DeFi

Superposition Finance Redefines DeFi with Its Risk Management Models

Published

7 months ago

2 July, 2024

Superposition Finance Redefines DeFi with Its Risk Management Models

In this episode of CryptoCurrents, Leonard Kim returns as host to speak with Alex HoffmanEcosystem Manager at Overlay Financinga company setting a new standard in decentralized finance (DeFi) by focusing on innovative risk assessment models.

Having started his career in entrepreneurial ventures across a variety of industries, including furniture and healthcare, Hoffman has leveraged his diverse background to uniquely position himself in the crypto finance space. His journey, from active participation in Solana hackathons to leading roles in projects like Nirvana, ultimately led him to his current role at Superposition Finance, where he aims to fill critical gaps in DeFi Risk management.

But how does Superposition Finance stand out from conventional DeFi platforms? By deploying advanced risk models originally developed for traditional finance (TradFi) in the volatile world of cryptocurrencies.

Superposition Finance’s approach brings institutional-level risk assessment to DeFi, improving capital efficiency and investor safety. And unlike traditional models that offer static, raw collateral valuations, Superposition uses a dynamic value-at-risk model that provides a holistic assessment of a user’s portfolio, considering both assets and liabilities.

With its model, Superposition creates more nuanced risk assessments that account for the unique behaviors of different cryptocurrencies and their interrelationships. It adapts in real-time to market conditions, reducing unnecessary liquidations and improving the overall stability of the financial ecosystem on the platform.

For example, during market declines, Overlay’s model adjusts the valuation of collateral like APT (Aptos tokens) in a way that minimizes unnecessary liquidations, maintaining higher capital efficiency than other platforms.

The core of Superposition Finance’s innovation lies in its oracle, a “super oracle” designed to collect and synthesize a vast array of data far beyond the capabilities of existing oracles. This system integrates price data with market depth and other critical financial indicators to support its sophisticated risk models.

“To do a risk model properly, you need 180 days,” Hoffman says, noting that the ups and downs come when “an event has triggered a crazy surge.” He continues, “But that doesn’t mean everyone has to be liquidated, which is usually the case.”

Data depth is crucial to understanding market behaviors and ensuring that the platform’s financial operations reflect accurate and fair market conditions, especially during volatile periods.

Additionally, Superposition’s approach includes a cutting-edge approach to collateral management across blockchains, emphasizing the importance of keeping assets in their native environment while leveraging them across the ecosystem. This unique method not only improves security, but also maximizes capital efficiency by allowing users to borrow against correlated assets without transferring them across chains.

As DeFi continues to evolve, Superposition Finance is actively expanding its offerings to include new features like the “multiplication feature,” which allows for significant leverage opportunities within the ecosystem. They are also developing something built on what was originally called Concordia, which is the risk layer.

“And I can’t talk too much about it either, but we’re going to leverage what Concordia is doing, which should allow us to be well beyond what’s happening in DeFi right now,” Hoffman noted.

In essence, Superposition Finance is not just another DeFi platform, but a pioneer in integrating sophisticated risk management models derived from TradFi with the innovative potential of decentralized finance. This integration promises to make DeFi more accessible and secure for both seasoned investors and newcomers, paving the way for more widespread adoption of crypto-financial technologies.

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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