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⛏ China Makes a Hash Out of Ethereum: Mining Squeeze Sends Hashrate to New Lows
Hello Defiers! Here’s what we are covering today…
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TLDR The value of SafeDollar (SDO), an algorithmic stablecoin intended to be pegged to $1, has dropped to zero after a $248K exploit on Polygon.
THE NEWS In a post-mortem analysis published on June 28, SafeDollar reported it had lost $202K of USDC and $46K of USDT as a result of an attack on one of its pools for the deflationary PlexCoin (PLX) token, which burns 0.15% every time a user deposits into the pool. By providing liquidity to the pool, users could farm SDO rewards which, like other stablecoins, were intended to be safer and less volatile than the majority of crypto tokens.
Private Equity For Everyone: wLITI Token Launches on Uniswap
Liti Capital SA is a Swiss fintech private equity company putting litigation finance in the hands of the retail investor using tokenized shares with the launch of the LITI and wLITI tokens.
Litigation finance is the practice in which an outside party invests in a lawsuit or arbitration in exchange for a portion of the profit. Liti Capital already owns a share of 3 cases valued at over $200 million, and is ready to open up to a wider market with the launch of the LITI & wLITI tokens.
“We wanted to find a way to get everyone involved,” said Jonas Rey, Co-Founder and Managing Director of Liti Capital, “but how the financial markets are structured all but prevents that. The blockchain finally gave us the answer we were looking for.”
The KYC-required LITI token represents a share in Liti Capital and gives access to voting rights and to dividend payment, it is not on any exchanges by design. The wrapped LITI (wLITI) is not KYC required and will be available for trading on Uniswap and soon other DEXes.
➡️ Learn More at www.liticapital.com!
TLDR Just 40 days after Ethereum’s hashrate hit an all-time high, the key metric has plunged 17% in the last 10 days, according to data from Glassnode, a blockchain and intelligence provider. That’s the worst drop in a 10-day span in Ethereum’s history.
SO WHAT The cause: China, probably. Ever since the Chinese government in May started warning miners about minting cryptocurrencies and cautioning the country’s financial giants to steer clear of Bitcoin and its ilk, Ethereum’s rate has dropped to 457 trillion hashes per second, the lowest level since March 28. Bitcoin’s hashrate has slid to half its all-time high on May 13, according to Glassnode.
TLDR The decentralized Ethereum exchange DeversiFi plans to launch a governance token called DVF.
PROCEEDS DVF will be distributed via an open and fair launch mechanism called DeversiFi Launch Market (DLM). The proceeds will be placed in a community-governed treasury. Tokenomics and further details on the DLM mechanism will be made available closer to launch.
ORDER BOOKS While DeversiFi’s settlements occur on the Ethereum blockchain, its order books are off-chain, allowing users to participate without paying high Ethereum network transaction fees.
TLDR Kain Warwick, founder of derivatives liquidity protocol Synthetix, is back. The founder had previously stepped away from the protocol to take on a “more passive role,” but has now declared his intention to run for the Spartan Council, an eight-member governance DAO that votes on and manages changes to the protocol. Warwick previously stewarded the core contributors, who do both development and non-development work like marketing and design.
Welcome to the first Global Digital Finance x The Defiant column, bringing you the stories and discussions that have caught our eye this month.
From market infrastructure to institutional investors to the digitalization of private markets, we’ll look at how decentralization is reshaping traditional finance.
By Global Digital Finance
ETPs showing that Digital assets are ‘here to stay’
Bitcoin-indexed products were launched on Euronext stock exchanges in Paris and Amsterdam at the beginning of June. Four investment firms, WisdomTree, VanEck, 21Shares, and ETC group, listed nine bitcoin and Ethereum ETPs.
Venture capital’s excitement over blockchain analytics has spilled over into decentralized finance (DeFi). Nansen, a DeFi-native crypto tracer, has raised $12 million in a Series A funding round led by Andreessen Horowitz (a16z). Also participating in the round was Skyfall Ventures, Coinbase Ventures, imToken Ventures, Mechanism Capital and QCP Capital.
A lot has changed since the original "Bull Case for Ethereum" episode. This sequel comes at a time when massive events loom on the horizon. EIP-1559, the Proof-of-Stake Merge, and Layer 2 Scaling.
🔗 A Scalable General-Purpose Data Availability Layer for Decentralized Apps and Trust-minimized Sidechains: Celestia
One of the highlights of this year’s Devcon 5 was optimistic rollups, a new scaling solution that uses the Ethereum base chain for data availability and enforcement of a two-way bridge of assets, with execution happening off-chain on layer two. In addition to allowing for increased throughput and decreased costs for general-purpose smart contracts, it is the first way to scale layer one sustainably, by avoiding state bloat.
🔗 BREAKING: Crypto exchange FTX has announced an endorsement deal with TomBrady & Gisele Bündchen: @JoePompliano
✊ Head to THEDEFIANT.IO for more DeFi news 📰
🧑💻 ✍️ Stories in this newsletter were written by Owen Fernau, Dan Kahan and yyctrader and edited by Edward Robinson, Bailey Reutzel and Camila Russo. Videos were produced by Robin Schmidt and Alp Gasimov. Podcast was led by Camila, edited by Alp.
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