DeFi

Dakota Plans to Provide Banking-Like Services on DeFi to Crypto Depositors

Published

6 months ago

24 July, 2024

Dakota Plans to Provide Banking-Like Services on DeFi to Crypto Depositors

Dakota, which describes itself as a crypto bank trying to right the wrongs of centralized lenders like Celsius and BlockFi, came out of hiding on Wednesday.

The company, founded by a group of former Airbnb, Anchorage and Coinbase Custody executives, offers treasury management, lending and payment services to businesses that pay a monthly fee and gain access to a platform that allows them to lend their deposited crypto to a selection of Decentralized Finance Protocols (DeFi).

The model differs from previous centralized crypto lenders like Celsius Network, which filed for bankruptcy in July 2022, and BlockFi, which did the same four months later, CEO Ryan Bozarth said. In those cases, companies were at the center of the process: They took deposits, lent them out, and took a fee on the interest payments.

At Dakota, customers make the loan decision and choose Decentralized Finance (DeFi) they want to use. Monthly fees range from $150 to $1,500, and customers who choose to lend their deposits can earn yields of up to 9%. Stablecoin holders will receive a yield based on U.S. Treasuries.

“The biggest difference for us is that we only lend through DeFi protocols, so there’s no centralized lending,” Bozarth, who was previously CEO of Coinbase Custody, said in an interview. “There are some risks with DeFi protocols, but at least it’s a transparent risk, it’s a smart contract risk.”

While Dakota seems like an innovative idea that solves a problem, the crypto industry is still suffering from the scars caused by the collapse of companies like Celsius, BlockFi, and FTX.

Celsius filed for bankruptcy in July 2022, when it had $12 billion in assets under management two months earlier. The company’s predicament was caused by setting an overly ambitious yield of 17%, which led the company to use newer, riskier blockchains like Terra. The eventual bankruptcy, like BlockFi’s, left hundreds of thousands of creditors in the dark about whether their deposited funds would ever be returned.

With DeFi, there is a greater degree of transparency, Bozarth said, pointing to DeFi lending protocol Aave.

“If you look at the last crisis, [Aave] “They worked perfectly because everyone knew there was nothing to trade with, you would be liquidated if you hit that marker, and so they worked phenomenally well, whereas centralized lenders did not.”

Dakota also offers services for transfers, deposits and withdrawals in dollars on the fiat currency market. These services are designed for cash management purposes, with all dollars deposited on the platform being backed by US Treasuries.

One of the biggest hurdles for U.S.-based cryptocurrency companies is creating a product that can comply with varying levels of regulation across jurisdictions. Last year, Coinbase (COIN) had to deploy an offshore sector of its company due to restrictions in the United States

Dakota’s dollar services typically require money transmitter licenses (MTLs) in each state. The company will circumvent this requirement in the U.S. by using a third party with an MTL if necessary. In Europe, it plans to obtain a Virtual Asset Service Provider (VASP) license, and each region will have its own regulatory and compliance requirements, some of which Dakota will develop internally and third parties will use for the rest.

Fuente

DeFi

If You Missed BONK and PEPE This Year, This Viral New Crypto Might Be Your Salvation

Published

6 months ago

29 July, 2024

CoinFlix Staff

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.

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Fuente

DeFi

Cryptocurrency sector is experiencing ‘most misjudged moment’ since 2020, says venture capitalist Arthur Cheong

Published

6 months ago

29 July, 2024

CoinFlix Staff

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.

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