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Chinese state-endorsed public chain to act as a global DeFi bridge, says Conflux CEO



Conflux Network, a permissionless blockchain project which is endorsed by the Chinese state, told Cointelegraph on Sept. 22 that the project has officially launched its Tree Graph Research Institute with the Shanghai government. 

According to Fan Long, CEO of Conflux, the Tree-Graph Blockchain Research Institute will experiment with local states to build a regulatory compliance platform that can bridge global DeFi applications and government regulations. He added that: 

“DeFi is a new world and while it appears as though it may pose a challenge for regulators, they appear willing to listen. At this stage, the most important thing is to maintain a reliable communication channel between two sides— the DeFi innovators and the regulators.” 

When it comes to new techniques and innovations, the Chinese government has shown signs of tolerance for experimentation in the past. Fan indicated that the complexity surrounding DeFi and other relevant distributed innovations will make open communication crucial for continued legislative acceptance. He stated that: 

“Regulators need a reliable way to learn what the new technique is about and where it might lead us to. Innovators need a way to understand the concerns and red lines of regulators.” 

At the moment, Conflux is working with the Shanghai government on several sandbox projects. Fan told Cointelegraph that these projects include integrating blockchain borrowing and lending services into Shanghai’s Pudong Development Bank, and leveraging the Shanghai free trade zone’s unique regulatory framework to devise a unique stablecoin for the region, The CEO explained: 

“Shanghai Free Trade Zone is outside of capital control of China where RMB is offshore with its own set of rules, so we are trying to come up with some regulation breakthroughs with experimenting under the free zone framework.” 

Compared with the central bank’s digital currency, or CBDC,  Fan pointed out that  although a CBDC will allow the central government to maintain control of the financial activities, it would be hard for such a centralized form of digital currency to be accepted outside of China. 

Conflux is trying to either create a free zone stablecoin or build a public permissionless cross chain for the CBDC.

The project, which began its life as a research project at Tsinghua University, has been working to provide a robust and cheap framework for developers to build decentralized finance applications. Fan explained that: 

“Conflux Network seeks to provide a POW network with transaction speeds an order of magnitude faster. The key enabler technique is a novel DAG-based ledger structure together with an optimistic concurrency control to achieve a consistent order of transactions among all the nodes in the network.”

Fan believes that DeFi projects will only be able to go mainstream through willfully enacted compliance measures which evolve alongside government regulations. Blockchain and DeFi are new areas for regulators. Although he cannot speak to how regulators will go about this, his predicts that: 

“Decentralization will make it more difficult for regulators to control DeFi products, but there are still possibilities to exercise controls at the boundary between the decentralized world and the centralized world.” 

The Shanghai Municipal Government, one of the states endorsing the project, is interested in exploring how the city can leverage blockchain techniques to integrate traditional finance with decentralized financial services, says Fan.

In order to connect global DeFi projects and regulations, the company also created the Conflux Open Defi initiative. 

Members include: Sequoia Capital, Blockpower Capital, Antelope Holdings, dForce, DeBank, and MCDEX along with Chinese state support through the Shanghai Science and Technology Committee. Fan says Open DeFi aims to unite Eastern and Western DeFi markets through three globally focused program tracks: risk management, new liquidity strategies, and incubation & innovation.



Did VET Break Out or Are There More Lows to Come?

The Vechain (VET) price has possibly broken out from a descending resistance line and validated it as support. As long as the current support area holds, the price should continue moving upwards towards the resistance levels outlined below. Breakout or Fakeout? The VET price has been declining since Aug 9, when a high of $0.22 […]

The post Did VET Break Out or Are There More Lows to Come? appeared first on BeInCrypto.



The Vechain (VET) price has possibly broken out from a descending resistance line and validated it as support.

As long as the current support area holds, the price should continue moving upwards towards the resistance levels outlined below.

Breakout or Fakeout?

The VET price has been declining since Aug 9, when a high of $0.22 was reached. It has been following a descending resistance line since.

VET reached a low of $0.011 on Sept 7 and seemingly began another upward move, only to get rejected and validate the $0.155 area as resistance before moving down to make another low.

After reaching a low of $0.096 on Oct 7, the price created a bullish engulfing candlestick and proceeded to break out from the descending resistance line ten days later. Despite this breakout, the price has not moved upwards much.


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The main support and resistance levels are found at $0.105 and $0.155, in which a breakdown from the former could trigger a very sharp drop towards $0.008.

VET ResistanceVET Resistance
VET Chart By TradingView

Continuation of Upward Movement

Technical indicators on the daily time-frame are bullish but don’t yet confirm the possibility of an upward move.

While the MACD has just crossed into positive territory, the RSI is still below 50. The stochastic Oscillator has made a bullish cross but has failed to continue moving upwards.

VET Resistance Line breakVET Resistance Line break
VET Chart By TradingView

The 6-hour chart is slightly more bullish. Until now, VET has made two failed breakout attempts. Nevertheless, the RSI has shown strength during these failed attempts.

If the price creates another low and then validates the ascending support line, it should break out above the minor resistance area afterward.

VET Resistance areaVET Resistance area
VET Chart By TradingView


Cryptocurrency trader @Altcoinsherpa tweeted a VET price chart, stating that the price might have reached a bottom near 95 satoshis. She expects an upward movement towards 113 satoshis.

VET MovementVET Movement
Source: Twitter

The price has been hovering around the 92 satoshi area since the tweet, validating it as support.

On the VET/BTC pair, the descending wedge is still clearly intact. However, the price is near the end of the pattern, and both the RSI and the MACD have formed significant bullish divergence.

Therefore, a breakout towards the 140 satoshi resistance area is the most likely option. This would also fit with the possible VET/USD breakout.

VET Chart By TradingView

For BeInCrypto’s previous Bitcoin analysis, click here!

Disclaimer: Cryptocurrency trading carries a high level of risk and may not be suitable for all investors. The views expressed in this article do not reflect those of BeInCrypto.


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How Strong Is Bitcoin’s Push Above $12,000?



Who has the most recent bitcoin move right, the bulls or the bears? 

Our main discussion: bulls vs. bears as bitcoin passes $12K

Someone recently tweeted, “Bitcoin price has never been this high with such bearish sentiment.” 

On this episode, NLW looks at the bullish case (growth in open interest on CME backed by strong macro narrative around stimulus) and bearish case ($12K BTC sell wall and bleeding from alts and DeFi).


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With COMP Below $100, a Look Back at the ‘DeFi Summer’ It Sparked



The curtain has fallen on DeFi Summer – not that the sector is done, but the wild buzz seems to be.

The changing of the seasons is marked by Compound’s governance token, COMP, falling below $100 early Tuesday. COMP kicked off the yield farming craze way back in June as a new mechanism for luring assets onto what is now the sixth-largest decentralized finance (DeFi) platform, and the first to briefly topple MakerDAO as the industry leader.

COMP has been hovering right around $100 since a big drop on Oct. 6 brought it down close to our arbitrary threshold, and it’s finally lost that sweet third order of magnitude.

Compound Labs founder Robert Leshner declined to comment for this story.

How DeFi got here

After Compound’s June surge, things started to get interesting as DeFi’s money legos began stacking up.

First introduced on Ethereum by Synthetix in July 2019, “liquidity mining” is what inspired this summer’s boom. The prospect of giving people a fresh new token above and beyond normal returns on deposits quickly drove COMP up higher than anyone had seemed to anticipate. On June 21, COMP reached its zenith at $372. 

Read more: First Mover: Compound’s COMP Token More Than Doubles in Price Amid DeFi Mania

The governance token’s runaway success led other dapps to follow suit, such as with the multi-token pool maker Balancer, the non-fungible token (NFT) marketplace Rarible and others.

But events would quickly become comical in ways they only can in crypto. 

First, a prominent automated market maker (AMM) would have its governance token accidentally released early, then vegetable coins would take over everyone’s imagination and the final drama would introduce vampirism and a convoluted exit scam.

Ultimately, leading AMM Uniswap would release its governance token, UNI, with its own liquidity mining scheme. 

“I personally consider UNI issuance is the peak of this farming movement,” Primitive Ventures’ Dovey Wan told CoinDesk in an email.

Endless summer

The takeaway from DeFi Summer for Wan is the power of the fair launch narrative that was kicked off by Yearn.Finance. Yearn had already been a tool to optimize returns when COMP was first released, but the excitement engendered by yield farming sparked a lot of innovation.

Yearn’s creator, Andre Cronje, created the YFI governance token and urged liquidity providers to earn it rather than buy it. Setting aside no pre-mine for himself, this sent already hyped-up yield farmers into overdrive.

Read more: What Is Yearn Finance? The DeFi Gateway Everyone Is Talking About

“The biggest value of this hype is bringing the fair launch back to the game,” Wan wrote. “The fundraising or bootstrapping liquidity mechanism itself, through farming, quickly gains mindshare and adoption. This will definitely bring value to the industry as an alternative to the previous VC presale game.”

Other observers are taking a similarly long view on the sector’s staying power.

“It’s obvious to anyone who studies this space that DeFi has major structural advantages compared to CeFi,” Spencer Noon, an investor at DLT Capital, told CoinDesk in an email. “This is because, among other factors, protocols don’t have employees, physical locations, or incur other expenses that traditional finance companies do.”

In a provocative twist, the final rays of DeFi Summer coincided with U.S. enforcement actions against crypto exchange BitMEX that cast a new light on the benefits of decentralization.

“If we look at the big picture, the recent indictment from DOJ on BitMEX is another alert why we need a true decentralized finance alternative where it can have minimal exposure to potential regulatory haul,” Wan wrote, who added that bubbles are moments for innovation and adoption. 

Read more: What Is Yield Farming? The Rocket Fuel of DeFi, Explained

Even as DeFi Summer cooled, the coin that kicked it all off held onto value as the narrative it had launched moved on. It wasn’t until Sept. 4 that COMP would sink below $200.

But Kain Warwick, of Synthetix, the firm that first birthed liquidity mining into the crypto lexicon, is undeterred by the cooling of 2020’s DeFi buzz.

He believes that underneath it all, an actual industry has been proven out. 

“[Decentralized exchange] volumes and usage as well as [total value locked] are still 10x+ up from earlier in the year. So while the irrational exuberance has been tempered we are still directionally in a good place in terms of traction,” Warwick said, adding:

“At some point we need to transition from hype to reality. The big difference between this cycle and the previous one is that the reality is here and it is sustainable.”



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