DeFi

Tether seeks to compete with DeFi with upcoming synthetic asset platform

Published

7 months ago

18 June, 2024

Tether seeks to compete with DeFi with upcoming synthetic asset platform

Tether has launched a gold-backed USD stablecoin, demonstrating its upcoming “Tethered Asset” platform, Alloy.

Tether, the team behind the largest stablecoin by market capitalization, is launching a new platform offering a centralized alternative to major DeFi money market protocols.

June 17, Tether announcement the launch of aUSDT, a stablecoin pegged to the US dollar and backed by tokenized gold, specifically Tether Gold (XAUt). XAUt is a gold-pegged stablecoin representing ownership of physical gold held in Switzerland.

“[aUSDT] by Tether offers long-term holders the ability to maintain exposure to gold, while at the same time obtaining a dollar-referenced Tethered asset for payments and the everyday economy,” Alloy said in an article on X.

Tether described USDT as its first “tethered asset,” providing the utility of a fiat currency while deriving its value from a different asset.

aUSDT is also the first asset issued through Tether’s upcoming Alloy platform.

Is Tether looking to compete with DeFi?

Tether appears to be positioning its Alloy platform as a CeFi alternative to major money market protocols like Aave and Curve, both of which allow users to create native stablecoins (GHO And crvUSDrespectively) against over-collateralized positions of other crypto assets.

GHO and crvUSD positions are managed by smart contracts, with users able to post permissionless collateral, create stablecoins, and burn their stablecoins to redeem the underlying collateral. Users also risk liquidation if the value of their deposits risks being under-collateralized due to price movements.

Similarly, authorized Alloy users can create USDT by depositing XAUt positions on a smart contract. Users can also manage their positions and redeem USDT against underlying XAUt, and face liquidation if their collateral value falls below a specific overcollateralization ratio.

Open platform

Tether also announced the upcoming deployment of Alloy as an “open platform” allowing users to create over-collateralized Tethered assets backed by a wide range of digital assets, potentially including yield-generating products.

“Alloy by Tether is an open platform that allows [users] to create collateralized synthetic digital assets and will soon be part of the new digital asset tokenization platform, launching later this year, “ said Paolo ArdoinoCEO of Tether.

However, unlike DeFi protocols, Alloy requires users to undergo know-your-customer (KYC) verification to access the protocol.

Adam Cochran, VP of Operations at SBT Partners, believes Alloy could provide a first point of contact with DeFi for CeFi users.

“My best ‘guess’ about this setup is that they want Alloy to eventually be a consumer-facing DeFi/CeFi application…and then eventually have yield-bearing assets backing Alloy’s assets and makes an integration touchpoint to DeFi,” Cochrane said.

Cochran interrogates the effectiveness of the business model that underpins Alloy, with a focus on the storage costs and lack of returns associated with holding gold for users.

“On USDT, they generate income on the underlying bonds,” he said. “Gold is expensive to store and has no yield, so they don’t really make money by driving its growth.”

Nonetheless, Alloy charges a $150 fee to complete KYC verification. Tether also risks charging liquidation fees in the event users experience margin calls.

Attached USDT is the largest stablecoin with a market capitalization of $112.4 billion after surpassing $100 billion for the first time in March. Tether Gold is the eighth stablecoin with a market capitalization of nearly $571 million, according to CoinGecko.

Alloy is registered as a stablecoin issuer in El Salvador. aUSDT was developed in partnership with Tether subsidiaries Moon Gold and Moon Gold El Salvador.

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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