Summary of viewers

Source: LinkedIn

The UK’s tax authority (HMRC) has just released up-to-date rules on how decentralised finance (DeFi) lending and staking in proof-of-stake networks - the way that some cryptocurrency transactions are validated. However, the new HMRC rules do leave a degree of confusion as to whether the proceeds will be taxed as income or a capital gain but, in any event, it will potentially mean that reporting to HMRC is going to be somewhat arduous and complex. In the US, the Office of the Comptroller of the Currency (OCC) confirmed last November that banks in the US were under obligation to demonstrate procedures and processes be in place in order to be able to deal in cryptocurrencies. Furthermore, the OCC has invited representatives from a selection of the major banks to advise on what they feel is the most appropriate way in which cryptos ought to be treated. 

Meanwhile, SEC Head, Gary Gensler, believes that cryptocurrency platforms/exchanges will work with regulators - so are we see a return to an era of self-regulation as firms voluntarily comply with SEC regulations? The stakes are high if regulators do not give perspicuity over how they intend to treat cryptos; buyers and sellers will otherwise migrate to those jurisdictions that do offer definitive clarity. However, the real question is, will national boundaries in a digital world become less relevant? So, provided investors are comfortable that measured and appropriate controls are in place and KYC/AML procedures are followed, will they migrate to those exchanges based offshore? Moreover, will the OCC surprise us and embrace cryptos, in effect avoiding passing control to other jurisdictions? After all, the Chinese have already issued their own CBDC……. Now it looks like Russia is about to shortly announce that they too will be regulating cryptos. Russia’s Minister of Finance Anton Siluanov said: “Cryptocurrency should be regulated rather than banned in Russia”. On Tuesday, February 8, the Russian government and central government published a report noting that they will soon introduce a crypto regulatory draft by February 18.

The Russian government is working on an arrangement wherein the distribution of digital assets will happen only through banking systems or licensed intermediaries.

Source: DeFi Pulse

Due to the flexibility, control, and ease it offers users, DeFi has created an entirely new financial system that continues to evolve and strengthen. Another incredibly important component of DeFi is the decentralized exchange (DEX). In 2021, DEXs saw over $1 trillion in trading volume.

DeFi Yield Protocol (DYP)

Unlike some DeFi user interfaces, the DYP interface is quite simplified, accommodating new and expert yield farmers. It may be used for staking, yield farming, Non-Fungible Tokens (NFTs) and a variety of other trading options. DYP has a unique protocol that not only rewards its users with Ethereum but also enables them to provide liquidity and earn DYP tokens as yield while maintaining the token price. Recently, the protocol has revealed exciting projects planned for the coming months, and these include version 2 of its NFT dAPP on Binance Chain/Ethereum/Avalanche, acting as a launchpad for this high-quality project on these three blockchains. 

DYP developers developed the unique DYP staking. The DYP staking permits users to stake dAPP through the Ethereum smart contract that is front-end integrated with the digital wallets Metamask and Trustwallet. DYP, having studied some flaws of the DeFi ecosystem, gives users the best experience in open finance. Unlike the centralized finance where ‘whales’ have a huge impact on the network and can influence the price of tokens to their own advantage, the operability of DeFi is well-protected. In a bid to prevent whale attack, DYP developed an automated anti-manipulation feature that converts all pool rewards from DYP to ETH at 00:00 UTC every day. After this, the system then shares the rewards among liquidity providers. The anti-manipulation sets to maintain stability, fair access to liquidity, and provide a secure and simplified DeFi platform to all users. 

The decentralized network is an open space regulated by a smart contract, and a great risk in yield farming is the smart contract bug. To prevent the risk of a smart contract bug on its network, DYP ensures all its smart contract codes are audited.

DYP Staking

For staking: to start earning DYP rewards, one needs to deposit one’s DYP token into the corresponding list of pools. There are four staking options of the pool; they are all different and the rewards range from 20% APR to 35% APR, depending on the lock time from the minimum of 30 days to a maximum of 120 days.

The staking pool has a feature that enables you to automatically add your daily rewards to the staking pool. When you refer DYP to people, there is a benefit of referral bonus in which 5% of the referred person’s reward is automatically sent to you without any transaction fee.

DYP yield farming and the Ethereum mining network

As the Ethereum network grows in size and number, and the need for mining on the network becomes apparent, the DYP team has committed itself to Ethereum mining and also has invested more than $1 million in the mining farm. To reward users, every Ethereum miner address that interacts with the DYP smart contract earns a monthly bonus of 10% in DYP of the ETH income earned monthly. In 2021, at a time when yield farming in DeFi has become one of the major trends, the DYP platform announced to have launched its buyback, farming and staking pools. This provides investors with a better opportunity to increase their income-generating activities. $1.9 billion is currently locked in DeFi, showing that cryptocurrency owners are adding increasingly more value to DeFi applications most of which run on the Ethereum blockchain, as can be seen by the chart below.  

Four of the five biggest DeFi Apps are run on the Ethereum blockchain

Source: DeFi Pulse