Welcome to the latest issue of Cointelegraph’s decentralized financial newsletter.
The new year is approaching, and people’s expectations for DeFi innovation, practicality, and mainstream adoption are higher than ever. Read on to learn about the inauguration story in 2022.
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Terra Research proposes new utilities for TerraUSD and LUNA
Terra, the decentralized algorithm stablecoin issuer, released an ambitious proposal through its research team this week Expand its cross-chain deployment of TerraUSD (UST) A stable currency across five projects of Ethereum, Polygon and Solana.
This lengthy governance post entitled “UST Goes Interchain: Degen Strats Part III” provides extensive details on the methods and procedures used by Terra’s native tokens. Luna, And can deploy $139 million TerraUSD (UST) to “bring excellent UST use cases for Ethereum DeFi.”
After 3,500 views and 6 responses from community members who call themselves Lunatics, Terra will deposit between $250,000 and $50 million in UST to improve the stability of each new partner project. It is expected that a community-led governance vote will be conducted to confirm confirmation in the near future.
DeFi liquidity provider and market maker Tokemak will receive US$50 million from UST within a maximum of six months, while lending platform Rari Fuse will receive US$20 million from UST during the same period. Convex Finance, a revenue aggregator, will receive US$18 million, while OlympusDAO will receive US$1 million in UST bonds and US$425,000 in LUNA awards for a period of three months.
The distribution of UST in many projects will support Terra’s accelerated quantitative goals, such as its market value in the stablecoin market.At the time of writing, Tether’s USDT Leading with approximately US$78 billion, Circle’s USDC Ranked second with 43 billion U.S. dollars, followed by Binance’s BUSD with 14 billion U.S. dollars, and finally UST with a market value of 10 billion U.S. dollars.
“Permanently bind the US$1 million UST to Olympus and 3,3 OHM”
-OlympusDAO (@OlympusDAO) January 6, 2022
In a recent tweet, Terra founder Do Kwon revealed his ambition to push the network-native asset UST to the forefront of the stablecoin market, ahead of the backbone of USD Coin, Tether and Binance USD (BUSD).
New service Aave Arc aims to increase the adoption rate of DeFi by institutions
Decentralized lending platform Aave (AAVE) Announce Launch of license-free loans and liquidity pools, Aave Arc, this week aims to promote more institutions to participate in fully regulated and compliant decentralized financial services.
Thirty organizations have gained access to the main whitelist of the service, including digital asset custodian Fireblocks, as well as Anubi Digital, Canvas Digital, SEBA Bank, GSR, and encrypted revenue aggregator Celsius.
After successfully completing prerequisites such as knowing your customers and anti-money laundering agreements, these companies will gain exclusive access to “safely participate in DeFi as liquidity providers and borrowers in a market that has soared 10 times in total value.” . 12 months-from 30 billion US dollars to 300 billion US dollars.
Stani Kulechov, CEO and founder of Aave, commented on the potential of expanding the DeFi market through the implementation of this new service, noting:
“DeFi represents a powerful wave of financial innovation, including transparency, liquidity and programmability-traditional financial institutions have not been able to obtain it for a long time. The launch of Aave Arc enables these institutions to participate in DeFi in a compliant manner. The first time.”
WonderFi acquired Bitbuy’s parent company for US$162 million
DeFi platform WonderFi Technologies agrees to acquire First Ledger Corp, The parent company of Bitbuy, Canada’s first regulated cryptocurrency exchange, spent US$162 million this week to expand the presence of cryptocurrency and DeFi across the country.
With the support of well-known billionaire investor Kevin O’Leary (Kevin O’Leary), WonderFi detailed its method of financing the acquisition by issuing 70 million new shares, paying $15.7 million in advance cash And $23 million in deferred cash. 12 months. In addition, the team stated that it will “retain almost all existing Bitbuy employees and sign employment agreements with key members of the management team.”
Bitbuy was established in 2016 and obtained the approval of the Ontario Securities Commission after November last year to become a fully regulated cryptocurrency exchange in Canada. The platform has more than 375,000 users and a transaction volume of more than US$3.4 billion. In May 2020, the Toronto-based exchange launched a global The first 1:1 Bitcoin deposit insurance plan For its customers.
Commenting on the importance of the licensing market in the digital asset ecosystem, Ben Samaroo, CEO of WonderFi, said:
“The integration of Bitbuy’s product suite will accelerate and expand the scope and scope that WonderFi can provide to the market, and will drive the company’s long-term growth and value.”
Analytical data shows that the total value of DeFi locked down slightly by 6.5% within a week to 131.8 billion US dollars, which is basically consistent with the overall market downturn.
Data from Cointelegraph Markets Pro TradingView shows that the top 100 DeFi tokens by market capitalization are mainly bullish The last 7 days.
Secret (SCRT) leads this week with 26.6%. Chain link (Associate) Increased by 24.2%, while Fantom (FTM) almost completely replicated last week’s gains, with a further increase of 23.4%. Yearning for financeYFI) And Dai-yes, stablecoins-this week ranked fourth and fifth with 8.2% and 0.03% respectively.
Interviews, close-ups and other cool stuff
Thank you for reading our summary of the most influential DeFi development this week. Join us again next Friday to gain more stories, insights and education in this dynamic development space.