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Ethereum 2.0 Deposit Contract Tops $5.5B in Staked Ether

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What You Need to Know

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By creating the kinds of real-time support for liquidity and trading, crypto exchanges can enhance the experience for their investors.

It’s one of the greatest problems bedeviling some traders and investors who wade into cryptocurrency markets, and causing consternation from others on the other side of the desk as well: what do you do when your cryptocurrency exchange goes dark at just the wrong moment?

Unplanned downtime for cryptocurrency and defi asset exchanges is a major problem. It’s especially problematic when these outages happen during periods of high volatility, or when assets are quickly dropping in value. In many cases, that’s exactly when these stoppages occur, because of high volumes of trading and peak traffic that the system can’t handle in real-time.

Causes of Exchange Downtime

To be fair, downtime at an exchange can happen for many different reasons. Sometimes exchanges cite hardware problems or disk failures – sometimes, they attribute problems to a third-party vendor.

Binance, a leading cryptocurrency exchange, is an example of a place where a lot of trading happens – and where sometimes, for an instant, no trading happens!

Reports of outages at Binance have led to quite a bit of complaints from small investors who wonder why multimillion-dollar businesses don’t have practical tools in place to prevent this downtime. In one such case, Changpeng Zhao blamed a “message broker problem”, and in other cases, exchange leaders simply notified users that there was a brief outage, but deposits and withdrawals and other interactions were quickly restored. Another example of the frustration, albeit one outside of crypto, occurred over at Robinhood when the exchange couldn’t serve Gamestop transactions (going in one direction.) The outrage was palpable. In crypto, the downtime is a little more anticipated, but it’s still a problem.

Preventing Downtime

By creating the kinds of real-time support for liquidity and trading, exchanges can enhance the experience for their investors.

One of the fundamental parts of preventing system downtime on exchanges involves inspecting the infrastructure and putting additional supports in place. For example, institutional grade crypto exchange AAX, is known for its London Stock Exchange-powered tech stack, which holds an impressive track record within stock trading.

Another aspect of this is reporting: although the rank and file traders often get their reports through sites like down detector, an exchange that is proactive is more likely to offer advance reporting so that investors don’t need to resort to this kind of DIY investigation.

Analysts cite more detailed SLAs and higher standards of availability as barriers to exchange downtime, but the needs of a particular network vary according to the build.

At Atani, low latency and excellent API trading tools create a robust framework protecting the system against unplanned downtime. The API build eliminates any single point of failure, and secure key handling provides peace of mind regarding cybersecurity outcomes.

This type of proactive strategy is an effective bulwark against downtime, but it also protects Atani users against various kinds of hacking. The non-custodial nature of the brokerage transactions also works to the advantage of both parties. Take a look at this platform that aggregates liquidity from 20 exchanges and accommodates trading of many thousands of pairs with tax tools, low trading fees and much more.

Altcoin News, Cryptocurrency news, News

Having obtained a diploma in Intercultural Communication, Julia continued her studies taking a Master’s degree in Economics and Management. Becoming captured by innovative technologies, Julia turned passionate about exploring emerging techs believing in their ability to transform all spheres of our life.



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Altcoins To Watch: AAVE, LINK, ETH

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Historically, stimulus checks have been pumping the cryptocurrency market. Let us see if we see another round of bullish marathons this time. Today’s picks are AAVE, LINK and ETH.

There was a theory that whenever the US Stimulus bill was accepted, the cryptocurrency market will skyrocket and the signing of the Bill by President Biden will establish a new bullish cycle. Yesterday, March 6, the Senate approved the $1.9 trillion bill, on Tuesday the House Democrats are expected to pass the bill and President Biden is expected to sign the bill this coming week.

AAVE

As for the announcements and updates, Aave has partnered with a Lichtenstein-based crypto wallet and exchange Nash to integrate DeFi earning products by Aave and Aave token will be available to trade on Nash. As Nash currently supports Circle’s digital USD, it is assumed that the first tradeable pair will be AAVE/USDC, whereas adding other pairs such as AAVE/ETH is expected as well. The total value of AAVE locked in DeFi has significantly increased in the past 24 hour, adding 7.4% in USD, making $4.984B in total value locked.

Photo: TradingView

AAVE/USD shows strength by breaking out of the descending parallel channel. The best price action for the pair would be the test of the dynamic resistance (the upper edge of the channel) as support and continue upwards to test resistances at $495 and $594 above that.

LINK

Chainlink has partnered with yet another DeFi protocol Swingby. Swingby will use Chainlink to match prices in its inter-chain swaps. Chainlink is moving to FX now with expanding its oracle network to support price data of non-crypto currencies with the launch of EUR/USD. As the company declared on their blog, the FX EUR/USD pair is already used by derivatives protocol Synthetix. While exchanges pull data from FX liquidity providers to offer FX pairs on their trading terminal, Chainlink brings the most accurate FX data into DeFi and blockchain. The accuracy of the data is provided by the many oracles which aggregate the price and the network accepts the most accurate among all Oracles.

Photo: TradingView

LINK/USD stays above the dynamic support of the ascending channel and above the 50MA on a 4-Hour chart. The further advancement of the price was stopped by a strong resistance at $28.600, breaking of which will lead to a jump towards $31.4700 and $33.000. It is highly recommended to watch for the touching of the upper edge of the ascending channel by LINK/USD at any point, as there is a strong resistance.

ETH

Ethereum was one of the coins to highly cheer the Stimulus bill by adding 8.38% to its value yesterday. This week Ethereum hit another record with the total ETH locked in DeFi on March 5 reached $8.876B, helping ethereum price to jump after a decline of the price.

Ethereum price on Overbit

ETH/USD has made a significant advancement into turning it’s bearish sentiment to bullish by closing above the dynamic resistance of February 24. The same dynamic resistance also acts as a neckline of the inverted Head and Shoulders formation.

Ethereum price on Overbit

An hourly ETH/USD chart clearly demonstrates that Ethereum is on a bull phase. The pair has completed a breakout from the triangle, the move which supported the breakout is impulsive, the price retested the dynamic resistance as support. There is one obstacle to overleap at $1680 and Eth can advance upwards to test another strong resistance area laid at $1805 – $1825 area.

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Kseniia Klichova
Author: Aziz Kenjaev

Senior Vice President at Overbit. Technical analyst, crypto-enthusiast, ex-VP at TradingView, medium and long-term trader, trades and analyses FX, Crypto and Commodities markets.



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Key to Sustainable Decentralized Economies? This Project May Have Secret Sauce

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DAFI introduces a completely new alternative to hyperinflation.

Inflation is not a new concept and, in the world of traditional finance, continued pressure on the economy saw the US printed more money in one month than in two centuries last year. Inflation is also not new in the cryptocurrency and DeFi realms, with the mechanics propping-up today’s decentralized economies often relying on token inflation to reward token holders and early adopters.

Utilising tokens as a tool, the vast majority of DeFi protocols offer a range of incentives including staking and liquidity provision rewards to encourage participation and support. Outside of DeFi, inflation is again used largely to incentivize network participants to be a part of the decentralized mechanisms that keep platforms running and token economies functioning.

Too Much Air?

Although inflation is undoubtedly an effective strategy that works for some of the world’s strongest blockchain networks (Bitcoin being one of them), many of today’s DeFi and blockchain projects rely too heavily on this model for incentivization. Over-inflationary reward mechanisms inevitably lead to a gradual increase of the tokens circulating supply, increased prices and a reduction of purchasing power.

In worst-case scenarios, badly designed inflation models have the complete collapse of projects, with the token numbers rocketing but the token itself becoming all but worthless in a scenario that benefits neither the development of the project nor the token holders. The rapid growth of DeFi protocols has seen countless projects experimenting with hyperinflationary token models that end up imploding due to the combination of low demand and high inflation rates.

Recreation of Inflation

DAFI looks to change the way that the blockchain space utilizes inflation, by enabling web3 and DeFi protocols to reward participants and early adopters with synthetic versions of their tokens as rewards. With an elastic, intermediary synthetic unit that is synthesized, DAFI recreates inflation without creating excessive supply.

This exciting new alternative to hyperinflation has applications across both blockchains and DeFi platforms and, by giving protocols the power to distribute rewards to network participants and early adopters in a manner that does not entail excessive token supply, both the platform and the user can benefit from a healthier and more sustainable incentive model.

Win-win for Future DeFi Economies

With the DeFi space still in its infancy, periods of volatility in the market such as back in October 2020 saw many DeFi projects damaged when investors decide to lock in profits. By creating demand-pegged inflation, projects integrating with the DAFI protocol can stop relying on over-inflation and avoid unrecoverable damage to their token valuations during bearish market periods.

For those looking to genuinely support the growth of decentralized protocols and their ecosystems, DAFI is a welcome alternative to shaky and unsustainable incentive models currently on the market. With an MVP already available and having last year been recognized by banking firm NatWest in the company’s monthly newsletter, DAFI looks to ramp up activities this year with milestones including the launch of DAFI.Finance in Q2.

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Having obtained a diploma in Intercultural Communication, Julia continued her studies taking a Master’s degree in Economics and Management. Becoming captured by innovative technologies, Julia turned passionate about exploring emerging techs believing in their ability to transform all spheres of our life.



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