Connect with us

Blockchain

BitMax.io Launches Staking Support to Solve the Liquidity Dilemma for Staked Assets

Introduction BitMax.io (BTMX.com), a Singapore registered digital asset trading platform, has launched a new staking product on April 2, with initial support for Cosmos (ATOM) and Tezos (XTZ) befor

The post BitMax.io Launches Staking Support to Solve the Liquidity Dilemma for Staked Assets appeared first on AMBCrypto.

Republished by Plato

Published

on

Introduction

BitMax.io (BTMX.com), a Singapore registered digital asset trading platform, has launched a new staking product on April 2, with initial support for Cosmos (ATOM) and Tezos (XTZ) before expanding coverage to other digital assets.

The BitMax.io team announced its staking product will utilize an innovative design to address liquidity challenges associated with traditional staking. As a part of this design, users will have the flexibility to trade and transfer staked assets while still receiving block rewards. The new staking product also seeks to promote more secure blockchain networks for supported projects by encouraging higher stake ratios.

Liquidity Dilemma: To Stake, or not to Stake?

Proof-of-Stake (“PoS”) blockchain networks rely on token holders to stake assets in order to participate in various consensus mechanisms, thus promoting network security and resilience. In return for their contribution, these token holders, or “validators,” earn block rewards – generally in the form of the network’s native digital asset.

In this regard, staking allows token holders the opportunity to generate returns by simply “locking” assets for a set period. However, an inherent shortcoming of staking is that “unlocking” assets require a lengthy unbonding period during which a token holder can neither trade or transfer the asset nor is eligible to receive any staking rewards.

Tradeoffs between accessibility and staking rewards present a critical “liquidity dilemma”, for token holders when deciding whether to stake, or not to stake various digital assets operating on PoS networks. Some of the most troubling consequences of this liquidity dilemma are as follows:

  1. 1. Low Stake Ratio 1 :
    The inherently volatile nature of digital asset markets is sufficient to deter many token holders from staking because staked assets cannot be traded to hedge risk effectively. A low stake ratio results in low network security for the blockchain project.
  2. 2. Extreme Network Inflation:
    To incentivize token holders to participate in various consensus mechanisms, many PoS projects issue large block rewards to be distributed amongst delegators, resulting in a rapidly expanding token supply. An inflationary supply with no additional capital inflow will likely result in token price depreciation.
  3. 3. Significant Hash Rate Volatility:
    Price action on secondary markets may catalyze large portions of the staked network to be “unbonded” as token holders flock to undelegate and sell – either to take profit following price appreciation or stop losses following price depreciation – resulting in dramatic swings in network hash rate. A volatile hash rate results in network instability.

A Novel Approach to Solve the Liquidity Dilemma for Staked Assets

In response to the liquidity dilemma facing token holders and PoS projects, BitMax.io has designed a staking product which grants users the flexibility to trade and transfer staked assets without unbonding them from the network. Ultimately, the platform’s novel staking product will allow users to receive more attractive returns without sacrificing liquidity; therefore, encouraging higher more
resilient stake ratios for blockchain networks. BitMax.io’s novel staking product will have three key features:

1. Immediate Access to Staked Assets:
To enhance users’ staking experience, BitMax.io will maintain a pool of assets for immediate access after an asset is unstaked. “Instant Unbonding” will allow users to manage staked assets at their discretion even when delegating to a network with a lengthy unbonding period.

2. Margin Trading for Staked Assets:
To further promote marketplace efficiency, BitMax.io will create a synthetic version of each staked asset to be used as margin collateral, thus allowing users to go long or short to hedge exposure while continuing to earn rewards.

3. Maximized Staking Returns:
To maximize returns on behalf of users, BitMax.io will automatically redelegate staking rewards to staking pools, thus allowing users to further enhance yield from their token holdings. With regards to BitMax.io’s new staking product, BitMax co-founder and CEO, George Cao stated:

“Product innovation has always been a core aspect of our business. We designed this product to improve upon lots of the shortcomings associated with other platforms’ staking offerings. By offerings a solution to the ‘liquidity dilemma,’ we are giving our users the best staking experience while also providing value to the projects we support.”

Platforms such as Kucoin and Binance have adopted an approach known as “Soft-Staking” wherein each exchange can stake on its users’ behalf without active acknowledgment from the token holders. In contrast, BitMax.io has opted for a more traditional “principal-agent” relationship with its users which requires each token holder to opt-in as a delegator to the relevant blockchain network. In furtherance of this strategic decision, George Cao, notes:

“We will never stake customer assets nor use customer assets to vote or decide anything without approval. BitMax.io only aggregates staking interest from platform users as a single counterparty and then delegates to trusted
validators of choice, while at the same time taking care of reward distribution tasks and reinvestment of reward on behalf of users.”

Maximized Staking Rewards for Platform Users

As of April 2, 10:00 a.m. EDT, all BitMax.io customers can stake Cosmos (ATOM) and Tezos (XTZ) and collect staking rewards immediately. This is yet another point of differentiation between BitMax.io and competing platforms which delay reward distribution. For example, Binance distributes rewards on a once-monthly basis to users holding assets on Binance.

Seamless and efficient distribution of staking rewards should allow BitMax.io users to maximize returns from token holding via compounding interest. BitMax.io has confirmed that the platform will expand staking support to other emerging and high potential PoS protocols in the near future. BitMax.io was previously announced as one of the validators of KAVA (KAVA) and was also reported as building infrastructure to support Harmony (ONE) staking pending the project’s strategic roadmap.

Disclaimer: This a paid post, and should not be treated as news/advice.

Source: https://ambcrypto.com/bitmax-io-launches-staking-support-to-solve-the-liquidity-dilemma-for-staked-assets

Blockchain

Kraken Daily Market Report for February 24 2021

Republished by Plato

Published

on


Overview


  • Total spot trading volume at $2.43 billion, up 18% from the 30-day average of $2.06 billion.
  • Total futures notional at $742.6 million.
  • The top five traded coins were, respectively, Bitcoin, Ethereum, Tether, Cardano, and Polkadot.
  • Strong returns from Augur (+22%), Icon (+20%), Lisk (18%), and Compound (18%).

February 24, 2021 
 $2.43B traded across all markets today
 Crypto, EUR, USD, JPY, CAD, GBP, CHF, AUD 
XBT 
$50855. 
↑4.0% 
$927.5M
ETH 
$1694.5 
↑7.3% 
$442.0M
USDT 
$1.0009 
↑0.06% 
$308.7M
ADA 
$1.0666 
↑11% 
$140.5M
DOT 
$36.359 
↑5.2% 
$112.8M
USDC 
$1.0002 
↑0.01% 
$58.0M
XDG 
$0.0552 
↑16% 
$46.8M
XRP 
$0.4888 
↑2.7% 
$45.1M
LTC 
$187.16 
↑5.4% 
$44.2M
LINK 
$28.266 
↑8.8% 
$43.1M
BCH 
$546.64 
↑5.9% 
$19.9M
ATOM 
$20.971 
↑4.1% 
$17.4M
XLM 
$0.4278 
↑11% 
$17.0M
FLOW 
$22.203 
↑3.6% 
$14.8M
UNI 
$26.741 
↑7.6% 
$13.7M
GRT 
$1.9695 
↑16% 
$13.2M
AAVE 
$398.38 
↑9.2% 
$9.83M
ALGO 
$1.1312 
↑12% 
$9.67M
KSM 
$259.95 
↑8.0% 
$9.22M
XMR 
$218.18 
↓1.3% 
$9.14M
DASH 
$253.84 
↑9.8% 
$8.88M
EOS 
$4.0463 
↑5.0% 
$8.57M
XTZ 
$3.8502 
↑8.5% 
$8.23M
TRX 
$0.0492 
↑9.5% 
$4.84M
DAI 
$1.0012 
↓0.01% 
$4.78M
ICX 
$1.7515 
↑20% 
$4.63M
QTUM 
$5.5107 
↑7.1% 
$4.55M
SNX 
$20.534 
↑13% 
$4.44M
OMG 
$5.0897 
↑8.7% 
$4.29M
BAT 
$0.5229 
↑9.5% 
$4.29M
SC 
$0.0113 
↑3.3% 
$3.78M
WAVES 
$10.304 
↑10% 
$3.76M
NANO 
$6.0203 
↑16% 
$3.59M
YFI 
$36385. 
↑8.8% 
$3.55M
ZEC 
$131.65 
↑3.6% 
$3.33M
FIL 
$37.762 
↑6.3% 
$3.21M
COMP 
$452.55 
↑18% 
$2.38M
OXT 
$0.5371 
↑8.4% 
$2.12M
ETC 
$12.339 
↑8.4% 
$2.07M
LSK 
$3.1380 
↑18% 
$1.93M
KAVA 
$3.7965 
↑17% 
$1.57M
MANA 
$0.2622 
↑13% 
$1.53M
REP 
$35.637 
↑22% 
$1.49M
CRV 
$2.2995 
↑7.7% 
$1.45M
KNC 
$1.7123 
↑6.8% 
$982K
MLN 
$41.951 
↑12% 
$834K
PAXG 
$1804.9 
↓0.2% 
$778K
KEEP 
$0.3739 
↑10% 
$710K
STORJ 
$0.6370 
↑12% 
$670K
ANT 
$4.7319 
↑10.0% 
$576K
BAL 
$40.659 
↑16% 
$568K
GNO 
$141.23 
↑11% 
$508K
REPV2 
$26.630 
↑8.9% 
$274K
TBTC 
$54060. 
↑9.8% 
$244K


#####################. Trading Volume by Asset. ##########################################

Trading Volume by Asset


The figures below break down the trading volume of the largest, mid-size, and smallest assets. Cryptos are in purple, fiats are in blue. For each asset, the chart contains the daily trading volume in USD, and the percentage of the total trading volume. The percentages for fiats and cryptos are treated separately, so that they both add up to 100%.

Figure 1: Largest trading assets: trading volume (measured in USD) and its percentage of the total trading volume (February 24 2021)

Figure 2: Mid-size trading assets: (measured in USD) (February 24 2021)

Figure 3: Smallest trading assets: (measured in USD) (February 24 2021)


#####################. Spread %. ##########################################

Spread %


Spread percentage is the width of the bid/ask spread divided by the bid/ask midpoint. The values are generated by taking the median spread percentage over each minute, then the average of the medians over the day.

Figure 4: Average spread % by pair (February 24 2021)



.


#########. Returns and Volume ############################################

Returns and Volume


Figure 5: Returns of the four highest volume pairs (February 24 2021)


Figure 6: Volume of the major currencies and an average line that fits the data to a sinusoidal curve to show the daily volume highs and lows (February 24 2021)



###########. Daily Returns. #################################################

Daily Returns %


Figure 7: Returns over USD and XBT. Relative volume and return size is indicated by the size of the font. (February 24 2021)



###########. Disclaimer #################################################

The values generated in this report are from public market data distributed from Kraken WebSockets api. The total volumes and returns are calculated over the reporting day using UTC time.

Source: https://blog.kraken.com/post/8041/kraken-daily-market-report-for-february-24-2021/

Continue Reading

Blockchain

India’s largest crypto exchange adopts decentralized Unstoppable Domains

Republished by Plato

Published

on

India’s largest cryptocurrency exchange, Unocoin, has adopted the blockchain-based Unstoppable Domains, which simplifies crypto transactions by turning blockchain addresses into human-readable web URLs.

Announced on Wednesday, the partnership between Unocoin and Unstoppable Domains — both funded by Silicon Valley investor Tim Draper — is expected to reduce remittance costs and simplify the transaction process for the exchange’s 1.2 million users.

Unstoppable Domains turns crypto addresses into decentralized websites on the Ethereum and Zilliqa blockchains. Instead of sending coins to a 42-character blockchain address, Unstoppable Domains allows users to create simple URLs ending in “.crypto” and “.zil” extensions. Domain names need only be purchased once, and then exist forever on the blockchain without requiring any renewal or maintenance fees.

The decentralized aspect of Unstoppable Domains should be of particular interest to Indian crypto users, especially amid the furor created by the Finance Ministry’s decision to ban the use of Bitcoin (BTC) and other cryptocurrencies.

Pushback against the country’s plan to outlaw cryptocurrency has emerged on social media in the form of the #IndiaWantsBitcoin campaign. Despite regulatory uncertainty, the co-founder and CEO of Unocoin, Sathvik Vishwanath, sees the adoption of Unstoppable Domains as being in line with the maturation of the crypto industry in India. Vishwanath said:

“The cryptocurrency space is maturing. In line with the growth of the industry, Unocoin aims to offer its users the best possible experience. Integrating the .crypto domain is a significant step not only for Unocoin users, but also for additional exchanges in the country exploring simpler and more user-friendly options for their users.”

Unstoppable Domains co-founder Brad Kam referenced the reluctance of the Indian government to allow the spread of cryptocurrency within its borders:

“India’s population has been historically scorned from cryptocurrency. Unstoppable Domains is excited to deliver the seamless sending and receiving of cryptocurrency to Unocoin’s users. Our aim is to simplify cryptocurrency addresses, and establish human readable names as the domain standard across wallets and exchanges.”

On Wednesday, Reserve Bank of India Governor Shaktikanta Das reiterated the central bank’s intention to create its own centrally issued currency, the digital rupee. This follows a common trend that has emerged in recent years as national governments attempt to reign-in the spread of decentralized cryptocurrencies and replace them with digital versions of existing fiat currencies.

As reported by Cointelegraph, Unstoppable Domains was recently integrated into Cloudflare’s Distributed Web Resolver, meaning any web browser can now access the .crypto URL extensions.

A spokesperson for Unstoppable Domains confirmed to Cointelegraph that even if Unocoin were to be shut down in the near future, the addresses and URLs created through the platform would remain unaffected.

Source: https://cointelegraph.com/news/india-s-largest-crypto-exchange-adopts-decentralized-unstoppable-domains

Continue Reading

Blockchain

DEX volumes have already surpassed $120b in 2021

Republished by Plato

Published

on

Ethereum-powered decentralized exchanges, or DEXes, continue to surge despite high transaction fees — with DEXes processing more than $120 billion in 2021 so far.

According to Ethereum market analytics platform Dune Analytics, combined DEX volumes posted a new record of $63 billion in January. February’s volume currently sits at $59 billion and is on track to hit $67 billion at the month’s end.

DEXes have already processed more volume in the first two months of 2021 than during all previous years combined.

Monthly DEX volume: DuneAnalytics

The Ethereum-powered DEX sector is still dominated by Uniswap and Sushiswap, who account for 65% of February’s trade combined. Uniswap currently represents more than double Sushi’s volume, controlling almost 50% of DEX market share.

However, looking at the weekly number of active traders on each platform shows that Uniswap represents more than three-quarters of Ethereum DEX users. Over the last seven days, nearly 142,000 unique wallets traded on Uniswap, followed by decentralized exchange aggregator 1inch with roughly 18,450 traders, and SushiSwap with 8,911.

However, not all DEX trading activity is occurring on Etheruem, with Binance Chain’s Pancake Swap surging to report a daily trading volume behind of more than $1.1 billion.

Despite some users migrating away from Ethereum-based DEXes, confidence in the sector as a whole is at an all-time high, with the total value locked in these exchanges sitting above $40 billion for the first time during recent weeks.

Source: https://cointelegraph.com/news/dex-volumes-have-already-surpassed-120b-in-2021

Continue Reading
Blockchain2 days ago

Ankr adds Eth2 futures (fETH) to its staking system

Blockchain5 days ago

Are Bitcoin’s long-term hodlers entering the seller’s market?

Blockchain4 days ago

Elon Musk Explains to Peter Schiff What Money Is

Blockchain3 days ago

Ripple now registered as a Wyoming business

Blockchain4 days ago

Litecoin, Cosmos, Tezos Price Analysis: 21 February

Blockchain3 days ago

Former BoE, BoC Governor Mark Carney joins Stripe board of directors

Blockchain4 days ago

A Review of BTCGOSU — Reviewer of Crypto Casinos

Blockchain3 days ago

Kraken Daily Market Report for February 21 2021

Blockchain3 days ago

DeFi Protocol Primitive Finance Self Hacks to Prevent Exploit

Blockchain2 days ago

Peter Schiff Now Discusses Bitcoin More Often Than His Beloved Gold

Blockchain3 days ago

The Many Theories Of Elon Musk Being Satoshi Nakamoto

Blockchain4 days ago

Is Ethereum heading to another ATH?

Blockchain2 days ago

Long Blockchain Corp has officially been delisted by SEC

Blockchain2 days ago

NFT Platform Ethernity to Launch IDO on Polkastarter

Blockchain4 days ago

3 key factors that propelled Ethereum to $2,000 for the first time ever

Blockchain4 days ago

Banks will be required to work with crypto, e-money and CBDCs to survive

Blockchain4 days ago

Kraken Daily Market Report for February 20 2021

Blockchain5 days ago

Bitcoin Payments Make 20% of the Revenue of a UK Private Jet Company

Blockchain4 days ago

Today 11:40 am EST: First Bitcoin Elite NFT Art Drop

Blockchain2 days ago

MoneyGram suspends Ripple partnership, citing SEC lawsuit

Trending