Investors are often lured to DeFi by the four-digit APYs on offer, but in many instances, impermanent loss actually siphons away any potential profits investors might have accrued.

DeFi 1.0 blue chips such as Uniswap are as influential as ever but their tokens are fading as a new breed emerges.

CoinList, a service platform for new crypto offerings, today unveiled its new batch of crypto projects for CoinList Seed, its platform for early-stage crypto entrepreneurs to connect with the CoinList community. More than 1,000 startups applied for the chance to join the new batch, which gives participating projects exposure to CoinList’s community of 4 million KYC-verified […]

The post CoinList unveils the 7 crypto seed projects for Winter 2022 cohort appeared first on CryptoNinjas.

One of the world’s most highly valued blockchain companies isn’t an L1 chain nor an NFT studio.

Polygon’s TVL registered a sudden hike over the last 24 hours in a surprising turn of events. Now, while that took many by surprise, upon inspection, it was observed that this hike was thanks to just one of its more than 200 protocols – Balancer. The decentralized exchange today closed its voting on a very […]

Cryptocurrencies such as Bitcoin and Ethereum are traded on hundreds of various exchanges globally, and the price of a cryptocurrency on one exchange may differ from that on another exchange. Cryptocurrency arbitrage is a method in which traders purchase a cryptocurrency on one exchange and quickly sell that cryptocurrency for a higher price on another exchange.  This is where the old Wall Street tactic of ‘arbitrage’ comes into play. ‘Capturing the arb’ refers to profiting from the fact that an asset is selling for a low price in one exchange but a greater price in another. Traders use crypto arbitrage to take advantage of cryptocurrency’s lower price on one exchange by buying and selling it instantly for a higher price on another exchange.  Why are the Prices of Cryptocurrencies on Crypto Exchanges so Different? Centralized Exchanges The first thing to understand is that cryptocurrency pricing on centralized exchanges is determined by the order book’s most recent bid-ask matched order. So, the most recent price at which a trader buys or sells a digital asset on an exchange is termed the exchange’s real-time price. For example, if the most recently matched market order on an exchange is to buy bitcoin for $40,000, this price becomes the platform’s newest bitcoin price. The next matching order will determine the cryptocurrency price after that. Therefore, price discovery on exchanges is a constant process of deciding a cryptocurrency market price based on its most recent selling price. Decentralized Exchanges On the other hand, decentralized crypto exchanges utilize a different approach to price crypto assets. This is referred to as an ‘Automatic Market Maker’ approach since it relies on crypto arbitrage traders to keep prices consistent across exchanges. Decentral exchanges use liquidity pools rather than using an order book system to match buyers and sellers to trade cryptocurrencies at a specific price and volume. A separate pool must be set up for each cryptocurrency trading pair. What Are Different Types of Cryptocurrency Arbitrages? The most popular cryptocurrency arbitrage techniques used by crypto traders are discussed below: Deterministic Arbitrage This is the most common arbitrage technique. It entails traders purchasing and selling a digital asset on two exchanges at the same time to profit from market inefficiencies. The trader finds arbitrage opportunities on two different exchanges, buys the asset on the lower-priced platform, then sells the asset at a higher price on the higher-priced platform. Triangular Arbitrage It is also possible to profit from the uncorrelated pricing of three cryptocurrency pairs on an exchange, particularly if one of the cryptocurrencies is underpriced on the platform at the time. A trader may, for example, exchange BTC for ETH, convert ETH to SOL, and then trade SOL back to BTC. To summarise, this procedure entails shifting funds between BTC/ETH, ETH/SOL, and SOL/BTC combinations to accumulate more BTC. Decentralized Arbitration Traders use this approach to perform arbitrage trades on decentralized exchanges (DEXs) like Uniswap, Balancer, and Curve. Arbitrageurs can buy and sell pooled digital assets undervalued or overvalued on these various DEX platforms. These activities inevitably lead to price uniformity across Dexes like centralized crypto exchanges.   Statistical Arbitrage   This entails leveraging quantitative data models and algorithms to profit from large-scale arbitrage possibilities. Because the process is automated, an arbitrageur can make hundreds of deals in a matter of minutes, significantly increasing his or her profit potential.    Risks involved in Cryptocurrency Arbitrage  Losses   To be successful in crypto arbitrage, traders must execute trades fast so that they can profit from cryptocurrency price disparities across exchanges while they are still profitable.   A trader must be careful not to boost the buying price and decrease the selling price of a token by their own trades, especially in the thinly traded types of crypto that provide the widest spreads. Volume All crypto exchanges work similarly, and the pricing of crypto depends on the exchange’s most recent trade. It is important to remember that all trades are not made equal. Some trades happen with massive amounts of money, while others don’t trade with larger amounts. The trading volume on each influences the liquidity and accessible prices on a given exchange. Low volume could indicate that the exchange cannot execute a large enough trade to generate an investor’s profit. Low volume could also indicate that the trade is doable but will take too long to execute. Costs of Transactions Simultaneously, traders must watch the transaction fees associated with buying cryptocurrencies on different trading platforms. These fees will continue to fluctuate as the cryptocurrency markets develop, changing from exchange to exchange. Hacks & Fraud The cryptocurrency industry is mainly unregulated. There are also more chances of hacking, fraud, and monetary collapse. As a result, storing cryptocurrency safely is a hot topic among investors.

The post All you Should Know About Cryptocurrency Arbitrage appeared first on Cryptoknowmics-Crypto News and Media Platform.

San Francisco, CA, Feb 22, 2022 - (ACN Newswire) - The APIS is a community-owned indexing protocol for reading and writing to public blockchain networks. The protocol's initial product is a fast and powerful one-stop data analysis for Ethereum and its quickly growing layer-two scaling solutions known as rollups. The APIS has reinvented the way non-fungible token (NFT) data analysis works, with both generalized and customized features that allow users to oversee the entire Ethereum-based NFT market.

While funded through decentralized private sales thus far (with participation from 26 countries), The APIS plans to attract public participation from its community through the launch of Liquidity Bootstrapping Pool (LBP) that will start from the 24th of February and end on the 1st of March.

What Is The APIS

The APIS's first product is a one-stop blockchains data analysis platform, allowing users to customize their non-fungible token experience via the aggregation of analytical tools. Users will obtain access to extensive data analytics for digital assets across all public blockchain networks, both layer-one and layer-two scaling solutions. Users can deep dive into their own data or that of others, presented through customized graphics and interfaces. The APIS will expand on their initial product launch through the utilization of their indexing protocol, allowing for additional analytical tools for public blockchain users, such as those pertaining to decentralized finance (DeFi).

The APIS Derivative Token ($API)

Platform users will be able to earn and utilize the $API token to oversee and continue the growth of the network. The $API token is the native token of The APIS protocol, deriving its utility from staking by API Nodes and Gateways (the two parties that enable the decentralized function of The APIS protocol), dispute resolution among any API DAO members, staking by API rollup validators, and the governing of all assets and cash flows obtained by The APIS protocol.

How Can Users Participate in $API LBP

In order to take part in the public launch, users are required to follow three steps. First, click the token page on The APIS website once LBP begins (which has started today). Then, click on the button "Join Balancer LBP," reading and clicking on the disclaimer to accept it. This will take users to $API LPB. Lastly, one needs to connect a compatible Web3 wallet such as MetaMask, Coinbase Wallet and WalletConnect. The important thing to note is that users must already possess a Balancer-supported asset, such as ETH or USDT, in order to participate after finishing the above steps.

Social Links
Twitter: https://twitter.com/TheAPIS_xyz
Discord: https://dsc.gg/theapis
Medium: https://theapisxyz.medium.com/

Media Contact
Brand: The APIS
Contact: Martha Lee, Community Lead
E-Mail: [email protected]
Website: https://www.theapis.xyz/

SOURCE: The APIS

Copyright 2022 ACN Newswire. All rights reserved. www.acnnewswire.com

Key Takeaways Arbitrum is leading the Layer 2 market in terms of total value locked. Arbitrum's TVL stands at $3.3 billion, up 17% in the...

UniX Gaming is a community-centric platform that aims to become home to gamers within the metaverse and provide scholarships to help people in developing countries get involved in the booming play to earn arena. The concept of generating revenue through virtual games has remained the hottest keyword this year, thanks to the increased interest in [...]

The post UniX Gaming: Meet The Future Of Play-To-Earn in the Metaverse appeared first on Blockonomi.

Beethoven is the first next-generation AMM protocol running on the Fantom blockchain, which shows…

The post The first next-gen AMM protocol on Fantom: where to buy Beethoven appeared first on Coin Journal.

Ethereum’s scaling issues and high transaction fees are general knowledge these days for almost anyone in the crypto world. The great thing about having one’s weaknesses exposed in such an open manner is that it also invites others who want to defend and protect it as it undergoes its evolution. ETH 2.0 is the path forward that […]

The post Arbitrum: The Complete 101 Guide appeared first on Coin Bureau.

The information on or accessed through this website is obtained from independent sources we believe to be accurate and reliable, but Decentral Media,...