How Alpha Homora v2 Will Boost Yield Farmes Gains

Via its Twitter handle Alpha Finance Lab has announced the relaunch of Alpha Homora in its second iteration. To be deployed on Ethereum, the team behind this DeFi protocol has called the event a “milestone towards our mission to build and incubate an innovative Alpha ecosystem”.

After the launch, Alpha Homora’s ecosystem could see an important rise in adoption and growth for the platform, as the official post claims. Also, there will be a new set of partnerships already in discussion, amongst them Polygon for integration with its second layer solution and multi-chain platform, more protocol fees for ALPHA holders.

Users of Alpha Homora will benefit immediately after the launch with new features. Yield farmers will be able to leverage more pools on decentralized exchanges (DEX) Uniswap and Sushiswap. As a bonus, protocols Curve and Balancer will offer more opportunities to maximize profits for yield farmers and liquidity providers. Both users will have leverage available, according to Alpha Finance Lab:

The scalable architecture of Alpha Homora V2 means the platform can accommodate more leveraged pools than Alpha Homora v1. Furthermore, these extra leveraged pools will include stablecoin-based pools and many more, meaning leveraged pools will no longer be just ETH-based.

In addition, Alpha Homora v2 will integrate more assets, besides ETH and stablecoins USDT and USDC, to yield farm, provide liquidity, and borrow. Alpha Finance Lab is yet to announce which assets specifically will be available. The team adds the following:

from the yield farming side, the relaunch of Alpha Homora V2 will allow leveraged yield farmers/liquidity providers to use LP tokens as collateral! The ‘Bring Your Own LP’ (BYOLP) tokens feature supports LP tokens from Uniswap V2, SushiSwap, Curve, and Balancer.

Alpha v2 will use base and derivatives tokens, offer lenders new opportunities to increase capital efficiency with ibTokensV2. The protocol will operate with an oracle aggregator contracts. Therefore, they will feed their platform with multiple trusted oracle providers. DeFiance Capital’s Wangarian said the following on Alpha Finance Lab new product and its benefits for the users:

Users can now maximize the potential that leveraged yield farming provides without obtaining unnecessary short exposure. I am confident that traction for Alpha’s products will regain momentum.

Alpha Homora’s Migration From v1 To v2

Upon its launch, the protocol’s second iteration will go through a migration process. In that way, the positions and liquidity in the first iteration will be moved to the new platform. Alpha Finance Lab claims there will be a “smooth” transition for users.

Finally, the new version of these products is expected to provide an “enhanced” experience, “improved” security, and other features. The products, according to the team, will capture the demand not met in the traditional financial system.

ETH is trading at $2.409,66 with a 3.6% profit in the daily chart. In the weekly chart, ETH has 4.6% profit and 34.6% in the past month.

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ETH with small gains in the daily chart. Source: ETHUSD Tradingview

Weekly Decentralized Exchange Volumes Near $20B, Uniswap Captures Lion’s Share, Pancakeswap Trading Climbs

Weekly Decentralized Exchange Volumes Near $20B, Uniswap Captures Lion’s Share, Pancakeswap Trading Climbs

On Tuesday, the founder of the decentralized exchange (dex) Uniswap tweeted about the trading platform passing $10 billion in weekly trade volume for the first time. Decentralized trading volumes have grown massively, as dex platforms built on Ethereum have seen more than $18 billion in volume during the last week. Meanwhile, the dex Pancakeswap, an app that uses the Binance Smart Chain, has seen trade volumes skyrocket.

Uniswap’s 7-Day Stats Capture $10 Billion in Global Trade Volume

Decentralized finance (defi) has exploded during the last 12 months, as $58 billion in total value locked (TVL) is held in defi applications today. A great deal of this money is held on the Ethereum (ETH) blockchain, but a number of other blockchains are eating into this market.

Weekly Decentralized Exchange Volumes Near $20B, Uniswap Captures Lion's Share, Pancakeswap Trading Climbs
Seven-day and 24-hour dex trade volumes on April 21, 2021.

While liquidity pools are growing larger, dex volumes have grown immensely during the last few weeks as well. Hayden Adams, the founder of Uniswap, tweeted about a milestone for the dex he invoked as it recently captured $10 billion in seven-day trade volume.

“Uniswap weekly trading volume just passed $10b for the first time,” Adams wrote. “$10b/week is over $0.5 trillion per year,” he added. In terms of dominance using defipulse.com stats, Uni holds the third position in terms of TVL.

Weekly Decentralized Exchange Volumes Near $20B, Uniswap Captures Lion's Share, Pancakeswap Trading Climbs
Uniswap seven-day trade volume photo via Hayden Adam’s recent tweet on April 20, 2021.

Stats from Dune Analytics does not show Uniswap tapping the $10 billion mark, but awfully close at $9.7 billion. Dune Analytics has recorded $18 billion in dex-based swaps during the last week via 13 different dex applications. This includes Uniswap, Sushiswap ($3B), Curve ($2.1B), and 0x Native ($1.1B) respectively.

Alternative Chains See Demand

However, these days a dex called Pancakeswap, a platform that uses the Binance Smart Chain is pulling in significant trade volumes. It is becoming well known that the fees on Binance’s sidechain network are far less than Ethereum’s fees which have spiked considerably in recent times.

Weekly Decentralized Exchange Volumes Near $20B, Uniswap Captures Lion's Share, Pancakeswap Trading Climbs
Pancakeswap trade volumes on April 21, 2021.

Pancakeswap has seen over $4 billion in global swap volume during the last seven days and volumes have been increasing a great deal week over week. Pancakeswap’s biggest pairs this week include wrapped BNB/BUSD, safemoon/WBNB, and CAKE/WBNB.

Moreover, there are other projects seeing increased interest some of which are being constructed like Smartbch on BCH, others that have matured like Switcheo’s Demex, and projects just getting started such as Thorchain. Further, blockchains like Tezos, Polkadot, Cardano, and a number of others want a piece of the defi pie as well.

Additionally, the popular dex Uniswap has plans to launch version three (V3) during the first week of May. Uniswap V3 is expected to see a number of newly added features that could increase Uniswap’s volumes more so. Meanwhile, centralized exchanges (cex) platforms continue to face stronger competition from dex platforms coming from all sides.

What do you think about dex applications gathering major traction and significant trade volume during the past few weeks? Let us know what you think about this subject in the comments section below.

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Image Credits: Shutterstock, Pixabay, Wiki Commons, Hayden Adams Twitter, Dune Analytics, Coingecko,

Disclaimer: This article is for informational purposes only. It is not a direct offer or solicitation of an offer to buy or sell, or a recommendation or endorsement of any products, services, or companies. Bitcoin.com does not provide investment, tax, legal, or accounting advice. Neither the company nor the author is responsible, directly or indirectly, for any damage or loss caused or alleged to be caused by or in connection with the use of or reliance on any content, goods or services mentioned in this article.

One Week After Listing, How is Coinbase’s COIN Doing On Nasdaq?

Coinbase listing has been considered a historic event in the crypto community. On April 14, one of the largest crypto exchange and trading platforms in the world made its debut on Nasdaq via a direct listing. The impact of this was a surge in crypto prices, with Bitcoin going up to $64,800 a day before the listing went live.

At the end of the first quarter, the company released its explosive report on its earnings. Trading volumes topped $335 billion in the Q1 which was massive in comparison to 2020’s trading volume which was $193 billion. Total assets on Coinbase’s platform increased from $90 billion to $223 billion, nearly a 150% increase quarter-over-quarter. Active users on Coinbase also jumped from 2.8 million in the fourth quarter of 2020 to 6.1 million in the first quarter of 2021.

Upon listing, COIN’s reference price was set at $250. Just minutes after it got listed, it surged to $430 before wrapping up its debut on Nasdaq at around $328. Since then, COIN has continued to range between $320 to $345.

A Week After, Was The Coinbase Global Launch Just Hype?

For the crypto community, the listing of Coinbase on Nasdaq is an important event. It shows that cryptos have come to stay.

The listing is also a great indicator to regulators and financial experts who still believe that anything crypto is bad. Jelle Pol, project manager for oil and gas multinational Shell’s first three blockchain projects explained:

“COIN’s market capitalization now dwarfs the cumulative valuation of most of the world’s largest traditional stock exchanges, and they did it in years instead of decades. It is clear that they operate under the highest standards, otherwise, a Nasdaq listing would have been out of the question, so it seems that self-regulation, in this case, has paid off immensely.”

Since the listing, traditional institutional investors have also joined the party. New York-based asset management firm Ark Invest bought up more than 1 million shares, currently worth around $350 million.

Related Reading | Coinbase to Direct List on the Nasdaq on April 14th

It’s also worth mentioning that other venture capital firms such as Union Square and Andreessen Horowitz are some of the big backers behind Coinbase. Union Square invested in Coinbase at $0.20 a share, now worth more $4.6 billion. Horowitz owns about $9.7 billion in shares with Coinbase.

Insider activity also suggests that Coinbase employees and top executives have cashed in big since the listing.  Coinbase chief financial officer Alesia Haas sold some 255,500 shares at $388.73 per share while retaining certain options. Similarly, Brian Armstrong, the platform’s current CEO, sold 749,999 shares in three transactions at various prices, netting around $291 million. Despite this, the sellers still maintain strong ownership of their positions.

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Prices are still much lower than they were at launch | Source: NASDAQ-COIN on TradingView.com

The Future Of COIN On Nasdaq

Independent investment research firm CFRA have noted that Coinbase stock value may potentially grow by almost 20+% in the near term. This is expected due to growing adoption of crypto-enabled solutions across the globe and the exposure to institutional investors.

The analysts at CFRA have given three possible scenarios for the COIN. First, it’s possible that the price falls to settle around $120. Second, the price may stabilize after hitting the $400 range. Third, the price of COIN may skyrocket to $840 in the event of a bull rally.

Related Reading | Coinbase to Direct List on the Nasdaq on April 14th 

A week after the Coinbase listing, a representative for the company announced that Nasdaq started trading options for Coinbase Global, COIN.O. This will be  effective from April 20.

As it stands, it appears that COIN is poised to rise as there are fewer hurdles stacked against a surge, especially considering the rate at which crypto is going mainstream.

Price analysis 4/21: BTC, ETH, BNB, XRP, DOGE, ADA, DOT, UNI, LTC, BCH

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Balancer Labs Kicks Off Largest DeFi Bug Bounty Program

Balancer Labs Kicks Off Largest DeFi Bug Bounty Program

Balancer Labs, the foundation behind the Balancer Protocol, has offered the largest bug bounty prize on record in its attempts to root out vulnerabilities in its V2 Vault architecture. The foundation contributes to the Balancer protocol, which provides liquidity and offers users automated portfolio management.

The announcement of the record bounty program with a top prize of 1000 ETH (over $2M) comes as Balancer launches its most significant upgrade to date — the Balancer V2 Vault. 

The V2 Vault

The V2 Vault is a single vault that manages and holds all user funds entrusted to the Balancer protocol. The upgrade should help streamline transactions and reduce transaction fees on the protocol.

V2 smart contracts were made available to developers on April 20th. They offer the tools required for anyone to leverage capital efficiency in new and innovative ways. Since there is so much at stake, the Balancer team deemed it prudent to allocate ample resources to guarantee the security of V2.

To this end, the team has kicked off their lucrative bounty reward program to incentivize ethical hackers to identify any vulnerabilities in the V2 smart contracts. The Balancer Labs vulnerability tests are scheduled to take place in late April of 2021.

Building a Better and More Secure Balancer Protocol

The latest effort to fortify the V2 vaults by deploying a team of tech-savvy hackers to find bugs in the system shows that Balancer has learned from the past. 

In June 2020, the protocol suffered a devastating attack where hackers managed to siphon a half-million dollars in tokens by manipulating the smart contract of a staking pool.

The hack highlighted a worrying trend where malicious actors increasingly target Defi platforms. The latest example is DODO DEX, a DeFi project that suffered an exploit to its smart contract in March 2021.

A study done by CipherTrace revealed that 50% of attacks that occurred in the crypto sphere in H2 of 2020 were targeted explicitly toward DeFi Projects. The hacks on DeFi resulted in losses of up to $47.7 million.

These worrying statistics seem to have prompted Balancer Labs to intensify their efforts to safeguard their protocol. Balancer Labs CEO Fernando Martinelli noted:

“The more there is at stake, the higher we believe our bug bounty rewards should be. The bug bounty program empowers everyone in the developer community to help us build a better Balancer.”

Tech Firms Are Increasingly Using Bug Bounties 

Bug bounties are emerging as a creative way for security researchers to identify weaknesses in various systems. 

Tech-savvy developers are also cashing in big on these reward programs, which require them to find and report software and system flaws for tech companies. As per a recent BBC report, nine ethical hackers raked in a record $40m from bug bounties in 2020 alone.  

The Ethereum Foundation rolled out a bounty program that offered prizes of up to $50K last year. The process aimed to sniff out critical vulnerabilities found in the imminent ETH 2.0 network.

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Why Bitcoin Could Be The Key For The Future Of Clean Energy

Much has been said lately about Bitcoin’s impact on the environment. Mainstream media has been especially keen on declaring BTC’s consensus mechanism (Proof-of-Work) a potential danger for the future of the planet.

A White paper published by Square and ARK Invest, as part of “The Bitcoin Clean Energy Initiative”, makes the opposite case and argues Bitcoin is in fact a “key driver of renewable energy’s future”. The research paper claims Bitcoin mining along with renewable energy to facilitate an “energy transition”.

Thus, energy asset owners could become the “bitcoin miners of tomorrow” operating a resilient electricity grid. BTC miners have certain characteristics which can sustain this new energy model. First, miners are geographically agnostics, with a “flexible and easily interruptible load”, as the White paper claims.

As such, they are “unique energy buyers” appropriate to face the clean energy sector’s main challenges: low production when demand rises and intermittency. The research claims the following:

Bitcoin miners, on the other hand, are an ideal complementary technology for renewables and storage. Combining generation with both storage and miners presents a better overall value proposition than building generation and storage alone.

Bitcoin Leverage The Cleanest And Cheapest Form Of Energy

The Levelized Cost of Energy (LCOE), metric use to measure how expensive is to produce a type of energy, for solar and wind have seen a decline in the past ten years. The White paper claims solar energy cost has fallen by 90% and wind by 71%. Therefore, the cost without external factors (like subsidies) sits at about 3 to 4 cents per KWh and 2 to 5 cents per KWh, respectively.

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Source: Bitcoin Clean Energy Initiative Memorandum

In contrast, the same metric (LCOE) for fossil energy stands at 5 to 7 cents per KWh for coal and natural gas. The research adds:

(…) solar and wind are now the lowest cost and most scalable. What’s more, we believe they will only continue to get more affordable over time.

Bitcoin mining can be a “complementary” technology that leverages these cleaner and cheapest energy sources. The combination of the above with methods to store energy can lead to, according to the White paper, a migration of clean energy projects into “profitable territory” with benefits for investors.

Also, more flexibility to construct solar and wind projects. Sustainable with BTC mining, they can explore their integration with the main energy grid when “interconnection studies are completed”. Such energy sources can be resilient in “black swan events” providing the energy grid with “readily available excess”.

The miners can absorb this “excess” energy due to their “unlimited appetite” while a Lithium-Ion based storage, for example, can hold its capacity to meet the consumer’s demand during the day. In the long term, the White paper predicts a scenario where there will be a bigger need for electrical supply with the growth of electric vehicle use.

The model presented by Square and ARK Invest could boost the deployment of solar and wind energy sources. At the same time, turning the BTC mining industry into a much “sizable” and greener sector. Without the miners, the research estimates only 40% of grid power before prices must be increased to meet demand. The opposite case is more profitable and sustainable:

With bitcoin mining integrated into a solar system however, energy providers – whether utilities or independent entities – would have the ability to play the arbitrage between electricity prices and bitcoin prices, as well as potentially sell the “surplus” solar and supply almost all grid power demands without lowering profitability.

Bitcoin BTC BTCUSD
Source: Bitcoin Clean Energy Initiative Memorandum

BTC is trading at $55.394,97 with a 1.8% loss in the daily chart. In the weekly and monthly chart, BTC has a 12.9% and 3.8% loss, respectively. The market cap stands at $1.3 Trillion.

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BTC with small losses in the daily chart. Source: BTCUSD Tradingview

Coin Bureau: Ethereum ($ETH) Price Could Be ‘Above $4,000 by the End of July’

In a recent video, pseudo-anonymous crypto analyst and influencer “Coin Bureau” (“@coinbureau” on Twitter) explained why Ethereum ($ETH) is “so valuable.”

According to a report by The Daily HODL, he said:

Ethereum really is so exciting. I view it in the same way that those internet pioneers viewed TCP/IP back in the 1990s. However, this time around, we have an opportunity to invest in a protocol that has that much potential…  Ethereum is well-positioned to capture the value that’s being built on top of it. And as the fuel that powers the network, ETH is becoming an incredibly rare asset. The more the ecosystem grows, the more demand there is for ETH to power dApps (decentralized apps) and facilitate transactions…

If the Ethereum developers are able to effectively push EIP 1559 in the London upgrade, then we could easily see ETH above $4,000 by the end of July.

Data by TradingView indicates that Ethereum is currently (as of 18:40 UTC on April 21) trading around $2,406.97, which means that it is up 5.26% (vs USD) in the past 24-hour period. As for the year-to-date period, ETH-USD is up 226.36%.

Featured Image by “elifxlite” via Pixabay.com

The views and opinions expressed by the author, or any people mentioned in this article, are for informational purposes only, and they do not constitute financial, investment, or other advice. Investing in or trading cryptoassets comes with a risk of financial loss.

PancakeSwap eclipses Ethereum network in 24-hour transactions

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Facebook-Backed Crypto Diem Updates Launch Plan — Will Take a ‘Phased Approach’

Facebook-Backed Crypto Diem Updates Launch Plan — Will Take a ‘Phased Approach’

The cryptocurrency proposed by social media giant Facebook is gearing up to launch using a “phased approach,” its co-creator explains. The Diem Association, which oversees the crypto’s development, has been in talks with regulators to obtain a license.

Diem Updates Launch Plan

The Facebook-backed cryptocurrency “diem,” formerly called libra, is taking a “phased approach” to launch, co-creator and chief economist of Diem, Christian Catalini, told CNBC in an interview published on Tuesday.

The Switzerland-based nonprofit Diem Association, which oversees diem’s development, aims to launch a pilot with a single stablecoin pegged to the U.S. dollar this year, the news outlet reported, citing a person familiar with the matter.

This pilot will be small in scale and will largely focus on transactions between individual consumers, the person explained, adding that there may also be an option for users to buy goods and pay for purchases.

The Facebook-proposed cryptocurrency project has faced strong opposition from various regulators worldwide since it was first announced by the social media giant in June 2019.

The cryptocurrency was initially intended to be a universal currency tied to a basket of sovereign currencies, such as the U.S. dollar and the euro. However, after much scrutiny from regulators, the group revised its plan. It now aims to launch multiple stablecoins backed by different government-backed currencies, as well as one multi-currency coin.

Diem is now in talks with Swiss financial regulators to obtain a payment license. Catalini told the news outlet:

A big step of our dialogue with regulators has been a phased approach to launch. We are going to be phasing in different functionalities and use cases, applications in different areas.

He further described that all members will have to undergo extensive know-your-customer (KYC) checks. “Once we get the green light [from the regulators], we will start experimenting with a small number of users and a small number of players,” he clarified.

What do you think about Diem’s launch plan? Let us know in the comments section below.

Image Credits: Shutterstock, Pixabay, Wiki Commons

Disclaimer: This article is for informational purposes only. It is not a direct offer or solicitation of an offer to buy or sell, or a recommendation or endorsement of any products, services, or companies. Bitcoin.com does not provide investment, tax, legal, or accounting advice. Neither the company nor the author is responsible, directly or indirectly, for any damage or loss caused or alleged to be caused by or in connection with the use of or reliance on any content, goods or services mentioned in this article.