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Cool thinking under the DeFi fever KuCoin participates in the construction of DeFi in a deeper way



Since Compound launched "liquidity mining" in mid-June, DeFi coins have skyrocketed by 240% on average, borrowings have exceeded $1.6 billion, locked positions have exceeded $5 billion, and DEX trading volume has skyrocketed. According to The Block report, July 2020 The monthly DEX trading volume hit a record high of over 4 billion US dollars, and the growing trading volume provided support for the gradually rising currency prices.

In addition to platforms such as DEX and Uniswap, centralized exchanges also play a vital role in the circulation of DeFi in the secondary market. On August 13, KuCoin Exchange officially launched the DeFi project area, which includes the DeFi market page area, the DeFi trading market area and the DeFi news announcement area, and will involve Compound (COMP), PlutusDeFi (PLT), Ampleforth (AMPL), A total of 36 trading pairs of 18 DeFi projects including Orion Protocol (ORN) were migrated to the DeFi project area.

Following contracts, the DeFi market has become a new target for exchanges. However, in this DeFi frenzy, KuCoin has a calmer thinking and a deeper way of participating, and has played a big game early in the DeFi field.

DFG announced that it will contribute 500,000 DOTs to the Polkadot DeFi platform Acala project crowdlending: On November 5, DFG announced that it will contribute 500,000 DOTs to the Polkadot DeFi platform Acala project crowdlending. DFG said that since it first invested in Polkadot in 2019, it has been waiting for the opportunity to auction Polkadot slots. DFG believes that Acala is a highly determined long-term investment project with unique characteristics. Acala has actively participated in the Polkadot ecosystem from the very beginning, and has accumulated solid product development experience and shareholder support. Its unique and leading position in Polkadot will be consolidated with the continuous growth of products, technology and community. [2021/11/6 6:34:27]

Unique insight, deep mining of DeFi potential projects

As an early explorer and promoter of DeFi, KuCoin Exchange has already started to build its own DeFi ecosystem before this round of upsurge swept the market. The discerning KuCoin launched DeFi projects such as AMPL, AKRO, and LUNA last year. The highest increase of AMPL is more than 800%, the highest increase of AKRO is more than 600%, and the highest increase of LUNA is more than 200%. ORN, which was launched by KuCoin at the end of July, achieved a 700% increase in just half a month. In addition, several DeFi products listed on KuCoin have also successively landed on the three major exchanges. For example, COTI and WAVES have been listed on Binance after being listed on KuCoin, DIA has been listed on OKex after being listed on KuCoin, and LUNA has been launched on KuCoin one after another Huobi and Binance. It has to be said that KuCoin is very experienced and insightful in project selection, so KuCoin is also known as a treasure exchange for discovering blockchain "gem" projects.

Chainalysis: European institutional investors are embracing Ethereum DeFi: Jinse Finance reported that according to Chainalysis data, Central Europe, Northern Europe, and Western Europe have become the world's largest crypto-economy in the past year, and DeFi institutional adoption has played an important role in this regard effect. The data shows that over the past 12 months, the majority of large institutional-scale transfers have flowed to DeFi platforms. Most large institutional transfers are made in ETH and WETH. [2021/9/30 17:16:45]

Currently, 8 of the top 10 DeFi projects by market capitalization have been launched on KuCoin, including decentralized lending Maker, decentralized exchange Kyber, synthetic asset trading platform Synthetix, and the recently popular oracle project LINK. KuCoin is very supportive of the development of such high-value and high-potential projects. While providing them with liquidity and a platform, it also hopes to allow more users to understand and even participate in the development of these projects.

In the KuCoin DeFi project area, users can directly find projects in the DeFi field, and view the price trend of the token since its listing on KuCoin Exchange in the trading market area. At the same time, the DeFi project area includes projects covering multiple directions such as oracle machines, pledged loans, and decentralized exchanges to meet the diversified investment needs of users.

Liquality, an atomic swap wallet, has reached a partnership with Sovryn, a Bitcoin DeFi application: On March 11, Liquality, a multi-chain wallet with built-in atomic swaps, announced a partnership with Sovryn, a Bitcoin DeFi application built on the RSK sidechain. As Sovryn’s wallet of choice, Liquality Wallet offers users a way to atomically swap BTC for RBTC within 10 minutes, and leverage Sovryn for RBTC lending, borrowing, and margin trading. [2021/3/11 18:35:30]

In order to better support the development of DeFi projects and discover more high-quality DeFi projects, KuCoin launched the KuCoin Chioce voting DeFi session in July. The liquidity aggregation protocol Orion (ORN) was officially launched on KuCoin through this channel , and KuCoin uses the Pool-X platform as the core node of Orion to provide ORN pledge mining services and promote the chain governance and node construction of DeFi projects.

In the face of mania, the market needs to remain rational

The total lock-up value (TVL) of TRON DeFi has reached 6.4 billion US dollars: On March 9, according to the latest data, the total lock-up value (TVL) of TRON DeFi has reached 6.4 billion US dollars. It is reported that TRON has officially upgraded the algorithm of total value locked (TVL): the total frozen amount of TRX is equal to the sum of energy and bandwidth, including the energy and bandwidth obtained by voting for super representatives to freeze TRX.

The TRON protocol is one of the blockchain-based decentralized application operating system protocols, providing high-throughput, high-scalability, and high-reliability underlying public chain support for decentralized application operations on the protocol. TRON also provides better compatibility for Ethereum smart contracts through an innovative pluggable smart contract platform. [2021/3/9 18:27:46]

DeFi is a major innovation in the field of blockchain finance, but many projects are only under the banner of DeFi, do not have real value potential, or have major security risks. On the afternoon of August 13, Belmore, the core developer of the YAM project that has attracted much attention from the DeFi community, announced that he failed to save the project. In just 36 hours, this DeFi project with a locked value of 600 million US dollars has completed its entire life cycle. The failure of YAM caused huge losses, but it did not affect people's growing attention and interest in DeFi, and DeFi is still the most promising field in 2020.

Data: The total lock-up volume of DeFi on Ethereum is 31.63 billion US dollars: According to OKLink data, as of 16:00 today, the total lock-up volume of DeFi agreements on Ethereum is about 31.63 billion US dollars, an increase of 3.9% month-on-month.

The current top three protocols with locked positions are WBTC with USD 4.22 billion (+0.69%), Maker with USD 4.07 billion (+6.18%), and Uniswap V2 with USD 3.13 billion (+4.05%). [2021/1/15 16:15:06]

The booming market is often unable to evaluate DeFi completely and objectively, and it is also difficult to accurately judge the future development of DeFi. However, investors should treat popular projects rationally. Good DeFi projects need to be able to withstand code security, regulatory review, etc. multiple tests.

Previously, many exchanges rushed to launch YAM in order to hype the hot spots, which resulted in irreparable losses to investors. Regarding popular projects, KuCoin CEO Johnny expressed his opinion: "KuCoin always puts the interests of users first. Under the frantic market investment sentiment, investors should remain rational. KuCoin is very supportive of the development of high-quality projects , but we have a set of our own currency listing review mechanism. KuCoin will strictly review all projects, and they will go online only after meeting our currency listing requirements. This is the real responsibility to users, and it can also avoid incidents like YAM, thereby protecting users asset security."

In-depth participation, using the public chain to empower the development of DeFi

In addition to the risks of the project itself, the current development of the DeFi field is also facing more "basic" problems. According to Oklink data, the fee income of Ethereum miners has exceeded the block reward. The average ETH block income is 5ETH, the block reward is 2ETH, and the remaining 3ETH is the fee income. Due to the increase in gas costs caused by DeFi liquidity mining This has led to an increase in the fee income of Ethereum miners. The maximum transaction fee for a single transfer has soared to 300Gwei (about 20 US dollars), but the average level has remained at around 3 US dollars. In addition, the revenue of Ethereum miners in July was $143.8 million, a 23-month high, and transaction fees accounted for nearly 23% of the revenue of Ethereum miners for the month.

The serious congestion of ETH and high transfer fees have restricted the better development of DeFi projects. KuCoin, known as the "infrastructure madman", realizes that the market should not only focus on projects and prices, but also on the underlying public chain Only by improving the performance of the underlying public chain in the DeFi field can the industry develop better.

To this end, KuCoin has created a financial-grade public chain KuChian through the advantages accumulated in the industry to improve the performance of the underlying public chain of DeFi. Recently, the KuChain testnet Kratos has started its public beta. Kratos and KuChain have maintained a high degree of consistency in terms of business philosophy, technical architecture, and resources. Both the development team and the demand side can operate on Kratos and experience the governance of public chain projects. , Mortgage and verification functions provide a free space for the exploration and practice of blockchain technology in the financial field.

Kratos aims at the needs of the DeFi field, builds a technical design of a four-layer network, and modularizes multiple protocols and functions to improve the ease of use of Kratos while lowering the threshold for developers to participate, and solves the current pain points in the DeFi field , Aiming at the problem of poor DEX liquidity, LSP (Liquidity Sharing Protocol) has been developed. DEX on the chain can call this protocol to improve its liquidity, truly implement blockchain technology and bring new changes to the industry.

At the governance level of the public chain, Kratos adopts the model of public proposals, listens to the opinions of all ecological participants, and sets up a round table committee. Big names in the industry who are not related in any way can make a fairer judgment on any resolution of the round table committee, and improve the efficiency of governance under the premise of ensuring decentralization.

At present, it seems that most of the popularity of the DeFi market comes from the upsurge of speculation, but the core value of DeFi is not only in this, its long-term vitality should come from the construction of a new business system and financial system, so as to create a new, rich and diverse financial business. We expect KuCoin and KuChian to become a solid foundation for the rapid development of DeFi, live up to the reputation of "infrastructure madness", and carry the grand palace of decentralized finance.


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