Your Cryptocurrency Newsletter for December 18, 2020

If you are interested in cryptocurrencies, this newsletter is for you. [img]  [Learn more about RevenueStripe...](   [Learn more about RevenueStripe...]( [img]( [FeedBinary Newsletter]( [Here’s How Decentralized Finance Is Being Redefined]( Usually when people think of the decentralized finance (DeFi) system, we are looking at a new and a modern approach towards everything finance.While there is no denying that the new concept could be facing some salient challenges that could affect its overall impact, DeFi would definitely affect the future of money. What challenges does the DeFi industry face today? Many Defi products offer unrealistic profit rate or revenue generation: Many Defi projects are guilty of promising their users an absurd level of profit with some of them going as far as luring users by offering them more rewards for their little investments. Many of these users do not know or understand how their invested money appreciates during its stay in the pool and as such, many are of the belief that such systems are unsustainable. This is why some users have continued to view the DeFi field with lots of scepticism and suspicion. Lots of DeFi projects are still not user-friendly: Traditional financial systems are able to offer users a wide variety of ways to make money. The truth is however, that not all people have access to them. DeFi also offers many ways to make money but this time, the tools are available for all. The downside is that users who want to have multiple investment options for their finance at once, have to switch between as DeFi projects. This makes them carry out the same repetitive and monotonous function of researching while also paying a transaction fee at each solution, which damages efficiency – and requires patience.The lack of holistic solutions that would offer multiple investment options has turned many users away from the sector. Only few DeFi projects are audited and compliant with the necessary regulations: DeFi projects are mostly run on smart contracts that have automated all forms of transactions. There is little to no human interference on how such transactions by human employees of the defi projects. As such, users need to believe that these Defi projects would do exactly as they say, which is why there is always a need for their smart contract to be audited by major smart contract auditing firms in the industry. Not just that, users want to be sure that what they are doing is legal in the face of the law and that there is no probability of the authorities waking up one day and haunting the team so that all users flee, breaking down the system. These requirements are not always met by DeFi projects and some of them are still working under the cloak of darkness. This has driven quite a number of users away from the sector as they’re not comfortable relying on the code and processes that have not been vetted by anyone. So, if DeFi projects have these challenges, how would they change the future of money? The answer to that lies in the new Defi projects that are kicking-off these days. These projects are learning from the mistakes of their older counterparts from the earlier days of DeFi while leveraging the best practices of the industry. One of the especially promising companies that is poised to play a crucial role in the maturing of DeFi is Nimbus. Nimbus made its name as a Fintech company with repute after it delivered blockchain-based financial solutions to 50,000 unique users within a year.  Nimbus is launching a new DeFi Ecosystem that provides users with access to IPOs, startup financing, P2P lending and other opportunities that are currently not even possible in fiat money for common people. The beautiful thing here is that all of this can be accessed via just one native token of the platform: NUS. Multiple investment opportunities in one spot All in all, NUS shall unlock 10 different earning strategies with different profitability levels for people worldwide. Finally, you will no longer have to switch between platforms in search of good opportunities. Instead, Nimbus offers it all in one spot. Cutting-edge technology for tried-and-true investment opportunities Moreover, unlike many other DeFi projects, Nimbus platform offers realistic and understandable revenue generation models. It leverages the best tools and investment opportunities that traditional finance has to offer, but in a decentralized manner. This brings back the funds control to users but at the same time, does not compromise the profitability, as these tools have proved themselves over decades. Pool technology for risk and upside optimization It also enables users with any investment sum to participate. What creates this opportunity is the fact that dApps accumulate users’ funds in pools and then invest them in a diversified manner on the other side of the pool. This mitigates the risk of losing all your funds and increases your potential upside thanks to the fact that the investment gets highly diversified – be it between different startups, or between different IPOs, or perhaps all at once. [Read Full News]( The post [Here's How Decentralized Finance Is Being Redefined]( first appeared on [Feed Binary](. [Read Full Story]( ------------------ You Might Like     [Learn more about RevenueStripe...]( ------------------ [Wrapped ETH Comes to Tezos as It Takes on Ethereum DeFi Market]( StableTech has brought wrapped ETH tokens to the Tezos blockchain in a bid to win over DeFi users sick of high fees on Ethereum. StableTech, a Tezos development group, launched wrapped Ethereum tokens this week, allowing the value of ETH to be transferred to the Tezos blockchain.Tezos is targeting DeFi users frustrated with high fees and slow transactions on the Ethereum network. StableTech raised seed funding in October to speed up DeFi development and win over users before Ethereum 2.0 is fully functional. Wrapped tokens have already brought millions worth of value to the Ethereum blockchain. Now, Tezos is trying a similar strategy, debuting wrapped Ethereum on the Tezos blockchain to get in on the DeFi action. ETHtz tokens went live on the Tezos mainnet December 12, allowing Tezos users to trade native tokens pegged to the price of ETH, according to a post from Wealthchain CEO Kevin Mehrabi. Wealthchain is one of the businesses that make up StableTech, a group of developers dedicated to advancing DeFi on the Tezos blockchain. With wallets, block explorers, and exchanges already up and running, the addition of ETHtz is the latest effort from Tezos to draw DeFi activity away from the Ethereum network and onto its own blockchain as a lower-fee alternative. DeFi, short for decentralized finance, represents a group of blockchain-based applications that replicate or enhance the functions of traditional financial institutions, without the need for a centralized third party like a bank or broker. Instead, they use automated blocks of code, known as smart contracts, on a blockchain network to facilitate financial functions like loan issuances, asset swaps, and interest payments. DeFi also popularized the concept of “wrapped tokens” with products like Wrapped Bitcoin and renBTC. Wrapped tokens lock digital assets like Bitcoin in a custodial account or smart contract protocol in exchange for producing a 1:1 replacement of the token on an alternative blockchain, like Ethereum or Tezos. Since June 2020, the “total value locked” (TVL) in DeFi protocols has increased from just $1 billion to more than $16 billion, according to DeFi data aggregator DeFi Pulse. TVL measures the value of digital assets contributed as collateral and liquidity across the DeFi ecosystem, and is a commonly used measure of the overall size of the budding industry. Most of the industry is built atop Ethereum. But the ETHtz announcement notes that transaction fees on Ethereum have increased sharply when many users try to use the network at once, eating into profits and causing some transactions to take much longer than normal—or even fail. “A transaction on Tezos now costs not even 1% the cost of a similar transaction on Ethereum,” according to the release. “It marks the beginning of a sea change for DeFi,” Wealthchain (a StableTech contributor) CEO Kevin Mehrabi told Decrypt. “It’s a solution for Etheruem holders to be able to trade ETH without depleting it in outrageous gas fees. It also shows that we’re in it to win it.”Combined with the introduction of wrapped ETH tokens, Tezos could be one of a handful of Ethereum competitors to capture part of the DeFi market, even if only as a backup when Ethereum transaction fees are elevated. DeFi on Tezos received support in October by way of a seed investment from VC firm Draper Goren Holm. Earlier in May 2020, StableTech released USDtz, a USD-pegged stablecoin built for the Tezos network that laid the groundwork for the growth of DeFi within the Tezos ecosystem. Tezos already uses a flavor of proof-of-stake consensus for processing blockchain transactions, allowing transaction throughput more than double the approximately 15 transactions per second Ethereum can currently handle. In the next few weeks, StableTech is expected to release TEZEX: Bridge, a cross-chain token wrapping service that will make it easy to mint ETHtz from ETH tokens, with Tezos-wrapped Bitcoin to soon follow. Tezos Finance is also planned for a Q1 2021 release, offering automated lending services to Tezos users similar to Compound or Aave services on Ethereum. The ongoing upgrade to Eth2, which promises to bring lower fees and faster transaction speeds to Ethereum, could take a bite out of the appeal of DeFi on Tezos, or any other blockchain for that matter. But full functionality for Eth2 doesn’t have a planned release date yet, and completing the phased upgrade could still take years. That gap could create a big opportunity for Tezos or other Ethereum competitors to win market share, as DeFi activity has already pushed the Ethereum network to its limits with a relatively small number of users. Should DeFi go mainstream, Tezos could be in a good position to accommodate the overflow and pull ahead as the preferred DeFi alternative to Ethereum. [Read Full News]( The post [Wrapped ETH Comes to Tezos as It Takes on Ethereum DeFi Market]( first appeared on [Feed Binary](. [Read Full Story]( ------------------ You Might Like     [Learn more about RevenueStripe...]( ------------------ [Litecoin, Dogecoin and Large-Cap Altcoins Rally as Bitcoin Price Hits $23.8K]( Bitcoin’s surge to $23,800 triggered strong rallies in large-cap altcoins like Litecoin and Dogecoin. Litecoin (LTC) and Dogecoin (DOGE) are rallying strongly as Bitcoin (BTC) fights to stay above $23,800. Many analysts say the surge in large-cap altcoins is directly connected to Bitcoin’s price action and historical data shows the two tend to move in tandem when BTC goes through bull and bear cycles. As altcoins begin to show signs of newfound momentum, traders are becoming even more confident in the strength of BTC’s trend. Throughout December, altcoins stagnated against Bitcoin, particularly as BTC struggled to break out of the $18,000 to $19,400 range but this was in an environment plagued by low volume.At the time, the cryptocurrency market’s volume was on the decline as Bitcoin continuously rejected a $19,400. As such, most of the volume went towards BTC and the altcoin market was temporarily deprived of trading activity. Bitcoin’s break above $20,000 reignited interest in Litecoin and Dogecoin Historically, after a major Bitcoin rally, altcoins that existed in 2011 to 2014 tend to surge. These cryptocurrencies include the likes of Litecoin, Dogecoin, and XRP. One of the major reasons behind this altcoin rally is volume. Traders like to pump up altcoins, causing the volume to spike within a short period, and fuelimassive volatility. Since these cryptocurrencies have significant historical relevance, when a rally starts, their momentum typically lasts longer than other obscure, smaller-cap altcoins. Litecoin, as an example, rallied by over 57% in the past 7 days. In the same period, Bitcoin rose by 34%, despite surpassing $23,800 on major exchanges. One positive trend analysts have spotted is that altcoins are not seeing extreme volatility as they did in 2017. A pseudonymous trader called MoonOverlord said:One thing that never happened on this run was people panic dumping their $ALTS everytime $BTC moved 5% In 2017. I swear to god you’d look up, bang, alts would be -25% on a 4% BTC move it was awful. Tether and stables really didn’t even exist so you had to be $btc OR $alts. Are fundamentals driving the current surge? According to Qiao Wang, a quant trader and DeFi researcher, Litecoin is not necessarily ‘digital silver’ in the same way analysts view Bitcoin as ‘digital gold’. Since its launch, the go-to argument in favor of Litecoin was that it could act like silver if Bitcoin becomes gold 2.0. Wang said:If you are new to crypto, bought BTC, and are wondering which cryptoasset is silver to BTC’s gold. It’s not LTC. It’s ETH. The other day Paul Tudor Jones used an interesting analogy from the metals world to categorize cryptoassets. There are precious crypto. And there are industrial cryptos. BTC is precious. ETH is industrial. LTC is neither. Litecoin has various strong fundamental factors that could cause the market sentiment around it to improve. For instance, the Litecoin team is enabling MimbleWimble, a privacy solution initially designed for Bitcoin. However, these fundamental factors are not sufficient enough to fuel a 57% rally in a week. The primary reason behind the abrupt rally of large-cap altcoins is likely a volume play by high-net-worth investors and traders looking to make a quick buck in the aftermath of a Bitcoin rally. [Read Full News]( The post [Litecoin, Dogecoin and Large-Cap Altcoins Rally as Bitcoin Price Hits .8K]( first appeared on [Feed Binary](. 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