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  • The DeFi ecosystem is growing at a pace that can only be described as frenetic and now, Tezos Capital is poised to take advantage of this.
  • To tap into the opportunities decentralized financing offers, the CEO of Tazos Capital Jonas Lamis has announced the launch of StakerDAO.
  • This is a decentralized autonomous organization (DAO) that will be able to make decisions on blockchains it should stake for.

 

The DeFi Gravy Train

DeFi or decentralized finance aims to create financial instruments that are decentralized and incapable of being controlled by governments and institutions. Such instruments will be more stable and more difficult to misuse for political or economic aims. The likes of Ethereum and Bitcoin are actually one of the first DeFi applications, with both being under the control of massive computer networks, rather than authoritative central authorities looking to destroy their enemies.

 

DeFi aims to play a vital role in reconstructing the global financial system in a transparent and yet permissionless manner. DeFi has the potential to make global financial systems less fragile and much more transparent and resilient than they currently are.

 

DeFi Aims High

The growth in the use and value of DeFi has seen firms rush to take advantage of what it makes available. Data released by DeFi Pulse states that around $700 million is currently secured within DeFi smart contracts, which is a lot. Most of that is in the MakerDAO ecosystem, which is derived from Ethereum.

 

MakerDAO functions as a DAO and makes it possible for people to borrow DAI stable coins. MKR token holders are tasked with ascertaining the pertinent collateralization ratio, as well as the applicable interest rate.

 

StakerDAO is well-positioned to enable STKR holders to reap benefits from the inherent DeFi protocol. Token holders can vote and decide which Proof-of-stake networks they can join, to make the most of their investment.

 

As it is built on the Tezos platform, the protocol limits the typical single token dangers that limit other systems. More, the capability of moving from one PoS network to the next will make it possible for STKR holders to maximize their staking rewards and limit their risk potential.

 

 

Decentralized Governance Is All The Rage

Tezos Capital CEO Jonas Lamis is also the main developer of StakerDAO. He is said to have meshed two viable ideas into one, with this being eminently worthy of contemplation and admiration. 

According to the man himself, he examined

“opportunities to create synthetic derivatives from the PoS ecosystem that could provide the long term upside that I envisioned, while also spreading the downside risk across the best PoS networks,” 

 

Additionally, Lamis appears to have become very aware of the importance, role, and effects of governance. To that effect, Tezos currently has an amazing 80% on-chain governance participation rate.

 

Lamis has also recognized the role and importance of an active community that is committed to the ambitious principles of decentralized and on-chain governance. He says:

“I was watching governance evolve on Tezos and MakerDAO and saw that having a community of informed and incentivized decision makers guiding the long term growth of projects is likely a better model than tight centralized control.”

 

StakerDAO was originally conceptualized and outlined in the last quarter of last year. Plans call for it launch in the first or second quarter of this year. It is to be expected that demand for it will be very high, with this further advancing the rise of DeFi as a global phenomenon that could force governments and central banks everywhere to be more honest and responsible.

 

Andreas Waechter , 2020-01-21 05:30:00 ,

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NewsBlock © 2019 - 2020 All rights reserved.

NewsBlock © 2019 - 2020. All rights reserved.


While Bitcoin’s price seemingly moves without rhyme or reason — collapsing by dozens of percent and embarking on face-melting rallies on a whim — the cryptocurrency market is filled to the brim with fractals.

Related Reading: Analyst: Bitcoin Price Likely to Fall to Low-$8,000s as Chart Remains Weak

A brief aside: A fractal, in the context of technical analysis and financial markets anyway, is when an asset’s price action is seen during a different time. This form of analysis isn’t that popular, but it has proven to be somewhat valuable in analyzing Bitcoin.

One recent fractal popularized by a well-known cryptocurrency trader is implying that BTC is going to return to the low-$7,000s in the coming days.

Bitcoin Fractal Implies Retracement to Low-$7,000s

A well-known crypto trader going by “Tyler Durden” on Twitter recently posted the chart below, which shows that a Bitcoin price fractal may be playing out. The fractal has four phases: horizontal consolidation marked by one fakeout, a surge above the consolidation phase, a distribution, then a strong drop to fresh lows.

If the fractal plays out in full, BTC could reach the low-$7,000s again, potentially as low as $7,100. This would represent a 20-odd percent collapse from the current price point of $8,800.

It isn’t only a fractal that is hinting Bitcoin has the potential to visit its lows. As we reported on Saturday, Bloomberg believes that if the GTI Vera Convergence Divergence Indicator flips red, a downtrend could push the cryptocurrency back to $7,300.

Related Reading: Stephen Colbert Pokes Fun at Bitcoin in Monologue: Mainstream Gone Wrong?

Can Bulls Step In?

But again, many believe it is irrational to have such bearish interpretations of the cryptocurrency’s chart at the moment. As reported by NewsBTC earlier, Popular crypto trader Mayne recently noted that the “people waiting for $6,000” are irrational. He quipped that Bitcoin retracing and consolidating after its fourth-biggest bull move in history ($7,300 to $10,500, a 42% gain) is perfectly par for the course, but noted that it’s totally possible we can go lower from $8,800.

The medium-term technicals support this.

Trader and CoinTelegraph contributor FilbFilb found that by the end of November or start of December, the 50-week and 100-week moving averages will see a “golden cross,” which he claims is far more significant” for the Bitcoin market that other technical crosses.

Also, a Bitcoin price model created using Facebook Prophet machine learning found that the leading cryptocurrency is likely to end the year at just over $12,000. What’s notable about this model is that it called the price drop to $8,000 months in advance, and forecasted a ~$7,500 price bottom for BTC.

To put a cherry on the cryptocurrency cake, Crypto Thies observed that when Bitcoin bottomed at $7,300, it bounced decisively off the 0.618 Fibonacci Retracement of the move from $3,000 to $14,000, which correlates with the two-week volume-weighted moving average. He added that summer 2019’s consolidation was marked by Bitcoin flipping major resistances into support levels, implying that a bullish reversal and subsequent continuation is likely possible in the coming weeks.

Featured Image from Shutterstock


Nick Chong , 2019-11-10 12:00:38

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