The emergence of several decentralized finance (DeFi) projects has taken up most of the transaction capacity of the Ethereum network. As a result, the blockchain has too much traffic and gas costs are substantially increasing, making it hard for users to transact on it. This congestion problem has made a negative impact on the broader DeFi space and is curtailing adoption.
In order to get around this concern, OIN Finance tapped on to the Ontology network, making it the first DeFi protocol built on the Ontology chain. Ever since they launched their project, developments have been geared towards making a vibrant community of users. But soon enough, they’ll deploy a system that can operate cross-chain.
The mission of OIN Finance is three-pronged: become a gateway for DeFi, promote DeFi, and support its growth into maturity. Renard Zhang, CEO of OIN Finance, sees the problems suffered by the Ethereum blockchain but believes in the promise of the DeFi products built there.
And in order to maximize the potential of these projects, Zhang and his team went on to build a new protocol patterned before the products and services created on top of the Ethereum network.
What is Oin Finance
OIN Finance is a decentralized liquidity pool exchange platform built on top of the Ontology network. Its main products and services follow the model behind most DeFi projects running on the Ethereum network, which are: lending and borrowing, exchanges, and stablecoins.
OIN Finance’s ecosystem functions through its native applications such as the OINSwap, OINLend, OINDAO, OINWallet, and the USDO stablecoin. And once the platform already deploys its bridge technology, these applications can start working cross-chain.
One of the interesting models patterned after Ethereum counterparts is the OIN Swap platform. It gives users the chance to conveniently build their own decentralized exchanges (DEX) with their own market maker. Users can contribute to the liquidity of the network by staking their assets in OIN’s pool.
Much like other DeFi platforms, they also offer yield farming opportunities through services like OINLend where users can lend or borrow assets to earn from interest fees or to leverage their funds.
The main focus of the team behind OIN is to nurture its Ontology community first. If they achieve the objective of avoiding the problems caused by network congestion and increasing gas fees, then adoption becomes easier.
For now, the steps OIN has been taking lean towards building a community of early adopters by incentivizing them to take part in the platform’s initial staking process. Once they have enough people to support the Ontology-based platform, scaling up becomes the next path forward.
Attributes of OIN Finance
While it is built on top of Ontology, its design covers cross-chain compatibility and some DeFi features. Here are some of them:
OIN is working on a bridge technology that will help link Ontology with other DeFi platforms built on Ethereum. Their goal is to help it grow along with other projects. Eventually, the cross-chain architecture of OIN Finance can help widen its services, offering more options to its users.
OIN implements the Tendermint consensus algorithm to achieve consensus without mining, but instead, using the Byzantine Fault Tolerance (BFT) system. This way, even if a third of its nodes fail, the network can still reflect an accurate state of its network. This puts an end to the potential risks of mining being concentrated among those who have the biggest network capacity.
A reward system supported by its own stablecoin also ensures a steady flow of incentives for nodes to work and continuously maintain a healthy state of the network.
Fast and Secure
Through the Merkle proof system, OIN can establish a quick validation process for each transaction initiated on the blockchain. This works by putting up small chunks of information leading up to a “root transaction” on the ledger to be used to validate a larger database of information.
OINSwap V1 Pool
The Ontology network will be OINSwap’s main platform. Through its V1 Pool, users can launch their DEXes to swap OIN tokens with other supported digital assets. The prices of assets listed on the pool is determined by supply and demand.
OINSwap V2 Pool
Following the implementation of its link with the Ethereum blockchain, OINSwap will start listing ERC-20 assets that can be traded on the platform.
OIN has its own hot wallet that users can use to store supported tokens or conduct other transactions within the network. Once the bridge between Ontology and Ethereum is already deployed, OIN Wallet can begin interacting with Ethereum.
In that scenario, Ethereum-based platforms, such as Curve, Balancer, or Compound, can be enjoyed by Ontology users as well.
The development of the platform is designed to support community governance for greater decentralization. Important protocol decisions are voted upon by OIN token holders.
OIN DAO, apart from its governance function, also has the authority to issue USDOs, OIN’s US-pegged stablecoin and the first of its kind on Ontology.
USDO is collateralized by ONT tokens and has its own pool in Ontology. And in order to issue a USDO, users have to deposit ONT tokens to a specified smart contract for collateralization. As of now, the initial requirement for collateralization to mint a USDO is 300% of the loan applied.
If the collateral backing the loan falls below 180%, they will undergo a “clearing” process. This works similarly with liquidations in other lending platforms where the assets collateralized are sold to the open market and its corresponding USDO is burned.
Yield farmers can choose to just deposit their tokens in OINSwap or OINLend pools to become liquidity providers.
There are no third-parties facilitating the exchange of tokens in lending and borrowing transactions. Through smart contracts, users just have to deposit tokens that will become underlying assets that back the platform.
From the tokens deposited in smart contracts, OIN mints tokens priced depending on the prevailing market conditions.
If users loan other digital assets available in OIN’s pool, they have to post a corresponding collateral of 150%. Lenders earn interest fees with parameters governed by smart contracts that factor in the market supply and demand.
For lenders, interest rewards are accumulated per block. A portion of those interest fees collected is kept in OIN’s reserves to back the system in the event of mass liquidations happen, as well as to give lenders the chance to withdraw their tokens if they need to.
OIN Chain facilitates the whole cross-chain model of the platform, making smooth and frictionless interoperability functions possible. Through OIN Chain, the Ontology network can be virtually supplied with tokens based on the Ethereum blockchain.
OIN Chain performs like a multi-functional adaptor that links projects on Ethereum and Ontology, including all other public chains that the platform will be supporting in the future.
Liquidity Mining and Staking
50% of all OIN tokens in supply will come from liquidity mining and staking. Stakers can contribute to the supply through USDO collateral pools that store assets in OIN DAO and OIN Lend.
When OIN tokens are generated by liquidity miners, they are supplied directly to OIN Swap’s liquidity pool. As soon as the cross-chain bridge is operational, OIN Lend’s pool can start accepting ERC-20 tokens from stakers.
Staking rewards will contribute at least 40% of all minted tokens every day, with the other 60% coming from liquidity mining rewards. This is only an initial set-up however since OIN DAO can vote to restructure the distribution for reward allocations later on.
A DeFi platform built on top of the Ontology network is new, but it is off to a promising start. One hindrance to many DeFi projects right now is the volume of traffic in the Ethereum platform. It affects adoption and the transactions it can handle. Surely, the community is looking forward to a new innovation that doesn’t suffer from the same bottlenecks.
If the OIN project proves to be successful, they can be one of the biggest competitors to earlier DeFi projects on top of the Ethereum network. But all in all, it is a win-win situation for the whole DeFi and crypto space.
For Big Investors, the Recent Bitcoin Drop Presents More Buying Opportunities
Bitcoin has fallen deeply into a state of oblivion. Once trading for well over $64,000, the world’s number one digital currency by market cap has lost nearly $20,000 in value since last month and is presently trading for just over $47,000.
Bitcoin Is Still Being Bought Up
Among many analysts is an attitude of gloom and doom. Some consider the end of bitcoin to be near, while other largescale investors – such as Michael Saylor of MicroStrategy fame – think that this is the perfect opportunity to add more bitcoin to their private and company stashes and buy up.
Saylor has recently come out and admitted that not long after Elon Musk announced his company would not be accepting BTC payments for goods and services, his company purchased another $15 million worth of the digital asset. The recent dip can likely be attributed to Musk’s sudden dismissal of BTC payments, which a lot of people in the crypto space were relying on.
This was going to be a major push forward in the world of BTC. It would be seen as a legitimate and mainstream method of payment considering such a huge, billion-dollar company would allow its usage alongside fiat and credit cards.
Sadly, it does not look like this is going to pass, and bitcoin has suffered as a result, but for people like Saylor, the present conditions offer more opportunities to take advantage of. In a tweet, Saylor announced his company’s recent purchase:
MicroStrategy has purchased an additional 271 bitcoins for $15 million in cash at an average price of about $55,387 per bitcoin.
Thus far, the company has accumulated nearly $2.5 billion in BTC over the past nine months according to a filing with the Securities and Exchange Commission (SEC). MicroStrategy was one of the first major institutions to pledge public support to bitcoin and initially began buying the asset in August of last year.
While Saylor looks at the recent situation as something positive for men like himself, others are expressing disdain with Elon Musk and the fact that he is constantly saying things that have large effects on bitcoin and its competing altcoin cousins.
Maybe It’s Time to Think Before You Talk
Dennis Kelleher – CEO of Better Markets in Washington – explained to reporters:
The problem here is that a loose cannon CEO continues to shoot his mouth off about any number of potential market-moving events. It is clearly grossly irresponsible, but it may not be illegal.
For the most part, there is no evidence supporting the idea that Musk does what he does or says what he says on purpose. It could be that he just simply does not realize his power within the industry yet. However, perhaps it is time he takes a breather and really thinks about his next steps regarding crypto, as it clearly has an effect on the rest of us.
Litecoin Price Prediction: LTC/USD Goes Bearish on a Correctional Note
LTC Price Prediction – May 17
Currently, a downward correctional move is ongoing at a higher pressure in the LTC/USD market activities. The US currency forces its worth on the crypto since May 10 while the base instrument hit resistance around a high value of $400. With about a 10.07% reduction presently in the crypto market, price now trades at around the level of $266.
Resistance levels: $320, $360, $400
Support levels: $240, $220, $200
LTC/USD – Daily Chart
The LTC/USD daily chart showcases a heavy downward price correctional movement as most of the vital support trading levels breached to the downside. An intense bearish candlestick is being formed in the space between the SMAs. That has led to the breaking down of the bullish trend-line and the 14-day SMA trend-line to the south. The 50-day SMA indicator is being approached by current falling pressure at the immediate support value of $240. The Stochastic Oscillators are now in the oversold region slightly pointing to the south within it. That still calls for placing position with cautiousness as there may soon be a change of trend in no time.
Will the LTC/USD current fall-off reach for support of $240?
Going by the current pace at which the LTC/USD market operations as regards the downward correctional moves, it is most likely that bulls will await price to either closely average or briefly touch past the immediate support level of $240 before considering launching a pull-up. That said, a bullish candlestick formation is needed to back up a reliable return of an upward move at that trading zone.
On the account of contradiction, as regards the market’s upside, bears would now have to consolidate their stance in the market to forcefully break down the $240 support level in a continuation southward pushes to see through some lower support trading lines. The smaller SMA indicator may not play along with the furtherance of downswing at the first instance of heightening pressure.
LTC/BTC Price Analysis
As of writing, the comparison trading capacity outlook between LTC and BTC as shown on the chart depicts that the counter instrument has only been able to hold back the base tool in a convergent trading cycle at higher zones. Yet, the trend is having it to favor of LTC as placed with BTC. The 14-day SMA trend-line and the bullish trend-line are over the 50-day SMA. And, they are all underneath the cryptos’ trading point. The Stochastic Oscillators have slantingly moved into the oversold region with a brief-pointing posture to the south. That indicates that the possibility that the base instrument may soon begin a push further to the north.
Iranian government to penalize crypto miners using household power
The Iranian government has now warned of hefty fines for those who will be caught mining cryptocurrencies using power intended for domestic use.
This after authorities registered a significant spike in electricity consumption for digital currency mining, further straining the already stressed hydropower generation caused by insufficient rainfall in the country this year.
The government said the illegal mining operations for virtual currencies that rely on electricity intended for households cause transformers to be overloaded, damaging the power grid. According to Tehran Times, Iranian Ministry of Energy spokesperson Mostafa Rajabi Mashhadi said unauthorized miners “will be fined when identified and held responsible for the damages they cause to the electricity network.”
Mining rapidly expanding in Iran
Back in 2019, the Iranian government legalized cryptocurrency mining, classifying it as an industrial activity.
In 2020, over 1,000 mining licenses were issued by the Ministry of Industry, Mining, and Trade, and power companies were provided with an avenue to increase their profits through meeting the industry’s power demands.
Selling electricity to cryptocurrency miners was seen as an option to fill the gap between revenues and expenditures in the electricity industry. However, with the current energy crisis being faced by the country, this move is now also being questioned.
Power consumption through the roof
Per the latest available data, the cryptocurrency mining sector in Iran consumes up to 1,500 megawatts of electricity each day. Back in December, this figure only sat at 300 megawatts. Authorities revealed that only around 200 megawatts of the current average daily consumption are legal.
Chinese companies have taken advantage of low and subsidized electricity prices in Iran to establish mining operations in the country’s Special Economic Zones.
The Ministry of Industry, Mines, and Trade estimates around $660 million worth of cryptocurrency is mined annually by unlicensed facilities in Iran.
Image courtesy of Cointelegraph News/YouTube
US Investment Bank Cowen to Offer Crypto Custody Services
Buterin Plugs UNI as Next Oracle Token
Which ‘green’ cryptocurrency is Tesla likely to add for payments?
Bitwise Launches ‘Crypto Innovators’ ETF
Elon Musk Pokes Massive Hole in the Bitcoin Market After Halting Bitcoin Payments at Tesla
Facebook’s Diem Enters Crypto Space With Diem USD Stablecoin
Venture platform Cognitive Blockchain invests in cross-chain compute network Cudos
Ethernity Chain Memorializes Tony Hawk’s Latest 540 Skate Trick With NFT
Vitalik Buterin Dumps His SHIB, Price Tanks 30% In 1 Hour
In Less than A Week, How Internet Computer (ICP) Climbed To The Top 10
The STC Token is Live – And Over 10 Crypto Exchanges are Ready for It
Diem parters with Silvergate bank to launch stablecoin in the US
DeFi Staple UMA Launches “Optimistic Oracle”
MicroStrategy Buys Another $15M Worth of Bitcoin at $55K
Here’s why Ethereum, AAVE, ALPHA are unfazed by Bitcoin’s latest ‘Elon candle’
Vitalik Buterin Has Dumped His Unsolicited Doge-Clones
Central Bank of Bahrain and JPMorgan to work on digital currency settlement pilot
Diem Relocates From Switzerland to the US to Launch an USD-Backed Stablecoin
Government Adoption: Cryptos are property in Texas, Hungary to cut taxes
AppSwarm’s DOGE division calls for a global dev teams to build off Dogecoin
Blockchain6 days ago
Palantir Accepts Bitcoin for Payments and Considers Adding BTC to Balance Sheet
Blockchain1 week ago
Ray Dalio’s Bridgewater CFO leaves to work on Bitcoin full-time
Blockchain1 week ago
Ethereum price closes in on $4K as Shiba Inu (SHIB) steals Dogecoin’s thunder
Blockchain1 week ago
CFO of World’s Largest Hedge Fund Joins Institutional Bitcoin Firm NYDIG
Blockchain1 week ago
Ethereum (ETH) Hits $3800 ATH As Coinbase Premium Shoots With Institutional Interest
Blockchain1 week ago
Crypto Banter Will Give Away Over $500K To 10 Eligible Community Members
Blockchain1 week ago
Legendary Pelé NFT Set to Drop on Ethernity May 8
Blockchain1 week ago