In the 2017 bullish boom, Initial Coin Offerings (ICOs) captured the attention. In the last bull market of 2021, Decentralized Finance (DeFi) and yield farming dominated the scene. Now, with a new bullish cycle underway, 2024 promises the arrival of more sophisticated financial products in the field of cryptocurrencies. From complex derivatives to structured products, this year will mark the entry of advanced financial instruments and high-end traders into the fascinating world of digital assets.

Following the trend of previous cycles, the crypto ecosystem continues its close relationship with the traditional financial market (TradFi). Bitcoin, originally designed as an alternative payment system, and ICOs, inspired by TradFi’s Initial Public Offering (IPO) of 1783, are clear examples of this connection.

Meanwhile, the DeFi ecosystem replicates traditional financial services, such as lending, borrowing, and yield generation, but in a decentralized manner. It is logical to expect that, eventually, the more complex financial vehicles will experience an update on the Web3.

The crypto derivatives market has experienced impressive growth, with trading volumes reaching record numbers in November. Although the share of the overall crypto market has declined, open interest in crypto options has reached historic levels, evidencing a trend towards more sophisticated derivatives.

Alongside this recovery, more advanced derivatives are emerging, such as the boom in decentralized perpetual futures trading and innovative risk management mechanisms. In the new year, growth is expected in exotic options, structured products and covered debt bonds (CDOs) in the crypto space, signaling a significant expansion.

What will drive interest in these innovative derivatives? Three key factors stand out for 2024 and beyond. First, growing institutional interest in digital assets will drive demand and innovation. Second, after the crypto winter, investors will look for high yields, focusing on derivatives and structured products because of their potential for high yields and loss protection. The third factor is the search for security after destabilizing events in the crypto market in 2022, making capital-protected products attractive.

As the crypto market matures and the focus is on predictable returns, structured products and complex derivatives will play a crucial role. Preserving capital becomes a priority in a market that is still recovering from the events of 2022, driving innovation and rapid growth in these areas, marking one of the defining innovations of the current bull market.

K. Tovar

Source: Cointelegraph

(Reference image source: Kanchanara, Unsplash)

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La entrada In 2024 cryptocurrencies will bring innovative products apareció primero en Bitfinance.

This September 26, the first Polkadot hackathon will take place for developers of the ecosystem in Latin America and Spain. It will be in a 100 % online format, with various activities on topics such as NFT, smart contracts, blockchain technology.

The Hackaton LATAM 2022 will be the virtual stage, for six weeks, to promote the use of new decentralized technologies and the digital economy both in Latin America and in Spain. It will have mentorships, workshops, round tables and other activities for the interested public.

According to the organizers, “the Polkadot Hackathon seeks to attract local developers to the network, promote the uses of blockchain in the Latin American region, and establish new ties between the Spanish-speaking community of Polkadot from around the world, since You can also participate from Spain”.

Hackathon Polkadot online for developers

The Polkador hackathon program has several categories. The one related to Web3/Blockchain tools is oriented to all kinds of public infrastructure tracks, UI/UX, interfaces, experiences, development of tools and applications of the Polkadot ecosystem. Then there is the section dedicated to smart contracts, which focuses on “transpiler for smart contracts, which provide interoperability with Wasm, applications written in Ethereum Virtual Machine (EVM) running on Substrate and applications written in Wasm running on Substrate. “.

There is also the DeFi category, for the construction of solutions in this line. And finally, the category of non-fungible tokens, where it will be addressed from the development of collectibles, through games, to NFT applications.

Participants can already register for the event. After the work sessions, they must present their projects based on the DOT ecosystem to be eligible for the prizes, with a general amount of 120,000 dollars.

M.Pino

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Source: bit2me

La entrada Polkadot Hackathon in Latin America and Spain apareció primero en Bitfinance.

The Innovation Center of the Bank for International Settlements (BIS) announced the development of a set of projects focused on crypto payments, among which a cryptocurrency market intelligence platform and security of central banks digital currencies (CBDC) for retail.

With the execution of the project, it is planned to establish an “open source market intelligence platform to shed light on market capitalizations, economic activity and risks to financial stability.”

The BIS cryptocurrency market intelligence platform will enter the framework of the Eurosystem, which aims to “provide verified data on cryptocurrency projects”.

An important factor for the execution of the project is the different problems or collapses that some stablecoins and decentralized finance (DeFi) lending platforms such as Terra (LUNA) and Decentralized USD (USDD) have experienced.

Greater security and lower costs

The development of a market intelligence platform goes against “the norm of relying on self-reported information by unregulated companies when it comes to data on backing asset, trading volumes and market capitalization.”

The Bank for International Settlements also pointed out that quantum computers can easily break the cryptography used by traditional financial institutions to attest and settle payments. Hence, the decision to manage a Eurosystem Center project to experiment with different “cryptographic solutions and to examine the overall performance of the traditional system”.

Likewise, the institution’s Sela initiative will investigate “technological solutions to allow the issuance of CBDC through intermediaries, while guaranteeing greater security and lower costs.”

M. Rodríguez

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Source: es.cointelegraph.com

La entrada BIS to launch an intelligence platform for cryptocurrencies apareció primero en Bitfinance.

The Central Bank of Brazil (BC) selected nine companies as allies to work together on the development of its digital currency, CBDC, where some decentralized finance (DeFi) platforms such as Aave, the Brazil-based digital asset exchange Mercado Bitcoin and the financial entities Santander Brasil and Itaú Unibanco.

Other selected partners include the Brazilian banking federation (Febraban), German payments company Gieseck+Devrient, and Brazil-based banking service Tecban and its partner Capitual. One of the projects includes the collaboration between Brazil’s Visa, Microsoft and blockchain firm ConsenSys. As well as Vert, the software services company, Digital Asset and the management consulting company, Oliver Wyman.

After accepting approximately 50 project proposals from different companies from Brazil, Germany, USA, Israel, Mexico, Portugal, the United Kingdom, and Sweden, the central bank decided to select nine allies to execute the project that will aim to create its digital currency, CBDC, according to what was expressed in a press release released by the official entity.

The financial entity highlighted that it is evaluating use cases for a digital currency and its technological feasibility. “Given the large number of projects of relevance and interest for the development of the real digital initiative, the selection process sought a balance between the diversity of the portfolio of proposals submitted to the laboratory and the need for detailed monitoring of the selected projects.”

The projects were selected by the Brazilian central bank for the implementation phase, estimated to start on March 28 and remain until July 27 of this year.

Brazil is a pioneer in the region’s crypto market

The most important economy in the Latin American region, through its official financial entity, announced last November 2021 that it had started the pilot test to create its digital currency, which would be backed by the Brazilian real (BRL) and the culmination of the project was scheduled for 2024.

It is important to note that “Brazil has become the region’s pioneer in the field of digital assets.” The mayor of the city of Rio de Janeiro, Eduardo Paes, plans to invest 1 % of the treasury in Bitcoin, while the assembly members work on the approval of laws and regulations that allow regulating the use of cryptocurrencies in favor of the development of the sector in the country.

As will be recalled, the Senate Economic Affairs Committee (CAE) recently passed a bill that has the purpose of regulating the crypto market, and it is up to the Senate to discuss and vote on the legislative proposal to regulate cryptocurrencies. In 2021 Brazil was the first Latin American country to launch a Bitcoin ETF.

M.  Rodríguez

Source: diariobitcoin.com

La entrada Brazil will work with private allies in its digital currency apareció primero en Bitfinance.

The DeFi loan platform, Aave, has designed a tool called private pool, which will be at the service of public chains and will aim to provide solutions that contribute to learning and collaborative strengthening between CeFi and DeFi, as indicated by the head of development of the company’s institutional business, Ajit Tripathi.

For the institutional representative, the tool turns out to be “a great solution to promote collaborative learning between CeFi and DeFi” designed to comply with AML regulations where users must undergo the verification “Know your customer” by the relevant partners.

The company’s aspirations are set to build a long-term core network: “We are in advanced stages of development. Please stay tuned to this space for more information.”

Although the exact steps to be followed by institutions wishing to participate in the tool are not yet known, Aave prepares its platform to provide an innovative and strategic plan for both CeFi and DeFi.”This is a space for innovation and learning for both CeFi and DeFi.

“As I have said, institutions, the DeFi community, and regulators are excited about DeFi’s promise to create a fairer, more efficient and more inclusive financial infrastructure for everyone, and we are grateful to be able to contribute to that,” Tripathi reported.

K. Villarroel

Source: cointelegraph

La entrada Aave reveals a pool of loans for institutions apareció primero en Bitfinance.

MetaMask, known as the ethereum wallet and browser extension has presented an increase in the list of its followers of 5 million monthly active users, a figure that generates an impact on the growth of decentralized applications.

Since 2020, the platform has presented a progressive increase of 5 times the number of accumulated users, which means that the last six months MetaMask has highlighted the strength of the crypto market. At the end of last year, the company registered its first million active users, as reflected in the following chart:

For its part, the blockchain company ConsenSys explained that more and more people “use MetaMask to obtain a supplementary income or to make long-term investments. Many people cannot access their local banking system and therefore need an alternative technology to act as a savings account.”

It is important to mention that MetaMask is one of the companies that since its inception contributed to the strengthening not only of DeFi but also of exchanges, at a time when decentralized finance was a very attractive option for investors in financing the purchase. of tokens.

DeFi remains one of the most popular trends in the cryptocurrency market, with a total locked value, or TVL, of approximately $ 114 billion. TVL peaked at $ 123 billion earlier this month, according to industry data.

K.Villarroel

Source: cointelegraph

La entrada MetaMask active users reached 5 million apareció primero en Bitfinance.

The DeFi Nexus Mutual hedging protocol will be the proposal promoted by the project, which has included a list of eligible centralized exchanges who will be shielded against any event that disrupts the security of the platforms.

The protocol will allow users trading on Binance, Kraken, Coinbase and Gemini to now purchase protection in the event of a hack or extended downtime for withdrawals.

The program launched in late 2020 included centralized lenders such as: BlockFi, Celsius, Nexo, Ledn and Hodlnaut. Currently, to be able to enjoy coverage, it is necessary for the user to become a member of the Nexus mutual and undergo verification.

It is important to mention that Nexus is not an insurance provider, the difference is that the insurance has contractually defined clauses that establish how and when a claim must be fulfilled.

The decision to pay claims at Nexus Mutual is solely at the discretion of the members and participants. While in practice this may not be a problem, extreme cases could put the system to the test.

K. Villarroel

Source: cointelegraph

La entrada DeFi protocol strengthens security against cyber attacks apareció primero en Bitfinance.