2021-09-03 16:28:05
CoinSutra Daily Recap - Friday, September 3, 2021
Here are the most important news updates for the day -
SushiSwap
unveils website for its yet-to-launch Shoyu NFT platform
The website for SushiSwap's forthcoming non-fungible token (NFT) platform, Shoyu, is now live.
The team behind Shoyu posted a tiktok today teasing, "In a desert of NFTs, an oasis is emerging," with desert-themed images leading to the Shoyu domain name. The site shoyunft.com now displays a page promising that "creative commerce reimagined" is coming soon. Project leader LexV also tweeted a link to the website today.
Two months ago, LevX, a former Sushi contributor, proposed the idea of an NFT platform with a frontend, caching layer and infrastructure for art storage powered by Sushi. The platform would provide similar services to existing NFT marketplaces like SuperRare and OpenSea.
Lido
Dominates Booming Market for Ethereum 2.0 Staking Derivatives
One of the hottest new ways to invest in ethereum is to lock money into a future, upgraded version of the Ethereum blockchain that’s already running in parallel, known as the Beacon Chain. The process is called “staking.” Investors put ether (ETH) into the Beacon Chain and can reap annualized yields in excess of 5%.
While that’s significantly higher than returns offered by most traditional bank accounts and U.S. Treasury bonds, the problem is that in some cases investors may not be able to “unstake” their tokens – get them back – for a year or more. For instance, the Beacon Chain won’t allow withdrawals until after Ethereum’s transition to a proof-of-stake blockchain from the more energy-intensive proof-of-work is complete.
While centralized staking facilitates quick access and high liquidity, it comes with the risk of severe “slashing penalties” and reduced overall rewards. An Ethereum validator who engages in malicious behavior receives a slashing penalty and loses a significant amount of ether staked. Violators can also be forcibly removed from the network.
That risk is mitigated with Lido, which has several validators. “Nine active node operators [validators] are currently staking ETH on behalf of Lido, and five more have been on-boarded just recently,” the protocol’s tech lead, Vasiliy Shapovalov, told CoinDesk last week. So, even if one validator is identified as malicious, the resulting loss due to the slashing penalty is far less than what would be with a centralized exchange.
SEC is investigating decentralized crypto exchange developer Uniswap Labs
The U.S. Securities and Exchange Commission (SEC) is reportedly investigating Uniswap Labs, the startup behind the largest decentralized cryptocurrency exchange.
The Wall Street Journal reported the news on Friday, citing "people familiar with the matter." Enforcement attorneys are said to be seeking information about how investors use Uniswap and how it is marketed.
Last month, SEC chairman Gary Gensler said that the agency could regulate decentralized finance (DeFi) projects. Specifically, DeFi projects that reward participants with valuable tokens or similar incentives could be regulated, no matter how "decentralized" they say they are, Gensler said at the time.
South African Financial Watchdog Issues Warning Against Binance Group
The Financial Sector Conduct Authority (FSCA), the South African financial watchdog has joined the long list of regulators to issue a warning against the Binance crypto exchange. In a public notice dated September 3, the FSCA called for caution among traders when dealing with the crypto entity as it has not been authorized by them to offer any services.
The warning from FSCA comes just a day after Singapore’s regulatory watchdog MAS put Binance.com on the investor alert list. Now more than a dozen countries have issued some form of regulatory warning against the world’s leading crypto exchange. It all started with Japan’s FSA and was later joined on by the likes of Thailand, the UK, the Cayman Islands, Hong Kong, Italy, and few others.
222 viewsDigant Chadha, 13:28
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