A rocky week for BTCUSD; OI fell significantly to ~$5b on the correction to 11200. Meanwhile, ETH has taken off to set a new high for 2020. While speculators should take caution here, the DeFi related flow looks unstoppable, especially given the sky-high gas prices (>350 gwei yesterday).
The congestion is worsening as new protocols are emerging on a daily basis. Once word spreads, this means a lot of volume is moving to farm the next best thing. It’s an ongoing race and when speed is priority, there are often failures. For this week, it’s the collapse of YAM. We can describe the protocol as a hybrid of YFI and AMPLE. Even Arthur Hayes jumped on the bandwagon early, but all things came to an end when the team discovered the flaw in its rebase logic. Unintentionally, an overwhelming amount of tokens were minted in the governance vault (no voting rights). Thus, getting a majority vote to fix the rebase logic was also impossible. 90% of mkt cap was erased in ~3 hours.
I understand the dilemma for protocol creators; timing is everything but damage to your reputation can take months or even years to rebuild (in crypto that’s a long time). Well, at least it wasn’t an exit scam?
Much anticipated CRV is now live and trading @ a fully diluted mkt cap of $100b! Seems insane but with the lockups, the circulating supply has an extreme limit #pumpanomics. No details available yet on how to farm this.
Quick plug to end the note; Genesis Block will be running a SRM node! More details to follow.
In other news:
– Physical DOT release on Aug18
– Bitmex kicking off KYC program from Aug28
– BChain launching Ethereum-compatible smart contracts #Defi
Thanks for reading A Rocky Week for BTCUSD written by Head Trader Charles Yang.
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