Coinbase and Lido Dominate Ethereum Staking, Compound Treasury Launches Institutional Borrowing
Daily Market Wrap
Crypto market cap: 899.88 Billion, down 7.73%
BTC price stands at USD 18,449, down 8.02%
ETH price stands at USD 1,293, down 11.04%
Top gainer: Helium (HNT), up 3.10%
Top loser: Ethereum Classic (ETC), down 17.36%
News of the Day
Ethereum has successfully merged to Proof-of-Stake, and according to various sources, Lido and Coinbase are the two largest Ethereum stakers.
Why it matters:
Proof-of-Stake consists of users staking their tokens, such as ETH, to validate transactions and secure a blockchain
Lido has 4.16 million ETH staked (30.1%) and Coinbase has 2 million ETH (14.5%)
Crypto users have begun to voice concerns about the level of centralisation of Ethereum validation, as this could make the blockchain less secure; a 51% attack would be easier for bad actors to achieve
Crypto Daily Spotlight
Compound Treasury has launched a new feature which will allow institutions to borrow using digital assets as collateral.
Brief Introduction: Compound Treasury is powered by Compound Labs, an algorithmic, autonomous interest rate protocol. Launched over a year ago, Compound Treasury aims to be “the bridge for non-crypto financial institutions to deliver the core benefits of DeFi to the next billion users.” Current clients include fintech and crypto companies, as well as banks, who can wire US dollars into their Compound Treasury accounts and earn up to 4% APY yields.
Why it matters:
Compound Treasury is monitored by a rating agency and has a B- credit rating from S&P Global
Compound Treasury does not lend out its collateral assets
The new feature enables authorised institutions to use ERC-20 digital assets, including Bitcoin and Ether, as collateral and borrow USD and USDC at a fixed rate of up to 6% APR
Daily Sector Tracker
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