What are the benefits of DeFi insurance?

11 October 2021 | Updated: 11 October 2021

Introduction
Despite the recent robust growth of Defi, it is still somehow a nascent term to the financial market. Likewise, Defi insurance seems yet to be widely applied to all crypto-assets and holdings. However, it is a fact that even though Defi platforms have been gradually expanding their influence and trust among investors, a cover of insurance is always of necessity in case of any risk and fraud occurrences.

For the time being, out of the 2-trillion-dollar worth of cryptocurrency market, there are only 150 billion dollars in Defi (Decentralized finance). The problem is that more than 98 percent of the total value locked (or TVL) in Defi has not been insured regardless of its need.
In a rapidly accelerating yet precarious finance sector as Defi, this may be a threat to Defi fund holders when there is no protection for their assets against smart contract hacks, exploits, and malfunction.

What is DeFi insurance?
Insurance must not be a new concept for us. As for DeFi, insurance plays the role of safeguarding losses that tend to happen for stakes and assets in Defi. Its operations are based on quantifying hazards and redeeming claims from DeFi participants.

As we all know, generally, finance is not a safe sector, not to mention DeFi. Within Defi, lurk the causes of smart contract misconfiguration, cyber hacks, phishing among community members, and many more unwanted situations that may happen. Still, it seems that the lack of Defi insurance usage is true while only 2 percent of TVL is insured. This truth can be more dangerous than most of us think because a widespread severe loss-inducing incident can drastically cause damages to the whole DeFi ecosystem.

How does it work?
Decentralized insurance relies on smart contracts to set up different terms and provisions that identify the conditions under which a party will be relieved from financial damages and losses to a specific extent. The monetary damages can stem from a diversity of causes such as smart contract exploits, black swan events, information hacks, scams, and so on.
The mechanism of Decentralized insurance requires specific potential perils to be coded into smart contracts based on the Blockchain platform. Once the smart contract protocols have been formed for resolving predictably possible financial hazards, they can’t be modified. This is quite advantageous to the objective arbitration on insurance claims.

In brief, smart contracts contain pieces of code that encrypt policy terms, and automatically, when any occurrences of catastrophes come up toward the digital wallets, the cover for damages will be dictated according to these smart contract protocols. They will take responsibility for deciding on the situations, and if the losses are within the policy parameters, insurers will pay for the financial damages.

What are the benefits of DeFi Insurance?
The most outstanding benefit that we can get from Decentralized insurance, of course, is the security it offers against unexpected losses from market threats and digital crimes. To elaborate on this, below are some reasons that will convince anyone that this type of insurance is totally in demand if you are a participant in the DeFi market.

Its transparency and immutability
Defi insurance operates on the basis of smart contracts with configured protocols that are set to examine the contexts of insurance-claiming cases and make decisions automatically. These smart contract terms will assert if covers will be supplied or not in a completely objective way after evaluating if all necessary conditions are met for the legitimacy of insurance compensation.
Moreover, once the conditions are set, they are unchangeable, and any attempts to manipulate the appraisals of DeFi insurance smart contracts will be useless.
Rapid compensation process
A Defi insurance paying-out procedure has the upper hand over traditional insurance because of its smart contract automation. The decisions on the validity of an insurance claim and the quantifying of redemptions are based on algorithms. So, the finalization of the case will be much quicker and will avoid biases and subjectivity.

Protects against hacks on exchange platforms
On the one hand, Defi is considered safe because it doesn’t consist of any intermediaries, but there are other things we have to worry about when being a member of a DeFi ecosystem. There is no guarantee that your digital wallet and your information won’t be hacked. You still have to be cautious about the swindlers and cybercriminals around the digital finance market. The bad things that can happen to your DeFi assets are thefts or attacks on digital wallets, smart contract exploits, account detail hacks, and more.
For this reason, you need two things to prevent as many risks as possible: choosing a trustful exchange platform and looking for the right insurance provider against all the threats that may cause harm.

Protect against losses from weekly-coded smart contract
Even if the smart contracts that your DeFi transactions depend on are configured with highly safe factors, as a DeFi community stakeholder, remaining on alert is more than necessary. However superior Technology has become today, we have to agree that it is not perfect. Your smart contracts may have been hiding some loopholes that will be vulnerable to hackers if detected and insurance approaches are always in need to prevent unwanted hacks and exploits from happening.

DeFi insurance is extremely important, considering all the risks we may come across in our stakings and fundings in DeFi. However, to optimize the benefits of this insurance type, policymakers have to keep in mind the significance of consideration when it comes to policy formation. Measures on policies’ impacts must be taken carefully, and approaches to expedite the insurance redemption and examination must be considered appropriately. After all, once we have set the DeFi insurance smart contracts, the protocols can’t be modified. Therefore, we have to be careful with any determinations in establishing them.

Conclusion:
At the cutting edge of digitality, the emergence of DeFi platforms has been notably powerful. As a result, DeFi is projected to spread among the market in the near future. Simultaneously, many DeFi insurers have set forth their services to protect DeFi funders from all possible risks that may happen along the line. However, it is important to determine a credible insurance provider to keep your assets safe from fluctuations and risks of the market and DeFi ecosystem.


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Eightcap Launches 250+ Crypto Derivatives, Positioning Itself as the Largest Cryptocurrency Offering for Retail Clients

7 September 2021 | Updated: 7 September 2021

Eightcap, an award-winning CFD broker, has announced the launch of over 250 Cryptocurrency derivatives, allowing its clients to diversify their crypto portfolio via the MT4 and MT5 platforms. This new launch positions the broker as the new home of crypto derivatives and the largest within the CFD sector.

The broker recognises the current worries retail clients face with crypto exchanges that reduce withdrawal limits due to regulatory issues and steps in with a solution. Not only will clients be able to buy or sell a wide range of Cryptocurrency CFDs, including crypto-crosses and crypto indices, but its clients will also have multiple funding options and be able to make quick withdrawals.
Eightcap Launches 250+ Crypto Derivatives, Positioning Itself as the Largest Cryptocurrency Offering for Retail Clients“Our vision at Eightcap is to provide a new home for Crypto derivative traders by providing an unparalleled offering that includes the largest crypto derivative library paired with ultra-low spreads and fast withdrawal options,” said Joel Murphy, CEO, Eightcap. “The regulatory issues crypto exchanges such as Binance are facing means traders are left with unnecessary worries about their funds and if they can withdraw them. With us, Crypto derivative traders can have a seamless experience from the moment they open an account to when they want to withdraw their funds.”


Marcus Fetherston, Director of Operations at Eightcap added, “The Eightcap offering focuses solely on creating regulated leveraged derivative trading opportunities for Cryptocurrency traders, that offers more security than traditional offshore exchange platforms. We are thrilled to provide a solution that meets the needs of crypto derivative traders so that they can gain the best possible trading experience.”
Crypto derivative traders that are currently with other Crypto exchanges and brokers have access to a limited range of Crypto derivatives with wide spreads. When switching to Eightcap, Crypto derivative traders will be able to choose from the largest Cryptocurrency offering, experience tight spreads, and also deposit and withdraw with ease, with a regulated broker.

To find out more about Eightcap’s comprehensive new offering, click here.

About Eightcap
Eightcap is an online financial trading company based in Melbourne, Australia. Eightcap is regulated in multiple jurisdictions. The rapidly growing broker provides online Forex and CFD trading solutions via the award-winning MT4 and MT5 trading platforms. Supported with competitive pricing, outstanding client support, and superior execution technology, Eightcap offers trading to retail and institutional clients across Forex, Indices, Commodities, and Shares markets.
Disclosure
The information contained in this email is confidential and for the use of the addressee only. If you have received this email in error, please notify us and delete it from your system immediately. Please note that the views or opinions expressed in this email do not necessarily constitute that of Eightcap. Risk Warning: Margin trading carries significant risks, including the risk of losing the entirety of your initial investment. You also do not own, or have any rights to the underlying assets. Margin trading is not suitable for all investors, so please ensure that you are fully aware of the risks involved, seek independent advice if necessary, and read the relevant legal documentation (available from our website) before making any decisions.

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DeFi Coin (DEFC) Consolidates for a Stronger Hold Higher

2 August 2021 | Updated: 2 August 2021

DeFi Coin (DEFC) Price Analysis – August 2

After last month’s fall paused on the approach to daily cloud base and subsequent positive finish, the DEFC continues to consolidate its position in early August as recovery sustains, buyers are adding additional evidence to cement reversal. On July 31, the team said it will lock in DeFi Coin Liquidity for a one-year contract within 72 hours. Locking liquidity not only protects trade volume but also demonstrates a commitment to the DeFi Coin Protocol.

Key Levels
Supply Levels: $2.186, $1.500, $1.277
Demand Levels: $0.661, $0.500, $0.075
DeFi Coin (DEFC) 12-Hour Chart: Ranging
The DeFi Coin (DEFC) will most likely rebound from the ascending trendline support around the $0.833 level before recovering to the $1.277 resistance level, according to the price most likely scenario. Alternatively, until a new fundamental catalyst arises to prompt a range breach, the DEFC could remain range-bound between $0.661 and $1.277.

However, the positive relative strength index (RSI) price divergence in the coin is still extending up to $1.500. This raises the probability of the coin rallying to rise in the medium run. A notable entry for the DEFC will be on a bounce off the ascending trendline at $0.833 or on a reach of the horizontal support level at $0.661 if a short decline occurs.

Note: Learn2.trade is not a financial advisor. Do your research before investing your funds in any financial asset or presented product or event. We are not responsible for your investing results

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DeFi Coin Upside Continuation Confirmed!

28 July 2021 | Updated: 28 July 2021

Defi coin is located at 1.4453 at the time of writing and it seems determined to resume its growth. Despite some spikes higher, DEFC_USDT has consolidated around the current levels, so the bias is bullish.

It has stabilized far above the 1.0000 psychological level which is very important. Personally, I believe that we’ll get fresh buying opportunities soon.

Defi Coin H1 Technical Analysis!

Defi coin has managed to jump above the immediate downtrend line signaling further growth. Now, it has decreased a little to retest the uptrend line. The last H1 bullish candle representing a false breakdown with great separation below dynamic support signals strong buyers.

As you can see on this chart, Defi Coin has escaped from the descending pitchfork’s body and now is pressuring the first warning line (wl1). Technically, making a valid breakout through the warning line could really signal more gains ahead.

Also, making a new higher high, jumping and closing above 1.5300 validates strong upwards movement towards the former highs.

Conclusion!

Defi Coin (DEFC_USDT) has confirmed its bullish outlook again by retesting the uptrend line. Taking out the warning line (wl1) could really indicate upside continuation!

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Olimpiu Tuns graduated with a Master in Business Administration and is a seasoned Market Analyst / Trader / Trainer with 10 years of experience in the financial markets having expertise in Forex, Commodities, Index, Cryptocurrencies, and Stocks. He worked as a Market Analyst for three major brokerage companies, as a prop trader, and as a contributor/content creator for news portals and educational platforms.

Defi Coin continues rally after breaking with the $1 level

27 July 2021 | Updated: 27 July 2021

Key Support: 1.20
Key Resistance: 1.50

After breaking with the $1 level last week (signal was also sent last week), Defi Coin has continued with its bullish move topping at around  per Coin. That’s a nice % bull run right there.

Price has pulled back inside of a continuation pattern to retest the level and price is stabilizing nicely above that level giving us the opportunity to buy into a pullback AGAIN!

The idea here is to HOLD this coin but not to buy it blindly. This is why we wait for these opportunities.

The idea here is to buy the consolidation breakout above3 1.5295 and HOLD this coin for farther upside. The calculated targets of the breakout are at the $2.11 level. Here is where you can take partials but we recommend you hold to at least half of your coins for a real long term swing trade.

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Defi Coin’s dip buy on a 150% rally

22 July 2021 | Updated: 22 July 2021

Key Support: 1.12 – 1.00
Key Resistance: 1.27 – 1.40

We have been telling you for more than 2 month about this coin. When we first presented it to you it was at presale at $0.10 per coin and now Defi Coin is trading at $1.14 per coin.

Before we go through the buy signal analysis let’s look at some fundamentals. Defi Coin has a market cap of $51,000,000 and right now it’s the THIRD best performing coin on Bitmart, the 4th largest crypto exchange in the world.
The upside is huge but we trade what we see and only jump in on optimal setups.

Today Defi Coin broke with a bullish continuation pattern after bottoming around then $1.03 level. Shortly after, it broke with today’s highs and RIGHT NOW it’s retesting those previous broken highs giving us a 1:2 risk to reward ratio on this trade.

The idea is to buy this dip and take partials at the calculated breakout targets at the 1.27 level and hold the rest for further upside on what seems to be massive bullish momentum.

If you want to get in on this amazing opportunity the place to buy these coins is Bitmart. Jus go here an open an account today before you miss this perfect dip buy setup: BITMART 

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Grayscale Partners with CoinDesk to Launch DeFi Fund

19 July 2021 | Updated: 19 July 2021

The world’s largest cryptocurrency asset manager, Grayscale Investments, has announced that it is partnering with CoinDesk Indexes to launch the Grayscale DeFi Fund.

The latest offering from the investment giant will allow customers to get exposure to the booming decentralized finance (DeFi) industry. The Grayscale DeFi Fund will become the firm’s fifteenth product offering and its second diversified fund in the cryptocurrency space. According to the official announcement, the fund will include “leading DeFi protocols through a market-capitalization-weighted portfolio designed to track the CoinDesk DeFi Index.”

Commenting on the new development, Grayscale Investment CEO Michael Sonnenshein stated that the firm would continue to look out for offering opportunities for investors to access. Sonnenshein noted that:

“The emergence of decentralized finance protocols provides clear examples of technologies that can redefine the future of the financial services industry. We’re proud to offer investors exposure to DeFi through Grayscale’s trusted, secure, and industry-leading investment product structures.”

The investment company will partner with CoinDesk to provide the DeFi index for the investment fund. The index would also set a benchmark representation of the DeFi protocols. The index will consist of market capitalization and liquidity of current DeFi projects.

DeFi Projects Currently on the Grayscale DeFi Fund

Currently, the DeFi Fund consists of ten DeFi projects, including Uniswap, Aave, Compound, Curve, MakerDAO, SushiSwap, Synthetix, Yearn Finance, UMA Protocol, and Bancor Network Token.

UNI currently accounts for half of the entire portfolio, with 49.95% of the fund held in the decentralized exchange’s native token. Aave comes in second place, dominating 10.25% of the fund, while the rest of the DeFi projects take up single-digit allocations in the fund.

While commenting on the partnership, the Managing Director of CoinDesk Indexes, Jodie Gunzberg, noted that:

“With increasing attention on the innovations within decentralized finance, it’s critical for the investment community to have tools that deliver calculated exposure to this exciting area of innovation. This collaboration offers investors the data and tools they need to gain exposure to decentralized finance into their portfolios.”

The fund is open to daily subscription by eligible individuals and institutional accredited investors.

 

You can purchase crypto coins here: Buy Tokens

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Can People Earn In Yield Farm? – Here Is The Ultimate Answer

28 May 2021 | Updated: 28 May 2021

 If in the past, in the field of cryptocurrencies, investors wanted to find a way to increase profits or increase the number of coins held by trading, now there is a new way to help investors quickly increase that amount of coins. It is Yield Farming.

So what is Yield Farming? How does it work?

The following article will help you better understand this term and help you make money with this method in the safest way.

What Is DeFi?
Let’s take a look at the term DeFi Yield Farming. Before getting into more details about Yield Farming, we’ll take apart the term DeFi.

DeFi generally refers to Decentralized finance. Decentralized finance can better be defined by defining its opposite, which is Centralized finance. It’s something that we’re all used to today. Centralized finance means that there is a powerful company or institution at the center of the whole financial transaction. For example, you want a loan from the bank, and you go to the bank. If the people at the bank don’t like your credit, they don’t like your color or where you’re from, you may not get that loan.

One problem about Centralized finance is that there is a centralized organization controlling access to capital and you have to interpret all the rules written and check whether or not you fit those interpretations. In contrast, Decentralized finance is all self-executing programs that exist on the Ethereum blockchain. There is no centralized place where your transactions can be controlled. You can go and get your lending decisions based upon not anyone’s interpretation but whether or not you meet the rules that have been set
up by programs.
This new way of finance is aimed to carry out financial activities such as lending, borrowing, investing in platforms that are decentralized open-source and do not
rely on big institutions.

What Is Yield Farming?
One of the things that exist in the DeFi framework is a type of program called a smart contract, which is pivotal to the function of the whole system. A type of
smart contract is called a liquidity pool from which people can execute Yield Farming.

Yield Farming is the procedure of taking an initial investment to gain an annual interest and you can grow that investment without having to add new money. More simply, it means locking up cryptocurrencies and achieving rewards.

How Does Yield Farming Work?
To better understand this concept we will need to know about the Automated Market Maker (AMM) model. We can mention the popular AMMs like LaunchZone, Uniswap or Pancakeswap. Like centralized exchanges, AMM has many different trading pairs but especially there are no buy or sell orders and traders do not need to look for buyers. Instead of that, a smart contract will work with the role of the creator of the exchange transaction.

Therefore, although there is no need for intermediaries, someone must still create the market and provide liquidity. Those are liquidity providers (LPs). When you want to exchange Usdt for BSCX, you will exchange it with the Liquidity Pool. USD is transferred to the Pool and BSCX will be from the pool to your wallet. When someone else wants to exchange BSCX for Usdt the process is similar.

To understand how such high returns are plausible, you need to understand TVL and liquidity pools, which are the three core elements of yield farming.
Total Value Locked (TVL)
TVL is the total liquidity in liquidity pools, making it a useful metric for measuring the health of DeFi and the yield farming market in general. It is also an effective metric for comparing the “market share” of different DeFi protocols. A pretty good destination for watching TVL is Defi Pulse.

Here you can check which platform has the highest amount of ETH or other cryptocurrencies locked
in DeFi. Accordingly, it can give you an overview of the current yield farming status.

Of course, the more value locked, the more yield farming continues to grow. It is worth noting that TVL can be measured in ETH, USD, or even BTC. Each will give you a different view of the state of the DeFi money market.

Liquidity Pools
These pools allow anyone to stake their assets into them to earn a passive income through interest. The interest is generated from the trading fees imposed upon users who tap into these pools to make exchanges. It is distributed to every liquidity provider based on what percentage of the total pool they provide.

How Is Yield Farming’s Profit Calculated?
Normally, the profit from Yield Farming will be calculated on an annual basis, like the interest rate on a 1-year savings deposit. There are two units of profit measurements that you often see are APY (Annual Percentage Yield) and APR (Annual Percentage Rate). APY takes into account compound interest while APR does not. If so, is there any way to calculate profit from Yield Farming in the short term?

It is quite difficult to estimate the profit from Yield Farming because it is a highly competitive campaign and many innovations as projects try to attract investors to provide liquidity into their protocol. As a result, profit levels can change very quickly and are difficult to accurately calculate in the short term.

Imagine this, when a user provides liquidity for a project, the protocol will use the built-in algorithm to automatically calculate a certain amount of reward. The more people enter Farming, the lower the reward each person receives, resulting in a lower profit from Yield Farming compared to the original.

As a result, after one year, your actual return may not be the same as the APY or APR at the time you provided the liquidity to the protocol, not taking into account the price movement of the original asset.
Risks Of Yield Farming
Everything above may sound amazing, but Yield Farming is fraught with risks. Like anything in this world, the potential for high rewards always comes along with a comparable chance of you losing money. In the case of yield farming, one of the biggest risks comes from smart contract failure. Because the entire field of DeFi is young and still growing, problems can occur. There’s generally always a chance that a smart contract could either fail or have some exploitable imperfection that could lead to a loss of funds.

Moreover, the impermanent loss is another risk you need to be careful of. That term means that you’re always selling off the better-performing coin in exchange for the lesser performing one. However, don’t worry too much if you invest in a good project. In this case, the impermanent loss can still be countered by transaction fees and the part of the token that can be farmed.

Final Thoughts
Yield Farming brings high profits in a short time. This is something that no one can deny about its attractiveness. However, yield farming still has risks such as asset liquidation, hacking because of fragile smart contracts. Therefore, you should be cautious when sending money to DeFi protocols to farm.

There are many opportunities to find a high return rate compared to traditional finance. Despite that, we still have to remember that it is still a very new industry, so it’s full of risks. We hope this article has provided much useful information for you about DeFi and Yield Farming.

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Big Data Protocol Sees Massive Adoption Surge in Latest DeFi Frenzy

8 March 2021 | Updated: 8 March 2021

With three and four-digit annual percentage yields, Big Data Protocol (BDP) has become the latest talk of the town in the DeFi sector, as the total liquidity on the protocol has surged to $6.1 billion only two days after liquidity mining incentives were launched.

The DeFi protocol announced its fair launch on March 6 that 100% of the initial circulating supply—which is 30% of the total supply of its BDP token—will be distributed to the community over six days. The project is backed by a team of technologists, crypto investors, and data scientists and designed to incentivize liquidity mining over the long term.

There are several liquidity pools for twelve different DeFi assets, which have garnered significant collateral over the past two days. Although yield farming can generate significant returns, potential investors are advised to weigh the risks involved to determine if it is something they can cope with.

More than 1,000,000 ETH has been deposited in the wrapped Ethereum (wETH) pool based on reports from the BDP data vault, placing its APY earning at 40%. About 17,000 BTC is in the wrapped Bitcoin (wBTC) pool with APY earnings of 82%, while the Tether vault has grown by 728 million USDT earnings 96%.

Meanwhile, the top-earning pools are posting 4-digit returns with OCEAN at +1,375% and TOMOE at +1,315%.

A blog post explained that:

“Users provide liquidity to earn bALPHA over three months. Subsequent data tokens, named bBETA and bGAMMA, will launch after bALPHA, which will further incentivize liquidity.”

The post added that a portion of BDP and data tokens are burnt as the adoption of the Protocol and marketplace grows over time.

Distribution of Token Supply
Meanwhile, the total supply of 80 million tokens will get distributed in this order: 30% of the tokens will get distributed in the initial six-day yield farming incentive, 35% will get allocated to future staking reward programs, 25% will get reserved for the ecosystem, and 10% will go to the team and advisors.

The bALPHA data token has a total supply of just 18,000 tokens, which will get allocated to liquidity mining rewards.

 

You can purchase crypto coins here: Buy Coins

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