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Polars (POL) Review: Introducing DeFi in Prediction Markets

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Two things:

One, DeFi is huge, so extensive it can describe any financial activity executable in a decentralized manner. While decentralized exchanges, trading, insurance, and more dominate, other areas under this umbrella remain under-explored but, nonetheless, a gold mine.

Second, in this “under-explored” category are the innovation in prediction markets. Believers assert that the idea behind a prediction market is powerful, specifically with the blockchain’s intervention.

Polars in the Prediction Market

And this is where the creators of Polars are setting their eyes on–for good reasons. Prediction markets, just like any other sector, allow asset trading. Herein, these “assets” are packages of potential outcomes for a future event. 

These events’ outcome is often binary: Yes or No, meaning the participant is banking on that event happening or failing. 

Prediction markets are, therefore, a portal allowing the trading of the outcome of future events. 

However, in the blockchain scene, how a prediction market operates is quite different. 

Through the blockchain’s trustless nature, decentralized prediction markets can effectively capture “knowledge” about a particular event using multiple oracles.

Presently, there are several prediction markets dApps in operation. Some of them include Gnosis and Augur—both of which operate from the Ethereum platform, Polymarket, and Hivemind. 

Admittedly, all of them exist to allow anyone to create a market, bet on an outcome, and resolve or report these outcomes.

Polars: DeFi in Prediction Markets

While popular, most of them face numerous challenges, including liquidity issues and low trading volumes. 

This is where Polars comes in.

Aware that punters are not usually interested in low liquidity and trading volume events, the project aims to integrate DeFi. This way, they hope to once and for all resolve liquidity problems even in unpopular events. 

At the same time, they are flexible, aiming to allow users to choose their preferred platform. Polars will first deploy in the Ethereum and Binance Smart Chain (BSC) networks before launching on the interoperable Polkadot platform. 

Later on, Polars plans to launch in other EVM-compatible platforms, allowing users to optimize the fees.

Polars Tokens

Polars is introducing two tokens—BLACK and WHITE, to create an efficient and transparent predictions market free from liquidity and trading volume problems. 

To make participation more interactive, they are creating the White and Black Teams. 

Both will be actively competing against each other with the winner depending on results of external events like results of Presidential elections, exchange rates, or any other event that users can punt on. 

However, as they compete, the value of both polar tokens will remain the same. Whenever the White team wins, the value of the White token rises. At the same time, that of Black falls in the same margin so as to maintain their aggregate price.

At the same time, there are earning opportunities for liquidity providers enabled by the platform’s secondary pool design that has no impermanent loss risks. 

From the secondary pool, traders can swap Polars tokens without slippage. Market makers and liquidity providers with Polars tokens can supply liquidity to this secondary pool. Fifty percent of all fees earned by the Polars platform will be distributed to liquidity providers.

Each of these tokens (BLACK and WHITE) exists exclusively in pairs and has an aggregate value. When the price of one token falls, the other automatically rises. Therefore, regardless of price movement, their aggregate value is retained. 

In any of Polars’ competition, these tokens’ volatility can move within a standard five percent, influenced by between 5 to 15 unique events every day. Accordingly, the price of these tokens can change at least ten times every day.

Polars also has another token, POL, for governance. Holders receive 30 percent of fees generated by the platform proportional to between holders. By holding POL, users can vote on proposals and directly participate in influencing the project’s trajectory. 

At any time, POL holders can stake their portion via a smart contract activating voting access and more yields. In the future, the platform aims to use these staked POL to acquire historical NFTs.

Polars MVP is Ready, Beta Testing Scheduled 

Presently, the Polars platform has its MVP ready. 

They are completing their internal product testing and auditing of smart contracts. Once ready, it will be deployed in a test network. 

Beta testing is ready for users whose addresses have been white-listed. The opportunity for this is currently open. Another advantage for white-listed users who participate in this beta testing is getting access to pre- investing. 

Plans of Liquidity Mining and Launching on Ethereum and Binance Smart Chain

With this clearance, they can access the presale where 25 million POL tokens have been set aside. Here, testers can purchase each POL token for between $0.15 to $0.45–a considerable discount. During the Public Sale (a two-day window period) via Balancer, each POL token will sell for anywhere between $1 and $0.50. 

What’s more, during the Public Sale, there will be 10 million fewer POL tokens. 

Moreover, testers will stand to earn even more POL tokens via an airdrop once Polars list on Uniswap (Ethereum) and PancakeSwap (Binance Smart Chain). This will be at a tentative time in May 2021, when they also plan to launch in mainnet on the two platforms. 

Additionally, Polars have allocated five million POL tokens for liquidity farming.

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Source: https://btcmanager.com/polars-pol-defi-prediction-markets/

Blockchain

$420M in leveraged long traders liquidated after XRP rallies to $1.96

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XRP holders couldn’t have asked for a better year as the cryptocurrency rallied almost 800% and flirted with a $2 level in the early hours of April 14. 

In addition to achieving its highest level since January 2018, this robust price increase signals that investors are not worried about the ongoing SEC “unregistered securities offering” dispute.

However, just 6 hours after rallying to $1.96, XRP price crashed by more than 20%. During an interview, DCG Group CEO Barry Silbert said it would be risky for exchanges and companies in the United States to relist XRP ahead of receiving the SEC’s blessing. These remarks may have contributed to the unprecedented $420 million long liquidations on derivatives exchanges today.

XRP price in USDT at Binance. Source: TradingView

Over the past couple of weeks, the primary catalysts for XRP’s rally have been victories in Ripple’s legal battles. Lawyers representing Ripple were granted access to internal SEC discussions regarding cryptocurrencies, and more recently, a court denied the disclosure of two Ripple executives’ financial records, including CEO Brad Garlinghouse.

Considering the recent rally, pinpointing a single reason for the price correction will likely be inaccurate. Nevertheless, the impressive $420 million long liquidations past 24-hours exceed those of Feb. 1 when XRP price crashed by 46% in two hours.

XRP futures aggregate liquidations. Source: Bybt

The only logical reason behind this staggering liquidation is excessive leverage used by buyers. To confirm such a thesis, one must analyze the perpetual contracts funding rate. To balance their risks, exchanges will charge either longs or shorts depending on how much leverage each side is demanding.

XRP perpetual futures 8-hour funding rate. Source: Bybt

The chart above shows that the 8-hour funding rate is surpassing 0.25%, which is equivalent to 5.4% per week. Although this is excessive, buyers will withstand these fees during strong price rallies. For example, the current upward price move lasted for almost three weeks, and prior to that another took place in early February.

Blaming the liquidations exclusively on leverage seems a bit extreme, although it certainly played its part in amplifying today’s correction.

Moreover, the record growth in XRP futures open interest was accompanied by a hike in the volume at spot exchanges. As a result, the eventual impact from more significant liquidations should have been absorbed by the increased liquidity.

Cascading liquidations will always take place in volatile markets. Thus investors should focus on how long it takes until the price recovers from it.

Fundamentally, a 10% or 20% intraday drop should not be interpreted differently. The correction depends on how many bids were previously stacked at exchange orderbooks and is not directly related to investors’ bullish or bearish sentiment.

The views and opinions expressed here are solely those of the author and do not necessarily reflect the views of Cointelegraph. Every investment and trading move involves risk. You should conduct your own research when making a decision.

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Source: https://cointelegraph.com/news/420m-in-leveraged-long-traders-liquidated-after-xrp-rallies-to-1-96

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Garry Tan’s 2013 investment of $300K in Coinbase is now worth $2.4B

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Garry Tan, a prominent angel investor and the founder of Initialized Capital, was one of the first investors to provide seed funding to Coinbase eight years ago. 

Less than a decade later, and after today’s highly anticipated Nasdaq listing for Coinbase’s COIN stock, Tan’s 2013 investment of $300,000 into Coinbase is now worth $2.4 billion.

Coinbase debuted on the Nasdaq on April 14 at $381 per share, making it one of the most hyped listings in the U.S. stock market of the year.

How did $300,000 become $2.4 billion?

In 2013, when Tan invested in Coinbase, it was unclear whether Bitcoin would be recognized as a global asset and an established store of value.

At the time, there were not many reputable exchanges, and the few that existed were often hacked. Tan’s investment took place before the monumental Mt. Gox hack that saw billions of dollars worth of BTC stolen.

Even after launch, Coinbase was not always in an uptrend. According to Coinbase co-founder Fred Ehrsam, from 2014 to 2017 the company faced numerous hardships. 

Ehrsam said:

“Over time, crypto grew, and so did the company. A simple #Bitcoin wallet evolved into individual and institutional products to support a blossoming cryptoeconomy. 2 nerds who met on the internet (yes, @brian_armstrong and I met on @reddit ) turned into a company of 1000+. There was serious hardship. In the 3 years between 2014 and 2017, the outside world thought crypto was dead. Over a third of employees left. Yet crypto kept building. @ethereum came on the scene and showed that crypto native applications were possible, opening up a whole new world of possibilities.”

Even if the listing fails to impress, Coinbase has alluring financials

Coinbase is the first publicly listed major cryptocurrency exchange in the U.S. stock market and its availability on Nasdaq now provides mainstream investors with exposure to the crypto sector. Even if the listing fails to impress on day one, the company still has strong financials and user metrics.

Coinbase made $1 billion in the last quarter and has more users than every financial institution in the U.S. apart from JPMorgan, making it a highly compelling trade for investors in the traditional financial market.

Coinsmart. Beste Bitcoin-Börse in Europa
Source: https://cointelegraph.com/news/garry-tan-s-2013-investment-of-300k-in-coinbase-is-now-worth-2-4b

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German software developer donated $1.2M in ‘undeserved’ Bitcoin to political party

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A German national who reportedly sees his Bitcoin profits as “undeserved wealth” has donated more than $1 million to the country’s green political party.

According to Hamburg-based news outlet Die Zeit, Moritz Schmidt, a software developer from the northeastern town of Greifswald, has sent one million euro — roughly $1.2 million — to Germany’s green party, known as The Greens or Alliance 90. A party spokesperson said Schmidt had made significant gains during the Bitcoin (BTC) bull run but wanted to contribute to causes related to environmental and climate protection rather than HODLing his crypto.

“The donor has made it clear to us that he sees these profits as undeserved wealth that he does not claim for himself, but wants to use socially, for something that corresponds to his convictions,” said the Greens spokesperson. “In the meantime he sees the Bitcoin system critically, among other things against the background that the necessary arithmetic operations consume huge amounts of electricity.”

Records for the Greens show that Schmidt’s donation is the biggest the party has received this year, with the next highest contribution at 500,000 euro, or roughly $600,000. The funds will reportedly be used for the party’s federal election campaign and the state election campaigns in 2021.

The software developer is not alone in seemingly hoping the crypto industry will become greener. Many have criticized Bitcoin mining for its impact on the environment, with some estimates indicating the network consumes more energy than the entire country of Argentina. However, Mike Colyer, CEO of crypto mining firm Foundry Digital, said this week that he believes mining Bitcoin could eventually help the transition to a “world where 100% of our energy is produced from renewables.”

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Source: https://cointelegraph.com/news/german-software-developer-donated-1-2m-in-undeserved-bitcoin-to-political-party

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