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Ethereum (ETH) Developer On DeFi Next Stage: ‘Get Rid of Centralized Saas’

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Tue, 06/02/2020 - 10:49
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Vladislav Sopov
Lefteris Karapetsas, founder of the Rotki portfolio tracker and an Ethereum contributor has revealed limitations and contradictions in decentralized finances
Ethereum (ETH) Developer On DeFi Next Stage: ‘Get Rid of Centralized Saas’
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On June 1, 2020, the Defiant community that tracks the progress of decentralized finances (DeFi), published a report about the situation on ETH-based decentralized exchanges (DEXs).  Mr. Karapetsas believes that decentralized trading shouldn’t be accompanied with centralized portfolio management.

Mutually exclusive concepts

According to Mr. Karapetsas, combining centralized and decentralized instruments in the trading process makes no sense. Only when the whole system operates without a single point of centralization can it be considered decentralized:

Exchanges is just one part that needs fixing. We also need to get rid of centralized SaaS offering portfolio tracking and accounting. Can't participate in decentralized finance, only to do accounting for it via centralized apps

For him, the broadcasting of data from decentralized to centralized apps required to track the portfolio on DEX is a step backward.

So, only decentralized portfolio management systems should be used when trading on decentralized exchanges. To achieve this goal, Mr. Karapetsas recommends they ‘get rid of centralized SaaS’.

Lefteris Karapetsas worked as a Senior Software Engineer in Brainbot, the team behind the Rayden Layer-two scalability solution for Ethereum (ETH). He founded the Rotki privacy-focused investment portfolio tracker.

Bright long road for DEXs

The report Mr. Karapetsas reacted to addressed the progress of decentralized exchanges. According to its author Lucas Campbell, this sector is still in its nascent stage. Though it has skyrocketed five times over this year, DEXs account for only 0.6% of the cryptocurrency exchange segment.

DEX report by Defiant
Image via Twitter

The obvious champion is the UniSwap exchange, which has seen about $755M in trading volume since the beginning of the year.

Mr. Campbell highlighted that centralized exchanges process 100% more liquidity in a single day than Ethereum (ETH)-based DEXs do in a year.

The calculations of projected annual earnings of DEXs reveal very poor figures. Only four top exchanges – Uniswap, dYdX, Kyber Network and Bancor earn more than $1M monthly. To compare, Bancor, with its $1.21M projected earnings, makes 0.79% of what they managed to raise through the BNT ICO in 2017.

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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.)

Grayscale Assets Under Management Surge $300,000,000 in One Day. What Does This Mean?

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Fri, 10/23/2020 - 09:24
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Vladislav Sopov
Grayscale, undisputed giant of institutional crypto investments, is celebrating another monstrous milestone, adding a nine-digit sum to AUM in 24 hours
Grayscale Assets Under Management Surge $300,000,000 in One Day. What Does This Mean?
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Grayscale is an investment company that provides the clients with an exposure to digital currency markets eliminating the need to buy tokens. The firm does it by selling shares of 'trusts' related to certain digital assets. The recently started FOMO has already brought Grayscale's 'asset under management' (AUM) values to previously unseen levels.

Grayscale assets are on steroids

In its most recent report shared in a tweet, Grayscale Investments stated that its net AUM now surpasses $7,300,000,000. Mostly, this upsurge should be attributed to the spikes of Bitcoin (BTC), Ethereum (ETH) and Litecoin (LTC) prices.

Grayscale adds $300M to its AUM in 24 hours
Image by Twitter

Its founder, CEO of Digital Currency Group Barry Silbert, unveiled that Grayscale’s holdings added a whopping amount of value in the last 24 hours.

Added a cool $300 million in AUM in one day

In terms of separate ‘trusts’, the most impressive increase is associated with Litecoin (LTC). Its value added almost 10% bringing its total to over $34 mln. 

Bitcoin (BTC) allocation surged above $6 bln with a 5% increase. Notorious Grayscale Ethereum Trust (ETHE) added 6% and now is valued at $942 mln.

PayPal assists Grayscale

By contrast, Stellar Lumens (XLM) and Bitcoin Cash (BCH) trusts witnessed mediocre increases of 2-3%. The only integral product of Grayscale, Large Cap Trust that unites the most valuable coins under its umbrella, therefore, added less than 4%.

The numbers of Grayscale Investments positions rocketed due to the rapid spike of crypto prices associated with PayPal’s decision to add major digital assets to its instrument toolkit.

As covered by U.Today previously, PayPal announced that Bitcoin (BTC), Ethereum (ETH), Litecoin (LTC) and Bitcoin Cash (BCH) will be added as payment methods by the end of this year.

  

Following this surprising news, Bitcoin (BTC) revisited its multi-months high over $13,000. At press time, its price has slightly retraced and flirts with the $12,800 level.

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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.)