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Unimex provides access to fully decentralized margin trading

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The financial service sector has in recent times provided some of the best use cases for blockchain tech. From remittance and payments to trading and storage, blockchain is constantly springing up ways to challenge the traditional finance system. The emergence of the nascent decentralized finance (DeFi) further builds a strong case for blockchain in finance.

What is the buzz about Decentralized Finance?

Decentralized Finance became huge in 2020, and has since become a trending topic in the crypto space. In contrast to the move to decentralize money through bitcoin, the DeFi approach is the decentralization of the traditional financial industry. At the core of the initiative is opening up traditional financial services such as lending, wealth management, investment, trading, etc, to everyone and providing a permissionless ecosystem on blockchain infrastructure.

Margin Trading x Crypto

The invention of the internet revolutionized the trading industry, giving regular people access to the markets and the ability to enter with small amounts of money. Since the goal is making money, new ways soon emerged to earn even more from trading, leading to the invention of margin trading. Margin trading simply involves using funds made available by a third party to trade. Compared to regular trading, this can lead to a maximized profit, and adding an equally large amount of risk of losing.

In crypto, the risk is even greater due to the high level of volatility of assets. As well, margin trading is majorly done on centralized exchanges, which has its own drawbacks (like the recently forced liquidation) and defeats Blockchain’s promise of decentralized governance, as almost all transactions are controlled completely by a single central entity. This is where Unimex provides a solution.

About Unimex

Unimex is a low-cap DeFi project that facilitates on-chain margin trading of native Uniswap tokens. With over $4.69 billion liquidity pools provided on the Uniswap protocol so far, there is no way to directly long or short these tokens. This is a problem currently solved by Unimex.

How Unimex works

Lending

Unimex’s trading platform makes use of a central factory smart contract that allows margin traders to enter leveraged long or short positions by lending specific Ethereum-based tokens on Uniswap. Lenders provide liquidity to lending pools for ERC 20 – ETH Uniswap pairs. Liquidity can’t be provided for ERC 20 – ERC 20 pairs to stop market manipulation from happening. A measure of decentralization is unfortunately sacrificed, to combat the high-manipulation ability of low liquidity pools on Uniswap. Fees from leveraged long or short trades are then paid to lenders & stakers on Unimex.

Margin Trading

Margin trading on Unimex is entirely contained within the Uniswap DEX platform, which means all trade will be completely on-chain and decentralized. Traders are required to stake ETH as collateral to be able to borrow ERC 20 tokens and ETH from the lending pool for their long or short positions as long as the ERC 20 – ETH pairs are available on Uniswap.

Traders can get leverage within the range of 1x – 5x depending on the liquidity of the trading pairs on Uniswap, and the fees from borrowing for long/short positions are disbursed to lenders in the particular pool.

Degen Protocol (DGN)

Degen is a decentralized protocol launched on both the ETH and BSC chain. Like UMX, users will be able to trade, stake, and also lend to pools on the Degen protocol. At the core of Degen protocol is a bi-pool. Bi-pool makes more liquidity available for every trading pair e,g, ETH/USDC bi-pool is a pair for ETH pool and a USDC pool. Degen protocol also serves as an alternative to paying huge ETH gas fees on the Uniswap platform as the Degen Protocol (DGN token) was created to make Unimex available on the Binance Smart Chain (BSC). This is to take advantage of the fast transaction time and very low fees to make leverage trading available on the BSC. Users can purchase DGN on Pancakeswap, then stake and trade on the BSC version of the Unimex platform.

New and Upcoming Updates From Unimex

Unimex is already a fully functional DeFi product with a first-mover advantage in the fully decentralized margin trading space. And there’ll always be room for growth. A recent Unimex v1.2 saw UI upgrades to the ETH and BSC versions. Users can now use stop loss, take profit, and limit orders functionality to afford more control over volatility just like on the centralized exchanges.

Also, stable coin trading pairs (DAI, USDT, USDC etc.) will be added for withdrawals and deposits on both the ETH and BSC platforms. Community governance staking mentioned earlier called UMXStaking will also take effect by the end of April which removes the development team from the equation leaving everything up to the community/stakeholders – a truly decentralized margin trading platform.

Wrapping Up

Although margin trading can be very profitable, it carries significant risk that is further elevated by centralization, and a single entity in control. Since a major selling point of crypto is decentralization, projects that stay true to this will only continue to see exponential growth and adoption.

Disclaimer: This is a paid post and should not be taken as news/advice

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Source: https://ambcrypto.com/unimex-provides-access-to-fully-decentralized-margin-trading

Blockchain

Pele NFTs to Drop on Ethernity Chain from May 2

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NFTs is about capturing value of precious moments compliantly. Ethernity Chain does this brilliantly, this time by dropping a new collection of NFTs honoring the legacy of the iconic Brazilian soccer player, a world cup winner, and a legend in soccer halls, Pele.

Pele is coming to Ethernity Chain

An announcement from Ethernity Chain—a differentiated platform introducing authenticated NFTs, on Apr 16, said Pele’s collections would be available in two weeks from May 2.

These valuable collections are created by Kingsletter and Visual Lab–leading Australian Concept artists. It is the first time the legend’s trading cards have been released digitally.

The second batch will be Pele NFTs will be released later this year.

It is easy to see why the physical vintage cards of Pele are worth millions and considered the most valuable in the world.

Pele’s Golden Records make his NFTs Valuable

Pele is award-winning and honored severally in the last 60 years or so.

Together with Diego Maradona, they are joint winners of the FIFA’s Player of the Century award.

He was also instrumental in three World Cup-winning teams of 1958, 1962, and 1970.

Besides, he was unplayable during his playing years. Thus far, he remains the highest goal scorer in Brazilian national team history, scoring 77 goals in just 92 appearances.

Before retiring in 1977, Pele scored 500 goals for Santos—a professional football club in Brazil.

For this, Pele is adored and endeared by football fans and bodies globally for his contribution to Soccer and tireless efforts in eradicating poverty. Through the Pele Foundation, the mega football star is empowering Children battling poverty.

For this reason, 90 percent of Ethernity Chain’s sales will directly benefit the charity.

Jason Heuser’s NFT Collections Sold out for Big Dollars

This collection will be the second following Ethernity Chain’s partnership with Jason Heuser, which saw the drop of the “Welcome to the Internet” collection.

It was an immense success since the “Legendary Edition NFT” eventually sold for $162k from 22 bids. The NFT hard a reserve price of $35k.

Other NFTs—the “Limited Super Edition” sold for $173,824 while the “2012 Original” was scooped for a whopping $224,800.

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Source: https://btcmanager.com/pele-nft-drop-ethernity-chain-may-2/

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Blockchain

Mergers and acquisitions are rising, leaving crypto assessments in question

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Fintech, cryptocurrency and mergers and acquisitions are poised to intersect significantly in the coming year. M&A activity is expected to rebound quickly — more than 60% of decision-makers at large companies who were surveyed by FTI Consulting for a February report agree that their company has recently been a target of aggressive M&A, and 39% say their companies are looking at M&A as a result of the COVID-19 pandemic. At the same time, the cryptocurrency market is making strides toward mainstream acceptance.

As a result, there’s likely to be an uplift in deals involving cryptocurrency assets and valuations throughout 2021. While this trend is likely to spur some exciting developments in the financial sector, it is also starting to raise unprecedented questions about whether cryptocurrency and these complex business models can be accurately assessed and verified in the context of dealmaking.

Digitizing the world of finances

The effects of the COVID-19 pandemic have driven significant shifts from physical to digital services across a wide range of industries — none more dramatically than in the financial services industry, in which S&P Global has reported that an estimated 420 billion transactions, worth $7 trillion, will switch to cards and digital payments by 2023, reaching $48 trillion by 2030.

Related: How has the COVID-19 pandemic affected the crypto space? Experts answer

PayPal further legitimized cryptocurrency when it began accepting it in November 2020 and announced its acquisition of Israeli crypto startup Curv in March. Visa has also been active in the fintech arena, most recently with its $5.3 billion acquisition of Plaid in January. Investors are also keeping a close eye on the developments that will follow Coinbase’s recent debut on the Nasdaq stock exchange. Naturally, all of this activity is generating a lot of interest in fintech and cryptocurrency companies among traditional financial services institutions and big tech corporations. Even amid market lows during the first half of 2020, cryptocurrency-related M&A hit $600 million, more than the total for all of 2019. All signs point to an even larger year in 2021.

Related: Will PayPal’s crypto integration bring crypto to the masses? Experts answer

The need for due diligence

Of course with M&A, IPOs and capital raises also comes the need to conduct due diligence, market assessments and valuations. But when cryptocurrency is involved as the primary asset or a key asset, there are additional, complex layers to standard due diligence processes.

Buyers and target companies need to consider conducting a technical assessment of the digital assets at play. Potential buyers will want to know how to verify the cryptocurrency assets and ensure that the target company’s reported assets are accurate. Because cryptocurrency companies often operate under unconventional business models, and due to the very nature of distributed ledger systems, it’s not always clear what’s what. The crux of the issue is to find out about any problems, risks or inaccuracies in a target company’s cryptocurrency assets, framework and business model and whether they have the correct procedures in place to support their crypto-based business activities.

Likewise, cryptocurrency companies that are looking to raise money or sell their business to a larger technology or financial services corporation (or file for an IPO) can help position their business by conducting in-depth assessments that will demonstrate their differentiators and value to potential buyers, and support subsequent valuation and due diligence activities.

The nuances of the crypto space

Many may not understand the importance of conducting a technical assessment and cryptocurrency evaluation as part of their larger financial due diligence, or that it’s even possible. However, experts in this space are beginning to develop complex methodologies to conduct, fast, in-depth and cost-effective technical assessments of cryptocurrency assets and leverage digital forensic investigation techniques to sample and verify digital wallet ownership, digital asset ownership, as well as verify assets under custody, and the value and validity of assets.

Additional areas that buyers should examine in a crypto-focused technical assessment include:

  • The full scope of digital asset holdings, including hot wallet services, cold wallet storage, business wallet services, portfolio management and other services.
  • Size, locations, duties and other key details relating to technical and sales support, and development teams.
  • Risks within cryptocurrency-related contracts, privacy, security, Know Your Customer, Anti-Money Laundering, signatures and other policy controls.
  • Code audits across wallets, user interface and application programming interfaces.
  • Governance implications (such as regulatory requirements and standards including the United States government’s Cybersecurity Maturity Model Certification and the European Union’s General Data Protection Regulation).
  • Technical structure and stability.
  • Third-party partnerships, data use and obligations.
  • Research and development projects and developmental coin/token support.

In addition to traditional financial due diligence and valuations that accompany fundraising and M&A transactions, buyers in this space will also need to validate and assess the technical elements of the target company’s cryptocurrency assets and structures. Doing this right will require the support of a domain expert in blockchain and cryptocurrency who understands the technical complexities and knows what questions to ask. Cryptocurrency remains an enigma to many people, but a thorough, expert-driven technical audit can reveal risks and eliminate guesswork to support the execution of high-value, disruptive deals.

The views, thoughts and opinions expressed here are the author’s alone and do not necessarily reflect or represent the views and opinions of Cointelegraph.

Steven S. McNew is a senior managing director within the technology practice of FTI Consulting. In his role, Steven helps clients evaluate and implement blockchain solutions and builds cost-effective, defensible strategies to manage data for complex legal and regulatory matters. Steven is an expert in blockchain, information and data security, complex discovery and digital forensics. He completed studies in blockchain and cryptocurrency at MIT and has led engagements involving blockchain assessments, pilot projects and software selection and implementation. He has also led disputes involving issues related to blockchain and various forms of cryptocurrency.

Coinsmart. Beste Bitcoin-Börse in Europa
Source: https://cointelegraph.com/news/mergers-and-acquisitions-are-rising-leaving-crypto-assessments-in-question

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AgeUSD to Launch as First Stablecoin on Cardano Network

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Multinational blockchain technology company Emurgo initially announced the AgeUSD stablecoin in January 2021. The firm has since announced a partnership between the Ergo Foundation, Emurgo, and Charles Hoskinson’s Input-Output Global, the parent company of IOHK.

The AgeUSD stablecoin will be available on Cardano as soon as smart contract capabilities are launched on the blockchain, it revealed.

Do We Need Another Stablecoin?

Emurgo is aiming to prevent events like MakerDAO’s Black Thursday which emerged through vulnerabilities in its Dai collateralization mechanism. A mass liquidation of the vast majority of Maker vaults resulted in around $4 million in Dai being under-collateralized at the time in March 2020.

AgeUSD’s so-called “Staticoin” protocol-inspired design does not rely on collateralized debt positions (CDPs).

“Thanks to its design, the scenario that happened on Black Thursday is not possible for the AgeUSD protocol. Without CDPs, we do not have liquidation events nor the requirement for users to perform transactions to ensure that the liquidations actually work properly,”

The stablecoin runs on the Ergo blockchain aiming to automate as much as possible within the mathematics of the protocol itself. Reserve providers pay Ergo’s native currency (ERG) to mint reserve coins which represent the underlying collateral. Users of the stablecoin can also deposit ERG into the reserves in order to mint AgeUSD, it explained. This is only allowed by the protocol if there are enough reserves above its reserve ratio. Banks use a similar method to loan out funds.


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The Cardano partnership will also enable its native token, ADA, to be used as collateral to mint reserves. However, the potential downside is that the stablecoin is only backed by these two assets whereas Dai is backed by multiple cryptocurrencies.

AgeUSD will launch on Cardano when it rolls out the Alonzo update that ushers in Plutus powered smart contracts. This is expected in the latter half of this year according to the roadmap.

Cardano ADA Price Update

As the long-awaited update nears, ADA prices have been cranking to new highs, the most recent ATH being $1.55 on April 14. At the time of writing, ADA was trading up 2% on the day at $1.45 according to Coingecko.

It is the sixth largest cryptocurrency by market cap which currently stands at $46 billion and there are 32 billion tokens in circulation. The token was briefly flipped by Dogecoin but has regained its position in the charts, just below Tether.

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Source: https://cryptopotato.com/ageusd-to-launch-as-first-stablecoin-on-cardano-network/

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