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Freeliquid Protocol – a Platform to Support Liquidity Pools as Collaterals

Freeliquid Protocol - a platform to provide liquidity pools as collaterals (BTC MANAGER)

Freeliquid Protocol - a platform to provide liquidity pools as collaterals (BTC MANAGER)The largest event in the crypto space of 2020 has been the emergence of DeFi, providing solutions and access to financial services for everyone. Among many services that DeFi offers, lending crypto assets has become one of the major sectors of the industry. A new player on the market, the Freeliquid Protocol, offers loans in

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The largest event in the crypto space of 2020 has been the emergence of DeFi, providing solutions and access to financial services for everyone. Among many services that DeFi offers, lending crypto assets has become one of the major sectors of the industry. A new player on the market, the Freeliquid Protocol, offers loans in USD stablecoins for providing stablecoin liquidity pools as collateral. This set up to be a major breakthrough, since supporting stablecoins as security for the loan guarantees safety both for the lending service and the borrowers.

Freeliquid Protocol Overview

Freeliquid Protocol was launched on 21 December 2020. Being an open-source platform built on the Ethereum blockchain, it is a fork of MakerDAO, another well-trusted lending service. Similar to Maker, Freeliquid has two native tokens: the USD stablecoin USDFL and the governance token FL. There are three main components of Freeliquid: Borrow, Reward, and Save, which are all accessible through their web app at freeliquid.io. 

Freeliquid Borrow

The USD Freeliquid (USDFL) is an ERC-20 stablecoin that is soft pegged to one US dollar and backed by user-provided collaterals. It is the main currency of the protocol and serves as a medium of exchange and an efficient store of value with a stable market price. It is easy to hold as well as transfer using cryptocurrency wallets. Like many other ERC-20 tokens, it is tradeable on decentralized exchanges as well.

The Freeliquid Borrow allows users to lock their crypto assets in the form of liquidity pools as collateral to borrow USDFL stablecoins. It is done by setting up Freeliquid Vaults, which are smart contracts that generate USDFL after users lock their collaterals in Freeliquid Borrow and issue a loan. At the moment, Freeliquid Borrow supports Uniswap pools consisting of the following stablecoins: USDT, USDC, DAI, and USDN. More collateral types and platforms can be added later if the community approves them through the voting. 

Users have the ability to borrow USDFL up to 90% of the collateralized asset value. The loans do not require a third-party approval and users are not bound by any date until which the repayment has to be made. Loans can be issued and covered instantly and at any time.

The received funds in USDFL are in full control of users and can be traded freely. For example, this might include creating another pool on Uniswap, almost doubling the original passive income from liquidity fees.

Freeliquid Save

Freeliquid Save is a savings program that earns interest for USDFL holders. Users can lock their USDFL in Freeliquid Save and receive constant payments, also in USDFL, accrued to their balance. The funding for Freeliquid Save comes from the interest charged for the loans in Freeliquid Borrow, so there is no inflation of USDFL involved. The user balance is updated constantly and can be claimed all at once for the whole past period. Similar to Freeliquid Borrow, the USDFL tokens can be locked and unlocked with no penalties . 

Freeliquid Governance

FL is the governance token of the platform and its holders can participate in the governance of the project through voting. The token can be easily stored and transferred to any ERC-20 wallet. During the first three months of Freeliquid, users are rewarded for providing liquidity pools for the USDFL-FL pair. 

FL token distribution

The FL distribution is based on the Fair Launch model that ensures an even distribution of tokens. There has been no ICO or private sale of FL, instead, the governance tokens will be distributed to users that support liquidity of the native Freeliquid tokens. The four reward programs are as follows:

Day 1 to 10, an allocation of 100,000 FL – In the first 10 days, 100,000 FL will be distributed to users who lock their liquidity pools with any pair consisting of the following stablecoins: USDT, USDC, DAI, USDN. The rewards will be based on the user’s share in the total value of assets locked on Freeliquid Borrow.

Day 11 to 100, an allocation of 400,000 FL– the second program rewards users that support liquidity of the FL token. Rewards are distributed to users who add to the USDFL-FL liquidity pair on Uniswap and lock their LP tokens in Freeliquid Reward.

Day 11 to 381, an allocation of 450,000 FL – the third program rewards users that support liquidity of the USDFL token. Rewards are distributed to users who add to the USDFL liquidity pairs with stablecoins on Uniswap and lock their LP tokens in Freeliquid Reward.

Day 1 to 712, an allocation of 50,000 FL – the fourth program will run for 712 days and incentivize the use of Oracles for price updates (i.e., the Oracles transaction initiators). 

Advantages of the Freeliquid Protocol

  • The protocol allows the users to get USD stablecoins by locking liquidity pools as collaterals. This allows investors to get access to additional funding and to increase the size of the existing liquidity pools. The funds can also be used for several other purposes including trading and yield farming. Effectively, users can turn their liquidity pools into sources of extra funding, increasing their profits with almost no risk.
  • Support of stablecoin pools (as opposed to volatile crypto assets) has another two major advantages. First, it enables to issue a high amount of funds (up to 90%) for the collateral provided. Second, there is no risk of a liquidation of the user position – the value of security always stays above the liquidation threshold. For this reason, the liquidation module of the Freeliquid Protocol is completely switched off for stablecoin pairs.
  • The FL governance token being issued through the Fair Launch model. This prevents anyone from accumulating large positions FL tokens, potentially outvoting the rest of the community or selling them at once, resulting in a sudden price fall of FL.
  • The project will grow together with the DeFi market as more liquidity pairs and platforms are supported on Freeliquid.
  • The use of Freeliquid is completely anonymous. Everyone can fully access Freeliquid by simply connecting a personal Ethereum wallet. There is no need to register with an email or go through the KYC process.
  • The smart contracts of the Freeliquid Protocol has been recently audited by Beosin Blockchain Security, one of the leading auditing companies on the crypto market. The audit has been successfully passed on all items.

Stablecoin liquidity pools offer a great source of passive income with minimal risks to its holders. They also represent a perfect security, since lenders can be sure that the value of the collateral provided is not going to drop down significantly. However, no lending platforms so far have been supporting them as collateral  – until Freeliquid. By using the Freeliquid Protocol, liquidity providers can now take advantage of their assets. They simultaneously keep the passive income from liquidity fees and receive funding for their free usage – a great deal that is rare to see.

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Source: https://btcmanager.com/freeliquid-protocol-platform-liquidity-pools-collaterals/

Blockchain

$500K Bitcoin Donation Funneled to Groups Involved in US Capitol Riot: Analysis

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Blockchain intelligence firm Chainalysis has tracked simultaneous Bitcoin (BTC) donations to wallets associated with right-wing extremist groups in the U.S., which might have helped fund the recent riot at the U.S. Capitol. The news marks yet another pivot towards pseudonymous money transfer means by alt-right groups in the U.S.

Alt-Right Agitators Received $500K in Bitcoin Prior to US Capitol Riot

Publishing its findings on Thursday (Jan. 14, 2021), Chainalysis revealed that several notable alt-right personalities who were present at the Jan. 6 riot in the U.S. Capitol received substantial Bitcoin donations.

According to Chainalysis, a single donor funneled 18.15 BTC to addresses belonging to entities with right-leaning affiliations on Dec. 8, 2020. At the time, this figure was worth over $500,000.

In its report, Chainalysis also revealed that popular far-right political commentator Nick Fuentes received 13.5 BTC. There are a few photographic pieces of evidence placing Fuentes at the riot with a megaphone in hand though Fuentes has denied entering the building itself.

Apart from him, alt-right podcaster Ethan Ralph and VDARE — an anti-immigration organization — also received BTC sums from the donor. While Chainalysis did not reveal the identity of the person responsible for funneling the Bitcoin, the crypto forensics outfit did mention that there strong evidence that the donor is a French computer programmer.

An examination into the donor’s wallet shows that the person is likely an early Bitcoin adopter. Further investigation into the donor shows a history of donations to extremist causes with an alleged suicide note referencing known alt-right talking points.

Based on these findings, U.S. law enforcement officials are reportedly investigating possible links between the donations and the assault on the Capitol. Prosecutors also say that they are approaching the investigations from a counterterrorism and counterintelligence standpoint.

Financial Censorship Triggering Crypto Adoption

Alt-right groups receiving donations in Bitcoin is only the latest example of political and social groups with dissident ideologies embracing cryptocurrencies. Indeed, Bitcoin’s early history is somewhat intertwined with WikiLeaks especially after the establishment was cut off from mainstream funding sources.

Even countries facing economic sanctions are also adopting cryptocurrencies. Venezuela is a popular example, with the Maduro administration even creating its own oil-backed Petro “coin.”

Nations like Iran are actively supporting Bitcoin mining with tax breaks for BTC miners. As previously reported by CryptoPotato, the output from three power plants has been offered to miners in the country.

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Source: https://cryptopotato.com/500k-bitcoin-donation-funneled-to-groups-involved-in-us-capitol-riot-analysis/

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Blockchain

Bitcoin Faced First Major Correction In Current Bull Run: The Crypto Weekly Market Update

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This week was very intensive in the cryptocurrency market. It’s perhaps safe to say that it was among the most tumultuous ones we’ve had in the last few months.

Everything started calmly, and during the weekend, the price hit an all-time high value of $42,000. The excitement was short-lived, as immediately after that, bitcoin went in the opposite direction and started to decline. It wasn’t until Monday, however, when things took a turn for the worst.

Bitcoin’s price lost around $12,000 in what seems to be the first major correction in the ongoing bull run. The decline of around 27% came in a few brutal four-hour red candles and led to the liquidations of $2.87 billion worth of both long and short positions, indicating once again how over-leveraged the market is.

From there, the price took uphill and even reached $40,000 again on Thursday. Bears, however, weren’t done as what followed was another handful of red candles that brought the price to its current trading level of about $35,000.

With this said, the entire cryptocurrency market took a hit as the capitalization has dropped below $1 trillion. Meanwhile, Bitcoin’s dominance is also suffering, as it’s down to 67.7% during this week from its high of around 70.3%. This shows that despite the blood on the streets, altcoins have managed to take the upper hand and claim a larger portion of the market.

Meanwhile, two other projects made headlines over the past few days, mainly thanks to their incredible price performance. Despite this brutal correction, Polkadot’s DOT token is up 40% over the last seven days, while LINK is up 22%. The latter even charted a new all-time high today.

In any case, the week was particularly exciting, and even though this time it was the bears who had the upper hand, it’s very interesting to see how the next few days will shape up. Is this the beginning of a larger correction, or is it just a step back in preparation for an even bigger rally? We have yet to see.

Market Data

Market Cap: $964B | 24H Vol: 144B | BTC Dominance: 67.7%

BTC: $35,442 (-14.6%) | ETH: $1,141 (-7.5%) | XRP: $0.276 (-12.9%)

Tether (USDT) January 15th Deadline on iFinex Case: Everything You Need to Know. Today is an important date for the entire cryptocurrency industry as it marks a serious deadline on the iFinex v. NYAG case. Here is everything you need to know about it and what to expect.

FinCEN Extends Comment Window on Proposed Crypto Regulations. After receiving thousands of responses and serious criticism from industry participants, the Financial Crimes Enforcement Network (FinCEN) has decided to extend the comment window on the proposed cryptocurrency regulations.

Following Coinbase And Bakkt: Winklevoss’ Gemini Reportedly Considers Going Public. Cameron and Tyler Winklevoss are reportedly exploring the option of taking their cryptocurrency exchange, Gemini, public. This means that they could follow in the footsteps of other cryptocurrency-related companies with similar intentions – namely, Coinbase and Bakkt.

Greenlight: Anchorage Secures Crypto Banking Charter from the OCC. The United States Office of the Comptroller of the Currency (OCC) has granted a cryptocurrency custodial service company a national trust charter. This puts the firm in the position to claim the mantle of a US-based national crypto bank.

4 Possible Reasons for Bitcoin’s $12K Correction After Reaching $42,000 All-Time High. Bitcoin went through its first major correction this week, sliding by more than 27% in just a few four-hour red candles. Here are some of the potential reasons for which this happened.

Crypto Market Cap Reclaims $1 Trillion as Bitcoin Sets Sights on $40K. The cryptocurrency market sees no boring days. Just a couple of days back, it was on its way back up, recovering from a major correction, and even claimed $1 trillion in market cap again. Unfortunately, today things took a turn for the worst again.

Charts

This week we have a chart analysis of Bitcoin, Ethereum, Ripple, Polkadot, and Cardano – click here for the full price analysis.

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Disclaimer: Information found on CryptoPotato is those of writers quoted. It does not represent the opinions of CryptoPotato on whether to buy, sell, or hold any investments. You are advised to conduct your own research before making any investment decisions. Use provided information at your own risk. See Disclaimer for more information.

Cryptocurrency charts by TradingView.


Source: https://cryptopotato.com/bitcoin-faced-first-major-correction-in-current-bull-run-the-crypto-weekly-market-update/

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Report: Mt Gox Creditors Could Claim 90% Of The Owned Bitcoins After A CoinLab Deal

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Nearly $5 billion in bitcoin could make their way back to Mt. Gox users following a deal between creditors and CoinLab. Nevertheless, the agreement is still reportedly subject to creditor acceptance.

  • Bloomberg reporter Matt Leising offered a brief explanation of the story earlier today, noting that CoinLab has reached a deal with Mt. Gox creditors for 90% of the bitcoins they are owned.
  • Should the deal indeed proceed, the creditors would receive over 135,000 bitcoins out of 150,000. With today’s prices, this sizeable amount has a value of $4.8 billion. 
  • As those users have been waiting for over six years to receive their coins, whose value has appreciated significantly, the community speculated that they might dispose of the bitcoins, which could harm the market.
  • Founded in 2011, CoinLab partnered with Mt. Gox in late 2012 to handle transactions for the exchange in the North American region. However, the collaboration ended rather shortly as CoinLab took Mt. Gox to court, alleging that the trading platform had broken its contractual agreement. 
  • The Japan-based crypto exchange was the largest trading platform years ago, responsible for over 70% of the BTC transactions during its peak. However, it all crumbled after one of the largest hacks in the cryptocurrency field in which the attackers took 850,000 bitcoins – worth over $30 billion today.
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Source: https://cryptopotato.com/report-mt-gox-creditors-could-claim-90-of-the-owned-bitcoins-after-a-coinlab-deal/

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