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How to Build Next DeFi 2.0 Unicorn

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In the current DeFi landscape, there are far too many one-dimensional projects and one-trick ponies. It is crucial to look beyond “just one blockchain” to build engrossing decentralized finance products and services.

To grow decentralized finance into a global phenomenon, barriers to entry need to be lowered. Any project looking to make an impact needs to follow a smart strategy, similar to what YOP has done. Its ecosystem spans multiple tools that will benefit every token and pool, yet their approach of no large initial fundraise is novel and began developing infrastructure before launching a token.

Building Superior DeFi Infrastructure

The year 2020 has seen a strong focus on decentralized finance, an industry currently valued at over $25 billion. It provides an alternative to traditional financial solutions by cutting out the intermediaries. Even so, there are a few shortcomings to resolve. Introducing a new infrastructure layer is crucial if this industry wants to remain relevant for the years to come.

The time has come to begin transitioning to DeFi 2.0 solutions. One-dimensional decentralized finance solutions may become a thing of the past. Moreover, there have been far too many ventures that want to raise vast amounts of capital before their infrastructure is ready. That way of thinking needs to end as well, as investors want to see capable teams, rather than those who make empty promises.

YOP Paves Way

To date, YOP remains a project with a very small market cap. Valued at just over $8 million, one may argue the project has flown under many people’s radar. Optimizing the DeFi industry will not happen overnight, yet the foundation for a better ecosystem is already developing. YOP Founder Atif Yaqub has bootstrapped this project, ensuring there was a concrete project that warrants an external investment.

That investment occurs through the distribution of the YOP token. With a supply of 88,888,888 tokens, only 12% of the supply has been sold through a private sale, while holding back the larger allocation for a future raise. Several partners have been announced so far, including Pires Investments PLC – listed on the London Stock Exchange – and Magnus Capital. Such early success shows the project is attracting attention from high-profile individuals.

Following the private sale, YOP launched using the Polkastarter platform and Uniswap. The team has ensured a smooth and fair distribution of the token to prevent whales from obtaining a more significant share of the tokens. The remaining balance of the tokens will be distributed through a future token sale, airdrop, YOP in-app rewards, and so forth.

It has to be said; the Polkastarter listing has been somewhat surprising. More specifically, over 70,000 users asked to be whitelisted, resulting in all pools on Polkkastarter filling up in mere seconds from opening. A similar success is visible on Uniswap, with $15 million in initial volume and a price increase of over 2900%.

Importance of Cross-Chain Support

In the current DeFi landscape, there are far too many one-dimensional projects and one-trick ponies. It is crucial to look beyond “just one blockchain” to build engrossing decentralized finance products and services. Taking YOP’s yProtocol as an example, it works across all blockchains, including Ethereum, Polkadot, Binance Smart Chain, Solana and others.

This serves as another example of how development should come first, and worrying about attracting capital needs to be a secondary objective. Going about this the other way around is often a death knell for new DeFi projects, as they will never achieve long-term visibility.

Successful MVP Warrants the Next Step

Once the Minimum Viable Product is launched successfully, and no major bugs have been encountered, teams can look toward the future. If the developers cannot pull off this significant milestone, there is no reason for anyone to take the project seriously or invest in it.

Similar to what YOP is doing, DeFi 2.0 projects may want to begin catering to VCs and strategic growth partners after the MVP launch. Building community engagement within and outside of the cryptocurrency industry is the only way to take a project from “niche” to “appealing”.

Combined with the MVP launch, developers need to maintain a long-term roadmap to enhance the product and offer new features.

As can be seen on YOP’s roadmap, features will roll out gradually to gather user feedback and streamline the underlying infrastructure further, rather than over-promising and under-delivering in the first phase.

Conclusion

It is refreshing to see a DeFi project that acknowledges this industry is not about focusing on one product or a single blockchain. DeFi needs to evolve into DeFi 2.0 and move beyond “just Ethereum” swiftly. That doesn’t mean Ethereum has no place, as YOP still considers this a primary ecosystem, alongside Polkadot. Its is important to provide users with more breadth in the product. YOP is including important tools such as market data and integrated wallets alongside the Swap dex and DeFi market place.

Building the next potential DeFi unicorn requires an all-encompassing approach like this one. Creating an ecosystem before raising capital is a smart and professional approach. It is now up to the YOP team to make their vision come true and adhere to the roadmap.

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Nash: Bridging Gap between Fiat and Crypto

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Nash Link is a solution for merchants to accept cryptocurrency without setting up a blockchain wallet.

Nash specializes in providing the best fiat/crypto gateway services for both retail and business customers, combining the lowest prices and fees with high-security wallets. This exchange service is fully licensed to operate in Europe.

For BTC, ETH, NEO and USDC, Nash offers 0% fees. This is possible because Nash operates its own crypto-crypto exchange. Nash’s unique Layer-2 exchange provides the same performance as centralized exchanges without taking custody of funds.

For other crypto assets, tradeable on Layer 1 user wallets, Nash charges just 1% fees, with no hidden slippage fees.

What’s more, Nash provides the safest software wallet by using secure multi-party computation (MPC) technology. MPC ensures a user’s full private key is never used to sign transactions and allows for security policies like address whitelists. Nash never has control over user funds.

On the business side, Nash offers its fiat gateway services as a white-label solution for third parties. Fees remain as low as 1%, with no tricks like huge asset mark-ups. Nash is a highly competitive solution for projects seeking a licensed fiat gateway for their platform and token.

Nash Link is a solution for merchants to accept cryptocurrency without setting up a blockchain wallet. Nash pays merchants the exact fiat price they set in their preferred national currency (€, £ or $) with 0% fees, managing risk around price volatility This is also possible thanks to Nash’s Layer-2 exchange.

In 2021, Nash will expand into digital banking services. High-interest DeFi-staking products will go live in Q2. In Q3, Nash will offer national currency checking accounts (with IBANs) on its platform. These will enable an even simpler savings product where users can easily deposit cash and lock it in a DeFi-powered crypto savings account. With a debit card arriving in Q4, Nash will seamlessly integrate traditional and crypto finance by the end of the year.

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Charlie Munger Rebukes Tesla and Bitcoin Valuations, Warns Investors about Robinhood

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Charlie Munger was clear that in his opinion: Bitcoin could not become a medium of exchange due to its volatility.

Berkshire Hathaway vice chairman and Warren Buffett‘s right-hand man Charlie Munger has criticized recent developments around Bitcoin, Tesla Inc (NASDAQ: TSLA), SPACs and trading platform Robinhood.

From his comments, it was clear Charlie Munger is not a fan of any of them. In an interview during the Daily Journal’s annual shareholder’s meeting, Charlie Munger on Wednesday condemned the current market frenzy. The long term business partner of Warren Buffet stated that he could not decide what was worse between Tesla reaching a $1T market cap or Bitcoin hitting over $50K. Tesla recorded its gains in 2020 after a 743% surge. Bitcoin on the other hand climbed above $50K soon after Tesla announced it had purchased Bitcoin worth $1.5B. The two assets price performance has been connected in recent months.

When asked about which was worse between Tesla and Bitcoin, the 97-year-old noted:

“Well I have the same difficulty that Samuel Johnson once had when he got a similar question, he said, ‘I can’t decide the order of precedency between a flea and a louse,’ and I feel the same way about those choices. I don’t know which is worse.”

Charlie Munger: I Will Never Buy Bitcoin

When asked about the future of banking, he was hesitant to give a direct answer. However, he was clear that in his opinion, Bitcoin could not become a medium of exchange due to its volatility. He further explained why he would never buy Bitcoin:

“So I don’t think bitcoin is going to end up the medium of exchange for the world. It’s too volatile to serve well as a medium of exchange. And it’s really kind of an artificial substitute for gold. And since I never buy any gold, I never buy any bitcoin.”

Munger went on to talk about Robinhood blasting it as for luring novice investors. He noted that Robinhood was encouraging investors to gamble on stocks due to the stock market frenzy. In a dire warning, he stated that the activity is regrettable and would see a lot of investors lose money. On the same, he touched on GameStop stock mania that ended with its price rallying by up to 400% in a week. Munger termed it as dangerous and a dirty way to make money.

SPACs Are a Sign of a Bubble

The businessman further touched on the rising culture of SPACs. The new trend has been adopted by companies looking to go public with a guaranteed valuation. This has seen crazy speculations on the first day of trading. On top of confirming his lack of participation, he added:

“I think this kind of crazy speculation and enterprises not even found or picked out yet is just a sign of an irritating bubble…”

These comments come as no surprise. Especially on Bitcoin, as a long-time partner of Warren Buffett, his lack of understanding of the digital asset is in line. Buffett has in the past criticized Bitcoin as risky and worthless. Notably, the two are from the early generations who happen to be most critical of the digital asset. Recent generations, looking for a change in an oppressive system are most receptive to Bitcoin.

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Kiguru is a fine writer with a preference for innovation, finance, and the convergence of the two. A firm adherent to the groundbreaking capability of cryptographic forms of money and the blockchain. When not in his office, he is tuned in to Nas, Eminem, and The Beatles.



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Canada-Based VersaBank Unveils Plans to Launch VCAD, Canadian Dollar-backed Stablecoin

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While the Bank of Canada reportedly backs the issuance of a digital Canadian Dollar, private alternatives are increasingly permeating the space.

VersaBank (TSX: VB), a digital bank based in Canada has unveiled plans to launch a stablecoin dubbed the VCAD and pegged to the Canadian Dollar. The proposed digital token is described as the first of its kind to be issued by and backed by deposits lodged with a North American or a Canadian bank.

The VCAD is a stablecoin that will maintain stability with the CAD, on a ratio of 1 to 1. It is the product of the partnership between VersaBank and Stablecorp, a joint venture spunned by Canada’s leading crypto asset manager, 3iQ, and Mavennet, a North American leader in blockchain development. The origination of the new token gives it a good reputation per stability with its pegged fiat currency, and it is deemed secure, drawing from its cryptographic infusion while it was being designed.

“As North America’s first bank-issued “stablecoin”, VCAD offers consumers and businesses the ability to adopt and leverage the benefits of digital currency and blockchain-based assets without the volatility of traditional currencies, alongside the security of a value-backed asset that the cryptocurrency world has long demanded,” said David Taylor, President of both VersaBank and its cyber security subsidiary, DRT Cyber. “Consumers and businesses purchasing products and services with VCAD will finally know the precise value of their digital currency when executing these transactions.”

VCAD will be minted and issued by VersaBank to financial or industry intermediaries in exchange for Canadian dollar deposits through the use of the Bank’s “smart contracts.” These partner institutions will be tasked with the distribution of the stablecoin to final users based on request. Once issued, the tokens can easily be redeemed for the fiat equivalent at any time.

Demand for Canada-based Versabank Stablecoin Not a Question

The world is changing, and the search for alternatives to fiat currencies is increasing. The use of Bitcoin (BTC), Ethereum (ETH), and stablecoins like Tether (USDT) is becoming commonplace in the crypto ecosystem.

Authorities have frowned at Bitcoin and its cohorts in usurping the financial terrain, however, mild tolerances for stablecoins still exist. While the Bank of Canada reportedly backs the issuance of a digital Canadian Dollar, private alternatives are increasingly permeating the space. With the demand for cashless and crypto-related digital currencies, the adoption of VCAD may come without any hassles.

“VCAD provides consumers with not only the security afforded by an underlying deposit with a Canadian chartered bank but also the comfort of knowing that each VCAD issued or redeemed will always have one-to-one value with the Canadian dollar. With such clear benefits, we are highly confident in the demand for VCAD as digital currencies increasingly become part of mainstream financial transactions,” said Jean Desgagne, CEO, Stablecorp.

Besides VCAD, VersaBank hopes to pioneer the roll-out of VUSD and VEuro stablecoins that will be backed by the United States Dollar and Euro deposits respectively.

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Benjamin Godfrey is a blockchain enthusiast and journalists who relish writing about the real life applications of blockchain technology and innovations to drive general acceptance and worldwide integration of the emerging technology. His desires to educate people about cryptocurrencies inspires his contributions to renowned blockchain based media and sites. Benjamin Godfrey is a lover of sports and agriculture.



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