Hey everybody, welcome back to the Exodus
Crypto News where we take a bite out of the
noise and highlight a few newsworthy items
from the last week in crypto.
On deck this week is the launch of Cardano’s
Shelley upgrade, USDC spreading its wings,asking
ourselves the really important question, “is
it fair to say you simply flooded the system
with money” and the latest in Defi starting
with the new DeFi Token on the block, Compound
token or simply COMP.
We’ll break it all down right after this.
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this.
If you’ve been paying attention to the crypto
ecosystem over the last 12 months it would
have been next to impossible to miss DeFi
or Decentralized Finance which is basically
in its nascent form the ability to bring finance
tools usually performed by custodial services
such as banks to the masses using decentralized
cryptocurrency networks.
One of the early players in the DeFi Space
is Compound Finance.
Compound is a decentralized finance protocol
that allows borrowing tokens locked as liquidity
by other users, and in early June they unleashed
the Compound token, or COMP, to the world.
The Comp Token is a community governance token
that earns no yield on the platform but does
give the COMP holders voting rights governing
the network.
The COMP token launched June 10th as an ERC20
token and is distributed to users on the Compound protocol.
Each day, 2800 compound tokens are distributed
with a proportional allocation to the demand
across each market on their platform.
And, within each market 50% of that allocation
goes to the lenders and the rest goes to the borrowers.
Let’s see, So that’s BAT, USDCoin, ETH,
TETHER, DAI, Wrapped BTC, Auger and ZeroX,
and every time you interact with a market
on Compound, supplying, borrowing, withdrawing,
or repaying a loan, COMP token will automatically
be transferred to your wallet.
The Comp token took the community by surprise
and quickly overcame the Maker token on the
first day of trading and bounced around for
a bit before the next rally after CoinbasePro
listed the token as open for trading on their
platform, topping out at almost $400 on June
21st or, get this, just over 500% from launch.
Right now COMP is sitting pretty at around
$200.
If you ever want to check the COMP price it’s
really only one click away in your Exodus
Wallet.
There’s more to the story here than price
though, COMP rallied because of the value
it contains in the power of governance on
the Compound network and it has propelled
the amount of value locked up in DeFi projects
past the 1 billion dollar mark with 610 million
dollars locked up in the platform.
Just take a look at the moon shot on June
15th -- from 100 million to 600 million dollars.
Now, it’s leveled out a bit since June 21st
but exciting to see from something that was
not on most people’s radar just 6 months
ago.
Do you think this COMP token valuation is
sustainable, and how do you feel about DeFi
in general?
It’s still a mystery to most and we would
love to hear your thoughts and interest in
bringing more DeFi content to the channel.
Now, for all you Cardano fans out there this
was a big week because the long-awaited Shelley
upgrade was scheduled to begin.
Shelley will bring incentives to the Cardano
network in the form of staking and delegation
which is designed to make the Cardano network
more secure and decentralized.
Now, don’t run to your wallet yet to be
one of the first to get in on ADA staking.
This is going to be a gradual process of updating
the code that may take several weeks concluding
in a non- contentious hard fork by the end
of July, with staking introduced in mid August
2020 as seen in the Cardano roadmap here.
The ambitious Cardano roadmap intends to upstage
the market leader, Ethereum and eventually,
along with staking and delegation, Cardano
will also offer smart contracts and DeFi Products
on its blockchain.
I’ll put a link to the roadmap in the description
below, as well as the link to the virtual
summit hosted by IOHK, the developers of Cardano.
You can find out more about Cardano by clicking
the link above for an Exodus explainer vid,
here’s a quick tease.
Do you have Cardano price predictions ahead
of the Shelley launch?
Please leave yours in the comments below and
if you would like a wallet for your Cardano
you can use Exodus.
Exodus is a crypto application for your mobile
device or your desktop that is home to over
100 cryptocurrency wallets and other crypto
apps.
Click the link above to learn more and download
Exodus today.
There are a few additional juicy tidbits in
the crypto ecosystem that are worth mentioning
this week including Circle’s USDC stablecoin
expanding its horizons into a multi-chain
framework to include additional smart contract
platforms.
The first of which to support the popular
stable coin is Algorand.
This makes sense because it allows stablecoins
to place themselves on competing networks
that essentially perform the same functions.
Tether is also close behind USDC with future
support for a token contract on the ALGO network.
Tether is already supported on the Ethereum
and Tron blockchains.
Now having stablecoins on multiple networks
will eventually increase the availability
of DeFi products and is ultimately good for
the end user.
It’s interesting to think about whether
these stablecoins will have interoperability
across different networks using something
like Cosmos which is built for this very purpose.
It isn't all roses for DeFi this week however, as reported by 1inch exchange
a hacker was able to game popular DeFi platform
Balancer and make out with $500k worth of
ETH
According to the 1inch blog, “The person
behind this attack was a very sophisticated
smart contract engineer with extensive knowledge
and understanding of the leading DeFi protocols,”
This is of course not a direct failure of
DeFi itself.
As we mentioned earlier there are over 1 billion
dollars locked up in the DeFi ecosystem and
it continues to innovate with new products
all the time and, when these types of things
happen we see quick movement by developers
to improve the system for the future.
If you would like to know more of the nitty-gritty
details , there is a full postmortem on the 1inch bolg
which I’ll include a link to below.
Before we sign off for this week, I leave
you with one question.
Did The Fed Really Just Print Money Out of
Thin Air ?
This was Fed chair Jerome Powell’s answer
when asked...
That one never gets old.
Thank you for joining us as always and be
sure to like this video and subscribe to the
channel and if you would like to see anything
in particular on this program be sure to let
us know in the comments below.
Until next time, Hold on!
