Here’s why DeFi is hitting all-time highs

April 2019 was the last time DeFi’s ‘value locked in Ethereum’ hit all-time highs. This month, the space has blown past the previous 2.3 million Eth record by an extra 300,000.

Still, ‘value locked in USD’ is about $20 million lower than the previous high in June 2019, when Ethereum’s USD value was almost double what it is today.

What’s been happening in DeFi?

Value locked in DeFi has been steadily increasing since 2017. Looking at the chart alone can spark interest because of how DeFi’s appeal seems to transcend the volatility we’re used to seeing in crypto assets. On DeFi Pulse, the value locked in Ethereum chart looks more like Apple stock than Bitcoin or Ethereum’s price charts.

That being said, it’s not too surprising that the DeFi space is continuously being utilized. Out of millions of use-cases crypto entrepreneurs come up with, DeFi projects produce tangible results. Right now, one can easily lock DAI into a lending protocol, receive 5% APR and pull it out whenever they want to.

On top of that, decentralized exchanges are getting more and more features, such as margin, stop losses and limit orders. Some DEXs are one stop shops for lending, borrowing and margin trading. Liquidity is still lacking which is bound to keep big players at a distance, but the space is clearly improving little by little.

Okay, but why is DeFi hitting all-time highs right now? 

MakerDAO’s DAI stablecoin is the token that makes DeFi go round. Instead of being backed by dollars, it uses algorithms and a system of incentives to keep the price pegged around $1.

Originally, DAI was only able to be backed by Ethereum, but on November 18th, Maker released an iteration that could be backed by any ERC-20 token.

The release was exciting and all, but what it really did was get Eth moving around in the Ethereum ecosystem. Maker is forcing all SAI holders (people who still use the Ethereum only DAI) to manually convert their holdings to the new version. With this, others created protocols to make the process easier.

Excitement over the most popular protocol making a new iteration of their product creates press for DeFi, encouraging new Eth to be locked, forces people to move Eth around, requires protocols interacting with DAI to introduce new features and increases potential for casual DeFi observers to see how the space has been changing and potentially test out new features.

There’s one exchange called Synthetix that has shown remarkable growth without huge releases. More recent growth in Synthetix seems to spike around the same time as the DAI release, but it doesn’t use DAI at all.

Eth locked in DeFi by the numbers

The largest Eth-locker in DeFi, SAI hit an all-time high of 100 million tokens outstanding and has dropped to 86 million since the new version of DAI has released. The new DAI is at 18 million tokens outstanding, 14 million of which were converted from the old version. This means that within a few weeks, 4 million DAI tokens were created.

According to DeFi pulse, when DAI was released on November 18th, 2.47 million Eth was locked in DeFi. Currently there are 2.62 million Eth locked. 4 million dai would only be equivalent to about 26,000 Eth, which only accounts for a minority of the growth.

Another protocol that has been rapidly locking Eth is InstaDApp, which since the release of DAI has locked 60,000 Eth. Their growth undoubtedly has to do with DAI because they recently released a “partial debt migration” system which DeFi pulse noted, was a hit.

The other 200,000 Eth mostly comes from growth on the Synthetix derivative platform. This platform has been growing slowly and steadily, but experienced a spike around the time DAI was released. On their platform, users can long or short any crypto, commodity, stocks and stake their Synthetix token for rewards.

Binance CEO says that they will be suing The Block after reports of police raids in Shanghai

Binance CEO, Changpeng Zhao just tweeted in response to a follower confirming that they will sue The Block for printing accusations that they consider to be false.

“Instead of apologizing to the community for the fake headline news of the non-existent “police raid”, which damaged our reputation, and $btc price, theBlock now tries to argue if there was an office, if CZ had a meeting… who cares? Own up & apologize for your mistake.” – Changpeng Zhao

Binance and The Block have been at odds all day after The Block posted a story about a Binance office in Shanghai being shut down after police raids. Zhao denied the existence of the office and said that police raids never happened.

After the denial, The Block clarified in their original article that police raids were reported from sources, and others said that it never happened. They doubled down on the existence of an office by posting pictures and locations of Binance offices in Shanghai.

Zhao, along with Justin Sun pledged 100 BTC to fight “FUD” which can be interpreted as fake news. In reality, FUD is press that instigates fear, uncertainty and doubt particularly in a market. Zhao blamed The Block for drops in the price of BTC.

CEO of The Block, Mike Dudas responded to the threat of starting a fund against journalists.

Two of the wealthiest men in cryptocurrency plan to raise a “FUD fighting fund” worth more than $1 million, presumably to wield as an implicit threat against journalists who report facts that run contrary to their business interests” – Mike Dudas

Zhao did not specify what legal approach Binance will take when suing The Block.

Binance CEO pledges $1 million to fight “FUD” news

This week, Binance was accused of shutting down their Shanghai office after a police raid. Changbeng Zhao, CEO of Binance has been adamant about the reports being rumors, and now he has doubled down by joining a fund to fight “FUD.” It started with a tweet from Zhao suggested when raising funds for a crypto project, to put aside funds to fight “FUD,” to which Justin Sun responded that he would donate 100 BTC to the cause.

CEO of the Block, Mike Dudas responded to the thread, saying,

“Two of the wealthiest men in cryptocurrency plan to raise a “FUD fighting fund” worth more than $1 million, presumably to wield as an implicit threat against journalists who report facts that run contrary to their business interests.”

Zhao’s usage of the term FUD refers to news that triggers fear, uncertainty and doubt. In the crypto space, saying FUD can be interchangeable with the term “fake news” which can either be derogatory and dismissive towards a journalist’s work, or genuinely imply that their analysis is false.

Starting a fund to combat journalism is controversial because it is unclear where that money would go. Two obvious methods of combatting the press are to either bribe them not to print a piece, bribe other media outlets to print contradicting pieces, or to bribe contradicting sources to make statements.

The Block originally reported the story about police raids , and has since noted that new sources have come out saying that raids never happened. Still, Zhao persists that there is no, and has never been a Shanghai office even though The Block claims to have seen photos of it.

“No police, no raid, no office. Hope you didn’t pay to read that FUD block.” – Changpeng Zhao

Binance FUD fund UPDATE:

Zhao announced on Twitter that they will sue The Block. This is likely what he was referring to needing the FUD funds for.

Top crypto and blockchain events in December 2019

December is a comparatively slow time for events since westerners are celebrating holidays, but there are still some important happenings in the crypto space. From exchanges opening, exchanges closing and crypto charity during the most giving time of the year, here are some things to keep an eye on.

Waves crypto exchange releases – Dec. 1

Waves is a decentralized exchange that has had large success and controversial failure. During it’s beta testing, the exchange had 6 million in volume per day, which is huge in terms of a DEX. Unfotunately, on the day of release, hackers took over the exchange and website.

“Waves Exchange will provide users with the advantages of decentralized storage, such as absolute security of funds and irreversibility of transactions, while customers will still receive the best user experience they can find in the centralized exchange sector.”

CoinExchange.io shutdown – Dec. 1

Anyone who holds funds on CoinExchange.io will need to withdraw them by December 1st. CoinExchange.io is a crypto to crypto exchange that has been around since 2016. The company says they are shutting down purely for financial reasons.

“This is purely a business decision and there has not been a security breach or any other type of incident. Unfortunately it is no longer economically viable for us to continue offering market services. The costs of providing the required level of security and support now outweigh our earnings.”

#BitcoinTuesday, donate cryptocurrencies – Dec. 3

Donate crypto eventInspired by Giving Tuesday, #BitcoinTuesday capitalizes on charitable spirit by offering an easy way for crypto hodlrs to donate to nonprofits. The Giving Block works with Gemini in order to accept coins like Bitcoin, Bitcoin Cash, Ethereum, Litecoin, and Zcash. Their platform makes it easy for nonprofits to auto-sell the donated crypto in order to avoid losing parts of the donation to taxes, and deter the threat of volatility. The event will take place Tuesday, December 3rd.

“This is a big deal because nonprofits are empowered to access a whole new community of donors with strong f
inancial incentives to donate crypto” – Forbes

Ethereum’s Istanbul Mainnet Hard Fork – Dec. 7

Ethereum’s next upgrade, Istanbul will be pushed to Mainnet on December 7th. The most exciting Ethereum Improvement Proposals that made it to the final version have to do with making zk-SNARKs and zk-STARKs cheaper and more scalable. Node operators are recommended to upgrade by December 1st.

“If you are using an Ethereum client that is not updated to the latest version (listed above), your client will sync to the pre-fork blockchain once the upgrade occurs. You will be stuck on an incompatible chain following the old rules and you will be unable to send ether or operate on the post-upgrade Ethereum network”

LaBitConf 2019 – Dec. 12-13

The Latin American Bitcoin & Blockchain Conference has been ongoing this since 2013. This year, they are taking the show to Uruguay. It is one of the most anticipated crypto events that has live Spanish and English translations. As a nonprofit, they promise not to have commercial oriented speakers, but still are hosts to big names like Andreas Antonopoulos, Adam Back and Max Keiser.

“It is also the only one to invest heavily in showing the culture of the host country to its foreign visitors, offering vivid experiences that enhance human relations between them and the leaders of the region’s projects in order to open us to greater doors in the world.”

ELEV8 Blockchain & Tech Conference in Las Vegas – Dec. 8-11

ELEV8 crypto eventELEV8 is a relatively new conference that focuses on blockchain, AI, cryptocurrencies and digital assets. The event brings many speakers who haven’t been part of the core crypto movement, but have brought blockchain tech into huge corporations. Guests include executives from IBM, State Street, Celsius and Ticketmaster.

“Our mission is to enable that progress with industry research, distribution of the most current news and by hosting industry events that convene executives at the forefront of shaping the future of emerging technology.”

 

 

When is the Poloniex withdrawal deadline?

Circle announced last month that it would be spinning out Poloniex and forming a new independent firm called Polo Digital Assets. With this major change, Circle and Poloniex highlighted some of its biggest challenges, which resulted in shutting down Poloniex US “in order to be competitive in the global market.” So when is the Poloniex withdrawal deadline and what do you do if you have cryptocurrency still sitting in your account?

Read moreWhen is the Poloniex withdrawal deadline?