DeFi: It's Not a Trick It's an Illusion

Good morning. Today we've got a new crypto data oracle, a critical report from the BIS, an update on the BitMart hack, and more! Don't forget to share with friends and family!

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A "Top 5" of crypto, digital asset, and other blockchain related news sent to your inbox on a daily basis

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Top 5:

1. Why the World’s Biggest Traders Are Betting on Blockchain Data
   A new oracle service on the Solana blockchain aims to undercut rivals in both the TradFi and DeFi spaces. Pyth, as the oracle is known, feeds external data into smart contracts so that the c0ntracts can execute on their given parameters. For example, if a borrower took out a loan in stablecoins on a DeFi lending platform they would be required to post collateral. Often this collateral comes in the form of cryptocurrencies which have notoriously volatile market values. The loan would be governed by a smart contract that would liquidate the collateral if it's value fell below a certain price. Pyth would be the data oracle feeding those collateral prices into the smart contract from external markets. Where Pyth stands out is in its speed and supporters. First, the the speed of the Solana blockchain allows it to update prices every four tenths of a second compared to rivals on the Ethereum blockchain which can take up to 15 seconds to update. Second, the firms backing Pyth are seasoned trading firms like Jump Capital, Jane Street Capital, and Susquehanna International. Some view this as an opportunity to go after the the traditional players in the financial data space like Bloomberg, Nasdaq, and the NYSE.
   
2. DeFi’s Decentralization Is an Illusion: BIS Quarterly Review
   The Bank for International Settlements (BIS) says "DeFi, more like CeFi" in their latest quarterly review indicating that "decentralized" finance may be more centralized than we realize. According to the report, decision making power in DeFi protocols runs the risk of being concentrated in a small group of large investors which can facilitate collusion and heighten the risk that a small number of investors can alter the protocol for their own gain at the expense of other investors. The review recommends decentralized autonomous organizations (DAOs) as a natural entry point for regulators and policymakers to enter the decentralized finance space as DAOs frequently act as the governing body of DeFi protocols.
   
3. Bitcoin is Green?
   There's been lot's of FUD published over the last year about the Bitcoin network's energy consumption. According to the Bitcoin Mining Council's Q3 report it appears that the mining industry is making strides to utilize more green energy which is needed to maintain a viable network moving forward.

4. BitMart says it will compensate victims of $196 million hack and restore trading by Tuesday
BitMart will reimburse its users that lost money in the hack of their platform to the tune of $196 million of the firm's own money. Bitmart expects to have their deposit and withdrawal functions come online gradually starting today. Another hack last week saw decentralized finance platform BadgerDAO lose $120 million.

5. Craig Wright Found Not Liable for Breach of Kleiman Business Partnership
Craig Wright, the Australian who claims to have invented Bitcoin, was cleared of charges related to a breach of contract dispute with the estate of his one-time business partner, Dave Kleiman. The estate of the now deceased Mr. Kleiman claimed that the two men worked on the Bitcoin whitepaper together and that the estate was entitled to a portion of estimated 1.1 million BTC the partnership would own if they are indeed the pseudonymous creators of Bitcoin. Now that Craig Wright is cleared, he would theoretically be the sole owner of that bitcoin, but most in the community are skeptical as none of the coins initially mined by Satoshi have moved in over a decade.

Top Sharers of the Crypto Top 5:
1. Cameron S. - New York, NY
2. Jake Y. - Greenville, SC
3. Lauren A. - Nashville, TN

Disclaimer: The information contained in this newsletter shall not be understood or construed as financial advice. I am not an attorney, accountant or financial advisor, nor am I holding myself out to be, and the information provided is not a substitute for financial advice from a professional who is aware of the facts and circumstances of your individual situation.