What’s New in DeFi, 1/25/20 - 2/11/20

February 11, 2020
What’s New in DeFi, 1/25/20 - 2/11/20

If you’re looking for a digest that’s stuffed with the latest developments to emerge from the realm of decentralized finance, you’re in exactly the right place.

Bitcoin breaks above $10,000, predicted to continue climbing

Yes, there was a flash crash shortly after initially piercing the $10k veil, but BTC is back above this price and pundits are forecasting that it will continue to increase.

That kind of price action makes sense: Bitcoin is beginning to breach the mainstream, it’s gaining popularity as an asset for hedging against uncertainty in conventional markets, and there is fundamental investment activity backing it. BTC has rarely looked so strong. Read more here.

DeFi clears the $1 billion mark

It took some time but it finally happened — there is more than $1 billion locked up in decentralized finance apps. Yes, an overwhelming majority of that sum is controlled by MakerDAO, but there are still some significant players making DeFi waves within this 10-digit market cap.

$1 billion is the kind of major milestone that merits some celebration — this crypto niche has come such a long way.

Compound commissions a stress test of its system

Wanting to be prepared for unknowable market conditions, Compound ordered a stress test of its DeFi lending protocol. The results indicated that the company can multiply its total borrowed value ten times, all with less than a 1% chance of defaulting — even when ETH is at historically high volatility

You can read more here.

Look for “no-loss lotteries” to be a new popular thing on the blockchain

A DeFi project called PoolTogether gets credit for the first crypto lottery in which losers get their money back.

The idea is that MakerDAO users will, at some point, have just a few DAI in their wallets. It won’t make sense for them to deposit such a small some into a money market, so instead they can figuratively buy lottery tickets on the blockchain. If and when their crypto tickets are found not to be winners, the users can simply get their money back. A majority of the current pool’s DAI comes from sponsored funds that provide liquidity and don’t actually participate in the lottery.

Read more here.

Bitcoin Cash experienced a significant network jam

Bitcoin Cash handles some 50,000 transactions per day, just one-sixth of Bitcoin’s overall volume, and low usage rates ended up revealing a slow block anomaly: miners were unable to discover a new block for some 5.5 hours.

Though this was a random occurrence, it still stoked tribal crypto fires. Pundits used it as an opportunity to deflate any BCH balloon, and analysts couldn’t help but point to increased pressure from Bitcoin SV, the newest network that split off from Bitcoin Cash with its own new mining model.

Read more here.

If you’re looking for a digest that’s stuffed with the latest developments to emerge from the realm of decentralized finance, you’re in exactly the right place.

Bitcoin breaks above $10,000, predicted to continue climbing

Yes, there was a flash crash shortly after initially piercing the $10k veil, but BTC is back above this price and pundits are forecasting that it will continue to increase.

That kind of price action makes sense: Bitcoin is beginning to breach the mainstream, it’s gaining popularity as an asset for hedging against uncertainty in conventional markets, and there is fundamental investment activity backing it. BTC has rarely looked so strong. Read more here.

DeFi clears the $1 billion mark

It took some time but it finally happened — there is more than $1 billion locked up in decentralized finance apps. Yes, an overwhelming majority of that sum is controlled by MakerDAO, but there are still some significant players making DeFi waves within this 10-digit market cap.

$1 billion is the kind of major milestone that merits some celebration — this crypto niche has come such a long way.

Compound commissions a stress test of its system

Wanting to be prepared for unknowable market conditions, Compound ordered a stress test of its DeFi lending protocol. The results indicated that the company can multiply its total borrowed value ten times, all with less than a 1% chance of defaulting — even when ETH is at historically high volatility

You can read more here.

Look for “no-loss lotteries” to be a new popular thing on the blockchain

A DeFi project called PoolTogether gets credit for the first crypto lottery in which losers get their money back.

The idea is that MakerDAO users will, at some point, have just a few DAI in their wallets. It won’t make sense for them to deposit such a small some into a money market, so instead they can figuratively buy lottery tickets on the blockchain. If and when their crypto tickets are found not to be winners, the users can simply get their money back. A majority of the current pool’s DAI comes from sponsored funds that provide liquidity and don’t actually participate in the lottery.

Read more here.

Bitcoin Cash experienced a significant network jam

Bitcoin Cash handles some 50,000 transactions per day, just one-sixth of Bitcoin’s overall volume, and low usage rates ended up revealing a slow block anomaly: miners were unable to discover a new block for some 5.5 hours.

Though this was a random occurrence, it still stoked tribal crypto fires. Pundits used it as an opportunity to deflate any BCH balloon, and analysts couldn’t help but point to increased pressure from Bitcoin SV, the newest network that split off from Bitcoin Cash with its own new mining model.

Read more here.

What else happened? If you missed something read our previous digest.

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