It's a bit strange for me to have a string of crypto related posts (or any other topic in a row for that matter...), but it has been an interesting time over this last week! And for a change, it's been pretty good news.
If you followed my blog, I had talked about the SafePal airdrop for crypto trade tasks (mostly buying/swap and timed holdings). All of this was done on the Binance Smart Chain, and so fees were very very small and there was only the inherent crypto volatility to be taken into account. Given that SafePal was also being developed and supported by Binance as it's first 2021 Launchpad partner, I thought it would be a good idea to take part in this... many of the previous Binance Launchpad partners have gone on to see pretty good returns in the short to medium term (some through to longer terms...).
Just to quickly recap, SafePal is trying to form an seamless ecosystem of wallets, software and hardware. Not totally sure of the the use case and value proposition of the SFP token itself, but we'll see how that all develops.
Before listing on Binance recently, SafePal (SFP) was open for purchase via the new subscription model for Launchpad. This is a better distribution model than the previous lottery model (well, actually... both are relatively fair, but different... I prefer the subscription model). This would allow you to purchase the new token (SFP) at 0.1 cents per token in BNB.
... well, upon listing, the price of SFP has gone up to over 3 dollars, which makes the Launchpad subscription easy to pay off the initial investment even though BNB has since spiked. Meanwhile, the airdrop tasks paid out a good deal more than I had expected! So, first of all, recover the initial subscription outlay (and then a bit more..), split the airdrop... with half to HODL, and half to play around with.
With the unexpected windfall, I've decided to purchase two different baskets of tokens. The first is a basket of leading DeFi protocols on Ethereum and BSC, this is to hedge against the popularity and ease of use of CEXs, and to see if DeFi really will take off as the preferred method of exchange (or not...). The second basket is a basket of smart-contract and interoperability chains, hedging against the ability of Ethereum to scale.
One of the news points from last week was the partial draining of the DAI v1 pool from Yearn Finance. It is a pool that I had some DAI parked in, but with the state of Ethereum at the moment, I don't really try to do anything active on Ethereum unless it is really critical. So, I had left the DAI parked in the v1 pool and not migrated it to the v2 pool. It turns out that the pool was partially drained due to the unexpected effect of reducing the withdrawal fee to 0% to encourage v2 migration. Not fully drained, as it was caught in time... but there was a good chunk of the pool missing.
It turns out that Yearn team has made the pool whole, by collateralising a DAI vault to allow them to mint the DAI to cover the loss. In many ways, I'm a bit surprised... the DeFi ecosystem is full of risks, and when bad things happen... everyone runs for the door. The team had suggested that people wait before exiting the pool as they were exploring options for restoring the pool, but there were people who panicked and ran... and now want to be made whole. I'm not really sympathetic to those who ran. After all, they were looking to pull out with as much as possible leaving the rest of the pool in chaos, and now want to come back begging for restoration? Hmmmm...
Anyway the details of the DAI pool restoration are here:
Yearn has done good by their users here... they didn't have to, but reputation is something that is more valuable than magical internet money!
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