An overview of what is happening in the crypto markets, summarised daily by Crypto Finance AG Senior Trader Patrick Heusser in the market commentary.
Market commentary
Good Morning!
The Defi space had a busy weekend. The biggest event was probably the launch of the new DEX: Serum. This project was launched by the FTX team.
It is one of the first DEXs that has a decent populated on-chain orderbook and very low transaction costs. See here.
Forking protocols
There was also a fierce discussion about forking protocols: namely, Uniswap 1Inch, and SushiSwap.
The funny thing is that there should not be any discussions about this due to the fact that we are in an open source environment. Additionally, another actor (service provider) in this space moved away from open source or is trying to limit the forking possibilities of its protocol: MetaMask (see here).
NXM - Nexus Mutual
And last but not least, a sub-sector of the DeFi space is emerging. It is not new, but has to a certain extent been flying under the radar for quite some time now. NXM - Nexus Mutual is a decentralised insurance protocol. When ERC20 and ERC721 smart contracts work together another universe of Defi may potentially be unlocked. See here.
Risk for projects in the DeFi sector
The development and innovation curve is extremely steep in the DeFi sector. The speed is unbelievable and it is really hard to keep track of all the different projects. Due to the complexity and the interlinked build-up within the Etherum network, some of these projects are in danger of triggering chaos and potential sell-offs. When this happens, you need to have your list ready of the projects you believe have a proper value proposition and then go for it when everybody else is fearful.
