Fun

News Feed - 2023-07-06 08:07:00

Tom Mitchelhill29 minutes agoOn-chain derivatives are DeFi’s next boom opportunity — Apollo CapitalWith centralized exchanges coming under increasing scrutiny, Henrik Andersson has touted the promise of decentralized derivatives.114 Total viewsListen to article 0:00InterviewJoin us on social networksOn-chain derivatives are set to become the next big growth sector in the decentralized finance (DeFi) space, says Henrik Andersson, the chief investment officer of Australian crypto investment firm Apollo Capital.


In a wide-ranging interview with Cointelegraph, Andersson said he thinks the increasing popularity of decentralized spot trading will inevitably lead to outsized demand for decentralized derivatives.“The first decentralized spot exchanges were launched roughly six years ago. Decentralized perpetuals and futures trading is much newer, so there is a high growth opportunity to be had with on-chain derivatives.”


Andersson explained decentralized spot exchanges have continuously gained market share from centralized exchanges — a trend that has only increased since the collapse of FTX in November last year.


During May’s memecoin frenzy, daily trading volume on decentralized exchanges (DEXs) such as Uniswap evenbriefly eclipsed that of mainstay centralized crypto exchanges like Coinbase.


Months later on June 7, trading volumes on DEXs again surged, going well over 400% following the SEC’s crackdown on Binance and Coinbase.


“In the last year we"ve seen Uniswap trade more daily volume than Coinbase and if you look at the overall market share [of DEXs], it"s still small, but it"s gaining ground,” Andersson said. “On a monthly basis, we"re doing over $50 billion in spot volume on DEXs.”


In June, futures trading accounted for nearly 80% of the entire crypto market’s trading volume across centralized exchanges. Andersson said he sees this futures-heavy trend being replicated in DeFi as well, and lauded on-chain derivatives as the “best product-market fit” the DeFi space has seen in years.“Most of the volume is in futures, so there"s an even greater growth opportunity for on-chain derivatives.”


Outside of decentralized derivatives, Andersson also mentioned two emerging market sectors that have piqued his interest in recent weeks.


The first is NFTFi — blending nonfungible tokens (NFTs) and DeFi — that allows investors to rent, borrow and fractionalize NFTs as well as create derivative and prediction markets based on them.


Describing the nascent sector as having a “strong investment narrative,” he claimed DeFi investors will inevitably end up utilizing NFTs for a wider range of functions.


The second emerging theme is LSDFi, which bootstraps the utility of Liquid Staking Derivatives (LSD) tokens such as Lido staked ETH (stETH) and Rocket Pool staked ETH (rETH) by allowing investors to borrow, speculate and hedge against their LSD tokens.


Related:Over $204M lost to DeFi hacks and scams in Q2: Finance Redefined


In the wake of Ethereum’s Shapella upgrade the popularity of LSDs has grown rapidly, with LSD protocols as a category surpassing DEXs in terms of total value locked (TVL), according to data from DeFiLlama.The top ten protocol categories by TVL. Source: DeFiLlama


“We have seen a growing number of protocols use staking derivatives as collateral in DeFi and I think we’ll see much more of that going forward,” Andersson explained.


With the LSD space gaining momentum, Andersson made it clear that the market will need to combat worrying levels of centralization among certain staking providers and create a more balanced array of protocols.


“Lido is a bit too dominant for Ethereum itself. We want to have a larger pool of potential stakers and protocols providing that service,” he said. “All of us in the space would like to see not just more protocols themselves, but a more diversified environment altogether.”


Magazine:Tornado Cash 2.0 — The race to build safe and legal coin mixers# Business# Australia# Decentralization# Derivatives# Decentralized Exchange# DeFi# NFTAdd reactionAdd reactionRelated NewsCan memecoins be used as real currency?Binance caves to pressure over coin listings, scoring a win for privacyChibi Finance $1M alleged rug pull: How it happenedTokenized FTX claim is used as collateral for a loanCrypto Travel Rule implementation ‘remains relatively poor,’ says FATFItaly’s central bank calls for framework to prevent stablecoin runs

News Feed

Amaka Nwaokocha2 hours agoTether unveils mining software to boost efficiency and capacityThe recently introduced Tether BTC mining software’s primary aim is to enhance the efficient management of mining capacity.1100 T
HectorDAO files for Chapter 15 bankruptcy in the US
Vince Quill3 hours agoHectorDAO files for Chapter 15 bankruptcy in the USThe decentralized autonomous organization was first impacted by the collapse of the Terra ecosystem in 2022 and suffered $16.4 million in losses.38
Man Jailed for Role in $25 Million Ponzi Scheme Involving a Failed Crypto
Man Jailed for Role in $25 Million Ponzi Scheme Involving a Failed Crypto A South Florida federal district judge has sentenced Jose Angel Aman to 84 months in pr
Warren Buffett Changes Mind on Gold: He Will Panic-Buy Bitcoin at $50K, Says Max Keiser
Warren Buffett Changes Mind on Gold: He Will Panic-Buy Bitcoin at $50K, Says Max KeiserWarren Buffett has changed his mind about gold as an investment, prompting some people to thin
Silk Road Bitcoin Seizure: Analytics Firm Claims Tokens Worth Millions Still Outstanding
Silk Road Bitcoin Seizure: Analytics Firm Claims Tokens Worth Millions Still Outstanding Analytics firm Coinfirm says the US Department of Justice (DOJ)’s
Bitcoin reaches new US dollar high: From top to bottom and back in 846 days
Tristan Greene6 hours agoBitcoin reaches new US dollar high: From top to bottom and back in 846 daysBTC briefly crossed its 2021 U.S. dollar all-time-high to reach $69,000.1791 Total views4 Total sharesListen to article
Ezra Reguerra13 hours agoPlatypus DeFi loses $2.2M in another flash loan exploitThe attack marks the third time Platypus has been exploited in 2023, with one incident taking $8.5 million in February and another taking $1
Tom Mitchelhill7 hours agoPolygon gas fees spike 1,000% amid Ordinals-inspired token crazeGas fees on the Polygon network reached as high as $0.10 during a mad rush to mint an Ordinals-inspired token called POLS.2802 Tot
RBI Deputy Governor: Banning Crypto Is ‘Most Advisable’ for India, Regulation Is ‘Futile’
RBI Deputy Governor: Banning Crypto Is "Most Advisable" for India, Regulation Is "Futile" A deputy governor of India’s central bank, the Reserve Bank of India (RBI), likens
Ranked Wall Street Analyst, Founder of altFINS, Democratizes Crypto Investing
Ranked Wall Street Analyst, Founder of altFINS, Democratizes Crypto Investing sponsored The Fair token launch gives its community an equal opportunity to participate in lieu of easy
Prime Minister Modi’s Twitter Account Hacked — Tweets Bitcoin Legal Tender in India, Government Giving Away BTC
Prime Minister Modi"s Twitter Account Hacked — Tweets Bitcoin Legal Tender in India, Government Giving Away BTC The Twitter account of Indian Prime Minister Narendra Modi was com
Turner Wright2 hours agoUS senators reintroduce crypto bill aimed at comprehensive regulationThe Responsible Financial Innovation Act will establish guardrails “to prevent another FTX-style event from occurring” in t