📈 NFT-Backed Lending Surges with Record $1M-Plus Loans and 20% Interest Rates
Hello Defiers! Here’s what we are covering today,
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AUTOGLYPH The NFT-backed loan market is off the hook. The latest sign? A $1.42M loan secured by Autoglyph #488, an NFT produced by CryptoPunks’ creators, Larva Labs, was approved on Oct. 28. It’s the largest NFT-backed loan ever, according to Stephen Young, the founder of NFTfi, the peer-to-peer lending protocol that facilitated the transaction.
COLLATERAL The idea of using NFTs as collateral has been around since at least January 2020. That’s when Alex Masmej, a social token pioneer and member of Metacartel, the web3 community, proposed Rocket, a project which would facilitate loans backed by the tokens. That was followed by the fractionalization of NFTs — breaking the collectibles into more affordable pieces.
KEY PLATFORMS A raft of players are jockeying for position in the burgeoning market. Key platforms include Strip Finance, Banksea Finance, Drops DAO, Unbanked, which launched on Nov. 1, all of which provide some form of NFT-backed loan service as users look for liquidity while holding onto their assets.
Autoglyph #488 secured the biggest NFT loan to date.
THE NEWS After years of exclusively maintaining an order book-based decentralized exchange, Stellar (XLM) has launched automated market-maker (AMM) functionality native to its protocol.
PROTOCOL 18 Stellar’s Protocol 18 upgrade went live following a successful community on Nov. 3, enabling developers to launch front-ends and other applications utilizing the new AMM functionality. The Stellar Development Foundation (SDF) has urged devs to ensure all up-to-date software and SDKs are installed as previous versions are not compatible with Protocol 18.
FORMULA AMMs are decentralized exchange protocols that allow the permissionless creation of liquidity pools comprising two assets. An underlying mathematical formula is used to value the two assets against each other, while traders execute orders against the entire pool, and to which any user can provide liquidity.
INVERTEBRATE The next blessing of The Worm is coming, with a commemorative token raining down on the first Ethereans lucky enough to have been visited by the digital invertebrate.
ACOLYTES The Worm is a singular NFT and experiment giving and sharing digital art around the world, while also creating a collective narrative. The blessed token has visited 446 Ethereum wallets so far, sitting in its latest one now for almost two days. After 1,000 people have held the Worm, early acolytes will receive a new blessing: a special NFT limited to that early group
TECHNOMANCERS The Church of the Worm was launched by Ambition.wtf, a small NFT company that describes itself as a group of technomancers. The group previously released a procedurally generated cube series called Hexis, the CryptoPunks derivative CryptoJunks, and The Worm.
SATOSHIS The Worm is the non-fungible token equivalent of Bitcoin’s Lightning Torch, where Bitcoin fans passed along and added to a cache of satoshis (the smallest unit of Bitcoin) to prove the robustness of Bitcoin’s lightning network.
TLDR Top DeFi founders and VCs engaged in a lively debate on how the sector should be regulated and do business with traditional institutions during a panel called Rise of Resistance at the LA Blockchain Summit on Nov. 3.
SO WHAT Regulation is a critical issue that’s dividing the DeFi community. On one side are those who want to resist the rollout of what they consider overbearing oversight. On the other side are those who believe regulation is inevitable and embracing compliance is the wiser course.
OPEN DISCUSSION Derek Alia, the co-founder of Arbitrum-based derivatives exchange FutureSwap, asserted the DeFi sector should strive to work closely with lawmakers. “Ultimately we want to work with regulators as much as possible. Regulation at some point will approach DeFi,” he said. “I think the best thing would just be cooperation to make sure that we harness as much innovation in this space. I think the best thing the regulators could do is have an open discussion and try to understand what’s going on [in DeFi] so we can address the concerns.”
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The world’s biggest crypto exchange, Binance, has launched an inquiry into the Squid Game token (SQUID) to trace funds associated with the epic 45,000% pump and dump a few days ago.
🔗 Coinbase is testing a subscription service with zero trading fees and prioritized support: The Block
Crypto exchange Coinbase is testing a new subscription-based service that would give users access to enhanced features, according to materials reviewed by The Block.
Etherscan overhauls and expands core explorer functionality for Avalanche DeFi ecosystem.
Katana, the Ronin decentralized exchange, is live! Katana allows anyone to easily swap between the various assets within the Axie Infinity ecosystem.
Neon Labs @neonlabsorgFresh updates! 1/7 The Neon team is now testing the EVM smart contract with the new @solana node software v1.8. This is the last step before our #MainnetAlpha rollout 🔥 https://t.co/iHF6z3pNq7
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Own a .ETH Address? $ENS Tokens Are Headed Your Way in Major Airdrop ENS Domains, the protocol that issues and manages domain names on the Ethereum blockchain, has announced plans to issue a token and form a DAO to govern the future of the protocol.
DappRadar Exclusive Report: Play-to-Earn Revolution Leaps Beyond Axie Infinity with New Games and Tokens Generating income while playing a game sounds like a utopia for most of us. However, thanks to the play-to-earn movement, that scenario is not far from reality.
Governance of DeFi Giant Curve in Flux as Smaller Convex Exerts Control Even fairly sophisticated DeFi watchers might be baffled why so many are so obsessed with Curve, the automated market maker known for trading stablecoins.
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