“Yearn Finance looks like it could put together the Amazon of decentralized finance (DeFi).
If [Amazon] customers will always care about prices, speed and choice, then what will the equivalents be in DeFi? How does that translate onto the blockchain? Maybe: low fees, high yields and a wide selection of risk profiles? This framework makes Yearn’s recent moves easier to understand.
The company has recently either acquired or partnered with a bunch of DeFi projects, such as fellow yield seeker Pickle Finance, hedging protocol Hegic, money market CREAM and institutional DeFi portal Akropolis.
It’s aggregating DeFi services so as to reduce the costs across protocols.
Yearn has been incredibly seductive. Not only has it drawn in lots of users willing to entrust their crypto assets to it, it’s already done phenomenally well with attracting code contributors. In fact, Yearn has more developers at this point in its life cycle than any other project so far. So far, Yearn is going extremely well, proving out the model of an organization running on the blockchain without any formal structure.
Yearn is about to get far more complex. It is also likely to continue to attract coding talent. The real question then becomes whether a user will be able to open the portal and make its many new and more complex opportunities comprehensible.”
“The CFTC Technology Advisory Committee heard a presentation covering the ins- and outs- of DeFi today, with one participant telling colleagues the emerging tech is “a game changer.”
There are still plenty of questions about how to regulate the new financial species, however. The biggest challenge is determining liability.
In many cases, software development is protected by the First Amendment right to free speech in the US. And even if it weren’t, charging or arresting the original developers of a DeFi protocol running on a blockchain won’t stop the service itself.
Aaron Wright, a subcommittee member who is a clinical professor of law at Cardozo Law School and co-founder of the OpenLaw digital contract platform, noted that a safe harbor agreement, which shields entities from liability if they follow a set of guidelines, would be a relatively straightforward way to induce DeFi protocols to comply with relevant US regulations.
A safe harbor could potentially create a regulatory incentive to build and support compliance.
The subcommittee concluded with recommendations of a wait-and-see approach to better understand where risk of illegal activity would manifest in the broader DeFi ecosystem.”
“Microsoft and Ernst & Young LLP (EY) have announced plans to use a blockchain platform to allow Microsoft’s Xbox gaming partners, artists and content creators to track and manage payments and royalty contracts.
The companies said this will be one of the largest implementations of a blockchain-based financial system for accounting that will manage Microsoft’s end-to-end process for rights and royalties to its Xbox gaming partners.
In this go-live, we successfully generated the first round of partner payments utilizing blockchain and smart contract technology.”
“Sygnum, a digital asset finance firm with a Swiss banking license, has tokenized its shares on its own distributed ledger platform as it develops plans for a public offering.
The firm said Monday that it has now become the first bank to use distributed ledger technology to issue digital representations of shares.
The tokenization of shares provides investors with a fully regulated, highly efficient and potentially more inclusive alternative” to traditional ways of raising capital.”
“MassMutual’s move suggests insurance firms and pension funds are beginning to look at bitcoin as an investment/reserve asset alongside increased demand from wealthy investors and family offices.
According to JPMorgan, bitcoin may find an additional demand of $600 billion if pensions insurance firms in the U.S., European Union, U.K. and Japan allocate 1% of assets to the top cryptocurrency.
One can see the potential demand that could arise over the coming years as other insurance companies and pension funds follow MassMutual’s example.”
“It appears that Pornhub, the world’s largest adult website, is only accepting crypto for its premium service. The move was noticed on the site today after Visa and Mastercard cut off payments to the website last week.
Pornhub changed its policies to clamp down on abuse, and today said it was accepting crypto only as its default payment.
It’s unfortunate that Visa and Mastercard are playing these sort of legal games to hold Pornhub accountable.”
“An investor bid $777,777 yesterday on a collection of digital art—which includes pieces inspired by technology, Star Wars and nature—during a Nifty Gateway auction. The collection includes 20 pieces of art.
In one creation depicting a retro Game Boy under construction, the artist said, ‘The speed of technology is fucking insane.’
This savage just bid $777,777 with literally one second left.”
“Two cryptocurrency exchanges chose to kick off advertising campaigns with Transport for London (TFL) on Monday.
Coinfloor, the U.K.’s longest-running exchange, launched a mix of large digital billboards and posters across London’s main tube stations. Meanwhile, Luno, the crypto exchange recently acquired by Digital Currency Group, combines its London Underground ads with 650 Greater London buses and a bunch of large roadside billboards.”
“The United States Federal Trade Commission is making the giants of social media account for their user data practices. The commission’s stated aim is:
To compile data concerning the privacy policies, procedures, and practices of Social Media and Video Streaming Service providers, including the method and manner in which they collect, use, store, and disclose information about users and their devices.”