Kategorie: Crypto News

NFTs borrowing and lending protocol Bend DAO is staring at a credit crisis after it was revealed on Monday that the protocol only had about 15 wrapped Ether (wETH) worth about $23,715 for paying back its lenders.  The protocol has so far lent out 15,000 ETH.

To avert the crisis, the project’s developers have proposed new emergency measures aimed at stabilizing Bend DAO’s ecosystem.

The proposed emergency measures 

To start with the development team suggested constraining the liquidation threshold for collateral at 70% of the loan value; cutting it down from 85%.

Secondly, the auction period for NFTs would be reduced from 48 hours to four hours and the requirement for the minimum bid price of NFTs to be pegged to 95% of the floor price on OpenSea would be scrapped.

Thirdly, interest rates on loans shall rest from the current 100% to 20%.

Lastly, the Bend DAO treasury shall be empowered to cover all the bad debts using revenue.

What led to the current Bend DAO situation?

Generally, the declining floor prices of NFTs in the market even among popular NFT collections is placing many NFTs in danger of being liquidated. The interest rates on “debt-secured” NFTs are skyrocketing and it has almost hit 100% making some users prefer letting go of their NFTs rather than paying back the debt and this is resulting in a lot of bad loans. Also, the NFT markets are not as liquid as coin markets meaning there may not be a single bid at the time of an NFT liquidation; something that further complicates the scenario.

The proposal by Bend DAO is currently being voted for by the community. The voting process is expected to last 24 hours although it has already passed the required 47 million veBend with 99.23% of voters in favour of the proposal.

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Telegram founder Pavel Durov is proposing the creation of an NFT marketplace that can use “NFT-like smart contracts” to facilitate auctioning of popular usernames.

Durov’s proposal comes after the success of domain name auctions on The Open Network (TON), which is a layer-1 blockchain designed by the Telegram team. The Open Network launched the TON DNS Service in mid-July allowing users to assign human-readable names to crypto wallets, websites, and smart contracts.

Durov through a message shared on his personal Telegram group, Durov’s Channel, on Tuesday said that he was impressed by the success of the domain auctions on TON. He said that Telegram could tap into the same technology and launch a new marketplace that would be used to buy and sell “catchy t.me addresses like @storm or @royal, and all four-letter user names.”

Durov said:

“Imagine how successful Telegram with its 700 million users could be it we put reserved @ usernames, group and channel links for auction… This would create a new platform where username holders could transfer them to interested parties in protected deals – with ownership secured on the blockchain via NFT-like smart contracts.”

Auctions on TON DNS Service

The first auction on TON DNS was conducted on July 30 and just like the Ethereum Name Service (ENS) “.eth” domains, the “.ton” domains allow users to access decentralized applications in a simpler way without needing to write the long crypto wallet addresses.

The Open Network uses FunC programming language for the TON Virtual Machine and to launch specific smart contracts on the blockchain. If Telegram was to launch NFTs, it would most likely use the same standard.

Durov said:

“Our team can write bullet-proof smart contracts for TON (since it was us who invented its smart contract language), so we are inclined to try out TON as the underlying blockchain for our future marketplace.” 

The post Telegram founder proposes NFT marketplace for auctioning popular usernames appeared first on CoinJournal.

According to a news post by the co-founder of Acala Network, Bette Chen, the Acala community has voted to burn 2.97 billion Acala USD (aUSD) stablecoins.

Acala is a scalable and Ethereum-compatible layer-1 smart contract platform built on Polkadot blockchain and it is the blockchain network that powers the aUSD stablecoin.

The aUSD stablecoin

aUSD is over-collateralized by several digital assets from the Kusama network and Polkadot ecosystem, with a deposit rate of 195% per every minted aUSD.

aUSD de-pegging

Last week, the price of aUSD de-pegged from its US dollar peg and dropped to below $0.01. The cause for the de-pegging was later found to be a sudden influx of the aUSD stablecoin supply caused by an erroneous minting.

3.022 billion aUSD stablecoins were erroneously minted after the iBTC/aUSD liquidity pool that went live on August 14 was misconfigured.

The misconfiguration has however since been rectified and the wallet addresses that benefited from the erroneously minted aUSD identified through on-chain tracing. Thirty-five accounts were found to have received 12.38 million aUSD.

More than 99% of the erroneously minted aUSD were then transferred to the Acala parachain. But some, approximately worth $9.69 million, had been swapped to DOT and moved to centralized crypto exchanges.

The aUSD is currently trading at about $0.84 which is still below its dollar parity; meaning the erroneous minting is still affecting the system’s equilibrium.

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