DeFi
Industry group releases Ethereum DeFi playbook – DL News
A version of this article appeared in our The decentralized July 23 newsletter. Sign up here.
DG, Alexis here.
Here’s what caught my attention in DeFi recently:
- Why EigenLayer is losing momentum.
- An Ethereum group is trying to get ahead of DeFi regulations.
- A Crack in the $125 Million Multichain Mystery
EigenLayer is cooling down
EigenLayer started the year strong.
The pioneering “resttaking” protocol launched in June 2023. But after people like Ethereum co-founder Vitalik Buterin warned it could destabilize Ethereum, EigenLayer capped its own growth from the start, limiting the amount crypto users could deposit.
Earlier this year, these caps were lifted.
In one month, EigenLayer has become the second-largest protocol on Ethereum. As of February 1, EigenLayer users have deposited just over $2 billion in cryptocurrencies.
As of March 1, that figure was just under $10 billion.
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Venture capitalists have stepped up. Andreessen Horowitz has invested $100 million. Affiliated “liquid resttaking” projects have also raised millions of dollars.
At the time, I wondered: How much of EigenLayer’s value came from users who truly believed the protocol was a “revolutionary evolution“and how much came from the “parachute farmers” who used it as their last cash cow?
We get our answer now.
The total value of EigenLayer’s cryptocurrencies peaked at $20 billion in June. It has since fallen to just under $16 billion.
That’s because airdrop farmers are leaving, according to one analyst. Now that re-staking airdrops are over, investors are looking for greener pastures.
But it’s not all bad.
“Resttaking will continue to be a massive market and a significant influence across the entire Ethereum network,” analyst Ian Unsworth of Kairos Research told me.
A DeFi manual?
While politicians and regulators pass laws that cover stablecoins, centralized exchanges and cryptocurrency-based exchange-traded funds, they have largely avoided DeFi.
But make no mistake: those regulations will come. And one project is trying to get ahead of the next regulatory wave.
The Enterprise Ethereum Alliance, an industry group, has released its DeFi Risk Assessment Guidelines, a detailed playbook detailing the risks of working with DeFi and how to assess, manage, account for, and mitigate them.
These guidelines will enable DeFi protocols to take a proactive approach to compliance, while helping regulators draft regulations that do not stifle innovation.
Regulators in the United Arab Emirates and the European Union are already using the EEA guidelines, according to Dyma Budorin, co-chair of the EEA DRAMA Working Group and CEO of blockchain security firm Hacken.
Budorin said the playbook will be useful for traditional financial institutions considering getting into DeFi.
“They don’t know what the risks are in DeFi, and that’s why they’re not getting into it,” he told us. “DeFi protocols that plan to cooperate with old money can use the DeFi risk assessment guidelines as a benchmark for best practices.”
Multichain Hack
When the Multichain crypto bridge shut down last summer, citing pressure from Chinese police and an apparent $125 million hack, Fantom Foundation CEO Michael Kong dismissed speculation that it was an inside job.
He’s not so sure anymore.
Kong, whose company lost money in the hack, tells me he can’t rule out that someone affiliated with Multichain stole the loot.
The Fantom Foundation has filed a similar accusation in a Singapore court.
“I had a little too much faith in what Multichain was telling us,” Kong said.
Fantom Foundation has confirmed that Multichain CEO Zhaojun He has been arrested and is awaiting indictment.
She was also able to confirm that other employees were arrested, although they were eventually released.
Although no information is conclusive, some facts have fueled suspicions that last summer’s event was not an ordinary computer hack.
First of all, the movement of stolen cryptocurrencies after the hack was very unusual.
Second, Multichain briefly reopened in November, allowing someone to make a complicated, lightning-fast arbitrage trade for $1 million.
“We believe this is a person (or individuals) from the former Multichain team,” Kong said.
A representative for Multichain could not be reached for comment. The company has not defended itself at any point in the Fantom case. trial in Singapore, which started in 2023.
And a person familiar with the inner workings of Multichain said DL News The company team had not planned any internal work.
“The truth will be known when the police make the case public,” said the person, who spoke on condition of anonymity out of fear for his family in China.
Data of the week
Keep an eye on political memecoins, which have been fluctuating wildly amid political chaos in the United States.
On Sunday, President Joe Biden withdrew from the race and endorsed Vice President Kamala Harris.
Doland Tremp, a memecoin based on Republican candidate Donald Trump, climbed 30% to around 55 cents.
Jeo Boden, a play on the president’s name, fell 59% to about a cent.
A token called Kamala Horris (chart below) has soared 131%.
This Week in DeFi Governance
VOTE: Arbitrum seeks members for Gaming Catalyst Program Board
VOTE: Arbitrum Wants to Oust DeFi Aggregator for ‘Misuse’ of Grant Money
VOTE: Aave Considers Adding Ethena’s USDe as Collateral
Article of the week
Happy birthday to a very special digital asset.
ETH celebrates its 10th anniversary today!
The Ether ICO started on July 22, 2014. At the time, ETH was sold on Bitcoin at a rate of 2,000 ETH for 1 BTC, completely permissionless, no VC, no vested rights.
Today, 1 BTC buys less than 20 ETH. Few assets have outperformed BTC over 10 years; even fewer have…
– Justin Ðrake 🦇🔊 (@drakefjustin) July 22, 2024
What we are looking at
This is an interesting innovation in the KYC space. If you pass Binance’s due diligence process, you can create a token that proves this fact and then export your KYC proof to various DeFi tools, including mixers, which proactively weed out bad actors.https://t.co/qLYgh68Vhb
Thoughts? pic.twitter.com/89p73dCadw
– Jean-Paul Koning (@jp_koning) July 19, 2024
Several proposals have been made to find common ground between crypto and government.
One of the most commonly discussed ideas would be to use zero-knowledge technology to vet customers and create a sort of digital passport that they could use across DeFi protocols. Binance, the world’s largest cryptocurrency exchange, just launched its own crypto passport, which it calls the “Binance Account Bound Token.”
But will this really satisfy legislators and regulators?
Got any DeFi tips? Contact us at aleks@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
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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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