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💰Crypto Giants are Spicing Up the Old Savings Account
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🙌 Together with:
Kraken, consistently rated the best and most secure cryptocurrency exchange, which can get you from fiat to DeFi
Aave, an open-source and non-custodial liquidity protocol where users can earn interest on deposits and borrow assets.
Kyber DMM, an automated market maker which prioritizes permissionless liquidity contribution and high capital efficiency
TLDR Whopping interest rates on offer from crypto lending platforms have been a big story over the last several months. Now Coinbase and Compound, two giants in the space, are wading in with their own reinventions of an old banking staple — the savings account.
JUICY The question is, are customers ready for the torque and complexity of these new offerings? Each platform has its own plan for delivering juicy yields to clients in a near-zero interest rate world. Compound is going after institutions and Coinbase is targeting consumers.
RATES Yet both platforms are promising 4% rates — which are more than 50x the national average according to Bankrate.com’s June survey of savings accounts. And both face the same challenges: convincing customers their new products are stable and secure.
Today Crypto Scammers Operate Without Fear: Liti Capital Will Change That.
Liti Capital Recently Fulfilled Its Promise to Identify and Pursue Cases of Cryptocurrency Fraud After Cracking the Case of a Defrauded Influencer and Exposing the Thief
Liti Capital, a Swiss Litigation Finance company, recently just found and identified the perpetrator of a cryptocurrency scam days after their commitment to push back against fraud in the crypto community and help create a safe atmosphere for innovation and investment moving forward.
By tokenizing their equity, Liti Capital introduces litigation finance to the blockchain, providing retail investors with a new asset class and giving them the opportunity to fight back against crypto criminals.
About 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.
TLDR There’s nothing to be afraid of with stablecoins. That’s the main message Randal Quarles, the vice chair for supervision at the Federal Reserve and a member of its board, delivered on June 28, surprising a DeFi community that’s become inured to getting dissed by the financial establishment. Quarles believes private-sector stablecoins are a worthy alternative to central bank-issued digital currencies.
FEAR “Stablecoins are an important development that raises difficult questions,” Quarles said in a speech to a bankers’ association in Sun Valley, Idaho. “In my judgment, we do not need to fear stablecoins.”
FIAT Stating that he was sharing his own views, Quarles said it was a mistake to assume that central bank digital currencies, or CBDC, were the only way forward for development of digital fiat. That’s an innovation the Federal Reserve is currently exploring.
NEWS The second version of NFTX is designed to refine one of the core needs in the NFT market — liquidity. NFTX has long served as a liquidity hub for people who want to buy and sell the cheapest NFTs from any given collection (ie: the lowest-value Cryptopunks).
SO WHAT Now the V2 will simplify NFTX’s original, multi-layer NFT index fund model, instead focusing on simpler funds (which they now call vaults). This change is intended to solve liquidity and arbitrage issues arising from users combining multi-layer funds.
FEATURES Among the features: one vault per collection (ie: one single vault for all CryptoPunks instead of multiple vaults for Basic Punks, Zombie Punks, etc.). NFTX v2 will also emphasize yield-generation for liquidity providers, who can capture protocol fees by staking SushiSwap LP (SLP) tokens on NFTX.
Pendle is a futuristic DeFi protocol that allows you to realise the future interest of a yield-bearing token like aUSDC or cDAI by breaking it into two derivative tokens, a Yield Token and an Owner Token. This opens up fresh possibilities for owners to create liquidity, for traders to leverage yield opportunities without locking up principle and for arbitrageurs to get jiggy rebalancing the market inside Pendle's custom AMM engine.
This is a weekly tutorial on the most compelling opportunities in yield farming, written by our friend DeFi Dad, an advisor to The Defiant. The goal is to expose more Defiant readers to new DeFi applications and their associated liquidity mining programs.
BACKGROUND Imagine if you could deposit your money in a savings account but then instantly capture the yield from the future and then turn around and spend it however you choose. Alchemix has captured all of the DeFi community’s attention the last three months for its creative use of money legos to enable borrowers to lock up collateral in an automated yield-earning strategy, while simultaneously borrowing an advance on their yield in the form of synthetic assets.
OPPORTUNITY Today, we’ll focus on how to earn up to 30% APR in ALCX rewards as an LP in the Saddle Finance alETH pool. Additionally, I’ll show how to open an alETH Vault on Alchemix for whenever they raise the alETH debt ceiling, expected to happen any day now. Simply opening an alETH vault in the future will be ideal for those who wish to farm with 25% more ETH while the underlying ETH in the vault earns an estimated 0.33% APY in a Yearn v2 ETH vault.
RISK A bug was discovered two weeks ago in the Alchemix alETH vaults allowing vault owners to withdraw underlying ETH collateral without paying back alETH debt. Since then, the bug has been resolved and the code has been audited but do not assume Alchemix is “safe to use” because a tutorial has been written here. Read through the risks section carefully and as always, consider you can lose everything in a single DeFi application.
by Herbert Eng
SMOKING GUN $2B of market value lost in even less time than what would be considered an “overnight disaster” will be recognized as one of DeFi’s darkest days. Now, the community is still looking for answers with some sleuthing about to identify any culprits. And some members are claiming they found a smoking gun.
RE-ENTRANCY VECTOR One of our hacktivists is a software engineer who performs technical audits on the security of blockchains. He has uncovered additional details into how the crash happened. He identified a “giant re-entrancy vector” in all three masterchef contracts. You can see the proof here if you search for “emergency” in the live source code:
The Binance-owned crypto market data aggregator CoinMarketCap has launched a new token swap feature on its website. The feature initially supports the leading non-custodial crypto exchange Uniswap and the Ethereum blockchain, meaning CoinMarketCap users can swap Ethereum-based tokens via Uniswap. Some of the supported tokens include ether (ETH), Unsiwap (UNI), Tether (USDT), DAI, Aave, and more.
Opyn is launching the first-ever on-chain margining system for partially collateralized options. The upgrade allows options to be collateralized with less than their max loss (<1 asset for call, <strike for puts), increasing capital efficiency and providing leverage for DeFi options
Soon, 650 U.S. banks will be able to offer bitcoin purchases to an estimated 24 million total customers. As part of the deal between enterprise payments giant NCR and digital-asset management firm NYDIG, community banks, including North Carolina-based First Citizens Bank, and credit unions, including Bay Federal Credit Union in California, will be able to offer their clients cryptocurrency trading through mobile applications built by the payments provider.
C.R.E.A.M. remains driven in our goal to bring capital efficiency to long-tail assets on multiple blockchains. Our integration with Polygon means faster transactions, lower gas fees, and access to different markets for our users. Today, Polygon has a thriving DeFi ecosystem — with $8.64b TVL.
✊ 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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