DeFi

DeFi Developments to Watch in 2024 – DL News

Published

9 months ago

10 May, 2024

CoinFlix Staff

DeFi Developments to Watch in 2024 – DL News

What you will learn

2024 could be the dawn of KYC’d DeFi.
Modularity is DeFi’s shiny new toy.
How many times can an Ether be staked?

With each passing year, the world of decentralized finance – which truly began in 2020 – becomes more and more complex.

What started as a handful of simple Ethereum applications allowing users to trade or lend against tokens is now a sprawling metropolis of interconnected protocols, each scrambling to capture as much data as possible. $52 billion DeFi market as possible.

It’s hard to make sense of it all – even more so now that the DeFi ecosystem spans more than 200 different blockchains.

To help understand the latest trends in DeFi, DL News has identified key developments that are sure to make waves in 2024.

Uniswap Hooks allow developers to create custom features, like KYC

Back when Uniswap first revealed its new Hooks feature as part of Uniswap v4, onlookers immediately warned that it could be used to create liquidity pools with compliance requirements, such as customer knowledge checks.

Some DeFi puritans have said that Hooks are contrary to DeFi’s founding principles, namely its permissionless nature.

But others argue that permissioned Uniswap pools could benefit DeFi by removing the very real fear among institutions to inadvertently interact with entities sanctioned by the U.S. Office of Foreign Assets Control via DeFi protocols.

As Uniswap is the most advanced in providing optional KYC functionality through Hooks, such development is expected to strengthen the moat and competitiveness of the protocol, VanEck said.

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If permissioned DeFi starts to gain traction with traditional financial players, Uniswap Hooks will likely be where it starts.

EigenLayer will make Ethereum more modular

In recent years, Ethereum has grown beyond the confines of the Ethereum mainnet and now also encompasses more than a dozen so-called layer 2 blockchains.

While these layer 2 chains offer significantly lower fees and faster transactions, they also introduce a significant problem: a fracture in Ethereum’s trust network, as transaction validation takes place outside of the Ethereum mainnet.

Validation involves checking whether transactions comply with the blockchain rule.

While Layer 2s ultimately send all transactions occurring there back to the Ethereum mainnet for finalization, they require an external validating network to do so. The finality is when validated transactions are made irreversible on the blockchain.

Currently, the companies that build Layer 2 manage this validation themselves centrally. But most, if not all, expressed a desire to decentralize their validation as much as possible.

It’s there that high-profile protocols like EigenLayer Come in.

EigenLayer will allow blockchains built on Ethereum, as well as other protocols such as decentralized Oracle Networks, to tap into mainnet validation for their various validation needs.

The desired outcome is a more efficient and aligned validation system that covers not only the Ethereum mainchain, but also everything dependent on it for transaction validation.

If EigenLayer succeeds, Ethereum should start to resemble modular blockchains like Cosmos, Celestia or Polkadot but with a much more decentralized validation network. Modular blockchains work by separating network functions into special layers instead of their monolithic counterparts like Bitcoin and Ethereum which attempt to manage all functions on a single layer.

EigenLayer has also taken things beyond validation. This also works on EigenDAa way to help Layer 2 scale by providing additional data availability.

It’s fair to say that the full launch of EigenLayer could be the spark that reignites interest in Ethereum and its many Layer 2 networks in 2024.

For investors, EigenLayer offers an enticing prospect by allowing them to reinvest their staked Ether, thereby providing even higher returns. But the recovery has also caused some anxiety within the Ethereum community.

Ethereum co-founder Vitalik Buterin warned that the takeover, if poorly constructed, could threaten the stability of the network.

Echoing Buterin, JPMorgan analysts are also wary of the fact that this restocking can lead to a “cascade of liquidations if the value of an asset involved falls sharply”.

Sreeram Kannan, founder of EigenLayer said DL News in May, he understands the fear and the project moves forward cautiously.

Big names ready to launch on Celestia

EigenLayer is not the only project offering the magic combination of modularity and data availability.

Celestia does the same, but instead of operating through a set of smart contracts on Ethereum, it uses a specially designed blockchain.

Rather than having to create a validation network themselves, blockchains can build on or migrate to Celestia to benefit from the validation and availability of data provided by the project’s main blockchain.

So far, only a handful of blockchains – or settlement layers – have been deployed on Celestia. But some big names are expected to deploy in 2024.

Berachain, who raised $42 million in its April Series A round, is probably the best known among DeFi natives. But lesser-known projects, like Neutrino and Layer N, should not be overlooked.

A number of existing infrastructure projects such as the Axelar cross-chain bridge, Optimism’s OP Stack, and the Cosmos SDK framework have also chosen to integrate with Celestia.

With such potential, Celestia’s growing ecosystem will likely be one of the biggest stories of the coming year.

Tim Craig is DL News’ DeFi correspondent based in Edinburgh. Contact us with advice at tim@dlnews.com.

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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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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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