DeFi
Ethereum’s Dencun Upgrade Will Make DeFi Much Cheaper to Use – DL News
A version of this story appeared in our Decentralized newsletter of March 12. Register here.
general manager, Tim here.
Here’s what caught my eye about DeFi recently:
- Lower Ethereum transaction fees are almost here.
- MakerDAO increases borrowing rates to over 15%.
- Jito takes action to stop the Solana MEV robots.
Dencun to Reduce Ethereum Layer 2 Fees
Transactions on Ethereum are about to get a lot cheaper thanks to a new upgrade going live this week.
Cancun-Deneb, or “Dencun” for short, contains nine different EIPs, or Ethereum Improvement Proposals.
Among them, EIP-4844 is the most anticipated. It promises to significantly reduce interaction costs on layer 2 blockchains like Arbitrum and Optimism.
Layer 2 charges will be decrease by a factor of 10 after the upgrade. This means that trading tokens on decentralized exchanges, which currently costs $1-2, is expected to drop to around 20 cents, and could even go down to a single cent on some layer 2 networks like Base.
EIP-4844 will not, however, reduce transaction costs on the Ethereum mainnet.
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By reducing transaction fees, Dencun can also unlock new use cases, such as blockchain gaming, generative art, and artificial intelligence, which were previously impractical due to high transaction costs.
EIP-4844 Ushers In Ethereum “Surge” Phase, As Ethereum Co-Founder Vitalik Buterin specified in its network roadmap updated in December.
The final goal of this phase is to reach 100,000 transactions per second.
After Dencun, Ethereum developers may start considering other improvements, such as allowing users run Ethereum nodes on mobile phones.
MakerDAO is almost out of USDC
Crypto cooperative MakerDAO is making urgent changes to its borrowing rates after the Protocol Stability Mechanism, or PSM, is almost here. I’m short of funds last week.
PSM allows holders of MakerDAO’s DAI stablecoin to exchange it for $1 of other stablecoins, including Circle’s USDC. The main function of the PSM is to help keep the DAI pegged to the dollar.
Because Maker offered low borrowing rates relative to the market, DeFi users locked up assets like Ether and Wrapped Bitcoin to borrow DAI. But because Maker locked the DAI yield at 5%, borrowers swapped it for USDC via PSM, which they were able to use to earn much higher yields in other protocols.
In response, MakerDAO pushed through a proposal to increase lending and borrowing rates for DAI to bring them in line with the broader market.
In ~2 hours, @MakerDAO will implement unprecedented rate movements. There has been some confusion about the cause, reasoning behind and likely effects of these changes. Let’s review them (in this order) 1/n pic.twitter.com/FdNvbNCJ4P
-PaperImperium (@ImperiumPaper) March 10, 2024
According to PaperImperium, a MakerDAO community member and governance liaison for GFX Labs, the higher rates will encourage borrowers to repay their loans, preferably by swapping USDC for DAI for repayment.
Higher yields on DAI should also encourage DeFi users to move funds to DAI, hoping to use PSM.
Jito suspends Mempool after MEV bots scam memecoin traders
Jito Labs, a company that creates Solana Staking and MEV software, has just suspended its mempool, a waiting room for transactions before they are added to a blockchain.
Jito Labs has decided to suspend the mempool offered via the Jito Block Engine due to negative externalities impacting users on Solana.
The decision was made after deliberate conversations with the Jito Labs team and key stakeholders in the Solana ecosystem.
– Jito Labs (@jito_labs) March 8, 2024
Jito Labs said in an article that it made the decision due to “negative externalities” affecting Solana users.
This move makes it more difficult for those using MEV bots to hit unsuspecting traders with sandwich attacks — trade before and after a trade to extract value from price movements.
Sandwich attacks cost traders millions every year. They cause traders to get worse prices on their trades than they otherwise would. The effect of sandwich attacks is much greater on assets with low liquidity, such as memecoins.
Memecoin trading volume on Solana flew last week, reaching $2 billion in 24 hours.
Data of the week
Blockchain data platform Metrika has created a dashboard to track Ethereum’s Dencun upgrade.
It allows users to monitor the upgrade as validators move to the new version of the network. It also provides an estimate of how long it will take for the upgrade to take place.
This week in DeFi governance
VOTE: Aave to add GMX’s gmETH to its Arbitrum liquidity pool
VOTE: Jupiter DAO concludes voting on LFG launchpad candidates
VOTE: Arbitrum votes on new $4 million grant program
Article of the week
Ethereum co-founder Vitalik Buterin slaps user X who complains about high transaction fees.
What we watch
The USDC market on Compound v3 is 99.82% utilized and has only $5 million in liquidity and offers 30% APR
Will we see failed withdrawals soon? pic.twitter.com/jUTF8uxYRA
– Mustafa Al-Bassam (@musalbas) March 11, 2024
Demand for US dollar leverage in DeFi is increasing.
$478 million loan protocol for compound USDC pool is over 99% utilized, meaning borrowers have taken out USDC loans close to the total amount available.
Do you have a tip on DeFi? Contact us at tim@dlnews.com.
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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