Kraken CEO: ‘Defi Scams’ Must Take Their Losses as Way to ‘Enlightenment’

Jesse Powell, chief executive officer of the world’s fourth-largest crypto exchange Kraken, has criticized decentralized finance (defi) projects, accusing them of being “scams” that enter the market too quickly, unprepared. In a charged Oct. 26 tweet, Powell said the “scams” should not expect crypto exchanges to bail them out once things go wrong. Preferring to let the defi projects fail in order that they get “enlightened”, he thundered: I will not accept your attempt at externalizing the cost of your hasty, reckless rollout. Invest in audits, insurance and please DYOR.…

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DeFi needs more fixed-rate lending protocols: Messari researcher

DeFi lending protocols have attracted billions of dollars in liquidity provision by offering huge returns, however the sector badly needs more fixed rate lending options according to one researcher. A number of protocols, including Yield Protocol, UMA Protocol, and Mainframe are already venturing into fixed rate lending and borrowing markets for crypto collateral. According to Messari researcher Jack Purdy fixed rates provide certainty for lenders and borrowers looking to accurately forecast their costs and returns on capital. Referring to yield curves, which plot interest rates against varying maturity dates, he…

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DeFi devs may save months of work with OpenZeppelin’s operations platform

OpenZeppelin, a blockchain software company known for developing one of the most used implementations of the Ethereum ERC-20 contract, announced on Tuesday the release of a developer suite called Defender. The tool helps automate many of the development operations associated with running Ethereum-based DApps. It provides a simple dashboard to manage upgrades and admin operations for existing smart contracts, which can help developers keep track of changes. Other features include a transaction relayer that simplifies integrations with web-based backends, automated tasks like logging or oracle updates and a general knowledge…

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Funds locked in DeFi surge $1B as analyst tips post-election bull run

Following a six week cooling-off period for the majority of decentralized finance protocols, the DeFi bulls are back in action as total value locked surges to new record highs. The amount of crypto collateral locked across various DeFi protocols has hit a new all-time high of $12.3 billion according to DeFi Pulse. In just 48 hours, over one billion dollars has been added to the total USD value, although precise figures vary on other analytics platforms such as Coingecko and Coinmarketcap. TVL on Coingecko’s tracker reports it to be around…

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DeFi season could be over as Bitcoin and Ether pack bags for the moon

With Bitcoin price successfully punching through the $12,000 barrier after PayPal announced that it would be venturing into digital assets, October is delivering on the excitement that September failed to provide. And with on-chain and market data continuing bullish signs for Bitcoin (BTC), experts believe that a 2017-style rally may be on the way. Ether (ETH) price has also picked up, although confidence in decentralized finance is beginning to shake as the industry’s growth and hype are slowing down. DeFi has been the major kick-starter for cryptocurrency popularity in 2020,…

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Anonymous devs behind a DeFi yield farm could steal $1B in 12 hours

Harvest Finance, a decentralized finance project that succeeded in attracting over $1 billion in funds locked has an admin key that gives its holders the ability to mint tokens at will and steal users’ funds. As noted by auditing companies PeckShield and Haechi, the governance parameters are not set by a contract with clearly defined rules. An admin key, presumably held by the anonymous developers behind the project, could be used to arbitrarily mint new FARM tokens. This power could allow the governance key holders to create an unlimited number…

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Is DeFi really a threat to centralized finance? Oct. 14-21

No major euphoria-worthy moments happened this week — the ecosystem is still cooling off.  I think the biggest sign of that is Uniswap’s trading volume. After hitting a peak of slightly less than $1 billion in daily volume in early September, those numbers steadily deflated. Courtesy of Uniswap’s sleek dashboard. But despite the downtrend, I think even the current level is still well beyond the wildest imagination of a DeFi fan in 2019. For reference, those figures are roughly on par with Bitstamp or Bitfinex (even though as I write…

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DeFi deja vu as another stealth Andre Cronje project launches

Yearn Finance creator Andre Cronje quietly published his third protocol to GitHub since August on October 19, dubbed Keep3r Network.  Despite the lack of a formal launch announcement, and Keep3r’s documentation stating the protocol is in beta, over-exuberant investors once again rushed to invest into the project — many of whom have already incurred losses. Keep3r is a decentralized gig-style marketplace for technical jobs powered by its native token KPR. The platform is intended to give manpower-strapped crypto projects access to specialized labor and technology. Keep3r’s documentation cites tasks as…

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Payments-focused cryptocurrency Dash now has a bridge to DeFi

Dash (DASH) holders will soon be able to access a wide range of decentralized finance, or DeFi, services through a collaboration with StakeHound. According to an announcement on Oct. 19, tokens which are deposited with StakeHound will also earn network rewards through the Dash masternode system. In order to take advantage of the burgeoning DeFi market, Dash holders must send tokens to StakeHound, who will then instantly generate and send back a wrapped ERC-20 representation called stakedDASH. StakedDASH will be tradable and usable in major DeFi platforms such as UniSwap,…

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