wide composability, Polkadot’s projects are rapidly gaining value and the Polkadot association appears to have a positive influence on the project’s token price.

    As the ecosystem further matures, it is likely to become an integral part of the blockchain field and smart contracts platform.

    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

    The DeFi series on this website also covers topics not explored on YouTube. For an introduction on what is DeFi, check out Decentralized Finance (DeFi) Overview: A guide to the HOTTEST trend in cryptocurrency

    Tutorials and guides for the ESSENTIAL DEFI TOOLS:

    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.

  • Newsletter #14

    Newsletter #14

    Red flags of the week

    Value DeFi ($VALUE) vaults suffered $6 million flash loan exploit, similar to Harvest’s

    If it wasn’t for the recent Bitcoin’s rally, this could have been known as the Hack Season. More and more projects, especially in decentralised finance (DeFi), are getting attacked and no smart contract seems to be safe anymore.

    On Nov 14 at 10:45 AM EST, mere hours after the release of Vault Phase 2 which was celebrated on Twitter as the ”highest security, the best return and the greatest community“ in crypto, a complex “double” flash loan attack exploited the MultiStables vault of ValueDefi Protocol. In what was later defined as one of the most complex attacks seen in DeFi, the hacker used two flash loans, with Aave and Uniswap, to steal USD $6 million.

    A Post-Mortem article by the Team explained what happened: the attack took 80k ETH through a flash loan on Aave, bought 116 million DAI and 31 million USDT, deposited 25 million DAI in the Vault, got back 24 million mvUSD and swapped 91 million DAI and 31 million USDT to USDC. The mvUSD were then withdrawn from DAI and the 80k ETH plus fees returned to Aave. Finally, 33 million DAI were bought back and 2 were sent back to the Deployer (as other times have happened lately). The culprit did this by taking advantage of vulnerabilities within Value DeFi vaults.

    Origin Dollar ($OUSD) has lost millions in a flashloan attack

    Three days later, it was Origin dollar ($OUSD)’s turn to be attacked.

    The Yield-generating stablecoin project suffered a loss of funds of $7 million, $1 million of which were deposits by Origin’s founders, employees and the company itself. The team is still looking into exactly how the attack was carried out but they suspect it was a flash-loan transaction that seems to be the root of the attack.

    Allegedly, following the attack, the hacker was able to sell some of the stolen OUSD, DAI and ETH on Uniswap and Sushiswap. the attacker is also washing the stolen funds using RenBTC.

    You can read the detailed explanation of the exploit in this updated article by the Origin team.

    This was the fifth flash loan attack for Defi in the last month, after Harvest Finance, Akropolis, CheeseBank and Value.

    Overall, according to CipherTrace, Defi hacks are credited to around $100 million in 2020 so far.

    Crypto Exchange Liquid Says User Data Possibly Exposed in Security Breach

    As officially confirmed, crypto Exchange Liquid as been hacked on 13th November.

    The attack consisted in one of the hosting providers incorrectly transferring the account control and domain to a malicious actor which gained access to some of the internal email accounts. This breach resulted in user data exposure. As they stated:

    “We believe the malicious actor was able to obtain personal information from our user database. This may include data such as your email, name, address and encrypted password. We are continuing to investigate whether the malicious actor also obtained access to personal documents provided for KYC such as ID, selfie and proof of address, and will provide an update once the investigation has concluded.”

    This could possibly lead to identity thefts, spam emails and phishing attempts. Even though the team doesn’t believe it would pose an immediate threat for its users, they suggest “that all Liquid customers change their password and 2FA credentials at the earliest convenience”.

    UNI farming ends…what happens next?

    As the $UNI farming was coming to its planned end on 17th November, speculations on the future price of $ETH and of the Uniswap token were emerging, and the first Uniswap Community Call didn’t succeed in establishing any definite decision on the platform’s future steps. More than USD $2 billion worth were locked in four pools that were giving $UNI rewards (ETH-DAI, ETH-USDC, ETH-USDT, ETH-WBTC); all money that were destined to flow back on the market. As $ETH price was in the mid $300 before the farming started in September, many were fearing for an imminent dump as people would swap it to stable coins or more investment-appealing altcoins. Price was not the only concern for Uniswap, as all that pooled money meant very slow slippage on the Dex as well.

    To seize the moment, Sushiswap ($SUSHI) announced an increase in rewards for the same four pools on their platform. Exactly one hour later, Hayden Adams (inventor of Uniswap) advanced a new proposal to continue with the rewards for an additional 2 months at half the rate of the genesis distribution. The proposal is now awaiting the consensus check phase, before farming could restart on 4th December.

    Sushiswap and Uniswap TVL
    Sushiswap and Uniswap TVL (Image credit: DeFi Pulse)

    In the meantime, as we can observe in the next image, the Uniswap TVL has significantly dropped at the expenses of Sushiswap’s, which increased reaching a similar net value to that of its main competitor.  

    Bitcoin continues its rally


    In the aftermath of the US elections, even if the result is still controversial, $BTC continues its rally like it couldn’t care less. In the last days its Market Cap even reached an ATH of $350 billion, surpassing the Dec 16 2017’s previous high (due to $BTC inflation, even if the price is not at ATH there are more coins in circulation than 3 years ago, resulting in a higher market cap). The price is currently over $18k! Finally!

    Bitcoin price chart
    Bitcoin price chart (Image credit: Coingecko)

    As $BTC was growing lately, one could bet that the media would start covering the news as well, and that is exactly what happened. We have seen BBC, CNBC’s Fast Money, CNN and many more interviewing “experts” and speculating about the next ATH, paired with a lot of old and new memes being shared everywhere. With wide coverage and more retailers getting onboard fearing of missing out (Paypal’s crypto service reached $25 million in trading volume in the first month since launch) could this mean that the (local) top is getting closer?

    While all of this was happening, it looks like things for Chinese miners are not that good. Wu Blockchain reported that 75% of the surveyed miners are struggling to pay their electric bills. This is due to the restrictions the Chinese government is applying on crypto making it very difficult to buy and sell into $CNY. Many miners have seen their bank cards frozen or their machines shut down because they didn’t have cash to pay the electric bill.

    Therefore, there is also speculation that this big rally has not only been driven by an increase in demand, but also because the dump activity by miners, that creates constant sell pressure, has slowed down.

    What the fork Bitcoin cash?!

    On 15th November Bitcoin Cash ($BCH) has undergone a protocol upgrade, as established by the roadmap.

    This update contained a Hard Fork which has split the chain into two, BCHN and BCHA after block #661647. The reason why this is happening is because of a disagreement on the current state of the blockchain between the Bitcoin Cash Node and the Bitcoin Cash ABC communities after a proposed update by Amaury Sechet (ABC) had been rejected. It looks like $BCHN will be the dominant part as 80% of the miners showed support before the split and it is now 667 blocks ahead.

    This is not the first fork for $BCH as it was, itself, the result of a Bitcoin fork in 2017.

    How’s ETH2 staking race going?

    Less than a week before the deadline, the ETH staked on the Ethereum 2 mainnet are less than half of what’s needed to trigger the start of the Beacon Phase 0. As anticipated by many sources, the community is expecting a decisive increase in deposits rate in the last days before the deadline. If the minimum requirements will be met by 24th November, ETH2 will launch on 1st December, otherwise it will automatically start 7 days after the threshold will be met.

    In a recent AMA, Danny Ryan, Core Researcher at the Ethereum Foundation answered users’ concerns about the possibility of a failed launch. Ryan says the Foundation does have a solution, which is to adjust the threshold down to around 100k+ ETH which they consider to be sufficient. This will avoid leaving the staked ETH in limbo. Ryan also noted that for those who did stake, there will be high rewards for these early adopters. Their Github page also goes into more details on other alternatives.

    Here’s 5 things you NEED to know about ETH 2.0

    Also, learn more about this staking race and its potential implications:

    https://youtu.be/VqEP_c4jhvc
    Will Ethereum 2.0 (ETH) launch successfully?

    OKEx Exchange is finally resuming withdrawals!

    More than one month after the Okex Exchange decided to suspend all cryptocurrency withdrawals, the team has just announced that operations will reopen on or before 27th November. They also reassure that 100% of users’ funds are safe.

    The official announcement confirmed that one of Okex’s private key holders was cooperating with the authorities in a case that has nothing to do with the Exchange itself. They specified that although “OKEx has always used a backup mechanism for private key holders to ensure that each private key holder can trigger the activation of the backup private key in the event of long-term incapacitation, such as death or memory loss”, this particular scenario caught them off guard as no strategy had been prepared for.

    Significant loyalty campaigns will be announced as a sign of gratitude to the community.

    Follow the OKEx developing story here.

    Boxmining happenings: Interviews, giveaways and more!

    • Why do we need privacy and scaling on the blockchain? Privacy is the next big leap for blockchain technology as can be used to allow anonymous data sharing, exchanges without front running, and the real fungibility of tokens. We spoke to Prof. Dawn Song about the need for privacy-preserving smart contracts and how this is implemented on Oasis Protocol ($ROSE): https://youtu.be/JQzKKOV_ycA
    • After months of work our NEWLY REDESIGNED website is up!! https://boxmining.com/
    • We have a fantastic collaboration with the DuckDao team for a chance to win (in our opinion) the best NFT EVER!

    Upcoming events

    *All times are in UTC unless otherwise specified

    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.

  • Polkastarter ($POLS) – Kickstarter for Cryptocurrencies?

    Polkastarter ($POLS) – Kickstarter for Cryptocurrencies?

    Polkastarter ($POLS) is a cross-chain decentralised protocol, powered by Polkadot, that allows start-ups to raise funds in a decentralised and interoperable environment.

    In 2020, the decentralized finance ecosystem (DeFi) recorded encouraging figures in the number of DeFi protocols, as well as the number of funds locked in these platforms. On the number of protocols, the platforms addressed different spheres such as lending, trading, and insurance.

    Unfortunately, not many protocols touched on revolutionizing conventional fundraising models such as initial coin offerings (ICOs), initial decentralized exchange offerings (IDOs), and initial exchange offerings (IEOs).

    However, projects like Polkastarter are on their way to bring a sigh of relief to startups looking for innovative ways to attract funding. Before we dig deeper into the project and what it brings to startups, let’s take a look at the group behind it.

    Background

    Daniel Stockhaus and Tiago Martins are the top brains behind Polkastarter. As project co-founders, Stockhaus is the CEO, while Martins is the CTO. Notably, the two have vast experience spanning from tech entrepreneurship to software development.

    Other members of the team include Danilo Carlucci and Matthew Dibb. Carlucci is a serial entrepreneur and angel investor, while Dibb is a strategic advisor.

    What is Polkastarter?

    Polkastarter is a decentralized platform enabling startups and other projects to attract capital through token auctions and inter-blockchain token pools. As you would have guessed from its name, the project is built on the Polkadot network that sits on Ethereum.

    Polkadaot Network

    Stockhaus settled on Polkadot because of the network’s major strengths in scalability, speed, interoperability, upgradeability, and governance. To elaborate, Polkadot surpasses Ethereum and Bitcoin transaction speed thanks to its use of parachains, which power horizontal scalability, and Grandpa consensus mechanism, which drives vertical scalability.

    Polkadot’s Proof of Stake consensus, GRANDPA (Source: Polkadot Wiki ‘Polkadot Consensus’)

    Polkastarter taps into these strengths to enable governance through community voting and staking. The network also relies on Polkadot to drive liquidity mining.

    Using these features, the project scores better than existing decentralized exchanges and swap protocols such as Uniswap, Bounce, and Primablock. For instance, these networks don’t support cross-chain pools, while Bounce and Primablock support a limited array of virtual assets.

    Polkastarter’s Use Cases and Major Features

    Polkastarter expands outside the fundraising space to crowdfunding and allows participants to benefit from discounted sales. Additionally, the protocol can increase privacy to over the counter deals by enabling password protection during such trades.

    Polkastarter Key Features (Source: Polkastarter Docs)

    The network differs from other similar projects since it allows:

    • Inter-chain swaps
    • Fixed and dynamic swaps
    • Community voting on critical governance issues
    • Decentralized and permissionless token listing
    • Comprehensive Know your customer (KYC) procedures
    • Users to spot scams from a distance through a built-in anti-scam feature

    Notably, combining these features brings low-cost transactions, fast cross-chain token swaps, the ability to move virtual assets across decentralized platforms, and a user-friendly design.

    How Polkastarter Handles Fixed Swaps?

    Fixed swaps pools are significant components of the network. Unlike with automated market making, fixed swap counteracts price volatility. Also, fixed swaps provide a greater level of transparency on the amount raised during fundraising.

    Polkastarter employs fixed swap pools instead of AMM swap pools. This approach solves, among other challenges, the risk of private investors artificially inflating the price and dumping their holdings and the cost of token offerings.

    Additionally, fixed swap pools ensure a fair distribution of tokens while eliminating the risk of rug pulls in a liquidity pool.

    Note that instead of using a bonding curve approach to determine token prices in a pool, Polkastarter sets a fixed price when swapping tokens. As such, it’s possible to add other parameters, such as how much a single user can contribute to a project. Additionally, it’s easier to set more parameters to ensure transparency and fairness on new token holders.

    Immediate advantages of using fixed swaps are:

    • The amount raised and tokens sold can easily be calculated.
    • It attracts investors distributed both demographically and geographically.
    • Token holders are given a chance to acquire tokens at a standard price.

    Polkastarter’s Native Token ($POLS)

    Tokenomics

    The network has a native token called $POLS, which it uses for various sections on the platform. POLS’s total supply is 100 million tokens. Exactly 42.5 percent of the tokens were sold during the seed sale, private sale, and Uniswap listing. Other tokens went to the marketing fund, team, advisors, and foundational reserve.

    $POLS Token Distribution & Utility (Source: Polkastarter Docs – What are the Tokenomics?)

    Funds raised during the sales periods went into legal/accountancy (5%), ecosystem growth (20%), liquidity/exchanges (30%), and product development (45%).

    POLS is used on the Polkastarter ecosystem as a utility token. Among its major uses are governance and fees.

    As a governance token, its holders can vote on crucial matters such as protocol features and tokens to be displayed on the network. On fees, transactions on the platform are paid using the native currency.

    Other Utilities

    • Staking – The token can be staked to earn staking rewards on various fronts. For example, it can be staked to receive pool rewards or for pool access. Note that the option to stake POL for pool access is solely upon pool creators. However, the choice is ideal for giving top liquidity providers private access to high-end pools.
    • Liquidity mining – Additionally, Polkastarter’s native currency can be staked to participate in liquidity mining. Rewards are distributed to entities providing liquidity on the secondary markets, among other subsections.

    Two Key Partnerships With Polkastarter

    Although Stockhaus and the team have inked many partnerships with reputable decentralized platforms, two stand out.

    Polkastarter and Covalent

    Covalent is a platform capable of fetching intricate details about a crypto wallet. As such, it allows Polkastarter and its users to check the trustworthiness of a token contract. The users have access to the token contract age, verification, transaction volume, among other details.

    Polkastarter and DIA

    Decentralized Information Asset (DIA) is a platform that provides distributed oracles on Polkastarter. Thanks to the exceptional qualities of its oracles, DIA helps Polkastarter provide warnings against massive price slippage.

    Other partnerships involve Moonbean, Shyft, and Orion Protocol.

    Conclusion

    By using fixed price swaps instead of AMM, Polkastarter sets the bar higher in decentralized funding. It adds the transparency and fairness aspect that has been missing on similar platforms. The projectl’s partnerships with Covalent and DIA gives its users peace of mind knowing that they can pick a suspicious project from the crowd and avoid price slippage.

    Furthermore, Polkastarter’s native token opens the door to distributed governance while giving its holders an extra way to earn rewards through staking.

    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

    The DeFi series on this website also covers topics not explored on YouTube. For an introduction on what is DeFi, check out Decentralized Finance (DeFi) Overview: A guide to the HOTTEST trend in cryptocurrency

    Tutorials and guides for the ESSENTIAL DEFI TOOLS:

    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.

  • SuperFarm ($SUPER): Cross-chain NFT Farming with no code required

    SuperFarm ($SUPER): Cross-chain NFT Farming with no code required

    SuperFarm ($SUPER) is a cross-chain DeFi platform aimed at easing the process of creating non-fungible tokens (NFT) while giving them the capacity to add value to their tokens. It has its own NFT marketplace which creators could benefit from. The protocol is designed to make the user’s whole blockchain journey easier. Finally, SuperFarm is a continuously growing project that could attract more partnerships from several gaming platforms.

    Background

    Elliot Wainman, the creator of EllioTrades and co-founder of Dapp Evolution Games, began his work on SuperFarm with the objective of mass adoption for the Ethereum network. Elliot’s target is to reach over 2.5 billion gamers worldwide who are looking to purchase in-game assets through NFTs.

    SuperFarm’s first fundraising round amounted to a total of $1.1 million, where prominent cryptocurrency and financial firms like Bitcoin.com, GBV Capital, Solidity Ventures, and Spark Digital Capital, and many others participated.

    Before we dive deeper into what SuperFarm does, it is important to understand what NFTs are.

    What are NFTs?

    Non-Fungible Tokens (NFT) refer to digital assets that represent almost anything, from works of art or a person’s identity. NFTs cannot be duplicated and they all have distinct metadata.

    They are commonly used to create a blockchain representation of a real world asset so that they can be traded with crypto. Since NFTs are programmable, they can be attached with different characteristics and attributes according to the needs of the creator.

    What is SuperFarm?

    What is SuperFarm? (Source: ‘PART 1: Introducing SuperFarm‘ medium article)

    SuperFarm is a cross-chain DeFi platform for NFT farming without any code required, with the primary aim is of making it easier for anyone to create their own tokens and add value to them through NFT farming. And because it does not have any coding requirement on the part of the business, using the platform lessens the technical complexity of coming up with their own NFT.

    SuperFarm NFT Farming (Source: ‘PART 1: Introducing SuperFarm‘ medium article)

    The way SuperFarm abstracts the process of tokenization is through a series of visual, beginner-friendly tools. They can customize the rules for their tokens, identify their attributes, incentivize a behavior, and more. The SuperFarm platform is easy to use but it does not compromise quality and effectiveness.

    The tokens that can be generated on the platform are ERC20 compliant. They can sell them to any supported marketplace. In fact, users can even set-up their own NFT marketplace through the platform if they want to.

    NFT Farming

    Through the platform, businesses can easily create their own farms and put up their NFTs there. Users can access them to stake on NFTs and earn incentives. There is a minimum requirement of SUPER tokens, however, before anyone is allowed to open up new farms.

    NFT Marketplace

    Users are given access to the NFT store where they can purchase NFTs through the reward points they are given from farming. It also allows users to buy NFTs with supported cryptocurrencies.

    Superverse

    Superverse is the gaming interface for SuperFarm. It is an NFT-based card game that functions on an autobattler setup. Aside from game points, some of the rewards that are available in Superverse include NFT drops from SuperFarm-partnered gaming platforms.

    There is a minimum requirement for SUPER holdings before a user is given access to the Superverse.

    SuperFarm Feature Comparison Chart (Source: ‘PART 1: Introducing SuperFarm‘ medium article)

    Superfarm Native Token – $SUPER

    $SUPER token is SuperFarm’s native utility token. It can be used as a medium of exchange or to pay for governance and transaction fees. SUPER also gives its holders access to products and programs available in SuperFarm’s gaming ecosystem, video game partners, and NFT drops.

    Since the platform seeks to be fully-decentralized in the future, its governance is community-directed. Any decision or proposal to amend or modify the platform has to go through the vote of SUPER holders. Voting power can be determined by the amount of the SUPER tokens you hold. The more you hold in SUPER, the stronger your voting power will be.

    Other purchases you can make in the platform also involves SUPER. It can be used to access some important features of the platform which are only available to holders of SUPER.

    If you want to purchase SUPER, the token is listed on Uniswap. Below are some of the use cases for SUPER.

    SuperFarm $SUPER use cases (Source: ‘PART 1: Introducing SuperFarm‘ medium article)

    Staking

    SUPER can also be staked. Users just have to lock their SUPER in a smart contract so they can earn token rewards for doing so. This reward structure comes from the collection of platform fees which are made in SUPER as well.

    Farming

    SUPER can be staked for NFT rewards too. By participating in the staking for NFTs, users can also receive exclusive NFT rewards from partner farms.

    Users can also set up their own farms on the platform. However, there is a minimum requirement of 100,000 SUPER tokens in order to do so. The purpose of the quota is to make sure that there is a low likelihood for spams, good quality of farms, and to incentivize the purchase of the token.

    NFT Drops

    SUPER holders are also entitled to NFT drop rewards. These are the NFTs available in the Superverse and partnered video games. However, to be a part of the NFT drops, users should be holding the minimum SUPER tokens required.

    SuperFarm NFT Drops (Source: ‘PART 1: Introducing SuperFarm‘ medium article)

    Conclusion

    SuperFarm is an interesting DeFi project. One of the platform’s strengths is that it has already identified who its target market is. If the project takes off successfully and gets more gamers and developers on-board, it is highly likely that it will drive people’s interest in crypto and DeFi significantly. Imagine 2.5 billion gamers jumping onto the crypto train; it will be a huge feat.

    Moreover, SuperFarm is a project that businesses can easily benefit from. If they want to create their own NFTs and market them, SuperFarm’s interface has prepared the platform for them as well. If the project achieves its objectives, it offers a promising outlook for the whole of DeFi. Looking at where it stands today, it is not impossible. The platform is easy-to-use and profitable. It belongs to the DeFi projects we have to look out for.

    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

    The DeFi series on this website also covers topics not explored on YouTube. For an introduction on what is DeFi, check out Decentralized Finance (DeFi) Overview: A guide to the HOTTEST trend in cryptocurrency

    Tutorials and guides for the ESSENTIAL DEFI TOOLS:

    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.

  • Moonbeam ($GLMR $RIVER): expanding to multi-chain with Polkadot

    Moonbeam ($GLMR $RIVER): expanding to multi-chain with Polkadot

    For a long time, decentralized platforms have been operating in silos, but now, developers are looking for ways to interface with different blockchain platforms. Apart from interoperability, new projects are looking for ways to power the seamless movement of tokens between chains.

    One such project is Moonbeam ($GLMR, $RIVER), a platform that works under the belief that the future of distributed systems is multi-chain. The project brings smart contract technology to another level and takes developers, end-users, collators, and other network participants along with it. Moonbeam’s entry into the scene provides a crucial pillar to decentralized finance (DeFi) platforms.

    For example, SushiSwap has already transferred its core exchange protocol on Moonbeam, specifically on the Moonbase Alpha TestNet. Below, we explore the platform, including how it offers Ethereum developers an easy way out.

    Background

    PureStake, a master in developing reliable, secure, and next-generation blockchain infrastructure, is behind the Moonbeam project. PureStake’s team experience spans from managing high-end data centers, as-a-service platforms, and networks for institutions strictly bent towards security and availability.

    Top PureStake team members include Derek Yoo, Stefan Mehlhorn, and Tim Baldwin. Yoo, the CEO, has 20 years of experience in software development and cloud systems. Mehlhorn is the chief operating officer with 25 years in technical operations in various top companies such as Samsung.

    Before joining PureStake, he was the CEO of Collego and Parmessa. On the other hand, Baldwin is PureStake’s vice president of engineering and has 20 years of experience leading DevOps and application development teams.

    What is Moonbeam Network?

    Moonbeam is a developer-focused decentralized network providing tools to enhance compatibility with the Ethereum blockchain. Notably, the network fully implements the Ethereum Virtual Machine (EVM), an application programming interface (API) with Web3 compatibility, and provides bridges to enhance connection with Ethereum-based protocols.

    With these functionalities, developers can deploy solidity-based smart contracts and decentralized application (Dapp) frontends on Moonbeam with little to minimal modifications.

    Additionally, Moonbeam is part of the Polkadot ecosystem, where it operates as a parachain.

    Consequently, it taps into Polkadot’s security and connects to other networks on Polkadot.

    Building on Moonbeam can either be done by employing a standalone node on the network or connecting to Moonbase, a testnet environment. The protocol supports major wallets such as MetaMask and MathWallet.

    Note that Moonbeam’s Ethereum compatibility allows it to support other wallets that work with the Ethereum blockchain. In addition, it works with major Ethereum tools such as Remix, Truffle, HardHat, Web3.py, Ethers.js, and Web3.js. Additionally, for projects requiring interaction with external data, Moonbeam supports leading oracle platforms like Band Protocol, Chainlink, and Razor Network.

    How Moonbeam Works

    Moonbeam employs a proof-of-stake (PoS) mechanism for block production and transaction confirmations. However, it leverages Polkadot’s PoS model that features validators and collators. Collators collect transactions from Polkadot’s parachains, such as Moonbeam. They then create state transition proofs for use by validators on the relay chain.

    Collators are selected depending on their stake in the protocol. However, the staked amount is slashed in case a collator acts dishonestly. Notably, network users can delegate their tokens to collators who share their block rewards with the delegators or nominators. The high the stake, the stronger the network security, the higher the chance of being selected as a collator.

    Currently, the Moonbeam network caps the maximum number of nominators that can delegate their tokens to 10, and a nominator can stake their tokens with a maximum of 8 collators.

    Each block production round takes roughly two hours and is made up of 600 blocks. The staking rewards are delayed for two rounds.

    Observe that collators charge nominators for their service as soon as they are successfully nominated to be block producers. Therefore, during reward distribution, collators remove the commission after getting the block rewards and then distribute the rest to nominators depending on their delegated amount.

    Glimmer ($GLMR) and River ($RIVER) token

    Moonbeam has 2 utility tokens: Glimmer ($GLRM) and River ($RIVER). The major difference between the 2 tokens is that they are respectively deployed on the Polkadot and Kusama relay chain.

    Glimmer and River token utilities
    Glimmer and River token utilities (Image credit: Moonbeam network)

    Glimmer token (GLMR)

    The Moonbeam platform has a base asset called Glimmer (GLMR), which has specific functionalities throughout its ecosystem. Glimmer works on the Moonbeam network and the Polkadot relay chain.

    GLMR is used to:

    1. Pay transaction fees.
    2. Support network operations.
    3. Reward collators.
    4. Power on-chain governance.
    5. Support gas metering of smart contract execution.

    GLMR has a genesis token supply of 10 million and an annual inflation rate of 5%. The token distribution goes to seed funding, strategic sale, public sale, parachain bond funding, treasury, development, partners/advisors, founders, among others. Moonbeam tackles the 5% inflation by burning 80% of the transaction fees.

    River token (RIVER)

    The RIVER token is deployed on Kusama and acts as a “CanaryNet” on the network. This means the token utility behaviours on Moonriver will mirror Moonbeam.

    Governance on Moonbeam

    Moonbeam employs community governance through the Glimmer token. Token holders range from developers, users, collators, and contributors. The governance aspect defines how token holders interact with proposals, referendum, voting, enactment, lock period, and delegation. Moonbeam takes a layered approach to governance.

    Most importantly, governance is conducted on-chain. Some critical governance components include:

    1. Referendum – This is made up of the proposal with the highest number of votes. A proposal contains suggestions to change Moonbeam parameters, such as code upgrades and governance parameters. The platform supports a maximum of five proposals at each referendum.
    2. Voting – Voting is done by token holders. Notably, the weight of each vote depends on the amount of staked tokens.
    3. Council – This is a group of participants that propose referenda and vet community-suggested proposals. However, council members have special voting rights and are voted in by GLMR holders.
    4. Treasury – The treasury holds funds from users who wish to submit a proposal. The council can either approve or reject such proposals. Unfortunately, in case of a rejection, the proposer loses the amount held in the treasury.

    Conclusion

    Moonbeam is not a typical EVM implementation. Instead, it adds to the existing Ethereum features such as staking, on-chain governance, and inter-blockchain connections.

    Notably, Moonbeam’s community governance framework employs a layered structure. As such, it ensures only the most viable proposals make it to the voting stage. Additionally, integrating EVM and Web3 makes it easier for developers to transfer existing projects to the network with minimal changes.

    On the other hand, GLMR helps power the network by enabling staking, payment of transaction fees, and rewarding collators. Note that the network’s use of the Polkadot PoS consensus mechanism provides scalability and high transaction speeds.

    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.

  • A Complete Guide to Binance Smart Chain (BSC)

    A Complete Guide to Binance Smart Chain (BSC)

    Binance Chain was launched by Binance in April 2019. Home of the Binance Token ($BNB) currency, it is optimized for ultra-fast trading. To achieve this, it had to make certain trade-offs, one being that it wasn’t as flexible from a programmability standpoint as other blockchains. Smart contracts in a system optimized for fast trading could significantly congest the network. Like how CryptoKitties brought Ethereum blockchain to a standstill at the height of its popularity and scalability remains one of the most challenging hurdles to blockchain development.

    Binance Smart Chain aims at changing this problem. It is a new blockchain with a full-fledged environment for developing high-performance decentralized applications. It was built for cross-chain compatibility with Binance Chain to ensure that users get the best of both worlds. Binance Smart Chain went live on mainnet on September 01, 2020, activating the parallel blockchain to Binance Chain, enabling the creation of smart contracts and the staking mechanism for BNB.

    What is Binance Smart Chain (BSC)?

    Binance Smart Chain (BSC) is best described as a blockchain that runs in parallel to the Binance Chain. However, unlike Binance Chain, BSC boasts smart contract functionality and compatibility with the Ethereum Virtual Machine (EVM). The design goal here was to leave the high throughput of Binance Chain intact while introducing smart contracts into its ecosystem.

    BSC is not a layer two or off-chain scalability solution for the existing Binance Chain. It’s an independent blockchain that could run even if Binance Chain went offline. Because BSC is EVM-compatible, it makes it easy for developers to port their projects over from Ethereum. For users, it means that applications like MetaMask can be easily configured to work with BSC with just tweaking a couple of settings.

    Binance Smart Chain vs Binance Chain: Differences?

    Binance Smart Chain vs Binance Chain

    Binance Chain vs Binance Smart Chain (Image credit: Binance Smart Chain)

    How does Binance Smart Chain work?

    Cross-chain Compatibility

    Binance Smart Chain was envisioned as an independent but complementary system to the existing Binance Chain with the idea being that users can seamlessly transfer assets from one blockchain to another. In this way, rapid trading can be enjoyed on Binance Chain, while powerful decentralized apps can be built on BSC.

    Binance Smart Chain supports the BEP-20 token standard, which uses the same functions as its Ethereum counterpart ERC-20, while Binance Chain, supports the BEP-2 token standard. BEP20 is a developer-friendly token standard that allows anyone to deploy fungible digital currencies or tokens on Binance Smart Chain. What’s more, leading digital assets on other chains can be ported onto Binance Smart Chain in the form of pegged BEP20 tokens. For example, you could use Binance Bridge to swap bitcoin (BTC) for BTCB (BEP20) tokens backed by BTC. BTCB (BEP20) tokens can then be deployed in DeFi protocols to earn yield on bitcoin. The same goes for ETH, XRP, DOGE, and many more.

    To move tokens from one chain to another, the simplest method is perhaps to use the Binance Chain Wallet, available on Chrome and Firefox. The cross-chain transfer is the key communication between the two blockchains. Essentially the logic is that the transfer-out blockchain will lock the amount from source owner addresses into a system-controlled address/contracts. The transfer-in blockchain will unlock the amount from the system-controlled address/contracts and send it to target addresses.

    Binance cross-chain transfer
    Binance cross-chain transfer (Image credit:BSC Whitepaper)

    Ethereum-Compatible

    Smart contracts, which are Ethereum-compatible, are supported by BSC. Through this feature, developers can build or migrate DApps, tools and other ecosystem components on the BSC network without much friction.

    Proof-of-Staked-Authority

    The platform runs on a proof-of-staked-authority consensus model. This combines both delegated PoS and proof-of-authority (PoA) to achieve network consensus and maintain blockchain security.

    In this model, there are elected validators who take turns in confirming transactions on the network and are tasked to produce the blocks in a PoA manner, which puts the amount of their stake and their reputation in the community into consideration. To become a validator, a user must stake BNB.

    This consensus model allows BSC to achieve around three-second block times. If a block proposed by the validator gets added to the chain, they receive the transaction fees incurred in that block as their reward. PoA is known for its capacity to thwart 51% attacks, as well as its tolerance for Byzantine attacks.

    Validator Quorum

    A validator quorum is required to secure the BSC network. The blockchain has 21 validators that are elected by BNB stakers every 24 hours. Anyone can be a candidate for election as a validator, but only those who belong to the top 21 highest-staked nodes will be chosen for the next validator set.

    There is an “epoch” period for the platform, where validator sets can update the BSC network as needed. Every epoch period consists of 240 blocks, which is around 20 minutes. BSC also implements “slashing” to disincentivize malicious actors from validating inaccurate transactions or double signing. Slashing is designed to expose an attacker and make their attempts extremely expensive to execute.

    Key Metric Comparison

    Binance Smart Chain has made immense traction in early 2021 so far partly thanks to Ethereum’s congestion and gas fee issues, which has caused developers and staking investors to look for other options.

    According to “Binance Smart Chain: Q1 2021 Overview” published by DappRadar

    • BSC is the most used blockchain in terms of unique active wallets averaging 105,000 in March 2021.
    • Gas prices were almost 14 times lower on BSC if compared to Ethereum in 2021 Q1.
    • Although Ethereum is still leading in terms of TVL with $54 billion. BSC TVL saw 121% growth month-on-month.
    • BSC finance dapp Venus has surpassed Compound and Uniswap in terms of TVL reaching $6.3 billion at the end of Q1 2021.

    The BSC community made the network even more appealing to new users as a cost-effective and stable alternative, by lowering its gas fee from 15 Gwei to 10 Gwei to counter Binance Coin (BNB)’s price jump to over $600 in April 2021. At the end of March 2021, BSC gas fees were 14 times lower than on Ethereum. As a result, in Q1 2021 BSC generated record-high figures.

    BSC vs Ethereum gas price comparison
    BSC vs Ethereum gas price comparison (Image credit: DappRadar)

    According to the “DappRadar Q1 industry report”, in terms of key metrics, daily unique active wallets grew by 639% year-on-year from 62,000 in 2020 Q1 to more than 458,000 in 2021 Q1. BSC has led the pack with average daily unique active wallets of 105,000. In March, the chain also had the biggest increase in terms of unique active wallets by 50% month-on-month. The Ethereum and Flow blockchains generated an average of around 75,000 and 53,000 daily unique active wallets respectively.

    unique active wallets by protocol
    Unique active wallets by protocol

    Binance Smart Chain dAPPs

    Some of the most popular decentralized applications on BSC are listed below with the full list of dApps available in DappRadar:

    PancakeSwap is the number one automated market maker (AMM) on Binance Smart Chain. The ascent of BSC in 2021 cannot be described properly without mentioning the PancakeSwap exchange. The BSC-based decentralized exchange has seen remarkable growth in 2021, both for trading volume as well as its governance token CAKE. Like Uniswap or SushiSwap, you can do token swaps for BEP-20 tokens on PancakeSwap. Users can also earn passive income by providing liquidity, take part in lottery to win NFTs, participate in token sales, compete for spots on the leaderboard, and so on. PancakeSwap has become the second most popular DEX after Ethereum’s UniSwap.

    BakerySwap is a decentralized automated market-making (AMM) protocol on BSC and its first NFT trading platform, ‘Bakery NFT Supermarket’.  BakerySwap aims to be a faster and cheaper version of Uniswap. BAKE token is the native BEP-20 governance token of the platform and users can earn BAKE tokens by providing liquidity on BakerySwap. BAKE can be used to compose a random combo meal, which is a unique NFT(None-fungible token). Your unique NFT combo is not only a collectible item, but also a BAKE farming tool. Each NFT combo has a staking power and can be staked to earn BAKE.

    Venus  can be seen as a hybrid of Compound and MakerDAO on BSC. It is a borrow-lending protocol like Compound or Aave on Ethereum. It’s a decentralized money market where you can borrow and lend BEP-20 tokens with algorithmically set interest rates. Venus also enables a decentralized stablecoin called VAI, which is backed by a basket of cryptoassets.

    Autofarm is a leading DeFi yield aggregator on BSC that has 3 products as part of the Autofarm ecosystem, namely Vaults (yield optimizer), AutoSwap (DEX Aggregator), and farmfolio. The yield optimizer implements the most optimal strategies at the lowest cost to maximize users’ yields and AutoSwap implements optimizations to route users swap trades so that users can find the best price and swap rates. Lastly, farmfolio is an intelligent portfolio manager and tracker which helps users manage their assets across various DeFi farming projects. The AUTO token is the platform’s native token. Tokenomics are deflationary and AUTO holders get to benefit from fees from cross-chain vaults, DEX aggregator, and the token will also be used for governance.

    Spartan Protocol is a synthetic asset protocol on BSC. It allows users to create liquidity pools for BEP-20 tokens like other AMMs. However, it aims to allow for the creation of synthetic assets collateralized by liquidity pools, as well as lending and on-chain derivatives moving forward. Spartan Protocol provides community-governed and programmable token emissions functions to incentivize the formation of deep liquidity pools. This strong base of liquidity will be utilized to provide asset swaps, synthetic token generation, lending, derivatives and more. The common base asset SPARTA provides an internal pricing mechanism without reliance on external oracles. Binance Smart Chain was chosen as the protocol’s home to allow for near-instant settlement and extremely low gas fees.

    To interact with the applications on BSC we require a wallet. Two of the most used wallets are MetaMask and the Binance Chain Wallet. In addition to these, you can also use Trust Wallet, Math Wallet, Ledger, TokenPocket, Bitkeep, ONTO, Safepal, and Arkane.

    Connecting MetaMask to Binance Smart Chain

    MetaMask can be downloaded on Chrome and Firefox, or on iOS and Android from the MetaMask Download page. From there, select whichever platform you’re using, and follow the steps to install it on your device and create a wallet.

    MetaMask main page
    MetaMask main page

    The MetaMask wallet inherently interacts with the Ethereum public chain as seen from the top right corner of the screen which mentions the “Main Ethereum Network”. At this stage, we would be unable to interact with the Binance Smart Chain dApps. To change this, we need to access settings and point the wallet towards Binance Smart Chain nodes.

    MetaMask drop down menu
    MetaMask drop down menu

    On the Settings page, locate the Networks menu.

    MetaMask settings page
    MetaMask settings page

    Next click on Add Network in the top-right corner to manually add the Binance Smart Chain. It’s important to note that there are two networks we can use here: the testnet or the mainnet. Below are the parameters to fill in for both Binance Smart Chain Mainnet and Testnet.

    Mainnet

    • Network Name: Smart Chain
    • New RPC URL: https://bsc-dataseed.binance.org/
    • ChainID: 56
    • Symbol: BNB
    • Block Explorer URL: https://bscscan.com

    Testnet

    • Network Name: Smart Chain – Testnet
    • New RPC URL: https://data-seed-prebsc-1-s1.binance.org:8545/
    • ChainID: 97
    • Symbol: BNB
    • Block Explorer URL: https://testnet.bscscan.com

    Once you Save the Network and return to the main view, you’ll notice two things: the network has automatically been set to the one you just entered, and the units are no longer denominated in ETH, but in BNB. You might still see the Ethereum logo, but we are now interacting with the BSC.

    MetaMask Binance Smart Chain
    MetaMask Binance Smart Chain

    How to deposit cryptocurrencies on Binance Smart Chain using MetaMask

    Once a wallet has been set up, we can withdraw from our Binance account or use the Binance Bridge.

    To track our activity on the BSC blockchain, we can use BscScan which is made by the same team that made EtherScan.

    Withdrawing from Binance Exchange to a BSC wallet

    If you already have a Binance account, this may be the easiest option to simply withdraw from your Binance account to a BSC wallet.

    Select the BEP20 compatible token, here we have taken BNB as an example. Select Withdraw and you will land on this page

    MetaMask select coins
    MetaMask select coins

    In the “Address” section, put in your BSC wallet address. Binance will automatically change the “Network” to “BEP20 (BSC)”. If it doesn’t, change it manually.

    MetaMask select network
    MetaMask select network

    Then simply enter the amount you wish to send and click on withdraw. After a few conformations, you should see the funds arrive in your MetaMask BSC wallet.

    MetaMask withdraw coin
    MetaMask withdraw coin

    How to use the Binance Chain Wallet Extension

    Download the Binance Chain Wallet Extension from the web store. Binance Chain Wallet Extension is available ob Chrome and Firefox.

    Binance Chain Wallet Extension
    Binance Chain Wallet Extension

    Transfer some funds from your Binance Exchange or MetaMask over to this Binance Chain wallet. We will use BNB as an example here.

    Binance Chain Wallet Extension fund transfer
    Binance Chain Wallet Extension fund transfer

    Click on “Binance Chain Network” on the top and change it to “Binance Smart Chain Network”. Copy the address and switch back to “Binance Chain Network”.

    Switch to Binance Smart Chain Network
    Switch to Binance Smart Chain Network
    Switch back to Binance Chain Network
    Switch back to Binance Chain Network

    Click on Send. Paste the BSC address and click on the arrow next to send on the top left corner of the screen.

    Copy address on Binance Chain Wallet Extension
    Copy address on Binance Chain Wallet Extension

    Change the network back to “Binance Smart Chain Network” and congratulations, your funds will near instantly be transferred cross chain.

    Binance Chain Wallet Extension transaction success
    Binance Chain Wallet Extension transaction success

    How to use Binance Bridge

    Another great way to bring assets to BSC is using the Binance Bridge. You can select many of the biggest blockchains, such as Ethereum or TRON, and convert their native tokens to wrapped tokens on BSC. The bridge works in both directions. You can monitor the on-chain reserve that ensures that the wrapped tokens on BSC are sufficiently collateralized by the native tokens in the Proof of Assets.

    Go over to Binance Bridge and connect your MetaMask by clicking on “Change Wallet” in the top right corner of the screen. Make sure to change the settings over on MetaMask so that its pointing towards the BSC.

    Binance Bridge
    Binance Bridge

    Once connected, pick you token you would wish to port over to your BSC. Here we have selected USDT as an example. Enter the amount you wish to send and click on next. Make sure to doublecheck the destination address.

    Binance Bridge select token
    Binance Bridge select token

    Next you will be greeted with options on how you wish to complete the transaction. Select “I will send tokens from my own wallet”

    Binance Bridge select transfer method
    Binance Bridge select transfer method

    Once selected, a popup will appear with the truncation summary and confirmation. Click on Confirm.

    Binance Bridge confirmation page
    Binance Bridge confirmation page

    Next there will be a popup asking you to send the selected token and amount to an address.

    Binance Bridge deposit page
    Binance Bridge deposit page

    Go back to your MetaMask, switch back to your Ethereum network, and send the funds from your Ethereum wallet to the address mentioned above. Switch the network back to BSC and after a few conformations, you should see your funds arrive in your MetaMask BSC wallet.

    Closing thoughts

    Binance Smart Chain greatly extends the functionality of the original Binance Chain. Though still in its infancy, the promise of BNB staking alongside EVM compatibility makes the platform an ideal engine for developers building powerful decentralized applications. And as long as the most popular smart contract-based blockchain, Ethereum, continues to struggle with congestion, slow transaction speeds, and exorbitant transaction fees, we can expect to see the increased adoption of more affordable alternatives like BSC, Polkadot and Cardano to continue.

    However, we must keep in mind that the centralized nature of the BSC is a problem for its DeFi narrative. The only way to get onto BSC is via the central crypto exchange Binance or the central Binance Bridge. Here, the central provider has full control and can stop deposits and withdrawals on BSC at any time creating a direct bottleneck that centralizes BSC. Binance suspended withdrawals from the Binance Smart Chain to prevent a fraudster from laundering stolen cryptocurrencies. Although victims were happy about the measure, this intervention highlighted how centralized BSC ultimately is. Ethereum advocates, therefore, see BSC as more of a centralized database.

    Regardless of the increasing demand for BSC and other options, Ethereum remains on top. Numerous detailed and tested documentation makes life easier for developers and the existing infrastructure, security, decentralization, and network effects adds to its appeal. The high transaction fees are an imposition, especially for smaller market participants, but at the same time show that the Ethereum network is more popular than ever before. Serious developers and companies still choose to develop their applications on Ethereum with the EIP-1559 update planned for July 2021 and Ethereum 2.0 in the horizon. Second layer solutions, such as Optimism, which promises faster and cheaper transactions, are also supposed to eliminate the scalability problem.

    So, can Binance Smart Chain dethrone Ethereum? While the size and influence of the Binance exchange and the market cap of the BNB coin make it a strong contender, its centralized nature runs counter to the central ethos of the crypto economy, so it’s unlikely to replace Ethereum anytime sson. Ultimately, though, the crypto economy is not a zero sum game so a more likely scenario is that both will flourish, with the competition between them driving innovation on both networks. A deep dive into the BSC technical side can be found in the whitepaper.

    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://attap.umd.edu/) 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.