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Blockchain

SushiSwap Migration Ushers in Era of ‘Protocol Politicians’

SushiSwap, the community-owned automated market maker, now has a new set of leaders – offering a preview of the future of crypto politics.

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SushiSwap, the community-owned automated market maker (AMM), now has a new set of leaders. Nine signers of a multisig wallet controlling the project’s funds have been elected to govern SushiSwap through full decentralization.

On Ethereum, a multisig has worked out to be something like a board of directors in the analog world, such that it takes any six of the nine members to approve changes to the SushiSwap code or to spend its development funds.

These new leaders were chosen through a process largely inside the SushiSwap Discord server following the departure of two of the project’s three co-founders. Some stumped for a spot and some sailed through by name recognition within the community, reflecting a campaign-like process we are likely to see more of in the future.

For context, cryptocurrency projects approve actions using signatures by private keys. Properly signed statements authorize the Ethereum blockchain to take the actions it is directed to take. By allowing multiple-signature setups – where actions can be approved by a few of a larger set of authorized signers – smart-contract-based protocols can create a board, but without the face-to-face meetings.

In the SushiSwap election, 2,143 wallets participated, each able to vote for as many candidates as they wanted. Participants could also vote against specific candidates. Voting ended at 14:00 UTC on Sept. 9. 

Users had to have liquidity provider (LP) tokens in the SUSHI/ETH pool on SushiSwap to vote, rather than simply holding SUSHI. 

Read more: SushiSwap Will Withdraw Up to $830M From Uniswap Today: Why It Matters for DeFi

Voting dynamics

Newly elected multisig member Mick Hagen, a founder of crypto startup Genesis Block, explained to CoinDesk, “The people who have the most skin in the game, their SUSHI and ETH actively at stake, should have the loudest voice and most voting power.”

Newly elected multisig member 0xMaki pointed out that this setup protects against people borrowing SUSHI to impact a vote. 0xMaki, the remaining SushiSwap co-founder, added that more advanced participation schemes such as quadratic voting will be floated to the community soon.

The newly elected members are Sam Bankman-Fried (FTX), Robert Leshner (Compound Labs),  0xMaki, Larry Cermak (The Block, who is sometimes credited with inspiring SushiSwap), CMS Holdings (an investment firm launched in November), Matthew Graham (Sino Global Capital), Hagen, Adam Cochran (DuckDuckGo) and Zippo (the pseudonymous creator of the SushiSwap dashboard).

CoinDesk has not yet managed to confirm directly with all nine of the elected members as to whether they will take their positions.

Thus far, Leshner, 0xMaki and Hagen (tentatively, pending counsel) have confirmed directly that they plan to take the role. Based on statements on Twitter, it seems clear that Bankman-Fried, CMS Holdings, Cochran and Zippo will as well.

Seriously, campaigns?

Politics is coming to crypto.

Crypto entrepreneur Ric Burton has been well ahead of the trend of people taking leadership roles in protocols, first stating his intention back in January, during discussions of the DigixDAO token buyback, to be a “protocol politician.” The idea is to enable smaller holders of governance tokens to delegate their clout to protocol politicians as a countervailing force to crypto whales and the big venture capital firms with large token holdings.

The SushiSwap process hewed closer to a traditional political campaign than some others have, though in much more modest ways. Several candidates posted statements of various kinds in the “multisig-interviews” channel on the SushiSwap Discord, for example.

There, Cochran wrote a lengthy statement, including the following:

“I was the first voice to come out pointing out the major red flags in Chef Nomi’s project and the need for a multi-sig wallet. Because of this I was accused of spreading FUD and even received personal threats. People didn’t realize I was invested in $SUSHI.”

Hagen told CoinDesk that when the multisig was first floated, a lot of anonymous accounts and influencers started making noise about it on Twitter, but that quickly became pointless, from his perspective. 

He wrote in an email, “The only semi-influencer that became a signer in the end was journalist Larry Cermak. But all the other signers are serious builders/operators/investors in crypto/defi. The interview channel in Discord was mostly only used by candidates who were desperate for attention.”

Cermak has not replied to repeated requests for comment from CoinDesk since the nomination, though he has retweeted some positive mentions about his election. He told CoinDesk via email on Sept. 1, “I am not involved in any way and have no stake whatsoever,” though he did provide a fair amount of feedback early on in the Discord.

Distant parallels

When EOS was launched, a similar attitude prevailed, but then “block producer” roles were quickly overtaken not by builders but by larger holders. However, Hagen noted that the plan now is to make the multisig a temporary situation, a matter of months, not years.

Aaron Wright, co-founder of the ConsenSys-backed OpenLaw, wrote on Twitter that multisig members could get themselves in a hairy spot with regulators:

Leshner replied to Wright, saying, “DeFi is reinventing the board of directors.”

Hagen concurred but noted, “This multisig is only temporary. It’s progressive decentralization. It’s not perfect, but it’s much better than having Chef Nomi or [Sam Bankman-Fried] having full control.”

Burton declined to actively pursue a role in SushiSwap. As an ongoing observer of roles like these, however, he told CoinDesk:

“I think what we are seeing is that the incentives today are for whales to rig the game in their favour. The only way I can think of that shifting is if protocol politicians can make a great income.”

Migration update

Today SushiSwap extracted over $800 million from Uniswap, though nearly all of that had only been placed in Uniswap for the purposes of earning SUSHI ahead of the extraction. In fact, at the end of the process, Uniswap has come out ahead in terms of liquidity, at least as of this writing.

The SushiSwap token migration is complete, according to Bankman-Fried. DeFi Pulse shows Uniswap liquidity dropping from well over $1 billion in crypto assets to $430 million as of 18:00 UTC.

Uniswap had $285 million in total value locked on Aug. 26, the day SushiSwap was first announced by the now exited creator, NomiChef, on Medium.

SushiSwap does not currently have an accurate portal to check total value locked and it is not yet tracked by DeFi Pulse. Based on the estimates prior to migration, it should have something like $300 million more in liquidity than Uniswap, though representing many fewer tokens.

It remains to be seen how many liquidity providers will maintain their stakes now that the liquidity mining rewards in SUSHI have dropped from 1,000 per block to 100, however.

Disclosure

The leader in blockchain news, CoinDesk is a media outlet that strives for the highest journalistic standards and abides by a strict set of editorial policies. CoinDesk is an independent operating subsidiary of Digital Currency Group, which invests in cryptocurrencies and blockchain startups.

Source: https://www.coindesk.com/sushiswap-migration-defi-protocol-politicians

Blockchain

Opimas estimates that over US$190 billion worth of Bitcoin is currently at risk due to subpar safekeeping

Republished by Plato

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May 2021. Safekeeping of cryptocurrencies presents a challenge for institutions holding cryptocurrencies on their clients’ behalf. Cryptocurrency transactions are irreversible and anyone with full access to a wallet’s private key controls the cryptocurrencies that reside within it. Frighteningly, a number of institutional participants and even some large cryptocurrency exchanges rely on subpar custody approaches, leading Opimas to estimate that over US$190 billion worth of Bitcoin is currently at risk due to subpar safekeeping.

Luckily, a number of companies have emerged to address this problem. A new research report from Opimas—Crypto Custody: No More Excuses, authored by analysts Suzannah Balluffi and Anne-Laure Foubert—looks at the landscape of cryptocurrency custody-enabling technology providers and institutional-grade cryptocurrency custodians as well as the size of the market for cryptocurrency custody and brokerage services.

Some key findings in the report include:

Many of even the largest holders of Bitcoin and other digital assets continue to rely on storage devices meant for individual investors. Although some of these self-custody devices and wallets are secure and reputable, the operational risk posed by this approach is significant for institutional investors. Furthermore, a chunk of institutionals’ cryptocurrency holdings sit in hot wallets on exchanges. In total, about 22% of institutional cryptocurrency holdings are safeguarded in these relatively risky manners (Figure 1).

Figure 1. CUSTODY METHODS UTILIZED BY INSTITUTIONAL INVESTORS 

 

Source: Opimas analysis.

There are no more excuses for lackadaisical safekeeping – institutions can now choose from several reputable cryptocurrency custody-enabling technology providers and institutional-grade cryptocurrency custodians. Yet no custody solution is equal – there is still no best practice when it comes to security and governance relating to private keys. For example, some providers may rely on time-tested Hardware Security Modules (HSMs), while others use a newer technology known as Multi-Party Computation (MPC) – see Figure 2.

Figure 2. A COMPARISON OF HSM AND MPC TECHNOLOGY PROVIDERS

Source: Ledger, Fireblocks, Opimas analysis.

Some cryptocurrency custodians have followed in the footsteps of traditional capital markets by adding prime brokerage services to their offerings, including trading and settlement, lending, margin finance, staking, reporting, and capital introduction services. Opimas estimates that the current annual revenues generated by the institutional crypto brokerage and custody market are roughly US$2 billion and will grow to nearly US$8 billion by 2026 – a sizeable portion of this coming from brokerage services (Figure 3).

FIGURE 3. THE MARKET FOR CRYPTO CUSTODY & PRIME BROKERAGE SERVICES IS GROWING 

Source:  Opimas analysis. 

  • Regulations surrounding institutions’ ability to store cryptocurrency have become clearer (and in some cases more favorable) in numerous jurisdictions. Notably, the Office of the Comptroller of the Currency (OCC) ruling in the US has allowed banks to store cryptocurrencies for their customers. This regulatory clarity has led a number of financial institutions around the world to provide trading and custody for digital assets. With the advances in brokerage and custody solutions, Opimas expects institutional cryptocurrency holdings to grow from 20% of the cryptocurrency market cap to over 50% by 2026 (Figure 4).

FIGURE 4. INstitutional cryptocurrency holdings over time 

Source:  Opimas analysis.

Source: PlatoData Intelligence

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Blockchain

Dogecoin dumps following mention from Elon Musk on Saturday Night Live

Republished by Plato

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Meme cryptocurrency Dogecoin finally got its long-awaited shoutout on Saturday Night Live — but despite hodler hopes, the immediate result has been a violent dump.

First teased by entrepreneur and DOGE cheerleader Elon Musk in late April, the Tesla CEO finally mentioned the digital asset on live television tonight in his opening monologue of the sketch comedy show. The reference was a throwaway line from Musk’s mother, who joined him onstage and asked if her Mother’s Day gift would be Dogecoin; Musk replied that it would be. 

In the minutes afterwards, $DOGE dumped upwards of 25%, falling as low as $.50 from $.66 highs at the start of the show. It has since partially recovered, trading at $.52 at the time of publication.

An hour before the episode began, the price of DOGE sat at $.66, down from an all-time high of $.72. A pair of bearish headwinds may have shared responsibility for the pullback: Musk himself seemed to try and get ahead of the hype, urging followers in a Tweet to “invest with caution,” and a host of new data indicates that many investors may be rolling their DOGE profits into other, largecap digital assets

Additionally, Barry Silbert — the founder and CEO of Digital Currency Group, the parent company of crypto investment vehicle company Grayscale — announced a public short on DOGE via the FTX exchange. In a series of follow-up Tweets, he revealed that the position was $1 million in size, and that any proceeds or remaining funds after closing the short would be donated to charity. 

(It’s unclear if Silbert was is using “we” in reference to Digital Currency Group, one of its portfolio companies, or is simply and bizarrely using a plural pronoun in reference to himself). 

Many DOGE investors were nonetheless holding out hope for a high-profile shoutout on what looked to be a major pop culture event. NBC, the studio behind SNL, chose for the first time ever to live-stream the episode on Youtube, per the Wall Street Journal.

Even a mention could have significant impact on the price of DOGE as well: the meme currency has proven to be susceptible to price movements based on positive social media volume, and multiple studies have shown that Tweets from Musk often lead to price appreciation. A mention on an even bigger platform was thought to potentially lead to even greater gains. 

Leading into the premier of the episode, Alameda Research trader Sam Trabucco (who said in a previous Tweet that he was “studying the typical SNL episode structure to try and understand when a DOGE mention would be the most natural”) speculated that if a joke or mention didn’t come in Musk’s opening monologue, it would be “all over.”

Despite arriving during the monologue, traders nonetheless responded negatively. It remains to be seen if a DOGE-centric skit later in the show can perhaps turn the speculative asset’s fortunes around.

Coinsmart. Beste Bitcoin-Börse in Europa
Source: https://cointelegraph.com/news/dogecoin-dumps-following-mention-from-elon-musk-on-saturday-night-live

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Blockchain

Kraken Daily Market Report for May 08 2021

Republished by Plato

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Overview


  • Total spot trading volume at $2.86 billion, 9% higher than the 30-day average of $2.63 billion.
  • Total futures notional at $797.5 million.
  • The top five traded coins were, respectively, Ethereum, Bitcoin, Dogecoin, Tether and Ethereum Classic.
  • Strong returns from Gnosis (+14%) and Ethereum (+12%).

May 08, 2021 
 $2.86B traded across all markets today
 Crypto, EUR, USD, JPY, CAD, GBP, CHF, AUD 
ETH 
$3914.1 
↑12% 
$797.5M
XBT 
$58953. 
↑2.7% 
$795.7M
XDG 
$0.6368 
↓7.6% 
$636.4M
USDT 
$1.0014 
↑0.05% 
$285.3M
ETC 
$128.55 
↑7.0% 
$104.4M
ADA 
$1.6234 
↓1.9% 
$79.3M
LTC 
$347.39 
↑0.6% 
$50.5M
XRP 
$1.5653 
↓1.0% 
$48.7M
DOT 
$39.923 
↑0.07% 
$43.9M
BCH 
$1400.7 
↑4.4% 
$42.4M
USDC 
$1.0 
↑0.0% 
$40.4M
LINK 
$48.693 
↓1.3% 
$30.8M
EOS 
$10.361 
↓0.26% 
$29.7M
TRX 
$0.1431 
↓3.0% 
$17.1M
FLOW 
$28.668 
↓2.9% 
$16.1M
SC 
$0.0405 
↓4.7% 
$15.6M
STORJ 
$2.2312 
↓0.4% 
$14.7M
ATOM 
$29.510 
↑3.0% 
$11.8M
XLM 
$0.6155 
↓2.5% 
$11.6M
DASH 
$409.86 
↑1.3% 
$11.2M
XTZ 
$6.9881 
↓1.3% 
$10.0M
QTUM 
$25.576 
↓4.3% 
$9.83M
XMR 
$476.08 
↑4.6% 
$9.7M
KSM 
$435.0 
↑1.3% 
$7.39M
ZEC 
$315.75 
↓1.3% 
$6.91M
FIL 
$148.15 
↓1.4% 
$6.82M
WAVES 
$32.449 
↓0.14% 
$6.57M
UNI 
$40.532 
↑2.0% 
$6.55M
ALGO 
$1.5198 
↓3.7% 
$6.03M
DAI 
$1.0011 
↓0.01% 
$6.0M
OMG 
$11.829 
↓0.15% 
$5.87M
LSK 
$8.4918 
↓6.0% 
$3.77M
COMP 
$782.88 
↑9.6% 
$3.71M
ICX 
$2.6909 
↓1.6% 
$3.63M
NANO 
$9.7242 
↓0.6% 
$3.63M
AAVE 
$466.93 
↑5.7% 
$3.39M
GRT 
$1.5855 
↓0.6% 
$3.05M
OCEAN 
$1.4907 
↑2.0% 
$3.02M
KEEP 
$0.6183 
↑6.5% 
$2.98M
GNO 
$291.84 
↑14% 
$2.91M
SNX 
$18.448 
↓1.1% 
$2.72M
MANA 
$1.4419 
↓1.7% 
$2.67M
KAVA 
$6.2917 
↓2.8% 
$2.6M
BAT 
$1.4187 
↑0.6% 
$2.57M
CRV 
$3.5639 
↓2.6% 
$2.41M
KNC 
$3.4433 
↓2.6% 
$1.93M
REPV2 
$48.252 
↑1.0% 
$1.83M
OXT 
$0.6666 
↓1.1% 
$1.68M
BAL 
$69.63 
↑7.8% 
$1.52M
ANT 
$10.317 
↓3.2% 
$1.31M
YFI 
$54058. 
↑1.3% 
$1.3M
PAXG 
$1877.6 
↑0.8% 
$1.12M
EWT 
$13.644 
↓4.1% 
$772K
REP 
$46.85 
↓0.3% 
$714K
MLN 
$108.99 
↑0.5% 
$425K
TBTC 
$58915. 
↑1.6% 
$43.3K



#####################. Trading Volume by Asset. ##########################################

Trading Volume by Asset


The figures below break down the trading volume of the largest, mid-size, and smallest assets. Cryptos are in purple, fiats are in blue. For each asset, the chart contains the daily trading volume in USD, and the percentage of the total trading volume. The percentages for fiats and cryptos are treated separately, so that they both add up to 100%.

Figure 1: Largest trading assets: trading volume (measured in USD) and its percentage of the total trading volume (May 08 2021)



Figure 2: Mid-size trading assets: (measured in USD) (May 08 2021)



Figure 3: Smallest trading assets: (measured in USD) (May 08 2021)


###########. Daily Returns. #################################################

Daily Returns %


Figure 7: Returns over USD and XBT. Relative volume and return size is indicated by the size of the font. (May 08 2021)



###########. Disclaimer #################################################

The values generated in this report are from public market data distributed from Kraken WebSockets api. The total volumes and returns are calculated over the reporting day using UTC time.

Coinsmart. Beste Bitcoin-Börse in Europa
Source: https://blog.kraken.com/post/9008/kraken-daily-market-report-for-may-08-2021/

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