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Iron Finance Denies Rug Pull After Token Collapse

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Iron Finance Denies Rug Pull After Token Collapse | Crypto Briefing


















TITAN, Iron Finance’s governance token, entered a death spiral due to intense market selling last night.


Shutterstock cover by Chere

Key Takeaways

  • Iron Finance’s TITAN, which backs the algorithmic stablecoin IRON, collapsed after a massive selloff last night.
  • The price crash likely occurred because of IRON’s pegging mechanism depending on arbitrage.
  • The team has denied allegations of a rug pull, and will let IRON holders redeem the stablecoin for USDC.

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Iron Finance’s governance token completely collapsed last night. According to the team, the project’s TITAN token suffered from a bank run after users were urged to remove liquidity from all pools.

Iron Finance Under Fire

Iron Finance, a DeFi project that issues a partially collateralized algorithmic stablecoin called IRON, has suffered a major incident.

TITAN, the governance token that backed IRON, collapsed last night due to a massive selloff. The token price crashed from around $60 to $0.00000006, as per data from CoinGecko. Meanwhile, the IRON stablecoin is trading at around $0.70 (stablecoins like IRON are meant to stay pegged to an asset—in this case, that’s the dollar).

The stablecoin was backed by USDC and TITAN in portions of 75% and 25%. Iron Finance launched on Polygon less than a month ago and quickly attracted over $2 billion in liquidity.

It is still not clear what was the reason behind a near-zero price collapse. Many have speculated that the crash could have been due to a “rug pull,” a situation where project founders make off with the users’ funds locked in smart contracts. However, the team denied these claims. On its website, it wrote:

“There is no hacks, no exploits or rug-pullings.”

To incentivize USDC staking in its liquidity pools, the project had offered yields up to 10,000% APY in TITAN tokens. The yield caught the attention of Shark Tank entrepreneur-turned-DeFi enthusiast Mark Cuban, who revealed that he was farming TITAN in a blog post earlier this week. Cuban tweeted that he “got hit like everyone else” last night.

The Likely Cause

TITAN may have crashed due to the stablecoin pegging mechanism. When the price started declining, IRON lost its dollar peg. Like other algorithmic stablecoins, the price should have restored once the pegging mechanisms had come into play. But, the situation spiraled out of control.

According to the protocol’s pegging system, whenever the price of the IRON token is less than one U.S. Dollar (USD), anyone can buy the token and redeem it for $1 worth of value, divided into $0.75 of USDC and $0.25 of TITAN.

While this arbitrage mechanism was meant to be the peg for IRON, it was likely the cause of the crash. Yesterday, when the stablecoin was trading under a dollar, arbitrageurs bought and redeemed IRON at a cheaper price. The TITAN tokens were continuously sold on the open market, causing the price collapse.


Furthermore, as people tried to redeem more IRON, panic spread, and this led to a bank run, meaning everyone tried to redeem their IRON tokens at the same time. The sell pressure continued until TITAN’s price fell to almost zero.

This issue was pointed out by Millenial Finance’s lead developer, z80Ðev, a few days ago. They wrote:

Iron Finance said that it would publish a post-mortem after it has a better understanding of what caused the sudden collapse. Regardless of TITAN going to zero, Iron Finance’s vaults still contain more than $200 million worth of USDC. The team has promised it would allow IRON holders to redeem $0.748 worth of USDC per token from this evening.

This news was brought to you by ANKR, our preferred DeFi Partner.

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Source: https://cryptobriefing.com/iron-finance-denies-rug-pull-after-token-collapse/

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Velas Launches $5 Million Funding Program

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Press Release: Velas is proud to announce the launch of a $5 million funding program to support the growth of the Velas ecosystem and expand our reach in the new Web 3.0 epoch

3rd August, 2021, Zug, Switzerland  – Today Velas are announcing the launch of a major funding program for projects to build upon the Velas Blockchain, driving innovation to the fastest blockchain on the planet — to the tune of $5 million total.

Velas are inviting projects and developers to join their ecosystem of user-friendly, transparent and privacy-respecting products built on top of the Velas blockchain. Just port code from Ethereum, or develop on their native chain, to deploy applications within minutes.

For full technical details on the Velas Funding Program, click HERE.

Investments – What Can Participants Submit?

Investment sizes can be up to $100,000 per project. The general Grant Program is designed to fund projects covering a wide range of topics, including, but not limited to:

  • DeFi-related and DEX-related products
  • NFT-related solutions
  • Games and gaming – Including Educational, AI/VR/AR, Crypto Gamification, Strategies, Collectibles, Card Games, etc
  • dApps that unite the Velas blockchain with traditional sectors — Banking, Healthcare, etc.
  • Adoption of dApps that aid the adoption of cryptocurrencies and blockchain.

Velas will also actively encourage developers to create solutions that increase decentralization and transparency within the Velas Ecosystem. All projects will be tracked on GitHub – Teams can apply for grants more than once, but they need to successfully complete their previously allocated project before receiving additional funds.

Investment Criteria

Interested in applying for the grant? Check out the investment criteria below:

  • Goal(s) and scope of the project, plus outline of how the fund will be used
  • Business plan/whitepaper
  • Technical features and value proposition
  • An executive summary and pitch deck
  • Background and experience of the team
  • Go to market strategy and user acquisition plan
  • The project, timelines, targeted deliverables at each milestone, and estimated efforts to deliver on the plans provided
  • How the project benefits the Velas ecosystem
  • Amount of funding requested and payment method
  • Project or product/ service must be built on the Velas blockchain
  • All code must be open-source, and must not rely on closed-source software for full functionality.

Velas take licensing and copyright compliance very seriously. Using others’ work without attribution or indicating that work is not original will lead to immediate termination. Users should contact Velas before submitting if they have any doubts about licensing matters. 

Benefits

  • Recruiting – Velas assists startups to hire Top Tier talent.
  • Networking – Velas assists startups with connections to investors, funds and accelerators.
  • Marketing – Velas assists startups in engaging with key exchanges, finding opinion leaders, and building viral marketing campaigns.
  • Grants – Velas provides grants for the creation of new tools and projects.
  • Technical – Velas’ experienced developers will assist with the technical side of startup projects.
  • Research – Velas assists startups with all necessary research before going to market to explore new opportunities.

Applying for the Velas Grant

To apply for the Velas Grant Program, fill out an application form. Team applications should be submitted by one representative for the project, containing up-to-date contact information, experience, and the portfolio of all team members who would be involved in working on the task. Application forms will be reviewed within 14 working days and selection results will be sent to the email provided during the application. If a proposal is successful, further communication will be required to determine specific details around timelines and payment schedules. Feedback will occur throughout the grant process.

For further information and FAQs, please check out the official Velas docs page here.

Velas are proud to welcome innovative and exciting new projects, products and services to the Velas family, and welcome a massive expansion in the usecase of the Velas Blockchain, taking advantage of the best-in-class TPS, throughput, and developer support. The Velas Funding Program helps push the Velas Blockchain to be the most attractive, powerful chain in the entire crypto sector.

For full technical details on the Velas Funding Program, click HERE.

Media Contact Details

Contact Name: Shirly Valge
Contact Email: [email protected]

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Source: https://bitcoinist.com/velas-launches-5-million-funding-program/?utm_source=rss&utm_medium=rss&utm_campaign=velas-launches-5-million-funding-program

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Square To Acquire Afterpay And Allow Bitcoin Purchases

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Jack Dorsey’s company Square has announced that it plans to acquire Australian technology company Afterpay. This was revealed in a press release that went out on August 1st. The press release showed that both companies had entered into what is known as a Scheme Implementation Deed.

Square plans to acquire all of the issued shares in Afterpay. And this will be done by a recommended court-approved Scheme of Arrangement. The total value to be paid for Afterpay came out to $29 billion. This was based on the closing price of Square’s common stock on July 30, 2021, which had a strong close.

Related Reading | Robinhood IPO’d: Here’s Why You Should Move Your Crypto Out Of Robinhood ASAP!

Following the purchase, Square plans to integrate Afterpay with its existing apps. Then the payments app will start offering Bitcoin purchases for Afterpay users. The integration will also see Afterpay’s co-founders and Square’s co-CEO working together to lead Afterpay’s businesses in the Square ecosystem.

The all-stocks deal is slated to be finalized in 2022.

The CEO of Square, Jack Dorsey, said “Square and Afterpay have a shared purpose. We built our business to make the financial system more fair, accessible, and inclusive. And Afterpay has built a trusted brand aligned with those principles.

What Is Afterpay?

Afterpay is a service that allows you to buy and pay for things over a period of time. All the while offering zero interest on these purchases.

Users can pay for items in four payments, which are stretched out over two months. Payments are made every two weeks by the users until the price for the item is complete. And do not have to worry about interest rates being added to the purchases since there is none.

Related Reading | This New Partnership Will Allow Litecoin Users To Checkout At One Of The Largest U.S. Retailers

The only additional payments that the payment service charges are late fee payments. Which are only implemented when customers do not pay the specified amount on the day it is due.

As of June 2021, Afterpay reportedly had over 16 million. The buy now, pay later giant has continued to report record sales in 2021. In the first quarter, Afterpay had reported a record $10 billion in sales.

Bitcoin Purchases And Benefits

The acquisition by Square will provide Afterpay users all of the benefits currently available to Cash App customers. Things like money transfer, stock purchases, bitcoin purchases, cash boost, and more will be available on the platform.

Bitcoin price chart from TradingView.com

Bitcoin price falls below $40,000 | Source: BTCUSD on TradingView.com

These will be in addition to the services already being offered by Afterpay to its customers. Square hopes to accelerate its strategic priorities for its Seller and Cash App ecosystems using Afterpay. Which Square referred to as “the pioneering global ‘buy now, pay later’ (BNPL) platform.”

The integration will help bring buy now, pay later (BNPL) capabilities to even the smallest merchants. While customers will be able to manage their installment payments using Cash App. Also giving Cash App customers the option to use buy now, pay (BNPL) from the app.

Featured image from Blockchain News, chart from TradingView.com

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Source: https://bitcoinist.com/square-to-acquire-afterpay-and-allow-bitcoin-purchases/?utm_source=rss&utm_medium=rss&utm_campaign=square-to-acquire-afterpay-and-allow-bitcoin-purchases

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Eden to Protect Sushi Traders from MEV on Ethereum

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The information on or accessed through this website is obtained from independent sources we believe to be accurate and reliable, but Decentral Media, Inc. makes no representation or warranty as to the timeliness, completeness, or accuracy of any information on or accessed through this website. Decentral Media, Inc. is not an investment advisor. We do not give personalized investment advice or other financial advice. The information on this website is subject to change without notice. Some or all of the information on this website may become outdated, or it may be or become incomplete or inaccurate. We may, but are not obligated to, update any outdated, incomplete, or inaccurate information.

You should never make an investment decision on an ICO, IEO, or other investment based on the information on this website, and you should never interpret or otherwise rely on any of the information on this website as investment advice. We strongly recommend that you consult a licensed investment advisor or other qualified financial professional if you are seeking investment advice on an ICO, IEO, or other investment. We do not accept compensation in any form for analyzing or reporting on any ICO, IEO, cryptocurrency, currency, tokenized sales, securities, or commodities.

See full terms and conditions.

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Source: https://cryptobriefing.com/eden-to-protect-sushi-traders-from-mev-ethereum/

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