Uniswap to Launch on Polygon’s zkEVM

Polygon’s zero-knowledge Ethereum Virtual Machine (zkEVM) roll-up solution is going to be used for the launch of Uniswap, which is one of the most well-known decentralized exchanges (DEX) built on the Ethereum blockchain. All 191 Ethereum addresses cast their ballots in support of the integration, which means that the proposal has already surpassed the barrier of 40 million votes that was needed for acceptance.

Polygon is a scaling solution provider that was originally known as Matic Network. Their mission is to make it simpler for developers to construct decentralized apps (dApps) on the Ethereum network using their technology. Its zkEVM roll-up approach aims to increase Ethereum’s scalability, security, and usability, while also lowering the prices of transactions.

It is anticipated that the incorporation of Uniswap onto Polygon’s zkEVM will confer major advantages onto both of those platforms. Uniswap, which has been experiencing difficulties on the Ethereum mainnet due to high gas prices and poor transaction times, will be able to use Polygon’s scaling solution in order to provide its customers with transactions that are both quicker and less expensive. In the meanwhile, Polygon will profit from the increased adoption and liquidity that Uniswap delivers to its network thanks to the addition of Uniswap.

The Uniswap proposal to launch on Polygon’s zkEVM was first presented in March 2021, and tokenholders were given until April 14 at 9:05 pm UTC to vote on the proposal. Uniswap is a decentralized exchange (DEX) that allows users to buy and sell digital assets. However, the need for approval, which was 40 million votes, was already met long before the deadline, and over 42.4 million votes were registered in support of the merger.

According to Tally, a voting dashboard for decentralized finance projects, the Ethereum infrastructure provider ConsenSys and the financial modeling platform Gauntlet were among the top donors to the vote, both with over 7 million votes.

It is anticipated that the successful integration of Uniswap on Polygon’s zkEVM would further accelerate the expansion of decentralized finance (DeFi) on both platforms, in addition to the expansion of the Ethereum ecosystem as a whole. Ethereum is positioned to emerge as a more feasible and appealing platform for the development of decentralized apps in the years to come as a result of the proliferation of blockchain scaling solutions such as Polygon.


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USDC Holders Panic Sell Amid Solvency Concerns

USD Coin (USDC), a popular stablecoin pegged to the U.S. dollar, has been facing solvency concerns since March 10, leading several holders to panic sell their holdings and switch to other stablecoins. USDC’s solvency fears arose after the disclosure that a portion of USDC’s collateral is held at Silicon Valley Bank, which was shut down by California authorities after revealing efforts to raise extra capital. The news of the bank’s closure and USDC’s collateral in it caused concern among USDC holders, leading to panic selling and mass exodus.

During the panic selling, several USDC holders attempted to switch to other stablecoins, but not all of them were successful. One user lost over 2 million USDC in a failed attempt to exchange them for Tether (USDT) using KyberSwap’s decentralized exchange aggregator. KyberSwap is a decentralized exchange (DEX) that aggregates liquidity from several DEXs. In the transaction, the user dumped a large amount of 3CRV (DAI/USDC/USDT) into USDT using KyberSwap’s aggregation router. In a postmortem, the KyberSwap protocol team explained that “since the market was undergoing a volatile period, all routes failed at estimating gas. The rate strongly fluctuated & only 0x’s route was successful but with a very poor rate.” After confirming the swap at 0x’s rate in a pop-up, a bot detected the opportunity and gained 2,085,256 USDC from that Univ2 pool. The protocol is in talks with the bot creator, the bot user, and third parties to assist with funds recovery.

Meanwhile, Tron founder Justin Sun reportedly withdrew 82 million USDC and exchanged them for Dai (DAI) using Aave v2, a decentralized finance protocol. The move came after Circle, the company behind USDC, disclosed holding $3.3 billion at the Silicon Valley Bank, nearly 23% of its reserves. While Circle assured USDC holders that liquidity operations would “resume as normal when banks open on Monday morning in the United States,” many holders remained unconvinced.

Wallets related to IOSG Ventures sold 118.73 million USDC for 105.67 million USDT and 2,756 Ether (ETH) worth $3.98 million via three addresses, on-chain data shows. The institution still holds nearly 45 million in USDC. These movements suggest that USDC holders were not confident about the stablecoin’s solvency and were trying to move their funds to other stablecoins or cryptocurrencies.

Despite the panic selling and exodus, the USDC price has slowly recovered after turbulent trading hours on March 11 to trade at $0.97 at the time of publication. However, the incident has once again highlighted the risks associated with stablecoins and the need for transparency and oversight in the crypto industry. The incident also underscores the importance of decentralized exchanges and protocols that offer users greater control and security over their assets.

While the USDC panic selling was a localized event, it could have wider implications for the stablecoin industry as a whole. Stablecoins have become increasingly popular in recent years due to their stability, ease of use, and ability to serve as a bridge between the traditional financial system and the cryptocurrency market. However, their rapid growth has also led to concerns about their regulation, oversight, and long-term viability.

Stablecoins are not backed by any physical asset but instead rely on a basket of assets or a reserve pool of funds to maintain their peg to the U.S. dollar or other currencies. This makes them vulnerable to market fluctuations, liquidity crises, and other risks that can undermine their stability and solvency.

In response to these concerns, regulators and industry players have called for greater transparency and oversight in the stablecoin industry. In September 2020, the Office of the Comptroller of the Currency (OCC) issued guidance allowing banks to hold reserves for stablecoin issuers, signaling greater regulatory support for the industry.

In addition, several stablecoin issuers have taken steps to increase transparency and accountability, including regular audits and disclosures of their reserve holdings. For example, Paxos, the issuer of Paxos Standard (PAX), a stablecoin pegged to the U.S. dollar, recently announced that it had obtained regulatory approval from the New York State Department of Financial Services (NYDFS) to offer its stablecoin to institutional clients.

Overall, while the USDC panic selling was a cause for concern for USDC holders, it also highlights the need for greater transparency and oversight in the stablecoin industry. Stablecoins are an important and growing part of the crypto ecosystem, but their stability and solvency depend on trust and confidence from users and regulators alike. As the industry continues to mature, it will be essential for stablecoin issuers and regulators to work together to address these challenges and ensure the long-term viability of stablecoins as a reliable and trustworthy form of digital currency.


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Mango Labs Sues Avraham Eisenberg for $47 Million

In its own legal action against the person known as Avraham Eisenberg, the firm known as Mango Labs, which is responsible for the creation of the decentralised finance (DeFi) system known as Mango Markets, has began the process. The name of the decentralised marketplace for trading financial instruments is Mango Markets.

In the complaint that was filed on January 25 with the United States District Court for the Southern District of New York, it is alleged that on October 20, 2022, Einseberg misappropriated its platform in order to acquire cryptocurrencies that have a value of millions of dollars. This allegation was made in the complaint that was submitted on January 25. The complaint that was handed in on January 25 included an accusation similar to this one.

It asserts that it is entitled to compensation for losses totaling $47 million, including interest dating back to the time of the event, and it uses the occurrence as the point of departure for the interest computation.

In addition, it requested that the agreement between Eisenberg and Mango’s linked decentralised autonomous organisation (DAO) be declared “illegal and unenforceable” by the court so that Eisenberg and Mango’s connected DAO’s arrangement may be terminated.

Eisenberg had discussed a theory of governance, and the purpose of this agreement was in relation to that proposition. In the proposal, it was requested that the DAO allow them permission to keep $47 million, with the stipulation that Mango Markets would not pursue criminal charges for the depletion of its coffers. This was one of the conditions that was attached to the request. This was one of the requirements that had to be met in order for the request to be processed. As a condition of the agreement, Mango Markets committed to avoiding any kind of legal action about the subject.


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Trader Joe (JOE) makes a 110% V-shaped recovery after Rocket Joe launch

The market appears to be finding its feet and as the smoke clears, its easier to see which projects are fundamentally flawed and which are returning to their previous trading range where they were before the recent three-week downturn.

Trader Joe is one of the decentralized finance (DeFi) protocols that continued to push out new developments during the market-wide correction..

Data from Cointelegraph Markets Pro and TradingView shows that after hitting a low of $0.658 on Jan. 24, the price of JOE rebounded 147% to a daily high of $1.63 on Feb. 1 before entering a new consolidation range.

JOE/USDT 4-hour chart. Source: TradingView

Three reasons for the turnaround seen in the price of JOE are the launch of the Rocket Joe liquidity platform, the addition of new projects and staking pools on Trader Joe and a climbing total value locked (TVL) on the platform.

Rocket Joe blasts off

The biggest development to come out of Trader Joe thus far in 2022 has been the launch of Rocket Joe, a liquidity launch platform designed to facilitate the launch of a new tokens on Trader Joe by providing seed liquidity for the protocol.

JOE token holders are now able to stake their JOE on the Rocket Joe platform to earn rJOE, which is a credit used to enter Rocket Joe Launches. Every 100 rJOE that a user deposits into a Rocket Joe Launch will enable them to unlock a 1 Avalanche (AVAX) allocation towards that pool.

The committed funds are used to help determine the starting price for that token and bootstrap its liquidity on Trader Joe. Users who opt to provide liquidity will have their funds locked in the liquidity pools for seven days. In exchange for helping to provide liquidity, users receive an allocation of the newly launched token

This method of token launch allows Avalanche users to acquire newly issued tokens without needing to compete with bots during other token launches or high gas prices.

New listing and project launches at Trader Joe

A second factor helping boost the value of JOE has been the addition of multiple new tokens and projects on the Trader Joe platform, including the first project to launch out of Rocket Joe, Heroes of NFT (HON).

Some other new arrivals to the Trader Joe ecosystem include Dragon Crypto Gaming and Domi Online, a pair of play-to-earn gaming projects, as well as integrations with Cook Finance, the Open DeFi Notification Protocol and the cross-chain trading terminal Kattana.

Related: Avalanche correction risk rises after AVAX price soars 80% from January lows

TVL is rising again

As a result of the increase in the price of JOE and the addition of new tokens and liquidity pools to the Trader Joe ecosystem, data from Defi Llama shows that the total value locked on the platform has begun to recover following the recent multi-month market sell-off. 

Total value locked on Trader Joe. Source: Defi Llama.

The TVL on Trader Joe is $1.43 billion at the time of writing, up from $957 million on Jan. 28 but still well below its all-time high of $2.59 billion on Dec. 1, 2021.

The views and opinions expressed here are solely those of the author and do not necessarily reflect the views of Cointelegraph.com. Every investment and trading move involves risk, you should conduct your own research when making a decision.