Sberex (@sberex) • Hey
DeFi Pro
Publications
- BTC ETF is finally approved!
- Why bring traditional financial assets on chain? Tokenization for regulated Real World Assets benefits in comparison with TradFi centralised accounting systems:
- Efficiency and Cost Savings: Blockchain technology enables the creation of decentralised, distributed ledgers that can be more efficient than traditional centralised systems. It is especially important for start-ups from traditional finances who can not afford to build expensive centralised accounting systems. Transactions on a blockchain can be processed faster and at lower costs, reducing the need for intermediaries and streamlining various financial processes.
- Transparency and Security: Blockchain provides a transparent and tamper-resistant record of transactions. This transparency can enhance trust among participants and reduce the risk of fraud. The cryptographic nature of blockchain also enhances security, making it more resistant to hacking and unauthorised access.
- Faster Settlements: Traditional financial transactions often involve multiple intermediaries and take time for settlement. Blockchain allows for near-instant settlement of transactions, reducing the time and cost associated with clearing and settlement processes.
- Smart Contracts: Smart contracts are self-executing contracts with the terms of the agreement directly written into code. They automatically enforce and execute the terms when predefined conditions are met. This can streamline complex financial processes, automate certain tasks, and reduce the need for intermediaries.
- Global Accessibility: Blockchain operates on a decentralised network, making it accessible from anywhere in the world. This global accessibility can be particularly beneficial for financial institutions involved in international transactions, as it can reduce the time and costs associated with cross-border payments.
- Improved Compliance: Blockchain can help financial institutions comply with regulatory requirements by providing a transparent and auditable trail of transactions. This transparency can make it easier for regulators to monitor and enforce compliance.
- Innovation and Competitive Advantage: Embracing blockchain technology allows traditional financial institutions to stay competitive in a rapidly evolving financial landscape. It opens up opportunities for innovation and the development of new products and services that leverage the advantages of blockchain.
- Tokenization of Assets: Blockchain enables the tokenization of various assets, such as stablecoins, real estate, stocks, and other financial instruments. This can make it easier to trade and transfer ownership of these assets, increasing liquidity and reducing friction in the traditional financial markets.
- Ledger system breach or points of centralisation in decentralised systems
Yesterday's Ledger exploit which drained $ 484K of user's funds one more time confirms that we have as many vulnerabilities as there are points of centralisation in decentralised systems.
What happened yesterday is that the hacker supposed to be a former Ledger employee inserted malicious code into the GitHub library for Connect Kit, a widely-used piece of blockchain software maintained by the Ledger crypto wallet.
It means that you might have 100% bulletproof and secure decentralised blockchain, but if the wallet which you use depends on centrally managed software there is a risk of exploiting this point of centralisation. This is what happened with Ledger and it might happen with any other centrally managed wallets.
To be 100% secure today you need your own blockchain node with a native open-source wallet application which is not user-friendly but completely reliable.
There may be room on the market for decentralised wallets which have good UX and do not have points of centralisation confirmed by external code audit.
- 10 Trends for 2024, add yours in comments!
In the vivid landscape of decentralized technology trends for 2024, a tapestry of innovation and transformation unfolds, shaping the future of the digital realm. Here, let's explore the seven key trends that paint this picture:
1) RWA (Real World Assets): The once abstract world of decentralized finance now extends its reach into the tangible realm. US Treasuries, bonds, and real-world loans find a digital expression through tokenization. A symphony of ERC standards, such as the ERC-3643 for permissioned tokens and the ERC-1400 Security Token Standard, orchestrates the secure and compliant representation of these assets on the blockchain.
2) Regulated DeFi: The boundaries between traditional finance and the decentralized realm blur as institutional financial organizations and asset managers step into the decentralized finance arena. This marks the inception of TradFi and DeFi convergence, forging a path toward a regulated and institutionalized decentralized financial landscape.
3) Web3 Social: The social landscape undergoes a decentralized revolution. Web3 Social emerges as decentralized social networks take center stage. In this new era, users are not just contributors but also earners, as attention, likes, and reposts are valued commodities exchanged directly between users, epitomizing the mantra of "Like & Earn."
4) Decentralized Identity Solutions: A new era unfolds where users take control of their digital identities. Blockchain-based decentralized identity solutions gain prominence, allowing individuals to manage and authenticate their personal information securely. This trend enhances privacy and security, paving the way for a self-sovereign identity landscape.
5) Uniswap v4 Launch: Uniswap, a trailblazer in decentralized exchanges, introduces its fourth iteration, accompanied by the development of a robust hooks ecosystem. This launch extends beyond mere transactions, incorporating the principles of regulated DeFi, further solidifying Uniswap's role in shaping the decentralized financial landscape.
6) Decentralized Finance Derivatives Boom: A surge in decentralized derivatives markets takes place within the DeFi space. Platforms offering decentralized options, futures, and other derivative products gain popularity, providing users with more sophisticated financial instruments in a decentralized and permissionless environment.
7) DePIN (Decentralized Physical Infrastructure Networks): The digital and physical worlds converge as DePIN emerges, defining blockchain protocols that construct, maintain, and operate physical infrastructure in an open and decentralized manner. This trend paves the way for a new era of collaborative, community-driven infrastructure development.
8) ZK Everything: Zero Knowledge technology becomes the backbone of decentralized applications and protocols. ZK-SNARKs and their counterparts permeate the ecosystem, ensuring privacy, security, and scalability. This trend heralds a new era of trustless interactions and data integrity, fostering confidence in the decentralized landscape.
9) Account Abstraction and Self-Custody Wallets Mass Adoption: The complexities of managing private keys give way to a more user-friendly and secure experience. Account Abstraction (AA) technology leads the charge, providing a seamless user experience and heightened safety. This sparks mass adoption of self-custody wallets, empowering users to take control of their digital assets with confidence.
10) Cross-Chain Interoperability: A network of interconnected blockchains emerges, fostering collaboration and interoperability on a global scale. Cross-chain solutions become the architectural bridges, enabling assets and data to seamlessly traverse different blockchain networks. This trend symbolizes a united and collaborative approach to building a decentralized future.
As we navigate the decentralized landscape of 2024, these trends intertwine to create a dynamic and inclusive ecosystem, where the digital and physical worlds seamlessly coexist, and the promise of decentralized technologies reaches new heights.
What did I miss? Add in comments!
- Take a chance and check your Pyth Token Airdrop eligibility. You may be eligible if you:
- Interacted with apps that use Pyth data on any supported blockchain, including Solana, Aptos, Sui, Cosmos, and the EVM ecosystem.
- Received and held Pyth NFTs from official Pyth community activities.
- Received special community roles in the official Pyth Discord server.
Pyth Token is distributed on Solana. You can immediately swap tokens for USDT.
Just got extra $ 600 from this airdrop!
https://airdrop.pyth.network/
- BTC 41K DONE! Pre-halving hype started! The next Bitcoin halving is estimated to occur around April 2024.
- CrvUSD is now on Aave Protocol
- EigenLayer and shared Ethereum consensus
In Vitalik’s post from 2023 May 21 “Don't overload Ethereum's consensus” https://vitalik.eth.link/general/2023/05/21/dont_overload.html there is an idea of “using the Ethereum validator set to secure other chains”. Why not use existing Ethereum validators for supporting consensus for other chains? The benefits for both sides are obvious. Ethereum validators get an additional source of revenue as a payment for protecting other chains. New chains do not need to look for or create from scratch reliable validator network, besides consensus supported by existing Ethereum validators is supposed to be cheaper than a dedicated validator’s network because Ethereum validators could share their costs with not one but a few supported chains including Ethereum itself.
This very simple idea is extremely complicated in execution. And EigenLayer Protocol has taken on this challenge. In its white paper protocol calls this service of supporting other networks’s consensus - restaking and supported networks - AVS (actively validated services). AVS examples include sidechains based on new consensus protocols, data availability layers, new virtual machines, keeper networks, oracle networks, bridges, threshold cryptography schemes, and trusted execution environments. Quit an extensive list of possible protocol users and participants.
The key problem which should be resolved by EigenLayer at every moment is to make sure that the so-called Cost-of-Corruption (CoC) is always much higher than Profit-from-Corruption (PfC). To give you an example, the protocol should avoid situations when a blockchain network with TVL (Total Value Locked) of 10 million USD is protected by validators with staked assets (ETH in our case) for let’s say 1 million USD. In this situation CoC < PfC (1 < 10) and for this particular set of validators it makes perfect economic sense to break the rules of consensus and steal 10 million USD while losing 1 million USD of ETH as a result of slashing by EigenLayer. I did not find a clear answer to this problem in the white paper except to increase as much as possible the restacked amount of ETH by participating validators. Other solutions include “creating an open-source cryptoeconomic dashboard, which will allow AVSs built on EigenLayer to monitor whether the set of operators participating in their validation tasks is entrenched across many other AVSs or not”.
It should be noted that EigenLayer is in development for now so it is not in full production mode. The idea of shared consensus is very attractive and I think we will see more protocols trying to resolve this problem in the near future.
Enjoy the EigenLayer white paper and hope we will retake some ETH in the near future!
https://docs.eigenlayer.xyz/overview/readme/whitepaper
- There is no 100% reliable centralized crypto exchange in the world! 🌎
Centralization = Censorship
DeFi is the future of finance!
- Maverick - Decentralised AMM Protocol where liquidity follows the price
After the Uniswap v3 launch the concentrated liquidity brought higher profitability for liquidity providers at the cost of going out of price range so that your liquidity is no longer used in swaps and you as a liquidity provider do not earn any fees.
Maverick AMM with its novel approach offers a solution for this problem so that your concentrated liquidity literally follows the price if you are out of range.
According to Maverick AMM white paper four modes are built into the protocol:
- Mode Right - liquidity moves with price as price increases, but doesn’t move when price decreases
- Mode Left - liquidity moves with price as price decreases, but doesn’t move when price increases
- ModeBoth - liquidity moves with price as it increases and decreases
- Mode Static - liquidity does not move
The New Maverick AMM approach definitely deserves attention and will help LPs be profitable as a simple static LP-providing approach is hardly profitable.
As far as I understand from the white paper moving liquidity comes at a transaction cost which is paid by swappers, not liquidity providers which is good for LPs.
Enjoy white paper and try Maverick AMM protocol.
https://files.gitbook.com/v0/b/gitbook-x-prod.appspot.com/o/spaces%2FaD2baZPIivxeaMVPT33w%2Fuploads%2F1zoNyAv0LePkAegpa5nU%2FMaverick_Directional_AMM_v1_0.pdf?alt=media&token=3f590c8b-24e0-4df6-ad74-acbf93e3518c
- Flower of sorrow,
Beautiful maiden endures,
Believing in love.
https://objkt.com/asset/hicetnunc/805924
- 🔴 Vote for the next blockchain tech market narratives:
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https://snapshot.org/#/orbapp.eth/proposal/0xb1c4c27d045140146100c211ed43af59bae0f5f49eeb8f6f06dc2de9cc1d034c
- Unexpected love,
Passionate, the last to come,
Steals the heart away.
https://objkt.com/asset/KT1C7nKLhPpJ5c8Gv4DPL7fELMuZyLpdcpeL/18
- Don't forget to claim your Q Blockchain rewards if you took part in the Saving & Borrowing Incentive Program
https://sbp.qdev.li/
- Open source credit protocol from Circle USDC issuer
If you’ve ever been thinking about full-scale bank working on blockchain you should consider the Perimeter Protocol developed by the Circle Research team.
Basically, protocol offers a set of smart contracts which allows Lenders to deposit funds (USDC stablecoin or any other crypto asset) into the Pool, borrow funds from the Pool by Borrowers and manage the Pool by Admin role.
In classical banking, the Bank is equal to the Pool Admin role for Perimeter Protocol. Banks decide who will receive a loan and who will not, set parameters of credit facilities and manage liquidity. There is a special procedure for the case if the borrower defaults on the loan and yes in the case of the Perimeter Protocol lenders suffer losses when the borrower defaults and loan does not have enough collateral.
Perimeter Protocol is flexible to set a lot of custom parameters and requires experienced developers to deploy in case of practical use.
The protocol is highly dependent on centralised Pool Admin role decisions and is not ready (without significant improvement) to serve as a fully self-regulated on-chain protocol, as well as AAVE or Compound, do.
No governance token is built into the Perimeter Protocol structure, so it basically closely repeats classical banking lending functionality but with smart contracts on EVM-compatible blockchains.
Enjoy the white paper!
https://6778953.fs1.hubspotusercontent-na1.net/hubfs/6778953/Circle%20Research/Whitepapers/Perimeter_Protocol_Circle_Research.pdf
- Interesting UK Prime Minister Rishi Sunak & Elon Musk interview on AI future and regulation
https://youtu.be/AjdVlmBjRCA?si=TNJV0XNvIA8Q1WYV
- 50 million STRK tokens have been earmarked for Starknet Early Community Member Program initiative!
Overview of process and timeline
- Project application: 30 Oct 2023 to 23 Nov 2023 at 00:00 UTC.
- Decision by the committee: 29 Dec 2023
Who can apply
The program’s focus is on individual contributors – those who have chosen to actively contribute to the ecosystem, shaping its growth through their efforts. It aims to support not just coders, but also those who engage in community support, share knowledge, and play a role in making the Starknet ecosystem more vibrant and resourceful.
In this first phase, the program will address the following categories:
- Individual who significantly contributed to technical discourse in the community
- Individual contributors listed by key projects of the ecosystem
- Individuals who organized events around the world (meetups, conferences, workshops)
- Individuals who regularly published Starknet branded content
https://community.starknet.io/t/announcing-the-early-community-member-program/102092#overview-of-process-and-timeline-2
- Fluid is a new lending protocol from Instadapp coming in a few months.
In essence, the key Fluid difference from AAVE or Compound is its liquidation mechanism. To remind you liquidation in a lending market happens when loan value passes a certain threshold (collateral factor) in relation to collateral value. Liquidation mechanism keeps protocol loans healthy so the value of collateral is always higher than that of loans.
On AAVE or Compound protocols there is a special group of players - liquidators or keepers who look after each loan and as soon as the collateral factor passes a certain level repay part of the loan and get part of the collateral with a discount making this particular under liquidation position healthier. Liquidated positions might lose 5-10% or even more from their collateral value due to liquidation so it is a very undesirable event which should be avoided at all costs.
Fluid offers a very similar idea for liquidations as was pioneered by Curve for its crvUSD stablecoin - lending-liquidating amm algorithm (LLAMMA). In its whitepaper Fluid for some reason does not mention Curve LLAMMA but, basically, they offer the same as for crvUSD idea of soft collateral liquidation using AMM or DEX formula.
As soon as the collateral factor goes down after a certain value traders start to buy out collateral and immediately repay the loan in Uniswap like AMM with as low as 0,1% liquidation penalty. This penalty is 100 times less than AAVE and Compound have so it makes sense to decrease the loan-to-value factor to 95% and not be afraid of soft liquidation for 1% to 10% from collateral value as it happens without significant losses of collateral. Of course, if we are in the rear market crash situation then soft liquidation will not work and a standard approach with higher penalties might be applied.
As a result of this novel approach to liquidations Fluid promises us the following better than competitors' features:
- Highest LTV (Loan to value). Borrow up to 95% against ETH.
- Better rates for lenders and borrowers.
- Highest security standards by isolating risk, automated limits & protocols class.
- Earning on collateral & debt with smart collateral & smart debt.
- Lowest liquidation penalties (as low as 0.1%).
- Lowest liquidation gas (3-4 times less than most protocols).
It is not yet possible to test Fluid lending protocol. It will be launched by mid January 2024.
If you are interested read more about Fluid:
https://blog.instadapp.io/fluid/
- In the crypto night,
Morning growth shines brightly,
Hope in the daylight.
https://objkt.com/asset/hicetnunc/800133
- Cryptocurrency dreams,
Price fluctuates like the tide,
Hope and fear abide.
https://objkt.com/asset/KT1GiKtp8yT3sFkwyQy6VTZrF5vGN2DGByRD/132
- Look at “Thorough mathematical modelling and analysis of Uniswap v3” research paper.
Key mathematically based conclusions from the paper:
- If we are not taking into account fees earned by liquidity providers, LP strategy is always a loss strategy in comparison with HODL strategy due to Impermanent Loss (IL) which is only materialised when the LPs withdraw their tokens from the pool.
- Except in the (small) range where the liquidity was added, the Impermanent Loss behaves as the opposite (up to a constant factor) of a call or put payoff, depending on whether the price goes out of the price range.
Providing liquidity to DEXes like Uniswap is becoming a more and more professional task. With Uniswap v3 concentrated liquidity constant control and management of open LP positions is required to stay profitable. Complex strategies combining Uniswap liquidity provision and derivatives like call and put options could be developed to hedge Impermanent Loss.
https://hal.science/hal-04214315/document
- A young maiden's hope,
Cryptocurrency dreams grow,
Expectations rise.
https://objkt.com/asset/KT1C7nKLhPpJ5c8Gv4DPL7fELMuZyLpdcpeL/26
- Autumn. Sunny day!
Autumn leaves falling, cryptocurrency's dance, digital wealth calls.
https://objkt.com/asset/KT18mq1pgvX9zjjcLnAHswF6g7ofmn7VeTi3/0
- dYdX today released their custom dYdX Chain v1.0 - Sovereign Blockchain built using Cosmos SDK & CometBFT for v4 of the dYdX Protocol. The key advantages for migrating to Cosmos are:
- no trading gas fees
- 2000 transactions per second
- customizable blockchain
https://github.com/dydxprotocol/v4-chain
- Q Faucet. Get some free tokens for Q Mainnet.
Q is new Ethereum compatible blockchain.
https://faucet.q.org/
- J.P. Morgan recent article about Digital Identity compares Soulbound Tokens (SBT) and Verifiable Credentials (VCs). It is interesting that while writing about Verifiable Credentials authors of the text do not mention Zero Knowledge Proofs which is the key technology for building privacy-focused off-chain Digital Identity solutions.
Link to the J.P. Morgan Digital Identity article:
https://www.jpmorgan.com/onyx/documents/Digital-identity-assessing-web3s-building-blocks.pdf
- New Q Saving & Borrowing Incentive Program.
Q is a new EVM-compatible blockchain with built-in Governance & DeFi. What I did on a video:
- bridged USDC collateral from Ethereum to Q blockchain (you might want to bridge other collateral assets WBTC or DAI);
- minted QUSD (native Q stable coin) with USDC collateral on Q blockchain;
- staked QUSD in savings to get additional Q token rewards.
From the statistics page total value locked is already 263271$ which is good!
https://sbp.qdev.li/
Step-by-step staking instructions:
https://medium.com/q-blockchain/q-development-ag-saving-borrowing-incentive-program-a-comprehensive-walkthrough-c505c17ccdcd
- IPOR v2: Decentralised Interest Rate Swap Protocol
First in its kind DeFi interest rate swap protocol just launched their second version.
If you want to swap floating stable coin interest rate (USDC, USDT, DAI) for fixed one for up to 90 days IPOR is the place where you can do it.
Besides being a liquidity provider for the protocol will let you yearn 5-6% APY on stable coins.
https://app.ipor.io/liquidity-mining/steth
- FRAX protocol launched a few hours ago sFRAX (Staked FRAX) with 10% APY:
https://app.frax.finance/sfrax/stake
- "While Bitcoin is just a payments system [for BTC only], Ethereum offers a global ecosystem of decentralised goods and services... BTC has no intrinsic value, but ETH has intrinsic value based on services and apps developed and used."
Societe Generale, a large European bank (2023)
-
Today MakerDAO (DAI stablecoin issuer) resumed the buyback of its own MKR token. Accumulated MKR tokens are added to Uniswap v2 MKR/DAI liquidity pair. The estimated annual rate of the buyback is about 200 mln USD, about 20% of MakerDAO's current 1 bln capitalisation!
https://makerburn.com/#/buyback
- New day - new stable coin! GHO from AAVE Protocol was launched today on AAVE Ethereum v3 market. Enjoy borrowing rates from 1,06-1,51% APR
https://app.aave.com/?marketName=proto_mainnet_v3
- GE
- GE
- Life is a constant evolution; welcoming changes is part of being human ❤️
And there's no barrier that can stop wav3s of innovative spirit 🌊
- There is NO such thing as a safe centrliased crypto exchange. Send to centralised crypto exchange only funds you can afford to lose. Keep you assets in your self custody only!
- New DeFaino Lending Protocol on Binance Smart Chain!
Try DeFaino Protocol from Distributed Lab:
https://defaino.com/marketplace
✅ Add some liquidity to DeFaino
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- Hey #lens fam, Let's celebrate $SUI
This is another win for me and my community, What about you?
Only Followers Gets rewarded.
LFG
- Is momoka first L3??
lens to the moon!!
- Ethereum Operating System
https://tokene.io
- Crypto is still very far from mass adoption!
- Circle’s spaces about the launch and the importance of the interoperability for #Web3 social and financial layers. #rarimo
- The future of crypto is bright, and we're leading the way with $WEB3, the Arch Ethereum Web3 Index Token 🚀
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- "Concentration"
The 1st artwork from "Balance and Order".
2 WMATIC (50% goes to @320colab)
50% MIRROR REFERRAL + INCENTIVE via @wav3s
LIMIT OF 10
FOLLOWS ONLY
- Get To Me
#LMCC
- Are you a DevOps Engineer?
We are looking for a DevSecOps champion that helps other engineers to move fast without breaking things.
Join the team of streamooors!
More details here 👇
https://apply.workable.com/superfluid/j/F0459D8E4A/
- Last CALL! If you LOVE DeFi as I do join our free course from Distributed Lab University starting May 1:
https://distributed.education/defi-course
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Skills acquired:
1) Knowledge of key concepts and components in Decentralized Finance (DeFi).
2) Understanding of Stablecoins (USDT, USDC, DAI, FRAX) and their role in DeFi.
3) Knowledge of Decentralized Exchanges (Uniswap v2, Uniswap v3, Curve) and how they work.
4) Understanding of Decentralized Lending Protocols (AAVE, Compound).
5) Knowledge of Financial Derivatives (GMX, Kwenta) and their use in DeFi.
6) Knowledge of Zero Knowledge Proof Technology and its practical use cases in DeFi.
7) Understanding of Decentralized Identity (Polygon ID) and its importance in securing digital assets.
8) Knowledge of Liquid Staking (Lido, Rocket Pool, Frax) and its advantages in DeFi platforms.
- 🎉 Exciting news! Daolize is now part of the @gitcoin.lens Grants program! 🚀
Support our mission to revolutionize NFT communities & foster collaboration 🤝 Contribute to our grant & help us unlock the potential of NFTs
Visit https://explorer.gitcoin.co/#/round/1/0x9c3b81967eafba0a451e324417dd4f3f353b997b/0x9c3b81967eafba0a451e324417dd4f3f353b997b-12
#Daolize #GitcoinGrants
- Yo lenster, it's been a long time !
follow me to colect 0.1 matic !
- Promocionando web3 en Chile 🇨🇱