The Grayscale Investment manager undertakes another phase of balancing its Grayscale DeFi fund. This round of rebalance inculcate the adjustment of the project’s Digital Large Cap Funds. This move marks its second balancing process after its launch in July 2021.
An announcement on January 3 revealed the in-depth adjustments to Grayscale’s two funds. The first rebalancing employed the Flexa payment network’s native collateral coin.
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Hence, Grayscale DeFi Fund’s weighting was rebalanced with the addition of AMP. Conversely, the rebalancing process led to the removal of Universal Market Access (UMA) and Bancor (BNT).
Though Grayscale created some adjustments to its funds’ weightings, the Grayscale Digital Large Cap Fund (GDLC) suffered no alteration to its token list. According to Grayscale’s announcement, the rebalancing process is the time to include AMP within a Grayscale investment vehicle.
Using its native token, Flexa can collateralize crypto payments and engage in fiat settlements. Thus, merchants and other users could quickly receive cryptocurrencies without delays.
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Significance Of Grayscale Rebalancing Process
Following this second rebalancing process, the addition of AMP brings the number of crypto assets within the Grayscale DeFi Fund to nine in the DeFi ecosystem. Also, the alteration to the Grayscale Fund reflects the changes on the DeFi Index (DFX) of CoinDesk. Among the components of crypto assets that made the Fund, the highest weighting goes to Uniswap (UNI) with 42.33%. The newly added AMP takes up 7.39% of the Fund’s weighting.
Having its popularity as Grayscale Bitcoin Trust, Grayscale now has about $30.1 billion assets under management (AUM). The share trading at $34.27 shows a 23% up from July 14, 2021, and a 59.16% up within the last 12 months.
The share price of Grayscale DeFi Fund at the press time is $5.56. This depicts an 11.2% rise from its launch price of $5 on July 14, 2021. Moreover, the Fund’s assets under management as of its launch period were $11.6 million with a share outstanding of 2.08 million.
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The ‘s performanceGrayscale Bitcoin Trust’s performance and its DeFi Funds is highly above the DeFi Pulse Index (DPI), which is the biggest retail DeFi Index based on the market cap from July 14. However, despite the huge trading volume of the DPI, it still indicates a dip of about 2% within the same interval.
Bitcoin continues to drop | Source: BTCUSD on TradingView.com
Among all spot Bitcoin ETFs and Corporations, Grayscale possessed the most significant upsurge of BTC holdings through 2021. By the end of the year, the Fund accrued 645,199 BTC. This explains 71% of the corporate market and spot ETF BTC holdings.
Featured image from Pexels, Charts from TradingView.com
The largest crypto whales in the Ethereum ecosystem are utilizing the market dip to purchase more ETH, dollar-pegged stablecoins, and seven additional altcoins running on the leading smart contract platform.
According to the crypto whale tracker WhaleStats, the largest 1,000 non-exchange Ethereum wallets have accumulated an average amount of approximately $365,000 worth of ETH, $154,000 of Tether (USDT) and $43,000 of USD Coin (USDC) over the last 24 hours.
Moving down the list of most purchased tokens by Ethereum whales over the last day, we see an accumulation of the decentralized exchange (DEX) token Uniswap (UNI) and blockchain oracle Chainlink (LINK) at an average amount of approximately $1,500 per coin. That’s three times the amount that whales have been gobbling up memecoin Shiba Inu (SHIB), which saw an average purchase amount of $511 worth of SHIB over the same period.
It appears Ethereum whales are also feeding on small to mid-cap krill such as the metaverse gaming altcoin The Sandbox (SAND), decentralized finance (DeFi) platform UMA (UMA), and gold-backed Paxos stablecoin PAX Gold (PAXG).
Aside from Ethereum, USDT, and USDC, whales have been accumulating Ethereum layer-2 solution Polygon (MATIC) more than any other altcoin over the past day, at an average purchase amount worth approximately $32,000.
Source: WhaleStats
Polygon has been so popular amongst Ethereum whales that the fourth-largest whale in existence added 8,000,000 MATIC to its ever-expanding belly.
🐳🐳🐳🐳 ETH whale “Light” just bought 8,000,000 $matic ($16,559,999 USD).
— WhaleStats – the top 1000 Ethereum richlist (@WhaleStats) December 2, 2021
At the time of purchase, the 8 million MATIC was worth over $16 million.
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UMA has launched a new system that resolves price requests without relying on an oracle for data.
The system works “optimistically,” meaning disputes are only raised if the requested data is wrong.
UUMA launched as a DeFi platform for synthetic assets but hopes to become a powerful tool for building any kind of financial contract.
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UMA unveils its “Optimistic Oracle.”
UMA Launches Major Update
UMA, the DeFi protocol aiming to create “Universal Market Access,” has launched a new system for resolving price requests called the “Optimistic Oracle.”
The project’s co-founder Hart Lambur announced the update in a Thursday blog post. The concept of an Optimistic Oracle is something Lambur has long discussed when promoting UMA.
The protocol initially launched as a platform that allowed anyone to create synthetic assets but has evolved at a fast pace over the last year. It’s hoping to become a platform for all kinds of financial contracts, and the Optimistic Oracle is one of the fundamental parts of its design.
Most DeFi protocols rely on oracles such as Chainlink to get accurate price data. Synthetix, for example, uses Chainlink. UMA works differently in that it runs a “priceless” mechanism. It works by allowing anyone to push an answer on-chain, and disputes are only raised if the data is incorrect.
The Optimistic Oracle system features three actors: one requesting a price for the contract (“the requester”), one proposing the price (“the proposer”), and another that can dispute prices they disagree with (“the disputer”). As it operates optimistically, there are rarely ever any disagreements; UMA says that it’s seen “fewer than five legitimate disputes” over the last year.
The dispute period gets set by the requester, to which the proposer posts a bond and suggests a price. If there are no disputes, the data gets finalized quickly at a low cost. When the disputer disagrees with the proposal, the request gets sent to UMA’s Data Verification Mechanism. Disputes are handled by UMA token holders within a 48-hour time window.
UMA’s, the DeFi “Blue Chip”
Although oracles are seen as a cornerstone of the DeFi ecosystem, UMA’s innovation could prove to be an effective system for pulling price information on-chain. An Optimistic Oracle is particularly useful, Lambur writes, for “super precise data” such as prices related to options, insurance, and financial contracts. Many popular oracles struggle to provide precise data when required.
The Optimistic Oracle code has been audited by OpenZeppelin and already secured $200 million worth of synthetic tokens. It can be integrated into any DeFi protocol; the post notes that Opium Protocol already has partnered with the project. Andrey Belyakov, the founder of Opium Protocol, said:
“We are happy to cooperate with UMA mixing their optimistic oracle approach with our financial primitives to create mind-blowing use cases. No spoilers, but we are shooting for the moon.”
Meanwhile, UMA has promised “more integrations, partnerships, and improvements” over the next few months.
UMA is one of Ethereum’s leading DeFi protocols, widely regarded as a “blue chip” of the ecosystem. It recently launched a joint project with YAM called Degenerative Finance; the teams began offering WallStreetBets-tracked stocks after the GameStop saga in March.UMA has enjoyed steady growth along with the rest of the market this year, with a market cap of just over $1.5 billion. The UMA token trades at roughly $25 today.
Disclosure: At the time of writing, the author of this feature owned ETH, SNX, and several other cryptocurrencies.
This news was brought to you by ANKR, our preferred DeFi Partner.
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Badger DAO, an Ethereum-based decentralized finance (DeFi) protocol on absorbing Bitcoin liquidity, recently announced its partnership with Yearn.finance.
Work in Progress
Launched in December, BadgerDAO is a project that promotes bitcoin adoption (i.e., tokenized bitcoin iterations such as WBTC and renBTC) on Ethereum. So far, the project has seen tremendous growth, bringing more than $2 billion in deposits to yesterday’s highs.
The recent weeks have seen major price variations in the project’s native coin BADGER rising from lows in the $5 to highs of $80 with no predictability.
Promoting Bitcoin Adoption
Badger’s core team just unveiled that it will be working closely with Yearn.finance to bring value to the project’s bitcoin vaults, allowing depositors to earn additional funds on their initial capital.
Badger will migrate their current synthetic bitcoin vault balance to Yearn’s; the Yearn vault will display in Badger’s app. Additionally, the two protocols will work together to build a new WBTC vault while the fees will be shared between the Badger andYearn protocols.
Protocol developers consider this necessary because it will help create long-term value for depositors in the vaults compared to the vaults’ current state.
The partnership also means Yearn’s developers can create a bitcoin vault incentivized with Badger and DIGG prices. This partnership allows the two communities to share net income from this vault based on the totalTVL Badgerrun.
Currently, most of Badger’s profitability gets support from the issuance of BADGER, the BadgerDAO management token, and DIGG, a synthetic bitcoin rebasing. However, these returns are limited as only 21 million BADGERS, and 4,000 DIGGs currently are to be minted.
The platform prides itself as a developer first collective, which is why they allocated 15% of their total supply to the Badger developer mining program (currently valued at $258M).
The Future is Bright
This partnership emerged as enthusiasm for Badger DAO’s next product, CLAW, grew.CLAW will be a stablecoin backed by deposits in the DAO Badger vault. It means that consumers can deposit capital into the Badger DAO, get a return on that deposit, and then withdraw stablecoins to trade or use in various aspects of DeFi.
It is a stablecoin that you install after using one ofDAO’ssets as collateral and working with the UMA. The current deduction limit is $1 billion. Unlike DAI, the Claw has a limited expiration date by established publications.
BadgerDAO’s goal is to ensure vault strategists in the industry get appropriately rewarded for their hard work. As part of the collaboration, they leverage the Badger developer pool to incentivize these strategists further.
The global cryptocurrency ecosystem recorded a productive week, marked with a lot of cryptocurrencies soaring to new all-time highs (ATH). Amongst the digital currencies that saw new highs include Ethereum (ETH), which pumped to $1,689 on February 4th, Aave which soared to $506, and Maker which comes hit an ATH of $2,444.
Overall, the market was favorable to the majority of the digital currencies as those who did not record a new ATH also amassed as many gains as to delight their investors or HODLers.
The Superior Weekly Gains of UMA, XRX, and FUN
While a lot of cryptocurrencies boasted of notable gains, UMA (UMA), 0x (ZRX), and FunFair (FUN) came on record as the tokens with the biggest weekly gains of the top 100 cryptocurrencies by market capitalization.
UMA, or Universal Market Access, is a protocol for the creation of synthetic assets based on the Ethereum (ETH) blockchain. The protocol’s native token also dubbed the UMA has risen by 199.83% at the time of writing according to CoinMarketCap. The token’s growth has been impressive and coupled with a daily gain of 8.12%, the tokens are now changing hands at $30.06 per coin.
Another top gainer for the week is the 0x protocol, an infrastructure protocol that allows users to easily trade ERC20 tokens and other assets on the Ethereum blockchain without relying on centralized intermediaries like traditional cryptocurrency exchanges. The network’s native token dubbed the ZRX has surged by 72.89% at the time of writing to complement the weekly surge of 134.89% to trade at $1.35 per token. Despite these gains, however, ZRX is still about 46.72% below its all-time high price of $2.53 set about 3 years ago.
The last of the top three gainers for the week is FunFair (FUN), a gaming blockchain network developed by Jeremy Longley, Oliver Hopton, and technology entrepreneur Jez San OBE. FunFair has recorded a 112.46% growth in the past week. FUN currently has a market cap of $290.9 million and worth $0.04421.
DeFi Tokens Were Also On The Spotlight
The week was also very favorable for the hoard of DeFi tokens out there. Aave soared to a new all-time high as noted earlier and Uniswap (UNI) surged by 36.89% for the week. Uniswap also recorded an ATH of $21.51 during the week.
While Yearn.Finance got attacked this week leading to a $2.8 billion loss, on-chain metrics is bullish for most DeFi tokens as investors are HODLing them as they are doing Bitcoin (BTC), and Ethereum (ETH).
