For the DeFi community
this week Stablecoin issuer circle Announced Launch of Eurocoin (EUROC), a new stablecoin fixed to the euro. The new token will start as an ERC-20 token on the Ethereum network, will be available from June 30th, and will be expanded to other blockchains later this year.
1 / CIRCLE LAUNCHES EURO COIN: Today we announced the second major fiat money, the Euro Coin. It will be published on the Ethereum mainnet and will be available for mint and redemption on June 30th. https://t.co/vPZkItL0Fu
— Jeremy Allaire (@jerallaire) June 16, 2022
Centralized lending platform Celsius Freeze user withdrawal This week I quoted the turbulent market conditions. This move has raised widespread concerns throughout the ecosystem due to the company’s known liquidity issues and the significant size of Celsius. CEO Alex Masinsky says the company is working “non-stop” to address the issue, but some state regulators say Start investigation To the company.
Just In: Regulators in Alabama, Kentucky, New Jersey, Texas and Washington have begun investigating the Celsius network.
— Watcher.Guru (@WatcherGuru) June 16, 2022
Cryptographic hedge fund ThreeArrowsCapital (3AC) is the latest large entity Faced with solvency issuesThe company is reportedly unable to handle margin calls for positions on multiple platforms.According to sources, FTX, Deribit, BitMEX have it all Liquidated 3AC positionThe fund reportedly employs legal and financial advisors to assist in repayment plans for creditors.
One of the largest crypto venture capital companies:
Three Arrows Capital.
They are going bankrupt.
This can be catastrophic for Crypto, with a potential $ 18 billion managed.
Here’s a timeline of what’s happening and the possible consequences:
↓ ↓ ↓
— DeFiEdge 🗡️ (@thedefiedge) June 16, 2022
Lido Stake ETH (stETH) Continue to raise concerns While its value deviates from ETH, token liquidity continues to be depleted. Both Celsius and 3AC are recognized as large holders of stETH, and if further holdings need to be liquidated, a self-reinforcing downward spiral of stETH can occur.
You need to worry about why stETH and the ETH “peg” break.
1 / x
— Degentrading (@hodlKRYPTONITE) June 11, 2022
Cryptographic market cleanup seems to have reached a critical mass as cracks are beginning to appear in over-leveraged and poorly managed companies across the industry. These are also not small entities. First TerraUSD, then Celsius, and now three arrows. All three are multi-billion dollar mammoths, and the problem is felt throughout the ecosystem, affecting several other market participants in the process. The market has already witnessed an incredible sellout by force, but as stETH price discovery progresses, it can be a bit more painful.
There is one important issue for both investors and traders. Is the market already oversold and is it pricing potential damages? Or is the worst still felt because the giant hasn’t fallen yet? Bitcoin and Ether have already fallen by about 70% and 80%, respectively, from record highs, with little or no relaxation in short-term bounces. How much short-term downside remains? How many more projects have gone bankrupt?
Despite the pain, purification of this market was probably necessary and needed to remove the unsustainable and dangerous parts from the crypto puzzle. Lessons will be learned, systemic risk will cause their confusion, and will eventually burn out. It may take some time, but the next phase of web3 will leave us with a cleaner, more honest and more resilient ecosystem.
In the rubble, there are new opportunities, real values, real innovations. The only question is who sticks to build it.
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Cheapest loan: 2.93% APY compound, 3.02% APY Aave
MakerDAO update
DAI Savings rate: 0.01%
Basic charge: 0.00%
ETH stable rate: 0.50%
USDC Stable rate: 1.00%
WBTC stable rate: 0.75%
Best yield: 10% APY Nexo Lend, 7.99% APY Gemini
Cheapest loan: 2.18% APY compound, 2.25% APY Aave
Total value is locked: $ 3.849 billion (down 21% from last week)
DeFi market capitalization: $ 35.2 billion (down 28%)
DEX Weekly Volume: $ 30 billion (up 172%)
DAI supply: 6.35B (down 3.5%)
[Ezra Reguerra – CoinTelegraph] – USDD stablecoin drops to $ 0.97 and DAO inserts $ 700M to protect pegs
[Samuel Haig – The Defiant] – MakerDAO votes to freeze Aave’s direct borrowing of DAI
[Andrew Hayward – DeCrypt] – Solana’s new gas tariffs don’t “make the network expensive,” co-founders say
[Andrew Rummer and Adam Morgan McCarthy – The Block] – Babel Finance will suspend the withdrawal due to “abnormal liquidity pressure”.
Alejandro is a blockchain writer and consultant who has been involved in this area since the beginning of 2016. He is very passionate about this new technology, creating countless projects and news media content.
