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Ethereum on a high after European Investment Bank’s $121M digital bond news

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Cointelegraph By Martin Young

Ethereum prices skyrocketed to a new all-time high on Wednesday on the back of positive news from the European Investment Bank.

Ethereum has climbed to $2,709 during early Asian trading on Wednesday, April 28, marking a new peak price for the asset according to Coingecko.

The crypto metrics provider reports a gain of 7% over the past 24 hours, and 15.7% over the past seven days for the world’s second-largest digital asset by market capitalization. The move has pushed the ETH market cap to a record $312 billion.

While there are a range of factors propelling the Ether price, Reuters today attributed it to the news the European Investment Bank is launching a “digital bond” sale using the Ethereum network.

The EIB is issuing a two-year 100 million Euro ($US120.8 million) digital bond, with the sale to be led by Goldman Sachs, Banco Santander, and Societe Generale, according to analysts at Bloomberg.

On April 23, Societe Generale announced that its subsidiary Societe Generale SFH had issued a 100 million Euro bond as a security token on the public Ethereum blockchain. It was awarded the top triple-A rating by Moody’s and Fitch.

Head of revenue at crypto broker SFOX, Danny Kim, told Reuters that the news has demonstrated a bullish institutional use case for Ethereum, adding that exchange balances are also decreasing adding to the bull case:

“The amount of Ethereum sitting on exchanges continues to drop lower and has been the lowest in the past year. With less supply on exchange available, there’s less likely a chance of a major sell-off.”

As reported by Cointelegraph, a revival in DeFi related protocols and tokens, coupled with a fall in gas prices could also be driving momentum. At the time of writing the average transaction price on the network had fallen to $10.73 according to Bitinfocharts.

Popular crypto analyst ‘Altcoin Sherpa’, meanwhile, predicted that ETH would continue to outperform BTC in the coming weeks, targeting a price of $3,000.





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Ethereum

Gelato Network launches ‘G-UNI’ Uniswap v3 management token

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Cointelegraph By Andrew Thurman

While Uniswap’s highly-touted v3 has been racing to the top of TVL charts as of late, the need for active management has kept some retail participants out of their pools — a problem that a new product from the Gelato Network is aiming to fix. 

First teased in a community call last week, the Gelato Network has released today the details of their “G-UNI” Uniswap v3 management system. G-UNI aims to perpetually maintain a liquidity range of 5-10% within the current price of an asset pair, with an oracle network checking prices and rebalancing liquidity pool position ranges every half hour. G-UNI also automatically re-invests trading fees for compounding returns.

“Passive G-UNIs work by just providing very broad liquidity, similar to Uniswap v2 that never has to be changed,” an announcement blog post reads. “It thus can be completely free of anyone’s control as it does not require changes in its price range.”

While Uniswap v3 allows liquidity providers to earn more fees by concentrating their funds at specific prices, it opens them up to risk of impermanent loss if the prices of the trading pair moves beyond the provider’s specified range.

The blog post notes that G-UNI’s auto rebalancing brings the benefits of concentrated liquidity, but with the option of passively managing the position in a manner more in line with Uniswap v2. 

“The advantage of this includes that users can sit back and relax as all the difficulties that come with monitoring LP positions are taken care of.”

Composability and incentives

While the new tool will be a boon to passive liquidity providers, the real benefits of G-UNI might be for other DeFi protocols. 

A self-described “Legendary Member” of Gelato, Hilmar, noted that projects can now incentivize concentrated liquidity in “pool 2” liquidity pools. Pool 2 is a colloquialism for a native governance asset paired with a popular base asset, such as ETH or MATIC.

Projects often have to provide ample liquidity mining incentives for participants in pool 2s, as liquidity providers take on the risk of the native governance token collapsing in price. Concentrated liquidity rewards may help stabilize native asset prices to a more regular range. 

Additionally, G-UNI is a ERC-20 token as opposed to a NFT, which opens it up to a broader number of possible applications in DeFi. Many lending platforms accept liquidity pool tokens as collateral, but aren’t yet widely prepared for positions represented as NFTs; G-UNI will allow them to onboard v3 liquidity positions faster. Likewise, yield vaults like Yearn.Finance, which has been planning to incorporate exchange positions for some time, may find it easier to integrate ERC-20s.

G-UNI will be used out of the gate as part of the launch of Instadapp’s governance token. The team is setting aside 1,000,000 INST tokens for INST/ETH liquidity mining, with 3/4ths of the rewards focused on a higher INST price liquidity range.

Per the Instadapp dashboard, the incentivized pools are currently live and offering 2,200% and 1,800% APY respectively.