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Bee2 Finance Buzzing to Bring DeFi to the Masses With Quadratic Mining

As another week in the world of DeFi commences, more new projects that aim to further decentralize and democratize the world of finance emerge. Today’s focus is on a project called Bee2 which wants to move DeFi away from the clutches of the whales, and into the hands of the masses. The current state of […]

The post Bee2 Finance Buzzing to Bring DeFi to the Masses With Quadratic Mining appeared first on BeInCrypto.

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As another week in the world of DeFi commences, more new projects that aim to further decentralize and democratize the world of finance emerge. Today’s focus is on a project called Bee2 which wants to move DeFi away from the clutches of the whales, and into the hands of the masses.

The current state of decentralized finance is highly stacked in favor of those with heavy collateral bags. Astronomical gas prices make smaller transactions on Ethereum virtually impossible. In the current state of things, many users end up losing money just by making a transfer.

Add to that the trading fees such as those imposed by Uniswap on each trade, or Yearn Finance’s fees for withdrawals, and it becomes clear that the rich get richer with most DeFi dealings.

A new incentive called Bee2 Finance has started an experiment using quadratic mining to try and make DeFi a fairer form of finance for everyone.

defi token swapsdefi token swaps

Busy Bees Building DeFi

The Bee2 project is taking a different approach to DeFi. The standard this year has been issuing rewards for liquidity providers, which only really benefits those with a lot of liquidity to provide, i.e. the whales:

Our team thinks that DeFi’s liquidity mining is falling into the Matthew trap. It makes the rich richer and the poor poorer, and many investors can’t even afford high gas fees on Ethereum.

Bee2 is building on the concepts from a book called Radical Markets by Eric A. Posner and E. Glen Weyl, taking specifically from a portion that deals with ‘Radical Democracy.’ DeFi project governance decisions and voting mechanisms have been weighted towards those with the most tokens so, as previously reported by BeInCrypto, most aren’t really that democratic.

The experimental project aims to use an innovative voting method called quadratic voting (QV) and take it a step further with quadratic mining. The quadratic mechanism has recently been applied to a number of consensus and funding operations such as Gitcoin Grants. Ethereum co-founder Vitalik Buterin was also very positive about the mechanism in an article he penned in December 2019.

The Bee2 project will use a quadrating mining function in combination with the liquidity farming incentive that most DeFi protocols are based upon. In current DeFi liquidity mining methods, earnings and costs increase linearly. That is, the more tokens staked, the more the reward, which is good for the whales, but not so good for the average user that doesn’t have tens of thousands of dollars in crypto collateral to throw at experimental projects.

quadratic miningquadratic mining
Quadratic Mining Revenues and Costs Example – Bee2.Finance

With a quadratic mining mechanism, rewards and costs increase exponentially, which balances the power and is of greater benefit to those with smaller stakes.

Countdown to Launch

According to the Bee2 blog post and protocol dashboard, the project will go live on Sept 9 at 09.00 UTC. There will be two types of tokens distributed, BEE and HONEY. The former being the primary use token and the latter a bonus reward token.

There will be a total supply of 5 million BEE tokens, distributed across four liquidity pools of wETH, LINK, ANT, and YAMv2.

According to Etherescan, ANT has a market cap of $154 million and a circulating suppling of just over 33 million. The YAMv2 pool is the second iteration of the Yam Finance project which launched in mid-August.

The project has allocated 10% of all BEE tokens to go back into a development fund for future iterations and contract audits.

ethereumethereum

The second token, HONEY, is determined by how much BEE is generated by the liquidity pools and has no fixed supply. HONEY can be produced if the maximum number of staked tokens in the pools is greater than the constant value set by the protocol. The constant values of the four staking pools are 10,000 WETH, 500,000 LINK, 500,000 YAMv2, and 1 million ANT.

The second condition for HONEY generation is that the pools must be running for at least two days with a minimum of 69,120 BEE mined. The blog post added that HONEY tokens are worthless and there are no further mechanisms designed:

After multiple quadratic mechanisms, it will become more distributed, and the whale’s effect will be further weakened.

It also said that there is no pre-mine, no founder shares, and no VC interests, similar to that of Yearn Finance.

BEE will be used as the governance voting token, based upon the quadratic voting mechanism. The Bee2 team noted that this is not a perfect solution—but it does increase the cost of cheating the system.

DeFi Markets Cooling Down (For Now)

The $70 billion crypto crash over the past few days has taken its toll on DeFi markets with collateral being pulled out over the weekend.

Total value locked across all markets has dropped $2 billion from its all-time high of over $9.5 billion on Sept 2, to $7.5 billion on Sunday according to DeFi Pulse.

DeFi TVLDeFi TVL
DeFi TVL Chart – DeFi Pulse

That value has crept up a little as Monday trading begins in Asia and is currently sitting around $8 billion. It has still been an epic month for decentralized finance with TVL gaining 70% over the past 30 days.

In terms of the most popular platforms, Uniswap is still at the top of the table with a market share of 19% and a TVL of $1.51 billion, up 36% on the day. According to Uniswap.info, volumes on the token swapping protocol have fallen from almost a billion dollars last week to around $620k on Sunday.

Aave is the second-most popular platform at the time of press with a TVL of $1.38 billion, while Maker sits comfortably in third with a TVL of $1.26 billion.

Curve Finance and Yearn Finance, which had a successful launch of its yETH vault, have both seen their collateral shrink by double digits over the weekend. Synthetix, Balancer, Flexa, and Nexus Mutual are performing well today with decent gains in total value locked.

Source: https://beincrypto.com/bee2-finance-buzzing-defi-masses-quadratic-mining/

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Blockchain and crypto will challenge current finance, Nigeria VP says

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Nigeria’s vice president, Yemi Osinbajo, delivered a speech at an economic summit on Friday in which he spoke positively of crypto and blockchain. 

“There is no question that blockchain technology generally, and cryptocurrencies in particular, will in the coming years, challenge traditional banking, including reserve banking, in ways that we cannot yet imagine,” Osinbajo said on Friday during the Central Bank of Nigeria, or CBN, Bankers’ Committee Economic Summit. “We need to be prepared for that seismic shift, and it may come sooner than later,” he said.

The Nigerian vice president also noted the broadness of the crypto industry, mentioning decentralized finance, or DeFi, in the mix. “Decentralized finance, using smart contracts to create financial instruments, in place of central financial intermediaries, such as banks or brokerages, is set to challenge traditional finance,” he said. 

Osinbajo’s speech, which included a number of other points, is posted on his YouTube channel. The Nigerian vice president also tweeted out a video clip highlighting of some of his crypto comments from his talk.

“The point I’m making, is that some of the exciting developments we see call for prudence and care in adopting them and these have been very well-articulated by our regulatory authorities,” he said, adding:

“But we must act with knowledge and not with fear. We must ensure that we are in a position to benefit and in a position to prevent any of the adverse side effects, or any of the possible, even criminal, acts that may arise in consequence of adopting or taking any of these options.”

The comments come in contrast to recent developments in Nigeria. Earlier in February, Nigeria forbade banking interactions with crypto exchanges, as per a ruling from its central bank. The CBN’s governor also called crypto assets illegitimate. Bitcoin recently traded at a significant premium in the region.

Source: https://cointelegraph.com/news/blockchain-and-crypto-will-challenge-current-finance-nigeria-vp-says

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‘Bitcoin could reach $1 million or $1, and may do both of those’

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While many analysts predict that either Bitcoin could increase to a million or fall to a dollar, a popular businessman and investor based in the US thinks that the asset could do both!

In a recent interview with Joe Kernen at CNBC’s Squawk Box, Internet analyst Henry Blodget of the dot com era fame said: 

Bitcoin could go to $1 million… it could also go to $1. And in fact it may do both of those

In addition, Blodget, who also served as the head of the global Internet research team at Merrill Lynch, is unconvinced about the asset’s value proposition. He claimed that Bitcoin as an inflationary hedge and the narrative surrounding its value as ‘digital gold’ were “stories”. He further added: 

But the stories that we tell about why relative to the value of gold or other currencies, they’re ludicrous.

In his opinion, Bitcoin can trade just about anywhere because it does not have any fundamental backing. He said that unlike traditional stocks, “which usually does have some relationship ultimately to a fundamental,” of a company, “Bitcoin doesn’t, so that means it can trade anywhere.”

The entrepreneur thinks that crypto exchange Gemini’s CEO Tyler Winklevoss could eventually be “exactly right,” in his forecast that the asset could surge to a million. However, Blodget said:

If people were to decide that for the next couple of hundred years Bitcoin is where you park your money when you take it out of the fiat system, OK, it’s possible.

Interestingly, while crypto Twitter and Bitcoin enthusiasts, in particular, called out the analyst’s criticism, they commended the interviewer’s counter-argument. CNBC’s Joe Kernen seemed to even “speak the language” of the crypto space as one twitter user named @HodlBells noted:  


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Source: https://ambcrypto.com/bitcoin-could-reach-1-million-or-1-and-may-do-both-of-those

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Crypto platform NetCents to offer users access to DeFi protocols thru Vesto

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NetCents, a cryptocurrency payments company, today announced it has signed an agreement with Vesto.io to pave the way for DeFi access in the NetCents platform.

Vesto, is a San Francisco-based company that has created a platform allowing users to choose from multiple DeFi protocols in a virtual supermarket. NetCents (with regulatory approval) intends on enabling a portal to the Vesto infrastructure from the NetCents wallet in order to facilitate user’s adoption of DeFi investing in an efficient and easy-to-understand interface.

“We have seen the DeFi space explode over the past year, but for it to reach the next level – the tools and the process has to be attainable by the novice crypto investor. We will be adding a layer of simplification to the process so that individuals can have their savings actually working for them without the complexity of the current platforms. Individuals have the right to lend their money at market-based rates instead of getting 1% interest on their savings that the commercial banks are offering.”
– Clayton Moore, NetCents Founder & CEO

LOI

The Letter of Intent  (LOI) contemplates a Joint Venture between parties and an option for NetCents to invest in Vesto and hold a significant ownership stake in the company at a future date.

Management of NetCents also informed investors that many of the concepts embraced by these DeFi platforms have not been vetted by the many authorities that regulate financial products. NetCents intends to work together with regulators to navigate this landscape and resolve it with a compliant product.

For Example: Fintech businesses seeking to bring a novel product or service to the market can seek regulatory relief through regulatory sandboxes such as the Ontario Securities Commission’s LaunchPad or the British Columbia Securities Commission’s SandBox.

Furthermore, businesses that distribute, trade, or advise in crypto assets that are securities are required to comply with securities laws (in particular, registration and prospectus requirements), which can be onerous. There are many exemptions for specific types of distributions, trades, and other activities and NetCents intends to research these exemptions rigorously. These exemptions, at a high level, may limit the types of investors that can participate or the investment amounts, or may require the preparation of disclosures to investors and filing of a disclosure document.

Source: https://www.cryptoninjas.net/2021/02/27/crypto-platform-netcents-to-offer-users-access-to-defi-protocols-thru-vesto/

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