Top Stories of Last Week

Regulatory

  • Christine Lagarde stated it would soon be made public whether Eurosystem will move forward with eurozone-based digital currency, saying “the findings of a Eurosystem task force are expected to be presented to the public in the coming weeks, followed by the launch of a public consultation.” In her remarks at an online conference hosted by Deutsche Bundesbank, she indicated that if the ECB did move forward with such a project, it would be premised in part on providing payments access to eurozone residents.
  • IRS offered bounty of up to $625,000 to anyone who can break privacy coins like Monero as well as trace transactions on Bitcoin’s Lightning Network. Official proposal says IRS will accept submissions in form of working prototypes until September 16. Accepted applicants will receive $500,000 to develop prototype into working concept over eight months. Once pilot test is complete and approved by government, a further $125,000 grant will be awarded.
  • Seoul Metropolitan Police Agency reportedly conducted additional search and seizure checks at Bithumb’s headquarters. Latest investigations aim to secure additional evidence related to existing allegations against Lee Jung-hoon, chairman of board at Bithumb Korea and Bithumb Holdings.

Project Development

  • Indian tech giant Tech Mahindra announced it will offer blockchain solutions built on Amazon-managed blockchain to global customers. Company will provide solutions for aviation, telecom, and healthcare supply chain and is planning to roll out support for multiple industries over next 12 months.
  • Mastercard released platform that allows central banks to test how proposed CBDCs would work in real life. Virtual testing environment can simulate issuance, distribution and exchange of CBDCs between banks and financial service providers, as well as end-consumers purchasing everyday goods and services.
  • Digital Currency Group acquired Luno, a cryptocurrency exchange with over 5 million customers spanning 40 countries. Financial terms of acquisition were not disclosed. Firm is a leading exchange on African continent and major player in Southeast Asia. 
  • Mode Banking, an app that allows users to buy bitcoin as well as earn interest on holdings, expected to announce plans for £40 million stock market listing sometime in next month. Officially incorporated as Mode Global Holdings PLC, the company is also looking to raise £7.5 million from investors ahead of flotation.
  • Digital asset infrastructure provider Fireblocks announced partnership with X-Margin, a distributed clearing and settlement platform, in bid to boost institutional offerings in crypto derivatives market. Firms will leverage zero-knowledge proof technology to enable institutional trading firms to cross-margin and bilaterally trade derivatives without compromising security.

Exchanges

  • Binance launched automated market maker pool called Binance Liquid Swap, which will have different liquidity pools with instant token swap functionality. At launch, Binance Liquid Swap will support three trading pairs: USDT/BUSD, BUSD/DAI and USDT/DAI. Interest and trading fee income were not disclosed.
  • Binance also unveiled new initiative backed by $100 million to attract developers and projects to Binance Smart Chain. Participants can garner up to $100,000 via program focused on fostering Defi applications on Binance Smart Chain.
  • Kraken will operate in Japan for first time in two years via Japanese subsidiary, Payward Asia Ltd., which completed regulatory registration process and was granted permit to operate as crypto asset exchange business. Firm plans to start offering services in middle of September. Kraken exited Japan in 2018 when regulators stepped up oversight after Coincheck was hacked for $530 mil.

Mining

  • Canaan announced board of directors approved share repurchase program of up to $10 million, or about 3.3% of outstanding shares that are currently trading for less than $2 after initial public offering price of $9 a share. Canaan said it will repurchase its American depositary shares (each representing 15 Class A shares) and/or Class A shares directly over 12-month period starting Sept. 22. 
  • Beijing No. 1 Intermediate People’s Court denied appeal by Bitmain seeking $30 million in damages from three co-founders of Poolin.

Fundraising

  • Diginex raised $20 million ahead of anticipated Nasdaq listing later this month. Funding was raised by way of privately placed convertible note with institutions and family offices in Europe and Asia. Hong Kong-based company recently launched EQUOS.io crypto exchange, which is expected to be first publicly traded cryptocurrency exchange in U.S.
  • Lightning Network-based derivatives platform LN Markets closed pre-seed funding round joined by Bitfinex and other investors. Platform is designed to avoid slow and costly on-chain transactions by connecting traders to bitcoin derivatives market by streaming funds through Lightning Network.
  • DeFi protocol Linear Finance announced completion of $1.8 million seed round. NGC Ventures, Hashed, CMS Holdings, Genesis Block and Kenetic Capital led investment, and Alameda Research also participated. Linear claims to be first cross-chain compatible, decentralized delta-one asset protocol that can create, trade, and manage synthetic assets.

Defi

  • Uniswap fork SushiSwap migrated $830 million of crypto assets to new community-owned automated market maker. Assets are denominated in Uniswap LP tokens, which are issued when users deposit assets on Uniswap, with LP token holders looking to take advantage of SushiSwap’s trading rewards.
  • Swerve, a new unaudited Defi protocol, accumulated $380M in asset deposits within 12 hours of launch. Swerve is a fork of Curve and aims to be “100% community owned and governed,” allowing users to begin generating SWRV tokens with deposits.

Things to Watch This Week

  • Ethereum 2.0
    • Ethereum 2.0 talk is beginning to heat up, with news coming out this weekend that the November launch is on schedule. According to Prysmatic Lab’s Raul Jordan, “November is still looking good for a launch from our perspective.” However, his statement was given with a caveat that various security checks and user experience polishes needed to take place first. Nevertheless, the Medalla testnet has been reportedly running smoothly since recent fixes were implemented after an August crash. But it will be important to keep an eye on further updates surrounding the potential launch of the mainnet, which could have serious implications on the price of Ethereum over the next few weeks. Adding to this pressure is the sudden rise in Defi over the past few months and what type of impact Eth 2.0 will have on the network’s congestion, gas fees, and token prices of the billions in assets that have flowed into Defi platforms recently.
  • Bitcoin Unease
    • Bitcoin’s most recent attempt to break through a resistance at $10,500 seems to have failed yet again, adding to several other factors this month that have some investors feeling a sense of unease. Mentions of September being a tough month historically for Bitcoin returns have been showing up on publications and forums continuously. Additionally, the work of on-chain tracking entities such as Chainalysis show that the retreat in price beginning this month coincided with large inflows of Bitcoin onto exchanges. Coupled with the upcoming U.S. election uncertainty and talks of tech bubbles in traditional markets, we can see why sentiment could be affected currently. We’ll be monitoring any further inflows onto exchanges to see if sentiment continues in this direction.
    • SBF@SBF_Alameda
      12) I can’t undo what Nomi did, no one can but him. But I can offer a way forward for Sushi. First, Nomi has to give up all control, keys, etc. for Sushi and has to do so now. If not, his project is dead.

      13) Second, if he does so, the offer to build another copy of it on Serum — while keeping the current version on Ethereum–still stands. And in fact there’s more. Nomi sold 5mm SUSHI from the dev pool. If the above happen, I will personally return 5mm SUSHI to the community.

      14) They will be airdropped on all SUSHI stakers after the migration and Serum buildout. Otherwise, if the above don’t happen–so be it. There will be an AMM on Serum either way, and it will be composed with orderbooks and borrow/lending, and it will be fucking awesome.

      15)@ProjectSerum is charging forward and building powerful products, one way or another. https://serum-academy.com/en/dex-list

      16) TL;DR: a) Nomi sucks and hurt the community b) Sushi shows promise as a dynamic AMM built by the community c) If Nomi doesn’t step down, it’s over for Sushi. d) If Sushi adds a division on Serum, we’ll give 5mm SUSHI to farmers e) Either way, AMMs coming to Serum
      READ MORE

      Camila Russo@CamiRusso
      Uniswap TVL has halved after SushiSwap’s liquidity migration But value is still up by 50% since SushiSwap launched (vs flat or down for Curve, Aave, Maker) SushiSwap’s vampire mining wasn’t as zero-sum as it seemed; it’s actually grown the pie
      Image
      Ben DiFrancesco@BenDiFrancesco
      If Sushi succeeds in vampire attacking Uniswap, after the latter’s founders spent years doing the actual hard work, you’ll never see a project launched w/o a useless token in this ecosystem again. The incentives for builders trying to do the right thing are shitty enough as it is
      SushiChef@SushiSwap
      1/2 First full day of $Sushi‘s #Sushiswap:
      * >$1B in TVL (largest dex by liquidity)
      * >$273M in trade volume (2nd largest by volume)
      * Lowest gas fee & slippage on any Dex
      * New support site & documentation live.
      * All built by a community of volunteers. Delicious & Dangerous.

      2/2 Oh and:
      * $682.5K rewards for LPs.
      * $136k fee rewards for Sushi holders. All on top of the regular farming. That is a great sushi roll combo.

      PlanB@100trillionUSD
      #Bitcoin 200 week moving average at $6600 and increasing ~$200 per month. BTC 200WMA never goes down. BTC monthly close has never been below 200WMA. Note BTC $1000 struggle in March 2017.
      Andre Cronje@AndreCronjeTech
      Seeing a lot of projects promoting “multisig governance” like it is a feature. It is a stopgap for proper governance. But proper goverance takes time to formulate. Multisig is not a feature, its a crutch. If teams promote this as a feature, please think twice.
      Pomp @APompliano
      Just convinced @jimcramer to buy Bitcoin. Reply to this tweet with your best meme or gif to welcome the world’s newest Bitcoiner
      Willy Woo@woonomic
      Many look at the BTC price and doubt it’s a hedge. High net worth individuals and funds certainly consider it to be true and betting on that with real money. Since this latest round of USD money supply expansion, whales entities have increased their holdings of BTC markedly.

      Nicolas Dorier@NicolasDorier
      I just entered in a bet via a DLC (with adaptor sig) with @Chris_Stewart_5 on the US elections. He used https://github.com/bitcoin-s/bitcoin-s/… I used https://github.com/dgarage/NDLC (not ready for others but me yet, will brush up this week and next week + vid)

      The awesome thing is that if you trust Outcome Observer (which we both trust), you can also make a bet with somebody else, without for the oracle to know about it! 🙂

      Outcome Observer@OutcomeObserver
      Hoot hoot! I will BIP340 sign the result of the 2020 USA Presidential Election with the following nonce: 92ba989222e76cf0cb263fedd67587812110bde1dc1468bef63c8f6974692ea1 The message will be the SHA256 hash of “Republican_win” or “Democrat_win” or “other” Did you get all that?
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      Frank Chaparro@fintechfrank
      According to The Block’s volume index, the volume for August came in at $191.2 billion compared to $109.3 billion in July. Last month’s spot exchange volume was the third-largest monthly volume since 2017.
      Hasu@hasufl
      Maker giving up on the peg for now – IMO a smart decision, there’s insane demand for stablecoins due to ongoing yield farming, and those who buy it today are not really fazed by a 2-3% drop back to peg. at least this way, MKR holders get to capture some of the value created

      Qiao Wang@QwQiao
      Been asked what I’m most excited about in DeFi. Here they are:
      – Synthetic assets: enable anybody in the world to store wealth in high-quality assets.
      – Under-collateralized loans: cornerstone of capitalism
      – Stablecoins and related: arguably the most important primitive in DeFi

      From an investment point of view, BTC pre-2013 and ETH pre-2015 were once-in-a-lifetime asymmetric bets. DeFi pre-2021 is once-in-a-decade IMO (until proven wrong). If you’ve missed the first two don’t miss the latter

      There was a lot of crap over the past 2 months but don’t get distracted by these. Try a dozen of real products and you’ll get a better sense of how DeFi enables fundamentally new and interesting user behaviors.

      Ma/ya Zehavi @mayazi
      serious question: what’s the difference between yield farming w/treasuries & ICOs being LPs in other ICO funds?
       
      Martin Köppelmann@koeppelmann
      Serious question: isn’t it totally irresponsible if you have a eth treasury and you can evaluate smart contract risks (we can) to not participate in yield farming? I don’t feel bad about the eth we use for that but for the eth we don’t use.
      Last Token @LongLastToken
      IMHO: It’s totally irresponsible to have any treasury in $eth. Projects are not hedge funds. Dabbling in $eth price movements is irresponsible to ur employees, token holders and ur community. In past one could understand as there were no stablecoins and banking support was rare.
      READ MORE
      Alex Thorn@intangiblecoins
      Bitcoin 60d correlation to gold is pretty wild right now. Highest ever.
      Image

      Aaron Wright@awrigh01
      Those running #defi multisigs are potentially placing themselves in regulatory cross-hairs. Review the DAO report and see how often they mention the DAO’s curators: https://sec.gov/litigation/investreport/34-81207.pdf… Different, yes, but clearly a point of control that regulators will focus on.

      Spencer Noon@spencernoon
      Sorry but why would anyone want to be selected for a #DeFi multisig…? You are literally putting a bounty on yourself…