CryptoSlate Wrapped Daily: Coinbase wants to give MakerDAO $24M per year in yield; Ripple has ‘several pilots’ in works on CBDCs CryptoSlate Wrapped Daily: Coinbase wants to give MakerDAO $24M per year in yield; Ripple has ‘several pilots’ in works on CBDCs
Voyager receives bids from 22 parties interested in buying its assets, Algorand upgrades its network mainnet to increase its transaction capacity and much more in this edition of CryptoSlate Wrapped Daily.
4 min read
Updated: Sep. 8, 2022 at 2:07 am UTC
Cover art/illustration via CryptoSlate. Image includes combined content which may include AI-generated content.
The biggest news in the cryptoverse for Sept. 7 includes Signature Bank seeing outflows in the digital asset banking space totaling $4.27 billion, Ripple’s CBDC initiatives, and Coinbase’s proposal that could generate up to $24 million annual passive income for MakerDAO.
CryptoSlate Top Stories
Signature Bank suffers $4.27B deposit outflows as crypto uncertainty takes hold
Signature Bank’s mid-Q3 report showed that the crypto-friendly bank saw lower spot deposit balances
According to the bank, the decrease in deposit balances for quarter was due to outflows in the digital asset banking space totaling $4.27 billion.
Ripple hints at new CBDC announcements
Ripple’s Central Bank Digital Currency (CBDC) advisor Anthony Welfare said that the company had inked several partnerships on CBDCs, including participation in the Digital Dollar Project.
He noted that several pilot programs were being designed to make CBDCs public. These pilots are expected to be revealed in the upcoming weeks.
Coinbase submits proposal that could earn MakerDAO $24M annually
Coinbase submitted a new proposal to MakerDAO (MKR), suggesting to transfer 33% of its $1.6 billion Peg Stability Module (PSM) into a Coinbase Prime custody account to make a 1.5% yield annually.
This could allow MakerDAO to generate a passive income of up to $24 million a year. Some MakerDAO members opposed the proposal by saying it could affect decentralization and add another layer of regulatory attack.
Crypto industry is ‘maturing’ but expect slowed growth in the second half – KPMG
A recent report by KPMG concluded that Bitcoin’s performance and risks correlate with traditional assets. Global investments into crypto were recorded as $32.1 billion and $14.2 billion in the first half of 2021 and 2022, respectively.
The report concluded that the growth of the crypto market could slow down in the second half of the year.
Law firms request removal of Roche Freedman in Tether case over allegations made in viral video
After a scandalous video of Kyle Roche was posted online, law firms Kirby Mclnerney LLP (“Kirby”) and Radice Law Firm P.C. (“Radice”) filed a motion for the removal of Roche Freedman as co-counsel in the litigation against Tether.
The law firms argued that Freedman’s involvement in the case would affect the plaintiffs’ rights owing to the team’s failing leadership.
Singapore’s largest bank, DBS, to offer crypto services to 300,000 investors
DBS Bank’s CEO confirmed that the bank would soon start to offer cryptocurrency services to over 300,000 accredited investors in the region.
Singapore’s largest bank revealed that it would pick the most wealthy 300,000 individuals in Asia to offer cryptocurrency services without disclosing a detailed description of these services.
Bankrupt crypto lender Voyager set to auction off its assets on Sept. 13
Voyager said it received bids from 22 parties interested in buying its assets. The crypto lender scheduled an auction for Sept 13 to liquidate all its assets.
Voyagers, we want to let you know that multiple bids were submitted as part of the company’s restructuring process. As a result, an auction is scheduled for September 13th. (1/3)
— Voyager (@investvoyager) September 7, 2022
While not much is known about the mysterious 22 bidders, FTX and Binance said they have been actively pursuing buying Voyager.
Aave votes to pause ETH borrowing following concerns of users trying to maximize ETHPoW airdrops
The Aave community passed a new governance proposal that suspended Ethereum (ETH) borrowing. The proposal passed with 77.8% of the community in favor. It also stated that ETH borrowing was suspended before The Merge to protect against “high utilization in the ETH market.”
Algorand mainnet performance to increase 5x after new upgrade
Proof of stake network Algorand recently upgraded its network mainnet to increase its transaction capacity to 6,000 transactions per second (tps). The old version was capable of issuing 1,200 tps, which indicates a 5x increase in capacity.
The upgrade also added State Proofs to the network, making trustless cross-chain communication possible by securely connecting multiple blockchains without needing a third party.
US banks must maintain cautious approach to crypto, says acting OCC head
The OCC’s Acting Comptroller Michael Hsu maintains a critical view of the crypto space, warning banks at a recent conference to maintain their “careful and cautious” approach to the industry in order to prevent contagion that would undermine the U.S. economy.
Research Highlight
Quantitative Tightening has potential to be the most disruptive ever
Quantitative Tightening (Q.T.) is a tool used by the Federal Reserve to combat inflation. Q.T. reduces the Reserve’s balance sheet by transferring a significant amount to securities and investors.
CryptoSlate’s macro analysis on the topic indicates that the upcoming Q.T. period could be the most turbulent one yet.
Q.T. has been the U.S. policy to deal with inflation since 2017. According to the macro data, this Q.T. will try to reduce $9 trillion from the Fed’s balance sheet, which will be the most significant amount so far.
News from around the Cryptoverse
The Reserve Bank of India starts working on a CBDC project
According to MoneyControl, The Reserve Bank of India (RBI) is in talks with four public banks to launch a CBDC project. RBI aims to establish a CBDC project by the year-end.
SEBA Bank launches Ethereum staking
Crypto-oriented SEBA Bank launched Ethereum staking feature to encourage institutional access to the staking economy, MoneyCab reported, The bank hopes to increase its customers’ involvement with crypto as Ethereum changes to PoS.
Brave integrates over 2 million unstoppable domains
Crypto-adaptive browser Brave announced that it incorporated more than 2 million new Unstoppable domains to display decentralized websites. These integrations will allow creators to build decentralized content with a domain they own and control.
The announcement stated:
“Now, we’re deepening our integration beyond .crypto to include more top-level domains – including .nft, .x, .wallet, .bitcoin, .blockchain, and .dao. “
Brazil sees record number of crypto declarations
The Federal Revenue of Brazil disclosed that a record number of cryptocurrency declarations were seen during July 2022, with more than 1.3 million citizens showing crypto assets in their tax reports, according to a LiveCoins report.
Crypto Market
Bitcoin lost 2.37% in the last 24 hours, dropping to $18,936, while Ethereum recorded a 4.62% fall to be traded at $1,556.
Biggest Gainers (24h)
Helium: +39.88%
EOS: +18.74%
yearn.finance: +10.07%
Biggest Losers (24h)
OKB: -1.97%
Klaytn: -1.88%
Ravencoin: -0.78%
Mentioned in this article
Bitcoin 
XRP 
Ethereum 
Helium 
EOS 
OKB 
yearn.finance 
Ravencoin 
Klaytn 
Tether 
Ripple 
Coinbase 
FTX 
Binance 
Algorand Foundation 
Voyager Author 
Zeynep Geylan
Zeynep is an academic who turned to crypto in 2018. Originating in social sciences, she is especially interested in the social impact of blockchain and cryptocurrencies and strongly believes in their transmuting power.
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In this article
Bitcoin, a decentralized currency that defies the sway of central banks or administrators, transacts electronically, circumventing intermediaries via a peer-to-peer network.
XRP
$1.34619
The XRP Ledger is a decentralized cryptographic ledger powered by a network of peer-to-peer servers.
Ethereum
$3,311.94
Ethereum is a decentralized, open-source blockchain platform that enables the creation of smart contracts and decentralized applications (DApps).
Helium
$5.94044
Helium (HNT) is a blockchain-based cryptocurrency that powers the Helium Network, a decentralized wireless infrastructure designed to support Internet of Things (IoT) devices.
EOS
$0.80432
EOS is a blockchain protocol that enables horizontal scaling of decentralized applications, allowing developers to efficiently create high performance distributed applications..
Ravencoin
$0.02408
Ravencoin is a digital peer to peer network that aims to implement a use case specific blockchain, designed to efficiently handle one specific function: the transfer of assets from one party to another.
Klaytn
$0.18229
Klaytn is Kakao’s enterprise-grade, service-centric platform that aims to bring a user-friendly blockchain experience to millions of users.
Tether
$1.00039
Launched in 2014, Tether is a blockchain-enabled platform designed to facilitate the use of fiat currencies in a digital manner.
Ripple
Ripple is a US-based technology company which develops the Ripple payment protocol and exchange network using XRP, the digital asset native to the XRP Ledger.
Coinbase
Coinbase is a digital currency exchange and wallet service that allows individuals to buy, sell, and store digital currencies, such as Bitcoin, Ethereum, and Litecoin.
FTX
FTX is a defunct cryptocurrency exchange, currently in bankruptcy proceedings, that was founded by Sam Bankman-Fried and Zixiao “Gary” Wang in May 2019.
Binance
Binance is a global cryptocurrency exchange that provides a platform for trading more than 100 cryptocurrencies.
Algorand Foundation
The Algorand Foundation is a not-for-profit, community organisation focused on protocol governance, token dynamics, and supporting grassroots, open-source development on the Algorand ecosystem.
Voyager
Voyager Digital is a bankrupt cryptocurrency exchange company in the United States that was founded in 2018.
