October 19, 2020 View Online
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Projects continue to freeze “unstoppable decentralized smart contracts” due to KuCoin hack. Meanwhile, we finished our second interview, let us know what project you would be interested in us covering next. If you have ideas reach out via Twitter, our DMs are open.

Interview with PerlinX: The Asset Liquidity Engine

Interview with PerlinX DeFi protocol for commodities trading
Interview with Darren Toh from PerlinX, where we discuss Perlin's mission to provide market access to all via DeFi and minting synthetic assets.

RottenSwap: Meet Deflationary DeFi Farming

RottenSwap is deflationary DeFi clone of SushiSwap, yield farming with burning tokenomics
Before the trend of food-themed DeFi protocols, we can remember the craze of the burning bomb tokens. It was only a matter of time before a project decided to unite the two trends together. Meet RottenSwap and ZombieChef, a carbon copy of SushiSwap, with some deflationary twists.

What is RottenSwap? RottenSwap aims to capitalize on the DeFi craze of providing rewards for staking Uniswap LP tokens. Like numerous other protocols, the team has taken the smart contracts built by Chef Nomi and added in their little tweaks.
RottenSwap is a deflationary clone of DeFi farming SushiSwap.
The big change is that Rotten Token, the clone of SUSHI, is a deflationary token. On every transfer of ROT, 2.5% of the amount is burnt and turned into MAGGOT tokens. It is believed MAGGOT will be used for governance voting. This two token ecosystem is an idea for RottenSwap to avoid the inflationary concerns of SushiSwap.

Strategic pool choices… Another change is that the team has elected to incentivize liquidity providers of the ROT token itself. As a result, there is a lower risk of whales using their existing assets to simply farm and dump Rotten Tokens.
  • RottenSwap has no pre-mined dev share, avoiding the issue of the anonymous developers market selling their tokens to exit scam. Though note, smart contracts have not been audited as of yet.
Positive feedback loop… As the DeFi farming protocol gains traction, the trading volume of ROT will grow. Consequently, the faster the supply will decrease. Will ROT overtake SUSHI? Impossible to tell, though they have a strong community and well, Halloween is coming.

What is Venus (XVS)? DeFi platform on Binance Smart Chain

what is venus XVS? new defi platform for yield earning on Binance Smart Chain BSC
Swipe has revealed more details around the new DeFi platform called Venus Protocol. Venus is a decentralized finance (DeFi) platform on Binance Smart Chain for lending and borrowing via the minting of synthetic stablecoins. Here we will take a look at what is Venus, and explore XVS token's use cases. Developed by Swipe, it looks like Venus Protocol will be Binance’s answer to having an MakerDAO-like product on Binance Smart Chain.

We can already see that Binance is heavily pushing the platform’s release, announcing new launchpools, where users can stake BNB, SXP, or BUSD to start earning XVS tokens.

What is Venus (XVS)? At its core, Venus is an algorithmic money market protocol for BEP-20 assets, which are native Binance Smart Chain tokens. This means Venus is a DeFi lending platform, where users can lock up supported crypto assets as collateral and borrow, by minting VAI. VAI is the protocol’s default stablecoin which is pegged to the value of 1 USD. Users will also earn interest on any crypto assets they supply to the protocol. Given that Venus is on Binance Smart Chain, the protocol will be able to leverage BSC to offer cross-chain DeFi. Such as supporting BTC, USDT, USDC, BNB and SXP from launch.

Decentralized governance… Venus will be governed by XVS holders. Proposals could be around adding new collateral options, product improvements, or changing parameters such as fees. XVS is a BEP-20 token and has a total supply of 30,000,000.
  • 79% of XVS’s total supply will be distributed by ecosystem mining, an initiative to reward users of the protocol. This should result in a very fair token distribution.
Collateral represented by vTokens… The decision to issue vTokens to represent the underlying collateral mirrors DeFi protocols such as Aave or Curve on Ethereum. For instance, this will support the future release of automated yield aggregators and robo-advisors on Binance Smart Chain. Expect to see follow up vault products like Yearn Finance on BSC!

Ocean Protocol chooses to Hard Fork over KuCoin Hack

ocean hard fork after kucoin hack
On Friday 25th, the cryptocurrency exchange KuCoin was hacked, resulting in over $203 million in coins being stolen. The bulk of the stolen funds appeared to be in Altcoins, as a result, many crypto projects decided to start freezing their tokens. Ocean Protocol seemed to take the most drastic action, implementing a hard fork to render all of the stolen OCEAN worthless.

Why did Ocean Protocol hard fork? Roughly $8.6 million worth of OCEAN tokens were stolen from the KuCoin exchange. Meaning that 21 million OCEAN could be dumped on the market by the hacker. The team immediately used a pause function in the token’s smart contract code to stop any transfers. They then chose to issue a hard fork and deploy a new token entirely. However, the swift actions seem to be creating a rift in the community with many asking why this function exists in the first place.

Not a decentralized marketplace… If we break it down, the team has effectively showcased that Ocean Protocol can be paused at any time. It is worrying that a project described as a decentralized data marketplace has shown they may censor their protocol at any time.
  • Not only Ocean has taken this path of freezing tokens. Orion, Covesting, SilentNotary, Velo Labs, and Kardia Chain all made similar moves to stop the hacker from dumping stolen funds.
So what is the token for… Ocean Protocol may have to be ready to answer some hard questions during the next community AMA. Because, it appears pausing the token and then issuing a hard fork, strangely, did not disturb the data marketplace. Which begs questions around what the data marketplace runs on and how it interacts with the token.

Also take note

  • Rails: DXdao released a Layer 2 payment product running on Loopring, let’s you send ETH with much lower gas fees.
  • Pine Finance: Allows users to place limit orders for Uniswap and other AMMs.
  • Curve Finance: Has started dividend payments to CRV holders who choose to lock up their tokens.
  • Flamingo Finance: Cross Chain DeFi platform on Neo, you should definitely research.
The information provided on this email should not be taken as investment advice, financial advice, trading advice, or any other sort of advice. dExplain does not recommend the use of any decentralized application nor that any cryptocurrency should be bought, sold, or held by you. You should do your own research and consult a financial advisor before making any investments.

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