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What is Lithium Finance?

Lithium is a protocol that harnesses the DMI mechanism to gather accurate information from data source in order to discover prices for illiquid assets. Several new blockchain projects are developed each day, which means that are tons of early stage projects that have no pricing information available, making it very difficult to accurately determine the […]

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Lithium is a protocol that harnesses the DMI mechanism to gather accurate information from data source in order to discover prices for illiquid assets.

Several new blockchain projects are developed each day, which means that are tons of early stage projects that have no pricing information available, making it very difficult to accurately determine the price of a token for a project that has not been officially launched or revealed to the public. Moreover, the pricing info for private companies is not accessible.

The Lithium project aims to determine an accurate price for these new projects. While the price of an illiquid asset may not be predicted accurately, the framework of the Lithium protocol ensures that price predictions are almost perfect.

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Background

The project is backed by entrepreneurs who have vast experience in blockchain technology. The CEO of Lithium Finance is Adrian Lai, whose vision is to develop a protocol that uses Determinant-based Mutual Information (DMI) to reveal vital pricing information without gaining access to the real truth.

The co-founder of the company is Steve Derezinski, a blockchain developer and entrepreneur.

Collectively, the company has raised a sum of $5 million in seed funding. The funding was led by Hashed, a venture capital firm. Several other big names in the crypto ecosystem also joined hands in raising the seed funds. OKEx Ventures, Huobi Ventures, Genesis Block Ventures and LongHash Ventures all contributed to the funding round.

What is Lithium?

Lithium is a protocol that harnesses the DMI mechanism to gather accurate information from data sources. The goal is to discover prices for illiquid assets. To achieve this, multiple participants are questioned to find a dominant truth. The questions are multiple-choice questions and are subjective.

One of the major constraints of DeFi protocols is the lack of pricing of real-world illiquid assets. Off-chain collateral requires informed pricing in order to execute corporate actions such as investments, liquidations, mergers, and acquisitions. At the same time, it is impossible to tokenize assets we can’t price.

Creating a network of accurate and incentivized pricing experts for these off-chain assets is the critical missing link in enabling explosive growth for DeFi’s market capitalization. The DeFi space currently holds a significant worth of $77 billion in the crypto world. However, the issue of pricing for illiquid assets still holds back a lot of investors from joining the DeFi ecosystem. Lithium aims at solving this problem.

Lithium Protocol Design

The Protocol’s design ensures that the pricing provided by Lithium is accurate and not manipulated. Also, the design supports an incentive mechanism. This spurs Wisdom nodes to contribute to the system. Finally, the privacy of users who provide key information is protected by the protocol.  The key features of the protocol’s design are highlighted below.

Dominate Truthful Peer-prediction

Advancements in peer-prediction techniques now make it possible for individuals to provide answers and facts without clearly stating the ground truth. Initially, aggregating multiple users’ information or answers may have required a final or specific answer to get to the real truth. That is not the case anymore.

Questions can be answered in binary fashion with the aid of Wisdom nodes. Thus, to determine the price of a stock that is illiquid or the score of a match, nodes capitalize on mutually exclusive results.

For example, rather than specifically questioning data providers on the price of an asset, the question could be refined. Participants could be asked if the asset is higher than $10 or lower than $10. Additionally, in the multiple-choice sections, ranges like $10-$20, $21-$30, $31-$40 could be used to extract information from providers while they do not reveal the specific answers. After all common answers have been computed, irrelevant or wrong answers will be detected and filtered.

Proof of Wisdom Staking

One may wonder what will happen if the majority of the individuals participating in the stake decide to cheat or provide wrong information. A situation like this can be avoided by Proof of Wisdom staking.

The Proof of Wisdom staking is a framework to help curb malicious acts. The Lithium protocol rewards users who provide accurate information at the end of the process and penalizes users who cheat or casually provide wrong information. Since users’ assets are staked to participate, users will likely provide accurate information to get rewarded. 

Additionally, the more a user participates in the data collection process while providing relevant information, the user gets rewarded not just with tokens from the pool but also with a higher status or reputation in the ecosystem. A higher reputation translates to higher rewards.

Users who default on the other hand will be ripped off their staked tokens. The tokens obtained from defaulters will be used to incentivize reliable participants.

Wisdom Node Reputation

One of the major features of blockchain transactions is transparency. Since transactions are on-chain, the performance of each participant is available and transparent for all to see. Additionally, the records cannot be tampered with. When participants state their answer or provide their reputation, it will be clear for all to see on the protocol.

Specific Rewarding Process

The answers to questions will be aggregated in a matrix form when the time for the answering process is over. The solution will be calculated using the DMI mechanism. The image below shows how correct information will be segregated from erroneous information.

Correlated answers will receive the highest rewards. Uncorrelated or incorrect answers will be stripped off their stake and have a demoted reputation. Neutral answers will be given a smaller reward from the pool.

Stakeholders

Experts who are knowledgeable on the pricing of private companies will be benefactors of the Lithium stake and earn framework. These could be brokers or investors who are familiar with the private market activities of the company in question.

On the other hand, crypto projects, investment banks and private equity firms require accurate pricing information to make crucial business decisions. These players also provide feedback to Lithium on the accuracy of the information obtained from the protocol. Thus, fishing out wrong data will not be an issue on the protocol.

Data Privacy

Data submitted during the exercise are private to everyone at that point and only the protocol can read the data provided. The protocol will then aggregate results of the exercise by means of an MPC technique. This helps to preserve the privacy of data.

Additionally, private data of users who provide answers during the exercise are not revealed. Users remain anonymous.

Lithium Token (LITH)

The native token for the Lithium protocol is LITH. It is a utility token and that will serve as a reward token for users of the protocol who provide relevant and accurate information. Brokers and investors will need to stake LITH in the pools to answer questions on the platform. Users who turn to the Lithium protocol to ask questions regarding an illiquid asset will also need to stake the LITH token before their calls can be executed. Bonuses and extra rewards given to users will also be distributed as LITH.

Conclusion

With the growth of decentralized finance (DeFi), the need for accurate information on pricing will no doubt steadily increase. Lithium is here to fill that need by extracting information from relevant sources or providers who would have originally refrained from disclosing vital information about a private company or project. While doing this, Lithium does not infringe into the absolute privacy of individuals or companies. Thus, the project will definitely solve a major pain point in the blockchain ecosystem while contributing to the growth of decentralized finance.

Coinsmart. Beste Bitcoin-Börse in Europa
Source: https://www.asiacryptotoday.com/lithium-finance/

Blockchain

Central Bank of Portugal Grants Allowance to Local Crypto Exchanges 

The Central Bank of Portugal (Banco de Portugal) has recently granted operating licenses to the local crypto exchanges for the very first time.

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The Central Bank of Portugal (Banco de Portugal) has recently granted operating licenses to the local crypto exchanges for the very first time. Mind the Coin and Criptoloja are the two exchanges that have been granted allowances and are now classed as virtual assets service providers.

Central Bank of Portugal Classifies Criptoloja and Mind The Coin as VASPs

Following the recent announcement by the Central Bank of Portugal, Criptoloja and Mind the Coin has been classified as the only two virtual assets service providers issued on their official website.

Well, this is not a sudden decision as the decision of the Central Bank of Portugal has been nine months in the making and Criptoloja has recently made their initial registration back in the month of September of the year 2020.

The license provides permission to Criptoloja and Mind the Coin to execute the exchange services between the fiat currencies and virtual assets. 

As witnessed throughout history, Portugal has been considered one of the most crypto-favoring countries in Europe.

In addition to this, Jean Galea, the investor, and blogger revealed back in the month of May that the nation is on the path of becoming a haven for all the individuals who are involved in the crypto space due to the exemption of VAT and taxes on the capital gains in the country.

Tehran Government Prohibits IBA Following Several Accusations

The Tehran government has reportedly blocked all the activities of the Iran Blockchain Association, IBA, on Sunday following the various accusations including that the association was executing operations against its own articles of association.

Along with this, the IBA was ordered to submit explained reports about how it is doing financially and its activities to the Social Affairs Organization of Iran.

In response to this, the Head of the IBA, Sepehr Mohammadi said that the newly issued notice was neither received by the association nor its board members. He commented:

“Obviously, vested interests will do anything to stop IBA’s efforts. They managed to publicize the notice before IBA was informed.”

READ  Cayman Islands’ Legislative Assembly Gazettes VASP

#Central Bank of Portugal #Crypto-exchanges #Operating License

Coinsmart. Beste Bitcoin-Börse in Europa
Source: https://www.cryptoknowmics.com/news/central-bank-of-portugal-grants-allowance-to-local-crypto-exchanges

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Blockchain

REV Technical Analysis: Price Testing $0.0111, Reversal Likely Tomorrow

REV price has tested and fallen below the 23.6% FIB retracement level of $0.0111. The price may soon fall below the 23.6% FIB extension level of $0.0109 as well. If the price retests and breaks out of these levels in a few hours, then probably a price uptrend has set in. In that case, we can expect the price to rise tomorrow as well.

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Revain is a blockchain-based review and rating platform where users can voice their opinions, rate and review products, and discover new products as well. Users can receive REV tokens as rewards or incentives for high-quality reviews. This ecosystem is powered by AI technology to filter out low-quality reviews, conduct plagiarism checks, and identify the best reviews eligible for winning rewards. Let us look at the technical analysis for REV as below.

Past Performance

On Jun 14, 2021, REV opened at $0.01. On Jun 20, 2021, REV closed at $0.01. Thus, in the past week, there has been no significant change in the REV price. In the last 24 hours, REV has traded between $0.011-$0.0114.

https://d229noksprj98s.cloudfront.net/wp-content/uploads/2021/06/rev-technical-analysis-price-testing-0-0111-reversal-likely-tomorrow.png

https://zephyrnet.com/wp-content/uploads/2021/06/rev-technical-analysis-price-testing-0-0111-reversal-likely-tomorrow.png

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Day-Ahead and Tomorrow

Currently, REV is trading at $0.011. The price hasn’t changed much from the day’s opening price of $0.01. Thus, the market seems neutral with equal pressures exerted by the bulls and the bears.

The MACD and signal lines have converged with the zero line and may turn negative soon.  Moreover, a bearish crossover by the MACD line over the signal line has occurred. Thus, the overall market momentum is bearish. Hence, we can expect the price to start falling.

Currently, the RSI indicator is at 47%. It faced rejection at 50% and fell to the current level. Hence, selling pressures are high. Thus, the RSI indicator is giving further credence to the bearish signals shown by the MACD oscillator.

However, the OBV indicator is upward sloping. Thus, buying volumes are much higher than selling volumes. High buying activity will exert upward pressure on the REV price. There is bullish divergence here.

READ  Rashida Tlaib Introduces Digital Wallet in the ABC Act

In short, when we look at all three oscillators together, we can say that the overall market momentum is negative. However, we can expect a trend reversal soon as heavy buying volumes are likely to weaken the bearish trend.

REV Technical Analysis

Currently, the price is below the third Fibonacci pivot resistance level of $0.0112. It may soon fall below the Fibonacci pivot point of $0.0108. Thereafter, we have to wait and watch if the price resumes its upward journey or falls further.

The price has tested and fallen below the 23.6% FIB retracement level of $0.0111. The price may soon fall below the 23.6% FIB extension level of $0.0109 as well. If the price retest and breakout of these levels, then probably a price uptrend has set in. In that case, we can expect the price to rise tomorrow as well.

READ  Ethereum Price Analysis: ETH Loses Daily Uptrend as Big Move Imminent

#REV #Revain

Coinsmart. Beste Bitcoin-Börse in Europa
Source: https://www.cryptoknowmics.com/news/rev-technical-analysis-price-testing-0-0111-reversal-likely-tomorrow

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Blockchain

Grayscale’s Massive 16K BTC Unlocking Could Enhance Price Volatility

Grayscale, the largest Bitcoin fund is gearing up to release shares equivalent to 16,000 BTC in the market, fuelling fears of enhanced volatility.

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As Bitcoin drops below $34,000 and July draws near, traders believe the flagship cryptocurrency is headed for a bumpy ride, owing in no small part to Grayscale’s substantial BTC unlocking. The largest Bitcoin fund is gearing up to release shares equivalent to 16,000 BTC in the market, fuelling fears of enhanced volatility.

Grayscale BTC Unlocking Could Spike Volatility

The Grayscale Bitcoin Investment Trust was founded in 2013 to enable institutional investors to gain exposure to BTC through its share offering, without caring for the management and storage of these holdings. This means an investor never directly owns a Bitcoin but shares of the fund, each of which represents the ownership of 0.092 BTC.

In exchange for GBTC, investors pay a 2% commission to the fund and agree to its policies, one of which dictates that their investment would be locked up for a minimum of six months. As a result, GBTC holders have to wait for half a year before they can cash out the return on their investments.

The fund’s increasing popularity has drawn many accredited investors to GBTC in the last two years. Subsequently, some of them had their investments unlocked recently. However, the giant unlocking on June 18 will see the fund release more than 16,000 Bitcoins, estimated to be worth $650 million.

It remains unclear whether investors will dump their assets in response to the upcoming BTC release, but the rise in the asset’s liquidity has the potential to trigger price volatility.

Bitcoin Mining Hash Rate Declines To Its Lowest In 180 Days

China’s crackdown on crypto mining operations within its territory is making a dent in the industry. Large-scale bans have resulted in a steep fall in the Bitcoin network’s tera hashes per second(TH/s). In the last 24 hours, the network performed 127.65M TH/s compared to its all-time high of 180.66M TH/s on May 14.

The Chinese authorities have been steadily tightening their grip around mining companies. Several provinces such Xinjiang, Qinghai, and most recently Sichuan have been directed to discontinue power supply to operations associated with mining. The country has also prohibited financial institutions from offering services related to crypto trading.

Mining operations for AntPool, Foundry USA, SlushPool, and OKKONG, were impacted heavily by the recent moves. Meanwhile, the Huobi mining pool managed to attain an exceptional 10.74% growth in its computing power.

With work on the Central Bank Digital Currency(CBDC) underway, China aims to be at the forefront of blockchain technology by 2025. At the moment, China is offering CBDC to its citizens via digital yuan lotteries. A total of 200,000 red packets are up for grabs, with each packet containing 200 yuan. The country has also updated 3,000 ATMs in Beijing to accept digital yuan, along with two banks that are already providing exchange services.

READ  Bitcoin Could Reach $100,000 Despite Recent Correction: Peter Brandt

#Bitcoin #Bitcoin hash rate #GBTC Unlock #Grayscale Bitcoin Trust (GBTC)

Coinsmart. Beste Bitcoin-Börse in Europa
Source: https://www.cryptoknowmics.com/news/grayscales-massive-16k-btc-unlocking-could-enhance-price-volatility

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Coinbase-backed Crypto Financial Startup Amber Group Raises $1B Investment Round

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Coinbase-backed cryptocurrency financial services company Amber Group raise worth $1 billion in funds, aiming at providing investors with many different cryptocurrency products for investment.

The latest funding round continues a flurry of funding activity in the cryptocurrency sector. The financing was led by the well-known investment China Renaissance. In addition to Coinbase, other investors include Tiger Global Management, headquartered in New York. Amber Group has raised $100 million before this round of financing as investors rush to back companies in the industry. 

This Hong Kong-based cryptocurrency financial services startup company stated that the new funds raised this time will be used for strategic acquisitions, such as cybersecurity. In order to fulfil regulatory safety and compliance, acquisition targets mainly focus on companies with regulatory licenses in certain jurisdictions.

Michael Wu, CEO of Amber Group, said:

“I think regulation is always a challenge for this industry because it’s a very global industry. It’s always about staying ahead or at least staying aware of the different regulations. We always take a very conservative approach to that.”

The CEO also said the fresh capital raised would be used to “hire even more aggressively” and to make strategic acquisitions in areas such as cybersecurity.

According to PitchBook data, in Q2 of this year, the total amount of venture capital investment in cryptocurrency and blockchain startups was approximately $14 billion, compared to $600 million in the same period last year.

With the participation of institutional investors and large companies, both ordinary investors and institutional investors have increased their interest in cryptocurrencies, especially Bitcoin, this year.

Amber Group’s revenue mainly comes from the so-called net interest margin, a measure of lending profitability, to make profits, which takes 70%~80%. The main model is to accept customer deposits and provide deposit interest rates and then lend funds to other entities with a higher interest rate. About 15% of revenue comes from transaction fees.

Amber Group CEO Michael Wu said the company is bringing a “private banking experience to everyday customer.”

The group’s current main service targets are primarily institutional investors and wealthy people, providing products, including services such as algorithmic trading and lending products. In addition, the company is striving to gain individual investor customers. And it is expected to achieve $500 million in revenue by the end of this year.

Wu stated that:

“We don’t advocate heavy speculation or high use of leverage, rather we want our customers to be more long term, focus on risk management and get stable and attractive yield.” 

Image source: Shutterstock Coinsmart. Beste Bitcoin-Börse in Europa
Source: https://Blockchain.News/news/coinbase-backed-crypto-financial-services-startup-amber-group-raises-1b-investment-round

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