Terra (LUNA2) reversed a portion of the losses this June 9 as its price per token rose by as much as 67.5% on the day, catching many traders off-guard with their perpetual swap positions. LUNA2 traders are shorting it In detail, LUNA2's price soared from $2 to as high as $3.58. The volatile intraday move coincided with the liquidation of nearly $4 million worth of LUNA2 trades on Binance and Bybit, including $2.46 million worth of short positions, data from Coinglass shows. Interestingly, LUNA2's funding rates across Binance and Bybit remained negative, suggesting that traders are still short despite the …

The next big crypto crash could be around the corner due to Lido Staked Ether (stETH), a liquid token from the Lido protocol that is supposed to be 100% pegged by Ethereum’s native token, Ether (ETH). Notably, the stETH peg could drop against ETH by 50% in the coming weeks, raising the risk of a “DeFi contagion” as Ethereum moves toward proof-of-stake (PoS), argues popular Bitcoin investor and independent analyst Brad Mills. Over 1M Ether liability risks default In detail, investors deposit ETH in Lido’s smart contracts to participate in The Merge, a network upgrade aiming to make Ethereum a …

Last summer, Polkadot made its own little bit of history after confirming the first five projects to occupy parachain slots on its canary network Kusama. Disparate blockchains that bolt onto Polkadot’s main Relay Chain for security, yet are otherwise independent, parachains represent a new way of doing business in blockchain, a maximalist vision aimed at enhancing scalability and governance while permitting the possibility of forkless upgrades. The five projects were Karura, Moonriver, Shiden, Khala and Bifrost. Fast-forward to today, and the first batch of parachains are set to expire, releasing over 1 million locked Kusama (KSM) tokens into the market. …

The CEO of crypto lending and staking platform Celsius Alex Mashinsky believes “the Sharks of Wall Street” can smell blood in the water and are causing instability at several crypto projects. Mashinsky attributes recent Celsius (CEL) price falls, the brief Tether (USDT) depegging and collapse of Terra (LUNA) — at least in part — to short sellers on Wall Street. CEL has fallen from its all-time high of $8.05 to $0.82, which is a 90% drop. In a Twitter Spaces event on Tuesday, some Celsius users claimed that the platform liquidated their holdings as CEL dropped. They said trading was …

The seemingly endless freefall of Terra (LUNA) affected two decentralized finance (DeFi) protocols due to a price discrepancy, as the Chainlink price feed for LUNA gets suspended over extreme market conditions. Avalanche-based liquidity protocol Blizz Finance reported that as the price of LUNA was stuck at $0.10, attackers were able to deposit millions of LUNA to “borrow all the collateral.” As a result, Blizz Finance mentioned that its protocol was drained before its team could pause. The team apologized to those who were affected. We have built on the AVAX ecosystem in good faith with the expectation that @chainlink oracles …

Bancor, the first decentralized finance protocol to introduce liquidity pools, has come out with a new liquidity solution with the launch of its v3, called Bancor 3. Bancor 3 went live with a promise to offer protection against impermanent loss to liquidity providers. The new architectural changes promise to bring sustainable on-chain liquidity and make decentralized finance (DeFi) staking simpler for decentralized autonomous organizations (DAOs). The v3 project has attracted more than 30 projects and tokens — including Polygon’s MATIC, Synthetix Network Token (SNX), Yearn.finance’s YFI, Brave’s Basic Attention Token (BAT), Flexa’s AMP and Enjin Coin (ENJ) — and several …

In mid-February 2020, the total value locked within decentralized finance (DeFi) applications first exceeded $1 billion. Fueled by the DeFi summer of 2020, it wouldn’t even take a year before it multiplied 20-fold to reach $20 billion and only another ten months to reach $200 billion. Given the pace of growth so far, it doesn’t seem outlandish to imagine the DeFi markets hitting a trillion dollars within another year or two. We can attribute this monumental growth to one thing — liquidity. Looking back, DeFi’s expansion can be defined in three eras, each representing another significant development in removing barriers …

How to avoid impermanent loss? Liquidity providers cannot avoid impermanent loss completely. However, they can use some measures to mitigate this risk such as using stablecoin pairs and avoiding volatile pairs. One strategy to avoid temporary loss is to choose stablecoin pairs that offer the best bet against IL since their value does not move much; they also have fewer arbitrage opportunities, lowering the risks. Liquidity providers using stablecoin pairs, on the other hand, are unable to gain from the bullish crypto market. Choose pairs that do not expose liquidity to market instability and temporary loss rather than cryptos with …

Decentralized exchange (DEX) protocols have become a key part of the decentralized finance (DeFi) ecosystem where liquidity and liquidity providers play a pivotal role in keeping the vastly growing space moving. While DEX protocols have seen billions in daily trading volume, the liquidity market is making a gradual shift from traditional liquidity methods toward concentrated liquidity. Earlier liquidity was distributed uniformly along the price curve between zero and infinity while in the new system liquidity is allocated within a custom price range. For example, In the case of a stablecoin/stablecoin pair, a liquidity provider (LP) can decide to allocate capital …

Near Protocol (NEAR) has rallied by almost 30% after announcing on April 6 that it had raised $350 million in a funding round led by Tiger Global, a New York-based hedge fund. NEAR price eyes 100% price rally NEAR's price reached over $19.75, just about 2.5% below its all-time high. However, many analysts agreed with the potential for the NEAR/USD pair to reclaim its best level to date, and even rise above it in the coming weeks. Adoption remained the key focus behind the bullish predictions. For instance, Zoran Cole, the founder of the popular Telegram group Crypto Insiders highlighted …

Ethereum's native token Ether (ETH) rose above $3,000 on March 22 as fresh data suggests Three Arrows Capital staked at least $110 million worth of ETH into Lido's liquidity pools. The Singapore-based hedge fund manager provided liquidity worth 36,401 ETH to Lido's "Curve stETH pool" using a third-party Ether wallet, data from Etherscan shows. As a result, it became eligible to receive at least 36,401 stacked Ether (stETH) tokens from Lido: To ensure low slippage when un-staking those tokens for real ETH plus staking reward. Almost an hour later, another Ether address, marked with the word "fund," sent 6,993 ETH …

The layer-one (L1) ecosystem has received increased attention in recent months as users search for new investment opportunities in the Cosmos (ATOM), Fantom (FTM) and NEAR. Following January's market sell-off, where Bitcoin (BTC) price dropped to bottom below $34,000, much of the L1 field has struggled to regain its momentum. According to data from Delphi Digital, since the BTC bottom on Jan. 24, the only L1 to experience a notable gain in price include Terra (LUNA), Avalanche (AVAX) and Ethereum (ETH). Terra ecosystem growth The price growth seen in LUNA was in large part due to the announcement from the …