Binance’s BNB Beacon Chain mainnet is gearing up for a critical hard fork, which introduces a novel feature that enables the blockchain to stop new block production under specific conditions.
The impending upgrade, called “ZhangHeng,” is slated to take place at block height 328,088,888, expected to happen on July 19, as revealed in a statement from BNB Chain on July 12.
This significant hard fork will implement the Binance Evolution Proposal BEP-255, aimed at introducing on-chain asset reconciliation.
The addition comes in light of cross-chain bridge exploits such as the BNB Smart Chain breach in October 2022, which Binance believes can be mitigated by this strategy.
READ MORE: President Xi Jinping Highlights CBDCs and Expansion of SCO
Despite security enhancements like BEP171, Binance affirms the need for asset security on the BNB Beacon Chain, especially following bridge exploitation.
The BEP-255 implementation allows tracking of user balance changes per block, and reconciliation to spot potential anomalies.
Binance points out that if any reconciliation errors are detected, block production will cease. This move may affect bridges, deposits, and withdrawals on exchanges but is deemed crucial for the chain and user protection.
Restarting the blockchain will necessitate a hard fork and resolution of the detected reconciliation error. In case of an exploit, the related accounts will need to be corrected or blacklisted.
The blockchain’s resumption will also restore downstream services.
The upcoming hard fork also involves other upgrades, such as fixing a bug that curbs rogue key attacks. Existing vote addresses will be cleared when the hard fork reaches its height, and validators will have to re-add vote addresses.
The update is also designed to enable the chain to handle complex business rules and logic more effectively.
Binance highlights the need for two-thirds of validators to upgrade to software version v0.10.16 prior to the hard fork to avoid complications. Failing to upgrade would prevent full nodes from executing further blocks post-hard fork.
BNB Chain has provided comprehensive instructions for node operators to conform to the hard fork upgrade. BNB token holders using Binance.com, other centralized exchanges, or cold wallets, however, need not take any action presently.
On June 19, BNB Chain introduced opBNB, a new Ethereum Virtual Machine-compatible layer-2 scaling solution based on Optimism’s OP Stack.
Singapore, Singapore, July 13th, 2023, Chainwire
Recently, ungrounded allegations are spreading on social media regarding a supposed “decline in assets” at global major exchange Huobi. To prevent panic among users, Huobi has released a necessary response based on data and facts.
On July 1, the crypto giant published its Merkle Tree-based proof of reserves for July, confirming that the total assets the platform holds in custody for users exceed $3 billion.
Misleading claims stem from outdated data on third-party platform
Since July 6, some social media influencers have posted unsubstantiated claims about “asset decline” at Huobi. In response, the exchange made the following statements:
Those influencers’ claims are based on asset data provided by Glassnode. However, according to professional analysis, the data obtained by Glassnode is inaccurate, with evident gaps and omissions in addresses. This is due to the following reasons:
1. Huobi’s major cold and hot wallet addresses used for asset storage have been changed since the completion of a share transfer on October 8, 2022.
2. Huobi’s assets are distributed across multiple chains, including 400 million USDT on TRON, 6,500 TRC20 BTC, and a portion of ETH used as collateral for ETH validators. However, Glassnode failed to promptly update relevant data based on this information and changes.
Huobi has established contact with Glassnode and requested the necessary data updates.
Huobi has voluntarily disclosed its major addresses since the end of November 2022. Following the collaboration with Nansen, a blockchain analytics platform, Huobi has provided Nansen with the relevant addresses. Furthermore, all address changes whether resulting from the replacement of major shareholders or due to system upgrades have been synchronized with Nansen.
The Huobi assets details displayed on Nansen can be found publicly at: https://portfolio.nansen.ai/dashboard/huobi
In reality, this steep decline is not caused by any changes in the platform security or user trust. Instead, it can be attributed to Huobi’s withdrawal from certain markets. Therefore, it is important to understand that both the fluctuations in user base and assets are within the realm of normalcy.
Since the beginning of 2023, Huobi has maintained a stable and upward momentum, without experiencing any significant changes.
Pursuit of asset transparency by upholding highest industry standards in safeguarding user assets
As a prominent digital asset exchange, Huobi prioritizes its users and considers the protection of user funds as its primary responsibility. Huobi’s on-chain wallet assets are publicly transparent, and users can verify at any time that their funds have a 1:1 backing of real assets.
Starting in 2023, Huobi updates the Merkle Tree-based proof of reserves every month and publishes it to the public. Currently, Huobi’s on-chain assets ensure permanent 100% redeemability for user assets. Users can view Huobi reserves of BTC, ETH, BETH, TRX, USDT, and HT in detail on the asset audit page of Huobi’s official website, including reserve ratio, Huobi wallet’s assets, and Huobi’s user assets.
The specific asset proof of reserves can be viewed at: https://www.huobi.com/en-us/finance/merkle/.
The assets applicable for Proof of Reserves are BTC, ETH, BETH, USDT, TRX, and HT.
Huobi’s current reserve ratios are as follows:
USDT: 100%
BTC: 101%
ETH๏ผBETH: 103%
HT: 103%
TRX: 103%
In the future, Huobi will continue to publish Merkle Tree PoR to the public and put users first with professional and reliable digital asset trading services in line with high industry standards.
About Huobi
Founded in 2013, Huobi has evolved from a crypto exchange into a comprehensive ecosystem of blockchain businesses that span digital asset trading, financial derivatives, wallets, research, investment, incubation and other areas. Huobi serves millions of users worldwide, with a business presence covering over 160 countries and regions across five continents. Its three development strategies – “global development, technology drives development, and technology for good” underpin its commitment to providing comprehensive services and values to global cryptocurrency enthusiasts.
Contact
Michael Wang
[email protected]
London, England, July 13th, 2023, Chainwire
Decentralized wireless network operator World Mobile has announced it has secured licensed spectrum in the United States of America. This strategic move marks a significant milestone in the companyโs mission to bring reliable and affordable internet access to under-connected areas of the United States.
World Mobile has secured up to 20MHz of spectrum across the states of California, New Mexico, Nevada and Utah, providing a solid foundation for World Mobileโs US expansion plans. The spectrum will play a pivotal role in enabling the companyโs decentralized hybrid-connectivity solution, which combines blockchain technology with aerial and terrestrial infrastructure to provide connectivity at a cost multiples lower than traditional mobile network operators.
World Mobile CEO Micky Watkins said: โBy securing licensed spectrum, we are signaling our intent to revolutionize the connectivity landscape in the United States. Securing spectrum strengthens our position to deploy our network and support a profitable sharing economy. We believe in harnessing the collective power of individuals and communities to create a more inclusive and connected world.โ
World Mobile securing licensed spectrum aligns with the US governmentโs plan to support connectivity across the country. President Biden recently announced a $42 billion high-speed internet initiative, which aims to expand broadband access to rural and low-income areas, as well as to promote competition and affordability in the market.
The Commerce Department has officially distributed the funding, awarding grants at State level, ranging from roughly $27 million to more than $3.3 billion, based largely on local needs.
World Mobile plans to deploy its service in the US later this year, following a successful commercial launch in Tanzania, and field tests in Kenya, Nigeria and Mozambique. The company has recently been bolstered by the appointment of ex-Softbank India country head and Bharti Airtel CEO, Manoj Kohli, who brings over 40 yearsโ of telecoms experience to the leadership team.
About World Mobile
World Mobile was founded with a far-reaching goal: to connect everyone, everywhere while advocating for economic freedom and dignity. Unlike traditional mobile networks, World Mobile is based on blockchain and incentivizes people to be part of a sharing economy that taps into the trillion dollar global telecom market. Individuals and business owners around the world can operate nodes on its network and bring their community online while earning revenue.
Learn more: https://worldmobile.io/
Contact
Dan Edelstein
[email protected]
Ripple, the blockchain company currently facing a lawsuit from the United States Securities and Exchange Commission (SEC), may have to wait a little longer for a decisive ruling.
A district court judge in the U.S., Paul Barbadoro, declined to determine whether the secondary sale of LBRY Credits (LBC) qualifies as a security.
On July 11, Judge Barbadoro made his decision in a case brought by the SEC against LBRY, a decentralized content platform.
This ruling could establish legal precedent for Judge Analisa Torres, who will preside over the SEC’s case against Ripple in the coming months.
READ MORE: Bitcoin Attempts Fresh Breakout as Battle for Yearly Highs Intensifies
In his ruling, Barbadoro abstained from taking a position on whether the registration requirement applies to secondary market offerings of LBC.
The secondary market involves trading securities between traders, while the primary market entails direct trading from the issuing company.
John Deaton, a U.S. lawyer representing numerous XRP tokenholders, sought clarification from Barbadoro regarding LBC’s classification as a security.
However, the judge upheld his “judicial restraint” and refrained from providing a definitive answer.
This recent opinion from Barbadoro represents a reversal from his stance during a January appeal hearing, where Deaton successfully argued that the secondary sale of LBC should not be considered a securities offering.
During the appeal hearing, the New Hampshire judge clarified that LBC only qualifies as a security when sold directly.
The SEC also acknowledged that secondary market sales of LBC do not fall under the definition of a security.
Although the SEC obtained a summary judgment in November 2022, it opted to settle for $22 million during the appeal hearing in January.
In May, the SEC revised the amount and requested a reduced fine of $111,000 due to LBRY’s financial struggles.
In the meantime, Jeremy Hogan, a U.S.-based attorney and advocate for Ripple, shared with Cointelegraph that Judge Analisa Torres is expected to deliver her ruling within the next few months.
Hogan anticipates that the broader outcome will be known before the year’s end, unless Ripple achieves a complete victory.
If the details of the ruling are unfavorable, appeals are likely to prolong the legal process.
However, Hogan reassured typical XRP holders that the final outcome would not significantly affect them.
Investment veteran Cathie Wood, known for her pro-Bitcoin stance, has decided to take some profits from ARK Invest’s significant Coinbase holdings.
ARK sold 135,152 Coinbase shares, amounting to $12 million, from its ARK Innovation ETF.
This sale represented 0.14% of the fund’s total holdings.
The move comes as the price of Coinbase stock experienced a sharp increase, briefly surpassing $90 on July 11 before closing at $89.
This is the second time this year that Wood has taken profits from Coinbase shares. In March, ARK sold 160,887 shares for $13.5 million.
However, prior to these profit-taking moves, Wood’s firm had been actively accumulating Coinbase stock in various ARK funds. In June alone, ARK purchased about $40 million worth of shares.
In previous months, they had bought around $33 million in April and May, as well as $117 million in March.
Coinbase executives have also been selling their shares amid the price rally. CEO Brian Armstrong and other senior executives sold a combined total of 88,058 shares worth $6.9 million on July 6. In June, Coinbase’s chief accounting officer, Jennifer Jones, sold 74,375 shares, netting $5.2 million.
Despite facing a securities violation lawsuit from the U.S. Securities and Exchange Commission, Coinbase’s stock has been performing well.
The growth can be attributed to the anticipation surrounding the BlackRock spot Bitcoin ETF filing, where Coinbase was named a “surveillance-sharing” partner.
Overall, Wood’s decision to take profits from Coinbase shares reflects a calculated move to lock in gains.
While the cryptocurrency exchange continues to face legal challenges, its stock price has surged over the past month, increasing by more than 60%.
Wood’s active participation in accumulating Coinbase shares earlier this year indicates her belief in the long-term potential of the company.
As the cryptocurrency market and related investments evolve, market participants will continue to closely monitor the developments surrounding Coinbase and its role in the growing crypto ecosystem.
China’s President Xi Jinping addressed the 2023 Shanghai Cooperation Organization (SCO) Summit, and Xinhua News Agency published the transcript of his speech. President Xi welcomed Iran as a full member of the organization and praised Belarus for joining.
He also emphasized the significance of central bank digital currencies (CBDCs) and proposed expanding the use of local currency settlements among SCO countries, promoting sovereign digital currency cooperation, and establishing SCO development banks.
The People’s Bank of China reported in January that there were 13.61 billion digital yuan CBDCs in circulation, although it represented only a small fraction of the monetary supply.
Despite continuous promotion, the digital yuan has faced challenges in gaining widespread adoption.
READ MORE: President Xi Jinping Advocates for CBDC Expansion
In other news, a SIM card linked to the digital yuan CBDC will soon be available to Chinese consumers, according to a report by East Money.
The embedded digital wallet will allow individuals to make payments for phone bills even when their phones have no power.
Hong Kong’s crypto licensing costs have surged to HK$100 million ($12.77 million) since the license’s inception on June 1, as reported by Tencent News.
Obtaining a regulatory license is necessary for crypto exchanges to continue operations in Hong Kong.
Some teams have relocated to Malaysia, citing cost advantages and favorable conditions for crypto projects in Southeast Asia.
Multichain, a Chinese cross-chain bridge protocol, experienced a security breach resulting in the loss of over $126 million in funds.
The protocol’s private keys were compromised, and the stolen assets were transferred to another wallet address.
This incident follows a previous hack in July 2021, and the CEO of Multichain, Zhao Jun, has been missing for nearly two months, with rumors suggesting his arrest by Chinese authorities.
Singapore’s Monetary Authority will require Digital Payment Token (DPT) providers to place clients’ assets in a statutory trust by the end of the year.
Retail investors will be prohibited from accessing crypto lending and staking services, although these services will still be available to institutional and accredited investors.
The MAS aims to enhance investor protection and market integrity in DPT services.
Thai cryptocurrency exchange Bitkub has sold a 9.22% equity stake worth $17.1 million to Asphere Innovations PLC.
Bitkub holds significant assets and customer deposits, along with liabilities, and reported a gross profit in the first quarter of 2023.
It is the largest crypto exchange in Thailand, but its total assets decreased by 64% between December 2021 and December 2022.
South Korean NFT firm Line Next signed an agreement with Japanese video game giant Sega to remake one of Sega’s classic games on its Web3 gaming platform, Game Dosi.
The platform currently offers six titles, allowing players to buy and sell NFT heroes and compete against others.
Sega, known for its iconic franchise Sonic the Hedgehog, is a prominent player in the Japanese video game industry.
In a recent blog post, blockchain security and analytics firm Chainalysis suggested that the multimillion-dollar exploit of the cross-chain bridge protocol Multichain may have been an internal rug pull.
The unauthorized withdrawals, which occurred on July 6, 2023, have led to a loss of over $125 million.
According to Chainalysis, the exploit could have been carried out by insiders who had compromised administrator keys.
READ MORE: Hacker Exploits Code Vulnerability, Drains $455,000 from Arcadia Finance
This possibility has also been previously suggested by blockchain security firm SlowMist. In response to queries from Cointelegraph, Chainalysis confirmed that they consider the incident a potential rug pull.
Multichain employs a multiparty computation (MPC) system in its smart contracts, similar to a multisignature wallet.
Chainalysis explained that it is possible the attacker gained control of Multichain’s MPC keys to execute the exploit.
While it is conceivable that external hackers obtained these keys, some security experts and analysts believe the exploit could be an inside job due to recent issues experienced by Multichain.
One prominent internal issue highlighted by Chainalysis was the disappearance of Multichain’s CEO, known as “Zhaojun,” in late May.
Additionally, the platform encountered delayed transactions and other technical problems that led Binance to withdraw support for several bridged tokens on July 7.
Attempts to reach out to Multichain for comment on these claims have been unsuccessful at the time of publication.
In the midst of these developments, blockchain investigators have noticed further suspicious movements of Multichain tokens in the past few hours.
These abnormal outflows included the draining of token addresses across multiple chains by the Multichain executor address.
Furthermore, stablecoin issuers Circle and Tether took action on July 8 by freezing over $65 million in assets associated with the Multichain exploit.
Chainalysis found it intriguing that the exploiter did not convert these assets into centrally controlled ones like USDC, which can be frozen by the issuing company.
As the investigation into the Multichain exploit continues, it is becoming increasingly likely that the incident was an inside job or rug pull.
The repercussions of this exploit have resulted in substantial financial losses and raised concerns about the security and integrity of the protocol.
Georgetown, Cayman Islands, July 12th, 2023, Chainwire
Kava, a Layer-1 blockchain that combines the developer power of Ethereum with the speed and interoperability of Cosmos has launched the Kava 14 upgrade. This upgrade deploys ‘internal bridge’ technology to seamlessly convert native Cosmos assets to and from Ethereumโs ERC20 token standard.
Kava 14 is one of a cluster of milestones in the making. In early July, Tether announced its decision to make Kava the gateway for issuing native USDt on Cosmos. With the launch of Kava 14, USDt can now be minted and easily converted on Cosmos, to โ and from โ USDt on every other L1 with native USDt including the: Bitcoin (Omni & Liquid protocol), Ethereum, TRON networks, and more.
โWithin the first few days of Kava launching the official Tether integration, more USDt has been issued on Cosmos than on Polkadot and Near combined,โ said Scott Stuart, Kava Co-Founder. โItโs clear that people want USDt on the interchain. Iโm optimistic that having a native stablecoin and a safe, reliable way to convert it across chains via the Kava 14 upgrade will finally unlock the incredible tech the Cosmos ecosystem has built.โ
Kava Gains Momentum
Following Tether’s July announcement, Kucoin now supports Kava’s Cosmos and EVM networks, providing a reliable CEX for user transactions within the Cosmos ecosystem. Meanwhile, Curve Finance’s launch of a USDt liquidity pool offers a decentralized alternative for experienced users. In parallel, Stargate, a top omnichain liquidity layer, is set to launch on Kava, anticipating increased usage and liquidity. This expansion comes after a governance proposal that plans to widen the scope of the Kava Rise incentive fund.
The Kava 14 upgrade is a leap forward for Cosmos DeFi builders and users providing a safer, more secure, and more reliable method for converting assets to and from the Cosmos ecosystem.
Follow @KAVA_CHAIN on Twitter for more information and updates on Kava 14’s mainnet launch.
About Kava
Kava is a secure, lightning-fast Layer-1 blockchain that combines the developer power of Ethereum with the speed and interoperability of Cosmos in a single, scalable network. Committed to fostering innovation and growth, Kava is a trusted choice for developers and users worldwide.
For more updates, follow Kava on Twitter.
Disclaimer
This press release is not an offer to sell or the solicitation of an offer to buy USDt or KAVA tokens.
Contact
Media Manager
Guillermo Carandini
Kava
[email protected]
London, England, July 12th, 2023, Chainwire
cheqd, a startup that allows users and organizations to gain control and portability of their data, introduces Credential Service, empowering organizations with an easy-to-use, plug-and-play solution for issuing and managing digital credentials.
cheqdโs Credential Service is a ready-made, software-as-a-service offering or “Credential-as-a-Service” that can easily be integrated into any organization. With its Credential Service, cheqd provides a simple solution for organizations to issue and verify decentralized credentials with ease. It removes all of the complexity and technical knowledge required to build or integrate Decentralized Identity within existing applications, allowing organizations to issue and verify trusted credentials in a few simple steps. Application developers can effortlessly issue and manage credentials by using simple API services. It supports features such as Credential Payment, Verifiable Credentials and Presentations, Decentralized Identifiers and Identity Keys, and Revocation Registries. This provides cheqd partners with the option to use a simple set of API services rather than needing to integrate more complex and nuanced Software Development Kits (SDKs).
As part of cheqdโs ultimate vision, Credential Service will be a route for anyone to access upcoming payments functionality โ cheqd first-of-its-kind feature enabling on-chain payments for off-chain trusted data. Payment functionality offers opportunities for anyone to create entirely new business models โ Trusted Data Markets.
With Credential Service organizations can access cheqdโs Decentralized Identity (DID) framework in the simplest and most efficient way, with no technical skills required. DIDs are a foundational technology for enabling self-sovereign identity (SSI) that gives users control over the information they use to prove who they are to websites, applications and services on the Web. Users can store all of their data in digital wallets that protect their privacy and keep their personal data more secure while limiting risk and simplifying the process of verification.
The Credential Service is built atop cheqdโs blockchain technology, a robust, public and permissionless network thatโs fully compliant with Europeโs GDPR. As itโs based on self-sovereign identity technology, it is closely designed with the upcoming EU eIDAS regulation in mind that governs electronic identification and trust services for electronic transactions. As with all cheqd products, no personally identifiable information is stored on its network. Instead, the userโs personal data resides off-ledger, where it remains private and secure. The information is signed and verified by trusted identifiers on-chain, and any credential can be checked and verified in seconds.
cheqdโs Credential Service is sector-agnostic and applicable for a wide range of use cases, including Know Your Customer (KYC) checks, verification of educational qualifications and online reputations. It also supports payments for digital credentials with full regulatory compliance.
โWe are removing the barriers for those wanting to leverage the decentralized or self-sovereign identity and digital credentials through introducing the Credential Service,โ said cheqdโs Co-founder and Chief Executive Officer, Fraser Edwards. โIt is especially relevant for those who have never interacted with decentralized identity and want to access payment rails without needing to use anything technically complex. Its built-in payment infrastructure, combined with a simple set of APIs, will allow developers to fully leverage credential payments in the easiest possible way.โ
For further questions or interview requests, please contact Avishay Litani at [email protected].
About cheqd
cheqd (cheqd.io) is a privacy-preserving payment and credential network that allows users and organisations to gain control and portability of their data. cheqd builds upon Decentralised Identity, Self-Sovereign Identity (SSI), and Digital or Verifiable Credentials (VCs) with payment infrastructure to create Trusted Data markets as an entirely new industry category. Put simply, you can now issue credentials and get paid to do so.
With its technology, cheqd is creating a new paradigm around Trusted Data economies such as lending markets in Web3, preference data markets, and others where the user is at the centre. It empowers consumers and businesses with full ownership, portability, and control over their data and identities. In addition, this data can be transacted within a cutting-edge payment network that prioritises individual privacy and market-first principles. The scale of distribution is unmatched as cheqd engages with organisations across Lending, Supply Chain, eCommerce, Education, Manufacturing, Gaming and other sectors.
cheqd.io
Contact
Avishay Litani
MarketAcross
[email protected]
Tortola, British Virgin Islands, July 12th, 2023, Chainwire
In its ongoing journey to reshape the crypto investing landscape, Struct Finance, a DeFi platform that enables investors to engage with tailored interest rate products linked to digital assets, is thrilled to announce the launch of the BTC.B-USDC Vaults.
The tranche-based BTC.B-USDC Interest Rate Product was made possible by effectively leveraging Avalancheโs BTC.B (Bridged Bitcoin) for DeFi applications. The new vault beautifully complements Struct Financeโs Genesis USDC Vaults, heralding an exciting era in DeFi yield opportunities. Struct Finance built the new vault on top of GMX’s Liquidity Provider Token (GLP) to generate predictable yields for BTC in the form of fixed returns, and USDC in the form of variable returns, while still leveraging a secure asset and minimizing volatility and exposure to other risks.
โOur BTC.B-USDC Vaults represent an innovative application of Bitcoin in DeFi. We’re taking full advantage of Avalanche’s Bridged Bitcoin (BTC.B) to bring about a fresh wave of opportunities in the digital asset space,โ said Ersin Dalkali, the Co-founder of Struct Finance.
While Bitcoin continues to dominate the market, its inherent lack of a DeFi layer has traditionally made native yield generation quite challenging. Avalanche has unlocked new possibilities for Bitcoin in DeFi with BTC.B (Bridged Bitcoin). Unlike WBTC that relied on centralized bridges, BTC.B is minted via Avalanche Core โ a decentralized bridge โ and can be trustlessly bridged across networks using the Layer Zero bridge.
At present, Bitcoin investments in prominent lending pools yield between 0.2โ0.5%. Even the stable swap pools offering wBTC-BTC.B products only manage to deliver returns of about 2%. Structโs BTC.B-USDC product shatters these limitations, offering significantly higher yields.
The purpose of BTC.B is to empower BTC holders to explore DeFi opportunities on the Avalanche blockchain, without the need to acquire secondary tokens or rely on centralized bridges. BTC.B represents BTC coins transferred to the Avalanche blockchain in the form of ERC-20 tokens. With over 6000 BTC bridged and a fully diluted value of $180 million, BTC.B is carving a niche for itself in the crypto arena.
The Bitcoin ETF applications by BlackRock, WisdomTree, and Invesco โ three of the worldโs leading asset managers โ are not just a mere submission. It is a signal that the traditional financial realm is ready to embrace Bitcoin on a new level. Recently, the US Securities and Exchange Commission (SEC) gave the green light to a 2X leveraged Bitcoin ETF, sparking an enthusiastic wave of speculation and anticipation for approval of a spot Bitcoin ETF.
Delta hedging
Amid the highly volatile crypto industry, Struct Financeโs Interest Rate Products allow anyone to split and repackage the risk of any yield-bearing DeFi assets in different parts to fit their risk profile through an innovative process called โtranching.โ Every Interest Rate Product is a single vault split into two portions, or tranches that have different return configurations:
- A Fixed-return Tranche for conservative investors looking for consistent returns
- A Variable-return Tranche for investors with a higher risk appetite seeking superior returns
The yield from the underlying asset flows into the fixed tranche first to ensure predictable returns. The remainder is then allocated to the variable tranche, which gets enhanced exposure to the underlying yield-bearing asset. Compared to the fixed tranche, the variable tranche might accrue more yield, less yield, or no yield.
As part of its BTC.B-USDC Vaults, Struct Finance has implemented a unique approach to managing investment risk: delta hedging. While the fixed tranche takes center stage with its high yield, the variable side of the product offers an additional layer of intriguing complexity and potential.
Upon deployment of funds into the vault, the BTC.B in the fixed tranche gets converted into GMXโs GLP token, setting up a position thatโs short Bitcoin against GLP and contributing a negative delta. In contrast, the USDC on the variable side is converted into GLP, which inherently carries a positive delta.
This innovative delta-hedged product design achieves a fine balance between the positive and negative delta forces. It results in a robust strategy that allows investors to confidently navigate the crypto marketโs inherent volatility.
This artful interplay of the fixed and variable sides within the vaults opens the doors for investors to tap into the potential of Bitcoin investments like never before. By catering to a diverse range of risk appetites, Struct Finance ensures that both retail and institutional investors can tailor their strategies to maximize their returns, regardless of market conditions.
About Struct Finance
Struct Finance is at the forefront of the DeFi revolution, with a vision to transform the design and utility of financial products. It empowers users to design their own financial instruments, harnessing the power of tokenized, yield-bearing positions to unlock a world of diverse investment opportunities. Moreover, its cutting-edge financial products adopt a tranche-based system, smartly distributing yield between different investor classes. This balanced approach guarantees a steady yield for risk-averse investors while also offering the prospect of heightened returns to the more adventurous. Initially available on Avalanche, Struct Finance plans to go multichain in the near future.
For more information, visit: Website | Twitter | Discord | Telegram
Disclaimer: This release is for informational purposes only and should not be construed as financial promotion.
Contact
Miguel Depaz
[email protected]