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MXC Exchange Brings Impermanent Loss Compensation for DeFi Mining

Published

3 Monaten ago

Oktober 9, 2020

The MXC Exchange presents the first-of-its-kind liquidity mining product EQL that offers a loss compensation facility to users for staking their investments in the DeFi space. This product will set a new precedence for offering merit-oriented investment services to DeFi market investors.

On Wednesday, October 7, the world’s leading digital assets trading platform MXC Exchange announced its new DeFi mining product in the market. In an industry-first move, the EQL DeFi mining product by MXC offers impermanent loss compensation for all its users.

MXC Exchange notes its new product will help in pushing innovation in the DeFi space which is still in its nascent stage. The DeFi market popularity surged massively during the summer of 2020 with DeFi tokens skyrocketing to new highs. The DeFi market, which is currently underway through a major correction, remained a top choice of investors. Some of the projects in decentralized finance (DeFi) bring very promising use-cases to the future of the financial world.

The MXC Exchange also sees a massive potential and merit in the DeFi space. Its EQL DeFi mining product received an overwhelming market response clocking 1,000 ETH hard cap within 30 seconds. MXC Exchange notes that its unique offering of impermanent loss compensation fueled investors’ interest. It shows that Ethereum still remains the primary base for DeFi products and services. MXC Exchange Global Operations Director Alex adds:

“The launch of EQL DeFi mining is something we have been working on behind the scenes for a while. We are especially proud to become the first to offer impermanent loss compensation to all of our participating users, which can bring our users unprecedented peace of mind while engaging in DeFi-related activities. At MXC, we will continue to provide valuable services and products related to decentralized finance over the coming months.”

Understanding EQL Liquidity Mining and Loss Compensation

All ETH holders can participate in EQL liquidity mining by locking the ETH in smart contracts. The base standard is 0.05 ETH while the hard cap is 1,000 ETH. Also, the minimum locking period is only 5 days and the token unlock automatically after the maturity period. Users can expect an annual yield of 100% with a minimum threshold of 20% with yield returns either in EQL or ETH assets.

The major value proposition of the EQL DeFi mining product is its handling of minimizing the losses. In case the project suffers a significant drop in value, investors won’t lose their initial funds. Here, the MXC Exchange will use its standby fund to offset the profits and even cover any outstanding losses. It is for the first time that any cryptocurrency exchange is offering this service and such a high layer of security to investors.

The MXC Exchange is confident that with the successful launch of its EQL DeFi product, the demand for impermanent loss compensation will gather steam in the DeFi markets. It noted:

“Exchanges need to push the boundaries of integrating or creating decentralized finance solutions. EQL serves as an interesting example of what can be achieved in this relatively new industry”.

The MXC Exchange started in April 2018 as a digital assets trading platform. In the last two years, it has established a strong footprint in services like margin trading, spot trading, derivatives trading, leveraged ETFs, and staking services.

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Bhushan is a FinTech enthusiast and holds a good flair in understanding financial markets. His interest in economics and finance draw his attention towards the new emerging Blockchain Technology and Cryptocurrency markets. He is continuously in a learning process and keeps himself motivated by sharing his acquired knowledge. In free time he reads thriller fictions novels and sometimes explore his culinary skills.

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Related Topics:brings Compensation DeFi Exchange Impermanent loss Mining MXC

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Grayscale’s AUM Hits $19B, Up from $16.4B Announced Week Ago

Published

37 Minuten ago

Dezember 29, 2020

While it may be too early to project the possible performance of Grayscale in 2021, the spate of patronage the company recorded in the last two quarters of 2020 looks quite inspiring.

In what confirms the continued embrace of Bitcoin (BTC) and altcoins by institutional investors and the big-money clients, Grayscale’s total Assets Under Management (AUM) has been reported to top $19 billion, a significant uplift from the $16.4 billion reported a week ago. According to a report by CoinDesk, Grayscale hit this AUM milestone on December 28, and Grayscale’s Bitcoin Trust holds by far the largest chunk of the total assets at $16.3 billion.

The recent rally of Bitcoin to new highs as recorded in the past days started as a chain reaction that took its precedent months ago when Wall Street firms and institutional investors began betting big on Bitcoin. The investment made by the likes of MicroStrategy Incorporated (NASDAQ: MSTR), Square Inc (NYSE: SQ), and PayPal Holdings Inc (NASDAQ: PYPL) did not just help put Bitcoin in the limelight through mainstream media, it also prompted the embrace of the digital assets by other firms.

With this chain reaction, the price of Bitcoin continued to soar in response to boosted demand for the coin, and institutions like Grayscale that serves institutional investors benefited from this new demand, and hence, the continued increase in the firm’s AUM. Besides BTC, Grayscale’s Ethereum (ETH) AUM is now worth $2.1 billion, while the bulk of smaller holdings in Litecoin (LTC), XRP, and ZCash amongst others helped Grayscale’s total AUM to reach the new milestone.

Grayscale’s AUM May See More Boost in 2021

While it may be too early to project the possible performance of Grayscale in the coming year 2021, the spate of patronage the company recorded in the last two quarters of 2020 makes the case for improved performance provided the tempo is sustained.

Just as has been noted earlier, the continued embrace of cryptocurrency assets by highly liquid companies will continue to have a positive reaction on the price of Bitcoin, and by extension, this will even make more people pick interest in BTC. As a relatively young asset class, Bitcoin and altcoins have tremendous room to grow as the adoption rate is still not optimized owing to certain regulatory provisions in most countries, Grayscale and other hedge funds have enough room to compete for new clients entering the space.

With Grayscale been among the institutions at the forefront of helping to drive the acceptance of BTC, ETH, and other digital currencies, enjoying the dividends of its works through impressed AUM figures does not come as much of a surprise.

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Benjamin Godfrey is a blockchain enthusiast and journalists who relish writing about the real life applications of blockchain technology and innovations to drive general acceptance and worldwide integration of the emerging technology. His desires to educate people about cryptocurrencies inspires his contributions to renowned blockchain based media and sites. Benjamin Godfrey is a lover of sports and agriculture.

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Market

eToro Said to Be in Talks With Goldman About Possible $5B IPO: Report

Published

1 Stunde ago

Dezember 29, 2020

The crypto trading/investment management platform is also considering the possibility of a merger with a special purpose acquisition company.

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Altcoin Rally Dimming Bitcoin’s Shine, Polkadot Gains 34% in One Week

Published

2 Stunden ago

Dezember 29, 2020

Polkadot (DOT) saw daily gains of 22.5% wrapping up an impressive week with an almost 34% rise in its value.

Bitcoin bullish run looks to have come to a halt amidst an altcoin rally which has seen relatively lower coins put up impressive performances in the past few weeks. Bitcoin dominance is gradually fading as many experts believe the biggest digital coin is backing down as some top altcoin are showing strong “moves” or signals.

Bitcoin hit an all-time high over the weekend, the third time its price has done so in just over 2 months. The price of the biggest digital coin touched $28,400 on December 27, before a lightning drop took it to $27,000 just hours of that incredible feat.

Bitcoin failed to hold onto the $27,000 mark as its price further dropped to $26,000 a day after and is now testing lower levels centered on $26,000 as immediate support. Reports from crypto exchanges revealed BTC/USD trading at lows of $25,830 during the early hours of December 29.

While Bitcoin has seen red over a couple of days, some altcoins are putting up impressive numbers, giving off signals of a strong altcoin rally. Despite XRP’s current issues, the altcoin market is showing glimpses of its glory days as some digital coins are poised to see major gains over the next couple of weeks. Ethereum (ETH) is at the forefront of the rally, with its price climbing above $700 for the first time since May 2018.

Polkadot (DOT) also saw daily gains of 22.5% wrapping up an impressive week with an almost 34% rise in its value. The coin is now the seventh-largest token by market cap. Kusama (KSM), a cousin of Polkadot, also saw its price gain 46% last week, pushing its price from $43.1 to $63. The digital token is currently trading at $56 but experts are adamant a breakout above $65 is possible as the token has rebounded off the 20-day exponential moving average ($50.90)

Speaking on the possibility of a long term altcoin rally, analyst Van de Poppe stated that altcoins are next in line to see greens. He added that the next “impulse wave” on Bitcoin next year should be able to take the market to $40,000 or $50,000, but until then, the possibility of a continuance altcoin rally is very much likely.

Although many factors could be in play with regards to the latest Bitcoin price dip, it’s recent fallout with Ripple’s XRP leads the way. Ripple was hit with a lawsuit from the United States Security and Exchange Commission (SEC) and subsequently suffered drops that left its price in a pit. XRP, the fourth-largest cryptocurrency by market cap, is now trading at $0.20 as news broke that Coinbase, a major US cryptocurrency exchange has decided to suspend its trading from next month.

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Crypto fanatic, writer and researcher. Thinks that Blockchain is second to a digital camera on the list of greatest inventions.

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