👀 ‘Russia’s Ethereum’ Loses Stablecoin Peg as Accusations of Ponzi Schemes Fly
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Waves' Market Turbulence Sparks Worries About Stablecoins
REVERSAL Waves, a Layer 1 blockchain known as ‘Russia’s Ethereum’, has suffered a reversal of fortune as accusations Ponzi schemes and market manipulation fly in a wild week of action. Sam Bankman-Fried, the CEO of crypto exchange FTX, even got swept into the drama as one of Russia’s major crypto plays went sideways.
SPECULATION The project’s native token WAVES began to surge a few days after Russia invaded Ukraine in February. This led to speculation that Russians were using the platform to circumvent Western sanctions after several of the nation’s banks were cut off from the Swift messaging system.
SOAR WAVES soared 600% to an all-time high of $62 on March 31.
By Owen Fernau
NEWS Mainstream adoption of cryptocurrencies just got a boost. MetaMask has announced that the popular crypto wallet will now support direct digital asset purchases with debit and credit cards by way of Apple Pay.
UPSHOT One upshot of the feature is that users will be able to directly seed their crypto wallets with digital assets, rather than having to go through centralized exchanges (CEXs) like Coinbase. CEXs are often seen as a grey area between decentralization and centralization — they are on-ramps to a decentralized economy but their servers are centrally owned just like any traditional company.
DECENTRALIZATION MetaMask is arguably more decentralized than traditional CEXs — Joseph Lubin, the co-founder of Consensys, which develops the wallet, has gone on record saying that MetaMask will “progressively decentralize.” With the new Apple Pay feature, users will be able to enter the crypto ecosystem further on the decentralization side of the spectrum.
London to Mint an NFT and Start Sandbox for Crypto
By Samuel Haig
EMBRACE As an early mover on embracing fintech, the U.K. pioneered the use of sandbox regulatory development for startups. It was an approach that sought to find common ground between entrepreneurs and regulators.
BOLD MOVE Now the British government is trying to do the same with crypto, and while the vote of confidence feels belated the policy’s support for stablecoins may be a bold move. On April 4, the U.K. Treasury recognized stablecoins as a “valid form of payment” as part of its plan to make Britain a global hub for crypto asset technology and investment.
MEASURES The government will also explore measures to bolster “the competitiveness of the U.K. tax system” regarding digital assets. The Royal Mint will even create an NFT to symbolize its commitment to fostering a positive business climate for crypto assets. And officials will study the legal status of decentralized autonomous organizations.
By Owen Fernau
SUBNET One of crypto’s most prominent GameFi projects, DeFi Kingdoms, now has its own subnet on the Avalanche blockchain.
VALIDATORS DeFi Kingdoms (DFK), which originated on the Harmony One blockchain, has deployed to an Avalanche subnet, a scaling solution that involves “a dynamic set of validators working together to achieve consensus on the state of a set of blockchains,” according to the smart contract platform’s documentation.
BRIDGE Synapse, a bridge protocol, has seen volumes surge as users move assets to DFK’s new subnet. Prior to Mar. 31, Synapse had never seen volumes top $157M. After DFK’s subnet launch, it more than doubled to a record $330M and accounted for 82.5% of the total bridging volume on Synapse.
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This conference aims to establish a common understanding on how DeFi-based markets might evolve from their current state, what role central banks might have, and the potential interaction with Central Bank Digital Currencies.
🔗 $15 Billion Rugpull Vulnerability in Convex Finance protocol Uncovered and Resolved: Open Zeppelin
TLDR: In late 2021, as part of a security audit for Coinbase, OpenZeppelin conducted a security review of the Convex Finance protocol.
🔗 SEC chair Gensler calls for more regulation on stablecoins and crypto firms' custody, market-making arms: The Block
The Securities and Exchange Commission is considering new firewalls for custody and market-making businesses at crypto firms and pushing for more SEC oversight of stablecoins.
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Tesla Taps MakerDAO-Powered Lender for $7.8M Real Estate Deal On March 30, 6s Capital, a commercial lender powered by MakerDAO, closed a real estate financing deal worth $7.8M for Tesla, the world’s leading electric vehicle company and the second-largest publicly-traded Bitcoin holder.
European Parliament Passes Bill Requiring Crypto Firms to KYC Non-Custodial Wallets European crypto firms may soon be forced to implement KYC (Know Your Client) procedures for non-custodial wallets that they transact with.
Vitalik Muses on How PoS Could Have Come Sooner All eyes are on Ethereum’s coming transition to Proof of Stake (PoS) consensus. It’s a historic moment in the history of crypto.
🧑💻 ✍️ Stories in The Defiant are written by Owen Fernau, Samuel Haig, DeFiDad, and yyctrader, and edited by Edward Robinson, yyctrader, and Camila Russo. Videos are produced by Robin Schmidt, Alp Gasimov and Daniel Flynn. Podcast is led by Camila, edited by Alp.
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