Golden Observation | The DEX track cannot be ignored How does CEX keep the market?

In this round of market rise, DeFi has played an increasingly important role. Judging from the current situation, both large investors and small and medium investors are participating in "liquidity mining".

The data shows that in DeFi agreements such as Uniswap, Maker, Aave, SushiSwap, and Curve, locked assets continue to rise, and the corresponding secondary market performance is also relatively prominent. From the perspective of trading volume, DEX has exceeded 2% of CEX, which is a very important breakthrough.

The surge in DEX trading volume means a great impact on centralized exchanges. How can CEX keep the market? William, the chief researcher of KEx Research, gave three strategies. For CEX, the relevant value and future prospects of DeFi to the blockchain industry cannot be completely ignored. There must be a corresponding layout, which can be divided into three strategies: upper, middle and lower:

Golden Evening News | List of important news on the evening of May 18: 12:00-21:00 Keywords: State Council, BitMEX, Ant Blockchain, Schlesi Testnet

1. The "Promotion Plan" of the State Council proposes to promote the application of new technologies such as blockchain in the field of copyright protection.

2. Bank of Korea: Decentralization technology will be used in digital currency experiments.

3. The U.S. District Court filed a new lawsuit, and BitMEX was once again in legal disputes.

4. Bakkt has provided custody services to more than 70 customers, and the insurance has increased to US$600 million.

5. The blockchain contract created by Ant Blockchain and e-signature is officially unveiled.

6. Ethereum core developer: The Schlesi testnet has been forked.

7. The first blockchain bidding platform in China has been officially launched.

8. Musk: I don’t believe in Bitcoin, but at least it is more reliable than the US dollar.

9. The results of the FMex community restart referendum are released: the trading platform will be restarted and normal business operations will resume.

10. Bitcoin fell back slightly, with a daily high of $9,949 and a low of $9,480. [2020/5/18]

Best strategy: Develop DeFi wealth management income products on the exchange platform, keep funds in the exchange, and attract new funds to enter. This type of wealth management business is essentially the same as the current trading business. The exchange acts as an intermediary to lower the user threshold and improve user experience. At present, most analysts in the industry have not yet realized that although "liquidity mining" has attracted everyone's attention, the threshold is too high, and a large number of novice users cannot participate at all. If a DeFi wealth management product similar to YFI is developed on the exchange platform, through "one-click wealth management" to help users carry out liquidity mining wealth management (in which the exchange can charge a small amount of commission), or combine multiple DeFi project mining to increase income The rate can not only lower the threshold for DeFi participation, keep user funds in the exchange, but even attract more traffic.

Analysis | Golden disk: VET/USDT is oscillating at a high level: Comprehensive analysis of the golden disk: VET/USDT is oscillating at a high level. Affected by the reduction of capital inflows, the volatility is getting lower and lower. The upper resistance focuses on 0.014, and the lower support focuses on 0.013. [2018/8/21]

Medium strategy: Exchanges directly enter DeFi, and develop or cooperate with projects like Uniswap and Compound.

This is a safe strategy, which can be used to attack or defend. If DeFi really takes off in the future, we can take advantage of the trend and grow; if there is a problem with DeFi in the future, it will not have much impact on us. The only problem is that DeFi projects developed by exchanges may not necessarily be sought after by the market; cooperative projects may not necessarily bring traffic to centralized exchanges.

Golden Quick Review: Facebook changes its policy on cryptocurrency advertising. The wind has changed: According to recode, Facebook is adjusting its cryptocurrency advertising ban, allowing some pre-approved advertisers to promote encrypted businesses and services, such as exchanges. But advertisements for binary options and ICOs are still banned. Just earlier this year, the social networking giant Facebook announced that the company would begin a blanket ban on all advertisements that promote bitcoin, cryptocurrencies, and ICOs. What prompted Facebook's change of attitude? It is clear that the cryptocurrency industry is a fast-growing and exciting industry with many potential advertisers. From Facebook's point of view, as long as some auditing methods are used to ensure that Facebook users will not be deceived, then Facebook will be happy to obtain additional advertising revenue. Google has adopted the same ban as Facebook. In May of this year, Google announced that it will ban advertisers from placing advertisements related to digital cryptocurrencies on its platform in June. In addition, Twitter also has a related ban. Google and Facebook have chosen to ban cryptocurrency-related advertisements. However, Facebook has the meaning of lifting the ban. I don’t know whether Google and Twitter will adjust their related policies in the future. Facebook’s relaxation of related policies also means that Facebook is concerned about encryption The currency field has improved in terms of risk assessment, but it is worth noting that ICO-related advertisements are still banned, and advertisers are still not able to vote if they want to, and still have to be reviewed. Facebook is wary of taking small steps in the cryptocurrency space. [2018/6/27]

Bad policy: Continue to observe and wait for DeFi to be completely successful before following up.

It is worth mentioning that in the wave of mining, we have seen a common phenomenon that a new token locks in a value of hundreds of millions of dollars within a few hours of trading, and the price increases rapidly after logging into the exchange. The general trend is skyrocketing and plummeting. The root cause is that the current situation of DeFi is very similar to the "transaction is mining" launched by Fcoin in 2018. The essence of "liquidity mining" is user subsidies, and it uses the money of investors in the secondary market to subsidize users participating in DeFi.

William, the chief researcher of OKEx Research, pointed out that although the market is touting the advantages of DeFi and wanting to subvert CeFi, they have never realized that the current popularity of DeFi comes from "liquidity mining" rather than DeFi itself. People rush to participate in the DeFi field not because of the performance advantages of DeFi, but because of the profitability of "liquidity mining". Therefore, for ordinary users, the best way to participate is to personally participate in "mining", but we must pay attention to the risks involved.

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