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Investors urge regulators to protect vulnerable from climate risk

Investors urge regulators to protect vulnerable from climate risk

Impact investors are ramping up their calls to federal agencies to protect financially vulnerable communities from the ramifications of climate change, with a particular focus on updating regulations implementing a 1977 anti-redlining law.

Sustainable finance nonprofit Ceres and the U.S. Impact Investing Alliance, both of which work closely with investors concerned with environmental, social and governance issues, are beating the drum for the country's top financial regulators to ensure that disadvantaged communities and communities of color are accounted for in any analysis on climate-related financial risk.

Of the eight agencies with statutory authority to address the needs of at-risk communities, the Federal Housing Finance Agency is the sole one that has made considerable progress so far on addressing climate change's effects on lower-income communities, Ceres said in a report this week.

In the agency’s draft strategic plan through 2026, FHFA emphasized the intersection of affordable housing and climate change, noting that an increase in the number and intensity of natural disasters could hinder the agency’s work.

“Disaster events such as hurricanes, wildfires, and floods could increase credit risk and credit-related expenses at the regulated entities,” FHFA said in its plan. “Natural disasters tend to [disproportionately] impact the affordable housing stock, and in an economic environment with the high labor and materials costs, rebuilding affordable housing would be a significant challenge.”

Meanwhile, the organization said the Treasury Department, the Federal Reserve, the Federal Deposit Insurance Corporation and the Office of the Comptroller of the Currency have made "some progress" on assessing climate risks to financially vulnerable U.S. populations.

The Securities and Exchange Commission, the National Credit Union Administration and the Commodity Futures Trading Commission have either done little work or have failed to disclosed what efforts they have made on the issue, the group said.

“Financially vulnerable communities, which include lower income communities and communities of color, are disproportionately burdened by climate-related physical risks as well as the financial risks that accompany both increasingly devastating climate impacts and the efforts to address climate-related financial risks,” Ceres said.

Review of regulators' progress

The organization's findings come as part of a review of U.S. financial regulators' progress in fulfilling President Joe Biden’s executive order on climate-related financial risk last year. In the May 2021 order, Biden said his administration must study climate risk in the economy "while accounting for and addressing disparate impacts on disadvantaged communities and communities of color."

In recent months, Ceres has advocated for federal agencies to follow through on the key recommendations on mitigating climate risk from an October report from the Financial Stability Oversight Council. Ceres noted that “U.S. federal regulators still lag far behind some of their global counterparts and what science demands” and the country “needs to move faster” to address the material impacts from global warming.

The U.S. Impact Investing Alliance, which promotes impact investing and advocates for supportive policies, echoed similar sentiments in a letter earlier this month to the FDIC. 

"Climate change poses significant and systemic risks to financial stability and the capital markets, and there is growing evidence that failing to act on climate change will have profound negative consequences for the U.S. economy," the alliance’s president, Fran Seegull, told the agency. "Investors and global stakeholders are increasingly calling on financial institutions to measure and manage their exposures to both physical and transition risks."

ESG investors have expressed concerns that the U.S. regulatory environment ensures that the private and public sectors make the net-zero transition equitable in terms of job security, energy infrastructure, insurance coverage and housing.

The FSOC report on climate risk underscored that climate change “disproportionately affects financially vulnerable populations” including lower-income households, communities of color, Native American populations and other disadvantaged communities.

There is an opportunity to close the gap for these communities, Ceres said, by updating the Community Reinvestment Act regulations. The nearly 50-year-old law encourages federally insured banks to meet the credit needs of all parts of the locations they serve, including low- and moderate-income communities.

The Fed, FDIC and the OCC last month unveiled plans to update how they implement CRA after the agency scrapped Trump-administration rules that Democrats said would have weakened the law. One of the biggest changes is that the three agencies included climate resiliency and disaster preparedness within the definition of community development activities.

Those changes caught flak from Senate Banking ranking member Patrick J. Toomey, R-Pa., who said the proposed updates would advance “left-wing environmental goals, something that is wholly outside the remit of the Community Reinvestment Act.”

Democrats and ESG proponents, including Ceres, see the proposal as a critical step to protecting disadvantaged communities from financial ruin in the face of wildfires, hurricanes and floods.

“If these provisions remain in the final rule, financial institutions covered under the CRA will be encouraged to help meet the credit needs of financially vulnerable communities through loans, investments, and other services that allow these communities to prepare for natural disasters or build resilience to future climate-related events,” Ceres said. “Although this proposed rule may have significant impact, we hope all agencies evaluated in this year’s scorecard increase their efforts to address climate risks to financially vulnerable communities.”

Banking regulators should consider whether a financial institution’s efforts to mitigate the worst effects of climate change on disadvantaged communities should be factored into its CRA rating, the U.S. Impact Investing Alliance's Seegull told the FDIC.

“There is significant evidence that climate change disproportionately harms [low- and moderate-income] communities, and banks should incorporate these considerations into their strategic planning to ensure that LMI communities have adequate access to financial services and banking products,” Seegull said.

The banking industry's top trade associations, the American Bankers Association and the Bank Policy Institute, said in separate letters to the FDIC that federal banking agencies should consider how financial institutions could receive CRA credit for work they do to improve the climate resilience of disadvantaged communities.

Bank regulators "should ensure that any future guidance or regulations related to climate related financial risk allows banks to continue providing loans and other financial services to the communities and customers they currently serve," said Alison Touhey, vice president and senior regulatory adviser for financial institutions policy and regulatory affairs at the American Bankers Association.

"We tentatively support providing positive CRA consideration for certain loans and investments intended to address the impacts of climate change, particularly as it relates to low- and moderate-income customers and communities," Touhey added in a letter this month to the FDIC.


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Sensor Tower Grows Executive Leadership as It Scales for the Next Era in Digital Intelligence

Sensor Tower Grows Executive Leadership as It Scales for the Next Era in Digital Intelligence

SAN FRANCISCO, June 30, 2022 (Newswire.com) - Sensor Tower, the leading, trusted source of enterprise-grade market intelligence for the mobile and digital advertising industries, announced today the addition of three key hires to its executive leadership team. Joining the company are Jeff Allen as Chief Marketing Officer, Sapna Kapur as Chief Financial Officer, and Michel Bohn as Chief Compliance Officer.

The hires come at a time of dynamic expansion and growth for the company, which has more than quadrupled its team from 70 in 2019 to over 300 year-to-date in 2022. With a global presence extending across 25 countries, Sensor Tower is rapidly scaling in both the APAC and EMEA regions. The company is also continuing to broaden its product offerings following the acquisition of the leading digital ad intelligence firm Pathmatics in 2021. 

Jeff Allen joins as Chief Marketing Officer from Adobe, where he served as Senior Director of Product Marketing for Adobe Analytics. Allen previously led AtTask/Workfront (acquired by Adobe) into the MarTech space as CMO and, before that, served as Vice President of Marketing at Venafi, a leading cybersecurity company. "I strive to enhance my creativity and decision making through the use of data, so it's been a privilege to participate in the analytics ecosystem for the past decade," Allen said of his move to Sensor Tower. "I'm energized by the opportunity to join a team pursuing better insights to fuel decisive action, as we work to refine and grow one of the world's richest data estates focused on decision making."

Chief Financial Officer Sapna Kapur is a seasoned leader who has previously helped run finance at late-stage MarTech/AdTech startups. She was most recently the CFO at MediaMath and previously served as the Senior Vice President of Finance at NextRoll. Prior to this, Kapur was a finance executive at Google where, over her 12-year stint, she held key finance leadership roles within the Ads & Commerce business areas and was instrumental in driving both top-line growth and profitability initiatives. In addition, she brings a breadth of experience across strategy, partnerships, mergers and acquisitions, and operations to Sensor Tower. "I'm passionate about driving business growth for innovative, leading-edge companies," said Kapur. "When I met the Sensor Tower founders, I was impressed by their vision and recognized the potential they have ahead of them to be a source of truth for an increasingly complex digital ecosystem. The company is at an exciting juncture and I'm looking forward to helping lead it through the next stages of its evolution and growth as it continues to expand its operations and global presence."

As Chief Compliance Officer, Michel Bohn brings years of experience advising VC-backed startups, research labs, and data companies as a partner at VLP Law Group, LLP. Bohn also previously worked in IBM's Systems and Technology Group and served as Senior Editor of The IP Law Review while earning his law degree. "I've worked with Sensor Tower for several years as the company developed and implemented its sector-leading privacy and compliance practices," said Bohn. "As these areas continue to prove increasingly vital to enterprises and the company looks to invest even more into future-focused data protection measures, it made perfect sense for me to join and help guide these initiatives. I'm excited for my team's work to further emphasize Sensor Tower's status as the most trusted source of digital insights."

"As Sensor Tower expands our operations and as our products and service offerings support more critical business decisions, it's a crucial time to introduce new voices and expertise to our executive leadership team," said Alex Malafeev, CEO and co-founder of Sensor Tower. "Sapna, Jeff, and Michel bring the kind of proven experience we need at scale, and each embodies the key aspects of our shared values that have established us as the most trusted partner in the digital intelligence space year after year."

Sensor Tower plans to continue its acceleration this year, and making further strategic additions to its executive team will remain paramount to that growth.

About Jeff Allen: Jeff is a data-driven marketer to his core, having spent his career working in technology marketing, product management, and sales roles. Before joining Sensor Tower, he led marketing globally for Adobe's award-winning analytics products for 10 years. Jeff is also a three-term board member of the Digital Analytics Association. Past experience includes serving as CMO of AtTask/Workfront (now part of Adobe), a hyper-growth SaaS work management company, where he led the company's entry into the MarTech space, launching its first products and campaigns targeting marketing departments. Before that, as the VP of Marketing for another startup, Venafi, he helped establish the Enterprise Key and Certificate Management market as the pioneering vendor of the space.

Jeff holds a Bachelor of Arts degree from Brigham Young University, where he studied Russian and Business. Additionally, he's completed executive education courses at Northwestern's Kellogg School of Management and the University of California, Berkeley.

About Sapna Kapur: Sapna is a seasoned industry executive, experienced in leading global strategy and driving top-line growth. Prior to joining Sensor Tower, she was the Chief Financial Officer at advertising tech company MediaMath. Kapur's deep expertise was honed over more than two decades leading scaled finance teams at high-performing tech companies, where she developed and executed strategic partnerships and supercharged revenue expansion efforts. Previously, she served as the Senior Vice President of Finance at NextRoll (formerly AdRoll Inc.). This followed 12 years in a variety of finance executive roles at Google, where she led numerous globally scaled operations across verticals such as Core Ads Monetization and Global Product Infrastructure. 

Kapur received her MBA in Finance and Operations from the Wharton School of the University of Pennsylvania. She also holds a master's in international business from the Indian Institute of Foreign Trade as well as a Bachelor of Arts degree in Economics from the University of Delhi.

About Michel Bohn: As a partner at VLP Law Group, LLP, Michel has advised innovative VC-backed startups, research labs, and premium mid- and large-cap high-technology companies on a variety of complex data protection and IP-related matters that include data compliance and due diligence, strategy, IP portfolio development and management, legal opinions, vendor agreements, enforcement and mitigation, and licensing.

Prior to his legal career, Michel worked in IBM's Systems and Technology Group, where he oversaw the development and deployment of mission-critical software and managed the phase-out of legacy systems. Leveraging his software, engineering, and legal background, Michel has assisted numerous innovative companies in evaluating complex data aggregation, data science, machine learning, and data aggregation methodologies to ensure they are compliant with applicable data protection laws and address risks presented by the changing regulatory and legal landscape.

While earning his law degree, Michel served as Senior Editor of IDEA (The IP Law Review), Chair of the Student Intellectual Property Law Association, and Student Liaison to the Board of Trustees.

About Sensor Tower: Sensor Tower is the leading, trusted source of enterprise-grade market intelligence and analytics software for the digital ecosystem. Its innovative performance, advertising, usage, and trend insights across digital devices enable firms from mobile-first app publishers to Fortune 500 companies and financial institutions to navigate and adapt in a rapidly evolving landscape. To learn more, visit sensortower.com and follow us on LinkedIn.

Press Contact: press@sensortower.com 

Source: Sensor Tower, Inc.


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Hardbacon Reveals the Top Tips to Save Money on Travel this Summer

Hardbacon Reveals the Top Tips to Save Money on Travel this Summer

Hardbacon ​in-house money expert Heidi Unrau reveals the most effective money saving tips for traveling this summer

Hardbacon, a personal finance application used by more than 39,000 Canadians, has teamed up with ​​in-house money expert Heidi Unrau to reveal the most effective ways to save on travel this summer.

Canadians are more eager than ever to travel this summer, but with Canadians facing record-breaking inflation and soaring gas prices, knowing how to make the most of your money as you vacation is a game-changer.

Hence, Harbacon money expert Heidi Unrau is sharing her favourite ways to save money on travel this summer, so you can make the most of your next vacation. Her money saving tips aim to help you get the best deals on everything from flights to hotels, as well as cash rewards on your purchases.

“Whether you’re flying down south or taking a road trip to any major Canadian city, some smart shopping and planning can go a long way this travel season,” said Heidi. “From using the right credit card to budgeting apps, there are tons of strategies to understand that will allow Canadians to travel smart this season.”

Here are Heidi’s 3 best hacks to save money on travel this summer:

Switch credit cards 

The easiest way to save on travel is by making the most of your credit card. By making the switch to a Travel rewards credit card, you can reduce your travel costs, as well as benefit from features like travel insurance, baggage fee discounts, no foreign transaction fees and more.

Build a budget

To really get a hold of your finances before you travel, build a budget. The Hardbacon budgeting app can get you to a better financial place quicker than you could on your own by helping you track your spending, make a budget, and take control of your money.

Use a comparison tool

Hardbacon’s comparison tool allows Canadians to compare flights, hotels and travel insurance in order to benefit from the best prices. Canadians can now compare flight prices to find cheap airline tickets, save hundreds of dollars when they compare prices on travel insurance, as well as compare hotels to find the best rates.

About Hardbacon

Hardbacon helps Canadians plan, budget and invest, while also enabling users to compare different financial services such as credit cards, bank accounts, online brokers, robo-advisors, mortgages and crypto exchanges. Hardbacon is available for download in the App Store and Google Play Store.

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Colombia’s Petro picks market-friendly Ocampo as finance minister

Colombia’s Petro picks market-friendly Ocampo as finance minister

Author of the article:

Reuters

BOGOTA — Colombia’s leftist President-elect Gustavo Petro on Thursday named Jose Antonio Ocampo as his finance minister, a market-friendly choice who will have the challenge of maintaining the strong performance of Latin America’s fourth-largest economy and passing ambitious fiscal reforms in Congress.

Ocampo, 69, who has a Phd in economics from Yale University, is one of Colombia’s most celebrated economists who previously served as agriculture minister, minister of finance and director of the national planning department. He has also held positions in the United Nations.

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He has recently worked as a professor at Columbia University in the United States.

“This will play well in the market, he’s a technical guy, an economist that everyone recognizes and has always been progressive, that seems good to me,” said Sergio Olarte, Scotiabank’s chief economist for Colombia.

During the election campaign Petro pledged an ambitious tax reform worth some 50 trillion pesos ($12.1 billion) to finance social projects and put public finances in order.

He also proposed a pension reform to expand coverage to greater numbers of elderly poor people, which has caused uncertainty among business and investing communities.

“Jose Antonio Ocampo will be our finance minister (to) build a productive economy and an economy for life,” Petro said in a message on Twitter alongside a picture of the two men standing side by side.

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Colombia’s currency fell 0.75% to 4,148 pesos to the dollar in early trading, in line with global trends due to growing risk aversion amid fears of a recession in the United States.

In contrast, the MSCI COLCAP index rose 1.68% to 1,369.45 points.

The election of Petro, a former M-19 guerrilla, marks a radical change for a country still scarred by decades of conflict. Nearly half of Colombia’s roughly 50 million people live in poverty and many voters are frustrated with the right-leaning political establishment.

The President-elect has promised to tackle deep inequality with pension redistributions, free university education and other social programs.

Last week Petro named long-time politician and peace envoy Alvaro Leyva as his minister of foreign affairs. (Reporting by Nelson Bocanegra, Oliver Griffin and Luis Jaime Acosta; editing by Michael Perry and Grant McCool)

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Z Finance Solutions Offers Real Estate and Loan Officer Services Under One Roof

Z Finance Solutions Offers Real Estate and Loan Officer Services Under One Roof

The property experts in Texas are assisting home buyers in finding their dream home and securing a loan for it.

Austin, Texas, 30th June 2022, ZEXPRWIRE, As the coronavirus pandemic causes major upheaval in the housing market, Z Finance Solutions offers a solution to concerned homebuyers.

The real estate company offers buyers an opportunity to own a home by streamlining the purchasing process. The realtor is achieving this feat via a two-in-one solution.

Prior to finding a house that fits a buyer’s needs and budget, it is important to speak with a loan officer to learn about all the possible options for financing the purchase. Z Finance Solution provides both of these options in one place.

Speaking about property hunting, realtor Jennifer Zavaglia stated, “Finding the right property that fits all your needs can seem overly optimistic. In the current market, making this dream come true is not easy. At Z Finance Solutions, our goal is to aid this entire process, provide as much relief to our clients as possible, and get as close to that ideal.

The company’s loan officer Matt Zavaglia added, Our goal is to help you secure a suitable loan whether you’re looking to buy a home or real estate investment property in Texas.”

The Z Finance Solutions team has loan officers and realtors on board who have been providing proper assistance to homebuyers to find the right property and secure a loan to fund their acquisition. Loan officer Matt Zavaglia and realtor Jennifer Zavaglia work together as a dynamic team. They keep an eye out for potential properties in Texas and help with loan proceedings for clients with soft credit scores.

Apart from offering advice on down payments and mortgages, Z Finance Solutions also conducts webinars to share advice, techniques, and give clients a sense of what to expect when buying a property for the first time.

Anyone who wishes to avail their services can contact them at the website mentioned below.

“Our solutions are geared towards homebuyers and investors alike, and we’ll leave no stone unturned to tick all their proverbial boxes.” – Jennifer Zavaglia

About Z Finance Solutions

Z Finance Solution is a Texas-based business run by loan officer Matt Zavaglia and realtor Jennifer Zavaglia, offering real estate and loan services under one roof. Z Finance Solution aids with the two most critical steps in obtaining a home: choosing a suitable property and obtaining the required loan to pay for it.

Media Contacts

Company Name:-Z Finance Solutions

Website: https://zfinancesolutions.com/

Contact: 512.820.8146

Email: [email protected]


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Mortgage Refinance Rates on June 30, 2022: Rates Dip

Mortgage Refinance Rates on June 30, 2022: Rates Dip

Both 15-year fixed and 30-year fixed refinances saw their average rates decline. The average rate on 10-year fixed refinance also trailed off.

Like mortgage rates, refinance rates overall have been increasing since the beginning of 2022, and we expect that trend to generally continue through the remainder of this year -- though rates do fluctuate daily. With inflation at a 40-year high, the Federal Reserve has already hiked interest rates three times and is poised to raise them further in 2022. Rate hikes increase the cost of borrowing money, and homeowners considering a refinance may only find higher rates as the year goes on. If you're looking to lower your monthly mortgage payment, it could be advantageous to lock in a rate sooner than later. Make sure to think about your goals and circumstances, and compare rates and fees to find a mortgage lender who can meet your needs.

30-year fixed-rate refinance

The current average interest rate for a 30-year refinance is 5.78%, a decrease of 10 basis points over this time last week. (A basis point is equivalent to 0.01%.) A 30-year fixed refinance will typically have lower monthly payments than a 15-year or 10-year refinance. This makes 30-year refinances good for people who are having difficulties making their monthly payments or simply want a bit more breathing room. Be aware, though, that interest rates will typically be higher compared to a 15-year or 10-year refinance, and you'll pay off your loan at a slower rate.

15-year fixed-rate refinance

The average 15-year fixed refinance rate right now is 5.03%, a decrease of 11 basis point over last week. Refinancing to a 15-year fixed loan from a 30-year fixed loan will likely raise your monthly payment. On the other hand, you'll save money on interest, since you'll pay off the loan sooner. You'll also typically get lower interest rates compared to a 30-year loan. This can help you save even more in the long run.

10-year fixed-rate refinance

The current average interest rate for a 10-year refinance is 5.03%, a decrease of 17 basis points from what we saw the previous week. You'll pay more every month with a ten-year fixed refinance compared to a 30-year or 15-year refinance -- but you'll also have a lower interest rate. A 10-year refinance can help you pay off your house much quicker and save on interest. Just be sure to carefully consider your budget and current financial situation to make sure that you can afford a higher monthly payment.

Where rates are headed

At the start of the pandemic, refinance rates dropped to historic lows, but they have been steadily climbing since the beginning of this year. Refinance rates are rising due to inflation, which is at its highest level in four decades, as well as actions taken by the Federal Reserve. The Fed recently raised interest rates by 0.75 percentage points -- the highest increase in almost three decades -- and plans to raise them several more times throughout 2022 to slow the economy. That means it's a good idea to take advantage of refinancing now and potentially lock in a decent rate before they go up again.

We track refinance rate trends using information collected by Bankrate, which is owned by CNET's parent company. Here's a table with the average refinance rates reported by lenders across the US:

Average refinance interest rates

ProductRateA week agoChange
30-year fixed refi5.78%5.88%-0.10
15-year fixed refi5.03%5.14%-0.11
10-year fixed refi5.03%5.20%-0.17

Rates as of June 30, 2022.

How to find the best refinance rate

It's important to understand that the rates advertised online may not apply to you. Your interest rate will be influenced by market conditions as well as your credit history and application.

Having a high credit score, low credit utilization ratio and a history of consistent and on-time payments will generally help you get the best interest rates. You can get a good feel for average interest rates online, but make sure to speak with a mortgage professional in order to see the specific rates you qualify for. To get the best refinance rates, you'll first want to make your application as strong as possible. The best way to improve your credit ratings is to get your finances in order, use credit responsibly and monitor your credit regularly. Don't forget to speak with multiple lenders and shop around.

Refinancing can be a great move if you get a good rate or can pay off your loan sooner -- but consider carefully whether it's the right choice for you at the moment.

When should I refinance?

Most people refinance because the market interest rates are lower than their current rates or because they want to change their loan term.When deciding whether to refinance, be sure to take into account other factors besides market interest rates, including how long you plan to stay in your current home, the length of your loan term and the amount of your monthly payment. And don't forget about fees and closing costs, which can add up.

As interest rates have rather steadily increased since the beginning of the year, the pool of people eligible for refinancing has shrunk significantly. If you bought your house when interest rates were lower than current rates, you may likely not gain any financial benefit from refinancing your mortgage.


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A Staking Guide for Lido Finance

A Staking Guide for Lido Finance

Lido Finance staking guide

Lido Finance offers liquid staking on their staked assets. They find themselves in a key position recently, with their stETH tokens. However, they offer more than just this token. In total, Lido staking offers 5 different tokens.

When staking on Lido, you receive a new token that pegs 1:1 with the underlying asset. With this token, you can earn passive income on DeFi. That is liquid staking in a nutshell. So, let’s find out how you can stake on Lido Finance.

How Does Lido Staking Work?

Staking on the Lido Protocol works easily. However, when you stake an asset, it’s locked. As already mentioned, the Lido protocol gives you a derivative token in return. When you stake one of the five available assets with them, you get a token that’s pegged 1:1 to this asset. Here’s a list of the available tokens, their liquid tokens, and the current APR.

Network Token Liquid token APR
Ethereum ETH stETH 4%
Solana SOL stSOL 5.5%
Kusama KSM stKSM 21.1%
Polkadot DOT stDOT 16.5%
Polygon MATIC stMATIC 8.7%
Source: Lido Staking

Note: Lido will take a 10% fee on your earned staking rewards. So, not on the staked amount.

Moreover, you make two-way gains whilst staking on Lido:

  1. Your stake earns yields.
  2. You can use your liquid token on DeFi and earn passive income. It’s also possible to sell your st token.

The top Lido Finance token for staking is ETH, with its stETH. This takes the biggest share of all five tokens. On the other hand, Polkadot is the new kid on the Lido staking block. They joined Lido on May 31, 2022. In our recent article on Lido Finance, you can find more info about the Lido DAO and what Lido Finance is about.

Lido staking
Lido Finance

So, let’s have a look at these five tokens and their staking conditions.

1) Lido Staking With ETH 

Any amount of ether that you stake on Lido, on the Beacon chain, will get locked. You won’t be able to unlock this Ether until Phase 2 of Ethereum happens when they change from PoW to PoS. However, for each amount of staked ETH, you receive the same amount of stETH in return. ETH and stETH peg 1:1.

You can move stETH around and trade it at will. This liquid staking allows you to use your stETH in various DeFi options and get passive income.

Moreover, self-staking ETH requires you to stake 32 ETH and technical know-how. You also need specific equipment and be online 24/7/365. Otherwise, you get penalized. Lido staking takes these barriers away. You can stake any amount of ETH. Although your ETH gets locked, you get the liquid stETH tokens.

In addition, Lido gives staking rewards within 24 hours of your deposit. There’s no need to wait for validator activation. Lido staking rewards for ETH, the APR, will grow if more active stakers join. However, it will not exceed Ethereum’s APR. See the picture below for a Lido staking calculator. 

Lido staking calculator

Source: Lido Finance

2) Lido Staking With SOL

When you stake SOL on Lido, you receive the liquid stSOL token. It allows gaining passive staking rewards. However, you don’t need to run your staking infrastructure. You can use stSOL in the Solana DeFi ecosystem. Unstaking is easy. You just swap anytime on the secondary market.

However, stSOL is not a rebase token, like stETH. In other words, you won’t collect new tokens as a reward. Your reward is in the form of appreciated stSOL value. You can swap your stSOL back for SOL. Lido will transfer the accrued SOL rewards to your account, upon redemption. In turn, you can unstake this SOL and get liquid SOL, after 2-3 days. So, it’s also possible to swap on the open market. For example, Saber and Raydium have supported pools for this. You can find an extensive explanation on the liquid Lido staking page for Solana.

SOL to stSOL in one click ⚡️

You can now stake your $SOL with Lido in one click using the @slope_finance wallet!

Earning yield on your SOL and securing the network has never been easier. pic.twitter.com/dADDKwlyKK

— Lido on Solana (@LidoOnSolana) June 29, 2022

3) Lido Staking With KSM

You receive your staked KSM rewards every 24 hours. There are no bonding or unbonding periods, like with third-party protocols. You also minimize the risk of a KSM slashing event. 

2/ ⛓ Lido is a staking derivatives protocol and one of the first apps to support xcKSM, which will be used to securely provide access to $KSM and relay chain staking functionality from the Moonriver-based EVM environment.

Learn more 👇https://t.co/bmzuGXgCBu

— Moonriver Network (@MoonriverNW) February 18, 2022

Your stKSM is a rebasable token. Very much like stETH. Each staking day, your balance increases. Kusama currently holds the highest Lido APR percentage, at 21.1%. More information is available on the Lido Kusama staking page.

4) Lido Staking With Polkadot

Polkadot is the latest addition to the Lido staking ecosystem. With Lido staking, you can stake your DOT on Polkadot/Moonbeam. You receive daily rewards. The liquid stDOT token gives you access to the DeFi ecosystems of Moonbeam and Polkadot. 

You can stake and unstake at will. There are also various yield opportunities. All across Polkadot. The stDOT token is a rebasable token with daily rewards. You can also reduce the slashing risk when using the ledger splitting system. So, that is when Polkadot splits staking rewards among nominators.

Moreover, your liquid stDOT token can earn yield in various ways. For example, on Moonbeam. You can use your staked DOT as collateral in Curve stable pools. You can keep your cross-chain DOT, or xcDOT, in your MetaMask, unlike DOT. The advantage of Moonbeam is that it is fully Ethereum compatible. More information is in this Lido blog.

Lido on Polkadot is here!https://t.co/gJh5AX3z6Z 🏝️

Stake your DOT with Lido for daily rewards and full control over your staked tokens. pic.twitter.com/VilI5dTsLd

— Lido (@LidoFinance) May 31, 2022

5) Lido Staking With Polygon (MATIC)

Stake MATIC with Lido and receive stMATIC. As a result, you can use these tokens across the DeFi ecosystem of Polygon. It is an ERC-20 token, but it’s not rebasable. This means that your stMATIC amount doesn’t increase on a daily basis. However, your stMATIC value changes. This depends on how many staking rewards you earned, relative to MATIC.

LIDO is coming to #Polygon@shard_labs is bringing the Lido Liquid staking solution to Polygon. Users will be able to stake $MATIC & get stMATIC in return for use in other DeFi protocols. Polygon will bring blockchain infrastructure to the masses.

🌐: https://t.co/RXmyCCEoKg pic.twitter.com/VnPLbbdCEB

— Polygon – MATIC 💚 (@0xPolygon) September 3, 2021

Lido added Polygon in early March 2022 to their staking ecosystem. For more information, check their blog

Is Lido Staking Safe?

Staking with Lido has some potential risks. Here’s a list of six risks that can occur when staking with Lido.

  • Smart contract security—Bugs or a vulnerability. However, Lido has an open-source code. They also underwent various audits.
  • ETH 2.0 risks:
  1. Technical risk—ETH 2 may have some risks. So, any bugs in ETH 2 bring a slashing or fluctuation risk.
  2. Adoption risk—In case that ETH 2 fails, there may well be a price difference between stETH and ETH. For instance, when there’s a lack of adoption for ETH 2.
  • DAO key management risk—A part of the staked ETH funds can become locked. For example, when signatories across a certain threshold lose their key shares.
  • Slashing risk—If a validator fails, up to 100% of staked funds can be at risk. As a result, Lido uses a variety of reputable node operators. Out of Lido fees, they also pay an insurance.
  • stETH price risk—stETH can de-peg from ETH.

One safe way to stake with Lido is to stake directly on your Ledger hardware wallet. This way your coins are safe since you don’t connect your wallet to the internet. This video explains how to do this:

Conclusion

We showed you how you can stake the five available crypto tokens on Lido Finance. We went into detail for each individual token. Furthermore, we also showed you the associated risks when staking with Lido.

Lido Finance is claiming a seat on the front row in the current crypto space. The Ethereum Merge is something we all look forward to, and Lido is at the forefront of this.

⬆️Also, for more cryptocurrency news, check out the Altcoin Buzz YouTube channel.

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Comparing Alternative Bitcoin Bridges and Wrapped BTC

Comparing Alternative Bitcoin Bridges and Wrapped BTC

Comparing Alternative Bitcoin Bridges and Wrapped BTC

There are now many options to bridge Bitcoin for use on various blockchain networks. However, some have distinct benefits over others. In this article, we will explore the differences between Bitcoin bridges.

Bridging Bitcoin provides a way to bring the asset to decentralized finance (DeFi). Native Bitcoin cannot be used in DeFi protocols, so it needs to be bridged, wrapped, or tokenized.

Furthermore, Wrapped Bitcoin (WBTC) was the first protocol to tokenize the asset, and it is the current industry standard. It is an ERC-20 wrapped version of the asset used on Ethereum-based protocols and networks. Additionally, there is currently 263,028 WBTC in circulation, giving it a market cap of $5.26 billion at current prices.

The primary advantage of WBTC is that it is the industry standard, used, and accepted in most places. Wrapped BTC brings the power and trust associated with Bitcoin into the DeFi industry. Furthermore, it enables Bitcoin’s deep liquidity and large volumes to be injected into dApps and smart contracts.

The main disadvantage of WBTC is Ethereum gas fees, which can be astronomical during peak demand periods on the network.

Alternative Bitcoin Bridges

Users are migrating to alternative Bitcoin bridges and tokenization to avoid the heavy transaction fees. One such option is Binance Bridge 2.0, which launched in March.

The Binance Bridge allows wrapped tokens and ERC-20 tokens to be bridged into the BEP-20 Binance ecosystem. Furthermore, the system allows users to wrap non-BEP-20 tokens and use them as BTokens with the BNB Chain ecosystem. Additionally, all bridged BTokens are protected by the “Zero Trust Solution” and pegged to the original asset at a rate of 1:1.

The advantages of using the Binance bridge include speed and low costs. Additionally, Binance has an excellent track record for security and reliability.

Another Bitcoin bridge that has grown in popularity is the Avalanche bridge with the BTC.b token. This enables users to bring Bitcoin into the ever-growing Avalanche ecosystem. Avalanche also has advantages of high speed, low-cost DeFi compared to alternatives on Layer 1 Ethereum. Furthermore, Avalanche added native support for Bitcoin earlier this month.

With the release of @CoreApp_, the Avalanche Bridge has added support for bridging native Bitcoin to #Avalanche

This new functionality unlocks half a trillion dollars of value on the Bitcoin network, allowing users to put their $BTC to work on Avalanche🤝https://t.co/CHNQ7ck2oz

— Avalanche 🔺 (@avalancheavax) June 22, 2022

There are other Bitcoin bridges, such as RenBridge. This dApp allows users to mint real Bitcoin and Bitcoin Cash as ERC-20 tokens on the Ethereum blockchain, such as renBTC and renBCH.

Bridge Disadvantages

One main concern with bridges at the moment is security. They have become a target for hackers and malicious actors in recent months. Last week, the Harmony blockchain network lost $100 million from an exploit of its Horizon bridge. There are also custodial risks with bridge operators conspiring to control the assets.

⬆️For more cryptocurrency news, check out the Altcoin Buzz YouTube channel.

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Euler Finance – A Review

Euler Finance – A Review

Euler Finance - A Review

The importance of lending and borrowing cannot be emphasized enough, not just in the decentralized finance (DeFi) ecosystem but in any financial sphere.

Non-custodial permissionless lending protocol Euler Finance, however, brings a new twist to lending and borrowing in the DeFi space. The permissionless lending protocol focuses on providing its users with the opportunity to lend and borrow crypto assets. On Euler, users will also be able to borrow a wide array of ETH-based tokens. Therefore, essentially democratizing the crypto assets interested persons can lend or borrow.

This article covers important details about Euler Finance, how it works, its features and innovations, and what makes it different from other lending protocols available today.

More on Euler Finance

As previously indicated, Euler is a permissionless, non-custodial lending protocol. Built on the Ethereum Chain, the protocol basically enables users to borrow and lend almost any crypto asset. Furthermore providing users with the opportunity to earn interest on their crypto holdings. They will also enjoy a secure hedge against volatility in the crypto space. All this is also made possible on Euler Finance without the need for any third-party interaction.

Apart from the complete elimination of third-party bodies, Euler introduces a number of amazing features. These features are also unique and new to the DeFi ecosystem. Some of these features include: MEV-resistant liquidations, protected collateral, permissionless lending, reactive interest rates, etc.

Lending and borrowing is an important financial activity. In conventional scenarios, lenders and borrowers interact via third-party organizations like banks, etc. DeFi lending platforms like Compound and Aave change this narrative by eliminating the need for third-party organizations. Euler Finance further transforms decentralized borrowing and lending by accounting for the risks associated with crypto lending and borrowing. The protocol also boasts of allowing its users to borrow a greater array of crypto tokens than ever before.

Important Euler Features

Several features make Euler Finance different from other available decentralized lending and borrowing protocols. Some of these features include:

  • Euler Permissionless Listing – The non-custodial protocol allows its users to decide what crypto assets it would list. Also, any WETH trading pair on Uniswap v3 will also receive support on Euler.
  • Reactive Interest Rates – Euler interest rates automatically reduce governance and borrowing costs. Therefore, resulting in maximum capital efficiency.
  • Multi-collateral Stability Pools – The protocol also makes it possible for lenders to swap their crypto holdings for discounted collateral assets during liquidation periods.
  • Asset Tiers – Euler asset tiers also help maximize capital efficiency while keeping systemic risk at the lowest possible level.

Other important features include MEV-resistant liquidations, protected collateral, etc.

How To Borrow on Euler Finance

1. The first step to borrowing on Euler is to activate the asset that is to be borrowed. This can be done on the Markets’ table icon on the homepage.

2. After activation, click on the “Borrow” icon in the Quick action menu.

3. Next is to select the Euler sub-account of interest.

4. Select the asset to be borrowed.

5. Input the desired amount. You can also either select:

  • The Max button – is represented by liquidation x 1.5 (not recommended except for self-collateralized loans).
  • Safe Max button – this results in a health score of 1.25 (recommended but not for self-collateralized loans).
  • Liquidation button – borrowers usually have a health score of 1.
Euler (EUL) Tokenomics

Euler (EUL) is the native token of Euler Finance protocol. EUL is an ERC-20 token that also doubles as a governance token on Euler. The total supply of EUL tokens is 27,182,818.

Euler Finance EUL allocation

  • Also, 25% of the total supply will go to borrowers on community-selected markets over a four-year period.
  • 1% will go to users who participated during Euler Finance’s soft launch.
  • 2.5% will go to stakers.
  • 9.082% to an ecosystem treasury, unlocked (see Treasury).
  • 8.869% to governance partners.
  • 3.05% liquid assets deployed by the Treasury.
  • 25.85% to investors in Euler XYZ Ltd.
  • 4% will go to early startup Encode.
  • Lastly, 20.65% will go to employees, advisors, and consultants of Euler XYZ Ltd.

In conclusion, Euler Finance has been in the limelight in recent times for all the right reasons. According to DeFi Llama, the protocol recorded a 160% growth in its TVL over the last 30 days. That is up from $89.91 million on May 31 to $247.41 million on June 27, 2022. At the time of writing, Euler TVL is at $245.48 million.

⬆️For more cryptocurrency news, check out the Altcoin Buzz YouTube channel.

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Alpha Venture DAO (ALPHA) Makes Unsuccessful Attempt at Breaking out Above $0.135

Alpha Venture DAO (ALPHA) Makes Unsuccessful Attempt at Breaking out Above $0.135

Alpha Venture DAO (ALPHA) has been increasing since the daily RSI generated a bullish divergence on June 18. However, it has yet to reclaim any important horizontal resistance levels.

ALPHA has been falling since reaching an all-time high of $2.94 on Feb 5 2021. The downward movement led to a low of $0.093 on June 18. This amounted to a decrease of 96% since the all-time high.

The entire downward movement has been contained underneath a descending resistance line, which has so far been in place for 518 days.

While the RSI is at a new all-time low, it is neither oversold nor has it generated any bullish divergence. So, there are no signs of a potential bullish divergence present. 

The main support and resistance levels are at $0.04 and $0.42, respectively.

Growing bullish divergence

The daily chart provides a slightly more bullish picture than the weekly one. The main reason for this is the bullish divergence (green line) that has developed in the RSI. 

If the bullish divergence plays out, it could lead to an upward movement towards the $0.175 horizontal resistance area, which also coincides with the aforementioned descending resistance line.

Despite this bullish divergence, the RSI has yet to move above 50, a level which is considered a sign of a bullish trend.

Short-term ALPHA movement

Cryptocurrency trader @Thetradinghubb tweeted a chart of ALPHA, stating that a reclaim of the $0.135 resistance area could lead to a significant upward movement.

But the price failed to reclaim this $0.135 area and was rejected by it instead (red icon), initiating the ongoing downward movement.

Currently, the price is trading just above the 0.618 Fib retracement support level at $0.11. If this level fails to initiate a bounce, the price would likely decrease towards its yearly lows of $0.094

For Be[in]Crypto’s latest bitcoin (BTC) analysis, click here

Disclaimer

All the information contained on our website is published in good faith and for general information purposes only. Any action the reader takes upon the information found on our website is strictly at their own risk.


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