Seeded Network: A Borrowing and Lending Protocol With a Twist
Project incubators, supporting the launch and growth of crypto startups, have helped to meet the increasing demand for the development of defi solutions in the space. Unfortunately, current tiered models mean that eventually, every legitimate launchpad token rises to a price level where new entrants are prohibited from affording new project tier allocations. This incentivizes investors to find an alternative launchpad with a cheaper token price and, therefore, a better chance of receiving a decent allocation to new projects. Over time, however, this degrades the quality and increases the risk profile of project offerings on new launchpads.
This problem is known as the launchpad dilemma, based on the thesis by NewField Fund. Attempts to address the issue have so far revolved around diluting the token supply, lowering the token requirements per tier, or conducting a lottery for non-token holders. However, in all cases, the fundamental problem of accessibility has remained.
A new approach to project incubation is now being developed by the team behind Seeded Network, aiming to deliver a truly fair solution for all participants by leveraging its built-in defi solutions.
What Is Seeded Network?
Seeded Network is a borrowing and lending protocol with a twist on traditional defi integration to deliver a project incubator product that offers value beyond the standard launchpad approach. It focuses on developing a range of defi products to synchronize network usage, add utility to its native $SEEDED token, and incentivize the use of its incubator.
Seeded Network’s flagship lending protocol is the first-of-its-kind on to allow liquidity provider (LP) collateral, enabling participants to use LP tokens as collateral and borrow other assets while also providing utility to other parts of the network.
How Does It Work?
Seeded Network’s defi solutions are powered by Solana’s unique Proof of History and Proof of Stake hybrid architecture, delivering a high-performance, 400,000 transactions per second, less than $0.01 gas fee, decentralized blockchain from which to scale for mainstream adoption.
In solving for true fairness, Seeded Network seeks to avoid the launchpad dilemma by utilizing a no-tiered system that enables eligibility regardless of the number of tokens held. It also employs a decentralization model that combines more centralized incubator support with a fully decentralized product to allow projects to set up their own fundraising process via its smart contracts. And, by incorporating product usage incentives, Seeded aims to allow the ecosystem to harmonize and thrive, leveraging the power of its lending, borrowing, and staking solutions to promote usage of its incubator.
Investors can access hand-selected projects that have passed the incubation process under an updated allocation model that delivers a more sustainable weighted-average system with different risk tolerances from Seeded’s array of defi solutions.
Projects undergoing incubation are granted access to Seeded’s network of professional marketers, developers, advisors, graphic designers, and community moderators with hands-on support from the Seeded Team to raise funds from all over the world to successfully launch and grow their platforms.
Seeded Network allows participants to use their existing assets and LP tokens as collateral to borrow native tokens, including its own $SEEDED token. Borrowed $SEEDED can then be staked for 10 days before the launch of an incubated project to gain access to an allocation. While these staked tokens can be withdrawn during this window, doing so incurs a 30% penalty, shared equally between stakers, the Seeded treasury, and the Seeded community choice charity.
Seeded’s lending solution enables users to lend out their favorite assets for competitive returns and access to the Seeded ecosystem. Its Locked Lending product allows users to lend out their $SEEDED tokens to receive a bonus double allocation for an incubator project. Tokens must be locked for a 90 day period which other users can borrow and stake to take part in incubation, though can be withdrawn early with the same 30% distributed penalty.
Users can also stake their unborrowed $SEEDED tokens for a 7-day duration before the launch of an incubator project to receive an allocation. As they are unborrowed, these staked tokens can be withdrawn at any time without penalty.
The Seeded Network team has put an emphasis on continuous development, awareness, and solving for true fairness to prioritize user experience.
Following recent partnerships with Chainlink and Waggle, Seeded’s smart contracts will be audited by the leading security platform CertiK in the run-up to launching its initial incubator, lending, borrowing, and staking products. It then plans to incorporate synthetics, stablecoins, farming, and additional defi incentive solutions into its ecosystem over time.
Is stablecoin a security? Crypto Investors get rid of stablecoins: USDT suffered the most
The market capitalization of the leading stablecoins has dropped significantly after the FTX crash. Let’s find out what this means for the market and whether it’s worth following the example of other investors and going into fiat. Is stablecoin a security?
The drama surrounding FTX seriously undermined investors’ confidence in centralized exchanges and forced them to get rid of stablecoins en masse. USDT suffered the most: according to CoinMarketCap, its supply has fallen from $67 billion to $65 billion in the last two weeks.
Because of concerns about Tether and stablecoin security reserves, users are redeeming USDT or converting it to USDC. A similar situation was observed after the collapse of Terra Luna – then within two weeks the market capitalization of the asset fell by $10 billion.
However, CTO Paolo Ardoino says that Tether was not affected by the FTX crash and users have nothing to worry about.
BUSD and DAI were also hit
USDT is not the only stable coin affected by the FTX story. For example, the circulating supply of BUSD fell from $23 billion to $22.5 billion, and DAI fell from $5.7 billion to $5.2 billion.
On the contrary, the capitalization of USDC and Pax Dollar steel blockers increased. Over the past two weeks, USDC’s supply reached $44.7 billion.
The cryptocommunity is actively discussing this on Twitter and speculating about the reasons for this growth. Some believe it may be due to USDC’s profitability and the influx of former USDT holders into the asset.
FTX collapse undermined investor confidence
The fall of the Sam Bankman-Fried empire has undermined user confidence in the cryptocurrency and led to a massive collapse in prices.
But market participants also fear that other platforms will follow FTX’s lead. So it’s no surprise that many retail investors are choosing to hold their own assets rather than hold them on centralized exchanges.
Previously, we reported that Poloniex curtailed support for stablecoins on the BNB Chain.
U.S. authorities launch investigation into Genesis investing system
The Securities Commission of Alabama launched an investigation into the Genesis investing system. This edition of Barron’s, citing the head of the regulator, Joseph Borg.
Borg refused to elaborate on what exactly Genesis is suspected of. The newspaper said the Alabama regulator as well as agencies in several other states were investigating whether Genesis had encouraged U.S. citizens to invest in securities.
Which other regulators are in question is unclear. Borg himself has not directly stated the investigation against Genesis. Instead, he said that “if a firm serving institutional investors fails, retail depositors will be affected [as well].”
Is Genesis investing legitimate?
Genesis Global Trading has hired consultants from investment bank Moelis & Company to consider options for restructuring the business, including bankruptcy. As The New York Times has learned, the broker has not yet made any final decision and still hopes to avoid bankruptcy.
It is worth noting that Moelis & Company consultants also tried to save the bankrupt broker Voyager Digital. A Genesis spokesperson said in a media comment that the firm is still trying to find a way to resolve the issue without declaring bankruptcy.
Genesis’ problems have already affected the firm’s partners. The credit division of cryptocurrency exchange Gemeni is known to have frozen the withdrawal of client assets, citing Genesis’ difficulties. The exchange later said it was working on a solution, but did not provide details.
We previously reported that Binance is launching a reserve-proof system.
How the SEC is trying to create conditions for money control bitcoin. What could it lead to?
When CME Group launched the first bitcoin futures contract in 2017, Chairman Emeritus Leo Melamed said he would “tame” the major cryptocurrency. The SEC has since approved several ETFs. But as exchanges increased their supply of BTC, the community began to have questions about market manipulation. Today, it’s about money control bitcoin.
Banks want to control bitcoin. Can banks control bitcoin?
Manipulating bitcoin with ETFs will lower its price in the short term, but will help accelerate the mass adoption of the cryptocurrency by traditional market participants.
The SEC approved the first bitcoin ETF in October 2021. The ProShares Bitcoin Strategy exchange-traded fund appeared on the New York Stock Exchange on Oct. 19, a day when the fund’s shares traded nearly $1 billion.
The Bitcoin ETF is not suitable for retail investors because it gives institutional investors an advantage. A bitcoin futures ETF has “the potential for price suppression and greater volatility due to the dominance of futures.” BTC futures will appreciate relative to the spot price because of positions opened by hedge funds.
The gold standard. Who controls cryptocurrency?
It’s a common belief in the gold market that ETFs are currently outpacing prices. The same practice seems to have been adapted for the bitcoin market as well. CME Group claims that bitcoin ETFs will help investors “benefit from efficient price discovery in transparent futures markets.”
“Paper” bitcoin may change the minds of crypto skeptics
Bitcoin’s core value comes from two factors. First, BTC is truly decentralized. Second, its maximum supply is 21 million coins. However, bitcoin ETFs increase the supply of BTC by selling “paper” assets and thus affect the value of the cryptocurrency.
The threat of decentralization
Bitcoin futures ETFs can accelerate mass adoption. However, their existence runs counter to the decentralization ethic advocated by the BTC. There is concern that the BTC could be “hijacked” by hedge funds and big banks, which could end up manipulating the price.
We previously reported that Polkadot is offering money to fight cryptocurrencies.
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