[Published Feb28 by Rushe Brady]‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ 
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Happy Tuesday•February•28 to our 115,890 readers. We're here with Arch Lending — the most secure way to borrow against your crypto assets: archlending.com

Rushe Brady, Jon Selzer, Linda Pacheco

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DeFi

DeFi lending explained [Decentralized Finance]

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DeFi lending consists of users offering crypto loans on decentralized platforms that also provide peer-to-peer decentralized applications [dApps].

Users can either...

  1. Lend their crypto assets to other users in exchange for interest...or
  2. Borrow crypto assets by posting collateral to reduce the risk of default

Institutions and investors are now pouring billions into DeFi lending due to improved lending protocols and regulatory clarity.

The primary risk comes from government regulation that targets centralized lending platforms. But DeFi lending is decentralized, and it appears untouched since it's not clear who a government agency could sue if there's no company.

How DeFi lending works

Like traditional banks that rely on customer deposits to lend out money, DeFi lending relies on lending pools where users deposit their crypto assets to ensure distribution among borrowers. This is done through smart contracts.

One advantage of DeFi lending platforms is that they're open and transparent. Anyone with a crypto wallet can participate, and the code is open-source so anyone can audit it to ensure fairness.

• And because there's no centralized intermediary, users don't have to go through the process of credit checks.

Instead, borrowers put up more collateral than the amount they’re borrowing. Collateralization ranges between 120%-150% on most lending platforms.

Why put down 1.5ETH to borrow 1ETH? Because there's no credit check. You can trust borrowers because you have their money. Overcollateralizing also provides a cushion if the price of the underlying crypto drops.

If the collateral falls below a specified level, anyone can liquidate the amount minus the lender's deposit and keep the remainder. For this reason, many borrowers lock up more than the required collateral.

Continue reading thedefiant.io

BITCOIN

Blockstream creates a new team for Bitcoin innovation

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Blockstream [Bitcoin infrastructure company] announced the formation of its research team focused on advancing the platforms of the Bitcoin ecosystem.

The team consists of ten experienced researchers who are working on various projects to push the boundaries of what's possible with Bitcoin.

These projects include...

  • creating a more robust programming language
  • developing off-chain protocols
  • working on digital signatures to make multisig transactions more private

The Blockstream team is also developing Elements Script, extensions to Bitcoin Script that include new covenant opcodes. They've already made contributions such as OP_CSV and covenants to Segwit and Taproot.

Continue reading bitcoinmagazine.com

THIS WEEK WITH ARCH LENDING

Access instant credit without having to sell your crypto

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Arch Lending offers the easiest and most secure way to borrow against your crypto assets.

How? By using your crypto as collateral. . .instead of selling it.

How does it work?

  1. See the maximum amount you qualify for.
  2. Get your loan in either USD or USDC stablecoin, and pay it back in any combination of both.
  3. Get your loan without waiting through a lengthy approval process.
  4. Feel confident that your assets are safe because they're held with BitGo, the leader in institutional digital asset custody.
  5. Your collateral is insured and never used to generate yield.

You can get a single loan against your crypto that's delivered immediately to your crypto wallet or exchange account, making it easy to access the credit you need when you need it.

Get your loan today.

HEADLINES

Alchemy Pay makes a move to revolutionize crypto remittance

Alchemy Pay [fiat-crypto gateway] and PT Berkah Digital Pembayaran announced a partnership to obtain Indonesian licenses to operate remittances and fund transfers, which will reduce operating costs and enable payouts to users across Asia.

Trezor takes control of silicon chip production for hardware wallets

Trezor [hardware wallet manufacturer] took control of its silicon chips production in order to optimize the production process, reduce supply delays, and protect customers from price increases. It also enables design freedom for Trezor's future products so the company can create unique features for crypto investors.

DECENTRALIZED FINANCE [DeFi]

Lido Finance records highest daily stake inflow of over 150,000 ETH

Lido Finance recorded its highest stake inflow when Justin Sun [Tron blockchain founder] staked 150,100 ETH worth $240 million. The large deposit activated Lido's ‘Staking Rate Limit’. The move is likely due to the upcoming Ethereum upgrade, which will let users withdraw their staked ETH.

Non-custodial wallets will not be banned in the European Union

The European Commission decided not to ban non-custodial wallets, which was previously proposed. Instead, the EU will require that non-custodial wallets be linked to an identified account. Self-hosted wallets will be subject to a single transaction limit of €1,000 unless tied to an identity.

BEST OF

Arbitrum—Ethereum's largest and fastest growing Layer 2 chain

Arbitrum is a suite of products consisting of Arbitrum One—an Arbitrum Rollup chain running on Arbitrum Nitro, and Nova—an AnyTrust chain. Arbitrum's uniqueness lies in its fraud-proof, where its transaction data is stored, and its level of decentralization.

Bitmain partner BitFuFu starts marketplace for mining rig coupons

BitFuFu [cloud mining company] launched a marketplace for discount coupons on Antminer rigs. Last year Bitmain issued $50 million worth of coupons for Antminers to loyal customers when their sales fell. BitFuFu is planning to go public through a special-purpose acquisition company [SPAC] in May.

WORLD

Canada. The Canadian Securities Administrators [CSA] issued a notice for crypto exchanges to register with the CSA. The guidelines include rules for custody and segregation of client crypto assets and prohibit leveraged trading. The CSA also labeled stablecoins as securities or derivatives.

Indonesia. Plans to launch a state-backed crypto exchange by mid-2023, but it will be run by a private company rather than the government. The establishment of the exchange is expected to give a boost to the country's crypto industry.

CHART

chart

DICTIONARY

Decentralized Application [dApp]

A «Decentralized App [dApp]» uses blockchain technology to implement use-cases such as investments, lending, trading, gaming, etc. A «dApp» might look like a regular app, but the underlying tech is quite different.

Instead of using Internet protocols (like HTTP), dApps rely on crypto wallet software to interact with automated smart contracts on blockchain networks.

VIDEO

What is Decentralized Finance [DeFi]?

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16min : 25sec

This video explains the concept of DeFi [Decentralized Finance] using the 5 main pillars that sustain it:

  1. Stablecoins
  2. Lending & Borrowing
  3. Decentralized Exchanges
  4. Margin Trading
  5. Insurance

Video by Whiteboard Crypto

TUTORIAL

Smart Contracts and dApps explained

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Summary

This PDF tutorial provides an overview of smart contracts and decentralized applications [dApps], including their origins, how they work, and advantages.

Key Concepts

  1. Smart contracts are self-executing contracts written into lines of code.
  2. Decentralized applications [dApps] are software applications that run on decentralized networks and powered by rules coded into smart contracts.
  3. Smart contracts and dApps provide more secure, transparent, and efficient services than traditional centralized services.

Key Objections

  1. Smart contracts and dApps may be more secure and efficient, but they are not always easy to understand or use.
  2. Decentralized applications may be more secure and transparent, but they are not always as user-friendly as traditional centralized applications.

That's your intro. Now keep going with the tutorial from Cryptopolitan.

Read the 4-page PDF.

CRYPTOCURRENCY

Solana [SOL] Eclipse is launching a Polygon Solana Virtual Machine (SVM) rollup solution that will allow Solana applications to be compatible with Polygon. Rollups work by compiling a number of transactions into one bundle on an Layer 1 blockchain, making it cheaper and faster. This makes it easier for developers building on SVM to migrate their applications between Polygon and Solana.

Circle [USDC] Mastercard partnered with payment protocol Immersve to allow customers to make payments using its network and USDC settlements. The partnership provides users with secure and direct crypto payments, allowing purchases online or in stores.

NON-FUNGIBLE TOKEN [NFT]

[Blur] Recently airdropped its governance token [$BLUR], which made it a legitimate competitor to OpenSea. Blur's platform offers expansive choices and impressive speed and 65% of its early users have come from OpenSea.

[Uniswap] Its NFT marketplace launched a feature that lets users buy NFTs with any Ethereum token. The new feature simplifies the NFT purchasing process, reduces taxable events, and helps sellers find liquidity more quickly.

The only true journey is the one within ourselves.
Rainer Maria Rilke
German Poet (1875-1926)

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 Editor: Rushe Brady

 Writers: Jon Selzer & Linda Pacheco

 Research: Avory Gallegos

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