29 November

The company said it was filing for Chapter 11 bankruptcy protection, indicating it hoped to restructure, continuing operations in the meantime. According to a press release, BlockFi has about $257 million in cash on hand. Executives estimate the company has between $1 billion and $10 billion in both assets and liabilities.

The company’s largest creditors include West Realm Shires Inc., the legal name for FTX US, which has a $275 million unsecured claim, and the Securities and Exchange Commission (SEC), which has a $30 million unsecured claim. BlockFi’s largest creditor is Ankura Trust Company, which the lender appears to have hired in February and now has a $730 million unsecured claim.”

“At the time of publication, all votes favored raising the rate to 1%.

The voting is occurring as yields in decentralized finance (DeFi) have plummeted amid lower appetite for crypto lending. Meanwhile, yields in traditional markets have increased dramatically due to the Federal Reserve’s aggressive campaign to raise interest rates, which has exacerbated the capital flight from DeFi.

Increasing the reward is possible as Maker boosted its revenue by putting a part of its $7.7 billion in reserves to work. The strategy consists of teaming up with institutional investors such as Coinbase and allocating in multiple yield-generating investment strategies, including investing in traditional assets like government bonds.

A part of that new-found revenue should be redistributed to DAI holders to make the stablecoin more attractive for crypto investors. As Maker increasingly invests in assets outside digital assets, it may offer a way to capture the rising yields in traditional markets while simultaneously mitigating capital outflows from crypto. Raising the reward would also make DAI more competitive compared to rival stablecoins.

See Also: MakerDAO Community Rejects CoinShares Proposal to Invest Up to $500M in Bonds
See Also: Ethereum Staking-as-a-Service Startup Kiln Raises $17.6M

“On Nov. 28, users of decentralized finance, or DeFi, lending platform Compound Finance passed a proposal to impose restrictions on the maximum borrowing of 10 tokens on the protocol.

Most notably, tokens such as Uniswap (UNI) and COMP had their borrow limits slashed from 11,250,000 and 150,000 to 550,000 and 18,000, respectively. Other less liquid altcoins on Compound, such as year.finance (YFI), had its borrow cap reduced from 1,500 to just 20. Coins such as wrapped Bitcoin (WBTC), which previously had no borrow limit on Compound, have been slapped with a ceiling of 1,250 on maximum borrow.

According to Gauntlet, the proposal would prevent ‘insolvency risk from liquidation cascades, price manipulation Mango squeeze exploits, risk of high utilization, and risk from shorting assets from a short position on Compound of significant size relative to the circulating supply of the asset.’

Currently, the Compound Finance protocol has $654.7 million in total borrowings collateralized by $2.146 billion worth of assets.”

See Also: Wrapped Bitcoin Trades at Discount Amid Market Contagion
See Also: Centralized Crypto Exchanges Will Remain Dominant Despite FTX Collapse: JPMorgan

“Lagarde referred to MiCA II — presumably additional legislation building on the work lawmakers did for the original bill — in June. At the time, the ECB president said the framework ‘should regulate the activities of crypto-asset staking and lending.’ The European Parliament economics committee accepted the MiCA framework in October following trialogue negotiations between the EU Council, the European Commission and the European Parliament. Many expect the policy to go into effect starting in 2024.

This is not it — there will have to be a MiCA II, which embraces broader what it aims to regulate and to supervise. The FTX case makes it clear what dangers a completely unregulated crypto market and crypto exchanges without licenses entail.”

See Also: Israel’s Ministry of Finance Proposes New Guidelines for Regulating Digital Assets
See Also: Bahamas’ Attorney General Defends Country’s Regulatory Regime Amid FTX ‘Debacle’
See Also: FTX under ‘active’ civil and criminal investigation: Bahamas AG

Putin criticized the monopoly in global financial payment systems and called for an independent and blockchain-based settlement network on Nov 24, speaking at the International AI Journey Conference in Moscow.

The technology of digital currencies and blockchains can be used to create a new system of international settlements that will be much more convenient, absolutely safe for its users and, most importantly, will not depend on banks or interference by third countries.”