Tag: DeFi

DeFi vs. Web3: Key differences explained

boss

Web3 uses blockchain technology to create a more equitable internet. The original vision of the internet was that it would be decentralized and accessible to everyone, but unfortunately, this vision has been lost, as the web has become increasingly centralized. DeFi is essentially Web3’s version of a more transparent financial system. Permissionless The term “permissionless” is used because there are no restrictions on who can participate in these networks. Those who participate can do so without any limits or barriers. The difference between DeFi and Web3 lies in their implementation…

Exchange pulls plug on DeFi multi-token wallet

boss

Cryptocurrency exchange Huobi has announced that it will discontinue its Huobi Cloud Wallet platform in May 2023 citing ‘strategic and product adjustments’. As per an announcement on Huobi’s support page, maintenance and upgrades of the multi-token wallet service will officially stop on Feb. 13. Users that are still using the Cloud Wallet are being encouraged to transfer cryptocurrency and nonfungible tokens (NFTs) to their main Huobi accounts or other wallet addresses. Huobi Cloud Wallet’s withdrawal and transfer functions will work for the next three months, while users are cautioned not…

SEC’s crypto staking crackdown has uncertain consequences for DeFi: Lido Finance

boss

A crackdown by the United States securities regulator on crypto staking could have unintended consequences for decentralized finance (DeFi), according to the head of business development at Lido DAO.    In a Feb. 13 Bloomberg report Jacob Blish, who leads business development at Lido’s decentralized autonomous organization (DAO), said the most significant risk would be if the SEC eventually concluded that no U.S. citizen can interact with crypto staking services, including protocols. “The biggest risk I personally see as a U.S.-based person is if they come down and say you…

How to Avoid the Death of DeFi in the Wake of FTX

As we’ve seen the number of DeFi users stagnate, and its total value locked decline, it is clear that widespread popular adoption isn’t happening on its own. Without a fundamental raison d’etre, DeFi looks less like a financial revolution and more like a pyramid scheme. To build lasting value, DeFi needs to focus on economic integration, not selling steak knives. We will not see sustained DeFi growth until markets see blockchain as a system compatible with the requirements of real world economics Source

DeFi securitization of real-world assets poses credit risks, opportunities: S&P

boss

Decentralized finance’s (DeFi) use case in traditional finance could grow in the coming years as new protocols attempt to support the securitization of real-world assets, according to a new research report from credit rating agency S&P Global Ratings.  The financing of real-world assets, or RWAs, will likely be a key focus area for DeFi protocols moving forward, S&P said in a report titled “DeFi Protocols For Securitization: A Credit Risk Perspective.” Although the industry is still in its nascent stages, S&P highlighted several benefits DeFi could bring to securitization, including…

ZK proofs, DeFi protocol and longevity DAO attract investment

boss

2023 is off to a tepid start for crypto venture capital, as the industry continues to emerge from a prolonged bear market. But that doesn’t mean there aren’t deals. In January, Cointelegraph reported a $125 million raise from Blockstream, a $60 million allocation to QuickNode and pair of ecosystem funds from Injective and SSV worth $150 million and $50 million, respectively.  The latest edition of VC Roundup brings you seven smaller venture deals that may have slipped through the cracks. Related: Venture capital investments into blockchain continue to free-fall: Report…