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😩 Most Top Crypto Exchanges’ Mistaken Deposit Policies are Either Unclear or Missing
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TLDR Binance customers make erroneous deposits about 800 times a day, according to a spokesperson for the company. Mistaken deposits occur when a user indicates they are going to send one kind of token to an address but sends another.
IRRECOVERABLE Some are completely irrecoverable. Other times it might be recoverable, such as when a user indicates they are going to send one ERC-20 token and actually send another (even that isn’t always recoverable, apparently).
RARE GLIMPSE The finality of blockchains is by design. It’s a feature, not a bug, but internet users are accustomed to everything being reversible and fixable by customer service on the traditional web. This data point from Binance is a rare glimpse at just how often regular crypto users are making expensive mistakes.
ERRONEOUS The Defiant reached out to seven top exchanges to ask how they handle erroneous transactions. This question was prompted by a customer who was charged several hundred thousand dollars more for a recovery than expected, according to REKT News.
SURGING Bitcoin in decentralized finance has been surging since speculation strengthened that the U.S. Securities and Exchange Commission would finally approve an exchange-traded fund to invest in the world’s largest cryptocurrency.
TWEET BTC deposited into Ethereum’s DeFi ecosystem as shown on DeFi Pulse’s “Bitcoin at Work” page, jumped 2% to 284,331 BTC since Oct. 14, when one of the SEC’s lesser Twitter accounts sent out an inscrutable tweet. It said: “Before investing in a fund that holds Bitcoin futures contracts, make sure you carefully weigh the potential risks and benefits.” At over $57,000 at the time, that’s $308M in Bitcoin.
YIELD It seems like many investors expected the news of a Bitcoin ETF to drive its price higher and wanted to take advantage of that appreciation and deploy it to gain yield. Their anticipation was justified. An exchange-traded fund based on Bitcoin futures, from ProShares, will be available on the New York Stock Exchange on Oct. 19.
TARGET For an industry that has decentralization in its very name, DeFi’s reliance on centralized stablecoins remains an Achilles’ heel, making it an easy target for overzealous regulators.
PARTNERSHIP On October 16, Terra and Abracadabra announced a partnership that aims to take on the incumbents by leveraging their UST and Magic Internet Money (MIM) stablecoins. Details of the partnership haven’t been announced yet but could potentially include MIM-UST liquidity pools and LUNA collateral, allowing users to borrow MIM against their LUNA tokens.
STABLECOINS “Decentralised Yields require a pair, $MIM and $UST are the power couple of Stablecoin Yields,” Abracadabra founder Daniele told The Defiant. Custodial stablecoins USDT, USDC and BUSD comprise 87% of the $133B in stablecoins currently in circulation, and the real number is even higher when we consider that DAI is partially collateralized by USDC.
In this research piece, Mason Marcabello lays out in lucid detail how Fantom is addressing web3 challenges with a new Proof-of-Stake mechanism called “Lachesis.” It’s a fascinating deep dive in an intriguing platform that’s picking up serious mojo.
OPTIMAL STATE While the ever expansive world of decentralized finance is improving on its traditional counterpart the web3 is not without its problems. For example, to maintain an optimal state of functionality, commonly used assets like Bitcoin need to compromise between one of three core components: scalability, security, or decentralization. This concept is known as the “blockchain trilemma.”
SPEED Coined by Vitalik Buterin, it advocates that decentralized technologies (at least in their present layer-one state) can’t equally balance all three of these aspects simultaneously. With Bitcoin, for example, we can see that while Proof of Work helps provide strong security and a purer embodiment of decentralization, the speed of its transactions are slower as a result.
LACHESIS Still, a nascent cluster of platforms like Fantom are solving this trilemma. Fantom achieves this with its high-speed Proof of Stake consensus mechanism called “Lachesis.” It doesn’t compromise on security or decentralization to scale. With its bespoke “leaderless” PoS protocol, Fantom also allows developers to fully customize blockchains and tailor specific qualities for digital assets according to their respective use cases.
🔗 Attorney General James Directs Unregistered Crypto Lending Platforms to Cease Operations In New York: NY Attorney General
New York Attorney General Letitia James today announced new efforts she is taking to protect New York investors, and the trading markets more generally, from exploitation by high-risk virtual currency schemes.
The world’s most popular decentralized exchange, Uniswap, is seeing layer two volumes surge as Ethereum transaction fees surge once again.
Liquidity is one of the primary goals of any developed financial market. The problem is essentially, “I want to make X trade as cheaply as possible, and I need someone on the other side.”
Facing a head-spinning array of new legislative and regulatory action out of Washington, D.C., the crypto industry is reacting the way any sector flush with cash would: It’s throwing money at the problem.
Most Read in The Defiant
Terra and Abracadabra Team Up to Challenge Centralized Stablecoins For an industry that has decentralization in its very name, DeFi’s reliance on centralized stablecoins remains an Achilles’ heel, making it an easy target for overzealous regulators.
DeFi 2.0 Wave of New Projects Test Liquidity Mining Alternatives Things aren’t getting easier for those struggling to stay current with the lightning quick DeFi space. Just when you think you’re up to speed with the latest token or protocol along comes something new. Brace yourselves because here comes DeFi 2.0. What that term actually means is still in flux.
XRP Holders to Get Huge Airdrop of New Blockchain Songbird Not only is DOGE a very good boy, its coin is about to be very smart, too — as in, smart contract-ready.
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🧑💻 ✍️ Stories in The Defiant are written by Brady Dale, Owen Fernau, Bailey Reutzel, DeFiDad and yyctrader, and edited by Edward Robinson, Bailey Reutzel, and Camila Russo. Videos are produced by Robin Schmidt, Alp Gasimov and Daniel Flynn. Podcast is led by Camila, edited by Alp.
The Defiant is a daily newsletter focusing on decentralized finance, a new financial system that’s being built on top of open blockchains. The space is evolving at breakneck speed and revolutionizing tech and money. Sign up to learn more and keep up on the latest, most interesting developments. Subscribers get full access, while free signups get only part of the content. Click here to pay with DAI (for $100/yr) or sub with fiat by clicking on the button above ($15/mo, $150/yr