Celsius Just Paid Off the Loan that was Facing Liquidation and withdrew almost 24,000 WBTC -- Some see this as great step towards opening up (limited) withdrawals, while others think it merely represents paying off secured creditors before filing for bankruptcy and/or restructuring.
Ethereum mainnet is so fucking expensive to send a test and then the whole amount. I’ve got ETH and WBTC stuck on Optimism because I don’t want to pay fees to get it back to mainnet so until I get throwaway money that shit is staying there.
I’ll try to suggest something that hasn’t been mentioned yet that is relatively safe. GLP is an index of a few crypto assets on the Arbitrum or Avalanche network (I recommend Arbitrum for better liquidity and no exposure to AVAX). Basically GLP acts as the liquidity provider to traders on GMX, a decentralized perpetuals exchange. On Arbitrum, GLP consists of 35% ETH, 15% WBTC, 48% stables (USDC, USDT, etc) and a tiny bit of UNI and LINK. If you want to stay relatively safe and risk off, it allows you to gain exposure to half the price action of ETH and BTC. Additionally, holding GLP allows you to receive 70% of the fees the GMX platform generates from margin trading, swaps, liquidations, etc.
WBTC and ETH are two of the biggest assets in terms of TVL on DeFi platforms. Just holding raw, unstaked ETH sitting idly in your wallet is not what's best for the ecosystem. Ultimately, Ethereum is a decentralized app platform. The internet by itself doesn't have any inherent value. The value of the internet is an emergent property of the web apps built on top of it and what they allow users to do. DeFi primitives will form the base layer of monetization for user-centric dApps that will actually allow Ethereum to realize the value of the network.
tldr; Bitcoin is one day away from matching its historic 15-day win streak if its positive price movement keeps up. In November 2013 Bitcoin posted a 15-days of consistent positive price movements, the longest in its history. The number of non-zero ETH addresses reached an all-time high of nearly 92.5 million on January 16. Wrapped Bitcoin (WBTC) has seen its supply drop by 35% since May 2022. *This summary is auto generated by a bot and not meant to replace reading the original article. As always, DYOR.*
Lots of great info here. Though, I want to highlight that not all wrapped tokens are alike. Wrapped tokens have their purpose but may also come with additional risks and can vary in implementation. For example, WETH and WBTC are the top two wrapped tokens by transaction volume. Both are ERC-20-based but differ in their approach. However, they both serve a similar purpose: to enable ETH and BTC to interact with Ethereum dApps, respectively. WETH is decentralized and solely relies on a smart contract with no custodian and was designed this way. At the same time, WBTC also uses a smart contract but requires interacting with centralized intermediaries (merchants) and BitGo, which is the custodian of BTC deposited for WBTC and is responsible for issuing and burning WBTC tokens.
Unfortunately, Newton isn't allowing WBTC swaps (Supended). I'll try out Uniswap. I only have a small amount of USDT left at Midas (some promotion of $10 plus interest now totalling $11 and change). When I tested what I could send it for, $10 was lost in fees! Lol
Now you have WBTC in Newton you can use that to swap to BTC no problem. Just sell WBTC to cash, then cash to BTC. There's no benefit to use Uniswap if you're already in an exchange, and it'll cost a few dollars in $ETH for the blockspace. It's only useful if the exchange doesn't accept wBTC and you need to do the swap for them. USDT is being delisted on all Canadian exchanges at the end of the month. If you get some USDT after, then will be a good opportunity to use Uniswap.
They have a lot of SOL that went up a lot since the article was published: [https://bitcoinist.com/crypto-dump-incoming-ftx-plans-to-sell-altcoins/](https://bitcoinist.com/crypto-dump-incoming-ftx-plans-to-sell-altcoins/) *The largest crypto position, according to Grogan, is Solana (SOL), of which FTX owns more than $700 million.* *This is followed by $575 million in FTT, $371 million MAPS, $127million OXY, $90 million WBTC, $82 million BONA, and around $500 million“in other random” Solana-based (SPL) tokens.*
tldr; According to Arkham Intelligence, Alameda Research liquidators were liquidated for the second time in three days in light of recent market movements. Alameda liquidators wrote off $15,000 of Curve DAO token (CRV) debt on Jan. 14 in exchange for $17,600 of their collateral. They still hold a position short $16,500 of CRV, collateralized by $23,000 WBTC. *This summary is auto generated by a bot and not meant to replace reading the original article. As always, DYOR.*
Pretty misleading and this is peanuts. They are still net long. [https://www.reddit.com/r/CryptoCurrency/comments/10c07u7/alameda\_liquidators\_hit\_with\_liquidation\_for/](https://www.reddit.com/r/CryptoCurrency/comments/10c07u7/alameda_liquidators_hit_with_liquidation_for/) The largest crypto position, according to Grogan, is Solana (SOL), of which FTX owns more than $700 million. This is followed by $575 million in FTT, $371 million MAPS, $127 million OXY, $90 million WBTC, $82 million BONA, and around $500 million “in other random” Solana-based (SPL) tokens.
I'll check if Exodus will accept it directly, thanks. Midas, like Haru, Celsius, etc, are hot wallet providers that allow you to stake CEFI and DEFI coins/tokens for earning interest. I was on Celsius, "staking" for interest. Talk about it was worrying, so I moved ETH and BTC to both Midas and Haru 50-50 to spread the risk, which for 6 months was fine, earning interest at both sites, and avoiding any issues that later occurred at Celsius. Then Midas was affected recently by various crypto s**t and force converted my BTC to WBTC as part of a new strategy, skimmed a little off the top of both my BTC and ETH, and used that for forced conversion of about 15% of my holdings to their token, which then of course crashed in value. Their communications about it were actually very competent, and compared to Celsius' holding of everyone's $$$ and bad communications, Midas did try to fairly address the issues to allow us to keep most of our funds. Haru remains good, but I'm likely going to withdraw from any interest generating staking for a good long period. Overall, I still made good money on interest iver the past 2-3 years, so it was good, but lessons learned.
Thanks for the detailed explanation. I do have a Newton account, I just remembered, that I opened for their deposit $70, get $30 or similar offer last year, I believe, and then transferred out quickly enough . Haven't used it in some time. So, for simplicity sake, it seems like a direct transfer of the WBTC from Midas to Newton will be good to go?
>Midas recently unilaterally swapped my BTC for WBTC. Until now, I've had no experience with WBTC. > >Since I'm based in Canada, do you have any recommendations for an online exchange I can withdraw the WBTC to? E.g. Shakepay doesn't support it; others might (Newton? Coinbase?) wBTC is wrapped-BTC, a token presumably on the Ethereum blockchain. You'll need some ETH in your (ETH) wallet to be able to send it around. Newton supports WBTC and etransfer, based in Canada, no fees - under 1% spread, and they pay $5 toward withdraws.. but strong KYC(MFA). Kraken supports wBTC too but their fiat off ramp is a lot more difficult. Coinbase likely too. If you do swap you can swap wBTC into ETH for around $5 in gas fees at Uniswap, at the moment, and slippage is very low between that pair. Then trade ETH at any exchange you prefer. >And yes, I'm considering a cold wallet for this WBTC as well, so thank you for any reminders on that point. Just remember WBTC isn't BTC. WBTC is a multi-sig contract backed/controlled by a centralized third party, and faces risks similiar to what happened during the Axie Infinity bridge hack. Unless you're using WBTC in Ethereum's DeFi, I'd recommend putting $BTC into cold storage instead, on its native blockchain. I'd even suggest to use ETH in DeFi in place of wBTC due to centralization risk but that's just my opinion, I know why some people would prefer wBTC.
It would fuck up every network. * Fewer scam coins > less DeFi on BSC and Solana + BNB and Sol price drop * Less BSC and Solana activity > Less cross-chain bridge activity * Less cross-chain bridge activity > Less activity on Ethereum * Less activity on Ethereum > ETH price drop + Less need for WBTC * Less need for WBTC > Less BTC liquidity * Less BTC liquidity > BTC price drop
All the alt coins are included in the $4.6B, which may be liquid but will crash the value when they liquidate, and also include $700M in locked Solana coins. And who’s going to buy hundreds of millions of FTT coins now ? Quoted: « The largest crypto position, according to Grogan, is Solana (SOL), of which FTX owns more than $700 million. To this, however, the Coinbase director notes that most of them are locked, so he is not sure why they might have counted them. This is followed by $575 million in FTT, $371 million MAPS, $127 million OXY, $90 million WBTC, $82 million BONA, and around $500 million “in other random” Solana-based (SPL) tokens. »
DAI is mostly backed by centralized USDC. sad. and MAI is mostly backed by centralized WBTC. double sad. that leaves RAI, which is backed by ETH. it's less stable than either, not pegged to the dollar, and slowly leaks out value over time.
TL;DR Onchain research has discovered that wallets connected to Sam Bankman-Fried, the co-founder of FTX, transferred a number of previously unreported transactions across various blockchains. The transfers were discovered by Conor Grogan, a director at Coinbase, and while most of the transactions took place on 28 December 2022, there was some recent activity in the first few days of 2023. Bankman-Fried has denied involvement in the transactions and said he does not have access to the funds. Some of the transactions were carried out on blockchains including Polygon, Binance Smart Chain (BSC), Arbitrum, and Avalanche. The addresses saw outbound movements for coins including MATIC, AVAX, USDC, USDT, BTCB, WBTC, SPELL, PTP, MDX, and others. Onchain researcher Ergo has also tweeted about some FTX-linked bitcoin movements on 4 January 2023, stating: "Likely bankruptcy team activity."
I extracted the insights relevant to BTC so that you don’t have to scan through the report: Bitcoin Findings from Messari Crypto Theses 2023: The Mt Gox bankruptcy proceeds, which amount to a total of 137,000 BTC, may be distributed in early 2023. Bitcoin’s parity with gold would yield a 25x return, so there’s a lot to like in adding a 4% position in digital gold for every ounce of gold you buy. At today’s prices, Bitcoin-Gold parity would bring us a $500,000 Bitcoin. Current Bitcoin Lightning Capacity is about $90 million. Wrapped Bitcoin on Ethereum (WBTC), which is just 10% of the TVL in DeFi applications, is 40x larger. Bitcoin mining produces a lot of e-waste annually, about the same amount as a country the size of the Netherlands. Only about 17% of this e-waste is recycled today. Bitcoin miners have been using wastes and stranded energy sources like flared methane, stranded geothermal energy, coal refuse, and even recycled waste tires. Hence, the narrative that Bitcoin mining is damaging to the environment may need to be relooked. The wasted energy from flaring in the U.S. alone is equal to 78% of the energy used by the global Bitcoin network in 2021. Repurposing flared energy towards Bitcoin mining would drastically reduce the amount of greenhouse gases entering the atmosphere. Bitcoin mining can help strengthen renewable energy grids as renewable energy is unpredictable and results in excess energy during off-peak times that results in energy producers curtailing that energy. Miners can be a constant energy buyer of last resort, increasing profitability for renewable energy operations.
Aave had a $1.5 million hole after liquidating his collateral, which seems like a lot but is only a few days of interest against the assets they hold. The real downside is that Aave and Compound heavily overreacted and restricted lending of all tokens except stablecoins, ETH, and WBTC.
#Dai Pro-Arguments Below is an argument written by mic_droo which won 1st place in the Dai Pro-Arguments topic for a prior [Cointest](/r/CointestOfficial/wiki/cointest_policy) round. > Disclaimer: I am reusing (and adapting) my arguments from the last round, the arguments can be found [here](https://np.reddit.com/r/CointestOfficial/comments/qk4yn1/coin_inquiries_round_dai_proarguments_november/huca2kg/). > > DAI is a stablecoin. But it's not just any stablecoin. Other than most stablecoins it's decentralized, meaning it's ["not created or redeemed by any central, third-party gatekeeper or group of gatekeepers"](https://blog.makerdao.com/why-dai-is-the-most-used-cryptocurrency-in-the-defi-space/). > > It is currently the [fifth biggest stablecoin](https://www.coingecko.com/en/categories/stablecoins) - and even though it is, of course, pegged to fiat - 1 DAI is 1 USD - it is backed [with crypto and not fiat as collateral](https://ethereum.org/en/stablecoins/) - the biggest stablecoin that's not backed by fiat. At the time I'm writing this, it is mostly backed by [USDC, ETH, WBTC and USDP](https://daistats.com/#/overview). That kinda sounds risky, right? I mean we all love crypto, but how can a stablecoin backed by crypto be, well... stable? > > MakerDAO found a way. DAI was started at a really bad time - December 2017, right before the end of the bull run. DAI was only backed by ETH back then, and while ETH lost 80% of its value in the following months, [DAI remained extremely stable](https://fortune.com/2018/10/01/crypto-ethereum-stablecoin-vc-andreessen-horowitz/). And it has remained stable until today, it usually hovers around $1, its ATH and ATL are similar to other big, centralized stablecoins. > > How does it manage to do that? Well, it is regulated by a system of smart contracts. [If DAI goes too far above or below 1 USD, MKR is created or burned](https://decrypt.co/resources/dai-explained-guide-ethereum-stablecoin). So you don't have to trust any person or group to keep the price stable - an algorithm ensures it. > > DAI is [one of the biggest projects in the DeFi-space.](https://www.coingecko.com/en/categories/decentralized-finance-defi) and has "decentralized" written all over it, but it's also available on [most big centralized exchanges](https://www.coingecko.com/en/coins/dai#markets). > > DAI is said to be very secure, [MakerDAO conducts extensive audits and ensures DAI's security](https://www.gemini.com/cryptopedia/dai-stablecoin-what-is-dai-token). As far as stablecoins are concerned, I think DAI is a pretty good deal! ***** Would you like to learn more? [Click here](/r/CointestOfficial/comments/sifdna/coin_inquiries_dai_proarguments_february_2022/) to be taken to the original topic-thread or you can scan through the [Cointest Archive](/r/CointestOfficial/wiki/cointest_archive#wiki_DAI) to find arguments on this topic in other rounds.
Using BTC in defi without adding too many risk Hello everyone and happy holidays! I have a small bag of bitcoin that I saved from the FTX drama but I want to deposit it and earn something while holding. At this moment, my small amount is on a CeX, ready to be withdrawed at any time with a max 2 days delay. What will be the best strategy to put my BTC on chain? (Polygon will be my preference) I know about WBTC, but I don't feel really comfortable with such a centralised solution. Any idea? I looked around and found about synthetic products, but what happened with solBTC makes me even more stressed. Thanks everyone!
Yes but they need to blow through that 60 billion in assets first before you’d even see excess liability and that is frankly a much less likely scenario. You also have zero evidence they have excessive liabilities and yet you seem to be convinced this is an issue. Using PTSD as an investment strategy is idiocy. I’ve been around since the MtGox days and you should **never** ever keep most of your stack on exchanges. But that doesn’t mean going around making nonsense up about businesses makes any sense. The other day people were spouting nonsense about WBTC being unbacked because someone had dumped a bunch on exchanges and slipped the price below regular BTC. People started posting crazy shit on Twitter about how BitGo was doomed or whatever with zero fucking evidence. I was talking to one of their execs and frankly he was just pissed as hell because not only were large redemptions ongoing but you could actually see their backing wallets on chain. People are literally just making garbage up now about every company in the crypto space because SBF was a con artist. Quit spouting bullshit unless you have evidence. If you have proof CZ has been ripping us off then show us the evidence. Otherwise it’s garbage to just blindly attack people who’ve worked hard to build this space for the last decade. These aren’t newcomers like SBF who don’t even believe in crypto and just got into it for quick money. Most of the folks who’ve been around for multiple cycles are in this because they actually believe in it.
>Person A has a bunch of bitcoin, transfers it into Wrapped Bitcoin (“WBTC”), and so now it’s a custodial bearer asset that is tradeable on the Ethereum network. Or you use Internet Computer and hold native BTC without ever wrapping it. And without any bridges. Mint 1:1 if you want to trade chain key BTC (ckBTC) at the speed of the IC then write back directly to the Bitcoin mainnet. ICP has the safest way to hold BTC for DeFi and smart contracts with direct integration since canisters on ICP can hold BTC. The Internet Computer is powerful - you should be looking into it.
Bitcoin is the AOL of cryptocurrency. It's a great first step for many people to learn and gain exposure to blockchain. But, people who stop trying to learn remain Bitcoin fanboys, and never get to learn about smart contracts and the infrastructure of defi apps that is being built. The real power of blockchain is in smart contracts and a new layer of applications that will affect all of global commerce. The best thing you can do with Bitcoin, is wrap it to WBTC to use on a better network... but why not just buy ETH instead? Seems like when BTC fans get togethers all they discuss is price potential. When people of other better blockchains get together, the discussion is in improvement and development.
No, each stable coin is a derivative and anything but equal. Each operates under different terms With different flows to buy and redeem the underlying asset With different companies backing them Operating in different legal jurisdictions 1 USD > 1 USDC > 1 BUSD > 1 USDT Just like BTC > WBTC > GBTC No derivative is equal to another derivative under different contract terms and different jurisdiction any more than a derivative can be equal to actually holding the real thing in your hand 🤷♂️
tldr; BitGo CEO Mike Belshe revealed that the firm declined Alameda Research’s request to redeem 3,000 Wrapped Bitcoin (WBTC) a few days before FTX declared bankruptcy. He said BitGo declined the request because the Alameda representative that reached out to his firm failed the security verification process. *This summary is auto generated by a bot and not meant to replace reading the original article. As always, DYOR.*
Are you a very busy redditor who wants to know what happened, but don't have the time to click articles? Well then this is your lucky day! >BitGo declined the request because the Alameda representative that reached out to his firm failed the security verification process. He added that BitGo is familiar with the representatives of all the firms that owned WBTC, and this representative from Alameda was not someone the custodian had interacted with before. The person was also unfamiliar with the burn addresses, which was where the WBTC was sent to before the release of BTC used to back it.
>BitGo declined the request because the Alameda representative that reached out to his firm failed the security verification process. He added that BitGo is familiar with the representatives of all the firms that owned WBTC, and this representative from Alameda was not someone the custodian had interacted with before. The person was also unfamiliar with the burn addresses, which was where the WBTC was sent to before the release of BTC used to back it.
You can redeem it through multiple merchants. BitGo is the custodian though. Crosschain token wraps always have a centralization point, the tech isn’t there to have a fully decentralized wrapped asset across entirely different chains. As far as wrapped Bitcoin goes on ETH WBTC is by far the most reliable and secure, but you should always hold crypto on it’s base chain in your own custody if you aren’t doing anything with it
Essentially, a wrapped token allows you to use a cryptocurrency on a non-native blockchain. For example, BTC is native to the Bitcoin blockchain and cannot be used on the Ethereum blockchain. However, you can swap BTC for WBTC (wrapped BTC) and then use WBTC on the Ethereum blockchain. With the ability to swap BTC and WBTC 1:1 at any time both ways. I think what u/Maxx3141 means by "go bust" is that if a shady blockchain / wrapped token protocol turns out to be a scam or gets exploited due to a smart contract or protocol bug, users could lose their cryptocurrency. However, there are many reputable wrapped tokens for a variety of blockchains, such as WBTC, which is semi-decentralized and considered a reliable option. Cointelegraph has a great [beginner's guide](https://cointelegraph.com/altcoins-for-beginners/a-beginners-guide-to-understanding-wrapped-tokens-and-wrapped-bitcoin) for wrapped tokens (but may require at least some beginner knowledge of blockchains and cryptocurrency).
All of it is a liability against the collateral backing it. Debt isn't the right word though. Unless you're using tokens issued on PolkaDot or Cosmos, when you move a token from one blockchain to another it involves a smart contract where you send a token into it on one chain and it mints a version of that token on another chain. Example, BTC and ETH are used all throughout defi. Any blockchain with a defi ecosystem uses them. However, BTC is only issued on Bitcoin and ETH is only issued on Ethereum. They get onto other chains via wrapping. For BTC, there's wrapped BTC. You send BTC to the group that runs BTC, they mint a WBTC on Ethereum. Wrapped ETH works the same way but minted to other chains. Presenting it like it's mystery tokens backed by nothing and printed up all willy-nilly is false. People may not like it because it's less decentralized or because it introduces forever risk as long as you hold the token (as long as you hold WBTC, you're forever hoping that there is no hack/exploit on the WBTC smart contracts) but it isn't just magic money that they're making up. There *is* a *there* there.
If Binance goes down, we're in some serious systemic trouble. Think 2008 bank crash but without government help. As a non-financial expert, I also wonder about how difficult it is to correctly assess all the crypto assets of an exchange considering the vast diversity of some products? Like they refer the difference between BTC and WBTC and others but I'm not sure I can gasp exactly all the implications here. Wouldn't it be nice to have some clearer insights as to what it means and how normal banking audits are usually conducted?
A lot of the time, this is used as a ‘honeypot’. You see a ton of Bitcoin in an account, but this account doesn’t actually exist. They said ‘Hey, add money to this account and you can send some out’, but you add money and they steal it through bots before you can make any other moves. If you’re viewing it on a website and it doesn’t give you a public key to verify it somewhere else, then they’re just tricking you into thinking that is real bitcoin. This happens a lot with Ethereum wallets because people want to pull a ERC-20 token from a wallet (Maybe WBTC) but it has 0 ETH for gas fee’s. You add $10 worth of Eth from your personal wallet to use as gas fee and their bot withdrawals it before you even notice it’s been deposited. If it’s too good to be true, it probably is and isn’t worth your time.
tldr; Wrapped tokens like Wrapped Bitcoin (WBTC) and Wrapped Ethereum (WETH) have been depegging in price from the underlying Bitcoin. There was never a risk of insolvency or a bank run on WETH. WBTC is backed by real Bitcoin, which, as mentioned above, is custodied by a firm called BitGo. *This summary is auto generated by a bot and not meant to replace reading the original article. As always, DYOR.*
tldr; Wrapped Bitcoin (WBTC) is the 23rd largest cryptocurrency, with a market cap of $3.5 billion. It runs on the leading blockchain for DeFi and NFTs, and is a token that is meant to represent Bitcoin. Since FTX blew up at the start of November, WBTC has traded at a discount to Bitcoin. *This summary is auto generated by a bot and not meant to replace reading the original article. As always, DYOR.*
>”WBTC hasn’t depegged significantly (~2% at its peak, which was quickly restored), until that happens it will still continue to function as a way to bring BTC into DeFi on Ethereum,” he said. “ Instead, I choose outrage. Emotions make you a stronger trader. My TA shows wBTC to $4K EOY.
Nope. I have an outstanding loan against WBTC and I pay 2.26% on USDC on Aave with 72% LTV. As long as market participants are rational and markets are efficient paying 13.9% doesn’t make any sense; it’s absolutely dumb. These rates are just out of this world. You need to be on drugs to believe that this is normal. Dude they can literally create an infinite number of Nexo borrowers wallet and move the money wherever they want. Celsius was doing the same exact thing. As a matter of fact Nexo even acknowledged that they actually trade with your funds! Where does this money come from? Deposits. People couldn’t even figure out that FTX had no cold wallets and that was shuffling billions of dollar to the sister company for years. This blockchain analysis portrayed on nexologist is pure nonsense.
TLDR: An inside joke about the “insolvency” of Wrapped Ethereum (wETH) over the weekend has forced influencers to explain it was just a “shitpost” after members of the community took it as real. Blockchain developer and contributor to the ERC-721A token standard “cygaar” was one of the first to spread the joke, before confirming in a subsequent post that it was in fact a “shitpost” to see who was reading his content. Gnosis co-founder Martin Köppelmann was another one to get in on the joke, claiming in a Nov. 27 Tweet to his 38,800 Twitter followers that wETH is no longer fully backed by ETH and that “we might see a bank run on redeeming WETH soon.” Hours later, he said he hoped the joke “did not cause too much confusion,” linking to a thread that explained the joke for those who weren't in the know. wETH’s logic is automated by smart contracts and it isn’t controlled by a centralized entity, he explained: “I am not too concerned about WETH as it's a smart contract and not stored by a centralized exchange. Since the smart contract is open source, it can be checked for bugs or flaws.” On the other hand, recent FUD against Wrapped Bitcoin (wBTC) could be warranted, said Thielen, referring to rumors that FTX may have printed 100,000 wBTC out of thin air, as FTX’s Nov. 11 bankruptcy filing does not show any BTC on FTX’s balance sheet. “WBTC is completely different and here the concerns are valid,” Despite the lighthearted humor behind the jokes, “Dankrad Feist” suggested to his 15,500 Twitter followers in a Nov. 27 Tweet that the comments should be marked “more clearly as jokes” as it “may not be obvious to outsiders.” 'Please be aware it may not be obvious to outsiders that it's completely different from bridged assets and there is literally almost zero risk. I think it would be better to mark these more clearly as jokes.' — Dankrad Feist (@dankrad) November 27, 2022 wETH is currently priced at $1,196, at a current ratio of 0.999:1 to ETH, according to data from Coinmarketcap.
This is just too much hassle for a very small gain (; Don't forget that it is much better to do 5% 3 times than 1% 3 times <: You also ignore the network fees in your numbers. It costs 0.00013 WBTC to do a withdrawal from Kraken (as an example), then you would have to do one transfer to coinlist on Ethereum network - that's a few dollars too (obviously you could do a direct withdrawal from one CEX to another, but this in itself is also slightly bit riskier). It doesn't make much difference if your arbing capital is 1 M$, but for us smaller folks (way less than 1 BTC (; ) it does. I have a soft-rule that I'm (usually) not engaging into anything which costs more than 1% of potential profit, especially if it requires my time and attention. Anyway - during the last few hours some people did in fact arb it a little closer to the peg, because during that time the price increased from 0.983 to 0.991
>Aave, the protocol is quite secure and even with ONE bridge meltdown, it operated as expected. Well, this part is not entirely true. The main issue is that AAVE has used oracle prices for non-bridged assets for bridged assets, so they take the price of ERC-20 USDT and WBTC and consider that to be the value of Harmony-bridged things like 1USDT and 1WBTC. The market value of Harmony-bridged assets dropped 70-90% right after the hack, but AAVE up to this day still considers them pegged 1:1 to their non-bridged tokens. This was quickly exploited by people looking to cover their losses and looking for an exit, where they would provide their (almost worthless) bridged tokens and borrow (not-so-worthless) ONE. You could say this is technically harder to have real market prices from oracles for bridged assets, but nevertheless, this is the real issue here and the item where AAVE has in fact failed. This is not much different from hard-coding value of a stablecoin to be 1$ (Scream@Fantom?), because this was neither the first, nor the last bridge hack which resulted in a loss of peg.
It's supposedly small risk, but even if it would be 0% risky, why waste your energy (and gas fees!) on 1-2%, when you can wait for 5%? If you have 1M$ then maybe 1-2% of that is more tempting, but for small investors what's the point of all the hassle for an absolute gain in the range around 100$ (given that the fees for moving WBTC around can probably take 10 or 20% of that potential gain)? The arbing mechanism is in the form of one "CEX" where you can redeem WBTC for BTC at a 1:1 ratio with 0.3% fee (another reason to wait for a bigger dip), but I have forgotten the name right now - it was mentioned in the comments here, coinlist? The risk is mainly because it seems that this website is having some issues with unwrapping right now, but the only proof are some tweets from random anons, so it's hard to say how legit they are.
Because in the UK you can harvest CGT allowance by swapping to WBTC, holding it for 30 days and then swapping it back. It's a way to legally never pay any be CGT on £12300/year. It's useful for tax avoidance, not tax evasion.
WBTC said they are changing multisig today, bc they had 11/18 and many of those are lost or innactive so getting 11 to sign each time its a very slow process (more if some of them cannot sign anymore). I guess that when this change is done and redemptions can be made faster, the peg will return to normal. For STETH isnt meant to be 1:1 , it can change so that one its ok if it fluctuates.
This is awesome and so future-minded! I love it! I wish my parents did this when I was child. Instead, I either got clothes or food. Get a cold wallet and store BTC and ETH. About staking, while a good idea, you would have to remain vigilant on the platforms they are on until you hand over the keys to them. The problem is, how long will those platforms be around? So, I probably wouldn’t stake if I just wanted to buy and forget. If you choose to stake, then research a very reputable DeFi platform for staking your ETH. You could look into WBTC if you want to stake BTC. If you choose a CEX, then consider Kraken as they will be creating a crypto bank. Could prove beneficial.
stETH has been facing issues since the LUNA collapse. stETH was the reason Celcius went bankrupt. Don't use stETH, WBTC and other wrapped tokens which are taken care by a single entity. stETH is not ETH and WBTC is not BTC. They are just IOUs. You lose everything if the supplying institutions fail. BE SAFE.
Two things: * It's Bankless, so "shitcoin" includes literally any token that isn't on Ethereum. BTC is included unless it's WBTC on Ethereum. * Defi is like the opposite of a ponzi. The more people get in, the lower yields go. You generally want to get in and then have nobody else enter the pool and have everyone else exit it and have it just be you.
The point is to crystallize the loss. Down $5k on BTC? Sell it and buy Eth. Crystallized $5k loss to carry forward to offset gains. 30 days later if Eth is down, sell again for another loss and buy BTC. Now you’re in approximately the original position but have loss carry forward to offset future taxes. Obviously you have to research and find good comparable and manage the timing. But sure what the verdict would be on buying something like WBTC from Eth from BTC.
Can I be the first to mention that J.P. Morgan, [according to Forbes on October 18, 2022](https://web.archive.org/web/20221018171031/https://www.forbes.com/sites/charliefink/2022/10/18/tilia-secures-strategic-investment-from-jp-morgan-spins-out-of-linden-lab/?sh=139db0d35fb2) had just invested into Second Life's "Tilia" which handled Second Life's $650 Million virtual economy in-game and on/off fiat ramps. Linden Labs spun it off ad J.P. jumped in to invest in it. If you're wondering why they are a month ahead of this FTX collapse, it's because Tilia was part of the 50 state licensed and legal on-ramping and off-ramping of USD into the "Virtual World" we've heard so much poking fun over lately with Meta's Horizon Worlds etc. In other words, J.P. Morgan put financing into a stake of a spun-off code that was already in use by Linden Lab's in Second Life and they will probably make "metaverse and Web3 gaming with crypto tokens" the preferred way to on and off ramp for whatever you want in the game whether that "game" has MATIC or WBTC in it or MANA or whatever but you can always dApp those in and out as well with your own locally held keys without ever entering a walled garden that can "Freeze" your withdrawals just because someone cheated and someone else broke down in the chain somewhere. Hence = contagion. Cheating isn't possible in these worlds. They see if the person providing the tokens or crypto have what you request, and you send payment only once an automated contract (sort of like Atomic Transactions) says for some period of time the order is good to go on both sides (Transek is like this too). ​ >Linden Lab announced the spin off of its proprietary finance engine Tilia this morning. Tilia’s solution, built for game, virtual world and mobile application developers handles payment processing, in-game transactions, as well as payouts to creators by converting in-world tokens to fiat currency including USD serving as the backbone of any functioning virtual economy. > >Tilia has been running Second Life’s $650 million dollar economy for the past seven years. Financing for the new company is coming from their strategic partner, JP Morgan. “It's very important virtual worlds have the instantaneous settlement Tilia provides,” said Brad Oberwager, Executive Chairman of Tilia, and acting CEO of Linden Lab. “We can handle very high transaction volume at very low dollar amount that even with USDC, the systems aren't built for that kind of stuff. We move one 250th of a dollar sometimes.” In addition to the investment, Tilia is also working with J.P. Morgan Payments to increase payout methods and expand the number of pay-out currencies. Perhaps most importantly, partnering with the world’s largest bank will enable Tilia to scale to the potential size of the putative Metaverse. Drew Soinski, Senior Payments Executive, Managing Director, J.P. Morgan Payments, will join Tilia’s board. Some of the above quotes come from the Forbes article. This is a proprietary part of the Second Life game and nothing else until the J.P. Morgan investment and the announcement it would be working to add more options to its off-ramp with J.P. The odd part is Tilia (which is in Second Life - a metaverse or just a game to some) comes with a Money Transmitter License in the United States and is compliant internationally to make fiat payments nearly everywhere... ​ >One of the most interesting things about Tilia is that it’s registered as a money transmitter and its user accounts are compliant with state, federal and international regulations. Importantly, Tilia is the only token based virtual payment system that easily and securely converts in-game tokens into fiat currency, wherever the user resides. The partnership with JP Morgan assures a payout in fiat currency pretty much anywhere credit cards work. I have to do more digging, but I believe what JP is after is the sales of proprietary, but non-custodial and US licensed, compliant software that they get a nice flow of profit from as this is literally why the FTX thing was set up in the first place - to scare you - or aware you - of the importance of fiat gateways/fiat exits that are based on code and not capable of stealing/"trading"/"donating" your money as SBF has. To me, everything is a game. So seeing this type of setup isn't exactly surprising nor am I upset. Everyone missed this because in October we were just bumbling along with the usual headlines. The US elections. Probably explains why the twitter handle for "Tilia Pay" only had 450 followers when I checked them out this week. Remember Forbes gave SBF his "net worth" $25.6 Bn in January. Apparently that's good enough for the smartest VC's and investment bankers in the world to hand over money. *Or perhaps it was just a game after all.*