We have seen decentralized finance grow exponentially in recent months and the TVL (total value locked) in DeFi protocols now stands at a jaw-dropping $24 billion. Amongst the projects that have contributed to the sector’s explosive growth in recent months is MANTRA DAO, a community-governed and decentralized DeFi platform that offers its users a wide range of services including staking, lending, stablecoins, derivatives, governance, grants, and custody.
Following its successful token launch, MANTRA DAO continued to make noise in the space throughout December, announcing a flurry of partnerships with the likes of BAND, LUNA, and KAVA being added to the list. As well as joining forces with some of the most exciting projects in DeFi, MANTRA DAO also began announcing the rollout of various DeFi products on its platform including soft governance, which allows the MANTRA DAO community to vote and propose changes to various aspects of the ecosystem.
In December the project reached a particularly notable milestone, with over 100 million OM tokens being staked natively on the MANTRA DAO staking platform since it’s unveiling just 2 months previously. The community was rewarded for being an integral part of the project’s success with the opportunity to own one of 88 rare MANTRA DAO NFTs being sold on NFT platform Rarible. The event sold out in 30 minutes, and proceeds from sales went back to the community.
One of the most exciting features to be announced in recent weeks by MANTRA DAO was their decentralized lending protocol ZENTEREST, which is an overcollateralized, money market, lending protocol enabling users of the platform to supply, borrow and use their crypto assets as collateral.
The Beta version of ZENTEREST was launched at the end of December 2020 and is a fork of both Compound Finance and Cream.finance, two well designed and successful lending protocols that have become popular in the DeFi space. Although utilising the best of both protocols, ZENTEREST will have its own unique set of listed assets that can be used for borrowing, lending, or the two combined. Various assets including the MANTRA DAO native OM token, ETH, wBTC, LINK, COMP, USDC, DAI, SNX, UNI, SUSHI, AAVE, LINK, YFI, 1INCH, and other smaller upcoming projects such as POLS, DSD, BONDLY, RSR, ROYA, etc. are available to users.
This is the first of various lending products planned to become available on the MANTRA DAO platform, with the second taking shape as a proprietary multi-asset CDP/stablecoin. KARMA Protocol, a decentralized credit rating system will be the third, and these products are set for release in Q1 and Q2 of this year respectively.
Developed to leverage the “knowledge and wisdom of the crowd”, MANTRA DAO is currently in the Parity Substrate Builders Program and besides offering a diverse range of DeFi products and services to its community, MANTRA DAO is a validator for several projects including BAND, Terra, Matic, ATOM, and most recently e-Money, a platform offering currency-backed, collateralized stablecoins.
MANTRA DAO is so far successfully delivering on promises outlined on a lengthy roadmap; the launch of lending products is another win for the platform’s already thriving community. With the future of DeFi looking more promising than ever, MANTRA DAO is set to become one of the sector’s success stories on the road to trustless, inclusive, and globally accessible financial products.
Polymarket binary trade under investigation by CFTC
- CFTC is scrutinizing the DeFi platform to ensure they abide by the rules.
- The prediction market platform has made a bold move by hiring the previous CFTC director to tow them in the right direction.
Polymarket, a DeFi platform in New York, has been placed under a microscope by the Commodity Futures Trading Commission (CFTC). The state agency that regulates the United States derivatives trade wants to investigate some irregularities within the DeFi platform.
The regulatory body wants to know whether Polymarket is allowing its clients to deal with binary inappropriately. The agency will also determine if the company will get listed with the regulatory authority.
Polymarket is working under a powerful team
The prediction market platform recently brought in former CFTC enforcement chief James McDonald. He left the role late last year after serving since April 2017 as the enforcement director. After stepping down, he joined Sullivan & Cromwell as a legal firm in New York. His experience will play a big part in the investigations.
A representative from Polymarket noted that they would cooperate with the regulatory authority and abide by the required directives. The company will give all information that the agency needs to make the probe smooth. By doing this, they can provide their customers with the best service.
Leading with diverse markets
Polymarket has facilitated almost 5 billion shares since its establishment. Currently, the company is in the process of raising some funds. According to an anonymous source, the money could see the firm rise to nearly $1 billion valuations.
The prediction platform allows users to predict upcoming events with various unique markets. The customers use the USD Coin stable token while making predictions.
Polymarket does not take positions against its customers and hosts the smart contract interface allowing users to link with the protocol.
At the end of last year, Polymarket got a $4 million funding round led by Polychain Capital. The development involved former Coinbase CTO Balaji Srinivasan, CoinShares CSO Meltem Demirors, and AngelList CEO Naval Ravikant.
Decentralized finance (DeFi) traders argue that smart contract interfaces should use different procedures from centralized exchanges. However, the CEO, Shayne Coplan, has not given light on the concerns.
Other platforms have also begun offering decentralized speculation markets like Polymarket. Augur established a Polygon deployment of its company less than a month ago.
Polymarket always strives to stand out among its competitors by providing diverse markets. The opponents include Augur, DoubleDown Interactive, Stox, and ZenSports.
Polymarket markets include opinions on covid-19 case numbers and CryptoPunks floor prices. Augur is built on Ethereum, and its markets are more concentrated on crypto price predictions and contests.
DeFi Lending: Understanding the ins and outs of decentralized lending
What is DeFi Lending?
Decentralized finance is a blockchain technology that eliminates the use of intermediaries like brokers and decentralized ledgers. This type of finance offers anybody willing to earn interest and profits through trade using digital assets. Most assets used for trading in decentralized finance are a result of a cryptocurrency platform called Ethereum. It is also responsible for most decentralized finance applications.
Instead of intermediaries like banks in traditional finance, Defi is enabled by smart contracts and protocols directed by AI and computer algorithms. While some think it cannot go mainstream since some traders do not accept crypto coins and tokens due to the fear of volatility, statistics do not support the same. According to Defi Pulse, there is 83.05 Billion USD locked in DeFi today. DeFi has also brought about a significant improvement to the blockchain.
How DeFi Lending works
DeFi lending provides a chance for trade between two parties and can only involve a trusted third party if the APIs allow. With the use of this criterion of finance and smart contracts, P2P ending is possible. A crypto investor can enlist his crypto coins for lending on the crypto platform and lend out to another investor by use of protocols. This type of lending is becoming a trend because of how trustless and transparent it is.
A borrower is supposed to create an account on the cryptocurrency platform then ensure that he has an active wallet. He is then supposed to open smart contracts that are supposed to guide how the lending is expected to happen.
Defi lending allows the lender to earn interest from the loans. One can borrow money at a specific interest rate. It is also helpful as it serves financial services while giving back to the cryptocurrency community. It is beneficial to both lenders and borrowers because borrowers can access crypto loans quickly, and the lender earns a yield from investments instead of watching wealth sit in one’s wallet. Lenders are like investors who deposit their money in lending pools like banks in centralized finance.
Various ways can be used for an investor to access their interest and from borrowers. Moreover, different liquidity pools have different borrowing approaches, so an investor needs to research the pools.
Borrowers are expected to offer something of equal or more value compared to the loan amount provided. This is used as collateral during loan payments. Depending on the borrower, a wide variety of crypto tokens can be offered as collateral for the loan.
Benefits of DeFi lending
Decentralized finance is advantageous in different ways. These are;
- Unlike traditional banks, the processing speed of crypto coins is fast
- Decentralized finance complies with the law of the land
- There is an availability of helpful analytics that a borrower can use to tell the best lender and vice versa
- DeFi is permissionless
- There is transparency in their services
As DeFi targets to go mainstream, it is advisable to try its services like lending to compare it with the usual way of things; it might just be your niche!
Open DeFi Notification Protocol Aims to Help Traders Manage Risk
October 21, 2021 — Decentralized public blockchain platform Orbs has announced the launch of the Open DeFi Notification Protocol, a product designed to supply users with free mobile notifications for consequential on-chain events.
The chain-agnostic protocol originated from the DeFi.Org Accelerator, a joint venture between Orbs, cryptocurrency exchange Binance, and wallet provider Moonstake. The Accelerator helps founders launch the next wave of innovation in decentralized finance, providing liquidity, mentorship and exposure to market players.
The Open DeFi Notification Protocol – which is Orbs’ newest contribution to the venture – leverages contributions from community members to record events such as accumulated pending rewards, price swings, near liquidations, stop loss, contract upgrades, new governance votes, and more.
In gaining access to such data, DeFi users including traders and liquidity providers can better manage their activities and avoid losses, particularly during periods of market volatility. With a simple 30 minute integration on Github, any DeFi project can furnish its users with free mobile notifications, a feature that may help them gain an edge on rival protocols.
‘Transparency is a hallmark of blockchain, yet reliable mobile notifications that can aid the DeFi community are virtually nonexistent,’ says Orbs Co-Founder Tal Kol.
‘Our talented team has created a user-friendly protocol that functions almost like a reactive DeFi assistant, alerting users to the possibility of impending liquidations, significant price swings, contract upgrades and the like. We are positive it will make a huge impact.’
Although the initial beta version of the Open DeFi Notification Protocol will use a centralized node to track and display the various updates, Orbs intends to launch an updated version that utilizes the eponymous network’s set of independent nodes to aid further decentralization.
With the Open DeFi Notification Protocol, users can set up any number of alerts for different defi apps, with the ability to integrate an open-source web component directly within many dApps’ frontend architecture. Users simply downloads the mobile app “DeFi Notifications” for iOS or Android and scan their address QR in MetaMask (or the position QR in the app’s UI). No registration is required. An example video of the Protocol working with Sushi has already been uploaded to Orbs’ official YouTube channel.
Orbs is a public blockchain infrastructure designed for mass usage applications and close integration with EVM-based L1’s and L2’s such as Ethereum, Binance Smart Chain (BSC), Polygon, Solana and Avalanche. The Orbs protocol is decentralized,executed by a public network of permissionless validators using Proof-of-Stake (PoS) consensus and is powered by the ORBS token.