This Week In DeFi
Decentralized Finance or DeFi, as it is popularly stylized, is an innovative force to be reckoned with in the finance space. Based on the blockchain network, the defining attribute of DeFi is its lack of reliance on any central authority or intermediary for finance decisions. DeFi is an umbrella term for all those financial services and applications on the public blockchain, usually Ethereum. It is a fast-growing industry, with new updates every week. This week’s edition of This Week in DeFi will walk through some of these additions and what makes them so exciting.
August 23- PayPal Launches the Ability to Buy, Hold and Sell Cryptocurrency in the UK
For the first time, payment platform giant PayPal is allowing users in the United Kingdom to buy, hold, and sell from four different cryptocurrencies. Effective over the next few weeks, this launch will allow users to choose to provide payment from the cryptocurrencies Bitcoin, Bitcoin Cash, Ethereum, and Litecoin on both the website and the mobile app.
In addition, there will be an added ‘crypto tab’ to the platform, which will feature real-time cryptocurrency prices, frequently asked questions about cryptocurrencies, and a guide on the potential risks surrounding them. This is a great achievement for crypto enthusiasts, as a high-profile platform like PayPal integrating cryptocurrency in their services is a defining step towards turning it mainstream.
August 24- Sushiswap Joins the Avalanche Rush Project
The popular decentralized finance (DeFi) exchange platform Sushiswap has announced that it will join the smart contract platform Avalanche’s $180 million liquidity mining program known as Avalanche Rush. Avalanche is a proof-of-stake blockchain created by Ava Labs and is known for its claim to process over 45,000 transactions per second.
The aim of the project is to increase interest in Avalanche’s DeFi platform, which is gaining traction in recent weeks. Already partnered with lending protocol Aave and automated market maker Curve, the participation of Sushiswap is an exciting addition that will increase the overall functionality of the project.
August 25- Cryptex Expands List of Countries for Cash Withdrawals
Cryptocurrency exchange platform Cryptex allows users to easily buy and exchange coins belonging to various cryptocurrencies in a safe and quick manner. The platform has many advantages. It is high security, charges low commission, boasts a simple interface, and has a prompt support service on standby to resolve any queries.
Cryptex has added three new countries to its list countries for cash withdrawals. These countries are the European nations Estonia, Lithuania, and Latvia. This raises the total number of locations where cash withdrawal is possible through Cryptex to more than 12 countries across Europe and the United States.
August 26- Pyth Network Launches Mainnet Beta
Pyth Network is a decentralized data oracle based on the blockchain Solana. The goal of Pyth Network has always been to bring the HiFi (high-fidelity) market to the DeFi space. There are not very many available sources of financial market data, and those that are available are often tightly controlled or inaccessible. The oracle brings pricing data for more than 30 assets. These include cryptocurrencies, traditional equities, commodities, and fiat currencies. The network delivers updates every 400 ms and Pyth has partnered with dozens of institutional data providers to make this all possible.
With Pyth Network’s proposed oracle network, a decentralized cross-chain market of verifiable data will be available from high-quality nodes. Having the beta version of the oracle be launched onto the mainnet is a game-changer, as it is the first step in providing DeFi the data it needs for smarter smart contracts and better financial services.
August 26- Aave Announces Plans For Cross-Chain Governance and Open Sourcing the Aave UI
Aave is an open-source and non-custodial DeFi protocol that allows users to lend and borrow crypto assets. By depositing digital assets into liquidity pools, lenders can earn interest. Then, using this liquidity borrowers can take out a flash loan, with their own crypto as collateral. A unique point of Aave is that it also serves as a governance token. This means that holders of Aave have a say in any future development of the protocol.
This announcement introduces cross chain-bridges for governance which is a novel concept. This will facilitate decisions taken across different networks and protocols by Aave users. In the same announcement, it was also revealed that the Aave UI will now be open-sourced. This allows anyone around the world to contribute to and improve the current Aave user experience.
September 2- Ether Rises to Above $3800
Ether is the transactional token facilitating operations throughout the Ethereum network. It is the token by which payments are made on the Ethereum network. The token has been climbing in value for the past couple of days, reaching over $3800. This is an almost 7% jump in just 24 hours. This rise in value is incredibly financially beneficial for holders of the coin, giving a return of over 700% over the past year. Bitcoin, Ether’s largest competitor, only gave a 300% return in comparison, making Ether the better performing coin.
September 7- El Salvador Becomes First Country to Legalize Bitcoin as a Currency
The Central American country El Salvador has announced that Bitcoin as a currency is now legal. The country has purchased 400 Bitcoin, collectively worth over $20 million. This news was revealed by the president of El Salvador Nayib Bukele in a series of tweets. The news is followed by the government of El Salvador declaring Bitcoin a legal tender. This means that Bitcoin can be used as a mode of payment for anything, including paying taxes.