In a press release today, C.R.E.A.M. Finance announced a new feature for (and, by proxy, an unofficial relaunch of) Iron Bank, the protocol-to-protocol lending platform designed for flash and undercollateralized loans.
C.R.E.A.M., which founder Leo Cheng describes as “the yolo-est Compound fork,” is a money market designed to cover assets that are “underserved” and allow for greater capital efficiency for decentralized finance power users, listing assets such as Yearn vault tokens and liquidity pool tokens.
“We’re adding assets that people want to have but others may be scared of,” said Cheng.
Iron Bank is, in many ways, an extreme implementation of that ethos. The protocol, which allows for undercollateralized protocol-to-protocol lending, is meant to serve as DeFi’s equivalent of the $10-trillion corporate debt industry, allowing the principle of “corporate credit” to function between whitelisted protocols.
Some critique the idea conceptually — undercollateralized lending is still an exotic niche in DeFi — and those critics took a victory lap in the wake of the Alpha Homora hack that led to an exploit of Iron Bank. This despite Iron Bank bearing little responsibility for the vulnerability, and the fact that the Iron Bank has quietly continued to function across multiple Yearn vaults for months — though not nearly at the scale to which it’s capable.
Now, with a new feature release and Alpha Homora gearing up for a relaunch of its V2, Iron Bank is ready to reenter the spotlight — and it may be poised to do so in a major way.
Cheng speaks with a touch of pride about C.R.E.A.M.’s status as a member of “DeFi Voltron” — the body of high-profile protocols that “merged” with or were “acquired” by the Yearn.finance ecosystem at the end of last year.
What started as a casual conversation about getting DeFi maestro Andre Cronje involved in the project quickly became a team-level integration between Yearn and C.R.E.A.M., said Cheng. To this day, the practicalities of the integrations/mergers/collaborations between the protocols largely remain a mystery to outsiders, and as a recent rupture with Cover has demonstrated, the “mergers” are not always etched in stone.
In Cheng’s view, right now, the various projects/protocols can be thought of as the pre-Constitutional United States: Separate state-level entities are linked through the Articles of Confederation, and each leverages its own currency.
He hinted that one day it might be a “possibility” that all tokens under the Yearn banner merge to create a single, unified token.
“I’m not saying that’s where we’re headed, but I think it’s a possibility in the long run — I don’t know.”
C.R.E.A.M’s purpose in the Yearn DeFi Voltron machine is to be the one-stop all-things-lending solution, and as the Iron Bank proves, lending is a wide umbrella. While Iron Bank can be difficult to grasp conceptually, ultimately what it creates is simple capital efficiency, said Cheng.
“Look at the anatomy of a flash loan,” said Cheng.
A flash loan might interact with multiple protocols at once and trade between multiple assets, but Ethereum “doesn’t quite care, and it doesn’t quite see the borders with the smart contract projects.” They jump between protocols and assets in a “flash,” enabled by open liquidity.
If this borderless vision is taken to its extreme, “any asset a user has on Ethereum, they should be able to leverage it to borrow anything else anywhere else,” and if liquidity can be achieved through an arbitrage trade via a flash loan, that alone counts as a form of asset — at least in an ideal, capital-efficient future.
Iron Bank brings this principle of open liquidity to protocol-to-protocol relationships. Cheng said that C.R.E.A.M. is looking into working with projects, such as Saffron Finance, which are developing risk-based tranched debt. If users think that Iron Bank debt is riskier (especially at the upper end of its possible leverage, up to 95x), Saffron has the infrastructure to support that.
What’s more, Cheng said that C.R.E.A.M is working to expand the horizons of liquidity even to other chains.
Capital efficiency squared
If Ethereum doesn’t care about the borders between assets and protocols, then why can’t the same liquid efficiency logic apply to all Ethereum Virtual Machine-compatible chains? This would allow for loans, undercollateralized loans and flash loans across multiple ecosystems, bolstering liquidity across the space.
“Cross-chain lending. That’s the thing where people stop and say, ‘wait, hold on, what?’” Cheng laughed. “That’s something we’re prototyping right now. It’s not something on the roadmap, blah blah, we’re prototyping it right now.”
In its early form, users would be able to deposit assets on C.R.E.A.M.’s V1 and unlock a loan on another chain, allowing them to access an alternative ecosystem while maintaining their assets on Ethereum. The more exotic lending types will come later.
The problems in creating ideal, safe capital efficiency across all EMV-compatible chains are significant, but they’re currently being worked through, said Cheng. Eventually, the goal is to enable Yearn vaults to go cross-chain via a “generalized wrapper,” which could expand the tools available to vault strategists by orders of magnitude.
It’s a vision of open liquidity and capital efficiency enabled, in part, due to an open developmental ethos across the DeFi Voltron:
“We have so many channels open. If you had my Telegram open… so many working groups. I think that story is underplayed. The whole idea of this merger, it’s so powerful — we can hop in these channels at any time, ask each other anything. It’s letting us move so quickly.”
More Crypto Gains, Less Carbon Emissions: Platform Plants Trees for Every Trader
By now you’ve probably already heard the scary headlines…
“Bitcoin is killing the polar bears!” – anon
Heads Up: If you aren’t ready to save the world, skip to the end of this article to get yourself access to some awesome trading signals and tools for free.
According to the Cambridge Center for Alternative Finance (CCAF), Bitcoin sucks up around 147 Terawatt Hours per year — 0.68% of global electricity production. In more easy to understand terms that’s around the same power usage as the entire country of Sweden, or Poland.
But is it that simple? No.
The reality is that yes the cryptocurrency industry is eating up a lot of power. But the same can be said for almost anything.
If you don’t enjoy Formula 1 racing, you might be tempted to say that it’s a total waste of time, money and a pointless contributor towards rising sea levels and climate change.
Whether or not Bitcoin is worth the environmental/energy cost is up for debate in much the same way.
Why care? Underwater trading is not fun!
Let’s go ahead and say we agree with scientific consensus that global warming is bringing us towards a period of extreme climate change and rising sea levels. Many island nations and countries with coastline are at risk including the densely populated cities such as London, UK.
If you already lose sleep over trades that are sat underwater for a few hours, it’s probably safe to assume that you aren’t going to have a good time if you need scuba gear to degen long your favourite alts a few years from now!
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And take interstellar voyages to VENUS…
Great gains are awesome, but we wanted to help traders all around the world reduce their carbon footprint without needing compromise on their trading performance.
We’ve decided to team up with One Tree Planted in an effort to stem the Earth’s bleeding.
Here’s the bottom line: For every user on our platform, every month we will be planting one Tree!Check out our blog post to find out how you can improve your trading game, make some great gains and start planting some trees now!
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We recently created the ‘ProfitFarmers Moon Bag’, free for serious traders. It’s a selection of our advanced tools and scanners as well as market intel and premium signals.
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Source :- Plato
Chinese officials warn about risks associated with crypto trading.
Chinese officials warned the public about the risks associated with trading cryptocurrencies. The authorities pointed out three major considerations which might harm investors – false transactions, security breaches, and illegal and criminal activities involving cryptocurrencies. According to the China Financial Stability Report, investors should be extra vigilant when operating with bitcoin and other cryptocurrencies. Officials from China Securities Journal have called for better regulation and pointed out major risks involving crypto trading.
“Cryptocurrencies lack supervision and legal protection.”
Cryptocurrencies are highly decentralized, which means they lack supervision and legal protection. According to the journal, this is a huge disadvantage and can cause price manipulation and false transactions. Another concern that Chinese officials expressed is that the price of most cryptocurrencies, including bitcoin, can easily become an instrument for speculation and can go through sharp declines.’ The report also noted that the movement of funds on blockchain technology is difficult to be observed. This can create an excellent environment for money laundering. Additionally, illegal and criminal activities can also thrive with these conditions as lawbreakers have the opportunity to make drugs or gun transactions using cryptocurrencies.
“There are no legal crypto trading venues in the country and no regulatory protections.”
The Chinese authorities advised that the crypto community must stay alert to prevent these hazards due to these factors. Furthermore, China Securities Journal reminded that there are no legal crypto trading venues in the country and no regulatory protections.” Once you encounter risks, you can only bear the consequences. In short, speculation in coins is risky, and you need to be cautious when entering the market,” the report noted. However, despite the Chinese government’s stance, the leading cryptocurrency bitcoin is highly popular in China – there’s a high number of miners situated in the large Asian nation.
China Securities Journal Says Cryptocurrency Trading Is Risky and Calls for Strict Supervision
Chinese officials warned the public about the risks associated with trading with digital assets. The authorities pointed out three major considerations which might harm investors – false transactions, security breaches, and illegal and criminal activities involving cryptocurrencies.
Tighter Regulations on Crypto Trading
According to the China Financial Stability Report, investors should be extra vigilant when operating with bitcoin and other crypto assets. Officials from China Securities Journal have called for better regulation and pointed out three major risks that trading with digital assets may carry.
First, digital assets are highly decentralized, which means they lack supervision and legal protection. According to the journal, this is a huge disadvantage and can cause price manipulation and false transactions.
Second, the price of most cryptocurrencies, including bitcoin, can easily become an instrument for speculation and can go through sharp declines.’
Third, the movement of funds on blockchain technology is difficult to be observed. This can create an excellent environment for money laundering. Additionally, illegal and criminal activities can also thrive with these conditions as lawbreakers have the opportunity to make drugs or gun transactions using cryptocurrencies.
The Chinese authorities advised that due to these factors, the crypto community must stay alert to prevent these hazards. Furthermore, China Securities Journal reminded that there are no legal crypto trading venues in the country and no regulatory protections:
”Once you encounter risks, you can only bear the consequences. In short, speculation in coins is risky, and you need to be cautious when entering the market.”
China and BTC
Despite the government’s stance, the primary cryptocurrency is highly popular in China – there’s a high number of miners situated in the large Asian nation.
Recently, the country’s central bank announced that it was looking into bitcoin as an alternative investment. Zhou Xiaochuan, former governor of PBoC, outlined the potential of digital assets and their future implementation. However, he ascertained that whatever the case may be, cryptocurrencies must not be used for illicit activities such as drug or weapon trafficking, gambling, or money laundering:
”We believe that crypto assets should play a major role in the future, either as an investment tool or as an alternative investment. Many countries, including China, are also studying it as an investment tool.”
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