“MEV is ‘the measure of the profit a miner can make through their ability to arbitrarily include, exclude or re-order transactions within the blocks they produce.’ Miners can exploit and profit from front-running, back-running and sandwiching transactions in any block they mine. These types of activities are not well received by DeFi users as they translate to higher costs for executing transactions, and have a higher chance of paying for a failed transaction.
There are multiple ways in which dapps or users can combat MEV, but the most realistic approach is to have a trading mechanism (protocol) that enforces batch auctions. Batch auctions, or batch trading, is when an exchange’s order book processes orders across a time range with the goal of executing all trades within a batch simultaneously. Batch settlement forces the miners to execute transactions regardless of the order they have.”
“London contains five Ethereum Improvement Proposals (EIPs), each featuring code changes aimed at optimizing and improving the world’s second-largest cryptocurrency.
While EIP 1559 does not introduce a bitcoin-like supply cap on ETH, it does activate a mechanism to curb total supply growth over time by taking a variable amount of ETH out of circulation each time a transaction is executed. Simulations of EIP 1559 as of June 8 suggest the activation of EIP 1559 over the trailing 365 days would have burned a total of 2,967,937 ETH for a net reduction of 76% in ether supply growth over that period.
In addition to creating a bitcoin-like narrative of limited supply to ETH, EIP 1559 is expected to improve transaction wait times and remove fee-market uncertainty that damp developer and user adoption of dapps.
Finally, EIP 1559 is expected to solidify ether’s role as a form of payment for using Ethereum’s computing resources and interacting with the network’s broad system of dapps by requiring payments of transaction fees on the network to be exclusively paid in the network’s native cryptocurrency.
At its core, EIP 1559 is designed to make transaction fees on Ethereum less volatile and more predictable. Beyond that, however, the code change poses several risks and potential rewards to Ethereum that will be important to watch for in August.”
“Algorithmic stablecoins are still in their early stages, which means their success is far from guaranteed. Nevertheless, this emerging asset class is unique for its regulatory profile, potentially positive impact on DeFi and ability to facilitate niche use cases.”
Stablecoin experimentation is happening in real-time with billions of dollars at stake in this vast permissionless lab we call DeFi.
The basic notion here is that if a stablecoin protocol has the ability to automatically manage supply by minting and burning assets in response to market conditions, it can ensure that the asset remains close to its peg. This can lead to less reliance on governance, as well as lower collateralization requirements.
RAI, FRAX and FEI have all received various levels of support from the crypto community, though FEI is the largest of the three in terms of market capitalization at roughly $350 million.
RAI follows a “redemption price” protocol that targets secondary-market sales, which allows it to maintain stability over time versus the underlying ETH-based asset. RAI is a more suitable option for traders as opposed to long-term investors. FEI differs markedly from these projects by using a bonding curve that sells FEI for ETH. Wealth entering the system is locked in something called Protocol Controlled Value, which is used to maintain the peg through liquidity management on exchanges.”
“Users are now able to use cBridge to instantly transfer tokens across Ethereum, Arbitrum, Polygon and Binance Smart Chain, with many more side chain and layer-2 chain integrations planned for in the near future. This marks an important milestone for Celer to create a key interoperability infrastructure to unite all the fragmented liquidity back together in the future of a multi-layer-2 and multi-chain blockchain ecosystem.
Celer cBridge, as a new layer of abstraction on top of this multi-chain/multilayer future, allows users to bridge liquidity (and soon state) with much lower cost and time friction in a completely trust-free fashion.”
“The EY Organization today announces the completion of a multi-stakeholder project that successfully tested how the TaxGrid™ blockchain solution could address certain inefficiencies and complexities in the cross-border withholding tax process.
In addition to addressing the decades-old “withholding tax challenge”, this solution would help tax authorities move toward near-real-time compliance. It would help financial intermediaries to coordinate the timely exchange of investor information, across an extensive and complicated network; and allow them to meet contractual obligations and, potentially, regulatory requirements, while protecting the confidentiality of investor information.
To safeguard data privacy and confidentiality, the WHT solution uses zero-knowledge proof (ZKP) and other privacy preserving technologies, which help protect investors’ sensitive information and commercial confidentiality, while providing tax authorities with near real-time access to the data.”
“In a report published last week, analysts at the bank said El Salvador’s decision to recognize BTC as legal tender could streamline remittances, promote financial digitization, provide consumers with greater choice and open up the country to American firms and digital currency miners.
The bank noted that remittances account for a staggering 24% of El Salvador’s gross domestic product, but a sizable chunk of that goes toward transaction fees.
More than 70% of the adult population of El Salvador does not have a bank account. For that reason, democratizing access to electronic payments, through Bitcoin, has a progressive touch.”
“Beginning on August 2, 2021, German institutional funds will be able to hold up to 20% of their assets in cryptocurrencies, possibly setting the stage for wider mainstream acceptance of Bitcoin (BTC) and other crypto assets by the nation’s pension funds.
Spezialfonds currently manage about $2.1 trillion, or 1.8 trillion euros, worth of assets. As much as $415 billion worth of investments could flow into cryptocurrencies as new laws governing German Spezialfonds go into effect.”
“GoldenTree Asset Management, a New York-based company with $45 billion under management, has been adding an undisclosed number of bitcoin to its balance sheet.
GoldenTree is also considering hiring experts in cryptocurrency investments as it turns its attention to the industry.”