DEXs to Look Like CEXs with Censorship Resistance: Multicoin Capital's Kyle Samani

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Sat, 05/23/2020 - 15:05
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Vladislav Sopov
Kyle Samani, Co-Founder and Managing Partner at Multicoin Capital, foresees the evolution of decentralized financial services.
DEXs to Look Like CEXs with Censorship Resistance: Multicoin Capital's Kyle Samani
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Kyle Samani, a seasoned investor and analyst, named a couple of key challenges to the progress of decentralized finances: high gas fees and operations latency.

Two Main Obstacles for DeFi

Mr. Samani indicated two significant problems within the decentralized finances sphere. One involves high gas fees. Kyle Samani explained it with the popularity of Ponzi schemes that overload network. It may also be interpreted as 'growing pains' for the high-speed and ever-expanding DeFi sphere.

The other problem is latency. With high latency, unfair arbitrage deals will occur here, and malefactors will be able to easily predict the price spreads on such exchanges.

The second effect caused the end of FutureSwap's alpha demo. The Synthetix platform was also affected by latency problems.

It is a common belief in some parts of the crypto community that second-layer solutions may solve both issues due to decreased latency and gas fees.

Layer Two: Too Little Too Late

Mr. Samani is sure that all of the 'layer-two' solutions (scalability systems built on top of the blockchains) have their own trade-offs that makes them impractical in terms of DeFi optimization.

Ethereum (ETH) 2.0 revealed a similar story as the sharding design won't help DeFi get rid of such obstacles. 

However, Kyle Samani is optimistic about the general progress of decentralized finances. It will work like popular centralized services in terms of deposits, withdrawals, and trades.

However, the non-custodial manner and censorship resistance (corporate style of DeFi) will stay unchanged with the progress of this sector.

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About the author

Blockchain Analyst & Writer with scientific background. 5+ years in IT-analytics, 2+ years in blockchain.

Worked in independent analysis (Crypto Briefing) as well as in start-ups (Swap.online, Monoreto, Attic Lab etc.)

2,500,000 Ethers Locked in Ethereum 2.0 Deposit Contract as ETH Rejected From $1,250

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Fri, 01/15/2021 - 18:02
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Vladislav Sopov
Ethereum 2.0 enthusiasts deposited whopping sum in its contract launched six weeks ago
2,500,000 Ethers Locked in Ethereum 2.0 Deposit Contract as ETH Rejected From $1,250
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While crypto markets are trying to get out of the most painful correction in this bullish cycle, the Ethereum 2.0 deposit contract accomplishes another crucial milestone.

ETH2 deposit contract surpasses $3,000,000,000 level

According to leading Ethereum network observer Etherscan, the Ethereum 2.0 deposit contract (0x00000000219ab540356cBB839Cbe05303d7705Fa) allocated more than 2.5 million Ethers. New 32-ETH stakes are transferred to it every minute.

ETH2 deposit contract breaks above $3B
Image by Etherscan

As the correction of the Ethereum (ETH) price ended, ETH is changing hands at $1,225: the $1,250 level was too difficult for bulls to conquer. Meanwhile, even at press time, it is worth almost $40,000 to join the club of Ethereum 2.0 stakers.

Therefore, the USD-denominated value of assets locked in the contract surpassed $3 billion for the first time ever and keeps surging.

It should be noted that Ethereum 2.0’s deposit contract went live on Dec. 1, 2020, heralding the start of ETH2 Pase Zero or Beacon Chain, the inaugural stage of Ethereum 2.0.

Ethereum 2.0 “entry tickets” become really expensive

At press time, more than 52,267 addresses transferred money to the deposit contract.

Ironically, Black Thursday in Crypto (March 13, 2020) was the most convenient time to join Ethereum 2.0 staking with Ether at $95. Today, Ethereum (ETH) enthusiasts should pay 13 times more to have a minimum amount of Ethers required for staking.

Ethereum 2.0 is a proof of stake (PoS) iteration of the Ethereum (ETH) protocol. It replaces mining by staking and splits the whole Ethereum (ETH) network into several interconnected sub-chains (shards).

According to Staking Rewards analytical dashboard, annualized rewards for ETH staking are estimated between 10.4 and 10.6 percent.

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About the author

Blockchain Analyst & Writer with scientific background. 5+ years in IT-analytics, 2+ years in blockchain.

Worked in independent analysis (Crypto Briefing) as well as in start-ups (Swap.online, Monoreto, Attic Lab etc.)