Yield App, a platform for earning interest, buying, and swapping cryptocurrencies, announced on social media platform X Friday the suspension of all activities in preparation for liquidation proceedings. The Seychelles-based company halted operations due to significant portfolio losses from third-party hedge fund managers on the failed cryptocurrency exchange FTX, which are currently under litigation. To […]
Bitcoin News
Hex Trust to Launch USDX Stablecoin on Flare, Offering Real-World Yield
On May 21, 2024, Hex Trust Group announced the introduction of a native stablecoin, USDX, for the Flare network. Hex Trust also revealed that a Clearpool vault, enabling holders to earn a real-world yield, will debut alongside USDX. Hex Trust’s USDX Stablecoin and Clearpool Vault Aim to Enhance Flare’s Defi Ecosystem Founded in 2018, the […]
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Yield App Angel Launchpad: Finding Promising ICOs Without the Risks
The crypto bull market is well underway, with activity in the VC and early-stage funding sector mounting over the last few weeks as the highly anticipated Bitcoin halving approached. And, as the post-halving phase begins, increasing numbers of new projects are expected to come to market in search of funding. Indeed, the beginning of this […]
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Historic Yield Curve Inversion Reaches 656 Days, Echoing Pre-Stock Market Crash Patterns
Based on the latest data, the yield curve of the U.S. Treasury, which charts the yields for two-year and ten-year bonds, has remained inverted for a total of 656 days. This latest inversion joins previous records set in 1929, 1974, and 2008, all of which preceded substantial declines in the stock market. Recently, market observers […]
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Ethena’s USDE Yield Hits 67%, Outpacing Most Stablecoin Returns
According to the most recent figures, Ethena’s USDE now boasts an APY of 67.2%, positioning it among the top annual percentage rates within the realm of stablecoin decentralized finance (defi). Furthermore, the supply of this stablecoin has expanded significantly, increasing by 414.6% in the last 30 days. Rapid Growth for Ethena’s USDE Currently, Ethena’s USDE […]
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Bitcoin And Crypto Face Turbulence As 10-Year US Treasury Yield Hits 15-Year High
In an environment of soaring interest rates and economic unpredictability, Bitcoin and the broader crypto market face increased headwinds. The shift in the financial landscape was recently underscored by the Benchmark 10-year US Treasury yield, which hit a 16-year high this Thursday.
Longest Yield Curve Inversion Ever
Historically, an inverted yield curve, where short-term yields are higher than long-term ones, has been a harbinger of economic downturns. Notably, the 10-Year minus the 3-Month Treasury Yield curve has been inverted for a record 217 trading days. Past data indicates that the longer the delay between the inversion and the start of a recession, the more severe the recession is likely to be.
Joe Consorti, Market Analyst at The Bitcoin Layer, underscored this concern, remarking on Twitter: “The yield curve is re-steepening at breakneck speed. Up by 10 bps or more today across the curve. Do you know what happens when the yield curve steepens, every single time? Hint: not economic expansion.”
The Fed’s recent signals and policy stance have taken the financial world by storm. Charlie Bilello, Chief Market Strategist at Creative Planning, noted, “The 10-Year Treasury Yield moved up to 4.49% today, highest since October 2007. The Real 10-Year Yield (adjusted for expected inflation) of 2.11% is now at the highest level since March 2009.” Bilello also pointed out the significant reduction in the Fed’s balance sheet, which is currently “over 10% below its April 2022 peak.”
The two largest drawdowns over the last 20 years were between December 2008 and February 2009 with 18.2% (balance sheet hit a new high in Jan 2010), and from January 2015 to August 2019 with -16.7% (balance sheet hit a new high in March 2020).
The rise in the 10-Year Treasury Yield was reiterated by the analysts from “The Kobeissi Letter,” who stated: “BREAKING: 10-Year Note Yield officially hits our 4.50% target… The 10-Year Note Yield is up an incredible 20 basis points in less than 24 hours… With supply side inflation out of control and oil prices back to +, the Fed has no choice. Higher for longer is back.”
The Federal Reserve’s Stand
During Wednesday’s FOMC meeting, the US central bank and chairman Jerome Powell have made clear its intentions, signaling the potential for an additional rate hike this year and forecasting fewer cuts next year. It now forecasts half a percentage point of rate cuts in 2024. Prior, the dot plot showed cut rates by a full percentage point next year.
This “higher for longer” strategy seems to diverge from the market’s prior expectations, despite three months of seemingly positive inflation data. Moreover, Powell conveyed confidence in the US. economy, emphasizing the need to ensure interest rates are adjusted correctly to achieve the central bank’s 2% inflation target.
However, the market remains uncertain, with the CME Group’s FedWatch Tool indicating only a 32% chance of another rate hike in November and a 45% likelihood by December.
Implications For Bitcoin And Crypto
Risk assets, including Bitcoin and other cryptocurrencies, have historically been sensitive to increases in the 10-Year Treasury Yield. Charles Edwards, founder of Capriole Investments, highlighted the challenges for the Bitcoin and crypto sector:
The Fed wants more unemployment. The job market is still too strong. They’ve raised the expected 2024 rates as a result and the 10YR has broken out to new decade highs. As long as the 10YR is breaking upwards like this, risk assets are going to see further headwinds.
Historically, rising yields are indicative of an expectation of higher interest rates, which increase the cost of borrowing. This scenario often leads to a reduction in speculative investments, with investors favoring more stable, yield-bearing assets over riskier options such as Bitcoin and crypto.
Another problem for the market is the “higher for longer” approach and the massive reduction of the Fed’s balance sheet. Risk assets like Bitcoin are traditionally a “sponge” for high liquidity, but when this dries up in the financial market, they usually suffer the most.
In addition, concerns about a possible recession will continue to rise due to the inverted yield curve. Remarkably, Bitcoin and crypto have never traded in a recession, the reaction is uncertain.
At press time, Bitcoin traded at ,655.
Leveraged Yield Protocol Rodeo Finance Initially Loses $1.7 Million in ‘Force-Investment’ Hack
Rodeo Finance, a leveraged yield protocol on Arbitrum, was on July 10 a victim of a “force-investment” hack in which almost .7 million was reportedly stolen. According to Rodeo Finance, about 0,000 has been recovered so far and there are plans to freeze the stolen funds.
Protocol in ‘Paused State’
Rodeo Finance, a leveraged yield farming product, recently became the latest decentralized finance (defi) protocol to fall victim to the so-called force-investment hack after criminals stole approximately .7 million on July 10. As a consequence, the defi protocol has been placed in paused state “until a remediation plan has been finalized and implemented alongside the advice of multiple security experts.”
Our analysis shows that the @Rodeo_Finance hack (w/ ~.53M loss) is a so-called "ForceInvestment" hack: the Investor.earn() routine has a flaw that can be forced to swap $USDC -> $WETH -> $unshETH, but the slippage control cannot take effect as expected due to the flawed… pic.twitter.com/2j0bmQRe2r
— PeckShield Inc. (@peckshield) July 11, 2023
In its July 11 statement, Rodeo Finance acknowledged the attack but claimed to have recovered 0,000. This, according to the protocol, means hackers took 0,000. Meanwhile, in the same statement, Rodeo Finance also explained how the cyber criminals were able to carry out the attack.
“The attack occurred because of one of our oracles meant to be twap for Camelot’s Uniswap v2 pools was sandwiched (a first on Arbitrum) just around it’s price update in order to inflate it’s price. This allowed the hacker to borrow from the lending pool and swap it all to said token, incurring heavy slippage but still going through because of the inflated oracle pricing,” Rodeo Finance said in a tweet.
To cash out their profits, the attacker is said to have “arbitraged” the decentralized exchange’s pool back to the normal price. Rodeo Finance said it was able to recover 0,000 from the yield farm used for the attack.
Concerning the yet-to-be-recovered funds, Rodeo Finance said it is attempting to track and freeze the assets. It added that working with security auditors “to finalize the plan of recovery” is the next planned step.
What are your thoughts on this story? Let us know what you think in the comments section below.
Harvest 3 Reveals Next Gen Yield Farming Platform, Featuring Support for Verse DEX by Bitcoin․com
PRESS RELEASE. Harvest Finance, a leading DeFi platform since mid-2020, is thrilled to announce the launch of its latest product offering, Harvest 3. This platform update introduces a suite of new features and an improved user experience, including the expansion of yield farming opportunities with support for Bitcoin.com’s Verse DEX decentralized exchange.
The first farming opportunity to be launched under this collaboration is the VERSE-ETH farm, swiftly followed by the anticipated launches of WBTC/ETH and USDC/ETH farms.
Harvest 3 is the first to offer farming opportunities on Verse DEX with the unique ability for users to utilize any token in their wallet as liquidity.
Users also benefit from Harvest’s auto-compounding feature which optimizes farming yields. By pooling assets and streamlining network costs, Harvest enables anyone to maximize returns while minimizing gas expenses.
To enhance the user experience, Harvest incorporated the Wido Router, enabling users to effortlessly deposit any token into any Verse farm. There is no need for LP tokens, as the Wido Router efficiently handles the conversion of a user’s token into the corresponding LP and subsequently deposits it.
To improve transparency, Harvest 3 offers detailed APY, Balance, and TVL charts, allowing users to preview them in different time frames and gain insight into the historical performance of their investments.
Moreover, dedicated farm URLs have been implemented to facilitate tailored campaigns for Harvest and its partners, driving targeted traffic and boosting marketing efforts for each farm.
In addition to these features, Harvest is intensifying its focus on Arbitrum by integrating Arbitrum farms within the native app and unveiling plans to extend its flagship token, iFARM, and bootstrap liquidity on the Arbitrum network.
As Harvest’s vaults transition to the ERC-4626 standard, the platform becomes more composable with the broader DeFi ecosystem. Harvest Finance continues to lead the way in delivering innovative and accessible DeFi solutions, with no lock-up periods or withdrawal constraints. Users can effortlessly access and manage their funds while enjoying the benefits of Harvest 3’s enhanced features and capabilities.
About Harvest
Harvest Finance is a pioneering DeFi yield farming platform established in mid-2020. Designed to maximize earnings and streamline the user experience, Harvest Finance pools assets and optimizes network costs associated with auto-compounding. With an ever-evolving suite of features and integrations, Harvest offers a user-friendly experience across various DeFi yield-generating opportunities, ensuring flexibility and accessibility for its users.
Connect with Harvest: Website — Twitter — Discord
About Verse DEX
Verse is a decentralized exchange (DEX) developed by Bitcoin.com, providing innovative solutions for traders and liquidity providers to enhance their earnings. Through Verse Farms, liquidity providers can deposit their LP tokens, earned by contributing to Verse Pools, to receive additional rewards on top of trading fees. As an integral part of Bitcoin.com’s ecosystem, Verse DEX is committed to delivering a seamless and rewarding experience for its users in the DeFi space.
This is a press release. Readers should do their own due diligence before taking any actions related to the promoted company or any of its affiliates or services. Bitcoin.com is not responsible, directly or indirectly, for any damage or loss caused or alleged to be caused by or in connection with the use of or reliance on any content, goods or services mentioned in the press release.
Yield farming is live on Bitcoin․com’s Verse DEX with ~80% APY
Bitcoin.com is excited to announce that Verse Farms are live on the Verse DEX. Anyone can now deposit select Liquidity Pool (LP) tokens into Verse Farms to earn additional rewards on top of the trading fees already earned for providing liquidity.
The first Verse Farm is for the VERSE/ETH pool with a starting APY of ~80%. More Farms will be added soon.
“Yield farming for VERSE tokens helps grow liquidity on the Verse DEX, which improves the trading experience on this important piece of decentralized infrastructure,” said Bitcoin.com CEO Dennis Jarvis. “This is a critical early step towards providing VERSE with broad utility in the Bitcoin.com ecosystem.”
VERSE, which launched in December 2022, is Bitcoin.com’s rewards and utility token. VERSE is fueling the growth and expansion of Bitcoin.com’s ecosystem, which includes over 37 million self-custody wallets created in its multi-chain DeFi-ready mobile app, the Bitcoin.com Wallet. The ecosystem also includes the award-winning Bitcoin.com News portal with over 2.5 million monthly readers.
The VERSE token’s utility will include unlocking rewards along tiers, method of payment in the Bitcoin.com ecosystem and beyond, access to exclusive platform services, and more. Ultimately VERSE will help expand access to decentralized finance, enabling more people to benefit from the economic freedom and democratized finance it unlocks.
Visit https://verse.bitcoin.com/farms to deposit LP tokens and start earning 80% APY.
VERSE tokens are utility tokens designed for use on Bitcoin.com. VERSE tokens are not shares, bonds, units in a collective investment scheme, securities, or other instruments commonly known as securities of any type. VERSE tokens are not being offered for sale to U.S. persons and are not available for purchase in the United States, Japan, or any other as may be specified by Bitcoin.com, from time to time.
‘No, DeFi Is Not Dead,’ Says Ex-Founder Of Yield Finance
Andre Cronje, the co-founder of Fantom Foundation and the ex-creator of Yield Finance, a DeFi protocol, disagrees with people who say DeFi is dead and the period of high yields is gone.
DeFi Is Not Dead
In a Medium post on February 1, Andre agrees that the crypto bear market of the past year impacted activity and forced users to preserve assets, swinging to stablecoins. Even with this, at spot rates, he argues, on-chain metrics and yield readings from various DeFi protocols, including in Yield Finance, point to a possibly undervalued DeFi market.
He compares the current yields of various coins and stablecoins, including USDT, USDC, and DAI, an algorithmic stablecoin issued by MakerDAO, with those of early 2020 as offered by Yield Finance.
Daily APR https://t.co/BAcrlUTqrQ$DAI 8.75% dominated by @bzxHQ. Static since they introduced 9% fixed rate, they own it.@USDC ~4% @compoundfinance and @dydxprotocol fighting over dominance.$USDT comfy at 20.75% at @AaveAave (insane)@CurveFinance $DAI strong at 9.11% pic.twitter.com/dtadzP8Wx2
— yearn (@iearnfinance) February 5, 2020
Then, DeFi was gaining traction, and the total value locked (TVL) had crossed the billion mark. At present, DeFi TVL exceeds billion and, at one point, stood at over 0 billion at the peak of the last rally. By late November 2021, BTC was trading at over ,000.
Early 2020 marked the early stages of a protracted bull market that lasted two years to the end of 2021.
Presently, the ETH, USDT, DAI, and USDC real yields are relatively higher than in 2020. Andre notes that this is amid an inactive market following the losses of last year. Generally, real yields offered by DeFi protocols are from the lending market and trading fees.
At the moment, Andre assesses that everyone who had shorted had sold their coins but appear not confident to exit, which is why he is confident the current yields are “really low” despite being relatively higher than in early 2020.
Considering this development, he disagrees with people who think DeFi is dead and periods of high yields are long gone. He argues that this assertion is based on comparing the “current market with an unsustainable and highly delusional market peak, and not its progression.”
He explained:
If you plot a growth chart on TVL, yield, and trade volume, and you flatten the curve to avoid oscillating, it is a clear linear growth chart.
Andre maintains that DeFi works as designed and doesn’t need a new narrative or a “shiny toy”.
Taking Charge
DeFi provides an alternative to users who would otherwise not participate in traditional finance. The ecosystem comprises decentralized exchanges, insurance protocols, investment platforms, and more.
Because they depend on smart contracts, DeFi protocols devolve control to the end user, unlike centralized platforms like BlockFi or FTX, whose collapse saw clients lose billions in crypto assets that were under the custody of the exchange.