Connect with us
[crypto-donation-box]

Blockchain

What is Convergence Finance?

Republished by Plato

Published

on

Convergence Finance is a decentralized exchange for tokenized real-world assets.

While the global real estate industry has historically been an attractive market, the problem with the existing blockchain projects in targetting the industry still dampens its growth and adoption. Convergence Finance aims to tackle the issues with the current market landscape with advanced solutions powered by smart contracts and other technologies.

Convergence Finance promises a highly-liquid and decentralized exchange for tokenized securities. It is also designed to bridge the exchange of any utility tokens and security tokens through a meticulous infrastructure that facilitates the seamless swap of these tokens.

Table of Contents

Background

Convergence Finance was created in order to address the problem with the current tokenization market and security token landscape. These involve issues such as the lack of scalability of today’s tokenized security market, including a high barrier to entry for potential issuers.

The status quo for investors isn’t on the good side either. Most exchanges that list security tokens suffer from a lack of liquidity despite the growing volume of interested issuers. In addressing these concerns, Convergence Finance found that the best platform is decentralized finance (DeFi).

The creation of Convergence Finance banks on advanced DeFi technology to achieve optimal liquidity and accessible security token issuance. Through the protocol, any user can easily gain exposure to some of the biggest real world projects that can be tokenized which they can trade in its built-in marketplace anytime they wish to.

What is Convergence Finance?

Convergence Finance is a decentralized exchange for tokenized real-world assets. Through the help of smart contracts, the protocol is capable of creating blockchain representations of several kinds of assets so that they can be traded freely on different, supported marketplaces.

Convergence introduced the concept of Wrapped Security Tokens (WST). These digital assets can be fractionalized and designed to support the trade of tokenized securities. This is made possible by their proprietary token wrapping module.

Convergence, on top of its token wrapping module, also implements an Automated Market Making (AMM) model, liquidity pools, and a decentralized autonomous organization (ConvergenceDAO), to support a fully-decentralized WST and utility token exchange.

Wrapped Security Tokens

WSTs are the backbone of the protocol. These are the tokenized representations of real-world assets so they can be freely traded and swapped on a blockchain. An additional feature of WSTs is that they can be fractionalized, something that all digital assets espouse. The purpose of fractionalization is to ease the barrier to entry for interested investors, allowing them to hold only a portion of a WST according to the exposure they are willing to absorb. Anyone can launch their own WST if they wish to monetize a portion of their projects through the blockchain.

Convergence AMM Infrastructure

Convergence AMM allows the protocol to maintain a decentralized, peer-to-peer exchange of WSTs. Without the need for order books, the AMM infrastructure automatically matches buy and sell orders without third-party interference.

In a slightly more technical perspective, what the AMM model does first is it aggregates existing liquidity from multiple sources connected with the exchange in order to provide platform traders with the best offers for their WSTs.

The deployment of the protocol on Ethereum allows it to utilize smart contracts and Ethereum Virtual Machines (EVM). This is also meant to help bridge the platform with other compatible blockchains, such as Binance Smart Chain and Moonbeam, among others.

Convergence Pools

Convergence features a liquidity pool to further support real-time trades on the platform. In liquidity pools, users stake their assets and earn potential rewards in doing so. This can be performed by locking a portion of your token in a liquidity pool for a specified period of time.

Additionally, users can create their own pools if they wish to. These same pools can be used to launch initial WST offerings in the market where users can make investments. It also benefits asset owners because this makes it easy for them to start their crowdfunding plans through the protocol.

But the biggest benefit brought to the protocol by Convergence pools is that they make 24/7 trades possible on the exchange without consuming so much time for traders or asset owners.

ConvergenceDAO

Since the platform is designed to be fully-decentralized, protocol governance falls onto the hands of its utility token holders. Those who own the platform’s native tokens can participate in the voting for different system additions, upgrades, or revision. There are also several other functions that can be voted upon by its native token holders.

CONV Token

CONV is the platform’s native, utility token. It can be used as a medium of exchange, payment for transaction fees, and to gain voting rights in the protocol’s governance mechanism. Additionally, CONV is the token used to distribute rewards to the network’s liquidity providers.

ConvergenceDAO is powered by the CONV token. Holders of CONV are given the privilege of participating in protocol decisions concerning the inclusion of new assets, listing on exchanges, and maintenance of liquidity thresholds, among others.

In addition to these use cases, CONV holders are given exclusive participation access to newly-launched WST offerings and pre-sale events, should there be any.

Conclusion

Convergence is a relatively new project in the cryptocurrency space. While it claims to be the first interchangeable assets protocol in the market, there is still a lot of work to be done in order to establish the success for its proof of concept. Fortunately, the protocol has already laid out the essentials for a highly-liquid security token marketplace. Its fundamentals seem solid.

Through the help of its implemented AMM model and access to liquidity pools, we can expect that investors can be enticed in joining the network. These solutions go above and beyond the problem with centralized exchanges providing tokenization services for real estate assets.

But beyond these solutions, the employment of a DAO is likely to encourage its own community members to remain active in maintaining the protocol. The outlook for the project seems positive and it can be reflected by the amount of interest it got when it launched its first, successful strategic funding round.

Coinsmart. Beste Bitcoin-Börse in Europa
Source: https://www.asiacryptotoday.com/convergence-finance/

Blockchain

Unlike Dogecoin, Catecoin Gives a New Meaning to Meme Coins with Real Use case

Republished by Plato

Published

on

In the present-day connected world, memes have become an integral part of our pop culture. While one can’t put a monetary value on the entertainment they provide, its creators can definitely be encouraged and rewarded for their contribution towards a lively internet.

Catecoin, the first decentralized meme-based token is trying to do just by incentivizing content creators as well as consumers. The project is the first of its kind to implement DeFi features in the content space. Fueled by the CATE token, the project offers a platform for user-generated content, quite similar to 9GAG but on a blockchain, along with content farming and staking features.

How does it work?

Using the Catecoin ecosystem is as simple as using any social network platform. Content creators can submit their creations to the Catecoin Meme Platform and once published they will start earning CATE rewards as the community likes or comments on that content. Even platform users who interact with the posts will receive rewards for their comments and likes.

Meanwhile, the posts are evaluated based on the received reactions. Any post with 500 or more likes from the community will become eligible for a transformation into an NFT and get listed on the NFT market. Catecoin refers to this entire process as Content Farming and has set aside 35% of CATE supply for this alone.

Using CATE

CATE is the utility token of the Binance Smart Chain-based Catecoin project. Apart from value exchange, these tokens also control the accessibility of the platform. Users should hold a minimum of 10,000 CATE to interact with any posts on the platform. Similarly, content creators will have to maintain a balance of 100,000 CATE to be able to submit their works to the platform.

While each like or comment will result in both content creators and consumers receiving 0.1 CATE each, the community can also earn additional returns by just holding the tokens. The platform shares one percent of each transaction made on the network with CATE holders, and at the same time burns the same amount to regulate supply.

Once a meme gets converted to NFT and lists on the NFT market, anyone can purchase it and start receiving any rewards the asset may generate in the future.

Get some CATE, it is simple

In just a few simple steps, one can become part of the Catecoin community early on. CATE is listed on PancakeSwap and users can acquire the tokens against BNB payment. Buying CATE will require users to download and set up Trust Wallet and MetaMask accounts and hold some BNB in their wallets. They can then visit PancakeSwap, make payment in BNB to the Catecoin token 0x118f073796821da3e9901061b05c0b36377b877e and receive the tokens in their connected wallet.

What Makes CATE Different?

The flood of meme coins into the crypto market started long ago, and Dogecoin is the prime example. Many of these coins have a virtually unlimited supply and no real use cases. On the other hand, CATE has a definite supply of 100 trillion and a deflationary mechanism that reduces the supply by 0.5%-1% per transaction while providing a real-world use case – encouraging meme creators to monetize their content. The model adopted by Catecoin makes it the most sustainable meme project out there.

Coinsmart. Beste Bitcoin-Börse in Europa
Source: https://www.newsbtc.com/news/company/unlike-dogecoin-catecoin-gives-a-new-meaning-to-meme-coins-with-real-use-case/

Continue Reading

Blockchain

Amid Rumors Of Dumping Its BTC Holdings, Elon Musk Maintains Tesla Hasn’t Sold Any Bitcoin

Republished by Plato

Published

on

Amid Rumors Of Dumping Its BTC Holdings, Elon Musk Maintains Tesla Hasn't Sold Any Bitcoin

Advertisement &  & 

Elon Musk has been dragged under the bus by countless bitcoin proponents as the price of the flagship currency continues to take a downward movement. Bitcoin dropped 20%, sending prices to $45,000 as of yesterday.

As of publication, Bitcoin imitates analysts’ predictions that the asset could continue to dip for the most part of this week, and with Bitcoin now trading at $45,065 at press time, their analysis remains valid.

BTCUSD
BTCUSD Chart By TradingView

The Bitcoin selloff continues

Asides from the “bearish” tweets from Musk, which to many is simply just the Billionaire’s expression of his dissatisfaction with Bitcoin, Bitcoin could sustain more losses if Tesla sold its remaining Bitcoin holdings.

Following Tesla’s announcement, onlookers spotted a Bitcoin transfer of 19,259, worth over $872 million at press time. Analyst William Clemente observed that the transfer time coincided with Musk’s tweet, hinting that Tesla may have indeed called it a day for Bitcoin.

Musk reveals Tesla’s $1.5 billion holdings still intact, prices soar

However, Musk has recently cleared the air on whether the Bitcoin holdings are still under Tesla’s belt. In what could be considered the most recent positive tweet from Musk on Bitcoin, he wrote “To clarify speculation, Tesla has not sold any Bitcoin.”

Advertisement &  & 

Some excited Bitcoiners are holding on to the news as a sign that Tesla has not lost all interest in Bitcoin, despite Musk’s tweets that Dogecoin is a superior asset to Bitcoin. On the other hand, skeptical Bitcoiners are convinced that in a matter of time, Tesla will pull through with its Bitcoin sale.

Recall that Elon Musk teased that this could be the case, given that Bitcoin proponents have continued to critique Tesla’s decision. Shortly after hinting that Tesla might give up its $1.5 billion Bitcoin holdings.

However, Bitcoin has since surged by 7% since Musk’s clarification on Tesla’s Bitcoin holdings.

Bitcoin doesn’t need Elon Musk

Meanwhile, analysts’ who heavily bought the dip have insisted that Bitcoiners pay no mind to the bear market.

In unison, key players agree that “Bitcoin doesn’t need Musk. Rather, Musk needs Bitcoin.” It is unclear where the market is headed going forward, but the sentiments from top Bitcoin proponents similarly claim that the bear trend is only temporary, as Bitcoin is still yet to bottom.

Coinsmart. Beste Bitcoin-Börse in Europa
Source: https://zycrypto.com/amid-rumors-of-dumping-its-btc-holdings-elon-musk-maintains-tesla-hasnt-sold-any-bitcoin/

Continue Reading

Blockchain

Elon Musk tweets BTC price bottom? 5 things to watch in Bitcoin this week

Republished by Plato

Published

on

Bitcoin (BTC) is nearing $40,000 this week as “Dogefather” Elon Musk deals out pure pain to hodlers — what’s next?

After a traumatic weekend for many crypto investors, Monday is setting the stage for the next chapter in the wild 2021 bull market.

Cointlegraph takes a look at five factors which could shape what Bitcoin and altcoins do next.

Musk tweet hits key Bitcoin technical level

It’s all about one man yet again this week: Elon Musk. In characteristic fashion, the Tesla and SpaceX CEO caused uproar on Twitter when he came out bearish on Bitcoin.

BTC/USD sold off immediately on news that Tesla was halting BTC payments for its products, but for Musk, this was not enough.

Further tweets over the weekend, including criticism of Bitcoin’s decentralization and how he “believes in crypto,” added fuel to the fire.

It was a hint that Tesla may already be planning to sell its holdings, however, that caused the most misery. Bitcoin fell to near $42,000, retesting this previous all-time high level before steadying as Musk stressed that no sale had occurred.

“To clarify speculation, Tesla has not sold any Bitcoin,” he wrote on Monday.

BTC/USD chart with Twitter events highlighted. Source: Twitter

With Musk versus the cryptocurrency community beginning to look like a full on war, Bitcoin is thus unsurprisingly volatile as all eyes remain on the Twitter battlefield.

At the time of writing, Bitcoin was trading at around $44,800, still down 8.7% over the past 24 hours.

As analyst Alex Krueger noted, however, the clarifitication tweet may be unwittingly acting as a local bottom signal, as Musk posted it just as BTC/USD hit a key 61.8 Fibonacci retracement level.

“Elon Musk must be an outstanding technical analyst,” he commented.

“His ‘Tesla has not sold any Bitcoin’ tweet was posted exactly at Bitcoin’s key technical level, the 61.8 fib ($42,845).”

BTC dominance falls below 40%

Musk’s activities have had a detrimental impact on Bitcoin and altcoins alike.

Despite continuing to praise Dogecoin (DOGE), even the meme-based token failed to avoid losses over the weekend, with the majority of large-cap altcoins following Bitcoin down.

There were some less significant losses, such as those of Cardano (ADA), which on Saturday was still bucking the overall downtrend to even post new all-time highs.

In terms of bearishness, however, nothing shows how much the average Bitcoin holder is suffering like market dominance.

On Monday, Bitcoin’s overall market cap share dipped below 40% for the first time since June 2018.

Bitcoin market cap dominance chart. Source: CoinMarketCap

Already on the way out, dominance was dealt a significant blow thanks to the recent Bitcoin price pressure, while alts such as Ether (ETH) benefitted.

“The Bitcoin dominance is still falling,” popular Twitter trader The Moon summarized over the weekend.

“The alt season is not over yet. But my gut feeling is that the end is near!”

Bitcoin fundamentals provide calm

For all the nerveracking price action, meanwhile, nothing provides a bullish counterpoint to the current Bitcoin narrative than its network fundamentals.

Even after its $42,000 dip, Bitcoin is more attractive than ever for miners, and its network security is therefore also more solid than ever before.

As Cointelegraph reported, both hash rate and difficulty have staged a miraculous recovery in recent weeks, reclaiming all-time highs after a miner washout caused its own brief price crash.

The weekend proved to be no different, with weekly average hash rate topping 180 exahashes per second (EH/s) for the first time.

Bitcoin 7-day average hash rate chart. Source: Blockchain

Difficulty is still on track to increase by over 10% at the next automated readjustment in 11 days’ time. The previous readjustment on May 14, at 21.5%, was the largest positive shift since June 2014.

“Bitcoin’s mining difficulty hitting an all-time high just after tesla’s announcement is a chef’s kiss,” Alex Thorn, head of firmwide research at crypto merchant bank Galaxy Digital, said last week.

Dollar bounces at support

Taking a break for crypto-specific triggers, the wider macro picture may yet provide some inspiration for price trajectory.

After plunging late last week, the strength of the U.S. dollar is returning. The U.S. dollar currency index (DXY) is bouncing off familiar support — surges in its strength tends to provide teething problems for BTC/USD.

U.S. dollar currency index (DXY) 1-day candle chart. Source: Tradingview

At the same time, stocks are bullish in China but performing averagely in Europe and the U.S. Coronavirus, with localized peaks in some jurisdictions but fewer cases in others, joins the melting pot.

Among traders, however, it is inflation that is a key issue. A broad global rebound from the time of lockdowns and other restrictions creates problems for those attempting to engineer it — specifically, the U.S. Federal Reserve and other central banks.

“The global economic recovery is well under way; that’s what’s fueling the inflation fears,” Olivier d’Assier, Qontigo head of APAC applied research, told Bloomberg.

After stock markets’ rip roaring year, he added, appetite for profit taking will be understandably increasing.

Bitcoin still beats its last bull market

Is it 2013 or 2017 in terms of the Bitcoin bull market?

Among the industry’s best-known names, there is no hint of bearishness — all that remains to do is analyze the nature of the current retracement and compare it to years past.

This week, stock-to-flow creator PlanB notes that for all the Musk drama, Bitcoin is still performing better than during its 2017 run to $20,000. This despite the $42,000 dip officially being Bitcoin’s biggest this bull cycle and since the cross-asset crash of March 2020.

“Today feels like 2017 bull market (esp. during the fork war),” he tweeted on Monday, invoking memories of the birth of Bitcoin Cash (BCH).

“It’s not a straight line to the next ATH, but a lot of volatility (multiple -30% dips). HODL.”

BTC/USD stock-to-flow chart as of May 17, 2021. Source: Digitalik

Calling for calm and zooming out is a key feature among seasoned Bitcoiners. As Cointelegraph reported last week, stock-to-flow remains unviolated by Musk or any other episode of downward volatility.

An accompanying survey meanwhile revealed that a majority of 35,000 respondents believe that BTC/USD will still hit $100,000 this year.

Coinsmart. Beste Bitcoin-Börse in Europa
Source: https://cointelegraph.com/news/elon-musk-tweets-btc-price-bottom-5-things-to-watch-in-bitcoin-this-week

Continue Reading
Blockchain5 days ago

First Spot: Coinbase’s App Surpassed TikTok, Instagram, and Facebook on iOS in the US

Blockchain5 days ago

dotmoovs Raises $840,000 From Strategic Investors and Partners

Blockchain5 days ago

Raze Network Kicks Off Testnet Phase With UI Community Voting

Blockchain4 days ago

US Investment Bank Cowen to Offer Crypto Custody Services

Blockchain5 days ago

How did Internet Computer (ICP) become a top-10 cryptocurrency overnight?

Blockchain5 days ago

DeFi lending platform Aave reveals “private pool” for institutions

Blockchain5 days ago

When dollars meet the hype: The biggest NFT hits from celebrities

Blockchain5 days ago

PARSIQ Integrated Into Polkadot For Smart Triggers Across the Relay Chain

Blockchain5 days ago

MoneyGram to Enable Users to Buy Bitcoin and Withdraw it From Birck-and-Mortar Locations

Blockchain5 days ago

Griff Green: Doge-loving hippy hacker steals crypto before bad guys can

Blockchain5 days ago

Here are the Top DeFi Tokens With The Largest Price Jumps This Week

Blockchain5 days ago

As Elon Musk’s SpaceX Literally Sends Dogecoin To The Moon, Justin Sun Craves For Tron to Tag Along

Blockchain4 days ago

Buterin Plugs UNI as Next Oracle Token

Blockchain5 days ago

Can Elon Musk’s ‘damage control’ measures help revive Dogecoin’s price?

Blockchain5 days ago

Ethernity Chain Immortalizes Tony Hawk’s Last 540 Skate Trick With NFT

Blockchain5 days ago

Gaming Giant Kinguin Taps Immutable X for NFT Offering

Blockchain5 days ago

ConsenSys-Backed Virtue Poker to be Launched on Superstarter, SuperFarm’s Launchpad

Blockchain4 days ago

Bitwise Launches ‘Crypto Innovators’ ETF

Blockchain4 days ago

Elon Musk Pokes Massive Hole in the Bitcoin Market After Halting Bitcoin Payments at Tesla

Blockchain5 days ago

BitMEX Executives to Face Trial in March 2022

Trending