DeFi
analyzes of SolvBTC, Master Yield Market and MetaID
In this article, we discuss an analysis of the current limitations that DeFi on Bitcoin faces in order to grow significantly and compete with Ethereum and other established networks in the industry.
Despite the recent implementations of Ordinals, Runes and BRC-20 tokens, Bitcoin remains a decentralized environment that is not very fluid and not very efficient for users who intend to seek native yield.
Different protocols, including SolvBTC, Master Yield Market, and MetaID, aim to solve these problems with their own advanced analytics and approaches.
Let’s see everything in detail below.
Factors limiting the growth of DeFi on Bitcoin: the latest analyzes
According to reports of the analyzes of some experts in the field of cryptography, the development of DeFi on Bitcoin could be hampered by certain fundamental factors which makes the channel less attractive to users.
Last year, native implementations of Ordinals, Runesand BRC-20 have systematically changed the way Bitcoin is perceived by the world of decentralized finance, thanks to the introduction of features considered until recently technically impossible.
Regardless, this is still not enough to achieve the same popularity and on-chain metrics as other networks more experienced in DeFi like EthereumArbitrum, Solana, etc.
From the analyzes of Ryan Chow, founder of SolvBTC, it appears that the biggest current limitation is represented by the absence of an effective native return that can justify the transition from a non-custodial portfolio or CeFi to DeFi protocols.
Indeed, users prefer to give up a lower return and avoid the risks of piracy and exploits, or rather they still prefer to benefit from lower returns but on more user-friendly platforms like centralized platforms.
The result is that Much of Bitcoin’s supply remains unusedsetting aside essential economic resources so that a thriving ecosystem can be created.
Below is Chow’s comment on this topic in a recent interview:
“Currently, there are two key factors limiting the development of BTCFi: lack of core yield and liquidity fragmentation. These factors have led to a significant amount of inactive Bitcoin, unable to actively participate in the ecosystem. »
Source: https://dune.com/cryptokoryo/runes
The reduction of cryptographic activities on Runes, Ordinals and BRC-20 with low usage of the currency used in the Bitcoin Defi is highlighted by the recent reduction in active wallets in the network.
From September 2023, smart investors preferred to buy satoshi before the price rise at the start of the year, then wait for better times to move their reserve again.
The lack of secure decentralized places to obtain a return on one’s BTC positions and the excessive price liquidity fragmentationled to a situation where the active portfolio metric reached its lowest value since 2015 with just over 5 million active entities per month.
Source: https://dune.com/21co/bitcoin-key-metrics
The approach of SolVBTC, Master Yield Market and MetaID: analysis based on yield efficiency and scalability
To resolve these issues plaguing the growth of DeFi on Bitcoin, some industry experts, as well as owners of innovative cryptographic protocols, are sharing their analyzes and the approaches considered to resolve them.
Ryan Chow, founder of the SolvBTC platform, explains how under his protocol depositors can obtain significant income by committing their stake by making liquid staking on the Ethereum blockchain.
In this way, the problem of liquidity fragmentation is solved by being able to rely on liquidity environments such as EVMin addition to offering a return commensurate with the risk taken.
➤ Why SolvBTC?
Fragmented liquidity poses a major obstacle to the growth of BTCFi.
And it is more important in the BTC ecosystem.
SolvBTC solves this problem by serving as a gateway to BTCFi on various chains. pic.twitter.com/SKMtLLp9pB
– Eli5DeFi (@eli5_defi) June 14, 2024
The recent partnership between SolvBTC and Ethena Vault has allowed the protocol to reach a 15% Net APY.
How this integration works is as follows: users deposit native BTC within SolvBTC which are used as collateral to take out stablecoins, which are then in turn used for minting. USDe of Ethena and capture the yield from interest rate arbitrage in futures markets.
Here is what emerges from Chow’s analyses:
“I would like to take SolvBTC Ethena Vault as an example to explain how Solv brings stable base yield and rich income opportunities to Bitcoin users. Both Solv and Ethena offer bonus token incentives for this vault, potentially increasing the overall yield even more.
SolvProtocol has seen significant growth since the start of the year, reaching a total TVL of 1.3 billion dollars from 292,000 users. The SolvBTC section alone captures $874 million.
Source: https://defillama.com/protocol/solvbtc#information
Another protocol that is helping DeFi over Bitcoin emerge is Main Yield Marketwhere users can purchase directly and Bitcoin sources generate resources from native blockchain DeFi protocols using Tether, Ethereum, and Wrapped Bitcoin (WBTC).
This approach simplifies the experience of finding yield within the chain, providing a simple, low-effort solution.
Meanwhile, other developers are focusing on increasing the underlying capacity of the Bitcoin blockchain to improve DeFi performance.
Developer Sunny Fung of MetaID believes that Bitcoin needs to improve in terms of scalability and network congestion.in view of potential future growth of the DeFi sector.
From his analysis, it appears that it is possible to mitigate the problem by grouping the individual transactions into one. layer-2 application to save time and effort.
“MetaID introduces the concepts of unified UTXO chain and unified Bitcoin address, which effectively solve the Bitcoin congestion problem and fully unlock the potential of homogeneous Tier 2 networks with Bitcoin. As long as it’s a Bitcoin sidechain, layer 2, or even a homogeneous BCH with Bitcoin, MetaID can theoretically support it seamlessly.
Fung claims that although Bitcoin was designed as a layer for simple money exchange, it could soon become the “best medium for Web3 applications” thanks to some key on-chain features such as high consensus, securityefficient on-chain data storage (satoshi registration) and decentralization.
We remind you that all of these approaches mentioned in the article involve operational risks which must not be excluded in the evaluations, particularly regarding exposure to Ethena’s USDe Vaults (use of algorithmic stablecoin) and the use of second layer networks that are less secure than the main Bitcoin network.
DeFi
If You Missed BONK and PEPE This Year, This Viral New Crypto Might Be Your Salvation
Bonk and Pepe appear set to net new investors 10x to 100x returns over the next 12 months. However, cryptocurrencies in the DeFi play-to-earn gaming sector could offer even greater returns. As August approaches, Rollblock is emerging as a standout DeFi play-to-earn gem with the potential to 100x-1000x gains in the fourth quarter and beyond.
The project features an innovative revenue sharing model and exceptional accessibility, attracting players and investors. Additionally, Rollblock’s extensive game library of over 150 titles and enhanced sports betting are further driving excitement for the platform. Cryptocurrency analysts are expecting a sudden surge in demand. 800% a push for Rollblock from the beginning of September.
Bonk remains strong despite market fluctuations
While most well-known cryptocurrencies struggled throughout July, Bonk remained strong. As one of the highest-grossing meme cryptocurrencies of 2024, Bonk rose over 24% in July, while most cryptocurrencies experienced negative fluctuations.
Investors looking to add a relatively safe memecoin to their portfolio should consider Bonk. While Bonk is unlikely to generate explosive gains of 250x to 1,000x from here on out, Bonk could still theoretically provide returns in the 20x to 100x range.
Pepe should see a big rise in the next bull run
Alongside Bonk, Pepe has yet to go through a bull run. This means that there are still substantial gains to be made from Pepe over the next 12 months.
Pepe is down 4% in 30 days, but that shouldn’t worry Pepe investors in 2024. Experts believe Pepe’s best days are still ahead, with crypto analysts predicting a 10x to 50x surge in the next election cycle around November.
In the long term, Pepe could surpass the 100x mark for today’s investors. However, Pepe is a memecoin, and one should exercise caution when investing in purely speculative assets that have no utility.
Rollblock’s Unprecedented Hype Potential Could Push It Past 100x Valuation in Q4
Rollblock is a GambleFi Play-to-Earn token that integrates centralized and decentralized gambling on a single platform. By allowing players to earn rewards through active participation and gameplay, the platform creates a compelling incentive structure that appeals to both casual and competitive players.
With its cutting-edge blockchain technology, Rollblock offers top-notch security that keeps bets and transactions on the platform secure. The platform’s lack of KYC mandates appeals to both users who value anonymity and security.
Rollblock’s revenue sharing model, which allocates up to 30% of casino revenue to RBLK token holders, is a major draw for investors. The model involves burning half of the repurchased tokens and distributing the other half to stakers, increasing the token’s value and encouraging long-term investment.
The platform is also constantly evolving thanks to user feedback which has enabled updates such as the upcoming sports betting feature within the platform’s casino. This addition will complement Rollblock’s extensive game library of over 150 titles, ranging from traditional poker to innovative blockchain-based games.
RBLK is expected to emerge as one of the leading DeFi tokens in 2024. With a price of $0.0172 with impressive growth potential and over 140 million tokens sold recently, Rollblock is on track to enter the top 100 cryptocurrencies by Q4, making today a lucrative time to buy RBLK tokens.
Discover the exciting opportunities of the Rollblock (RBLK) presale today!
Website: https://presale.rollblock.io/
Social networks: https://linktr.ee/rollblockcasino
No spam, no lies, only insights. You can unsubscribe at any time.
DeFi
Cryptocurrency sector is experiencing ‘most misjudged moment’ since 2020, says venture capitalist Arthur Cheong
Veteran cryptocurrency investor Arthur Cheong believes the digital asset sector offers long-term holders a golden opportunity.
Cheong, the founder of DeFiance Capital, tell His 171,700 followers on social media platform X indicate that he believes decentralized finance (DeFi) is hugely undervalued.
According to Cheong, DeFi projects are innovating at a rapid pace and leaving traditional financial (TradFi) companies in the dust.
“It’s been a long time since I’ve been this excited about the risk/reward and potential upside of DeFi. This is probably the most misjudged moment since the pre-DeFi summer of 2020, with extremely promising prospects.
I see opportunities not only in OG (original) DeFi, but also in some newer projects that are evolving rapidly and growing at a pace that fintech startups will do anything to match.
The veteran investor also believes that crypto is now here to stay following recent launch from the Ethereum spot market (ETH) exchange-traded funds (ETFs) last week.
“Overall, the floodgates are open and there is no turning back. TradFi asset managers will continue to launch new crypto products because, guess what: there is huge demand for them!”
I expect them to launch actively managed crypto ETFs [in the] coming years. ”
Earlier this month, Cheong laid that it might be a bad strategy for cryptocurrencies to seek mass adoption, believing that digital assets are designed to disrupt several key financial sectors.
“I think we should accept that cryptocurrencies may not be suited for mass adoption like Web2, but rather are optimized for some narrow but very high-impact use cases like stateless global money, cross-border payments, and decentralized finance.
Chasing mass adoption of normies may be chasing the wrong Grail from the start.
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Disclaimer: Opinions expressed on The Daily Hodl are not investment advice. Investors should do their own due diligence before making any high-risk investments in Bitcoin, cryptocurrencies or digital assets. Please be advised that your transfers and trades are at your own risk, and any losses you may incur are your responsibility. The Daily Hodl does not recommend the buying or selling of any cryptocurrencies or digital assets, nor is The Daily Hodl an investment advisor. Please note that The Daily Hodl participates in affiliate marketing.
Featured image: Shutterstock/ktsdesign
DeFi
Cryptocurrency sector is experiencing ‘most misjudged moment’ since 2020, says venture capitalist Arthur Cheong
Veteran cryptocurrency investor Arthur Cheong believes the digital asset sector offers long-term holders a golden opportunity.
Cheong, the founder of DeFiance Capital, tell His 171,700 followers on social media platform X indicate that he believes decentralized finance (DeFi) is hugely undervalued.
According to Cheong, DeFi projects are innovating at a rapid pace and leaving traditional financial (TradFi) companies in the dust.
“It’s been a long time since I’ve been this excited about the risk/reward and potential upside of DeFi. This is probably the most misjudged moment since the pre-DeFi summer of 2020, with extremely promising prospects.
I see opportunities not only in OG (original) DeFi, but also in some newer projects that are evolving rapidly and growing at a pace that fintech startups will do anything to match.
The veteran investor also believes that crypto is now here to stay following recent launch from the Ethereum spot market (ETH) exchange-traded funds (ETFs) last week.
“Overall, the floodgates are open and there is no turning back. TradFi asset managers will continue to launch new crypto products because, guess what: there is huge demand for them!”
I expect them to launch actively managed crypto ETFs [in the] coming years. ”
Earlier this month, Cheong laid that it might be a bad strategy for cryptocurrencies to seek mass adoption, believing that digital assets are designed to disrupt several key financial sectors.
“I think we should accept that cryptocurrencies may not be suited for mass adoption like Web2, but rather are optimized for some narrow but very high-impact use cases like stateless global money, cross-border payments, and decentralized finance.
Chasing mass adoption of normies may be chasing the wrong Grail from the start.
Don’t miss a thing – Subscribe to receive email alerts directly to your inbox
Check Price action
follow us on X, Facebook And Telegram
Surf The Daily Hodl Mix
 
Disclaimer: Opinions expressed on The Daily Hodl are not investment advice. Investors should do their own due diligence before making any high-risk investments in Bitcoin, cryptocurrencies or digital assets. Please be advised that your transfers and trades are at your own risk, and any losses you may incur are your responsibility. The Daily Hodl does not recommend the buying or selling of any cryptocurrencies or digital assets, nor is The Daily Hodl an investment advisor. Please note that The Daily Hodl participates in affiliate marketing.
Featured image: Shutterstock/ktsdesign
DeFi
If You Missed BONK and PEPE This Year, This Viral New Crypto Might Be Your Salvation
Bonk and Pepe appear set to net new investors 10x to 100x returns over the next 12 months. However, cryptocurrencies in the DeFi play-to-earn gaming sector could offer even greater returns. As August approaches, Rollblock is emerging as a standout DeFi play-to-earn gem with the potential to 100x-1000x gains in the fourth quarter and beyond.
The project features an innovative revenue sharing model and exceptional accessibility, attracting players and investors. Additionally, Rollblock’s extensive game library of over 150 titles and enhanced sports betting are further driving excitement for the platform. Cryptocurrency analysts are expecting a sudden surge in demand. 800% a push for Rollblock from the beginning of September.
Bonk remains strong despite market fluctuations
While most well-known cryptocurrencies struggled throughout July, Bonk remained strong. As one of the highest-grossing meme cryptocurrencies of 2024, Bonk rose over 24% in July, while most cryptocurrencies experienced negative fluctuations.
Investors looking to add a relatively safe memecoin to their portfolio should consider Bonk. While Bonk is unlikely to generate explosive gains of 250x to 1,000x from here on out, Bonk could still theoretically provide returns in the 20x to 100x range.
Pepe should see a big rise in the next bull run
Alongside Bonk, Pepe has yet to go through a bull run. This means that there are still substantial gains to be made from Pepe over the next 12 months.
Pepe is down 4% in 30 days, but that shouldn’t worry Pepe investors in 2024. Experts believe Pepe’s best days are still ahead, with crypto analysts predicting a 10x to 50x surge in the next election cycle around November.
In the long term, Pepe could surpass the 100x mark for today’s investors. However, Pepe is a memecoin, and one should exercise caution when investing in purely speculative assets that have no utility.
Rollblock’s Unprecedented Hype Potential Could Push It Past 100x Valuation in Q4
Rollblock is a GambleFi Play-to-Earn token that integrates centralized and decentralized gambling on a single platform. By allowing players to earn rewards through active participation and gameplay, the platform creates a compelling incentive structure that appeals to both casual and competitive players.
With its cutting-edge blockchain technology, Rollblock offers top-notch security that keeps bets and transactions on the platform secure. The platform’s lack of KYC mandates appeals to both users who value anonymity and security.
Rollblock’s revenue sharing model, which allocates up to 30% of casino revenue to RBLK token holders, is a major draw for investors. The model involves burning half of the repurchased tokens and distributing the other half to stakers, increasing the token’s value and encouraging long-term investment.
The platform is also constantly evolving thanks to user feedback which has enabled updates such as the upcoming sports betting feature within the platform’s casino. This addition will complement Rollblock’s extensive game library of over 150 titles, ranging from traditional poker to innovative blockchain-based games.
RBLK is expected to emerge as one of the leading DeFi tokens in 2024. With a price of $0.0172 with impressive growth potential and over 140 million tokens sold recently, Rollblock is on track to enter the top 100 cryptocurrencies by Q4, making today a lucrative time to buy RBLK tokens.
Discover the exciting opportunities of the Rollblock (RBLK) presale today!
Website: https://presale.rollblock.io/
Social networks: https://linktr.ee/rollblockcasino
No spam, no lies, only insights. You can unsubscribe at any time.
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