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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Investing in the Cryptocurrency Market: Two Reliable Options

29 September 2021 | Updated: 29 September 2021

As the cryptocurrency industry continues to add new coins daily, it has become increasingly tough to choose a good investment crypto option. While all crypto assets are good speculative vehicles, not all are suitable for long-term investment.

In this article, we’ll take a brief foray into two of the most reliable crypto-assets in the industry; Binance Coin (BNB) and Uniswap (UNI).

Binance Coin

Binance, the host platform of BNB, is the largest crypto marketplace in the world today. That said, investing in Binance Coin is similar to investing in the stock of Binance. Sitting at the number three spot on the top cryptocurrency rankings, BNB has recorded a meteoric rise over the past few months, thanks to the groundbreaking performance of the exchange.

Also, Binance Coin sometimes functions like an “in-game currency” that rewards users with better price deals on their transactions when they pay with BNB. This bestows the token with a kind of real-money value and also serves as a “lock-in” for traders using the platform.

Despite having suffered a barrage of a clampdown from regulatory authorities across the globe, Binance continues to adjust to the climate and forge ahead. The company has even shown that it is prepared to disrupt its operations to maintain its competitive and leading advantage, making it a reliable investment vehicle.

An example of such disruption occurred after the advent of decentralized exchanges (DEX), which threatens its business model. The behemoth crypto company swiftly launched the Binance Smart Chain (BSC), allowing developers to create decentralized new projects and facilitate fast and cheap transactions, to retain market relevance.

With these points, you begin to grasp why BNB is a mainstay investment vehicle in this rapidly evolving industry.

Uniswap

Uniswap is arguably the best-performing decentralized trading protocol (DEX), despite its relatively late entry into the space. Uniswap serves as a reliable medium for users to “swap” one token for another in a truly decentralized fashion, compared to centralized exchanges like Binance.

The launch of Uniswap V3 in May opened the doors to better lending operations for Lending Partners (market makers). Since this launch, Uniswap has grown from 1.6 million users to over 2.7 million users in four months.

Cryptocurrency Market Volatile: A Fundamental Concern

One salient principle to follow when investing is to scout for a product that solves a real-world problem and dominates its peers. Uniswap and Binance Coin fulfill both requirements.

Nonetheless, investors should anticipate and take safety measures against erratic volatility swings, which occur regularly in the crypto industry. Uniswap is an even guiltier party to this market action.

 

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Uniswap (UNIUSD) Price Finds Support at $22, Targeting $31

16 September 2021 | Updated: 16 September 2021

Uniswap Price Analysis – September 16

The price may reach the resistance level at $31, if it holds not, the price may increase to $34 and $39 price level. Should the resistance level at $31 hold, price may bounce off the level and face the support levels at $44, $15, and $39.

UNI/USD Market

Key Levels:

Resistance levels: $31, $34, $39

Support levels: $22, $15, $12

UNI/USD Long-term Trend: Bullish

Uniswap is bullish on the long-term outlook. The bearish momentum that started on September 02 has been interrupted by the bulls on September 12 when it reaches the support level at $22. The coin consolidates for a week. A strong bullish daily candle emerges which propel the price above the dynamic resistance level. The price is heading towards the resistance level of $31.

UNIUSD Daily chart, September 16

Uniswap is trading above the 9 periods EMA and 21 periods EMA which is an indication of bullish momentum. The fast moving average (9 periods EMA) is crossing the slow moving average (21 periods EMA) upside as a sign of bullish trend. The price may reach the resistance level at $31, if it holds not, the price may increase to $34 and $39 price level. Should the resistance level at $31 hold, price may bounce off the level and face the support levels at $44, $15, and $39.

UNI/USD Medium-term Trend: Bearish

Uniswap is bullish on the 4-hour chart. The support level at $22 holds and the price bounces off after testing it three times. Bulls gained more momentum and pushes the coin towards north side, breaking up the dynamic resistance levels. The price is currently targeting the resistance level of $31.

Uniswap is trading above the 9 periods EMA and 21 periods EMA, the relative strength index period 14 is at 70 levels bending up to indicate buy signal.

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Have you invested in an extremely rare opportunity of a lifetime?

22 February 2021 | Updated: 22 February 2021

The Next “Buzz Word” Altcoins
Last month, the Bloomberg Galaxy Crypto Index was at 1414.37, following a low of 217.82 in early March. BTC had made a new high yesterday at $51,630.86. Today (February 17) and the index was at 2,295.61. That’s a huge gain for one month.

Let me put this into perspective. In late 2017, I said that cryptoassets were the biggest institution revolution since the Industrial Revolution and that they represented the investment of a lifetime. Institutions, however, were not ready or capable of participating in that revolution so they “pooh-poohed” it. The SEC decided that most altcoins were securities which precipitated a huge bear market. By the end of 2018, cryptos had undergone an 85% decline and BTC hit a low price of $3,236.76 on Dec 15, 2018. But then look what happened.
BTC was up 92.71% in 2019
It was up 305.94% in 2020
And it’s up 75.42% in less than 50 days of 2021….

What did I say in 2018? There was actually a period from October through November last year when I made over $3 million in 7 weeks. Cryptos are the investment of a lifetime.

While BTC could go up another 10 fold in the long run, I doubt that it will go much over $100,000 this year…. But the opportunity of a lifetime is not over because now the altcoins are starting to move. Here are a few examples, and this is just the movement in 2021.

BNB 289%
ETH 144%
LINK 178%
SNX 215%
AAVE 397%
CND 145%

And remember those gains are just from the 48 days of 2021….

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Update on Cryptoassets
I think that there are a number of altcoins that could go up 10 times or more during the rest of 2021. Now we might have a decline of 40% or more during the year, but it probably will be short-lived with a very quick recovery…
BTC was up 92.7% in 2019, 305.94% in 2020, and in the first six weeks of 2021, it’s up 74.22%. Let’s contrast that with the other hedge against the USD and disaster, gold. Gold was up 20.94% in 2019, up 18.32% in 2020, and it’s down 5.1% so far in 2021. The path of safety is now BTC.

Gold has about 10 times more market cap than cryptos right now (even though cryptos are now over a trillion for the 1st time). If all of the money in gold went into BTC, BTC’s price would be about $370,000…

People talk about BTC being volatile and risky. But where can you find something that has made over 1,000% in 3 of the last 11 years, over 100% in 8 of them, and had only two losing years? There is only one other place than BTC with anywhere near equal performance – other cryptoassets.
If you had bought BTC at the beginning of 2012 (well, not at the very beginning), you would have turned $1,000 into more than $7.1 million (up $4.5M last month)…

Remember these are 30-day percent gains. This is probably the easiest market possible to make a lot of money. You could, however, just as easily enter a position and immediately have a 25% drawdown – which could cause you to exit and then miss out on some nice gains. If you don’t have strong beliefs about cryptos like I do, crypto volatility will test you…

This newsletter makes no recommendations about cryptos but is a free service… I personally own positions in most of the cryptos mentioned in this newsletter.

Author: Van K. Tharp, PhD

Note: This article was culled and abridged from a monthly cryptos update by Dr. Van Tharp. The full article can be accessed here.

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Uniswap (UNI) Price Increases by 3.82% Yesterday, Further Increase Expected 

18 February 2021 | Updated: 18 February 2021
Uniswap Price Analysis – February 18

In case the bulls were able to push the price and close above the resistance level at $24, then, the resistance level at $27 and $30 will be the target. Inability to close above the mentioned resistance level may allow the sellers to push the coin towards $21, $17 and $14 support levels.

UNI/USD Market
Key Levels:

Resistance levels: $24, $27, $30

Support levels: $21, $17, $14

UNI/USD Long-term Trend: Bullish

On the long-term outlook, Uniswap is bullish. The coin broke out of the consolidation mode on January 13. The former resistance levels of $17, $21 were penetrated with the buyer’s aim to continue buying the coin. At the resistance level of $24, the bullish movement became weak and the price pulled back to retest the $17 price level. The bulls is gaining more pressure to push up the price towards the previous high resistance at $24 for a second-time retest.

Uniswap Daily chart, February 18

The price is currently sat on the support level at $21 with a daily bullish candle which indicates that the bulls open today’s market. Moreover, the Relative Strength Index is bending up above 60 levels connotes further increase of the UNI price. In case the bulls were able to push the price and close above the resistance level at $24, then, the resistance level at $27 and $30 will be the target. Inability to close above the mentioned resistance level may allow the sellers to push the coin towards $21, $17 and $14 support levels.

UNIUSD Medium-term Trend: Bullish

The coin is on the bullish movement. The sellers have not got enough momentum to push the coin down far beyond the support level at $17 when there was a pullback. Uniswap bounces increase and break up the resistance level of $21 moving towards the $24 price level. Further price increase envisaged.

Uniswap 4-hour chart, February 18

However, the relative strength index period 14 is pointing upside at 60 levels indicates a buy signal. The coin may breakup the $24 level and targets the $27 price level.

 

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Uniswap Price Analysis — February 8

8 February 2021 | Updated: 8 February 2021

Uniswap (UNI) has been on a roll since the start of the year with the market capitalization increasing by about 280% in its year-to-date figures. Although the cryptocurrency has traded on a depressed momentum through February, the possibility for another leg up appears to be very likely.

IntoTheBlock’s In/Out of the Money around Price (IOMAP) model shows that there is very little resistance ahead for Uniswap at its current price level ($19.44). Instead, the model reveals that there is a massive demand wall lying ahead for UNI. The $19.60 resistance was said to be a significant price point for UNI, considering that there was a 2,900-address strong buy wall at that level that bought about 8.4 million UNI.

Considering the strength of this buy wall, a fall below the $19.60 level—like we are currently seeing—will prompt these investors to bulk-up on their holding to avoid seeing their investment go ‘Out of The Money.’

That said, if a major downward swing rocks the UNI, the IOMAP showed that there was yet another buy wall at the $18.04 support area. At this buy wall, there were 6,500 addresses ready to purchase about 1.45 million tokens.

Uniswap is a Decentralized Exchange (DEX) protocol created by Hayden Adams in 2018. The DEX allows investors to trade ERC-20 tokens in a non-custodial manner through designated software or hardware wallets. Uniswap released its governance token (UNI) via airdrop on 16 September 2020.

UNI – 4-Hour Chart

Key UNI Levels to Watch — February 8

Following a recent fall from the $22.64 all-time high last week, UNI appears to have rebounded from the $17.23. The cryptocurrency is now trading up along our ascending trendline, as the cryptocurrency aims for the $22.64 ATH. However, UNI would first have to clear the $20.86 resistance in the coming hours.

Failure to clear this resistance soon could send the cryptocurrency down to the $18.65 support, where more dip-buyers could come on board.

Meanwhile, our key resistance levels are at $20.86, $21.68, and $22.64. While our key support levels are at $18.60, $17.23, and $15.84.

Total Market Capitalization: $1.34 trillion

Uniswap Market Capitalization: $5.8 billion

Uniswap Dominance: 0.4%

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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