eToro Launches Universal Basic Income Platform, GoodDollar, Letting Users Earn G$ Stablecoin
  • Social asset trading platform, eToro releases a not-for-profit crypto-backed stablecoin, GoodDollar, that allows registered users to receive free basic income straight to their wallet.
  • The token will leverage decentralized finance and the raging “yield farming” techniques to produce the $G stablecoin and hand it out as universal basic income (UBI) in a bid to promote financial inclusion.

eToro announced the project would entail users staking their assets into a pool and yield farm on popular DeFi projects such as Compound and Aave. The protocol creates an ongoing money flow of basic income that is given away to users.

The payout will be made in the $G stablecoin and distributed as free income to account holders. At launch, the $G stablecoin is backed by Maker-minted DAI with a plan to add a basket of crypto collateral to back the stablecoin.

Explaining the reasons for the launch of the Universal Basic income project, the CEO and Founder of eToro & GoodDollar, Yoni Assia, stated his goals were to solve the widening economic disparity and lack of transparency in the current financial system using the $G stablecoin.

“There are two reasons for that: one is the level of inequality that is driven by how the system works, where the rich get richer, and the poor get poorer. The second is the lack of transparency around how money is issued, used, and being moved. By definition, interest-bearing money rewards those who have the most amount of money.”

While the project will more or less work in the same manner, the goal is to ensure every interest-bearing asset on the platform is deployed with “fair inclusion and equality.” This means that everybody participating in staking and farm yielding will receive an equitable share regardless of the money put in.

Here is how it works. Once the yield farming is complete, the interest accrued is shared into two, whereby the first handed to supporters and the remaining staked back to produce $G stablecoins. Focusing on yield farming is set to give $G stablecoins real monetary value and fortify its liquidity across the DeFi space, Anne Stone, head of Go-to-Market, explained.

“G$ is a reserve-based token, which means that it has real monetary value and liquidity from day one. Yield-farming, interest from staking, fees from liquidity mining, and other new yet to be created de-fi innovations are all different ways to create and source value to fortify the GoodDollar reserve sustainably.”

According to a spokesperson from the GoodDollar project, several countries, including South Africa and Nigeria, have started creating wallets to receive the UBI proceeds. Additionally, over 100,000 $G tokens have been distributed to over 250 users across the world since the launch of the test project in August.

The post eToro Launches Universal Basic Income Platform, GoodDollar, Letting Users Earn G$ Stablecoin first appeared on BitcoinExchangeGuide.

Abra Rolls Out Interest-Earning Accounts; Up to 9% on Cryptocurrency and Stablecoin Deposits

Abra users will now be allowed to generate extra income on the crypto investment application. Their customers are set to earn interest for their deposits on their Abra interest accounts as announced on their website.

In a short YouTube video, they have illustrated how by holding their deposits in the Abra interest accounts, they will earn income interests. The up to 9% interest rates yearly compounded at the end of every business day.

They are currently extending support for some popular crypto and stablecoins in the markets currently. The array of crypto assets to be deposited for interest generation are such as: Bitcoin (BTC), Ether(ETH) inclusive of some stablecoins like USDT, PAX, USDC and TUSD.

The BTC and ETH generating 4.1% and 4% respectively with the stablecoins accruing 9% interest rates according to Lomesh Dutta, the VP in charge of Abra’s growth. He however added that pending on the demand from their institutional borrowers the interest rates will be subject to evaluation. He remarked that their interest rates have surpassed what banks can currently offer in interest rates.

They have consolidated their place in crypto sphere receiving overwhelming response from the Philippine, US and UK markets garnering over a million users. They have collaborated with Prime Trust for custodial services in the project. This will obligate all the users that are to benefit from the initiative to confirm their identities with the Prime Trust as per the KYC policies.

Notably, Abra are onset to create a decentralized global banking solution on Stellar’s Blockchain. This move could have been inspired by Stellar’s Development Fund (SDF) $5 Million cash injection to the crypto wallet provider.

Abra’s recent tussle with the SEC and CTFC saw the digital asset firm fork over $300k in fines after the futures commission filed charges against Abra and their Philippine affiliate Plutus. According to the financial watchdogs, Abra failed to verify the eligibility of the clients to whom they offered their unregistered security swaps.

UPDATE: MakerDAO “Hacker” Liquidated $8M in Ethereum, Can the Debt Auction Salvage MKR?

Maker Dao

Maker DAO lost over 5.67 million DAI in liquidations on March 11 and 12 as the Ethereum markets gas prices rose to record highs. As the gas prices rose, there arose an opportunity for users of the platform to bit liquidated ETH for as little as zero DAI, causing a run on the account. New information shows that over a third of the liquidated amount was bought for a partly zero DAI tokens (for free) – a total of $8.3 million dollars.

Now Maker DAO, the autonomous governance council of Maker, wants to offer a new debt auction on Thursday, March 19, 2020 in a bid to recover the lost amount. With MKR suffering – in line with the rest of the market – can the debt auction restore the past glory of DeFi’s largest platform?

“Lucky users” liquidate over $8 million in ETH

While this story broke as it happened on Mar. 11 &12, the amount of Ethereum (ETH) liquidated for zero DAI has just been revealed by White Rabbit, a crypto research company. According to the research, the largest MKR vault lost 35,000 ETH at time of failure with the luckiest account making away with 30,000 ETH.

The rapid change in price when the gas prices had skyrocketed caused a lag between the actual price and the oracle price feeding the Maker platform. This caused spikes in the number of liquidations on the platform enabling users who noticed early to take advantage of the situation and make zero DAI auctions.

On the chart above, the number of liquidations spiked in two distinctive periods – around 3 PM UTC on Mar. 12 and midnight the next day. While the oracle price dipped around an hour prior, the intensive bidding process for zero DAI auctions caused the lag and in a way save more liquidations from happening.

The 100% discount bids (zero DAI bids) amounted to $8.32 million dollars, representing 36% of the total liquidations with 20% discount bids accounting for the second highest amount of ETH sold.

Maker DAO community has since announced they will be a planned Debt Auction of MKR in a bid to replace the liquidated amount this Thursday, on Mar. 19.

Will the Debt Auction save the Maker system?

Following the liquidation, Maker (MKR) price plummeted below the $200 mark, setting an intraday low of $188 USD on Mar. 13 from highs of $489 USD on Mar. 12. This highlights a loss of confidence in the Maker system with majority of the holder having to sell. However, the Maker DAO participants are looking at a safe option to recover the amount – through a Debt Auction.

The Debt Auction will involve minting of MKR tokens, whereby each token will start at a price of 200DAI with the minimum lot size set at 250 MKR (~$50,000 USD). Furthermore, the Maker system integrated the Circle’s USDC to boost liquidity on the platform and prevent future cases as what was witnessed last week.

With the two systems in place, Maker looks set to be back on a bullish vibe in the coming days.

Images from Medium (WhiteRabbit)

4 Major Financial Institutions Invest In Series-A for Ethereum-based Platform FundsDLT
  • Financial Institutions in Europe have teamed up in a series A funding of FundsDLT.
  • The FundsDLT supported on Ethereum would help streamline the whole investment sector making it cheaper and more efficient to both clients and Asset managers.

Some major titans in the European financial industry have teamed up to unleash a FundsDLT. This is a Blockchain platform tailored for the investment space. The dream team comprising of the Luxembourg Stock Exchange, Credit Suisse Asset Management, Natixis Investment Managers, and Clearstream announced a joint series A funding for the FundsDLT.

The project was an initiative of Luxembourg Stock Exchange and their affiliate Fundsquare were eventually joined by the other firms.

Based permissioned Blockchain Tech on Ethereum

Notably FundsDLT’s underlying technology is the Permissioned Blockchain Technology that is supported by Ethereum. This will afford it better performance while still prioritizing privacy. FundsDLT will essentially facilitate all the changes of the fund distributions of value chain thoroughly and consequently covering the whole funds lifecycle.

The actors in the industry inclusive of asset managers, distributors, asset servicer’s will then be able to chip off processes that they deem as surplus to the system and in that way reduce costs and ensure efficiency in the system. If transparency in the system is addressed it could go a long way in appeasing investors who are key players in the investment sector as highlighted in the announcement.

The top brass of the respective firms all seem to share the sentiment that this was indeed a milestone in digitalization of the investment realm. Luxembourg Stock Exchange and CEO Robert Scharfe, was particularly excited on the prospect of their brainchild being at the epicenter of the whole ecosystem.

“The Luxembourg Stock Exchange has played a catalyzing role in this development, and it is exciting to see the expanding ecosystem around FundsDLT.”

Credit Suisse lead on Asset Management Switzerland and EMEA Michel Degen was confident that FundsDLT would streamline the whole process making it cheaper and more efficient which is a win -win for both customers and managers of assets.

Whereas Joseph Pinto, Chief Global Operating Officer of Natixis Investment Managers is convinced that Blockchain technology will be instrumental in digitalization of the whole financial sector.