12 September 2020

Dipping your feet in any new unbounding technology can feel surreal, even utopic. Shuffling between apps and earning handsome returns from digital assets that would otherwise be static has closed that loophole. The impermanent loss—a new definition in DeFi circles, is about to be erased and the opportunities presenting itself to traders and farmers continue to expand.

Directly fanning this understandable excitement are events that wouldn’t have been thought to be impossible a few months ago. DeFi rose nine-fold from $1 billion in the first frenetic wave of Feb 2020 before shrinking and then exploding to spot levels of around $8 billion according to stats.

Coinbase Pro to List the YFI Token

With revenue to be made, Coinbase Pro didn’t want to miss out. From Sep 14, its traders will begin trading the YFI token. 

The governance token of the Yearn Finance, the fourth largest DeFi dApp with $780 million worth of ETH under management, now trades at $38,147 a pop, up 17 percent in the last 24 hours. Often, with the expectation of listing, Coinbase-supported projects tend to rally on listing day in a phenomenon aptly described as the “Coinbase Effect.” 

Question is: considering the deflationary nature of the YFI token combined with the Yearn Finance’s rolling out of interesting products like an algorithmic stablecoin backed by USDT, and the huge possibility of the “Coinbase Effect”, will the “worthless” governance token soar to $50,000, or 5X BTC price?

The Uniswap-SushiSwap Debacle: The Rise of Protocol Politicians

While Yearn Finance’s fundamentals are “strong”, the DeFi industry is definitely indie and largely experimental. 

Primed with millions of dollars, weeks old projects dangling governance tokens tend to attract millions within days. However, some fail. A new project, Yfdexf.Finance (a fork of Yearn Finance) exit-scammed with over $20 million of user’s funds early this week. 

And another huge DeFi project competing with Uniswap for top honors was thought to be doing the same. Only theirs was more “nefarious”. 

The SushiSwap project under the anonymous “Chef Nomi” attempted a “Vampire Attack” following their liquidity migration on Sep 9. Their sucking of liquidity from Uniswap saw it become the largest AMM in Ethereum with over $1.2 billion in assets under management. 

On the flip side, Uniswap’s liquidity fell by over 70 percent to $400 million but has since doubled to over $800 million. 

The creators of SushiSwap were criticized as being opportunistic and attempting to leech liquidity from Uniswap with a goal of destroying and eventually handing over control of a technically trustless exchange to elements controlling a centralized exchange. 

Despite their attempts, Uniswap is bouncing back strongly, emboldened, and there are rumors of Uniswap listing their native governance token in the next release to wade off competitors who “fork” from their open-source code.

IRS Offers $650K Bounty to Crack Privacy Coin

Privacy coins like Monero sealed the loopholes of Bitcoin’s pseudonymity.   Monero transactions for instance are hard to track. This represents a challenge not only to the U.S Secret Service but to tax agencies in the country. 

The Internal Revenue Service (IRS) is troubled by Monero and privacy coins in general claiming the platform provides a haven for tax evaders and is a vehicle for illegalities. To tackle this, they are now offering a $650k bounty for anyone who will crack their code.

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Edmund McCormack
Tech industry veteran and blockchain technology investor. Simplifying cryptocurrency for almost a decade.

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