DeFi Platform MANTRA DAO Partners with Polkastarter to Build a “Decentralized Future” Powered by Blockchain Tech

https://www.crowdfundinsider.com/2020/09/167283-defi-platform-mantra-dao-partners-with-polkastarter-to-build-a-decentralized-future-powered-by-blockchain-tech/

MANTRA DAO (distributed autonomous organization), a community-governed decentralized finance (DeFi) platform that aims to make staking, lending, and governance more accessible to traders and investors, has teamed up with Polkastarter, the decentralized or non-custodial exchange (DEX) that helps “decentralized” projects with raising and exchanging funds… Read More

The post DeFi Platform MANTRA DAO Partners with Polkastarter to Build a “Decentralized Future” Powered by Blockchain Tech appeared first on Crowdfund Insider.

Uniswap Launches UNI Governance Token with Community Airdrop

https://defirate.com/uniswap-uni-token/

Uniswap – the sector leading DEX – has released its UNI governance token with a community airdrop to anyone who has interacted with Uniswap prior to September 1st.

Underpinning the hottest governance token to date was a retroactive airdrop where any account that interacted with Uniswap V1 or V2 contracts received 400 UNI. Liquidity Providers also earned favorable rewards based on historical liquidity while the 220 holders of at least one $SOCKS (a tokenized Uniswap merchandise item) received 1000 UNI.

In total, 150,000,000 UNI – or 15% of the supply – was distributed through the community airdrop, broken down as follows:

  • 4.92% to all 49,192 historical LPs [49,166,400 UNI]
  • 10.06% split evenly across all 251,534 historical user addresses [100,613,600 UNI]
  • 0.02% to 220 SOCKS holders/redeemers [220,000 UNI]

To claim UNI rewards, simply head to Uniswap and look for the purple “UNI” box in the top right. Here you will need to submit a transaction to claim your rewards. Please note that 400 UNI was airdropped to any wallet which has ever interacted with Unsiwap, meaning many users may be eligible for multiple airdrops depending on the different number of wallets used.

 

UNI Liquidity Mining & Distribution

Starting tomorrow, four liquidity mining pools will open for UNI rewards. USDT, DAI, USDC, and WBTC pools will each earn an allocation of 5M UNI over the course of the next two months. This breaks down to 83,333.33 UNI per pool per day or 54 UNI per pool per block.

This intro to liquidity mining is set to be followed by formal governance over incentives after the first 30 days in which the community treasury (responsible for future liquidity mining rewards) will be vote on pools & allocations.

Outside of the liquidity mining rewards, UNI’s 1B supply is set to be broken down as follows:

  • 60.00% – Community [600,000,000 UNI]
  • 21.51% – Team  [215,101,000 UNI]
  • 17.80% – Investors [178,000,000 UNI]
  • .069% – Advisors  [6,899,000 UNI]

All team, investor and advisor tokens will be subject to four-year continuous locks, meaning tokens will unlock in real-time. Here’s a breakdown of how these tokens will enter the circulating supply over time.

Perhaps what’s most novel about the distribution is an ongoing 2% perpetual inflation set to kick in once all 1B tokens have been distributed. While this parameter is obviously malleable by governance, it sets a fantastic precedence for protocol sustainability.

With Binance and Coinbase both springing to list UNI less than 12 hours after launch, it’s clear that DeFi has a new cool token on the block.

In the wake of a SushiSwap attack, anon devs have now learned the golden rules of DeFi:

  1. Do not cross Andre Cronje
  2. Do not cross Hayden Adams

To keep an eye on Uniswap, follow them on Twitter or join the conversation on the governance forum.

The post Uniswap Launches UNI Governance Token with Community Airdrop appeared first on DeFi Rate.

Balancer Adjusts WrapFactor Through BAL Governance

https://defirate.com/balancer-governance/

Balancer – an automated liquidity and DeFi asset management platform – has passed a vote to change its liquidity mining distribution for pools with soft-pegged assets.

In the lastest BAL governance poll, tokenholders voted on whether or not to reduce the penalty for soft-pegged pools (sETH/wETH, USDC/DAI, wBTC/renBTC, etc.) to further incentivize useful liquidity. In the last round of votes, the community passed a vote to change the factor of soft-pegged pairs from 1 to 0.7 – effectively reducing the amount of BAL a soft-pegged pool would earn.

Today, the latest vote passed, shifting this factor down further to a 0.2x multiplier. As illustrated in the proposal:

“Liquidity in soft-pegged pairs usually attracts relatively little trading volume on Balancer while at the same time exposing liquidity providers to a lower risk of impermanent loss.”

Despite the last round of changes, it was not a drastic enough effect to see liquidity moved out of the protocol. Now, this latest round looks to make the sting on soft-peg LPs a bit harsher by reducing their rewards be another 50+ percent.

“We feel that liquidity composition on Uniswap is natural, while the composition on Balancer is highly skewed towards soft-pegged assets due to very generous rewards. We hope that liquidity composition will improve with wrapFactor 0.2.”

Why Does This Matter?

Interestingly enough, this pool ended up being one of the more contentious votes to date. Despite a final passing ratio of 94% Yes to 6% No, the majority of the voting period was spent on the fence split at 50/50 sentiment.

To paint some context on the opposing side, many (including myself) argued that a blanket wrapFactor harms useful liquidity pairs like sETH/WETH which are fundamental to maintaining Synth pegs in crucial DeFi protocols like Synthetix.

However, many countered that the vast majority of soft-peg pairs see little to no volume and that this proposal is more meant to address them instead of penalizing strong pairs like sETH/WETH.

Additionally, select community members voiced interest in shifting the penalty to be volume-based – meaning that the wrapFactor would be applied to soft-pegged pairs which accrue less than a certain threshold of fees. This too was countered by people suggesting this system was easily gameable and as a result, it seems clear that the vast majority of BAL holders are in favor of the new penalty.

BAL Governance Evolves

Taking a step back, this discussion shines a promising light on the future of Balancer and their liquidity mining distribution. We’ve now seen close to 10 different tweaks to the BAL distribution factors, all of which are honing in on the optimal allocations to pools which are truly benefitting the wider DeFi ecosystem in the most ways.

After seeing a constant decline since it’s listing price of ~$20, BAL seems to have found stable ground near the $10 mark, with new proposals like the BAL factor encouraging users to hold their BAL in exchange for a 1.5x multiplier when allocating it to any given BAL-based pool.

Next, we’re eager to keep an eye on where else BAL can offer added benefits to mitigate the amount of dumping from yield farming. If nothing else, the idea of continually tweaking the distribution model using BAL-holdings as a proxy is a promising step in the right direction of the now leading liquidity protocol holding over half a billion dollars in cumulative capital.

For soft-peg LP’s, please note that this proposal will go into effect starting tomorrow, August 3rd.

For more updates regarding this new update in tandem with all things Balancer, follow the project on Twitter or join the Discord for the most active conversations.

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DerivaDEX Raises $2.7M For Decentralized Derivatives Exchange

https://defirate.com/derivadex-exchange-raise/

DerivaDEX – a new DEX for derivatives contracts on Ethereum – is unveiling their new DeFi product along with announcing a $2.7M raise from leading investors.

DerivaDEX is aiming to build a community-owned exchange for traders to speculate on and hedge with a suite of leveraged derivatives products in a non-custodial, transparent nature in line with the ethos of DeFi. On brand with the current trend, the exchange will be underpinned by native governance token (DDX) which will be distributed to users via a liquidity mining model. While details are sparse, DerivaDEX is planning on launching in Q3 2020 while also kicking off a series of incentivized opportunities for early partners and adopters, including testnet competitions, insurance mining, and more.

With today’s announcement, the team also disclosed their $2.7M investment round led by some of the top investors and community members in DeFi. Notable names include Polychain Capital, Dragonfly Capital, Coinbase Ventures, Three Arrows Capital, Calvin Liu, and others.

In the broader lens, DerivaDEX is looking to bridge the gap at the intersection of trading and blockchain engineering to build an intuitive, secure, transparent derivatives exchange that can compete with the liquidity and UXs of centralized exchanges while providing the security and transparency of DEXs.

DerivaDEX is attempting to solve this with three core properties:

  1. DerivaDEX DAO – a decentralized autonomous organization responsible for managing the protocol and minimizing any single point of failure. The DAO will be governed by the protocol’s native token, DDX.
  2. Open Order Books w/ on-chain settlement: DerivaDEX’s system offers capital efficiency by building an order book market style with off-chain price fees, matching engine, and liquidation operators to solve for speed and efficiency. Moreover, this design enables the DEX to represent any asset in existence with minimal slippage.
  3. Liquidity Mining: DerivaDEX is aiming to leverage the emerging trend of liquidity mining to bootstrap and incentivize participation in governance and operations of the DEX.

Closing Thoughts

With current non-custodial derivatives exchanges dominated by dYdX along with the recent entrance of MCDEX, the DeFi derivatives exchange sector is starting to heat up. Given BitMEX’s historical dominance in offering perpetual swaps, there’s no shortage of an addressable market for these protocols either. Billions of dollars in volume are traded on a daily basis with these exchanges, so offering a non-custodial and entirely transparent alternative (with an intuitive UX) should be enticing for the DeFi community.

The cherry-on-top with the recent entrants of MCDEX and now DerivaDEX is the introduction of liquidity mining (or yield farming). Users can now earn some attractive rewards by using the respective exchange products, something that dYdX and CEXs at large currently lack.

As mentioned, the team is planning on launching a suite of incentivized programs for new users to test out the product. If you’re keen on getting involved, you can sign up here to be notified of any of the upcoming programs.

For more details on DerivaDEX, you can read up on their official announcement post here. And if you’re looking to stay up to date on the latest developments with the new exchange, make sure to follow them on Twitter!

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Injective Protocol raises $2.6 million to fund work on decentralized derivatives exchange

https://www.theblockcrypto.com/linked/73188/injective-protocol-dex-seed?utm_source=rss&utm_medium=rss

The team behind the decentralized derivatives exchange Injective Protocol has raised $2.6 million in a seed round led by Pantera Capital.

Injective Protocol, which was previously incubated by Binance, also garnered funding from a group that includes QCP Soteria, Axia8 Ventures and Boxone Ventures, among others.

The team behind Injective Protocol has previously said that it expects to launch on mainnet in the third or fourth quarter of 2020. The firm’s press statement also indicated that it will also issue its own dedicated token around that time. 

The funding comes as the ecosystem for decentralized exchanges continues to see rapid growth on the volume front. As previously reported by The Block, June was a record-setting month for volume, and current data indicates that July will see another record for overall trade volume on DEXs. Still, overall DEX volume is vastly exceeded by current activity on centralized exchanges.

Disclosure: Pantera Capital made a small equity investment in The Block’s last fundraise.

© 2020 The Block Crypto, Inc. All Rights Reserved. This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.