Blockchain Bites: Bitcoin on DeFi and DeFi on Bitcoin

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More bitcoins were thrown away than mined this Sunday, decentralized finance is coming into the Bitcoin system and a former CEO of Prudential Securities thinks crypto is a safe bet.

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Top shelf

Bitcoin DeFi
DG Lab recently opened its decentralized financing (DeFi) product proposal leveraging the Bitcoin blockchain. Bitcoin is a growing part of the DeFi ecosystem, built primarily on Ethereum, as a tokenized asset. A number of companies, including Bison Trails, Crypto Garage, and Blockstream, are all working on solutions to create a Bitcoin-specific DeFi ecosystem that wouldn’t use Bitcoin representatives, but allow traders to perform tasks directly with it. Bitcoin, reports CoinDesk’s Leigh Cuen.

Fundraising
Pantera Capital’s Pantera Venture Fund III has more than doubled in size since its launch in 2018. The fund has brought in $ 164.7 million in private placements from about 200 investors, according to a Form D filed with the Securities and Exchange Commission (SEC) Friday. Pantera initially hoped to raise $ 175 million for Venture Fund III and said in March of last year that it had passed the $ 160 million mark.

La vague d’Aave
Decentralized Money Market Aave has released the specifications for the second version of its protocol as the project contemplates $ 1 billion locked under contract, according to DeFi Pulse. Aave will partner with real estate tokenization firm RealT to provide mortgages to DeFi. RealT has not returned questions for comment at press time. As reported by CoinDesk, Aave has announced plans to move to a fully autonomous and decentralized protocol through its “genesis governance” program and Aave Improvement Proposals (AIP).

Crypto accounts
Crypto payments start-up Wyre offers savings accounts that provide interest on crypto. Announced on Friday, Wyre’s client list includes crypto custodial firm Casa, wallet provider BRD, and traditional businesses such as banks. The interest rates of the new product are supposed to be more stable than the interest rates of the crypto lenders, because Wyre will manage the funds between MakerDAO, Compound and two centralized crypto lenders, said Jack Jia, vice president of business at Wyre. .

The ball rolls
Former CEO of Prudential Securities and current CEO of Sanders Morris Harris, George Ball, has suggested that bitcoin is a “safe haven” asset. In a recent interview with Reuters, Ball, once a self-defined opponent of blockchain, said crypto looks “very attractive” both in the long term and in the short term. “The government cannot stimulate the markets forever.”

Quick bites

Stake

DeFi is a small part of the total Ethereum ecosystem, although it sends ripples in the larger encryption verse.

According to DeFi Pulse, the total value stuck in major DeFi apps is around $ 6.34 billion, a fraction of Ethereum’s $ 47.8 billion market cap.

CoinDesk’s Omkar Godbole reported on Friday that Ethereum’s derivative markets are booming – largely in response to DeFi. Open interest in futures, or the total value of outstanding contracts, hit a record high of $ 1.73 billion on Friday, according to data source Skew, surpassing the previous high of 1.45 billion. dollars established 10 days earlier.

“The DeFi boom appears to be generating gains in the ether,” said John Ng Pangilinan, managing partner at Singapore-based Signum Capital.

DeFi also helps to set records on Bitcoin. On Sunday, more bitcoins were tokenized for use on Ethereum than those created by the Bitcoin protocol.

Around 900 bitcoins are mined per day, while an additional 1,043 bitcoins were thrown away via wrapped bitcoins, reported Zack Voell of CoinDesk. The amount of tokenized bitcoin has climbed to nearly 31,000 bitcoins, up from 3,000 in mid-May.

Market information

Hashing Through?
Bitcoin traded below $ 12,000 this weekend. The cryptocurrency had consolidated below this critical resistance despite hitting a record hash rate of 129.03 tera hashes per second (TH / s), reports Omkar Godbole of CoinDesk. Some argue that a growing hash is a bullish price signal as it prompts miners to hold rather than sell bitcoin, thus raising the price floor. At the time of going to press, Bitcoin had crossed the $ 12,000 level.

Technology pod

Litecoin elevator
Litecoin is preparing for a network upgrade that will incorporate the Mimblewimble privacy protocol. The upgrade is supposed to help protect the identity of litecoin token sender holders and recipients while improving the network’s ability to handle more transactions. A Mimblewimble testnet, in preparation for almost a year, is scheduled for the end of September.

Editorial

CBDC circles
Carmelle Cadet, founder and CEO of EMTECH, believes the development of central bank digital currency (CBDC) will depend on open protocols, private experimentation, and APIs to gain traction. “The tradeoffs between control, interoperability and endless customization of the user experience are complex. But there is precedent for dealing with this kind of complexity. Banks have partnered with fintechs to meet market needs for consumer convenience, ”she writes.

Protect your bet?
Crypto hedge funds underperform blue-chip crypto assets like bitcoin and the S&P 500. Still, Noelle Acheson, head of research at CoinDesk, sees a sunny prospect for crypto hedge funds. “Investing in a crypto hedge fund rather than directly in the market will be a more attractive option for many investors even if the returns are slightly lower, as using a vehicle managed by seasoned management is probably safer than participating direct to the market. Investors don’t have to worry about custody, best execution and liquidity crises, ”she wrote in the latest Crypto Long and Short newsletter. Subscribe here to get it delivered to your inbox.

Coin podcast

Exploitation of asteroids?
During long reads on Sunday, Nathaniel Whittemore asks the question: is asteroid mining really our best argument for bitcoin over gold?

Who won #CryptoTwitter?

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DisclosureA leader in blockchain news, CoinDesk is a medium that strives to uphold the highest journalistic standards and abides by a strict set of editorial policies. CoinDesk is an independent operating subsidiary of Digital Currency Group, which invests in cryptocurrencies and blockchain startups.

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