This Valentine’s Day, let’s talk about DEX baby!

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Symbiosis

The major­i­ty of cryp­to enthu­si­asts will agree–with cryp­tocur­ren­cies hit­ting the main­stream, the moon could be the lim­it for the prices of some of the most wide­ly adopt­ed assets, such as Bit­coin

How­ev­er, main­stream adop­tion is not only imply­ing broad­er demand and high­er prices–it also expands the mar­ket­ing play­field for cryp­to plat­forms that are ven­tur­ing into new demographics.

Attract­ing floods of new­bies while keep­ing old users implies step­ping up the game when it comes to mar­ket­ing cam­paigns and there’s no time like hol­i­days to shine and gain some attention.

Crypto lovers on Valentine’s day

While the Nation­al Retail Fed­er­a­tion pro­ject­ed Amer­i­can shop­pers to spend $23.9 bil­lion on the most roman­tic hol­i­day this year, a recent Self sur­vey, uncov­ered that rough­ly 4% of all Valentine’s Day gifts may end up being cryptocurrencies. 

Accord­ing to the fin­tech com­pa­ny, in the name of love, Amer­i­cans alone are pro­ject­ed to pour around $1 bil­lion into the cryp­to mar­ket this Valen­tines day.

Last year on Feb­ru­ary 14, the price of Bit­coin was at around $48K, and today, exact­ly a year lat­er, the largest cryp­tocur­ren­cy by mar­ket cap is trad­ing around $42K–down 12% year-to-year. 

After begin­ning the year above $47K, the price of Bit­coin lost more than a quar­ter of its val­ue as Jan­u­ary unrav­eled, and the cryp­tocur­ren­cy revis­it­ed the $33K territory.

As Feb­ru­ary took off, the price pumped 18% and man­aged to break the psy­cho­log­i­cal lev­el– trad­ing north of $45K last week, how­ev­er, Valentine’s Day shop­pers weren’t enough to sup­port the upward trend.

Still, this Sat­ur­day saw the high­est num­ber of active address­es (1.08M) record­ed in 2022, point­ed out San­ti­ment on Twitter. 

Accord­ing to cryp­to ana­lyt­ics firms, “the uptick in par­tic­i­pants trans­act­ing on the Bit­coin net­work is a nice sign of increased util­i­ty, a pre­de­ces­sor to price rises.”

It’s maybe far-fetched to say this could be con­nect­ed to Valentine’s Day shop­pers, but one thing is certain–as main­stream adop­tion con­tin­ues unrav­el­ing, major hol­i­days stand to make big­ger marks on cryp­to price charts. 

Let’s talk about DEX

Talk­ing about price volatil­i­ty brings us to DeFi. Often over­looked by new­com­ers swayed by high yield oppor­tu­ni­ties, imper­ma­nent loss is a major risk that accom­pa­nies pro­vid­ing liq­uid­i­ty to dual-asset pools in DeFi protocols.

Dur­ing the past year, blockchain games and NFTs sur­passed the DeFi sec­tor which explod­ed in 2020. 

How­ev­er, the sec­tor which was just a niche before the infa­mous DeFi Sum­mer is con­tin­u­ous­ly being rein­vent­ed by new pro­to­cols, as well as some of the vet­er­ans from the 2017 ICO mania.

Launched five years ago, Ban­cor is def­i­nite­ly one of the major DeFi players–defining trends from the get go–including intro­duc­ing the first auto­mat­ed mar­ket mak­er (AMM) in 2017.

So, let’s talk about all the good things, such as yield returns, and all the bad things, pri­mar­i­ly imper­ma­nent loss, liq­uid­i­ty providers (LPs) are nav­i­gat­ing through. 

Respon­si­ble for wip­ing out bil­lions in cryp­to gains year­ly, imper­ma­nent loss implies a loss of funds expe­ri­enced by LPs because of volatil­i­ty in a trad­ing pair.

This Valentine’s Day, Ban­cor announced drop­ping its first NFT col­lec­tion, “DEXLoverz” Con­dom NFTs, to high­light imper­ma­nent loss protection.

Mint­ed on Poly­gon, the col­lec­tion fea­tures 1,500 NFTs with vary­ing lev­els of rare attributes. 

“Stak­ing in DeFi liq­uid­i­ty pools is not a pas­sive income strat­e­gy. It is a risky trad­ing strat­e­gy that can lead to heavy loss­es. Ban­cor is the only DEX offer­ing token hold­ers and DAOs real pas­sive income through its nov­el Imper­ma­nent Loss pro­tec­tion mod­el. The DEXLoverz col­lec­tion aims to bring aware­ness of Imper­ma­nent Loss to DeFi users and remind them there’s a safe way to stake at Ban­cor,” explained Nate Hind­man, Head of Growth at Bancor.

The protocol’s “Safe Stak­ing” solu­tion offers sin­gle-sided liq­uid­i­ty and 100% imper­ma­nent loss protection–enabling LPs to earn high­er yield with less risk. 

Accord­ing to the announce­ment, in 2021 alone, with APRs up to 60%, LPs earned over $250 mil­lion on Ban­cor in tokens like ETH, WBTC, LINK, MATIC, SNX and more.

Air­dropped on Valentine’s Day as a sur­prise, the con­dom NFTs are intend­ed to urge LPs to pro­tect the tokens they love and prac­tice safe DEX–with recip­i­ents includ­ing active users in Bancor’s DAO, as well as users who have suf­fered extreme cas­es of imper­ma­nent loss among pop­u­lar AMMs like Uniswap, Sushiswap, and Balancer. 

Chances are some of those Valentine’s Day cryp­to gifts are going to end up in liq­uid­i­ty pools. Just say­ing… 

Everdome

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