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Krystal DeFi

Krystal Newsflash (9th Sep 2022)

Welcome to our recap of the major stories in the crypto world! Here’s what has happened over the past week:

🙅‍♂️ No more USDC, USDP and TUSD on Binance

Binance has made a huge decision to consolidate 3 stablecoin balances (USDC, USDP and TUSD) with your BUSD balance.

If you deposit any of these 3 stablecoins on Binance, it will be automatically converted to BUSD.

This is similar to how FTX and Coinbase operate, where multiple stablecoins are consolidated into a single USD balance.

Jeremy Allaire, the CEO of Circle (issuer of USDC), mentioned that this move is actually good for USDC.

Interestingly, USDT has been omitted from the stablecoin conversion, even though it is the top stablecoin by market cap.

The main concern about USDT is whether its reserves can fully back the total amount of USDT issued, and you can check out our analysis of their reserves here.

Bellatrix Upgrade ✅

The Bellatrix Upgrade has been completed on the Ethereum network.

This upgrade prepares the Beacon Chain to merge with the Ethereum Mainnet, which will result in Ethereum using Proof-of-Stake instead of Proof-of-Work.

You can find out more about what the Ethereum Merge is here, as well as what you need to do to prepare for it.

While there are potential forks that aim to maintain Ethereum in its Proof-of-Work state, multiple protocols and tokens have shown support for this upgrade to Proof-of-Stake.

More competitors for Ethereum? 👀

While The Merge is set to pave the way for an Ethereum network with greater scalability, other Layer 1 competitors have come up with major upgrades on their networks.

Algorand has launched State Proofs, which is set to increase Algorand’s transactions per second from 1,200 to 6,000.

Meanwhile, Cardano has also announced its Vasil Hard Fork will be conducted on the 22nd of September.

This upgrade is also set to improve Cardano’s network capabilities and reduce transaction fees.

While Ethereum is the undisputed king of Layer 1s, it seems to be facing stiff competition for the throne!

0️⃣ ZK rollup for BNB Chain

Zero-knowledge (ZK) rollup technology has been one of the major breakthroughs to further scale Ethereum.

BNB Chain has also announced its version of ZK proofs (zkBNB), which will act as a Layer-2 scaling solution on the BNB Chain.

With greater scaling, this will allow decentralised applications (Dapps) to enjoy faster transaction speeds on the network.

This will be particularly beneficial for GameFi projects or social media applications built on BNB Chain, which may require a lot more transactions to be processed at a given time.

🔥 LUNC introduces burn tax

A new 1.2% burn tax will be implemented on every transaction on the Terra Classic network.

This is aimed at reducing the total circulating supply of LUNC, which has reached almost 7 trillion tokens after UST’s depeg.

In theory, with a decrease in circulating supply, this may result in an increase in LUNC’s price.

Prominent centralised exchanges have supported this move, including Binance, Huobi and KuCoin.

Which Layer 1 do you think will emerge as the king? Are you optimistic about LUNC’s burn tax? Tweet us or send us a message on Telegram to let us know!

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Krystal DeFi

Krystal DeFi

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Multi-chain platform to easily access popular DeFi services and manage NFTs. Available on Desktop, Android & iOS.