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Reinventing Stablecoins?

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Ruling the headlines on the BSC network is now a norm for the Mars Ecosystem. Armed with some of the highest APRs in the DeFi space and an ever-growing TVL, the team recently earned a Monthly Star in the Binance Smart Chain “Most Valuable Builders” program and is working towards reinventing the utility of Stablecoins. With BSC supporting Mars’ products and technology, it adds a layer of credibility to the constantly evolving Mars ecosystem. In this write-up, we will deep dive into stablecoins and what Mars Ecosystem means to the future of DeFi and crypto.

Stablecoins were first introduced as a blend of stability of fiat currency and mobility of cryptocurrencies. Generally, they are backed by underlying assets or algorithms. Stablecoins ensure that money is borderless and accessible to everyone without the need for a bank or a central authority.

Simply put, if Bitcoin is decentralized gold, then stablecoins are decentralized currencies.

However, with time and usage, specific attributes of stablecoins have turned them into the antithesis of decentralization. Also, they have ignited the fire for the genesis of the Mars Ecosystem and its vision to reinvent stablecoin with decentralization and scalability intact.

Current Landscape of Stablecoins

The market cap of all stablecoins is worth nearly $128 billion with Tether (USDT) accounting for more than half of the value. Despite not having one decentralized stablecoin that fulfills the basic requisites, the stablecoin market enjoys a huge upside, courtesy of DeFi. Every decentralized stablecoin protocol needs 1. Price stability, 2. Overall decentralization, and 3. Scalability.

Today, most of the stablecoins are overcollateralized which directly affects their scalability. Also, many stablecoins are pegged to assets deposited in centralized systems which effectively goes against the ethos of blockchain technology and DeFi. Though Algorithm-based stablecoins do away with the collateral issues, their price stability is a huge concern.

Major Concerns of Stablecoins

Currently, every stablecoin protocol has its share of tradeoffs with regards to the three properties. However, all the issues boil down to two key concerns. They are 1. The positive externality problem, 2. The integration problem.

The positive externality problem reflects the imbalance in efforts to reward ratio for the stablecoin protocols. The cost of producing and maintaining stablecoins is borne by the protocol and its users. However, stablecoin’s value is generated in DeFi applications. The financial incentive for the stablecoin protocol is minimal which often ends up with a shortage of supply.

The integration problem is quite similar to the previous concern of how stablecoins’ value is solely decided by DeFi apps. Stablecoins are impacted by their ease of integration with various DeFi protocols. If a stablecoin cannot be integrated with a certain DeFi protocol easily, the stablecoins’ stability is affected.

To resolve these, Mars Ecosystem stands apart as a decentralized stablecoin paradigm with an all-inclusive system to capture the true utility of stablecoins.

Mars Ecosystem 101

As a potential solution to the positive externality and integration concerns Mars Ecosystem presents a three-part system. Their efforts are concentrated on producing a stablecoin ecosystem with high price stability, high decentralization, and scalability potential.

These efforts have been recognized by the Most Valuable Builder (MVB), an initiative by Binance Smart Chain to support innovative projects. The Mars Ecosystem was one of the winners of the MVBIII – September Monthly Stars. Also, the Mars Ecosystem will receive key support from BSC, not limited to financial influx. The mentoring and technical assistance provided can be a gamechanger for the Mars Ecosystem.

The three cores of the Mars Ecosystem are;

Mars Treasury

This is the foundation on which the Mars Ecosystem resides and grows. Its building blocks are $USDM or USD-Mars (Mars Ecosystem stablecoin) and $XMS or Mars Ecosystem Token (Mars Ecosystem governance token). Their treasury is built to support multiple types of cryptos from the likes of BTC to DeFi blue chips.

The team is equipped with minting and redemption mechanisms for the circulation of $USDM. With a set 1:1 ratio, users can deposit their assets into the Mars Treasury to mint $USDM and vice-versa. The circulation of $USDM fuels the value of $XMS which can be used to participate in the governance of the protocol.

Mars Stablecoin

$USDM stablecoin can be minted with $1 worth of any of the Mars Treasury white-listed assets. The maximum supply of the $USDM is relative to the market cap of $XMS. This cap in supply is part of their mintage control mechanism which accounts for users’ behavior to ensure the price of $USDM is always stable.

Also, an anti-bank run mechanism has been enabled to protect $USDM from mass shorting and a potential collapse. This is ensured by incentivizing the holding time of the token. Malicious actors trying to encash on the difference in the collateral ratio of $USDM and $XMS fail in their efforts as quick sales are burdened with slippage losses. This makes bank runs an unfeasible activity in the Mars Ecosystem.

Mars DeFi Protocols

This is a series of functionalities being added to the Mars Ecosystem to facilitate transactions, improve liquidity, and enhance $USDM’s utility as a medium of exchange and store of value. First in the series of DeFi protocols is Mars Swap which is an automated market maker-powered DEX similar to Uniswap.

This DEX is designed to provide 24/7 liquidity for $USDM and other DeFi protocols that adopt $USDM as a token of exchange. Also, the transaction fees generated on Mars Swap are pushed back into the Mars Treasury where liquidity providers and $XMS holders and stakers are awarded.

Since $USDM users earn without leaving the ecosystem, the positive externality issue is resolved. Also, the value generated here incentivizes the holding of $XMS which in turn stabilizes $USDM as the latter’s supply is based on the former’s market cap.

  • Staking and Liquidity Provision

September saw the launch of Mars Ecosystem liquidity farms and pools. Currently, the total locked value has crossed $250 million with the average APR being more than 1000% Already, eight pools have been created for users to stake their $XMS and earn BNB, ETH, CAKE, or more XMS as per their preference. Alongside, more than 10 yield farms have been set up for liquidity provision. 0.25% of the transaction fees on Mars Swap go directly to liquidity pools.

Also, the team is introducing many liquidity pools and farms in unison with other projects in the BSC network. Venus Protocol, Kalata Protocol, ForTube, Helmet Insure are some of the projects they have partnered with in creating liquidity pools and farms.

Apart from this, they have coupled sustainability with the growth of farms and pools using a linear vesting period. Simply put, the $XMS token allocated to investors (8%) and the team (10%) will be slowly released. This means, as per $XMS’s total supply, 180 million $XMS will be released for periods of 18 (investors) and 36 (team) months. The vesting period will start from our genesis launch which will be held in a month.

Future of Mars Ecosystem

Community-first is how the Mars Ecosystem team is approaching the future. Special emphasis will be placed on the direction that their community wants to take, in unison with their roadmap that includes launching more DeFi protocols and incubating nascent projects.

Everyone holding $XMS tokens can participate in MarsDAO and contribute to the evolution of the Mars Ecosystem. Also, they will be opening their NFT collection to the community to purchase alongside a few airdrops for lucky winners. The Boarding Pass NFT and the Captain NFT have been designed to reward those who have contributed to the initial MarsDAO community.

They believe that ‘To the Mars’ will be the new ‘to the moon’ in the crypto and DeFi community. But, in place of the volatility, we will see if the stablecoin $USDM will grow into being the reserve currency of the DeFi world.

 

Image by WikiImages from Pixabay



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Regulation

Popularity of Crypto Investments Makes Case for Regulations, Australian Securities Watchdog Says – Regulation Bitcoin News

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Popularity of Crypto Investments Makes Case for Regulations, Australian Securities Watchdog Says


High rates of crypto ownership, with purchases often made on advice from Youtube and Facebook, make “a strong case for regulation,” according to the Australian Securities and Investments Commission. The watchdog backs its stance with poll results showing nearly half of retail investors in Australia keep one coin or another.

Australian Securities Regulator Pushes for Rules to Protect Cryptocurrency Investors

Pressure on Australia’s new Labor government is mounting, to put an emphasis on consumer protection as it takes over a task from the preceding conservative government to adopt a regulatory policy regarding digital assets like cryptocurrencies. A years-long study on the matter, initiated by the former cabinet, is yet to answer the relevant questions of whether and how to do that.

According to a survey conducted by the Australian Securities and Investments Commission (ASIC) in November, 44% of over 1,000 retail investors admitted to holding cryptocurrency. The results indicated that crypto is the “second most popular investment after Australian shares,” Reuters noted in a report. A quarter of the polled investors who held digital coins said they were their only investment.

Statistical data suggesting high rates of cryptocurrency ownership in Australia were dismissed last year by a top central bank official who referred to the numbers as “implausible,” the news agency remarks. But ASIC believes they make “a strong case for regulation.”

Another argument for that, besides the high popularity of crypto, is the finding that 41% of respondents sought investment insight online, with a fifth of those polled naming the video sharing platform Youtube and at least one in ten pointing to the leading social media network, Facebook. Only 13% gained their info from a financial adviser or broker.

ASIC Chairman Joe Longo expressed the Commission’s concerns about the large number of participants in the survey who reported investing in what he described as “unregulated, volatile crypto-asset products.” The high-ranking official further elaborated:

There are limited protections for crypto-asset investments given they have become increasingly mainstream and are heavily advertised and promoted. There is a strong case for regulation of crypto-assets to better protect investors.

The survey was conducted in the same month when bitcoin (BTC) and ether (ETH), the two most popular cryptocurrencies, hit record highs, Reuters remarks. The prices of both coins have since dropped by about two-thirds, while the Australian stock market is down about 6%.

Part of the reason for that can be found in interest rate hikes that have likely convinced investors to exit speculative assets. Their retreat helped cause the latest crypto market slump and led to the bankruptcy of a number of businesses built around cryptocurrencies.

The popularity of crypto among Australian investors has attracted the attention of other government agencies as well. Earlier this year, the Taxation Office listed crypto-related profits among several priority areas where efforts are needed to ensure correct reporting. The authority reminded taxpayers they need to calculate any capital gains from the sale of coins and tokens and declare it with their tax returns.

Tags in this story
ASIC, Australia, australian, commission, Consumers, Crypto, crypto assets, Cryptocurrencies, Cryptocurrency, Facebook, Investments, Investors, Poll, Protection, Regulation, Regulations, regulator, rules, Securities, Social Media, Survey, watchdog, YouTube

Do you expect Australia to adopt restrictive regulations for cryptocurrency investment? Share your thoughts on the subject in the comments section below.

Lubomir Tassev

Lubomir Tassev is a journalist from tech-savvy Eastern Europe who likes Hitchens’s quote: “Being a writer is what I am, rather than what I do.” Besides crypto, blockchain and fintech, international politics and economics are two other sources of inspiration.




Image Credits: Shutterstock, Pixabay, Wiki Commons, Ms. Li

Disclaimer: This article is for informational purposes only. It is not a direct offer or solicitation of an offer to buy or sell, or a recommendation or endorsement of any products, services, or companies. Bitcoin.com does not provide investment, tax, legal, or accounting advice. Neither the company nor the author is responsible, directly or indirectly, for any damage or loss caused or alleged to be caused by or in connection with the use of or reliance on any content, goods or services mentioned in this article.





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Polygon Accommodate 37,000 DApp, Scoring 400% This Year

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Since the beginning of 2022, the number of decentralized apps (DApps) on the Ethereum scaling platform Polygon has surged 400%, hitting 37k. According to a blog post from partnered Web3 development platform Alchemy published by the Polygon team, the 37,000 figure signifies the total apps produced on both the testnet and mainnet.

At the end of July, there were 11.8k monthly active teams, a sign of blockchain developer involvement, a 47.5% increase from March. In addition, the project team offered an overview of dApp projects, noting that “74% of the teams are entirely integrated on Polygon.”

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The Reason Behind Its Surgence

Their collaboration with Alchemy was the driving force behind the expanding number of DApps. The Polygon team noted earlier this year that the increased amount of DApps being developed on the network was a major contributing reason.

~500 dApps in November, now 37,000+ with 11.8k active teams.

“Many projects are increasingly choosing to build solely on Polygon. Alchemy data shows that 74% of teams integrated exclusively on Polygon”

This is because the Web3 platform’s infrastructure makes it “far easier for Polygon developers” to construct DApps.

Cooperation by Polygon and Alchemy Support dApps

The cooperation launched by Polygon and Alchemy in June 2021 aided in increasing the number of dApps on the network from 3,000 in October to 7,000 in January to over 19,000 in April.

Polygon’s native asset, MATIC, has risen by 66.3% in the last month as cryptocurrency markets have turned green and recently exhibited signs of a possible positive revival. MATIC is presently the sixteenth most valuable cryptocurrency asset, having a market capitalization of $6.9 billion.

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Polygon (MATIC) Price and Tokenomics

The current price of Polygon is $0.9241, with a 24-hour trading volume of $498 million. Polygon’s value has risen by 2.50% in the last 24 hours. MATIC is now the world’s 13th most valuable company, with a market capitalization of $7.6 billion.

It can hold up to 10,000,000,000 MATIC coins, but currently only 8,035,303,935 MATIC coins are in circulation.

Polygon (MATIC) Technical Outlook

MATIC Price Chart
MATIC Daily Price Chart – Source: Tradingview

The MATIC/USD is currently trading at $0.9241 after consolidating in a narrow range of $0.8844 to $1.0001. Given the recent 400% increase in dApp registrations on the Polygon network, MATIC may experience a bullish trend.

A surge in MATIC demand could pierce the $1.0001 resistance level, exposing the MATIC price to the next target area of $1.1330. Further to the upside, MATIC’s next resistance level will be $1.2770.

The leading indicators MACD and RSI indicate divergence, with one indicating a buying trend and the other indicating a selling trend. However, the 50-day EMA is in support of a buying trend.

On the support side, MATIC at $0.8844 is likely to be supported by the upward trendline. On the other hand, a bearish breakout could push Polygon’s price down to $0.7635. Consider staying bullish above the $0.7635 level and vice versa. Good luck!

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Cosmos Hub Soars Over 5% Within 24 Hours

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Cosmos (ATOM) coin buyers have clasped on the $10 level as its support zone.

  • Cosmos (ATOM) coin soars by over 5% as seen in the past 24 hours.
  • ATOM still fluctuates wildly as observed in the upwards parallel channel.
  • Coin’s price has made impressive traction and surged by 13% in the past week.

According to CoinMarketCap, ATOM is having a sweeping uptrend at $12.09 or an impressive spike of 4.46% as of this writing. Currently, ATOM’s ATH is set at $44.45 which means the bulls have to work a bit harder than usual to push the price further up.

ATOM’s Trading Volume Spikes 102.0% In Past Week

The daily chart shows the volatility and price movement for Cosmos Hub (ATOM). Currently, ATOM’s trading volume has spiked by 102.0% as seen in the past week. The total circulating supply or volume of ATOM has however dropped by 0.27%. As of now, ATOM ranks as the 28th largest crypto in terms of the market cap which is currently at $3.47 billion.

It seems the bears moved away from ATOM as the bulls continue to drive the price higher. Cosmos Hub has had an impressive rally seen in the past couple of weeks due to aggressive buying pressure. ATOM coin is seen to be consistently moving upwards for the past few weeks. More so, the bulls were also re-energized after they revisited the coin’s support line.

In the event that the buyers breach ATOM’s resistance zone, the buyers are optimistic about a 60% ROI in the coming days. Buyers are definitely pushing the price up with $10 poised as the support zone and the $12.5 level as the bullish hurdle.

Cosmos: $20 On Target

Buyers are constantly eyeing the next resistance zone as a breach on this level may propel the asset’s price to an uptick peaking at $20.

ATOM’s market cap has spiked by 4.8% overnight or registered at $3.4 billion. The increase in trading volume also hints at the surge of buying momentum. ATOM’s RSI also shows that it was able to break the falling trendline and near the oversold mark. Moreover, the coin’s MACD also indicates a bullish movement for ATOM.

Buyers are looking forwards to the bulls breaching and hovering above the resistance zone of $12.5. Despite the hurdles that the bulls face, buyers are positive that a 60% spike is possible from the current level and may in fact pump the price to $20.

ATOM total market cap at $3.35 billion on the daily chart | Source: TradingView.com

Featured image from CoinCentral, Chart from TradingView.com



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