DeFi DeBrief #23: DeFi can solve a $2.2tn problem 😎

TL;DR:

• How DeFi can help FX markets
• Genesis files for bankruptcy protection
• Uniswap move to BNB Chain?

Onwards 👇

Research suggests DeFi can mitigate $2.2tn risk in FX markets 😳

Some people still question the value of blockchain technology.

Well, research from Circle (the creators of USDC) and Uniswap (the biggest decentralised exchange) suggest we could be on the cusp of a breakthrough use case.

A major financial stability concern has troubled regulators for decades, with some $2.2 trillion in foreign exchange transactions sitting in the awkward position that the unsettled side of an agreement could still fail to meet its obligations.

However, a paper from two crypto heavyweights claims that a distributed ledger could solve this problem with simultaneous settlement. It goes on to say an on-chain FX exchange wouldn’t just be faster and cheaper.

It would offer greater liquidity and stability, too.

Why should you care?

Decentralised finance could remain a fringe technology if it doesn’t solve a huge existing need.

This research paper shows how DeFi could do just that. If the paper results in an actual solution, this could be a watershed moment for blockchain technology. Granted, that’s quite a big ‘IF’…

However, it marks a step-change in how people view decentralised finance.

Genesis (finally) files for Chapter 11 😵

Given how the markets reacted (i.e., they didn’t), you could say this news has been coming. But Genesis finally filed for Chapter 11 bankruptcy, a move whose most surprising aspect is the revealing of its largest creditors.

According to its filing, Genesis has over $3.6 billion of debt (with a disputed additional debt load of $765.9 million). And creditors include Mirana Corp, Moonalpha Financial Services Limited, Coincident Capital, and Donut.

IN THE HEADLINES

80% of UNI token holders support switch to BNB Chain 👀

Some 80% of Uniswap token holders have voted in favour of moving the V3 protocol to the BNB Chain. The chain has seen impressive growth in recent times, with its high transaction speeds and low fees attracting Uniswap’s attention.

The DEX feels BNB Chain has several unique features that could enhance its functionality, with a full proposal expected in the coming weeks.

Five short reads catching our eye this week:

1. Is crypto in an echo bubble?
2. Congress has its eyes on crypto regulation
3. ETH staking withdrawals move one step closer
4. China launches smart contracts for digital Yuan
5. How FTX might re-open for business

TEMPERATURE CHECK 🔥

• BTC: $22,705.05 (6.87%, 7 days)
• ETH: $1,553.41 (1.49%, 7 days)
• TVL in DeFi: $46.69bn (2.75%, 7 days)
• Fear & Greed: 51 (neutral)

*Data last updated at 08:00 on 25th January.

TWEET CHECK 🐦

if you are not buying trash-tier assets and if you aren’t using leverage,

then the worst thing you’ll be is a bit too early

that’s it

— DCinvestor.eth ⌐◨-◨ (@iamDCinvestor) January 24, 2023

Forward the DeFi DeBrief to a friend 

and help spread the word!