Connect with us

News

Waves innovates financial markets by launching DeFo via Neutrino

Published

on

DeFo is launched on Neutrino
Stablecoins pegged to national currencies are now available in DeFo, the Neutrino protocol’s extension, for swapping and staking.


The Decentralized Forex (DeFo) extension, launched on the Neutrino protocol on September 29, is available on Waves.Exchange, facilitating seamless swaps and staking of stable-price assets pegged to national currencies, indices and commodities.

DeFo, an open-source extension, can be potentially integrated into any interface. The DeFo extension comes as the first step towards the creation of a truly decentralized global financial system. At a time when DeFi revolutionizes the traditional banking system, the creation of frictionless bridges between crypto and fiat is crucial.

DeFo is a major step in that direction, as it opens up opportunities for high-interest savings and cheap remittances, leveraging the Waves blockchain’s high speed and low fees. As DeFi aims to augment traditional finance rather than replace it, bridging the fiat and crypto spaces is vital. And DeFo is set to play a major role in this process.

By launching DeFo, Neutrino aims to enable easy access to financial instruments, such as savings, investments and currency exchange, for residents of those countries where local banking systems are inadequate or offer unfavorable conditions.

At the launch time, seven stable coins including USDN and six community-chosen stablecoins pegged to national currencies are available for swapping and staking on Waves DeFo, as well as for trading on Waves.Exchange:

  • Neutrino EUR (EURN), pegged to Euro
  • Neutrino CNY (CNYN), pegged to the Chinese yuan
  • Neutrino JPY (JPYN), pegged to the Japanese yen
  • Neutrino RUB (RUBN), pegged to the Russian ruble
  • Neutrino UAH (UAHN), pegged to the Ukrainian hryvnia

Neutrino NGN (NGNN), pegged to the Nigerian naira.

These are algorithmic stablecoins issued by smart contracts, backed by USDN and WAVES tokens, while their price stability is maintained by NSBT’s reserve algorithm. A network of secure oracles will constantly supply up-to-date currency prices from fiat Forex exchanges.

The community could set up pools, share liquidity, and influence the future development of the DeFo extension and Neutrino’s product roadmap in general, through on-chain governance instruments. Thus, the community will decide what assets will be subsequently listed on DeFo.

For more information on how to issue, trade and stake assets on DeFo and on the underlying mechanisms, kindly check out the Waves.Exchange website.

We expect that the DeFo extension will be added to multiple interfaces in the nearest future. Stay tuned!

Learn more!

Neutrino website: https://neutrino.at

Medium: https://medium.com/wavesafrica

Twitter: https://twitter.com/waves_africa

Telegram : https://t.me/wavesafrica


DISCLAIMER: This is a sponsored post, and does not in any way reflect the views or opinions of Decentralize Africa, its staff or its founders. Readers are encouraged to do their own research or consult a registered financial advisor before making any decisions.

Comments
Continue Reading
Click to comment

Leave a comment:

News

Financial Leaders from G7 Release Guidelines for Central Bank Digital Currency

Published

on

Source: World Atlas

At a meeting that was held in Washington, yesterday, October 13, G7 leaders discussed central bank digital currency and endorsed 13 public policy principles with regards to their implementation. The financial leaders from G7 agreed that CBDCs would complement cash and should not be detrimental to the monetary system. The G7 leaders have been discussing CBDCs this week concluding that they should do no harm and meet rigorous standards.

It should be noted that G7 includes finance leaders in advanced economic nations comprising of Canada, France, Germany, Italy, Japan, the U.S and the U.K. the G7 leaders make it mandatory that any newly launched CBDC should not harm the central bank’s ability to perform its duty of maintaining financial stability. In a joint statement by the G7 finance ministers and central bankers, they said that, 

“Strong international coordination and cooperation on these issues help to ensure that public and private sector innovation will deliver domestic and cross-border benefits while being safe for users and the wider financial system.” 

The joint statement further states that CBDCs are complements to cash and could serve as a liquid or safe settlement assets with an added advantage of anchoring existing payment systems. CBDCs issuance should be entrenched in a long-standing public commitment to transparency, rule of law, and sound economic governance. The statement added at CBDCs must be so efficient that they are fully interoperable on a cross-border basis. 

The G7 leaders agreed that they had a duty to minimize the incidence of ‘harmful spillovers to the international monetary and financial system” 

The G7 statement reiterated a similar statement earlier made by G20 that no global stablecoin project should begin operation until such a token has addressed legal, regulatory and oversight requirements. 

Countries like China and Nigeria are ahead of the pack with regards to the adoption of digital Yuan and Naira respectively. China’s crackdown on cryptocurrency may be a step forward for the country’s plan to promote its digital Yuan. Nigeria, on the other hand, postponed the launch of its eNaira in deference to the 61st anniversary of Nigerian independence on Oct 1. 

However, countries like the US and the UK are dragging their foot with regards to the introduction of CBDCs to their financial system. There are insinuations that America is in danger of being left behind technologically and financially if it doesn’t get serious with the implementation of CBDC in its financial system.

Comments
Continue Reading

Learning Guides

Understanding Speculation and Crypto Volatility

Published

on

Everyone who dabbles in the crypto industry learns almost immediately that the market is very volatile and oftentimes things can change very quickly. That volatility is the fundamental reason why some investors make absolutely stunning gains in so short a time and others lose a lot of money as well. Trading in crypto is one of the riskiest ventures any person can undertake and as they say, it’s not for the faint of heart. The risks can be mitigated of course and sometimes depends specifically on the coin or crypto asset being traded on, barring general market trends.

Nevertheless, to get to the bottom of the volatility concept, one must understand speculation in the market. To start off, the concept of speculation isn’t limited to cryptocurrencies, on the contrary, speculation has existed for as long as economics and trading has. But it is worth saying that speculation is often a feature of novel sectors, assets, commodities and the like. So, even though cryptocurrencies have been around for more than a decade, they’re still in their infancy as far as markets go. One could say that the market is still trying to find its feet.

One of the fundamental reasons why cryptocurrencies are so volatile is that they are fundamentally backed by nothing of value outside the attention that they get. Unlike many fiat currencies which are either pegged to another currency’s value or whose value is unilaterally determined by a central authority, cryptocurrencies only derive value as a function of how many people are willing to use is to transact, i.e. trust in the asset because other people trust it. As a rule of thumb, the larger the number of people who accept the asset, the more valuable it becomes.

This is one of the hallmarks of speculative trading. In the crypto world or in any market that’s novel and untested, many people are in it to win it which means their strategies in trade has the objective of making as much profits as possible in the short term. Therefore, the market enters a subtly dangerous cycle of rapidly changing prices of assets. Basically, investors typically buy assets when prices are low and wait. As more investors are attracted to the commodity for its low prices, it sets off a cascade where more people buy in, causing the price to steadily rise. 

However, all good things must come to an end and it almost always gets to a breaking point whereupon the price gets high enough for investors to begin to sell. This reverses the earlier cascade and as more and more investors pull out, the prices can fall dramatically causing even more to sell off in fear of losing whatever investments they have left. The prices having fallen resets the game and primes investors to begin buying again.

Volatility has been one of the talking points of many critics of cryptocurrencies often comparing it to a Ponzi scheme. And in certain cases, persons of interest with large pulls and audiences can substantially affect the rate at which prices rise and fall. Other factors include government regulations. Volatility at its core reflects the often chaotic nature of trade and market interactions and human hopes and fears.

Comments

Decentralize Daily

From Crypto and Blockchain to AI, Fintech and Web 3.0 delivered twice in a week (Mondays and Fridays)

Continue Reading

Market Watch

What China’s crypto clampdown means for investors

Published

on

Over the weekend, China, the biggest crypto mining country once again, began to clamp down on cryptocurrency. Ten Chinese agencies including the central bank and banking, securities and foreign exchange regulators have vowed to work hand in hand to expose illegal cryptocurrency activity.

China has always placed stricter rules on cryptocurrencies but the new rule has made all crypto-related activities illegal. According to the People’s Bank of China (PBOC), it is illegal to cryptocurrency trading and anyone that does so will be severely punished; this includes those within China that are working for overseas platforms. To fully phase out the cryptocurrency mining sector, the National Development and Reform Council (NDRC) said that it would launch a nationwide crackdown on cryptocurrency.

Over the years, China does not recognize cryptocurrency as a legal tender. In 2013, the Chinese government referred to Bitcoin as a virtual commodity that individuals are allowed to freely participate in. This freedom, however, precludes banks and payment companies from providing services that are Bitcoin related.

In 2017, Initial Coin Offering (ICO) was banned. The ban was also extended to the conversion of legal tenders to cryptocurrencies by trading platforms which led most of the platforms to shut down operations in China. The crackdown led 88 trading platforms and 85 ICO platforms to withdraw from the market as of July 2018.

To China, the crackdown on cryptocurrency is necessary as the country is trying to launch its official digital currency and the need to fulfil its 2060 climate targets. The crackdown was necessary as cryptocurrency was seen as infringing on people’s properties and ‘disrupting the normal economic order.’

The statement by PBOC on Friday was unequivocal as the current crackdown is distinct from the previous ones. In his statement on Friday, PBOC called Bitcoin, Ether and Tether ‘legally irreparable’ and should not be used. The new regulations forbid financial institutions, marketing and IT providers from supporting crypto-related activities. The activities of both crypto holders and miners are now considered illegal. This is what Henri Arslanian, a PwC crypto leader termed as “No ambiguity. No room for discussion. No grey areas” in his tweet.  

What does this mean for crypto holders worldwide?

The major effect of China’s crackdown on cryptocurrency is the increase in price volatility. While volatility is a common phenomenon in the crypto world, a crackdown initiated by the world biggest cryptocurrency mining country will have a huge effect on market price.    

After the PBOC interview, Bitcoin fell by 4% within 24 hours and is currently trading at $43,320. Ethereum fell by 6% and it is currently trading at $3,036. With the Evergrande debt crisis and the huge blow bedevilling the crypto market, a clampdown by China would most likely keep the market price on the red until another good news crops up.

Comments

Decentralize Daily

From Crypto and Blockchain to AI, Fintech and Web 3.0 delivered twice in a week (Mondays and Fridays)

Continue Reading

TRENDING

%d bloggers like this: