"We are sorry that we underestimated how illiquid NFTs could be in a bear market when setting the initial parameters," says the Bend DAO dev team.
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NFT lending protocol Bend DAO proposes emergency changes amid credit crisis
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On Monday, developers of decentralized nonfungible tokens (NFTs) borrowing and lending protocol Bend DAO proposed new emergency measures in an attempt to stabilize the ecosystem. The same day, it was revealed that the project had just as little as 15 wrapped Ether (wETH) worth $23,715 to pay back lenders. Approximately 15,000 ETH was lent using the mechanism. To save the protocol from a credit crisis, the Bend Dao dev team suggested that the liquidation threshold for collateral would be constrained to 70% of the loan value, down from 85%.
Next, the auction period for NFTs on its platform would be reduced from 48 to four hours. Then, the requirement for the minimum bid price of NFTs on Bend DAO to be pegged to 95% of the floor price on popular digital collectibles trading platform OpenSea would be removed. Interest rates on loans are to be reset from the current 100% to 20%. Finally, the BendDAO treasury would be empowered to cover the bad debts and use revenue.
The collapsing floor prices of NFTs in the bear market, even among reputable collections, have placed many NFTs in danger of liquidation as interest rates are driven to abnormal levels. As interest rates on "debt-secured" NFTs have skyrocketed to nearly 100%, some users may be finding it more economical to simply let go of their digital collectibles (which are also decreasing in value) instead of paying back the debt, resulting in bad loans. Thirdly, NFT markets are not as liquid as coins or token markets, meaning there actually may not be bids during an NFT's liquidation process, further adding to the death spiral.
Fed teases master accounts for crypto banks: Law Decoded, Aug. 15-22
The new guidelines from the Federal Reserve hold a prospect of “the most stringent review” for non-federally insured institutions.
Canaan exec says opportunity outweighs crisis as Bitcoin miners struggle with shrinking profits
This bear market is proving to be especially tough for Bitcoin miners, but Canaan senior vice president Edward Lu says the industry is “evolving toward a positive long term.”
Prosecutors want to claim NFTs as securities, alleges legal team of former OpenSea employee
“The government has brought the instant prosecution using ill-founded applications of criminal law to set precedent in the digital asset space,” said Nathaniel Chastain’s lawyers.
Facebook and Twitter will soon be obsolete thanks to blockchain technology
On Web2 — Twitter and Facebook — users do not own their own content or followers. That isn't the case on Web3, where our corporate overseers will become powerless.
Tencent receives patent for blockchain-based missing persons poster
The simple patent idea took three years to be granted regulatory clearance.
Cryptocurrencies react to Jackson Hole, Fed rate hike plans and a weakening bear market rally
The European stock markets and the United States equities markets are both deep in the red on Aug. 22 as investors fear that aggressive rate hikes may not be off the table.
Another thing keeping investors nervous could be the upcoming Jackson Hole economic symposium, which is scheduled to begin on Aug. 25. Investors are concerned that Federal Reserve chairman Jerome Powell could further elaborate on the Fed's hawkish stance and plans for future interest rate hikes.
This macro uncertainty has kept the institutional investors away from the crypto markets. CoinShares data showed that crypto investment products recorded weekly volumes of $1 billion, which is 55% lower than the yearly average.
Daily cryptocurrency market performance. Source: Coin360On-chain analytics resource Material Indicators said that Bitcoin (BTC) has not broken below the July lows. This suggests that the bear market rally is not yet over. However, buyers will have to push the price above the 200-week moving average of near $23,000 to gain the upper hand.
Could Bitcoin and most major altcoins make a strong comeback in the next few days and what are the critical levels to watch out for? Let’s study the charts of the top-10 cryptocurrencies to find out.
Cryptocurrencies react to Jackson Hole, Fed rate hike plans and a weakening bear market rally
The price action in Bitcoin, altcoins and stocks reflects investors’ anxiety over the Fed’s rate hike plans, a weakening bear market rally and this week’s Jackson Hole economic symposium.
Cryptocurrencies react to Jackson Hole, Fed rate hike plans and a weakening bear market rally
The price action in Bitcoin, altcoins and stocks reflects investors’ anxiety over the Fed’s rate hike plans, a weakening bear market rally and this week’s Jackson Hole economic symposium.
FCA highlights limited role as unregistered businesses continue to operate
Crypto.com has become the latest company to register with the United Kingdom's Financial Conduct Authority, while many continue to operate without approval.
FCA highlights limited role as unregistered businesses continue to operate
Crypto.com has become the latest company to register with the United Kingdom's Financial Conduct Authority, while many continue to operate without approval.
FCA highlights limited role as unregistered businesses continue to operate
Crypto.com has become the latest company to register with the United Kingdom's Financial Conduct Authority, while many continue to operate without approval.
Acala community votes to burn 2.97 billion of erroneously minted aUSD stablecoin
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According to a new post by Acala Network co-founder Bette Chen, the community has voted to burn 2.97 billion worth of Acala USD (aUSD) stablecoin.
Acala is a decentralized finance platform built on the Polkadot (DOT) ecosystem. The week prior, the price of aUSD fell to less than one-cent from its dollar-peg after it was discovered that 3.022 billion aUSD were erroneously minted through a misconfiguaration of the iBTC/aUSD liquidity pool, which went live on August 14.
The misconfiguration has since been rectified, and wallet addresses that received the erroneously minted aUSD have been identified via on-chain tracing. Over 99% of all newly minted aUSD remains on the Acala parachain. However, an estimated $9.69 million worth of funds were swapped from aUSD to DOT and sent to centralized exchanges.
Acala community votes to burn 2.97 billion of erroneously minted aUSD stablecoin
3.022 billion aUSD were previously minted via a liquidity bridge glitch.
Bitcoin whales attack sellers at $22.3K as euro drops below USD parity
Bitcoin struggles to make a return to higher levels despite geopolitical uncertainty striking the Eurozone.
Bitcoin whales attack sellers at $22.3K as euro drops below USD parity
Bitcoin (BTC) drifted near $21,000 on the Aug. 22 Wall Street open as the new week began without a rebound.
BTC/USD 1-hour candle chart (Bitstamp). Source: TradingViewEuropean commodity surge hammers euro
Data from Cointelegraph Markets Pro and TradingView showed BTC/USD failing to summon a comeback after last week’s 11.6% losses.
The pair put in fresh multi-week lows under $20,800 over the weekend, subsequently staging a modest relief bounce to circle $21,200 at the time of writing.
Anxiousness over European markets and the upcoming United States Federal Reserve Jackson Hole symposium contributed to a downbeat mood on risk assets. The S&P 500 lost 1.8% within two hours of opening, while the Nasdaq Composite Index shed 2.2%.
In Europe, gas and electricity prices surged again over fears that supplies from Russia could be throttled harder and sooner than expected.
Summer doldrums? Crypto volumes are down 55%, according to CoinShares
Bitcoin investment products, which include ETFs, ETPs and Grayscale’s GBTC, saw a third consecutive week of outflows.
Voyager creditors oppose $1.9M employee retention proposal
The creditors wrote that the employees are "already well-compensated" while its creditors struggle to pay their expenses.
Voyager creditors oppose $1.9M employee retention proposal
The creditors wrote that the employees are "already well-compensated" while its creditors struggle to pay their expenses.