1 October

[The KuCoin hack] serves as an acid test—just how decentralized are our DeFi protocols?

  1. Centralized issuers froze the hacked funds (e.g. USDT, AMPL, OCEAN). This hack showed that a lot of tokens fall in the category of centralized issuer willing to freeze. Some more surprising than others. Hard to compete as credibly neutral money when you’re centralized enough to freeze funds.
  2. Less centralized issuers didn’t freeze the hacked funds (e.g. SNX). A freeze for a token like SNX only occurs through a coinvote driven governance process. You have to write a Snythetix Improvement Proposal and have a majority of SNX holders agree. DAI operates in a similar fashion—a single entity or foundation can’t freeze funds.
  3. Completely decentralized issuers can’t freeze funds (e.g. ETH and BTC). The actions of the hacker were instructive. The hacker didn’t liquidate for SNX or DAI, he liquidated his tokens for ETH.

Unlike USDT and DAI, BTC and ETH are not IOUs. There’s no centralized issuer or coinvote that can freeze them. Thus they are preferred by those wishing to operate outside the confines of a specific nation-state or trusted apparatus.

They are credibly neutral base monies for the world. Bankless digital gold. So credibly neutral…even a thief can use them. Or dissidents fighting for their freedom… Or companies that compete… Or countries at war…

The most credibly neutral systems become a critical layer for human coordination. ETH and BTC have a bright future—if they can maintain their neutrality. That’s what the KuCoin hack teaches us.

“Today, we are excited to introduce the Universal Token for Assets and Payments, an entirely new token standard designed by ConsenSys Codefi.

With the Universal Token for Assets and Payments:

  • Institutions can retain full control of the assets they issue. This is essential in order to keep track of token holder identities, prevent blocklisted actors from accessing certain assets, and ensure transfers are always compliant. In the future, should these institutions choose to interact with DeFi protocols, they will also be able to either remove or decentralize these controls and benefit from DeFi networks’ composability.
  • Enterprises and developers are empowered to issue any type of asset or payment instrument on the Ethereum blockchain, be it a DeFi derivative, loan or mortgage, a retail or wholesale CBDC, an invoice or warehouse receipt, any type of financial instrument, or even collectible, or gaming asset.”

“The Dfinity Foundation has unveiled a governance system for its upcoming decentralized internet protocol. The governance network, dubbed Network Nervous System (NNS), will power the protocol and allow users to vote on its future.

At its core, the NNS is a governance system that regulates Dfinity’s litany of data centers. The NNS governance system will run on a native token, dubbed ICP. These tokens fuel Dfinity’s decentralized web, akin to how ETH provides gas for the Ethereum network.

The NNS is the catalyst for the open internet we were promised in the 1990s, and it ensures that the future of the internet remains open and free.”

See Also: Dfinity poised to launch straight into Top 5 crypto tokens by market cap

“ZUBR has released a report showing that institutional investors want actual Bitcoin, rather than cash-settled futures. Investors are also interested in holding onto Bitcoin in the long-term—and aren’t put off by the volatility.

Interest in physically-settled Bitcoin derivatives, specifically, is becoming more important, the report notes. Using Bakkt as an example, ZUBR says that at the start of the 2020, cash-settled futures accounted for over 50% of Bakkt’s total traded volume. Though by August, physically-settled futures on the exchange accounted for 72%.”

“Sexy selfies and feminist GIFs are selling like hotcakes on non-fungible token (NFT) markets.

Some crypto-savvy women are now using NFTs to profit from their public image, selling to fans who understand they’re basically paying a tribute to the creator in exchange for a blockchain-based receipt.

The bitcoiners that see me with a personal token are outraged that I’m … selling a scam with ‘my good looks.’ Most of my supporters and fans enjoy that I’m so front and center. I brought in about $20,000 in a month.

This is a tale as old as time, where predominately male circles demean women profiting from their own image as the artist and owner.

The selfies are representative of new demographics starting to enter [the NFT market].”

“On PredictIt, shares of “Trump” started off the debate trading at around 46 cents. As the night wore on and the debate took a turn for the weird, if not troubling, sellers came in where they could, taking prices down to as low as 42 cents, more or less where it was at press time.

Meanwhile, Joe Biden’s shares remained more or less in the 59-cent range during the debate. Biden’s stock has since been on an upswing, as high as 63 cents as this article was published.

On Wednesday, bettors changed their minds about Florida, moving the Sunshine State from Republican at 52 cents to Democrat at 51 cents. That compounds trouble on the electoral map for Trump, who is seeing traditional southern Republican states like North Carolina and Arizona come into play. Wagers also appear confident Wisconsin, Michigan and Pennsylvania – the three states crucial in Trump’s 2016 victory – will switch to the Democrats.

The moves now give the Democrats a likely 335 votes in the Electoral College, up from 306 several hours before.”

See Also: Trump and Biden Trade Blows, and So Did the Markets

“Swipe, a Binance-owned cryptocurrency debit card provider, is expanding its offering with a new crypto Visa card that allows users to borrow funds using blockchain technology.

Dubbed the “LendFi Visa Card,” the new product deploys major decentralized finance protocols to provide ‘near-instant access to lending balances.‘ The card is integrated with the LendFi app. At launch, the platform will support major DeFi protocol Compound.

Virtually-issued LendFi Visa Cards are available for borrowers in the U.S. by downloading the LendFi app, signing up and completing identification procedures.”

“Energy Web, a non-profit focused on decentralized approaches to decarbonizing the grid, wants to show how a large blockchain platform can switch to a zero-carbon footprint. Ripple’s support of this venture is intended to open the door to other blockchains with more energy-intensive operations.

To make all this possible, the non-profit has released an open-source app called EW Zero. This initial deployment uses energy attribute certificates (EACs) from renewable energy sources to decarbonize electricity.

In the same way that large corporates use certificates to decarbonize complex supply chains, blockchain users can purchase certificates from different places around the world (EW Zero also uses a blockchain system to track and account for these certificates).”

“MOON, a community token for the r/Cryptocurrency subreddit, technically has a market cap of over $2.88 septillion (that’s 24 zeroes) at press time. That dwarves the global economy.

Built on Ethereum’s Rinkeby testnet, MOON wasn’t initially tradable on secondary markets, which made it difficult to pin down a price. But users soon devised a workaround.

At the time of writing, HoneySwap was offering 10.5 xMOONs for an xDai. With Etherscan currently showing a supply of 30 septillion MOON tokens, that has magnified the token’s theoretical market cap to the $2.88 septillion figure.

Of course, this doesn’t mean the global economy is now 2,000 times bigger than it was earlier this month. Most of this value remains unrealized. Should more subreddit contributors decide to convert their MOON holdings into Dai, the exchange rate will fall massively, driving the token, and its market cap, down to a far more realistic value.”

See Also: DeFi ‘Vampire’ SushiSwap Still Hemorrhaging Liquidity

“NuCypher’s system will hit Ethereum’s mainnet on Oct. 15.

Primarily marketed as a solution for developers building decentralized applications (dapps), NuCypher helps firms encrypt data before they upload it to decentralized storage networks, while also retaining control over who can read the data once its uploaded (using an advanced form of flexible cryptography called proxy re-encryption).”

“Development work on the application, which allows personal medical data to be stored in a blockchain-secured digital wallet, began in May.

A successful pilot in July showed that the app was capable of managing and verifying digitized healthcare documents — including COVID-19 discharge memos, swab results, immunity proof, and vaccination records.

Digital Health Passport leverages blockchain technology to generate tamper-proof cryptographic protections for each medical document. Users can automatically verify the digital records via a mobile app and present it to officials via QR code, for a quick and seamless verification process.”