Seeking Yield by Staked — Issue #6
Staked Launches Support For Cosmos, Analyzing Profitability of Uniswap Market Making, Fred Wilson Talks Open Finance, Bloqboard Partners With Wyre On OTC CDPs, Dharma Releases Statistics Dashboard, & Current Staking and Lending Yields
This is the sixth issue of Seeking Yield, a weekly update about the most interesting things happening in crypto asset staking and lending.
Staked Launches Support For Cosmos
The Cosmos Hub MainNet officially launched on Wednesday, March 13, 2019 at 7 PM EST (23:00 UTC).
ATOMs are the native and only staking token of the Cosmos Hub, representing the right to participate in consensus and earn inflationary reward and fees.
Nearly 48 hours after the launch of the Cosmos Hub MainNet, there are 75 validators, 61,711,799 ATOMs bonded, and ~ 26% percent of the ATOM supply bonded.
To delegate your ATOMs to Staked, please use the following validator address:
cosmosvaloper1we6knm8qartmmh2r0qfpsz6pq0s7emv3e0meuwKey Risks: Cosmos’s staking model uses “hard slashing”, which means that customer funds are at risk of being slashed in the event of a) double-signing blocks and b) extended validator downtime. You could lose a portion, or potentially all of your investment by participating in staking. Consider the risks and choose a validator carefully. Slashing risks are further detailed on our website.
Read more about delegating your ATOMs to Staked here!
Analyzing Profitability of Uniswap Market Making
Launched in early November, Uniswap, a decentralized exchange that utilizes a Constant Product Market Maker Model, has quickly emerged as one of hottest protocols in crypto.
To quantify this statement, the amount of ETH locked in Uniswap smart contracts has increased by more than 1,280% in the last three months.
Those who provide liquidity to Uniswap earn fees on their committed capital, as a 0.3% trading fee is charged to traders and added to the liquidity pool.
The question that arises: How profitable is providing liquidity to Uniswap?
In a recent issue of Token Daily, Mohamed Fouda presents a brilliant P&L analysis of Uniswap market making.
Read the full piece here!
Fred Wilson Talks Open Finance
In a recent blog post, Union Square Ventures co-founder and crypto bull Fred Wilson, wrote:
“While we wait for the blockchain/crypto technology to scale to the point where it can be the foundation of mainstream consumer applications (games, social media, e-commerce, etc), there is a sector where scalability is a little less important and where blockchain/crypto is starting to show some real signs of life.
In the crypto space, it is called Decentralized Finance, or DeFi for short. It includes, of course, all of the ICO activity largely built on top of Ethereum and the ERC-20 token. But it also includes thinks like Maker which is both a stable coin and a collateralized lending system. The collateral for the loans is what stabilizes the Maker stablecoin. We also are seeing other lending offerings develop in the DeFi world and we are seeing things like hedging, shorting, derivatives, and more, all built on a decentralized platform where there are no intermediaries, no clearinghouses, and the need for trusted third parties is much less, sometimes not at all.
This makes sense for a number of reasons. While the transaction requirements of financial services applications are not trivial, they are also not as demanding as mainstream consumer applications where millions of users are transacting with each other and the system in real-time.”
Fred Wilson clearly acknowledges decentralized or open finance as an early use case for crypto and the reasons that this reality came to be.
It will be exciting to watch the open finance ecosystem evolve, especially how companies of the future will build on this existing infrastructure.
Read the full blog post here.
Bloqboard Partners With Wyre For OTC CDPs
Bloqboard, a platform for borrowers and lenders on the Ethereum blockchain, and Wyre, an API enabling a compliant bridge between the crypto and fiat worlds, have partnered up to bring us secondary trading of MakerDAO CDPs.
This partnership enables a CDP holder to sell a position over-the-counter (OTC). Effective immediately, Bloqboard users will be able to pay down a MakerDAO CDP balance and unlock Ether supplied without actually interacting with Dai.
This is extremely helpful for individuals or funds with large CDPs, as it is currently quite cumbersome to acquire Dai in its illiquid state.
Ergo, this is a step towards continued adoption for MakerDAO and the entire open finance ecosystem.
Read the full post here.
Dharma Releases Statistics Dashboard
Dharma recently announced a new statistics dashboard featuring both trailing 7-day lever borrow volume and trailing 7-day lever lending volume.
As noted by the Dharma Twitter account, this dashboard can be thought of the amount of ETH locked up in Dharma.
Check out the statistics dashboard here.
Current Staking Rewards
We currently support Cosmos (ATOM), Loom Network (LOOM), Decred (DCR), Tezos (XTZ), Livepeer (LPT), Dash (DASH), EOS (EOS), and Factom (FCT).
Don’t see your favorite crypto asset? Iris Network, PIVX, Algorand, and NuCypher are coming soon!
We will keep you updated as we add support for new assets.
Sign up and follow the directions here for more about staking with us!
Current ETH Lending Yields
There are both on-chain and off-chain crypto asset lending solutions.
Below are various crypto asset lending solutions and annual ETH lending yields.
Sign up here to learn more about lending with Staked.
About Staked
Staked helps institutional investors reliably and securely compound their crypto by 5% — 100% annually through staking and lending. Staked runs validation nodes for proof-of-stake currencies and offers access to on- and off-chain lending options that provide an annualized yield of in-kind currency.
If you enjoy Seeking Yield or are a fan of what we are building at Staked, give us a shout on Twitter, LinkedIn, or tell your friends and colleagues.
