Blockchain

Liquid airdrops

Published

3 years ago

March 18, 2019

Republished by Plato

A lockdrop model with immediate liquidity, using Uniswap

Featured in Token Economy #91 (subscribe here)

Photo by Jong Marshes on Unsplash

Airdrops are coming back in vogue due to the regulatory uncertainty surrounding token sales.

Historically, the v1.0 model of airdropping tokens to random Ethereum addresses has proven to be largely useless. So teams are experimenting with new distribution models, particularly those teams that have raised private rounds and are now more nervous about a public sale despite getting closer to mainnet launch.

Livepeer pioneered Merkle mine, which has been widely dissected. Other teams are experimenting with variations of that ‘proof-of-work’ model. Edgewere is working on a lockdrop, whereby in order to get airdropped the EDG token one will have to lock up ETH into a smart contract for a certain period of time, after which the ETH gets unlocked (effectively giving up the opportunity cost of lending ETH on Compound/Dharma etc). DxDAO are planning something similar.

This post is a rough brain dump about a version of lockdrop that puts the idle ETH at work by leveraging Uniswap, a protocol for automated market making.

It roughly goes like this:

XYZ tokens available to be distributed are locked into a smart contract
smart contract can receive ETH contributions for up to a fixed period of time (contribution period)
after contribution period lapses, smart contract creates a market for XYZ/ETH on Uniswap and uses XYZ and ETH balances as liquidity pool
ETH contributors can withdraw ETH and XYZ from the smart contract proportionally to their ETH contribution, or keep earning a share of the trading fees from that market.

One potentially interesting aspect of this is the automated price discovery: a market price for the token is established without actually having to sell tokens or design a bonding curve. The total amount of ETH contributed during the contribution period sets the price of XYZ token in ETH terms (a potential issue here is ETH volatility during the contribution period). In that light, it could also work with a series of contribution periods, where the tokens are made available in subsequent chunks. So contributors in the second/third etc periods have a reference point on pricing. [Need to think more about this scenario].

The other interesting implication is obviously the immediate liquidity for the token enabled by Uniswap. In that light, the game theory is particularly intriguing. Many whom I’ve share this draft with raised the point that one would be incentivized to maximise the ETH contribution in order to get as many tokens as possible. However, for this actor to be able to then sell off the tokens and profit s/he would first have to withdraw most of the liquidity from the market, resulting in not enough liquidity to absorb the sale order. Imagine this actors contributed 99% of the ETH, he’d only be able to sell at best ~1% of this stash. Smaller ETH contributors on the other hand, if they knew there was a whale, would rush to sell the token, removing the incentive for whales to maximize contribution in the first place.

A few open questions remain:

Where would the equilibrium settle, if at all? Is there a chance no one ends up contributing for fear of others selling out before/to them?
Would the incentives change at all if ETH contributions were confidential until the contribution period lapses, as something like the Aztec protocol would enable?
On the more technical side, there’s the open question of how to distribute Uniswap liquidity shares back to ETH contributors from the smart contract that owns them. One way to achieve something similar could be for the smart contract to be a DAO agent interacting the Uniswap in the background and granting DAO shares back to the ETH contributors proportionally. Then there would be some governance around managing the liquidity and fees.
What are the regulatory implications of this model? Needless to say, PLEASE do not take this post as legal advice, I am not a lawyer!

Anyways, this is very rough and many details have not been thought true enough. But I thought I’d share to get some feedback before spending more time on it.

—

Thanks for the feedback Spencer Noon, Dillon Chen, Rob Bent, thibauld Favre, Richard Burton, Sowmay Jain, Patrick Mayr.

Source: https://tokeneconomy.co/liquid-airdrops-6df03114e172?source=rss—-fbbd350c08fc—4

Blockchain

Robinhood Testing New Cryptocurrency Wallet as Demand Rises

Published

16 mins ago

September 21, 2021

Republished by Plato

The millennial-focused trading portal is edging closer to launching a long-awaited app that will enable its growing user-base to send and receive cryptocurrencies.

A beta version of Robinhood’s iPhone app showed the company’s latest upgrades on the new digital asset features, according to Bloomberg.

There is a hidden image showing a waiting list for users eager to get their hands on the app and code referring to crypto transfers, it added.

Delving Deeper into Crypto

Robinhood users can already buy and sell cryptocurrencies on the platform but they need to convert them to and from USD. With a native app, users will be able to send crypto assets to each other directly and set up two-factor authentication for additional security.

Robinhood Chief Executive Officer Vlad Tenev stated that adding crypto wallets is a priority for the company’s developers and they are actively working on such.

“The ability to deposit and withdraw cryptocurrencies is tricky to do with scale, and we want to make sure it’s done correctly and properly.”

He did not specify a launch date, but the beta app leak suggests it is not too far away. Users of the new functions will need to activate crypto sending and receiving and the registration page will require an identity check, the report added.

On Sept. 11, CryptoPotato reported that Robinhood had launched incentives to promote longer-term cryptocurrency investing. The zero-fee recurring purchase feature enables users to schedule digital asset purchases for regular intervals with buys as low as a dollar.

This will encourage customers to build their cryptocurrency portfolios over time and “become a whole coiner,” stated Robinhood.

Robinhood Users Hungry For Crypto

Cryptocurrency trading has been one of the biggest drivers of revenue for Robinhood this year. Dogecoin has been the crown jewel, according to the company. It reported that 62% of its $233 million in second-quarter crypto income came from DOGE trading.

It added that more than half of all transaction-based revenue on the platform came from digital asset trading. The firm did warn that Q3 would not be as prosperous due to “seasonal headwinds and lower trading activity across the industry.”

Robinhood share prices have already fallen 43% since their all-time high of a little over $70 in early August. They are currently trading down 1.68% since Monday’s open at $40.70 according to Yahoo! Finance.

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Source: https://cryptopotato.com/robinhood-testing-new-cryptocurrency-wallet-as-demand-rises/

Blockchain

Snoop Dogg Reveals His Connection With Twitter Account on NFTs

Rate this post American rapper Snoop Dogg tweeted on Monday that he’s the owner of a Twitter account that talks about nonfungible tokens (NFTs). The account, named @CozomoMedici, shares “insights and tales from the wild world of NFTs” and has 27.7K followers at the moment. Snoop Dog Claims to Be Popular NFT Advocate on Twitter Snoop Dogg left the crypto community stunned this week after he revealed himself as the owner of a Twitter account dedicated to NFTs. The account Cozomo de’ Medici, named after an Italian banker, is only a month old. However, it has already garnered attention from industry watchers and even a mention from crypto-focused news outlet The Block. According to The Verge, the person behind the Medici account had been creating hype around their real identity for “at least a few days” and even conducted a poll for their followers to take a guess. The poll featured Democratic congresswoman Alexandria Ocasio-Cortez and Matt Bellamy, the lead singer of the rock band Muse. Snoop, however, was not mentioned in the poll. On September 20, @CozomoMedici tweeted that they were about to reveal their identity from their account. Shortly after, Snoop Dogg tweeted “I am @CozomoMedici.” Interestingly, after making this revelation, the Medici account bought two weed-themed collectibles from an artist named NyanDogg, The Verge reported. Additionally, Snoop’s alleged OpenSea account has been sent “a cloud of blunt and Snoop-themed NFTs” following the reveal. Is Medici Account an Elaborate Prank? The Medici account could likely turn out to be an elaborate prank, one that Snoop might have engineered himself or just participated in. Many reactions to Medici’s reveal have also expressed skepticism about Snoop’s involvement. “I have a hard time accepting that this account is Snoop Dogg. Like seriously Snoop Dogg muted his live stream for a week (?) by accident. And he is that deep into NFTs out here owning crypto punks… Owning Eth using OpenSea. Would love that to be true but I can’t believe it,” Twitter user @Brandolf485 wrote in the comments. Nonetheless, the crypto community will have to continue looking for concrete proof till Snoop’s involvement with the account is confirmed.

The post Snoop Dogg Reveals His Connection With Twitter Account on NFTs appeared first on Cryptoknowmics-Crypto News and Media Platform.

Published

2 hours ago

September 21, 2021

Republished by Plato

American rapper Snoop Dogg tweeted on Monday that he’s the owner of a Twitter account that talks about nonfungible tokens (NFTs). The account, named @CozomoMedici, shares “insights and tales from the wild world of NFTs” and has 27.7K followers at the moment.

Snoop Dog Claims to Be Popular NFT Advocate on Twitter

Snoop Dogg left the crypto community stunned this week after he revealed himself as the owner of a Twitter account dedicated to NFTs.

The account Cozomo de’ Medici, named after an Italian banker, is only a month old. However, it has already garnered attention from industry watchers and even a mention from crypto-focused news outlet The Block.

According to The Verge, the person behind the Medici account had been creating hype around their real identity for “at least a few days” and even conducted a poll for their followers to take a guess. The poll featured Democratic congresswoman Alexandria Ocasio-Cortez and Matt Bellamy, the lead singer of the rock band Muse. Snoop, however, was not mentioned in the poll.

On September 20, @CozomoMedici tweeted that they were about to reveal their identity from their account. Shortly after, Snoop Dogg tweeted “I am @CozomoMedici.”

Interestingly, after making this revelation, the Medici account bought two weed-themed collectibles from an artist named NyanDogg, The Verge reported. Additionally, Snoop’s alleged OpenSea account has been sent “a cloud of blunt and Snoop-themed NFTs” following the reveal.

Is Medici Account an Elaborate Prank?

The Medici account could likely turn out to be an elaborate prank, one that Snoop might have engineered himself or just participated in. Many reactions to Medici’s reveal have also expressed skepticism about Snoop’s involvement.

“I have a hard time accepting that this account is Snoop Dogg. Like seriously Snoop Dogg muted his live stream for a week (?) by accident. And he is that deep into NFTs out here owning crypto punks… Owning Eth using OpenSea. Would love that to be true but I can’t believe it,” Twitter user @Brandolf485 wrote in the comments.

Nonetheless, the crypto community will have to continue looking for concrete proof till Snoop’s involvement with the account is confirmed.

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Source: https://www.cryptoknowmics.com/news/snoop-dogg-reveals-his-connection-with-twitter-account-on-nfts/

Blockchain

TA: Ethereum Breaking This Confluence Resistance Could Spark a Recovery

Published

2 hours ago

September 21, 2021

Republished by Plato

Ethereum started a major decline below the $3,200 support zone against the US Dollar. ETH price traded as low as $2,807 and it is now attempting a recovery wave.

Ethereum started a fresh decline below the $3,300 and $3,200 support levels.
The price is now trading below $3,200 and the 100 hourly simple moving average.
There is a key bearish trend line forming with resistance near $3,020 on the hourly chart of ETH/USD (data feed via Kraken).
The pair could a steady recovery wave if there is a close above $3,050 in the near term.

Ethereum Price Corrects Losses

Ethereum started a major decline from the $3,500 resistance zone. ETH traded below many important support zones near $3,300 and the 100 hourly simple moving average, similar to bitcoin.

The bears gained strength below the $3,200 support zone. Finally, ether spiked below $3,000 and extended its decline. A low is formed near $2,807 and the price is now correcting losses. There was a break above the $2,920 and $2,950 resistance levels.

The price recovered above the 23.6% Fib retracement level of the recent decline from the $3,455 swing high to $2,807 low. An immediate resistance on the upside is near the $3,020 level. There is also a key bearish trend line forming with resistance near $3,020 on the hourly chart of ETH/USD.

Source: ETHUSD on TradingView.com

A close above the $3,020 and $3,050 levels could start a decent recovery. The next major resistance might be near the $3,130 level. It is near the 50% Fib retracement level of the recent decline from the $3,455 swing high to $2,807 low. A clear break and close above the $3,130 level could start a steady increase. The next major resistance sits near $3,300.

More Losses in ETH?

If ethereum fails to correct higher above the $3,020 and $3,050 resistance levels, it could start another decline. An initial support on the downside is near the $2,960 level.

The next major support seems to be forming near the $2,900 level. A downside break below the $2,900 support zone could lead the price towards the $2,800 zone. The next major support is near the $2,750 level, below which ether price might decline towards the $2,640 support zone.

Technical Indicators

Hourly MACD – The MACD for ETH/USD is slowly losing pace in the bearish zone.

Hourly RSI – The RSI for ETH/USD is still well below the 50 level.

Major Support Level – $2,960

Major Resistance Level – $3,050

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Source: https://www.newsbtc.com/analysis/eth/ethereum-confluence-resistance-3050/