Just as money attracts more money, inflation also attracts more inflation. Unlike being
exposed to snowboarding or arachnids at an early age might allow you to know how to deliberate
the hostile terrain well. Unfortunately, when it comes to inflation this is not always the
case in a dynamic financial system that is effected by many forces. DeFi and CeFi are
two very separate paradigms that are ultimately attempting to provide more liquidity to the
economy. In today’s show we’ll investigate into any bridges between Defi and Cefi with
Portal Asset Management’s new Radiance Hedge Fund as well as incentivising liquidity pools
with sUSD, Lyra on Optimism.
Bitcoin has now been adopted as legal tender in not only El Salvador, but also Hondurus,
Switzerland and Central African Republic.
The price of BTC is $40, 578 up 3.7% in the last 24 hours over the last 30 days it is
down 8.8% and over the last 12 months it is down 17.1%.
The price of ETH is up 4.7% in the last 24 hours being at $3003.32 over the last 30 days
it is down 4.4% over the last 12 months it is up 30.2%.
TZero a centralised exchange has listed on the NYSE last week galvanising more bridges
between the centralised financial world and DeFi.
With tech stocks being down and bond yields not providing much of a hedge from inflation
investors are looking for alternatives such as stablecoins.
Stablecoins are a class of cryptos that offer price stability and are backed by real-life
assets like fiat currencies issued by the government, gold, and other reserve assets.
The stablecoins have been on the investors' radar due to their operations related to both
worlds, digital and real. While it offers instant processing and security or privacies
of the cryptos, the coins are relatively less volatile than the overall financial market due to their
price pegged with the real assets.
One such stablecoin is sUSD (SUSD), which has recently continued to be in the trend.
sUSD is a synthetic USD token or stable coin enabled by the Synthetix protocol. It keeps
track of the US dollar (US$) price through the price feeds provided by Chainlink's decentralized
network of oracles.
sUSD is integrated across the decentralized finance ecosystem as a liquid decentralized
stablecoin, including at Curve.
The increasing popularity of various stablecoins may have helped it to gain attention from
the investors. In addition to that, the investors could have lauded Synthetix's announcement
of wrapping its governance call with updates about its ecosystem.
With the introduction of Australia’s Bitcoin Futures ETF recently and
interoperability is more than just a pipedream to crypto developers.
Synthetix Protocol has also released information on Synthetix Futures which was launched on
their mainnet recently. Plus, Synth teleporters would allow instant withdrawals between various
chains like Polygon, Avalanche.
Synthetix offers exposure to trading traditional financial assets on a decentralized synthetic
platform. The platform tracks the prices of the traditional assets with Synths, requiring
users to lock the native SNX token in smart contracts as collateral. Users are then enabled
to trade in a formalised peer-to-contract via Synthetix Exchange.
Notable here that users need to burn a selection of Synths as debt in order to unlock their
SNX.
Synthetix percentage of supply locked according to defipulse.com is 0.07%, the supply and
demand model varies from platform to platform and users can investigate for themselves which
platforms mint new tokens.
Price of Synthetix SNX token is up today 9.6% during the Asian mid-market session. Over
the last 30 days it is up 21.1% and over the last 12 months it is down 56% according to
Coingecko.
Portal Asset Management is a leading digital fund manager, having won numerous awards for
their product offerings. Investors who are looking for traditional financial products
that invest in the innovative digital asset space could look to the 3 digital fund products
available at Portal to find out more. The firm have a new Radiance Hedge Multi-Strategy
fund being launched 5th May.
The Portal Digital Fund has been in operation for 2 years. It is up 83.1% for 2021. The
Horizon Index Fund is up 253% for YTD 2021 for more information and current data on the
fund please head to their website portal.am.
After the break we’ll share more information about sUSD incentivising
on Optimism’s platform with Lyra.
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As the election campaign is now on in Australia the minor seats in Australia could be receiving
legal text messages from the major parties informing them of reasons why you should vote
for them. Crypto advertising is a space that is still heavily regulated in the UK and Australia.
With the new laws for Finfluencers introducing huge fines for offering financial advice for
unregistered financial influencers. Crypto founders are executing more innovative strategies
to invite new users to their platforms.
The democratization of the internet overall is a pulsing issue with the further development
of Web 3.0. Internet users are becoming more aware that their data and content is being
owned by the tech giants in some ways impending freedom of speech, privacy and in extreme
cases access to their money. This highlights the ethos behind cryptocurrency, the onus
of control of the users finances in the individuals hands, through the dissemination of intermediaries,
such as banks. It’s the solutions focussed thinking of wanting to make the world a better
a place that drives most tech innovations, including crypto and competition is good in
the case that propels the forward-thinking inventors to be bigger and better. Will one
blockchain always remain sovereign over all of them, almost leading the market direction
in the way that Bitcoin does? Some say the tribalism of the Bitcoin maximalists can slow
down the progress of the sector. Where finding weaknesses and flaws in the code of platforms
can be useful to preventing malicious actors from exploiting the system, stealing crypto,
however there are some cases where alt-coins may be losing the altruistic angle for finding
use cases for tokenisation and instead looking to defeat each other.
Tokenization allows for the creation of new avenues of value exchange for a network.
Rewarding users for loyalty can offer benefits. Usually if the APY / APR is higher it could
open the investor to increased risk or make the process more involved to access those
rewards. However, collecting points and chasing rewards is favoured behaviour, evident from
the 3.3 billion loyalty card and account holders in the US alone, according to data from Benzinga.
When trading in DeFi platforms it is important for users to be aware of the developers identity,
the Total value locked, the daily trading volume, the percentage of tokens locked in
the pools as well as the type of wallets that are required in order to on-ramp funds and
rewards.
Incentivising a product gives users a reason to engage who may have inactive accounts,
offering increased benefits:
Synthetix stablecoin sUSD are incentivising the liquidity pool on Optimism with Lyra.
Synthetix’s points out in their blog post that spending $1 on bribes will result in
more than $1 in CRV rewards into the sUSD liquidity pool. Plain and simply veCRV holders
will gain weekly rewards in the form of $SNX and $LYRA in exchange for votes.
Yearn.Finance founder Andre Cronje revealed the defi tool allowing bribes of veCRV in
exchange for their votes. Proving to be a more efficient way to use the moving parts
of the defi machine, where native tokens of platforms are used for bribes in the place
of traditional mining rewards, it was reported by Yahoo Finance.
The Optimism layer 2 blockchain was launched in 2021. The project announced on April 19
that it has saved US$ 1.1 billion in gas fees since the project was launched. Optimism claims
to have facilitated transactions amounting to US$ 17.4 billion. It also said that it
had attracted more than 300,000 unique crypto addresses since its inception, and it has
generated revenues amounting to US$ 24.5 million. Also, the project has secured US$ 900 million
in value.
Synthetix announced on Friday 22 Apr that Weekly rewards of 12,000 $SNX and 50,000 $LYRA
have been allocated towards bribes to veCRV voters to incentivize them
to vote for the sUSD Curve pool on Optimism.