The Disrupt Weekend

  1. Obol Network – Distributed Validator Technology (DVT)
  2. LI.FI – L2 Bridge & DEX aggregator aggregator
  3. Voltz – Internet Rate Swap AMM
  4. Tracer – Derivatives Meta-Protocol
  5. Blocknative – Real-Time Infrastructure for the Pre-Chain Layer
  6. Euler – Governance-Minimized Money Market
  7. Aztec Network – Privacy-focused Layer 2
  8. – The Off-Chain Internet

Users of Solana-based borrowing and lending service Solend voted Sunday to force a takeover of the protocol’s largest account: a “whale” whose “extremely large margin position” was getting, according to Solend contributors, dangerously close to a catastrophic on-chain liquidation cliff.

The unprecedented governance vote will grant Solend Labs “emergency powers” to liquidate the whale’s vulnerable assets (around $20 million in SOL) via over-the-counter (OTC) trades. Solend Labs said on-chain liquidation of the whale’s position “could cause chaos” in Solana’s DeFi markets.

But it also usurps entirely the smart contract–coded protocol Solend programmatically follows for every other borrower liquidation.”

See Also: Voyager Digital Secures Loans From Alameda to Safeguard Its Assets

See Also: SBF: Three Arrows Crisis ‘Couldn’t Have Happened’ with Transparent On-Chain DeFi
See Also: BIS to launch market intelligence platform amid stablecoin, DeFi collapse
See Also: How Crypto Lender Celsius Overheated

A blockchain transaction that contributed to the collapse of Terra’s UST stablecoin has been linked by a South Korean analysis firm to the ecosystem’s chief developer, Terraform Labs. Uppsala, in its report, did not venture to provide a possible motive or rationale for the transaction, and officials with Terraform Labs did not reply to requests for comment. The findings have been shared with legal authorities in South Korea.

Blockchain data shows Wallet A swapped over 85 million UST for another dollar-linked stablecoin, USDC, on May 7 – just minutes after Terraform removed over 150 million UST from a liquidity pool on the lending platform Curve in a planned move. Prices of UST fell under $1 almost immediately following these trades, which Uppsala said was a result of the lower liquidity on the Curve pool. Meanwhile, Wallet A’s newly-acquired USDC was sent to Coinbase.

It means that Terraform Labs or LFG made a financial transaction that caused Terra to collapse on its own.”

See Also: Convicted Felon Anna Sorokin is Launching an NFT Collection

“Crypto has actually gone through multiple boom/bust cycles in its relatively short existence; in the last cycle the price of Bitcoin fell 85% from its peak, before rising ~20x in the next cycle. All along the way there have been skeptics calling cryptocurrency a ‘scam’ and ‘dangerous’.

The price of Bitcoin is now down ~70% from its most recent peak. And, almost on cue, the crypto grave-dancers (like Bill Gates) are now insisting that they were right for predicting its demise. If history is any guide, this is pretty foolish. As tracks, there have been (at least) 453 declarations of the death of Bitcoin since 2010.

The fact that a technology attracts manic boom/bust capital is no reflection on the technology itself. It is a reflection on the market’s tendency towards irrationality. This was the case with bicycles and the Internet. And it will most likely be the case with crypto.

There will be plenty of crypto businesses, and many tokens themselves, that will (and should) go bust. But there are still plenty of great projects and great ideas out there– most notably, the fundamental idea of having a decentralized financial system.

Our traditional financial system, dominated by clueless politicians and out of touch central bankers, has been a total disaster. It is responsible for the record-high debt and record-high inflation which are disrupting the lives of literally billions of people.

Given these conditions, the decentralized financial system that cryptocurrency represents makes more sense than ever. And the fact that Bitcoin is going through another ‘down phase’ in the market cycle bears absolutely no relevance to its value whatsoever.

History is almost invariably on the side of innovation. And there’s still an abundance of innovation in crypto.”

See Also: Crypto Market Tumbles as Bitcoin Breaks Previous Cycle’s Highs

Loss harvesting, also known as tax-loss harvesting or tax-loss selling is an investment strategy where investors either sell, swap, spend or even gift an asset that has fallen into the red — also known as making a “disposal” — allowing them to “realize a loss.” Investors typically do it in the final weeks of the tax year. In the crypto world, a loss can be realized by converting it to fiat or just trading for another crypto token on the exchange.

Most people are familiar with the concept of tax on gains. But, what they’re not doing is realizing that they can recognize that loss on their tax return to then offset against gains.”