Category: DeFi

Decentralized Finance: Driving Towards Mass Adoption



Source: Block Data, 2021
Source: Block Data, 2021

It is the middle of 2022 and we are in the midst of another shock to the financial and crypto markets. We have seen that crypto is perhaps more correlated to the broader financial markets than we initially thought: Bitcoin is down ~70% from 2021 highs, hovering near prices not seen since 2020, while the Nasdaq is down more than 30% during the same period. Tech and crypto giants are announcing waves of layoffs amidst the shifting economic outlook. But as we enter another “crypto winter”, we are also seeing a profound resiliency from the crypto and web3 communities that are shifting into build mode.

As fintech investors, this is a signal that decentralization — the very promise that crypto offers financial services industry — is here to stay. This is a signal that we will soon move from decentralization for ideological reasons to decentralization for practical reasons — because it will in fact become cheaper, faster, and 10x better user experience.

We recognize that (Read more...)

Building Balanced Exposure to the Blockchain Economy



The following content is sponsored by MSCI

blockchain economy infographic

Building Balanced Exposure to the Blockchain Economy

Blockchain technology extends far beyond Bitcoin, Dogecoin, and other popular cryptocurrencies, as it provides a foundation for verifiable financial systems and proof of ownership for digital goods and assets.

From privacy concerns to anti-trust issues, big tech has eaten away at the world’s trust in the technology sector. As people search for better and more trustless solutions for their financial services, the blockchain economy is flourishing to meet their needs.

This infographic from MSCI outlines how quickly decentralized solutions and services have grown, and how investors can be a part of this exciting new sector.

The Three Key Trends of Blockchain Adoption

By cutting out the need for a centralized middleman that facilitates transactions, blockchains can provide more efficient systems to power three key trends of the fintech future:

  • Digital hard money and assets
  • Decentralized finance (DeFi)
  • Digital goods and collectibles

As the first cryptocurrency and deflationary monetary asset, Bitcoin is the ambassador for digital hard money. By having a fixed supply of 21 million bitcoin set in code and a decentralized network powering transactions on the network, Bitcoin provides anyone access to a deflationary digital asset that they can transfer in minutes without having to trust centralized intermediaries.

While Bitcoin pioneered the blockchain revolution over the past decade, further functionality built on blockchain technology is enabling digital goods and collectibles with non-fungible tokens (NFTs) along with more equitable and trustless financial systems through decentralized finance.

(Read more...)

How the Top Cryptocurrencies Performed in 2021


This post is by Niccolo Conte from Visual Capitalist


How the Top Cryptocurrencies Performed in 2021

The Returns of Top Cryptocurrencies in 2021

2021 saw the crypto markets boom and mature, with different sectors flourishing and largely outperforming the market leader, bitcoin.

While bitcoin only managed to return 59.8% last year, the crypto sector’s total market cap grew by 187.5%, with many of the top coins offering four and even five-digit percentage returns.

2021 Crypto Market Roundup

Last year wasn’t just a breakout year for crypto in terms of returns, but also the growing infrastructure’s maturity and resulting decorrelation of individual crypto industries and coins.

Crypto’s infrastructure has developed significantly, and there are now many more onramps for people to buy altcoins that don’t require purchasing and using bitcoin in the process. As a result, many cryptocurrency prices were more dictated by the value and functionality of their protocol and applications rather than their correlation to bitcoin.

CryptocurrencyCategory2021 Returns
BitcoinCryptocurrency59.8%
EthereumSmart Contract Platform399.2%
Binance CoinExchange Token1,268.9%
SolanaSmart Contract Platform11,177.8%
CardanoSmart Contract Platform621.3%
XRPCryptocurrency277.8%
TerraSmart Contract Platform12,967.3%
AvalancheSmart Contract Platform3,334.8%
PolkadotSmart Contract Platform187.9%
DogecoinMeme Coin3,546.0%

Sources: TradingView, Binance, Uniswap, FTX, Bittrex

Bitcoin wasn’t the only cryptocurrency that didn’t manage to reach triple-digit returns in 2021. Litecoin and Bitcoin Cash also provided meagre double-digit percentage returns, as payment-focused cryptocurrencies were largely ignored for projects with smart contract capabilities.

Other older projects like Stellar Lumens (109%) and XRP (278%) provided triple-digit returns, with Cardano (621%) being the (Read more...)

How the Top Cryptocurrencies Performed in 2021


This post is by Niccolo Conte from Visual Capitalist


How the Top Cryptocurrencies Performed in 2021

The Returns of Top Cryptocurrencies in 2021

2021 saw the crypto markets boom and mature, with different sectors flourishing and largely outperforming the market leader, bitcoin.

While bitcoin only managed to return 59.8% last year, the crypto sector’s total market cap grew by 187.5%, with many of the top coins offering four and even five-digit percentage returns.

2021 Crypto Market Roundup

Last year wasn’t just a breakout year for crypto in terms of returns, but also the growing infrastructure’s maturity and resulting decorrelation of individual crypto industries and coins.

Crypto’s infrastructure has developed significantly, and there are now many more onramps for people to buy altcoins that don’t require purchasing and using bitcoin in the process. As a result, many cryptocurrency prices were more dictated by the value and functionality of their protocol and applications rather than their correlation to bitcoin.

CryptocurrencyCategory2021 Returns
BitcoinCryptocurrency59.8%
EthereumSmart Contract Platform399.2%
Binance CoinExchange Token1,268.9%
SolanaSmart Contract Platform11,177.8%
CardanoSmart Contract Platform621.3%
XRPCryptocurrency277.8%
TerraSmart Contract Platform12,967.3%
AvalancheSmart Contract Platform3,334.8%
PolkadotSmart Contract Platform187.9%
DogecoinMeme Coin3,546.0%

Sources: TradingView, Binance, Uniswap, FTX, Bittrex

Bitcoin wasn’t the only cryptocurrency that didn’t manage to reach triple-digit returns in 2021. Litecoin and Bitcoin Cash also provided meagre double-digit percentage returns, as payment-focused cryptocurrencies were largely ignored for projects with smart contract capabilities.

Other older projects like Stellar Lumens (109%) and XRP (278%) provided triple-digit returns, with Cardano (621%) being the (Read more...)

Binance Labs leads $1.6M seed round in DeFi startup MOUND, the developer of Pancake Bunny



Decentralized finance startup MOUND, known for its yield farming aggregator Pancake Bunny, has raised $1.6 million in seed funding led by Binance Labs. Other participants included IDEO CoLab, SparkLabs Korea and Handshake co-founder Andrew Lee.

Built on Binance Smart Chain, a blockchain for developing high-performance DeFi apps, MOUND says Pancake Bunny now has more than 30,000 daily average users, and has accumulated more than $2.1 billion in total value locked (TVL) since its launch in December 2020.

The new funding will be used to expand Pancake Bunny and develop new products. MOUND recently launched Smart Vaults and plans to unveil Cross-Chain Collateralization in about a month, bringing the startup closer to its goal of covering a wide range of DeFi use cases, including farming, lending and swapping.

Smart Vaults are for farming single asset yields on leveraged lending products. It also automatically checks if the cost of leveraging may be more than anticipated returns and can actively lend assets for MOUND’s cross-chain farming.

Cross-Chain Collateralization is cross-chain yield farming that lets users keep original assets on their native blockchain instead of relying on a bridge token. The user’s original assets serve as collateral when the Bunny protocol borrows assets on the Binance Smart Chain for yield farming. This allows users to keep assets on native blockchains while giving them liquidity to generate returns on the Binance Smart Chain.

In a statement, Wei Zhou, Binance chief financial officer, (Read more...)