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February 3

February 3

This week, Celsius releases a withdrawal process for users, a Cardano-based stablecoin launches, MetaMask has updates for privacy and a cross-chain brokerage appears on Arbitrum testnet.

February 03, 2023

To the DeFi community,

This week, CeFi lending firm Celsius has released a withdrawal process for users who had their crypto in its custody when it halted withdrawals in June 2022.

It has provided a list of eligible users who can withdraw 94% of the qualified custody assets, with the process laid out in a 1,411-page court filing with the US Bankruptcy Court for the Southern District of New York.

Eligible users will be asked to update their Celsius account with AML and KYC information before withdrawals are processed, as well as details about the withdrawal destination. The remaining 6% of assets may be subject to a decision by the court at a later date.

The news comes at the same time as a report emerges, that revealed that Celsius hid $800 million in losses, while making risky investment bets with customer funds.

Celsius provided an update on the upcoming withdrawal process for certain assets in certain Custody accounts. cases.stretto.com/public/x191/11…
— Celsius (@CelsiusNetwork)
3:39 AM • Feb 1, 2023

A new Cardano-based stablecoin, known as Djed, has attracted almost 30 million Cardano (ADA) tokens as collateral just days after launch.

It has a reserve ratio of nearly 600%, meaning each Djed is backed by 6 times its value in ADA, worth over $10 million at current prices. Djed is a joint development by Cardano code maintainer IOG and Coti, a Layer-1 blockchain.

Djed requires 400-800% collateral value to be posted before it can be issued to a user and is designed to be stable during market stress. It has a circulating supply of 1.7 million tokens, while its reserve token, Shen, has a supply of 20 million and is worth 38 cents each.

Djed is LIVE!!!
medium.com/@cotinetwork/a…
Visit djed.xyz
$DJED $SHEN $COTI @InputOutputHK@Cardano
@Cardano_CF
— COTI (@COTInetwork)
12:02 PM • Jan 31, 2023

MetaMask wallet has added its new security and privacy features, while making it easier to switch between Remote Procedure Call (RPC) providers. The new features give users more control over their data, with the ability to toggle on/off settings that control data transfer to third-party services and improved RPC provider switching.

The update comes after ConsenSys, the owner of MetaMask and Infura (the default RPC provider on MetaMask), faced scrutiny over collecting user data.

Starting today, extension users will see an updated experience when creating a new wallet, as well as an update in their privacy and security settings.
We have updated the 🦊 extension to maximize the control you have over your data.
— MetaMask 🦊💙 (@MetaMask)
12:48 PM • Feb 2, 2023

Prime Protocol has launched its testnet on Arbitrum, becoming the first cross-chain brokerage that allows users to take out margin on their entire account, regardless of which chain they are on.

The platform is designed to reduce liquidation and bridge hack risks. Prime Protocol uses Axelar's messaging technology to enable cross-chain transactions and is integrated with Wormhole for non-Ethereum based chains.

The platform may launch a token in the future and run incentives to boost liquidity. Prime Protocol is integrated with Polygon, BNB Chain, Avalanche and Fantom.

Sentiment is becoming much more positive in the DeFi world, as development continues, prices rise and collapsed centralized platforms begin to find resolutions.

Celsius’ release of withdrawal guidance to users has been a positive turn, as some users will be made almost whole after the platform went under, months ago. At the same time, staked ETH withdrawals on the Ethereum network are inching closer, with the Shanghai upgrade to be tried out on testnet in a matter of days.

It is also great to see new and innovative projects continuing to emerge despite the recent bear market, in particular Prime Protocol experimenting with cross-chain margin positions on different networks.

The cherry on top for this week is price action across the market looking much more positive, with a local bottom appearing to have formed on most tokens. This was especially true after the Federal Open Market Committee (FOMC) meeting earlier this week.

Of course, we must also keep in mind that there are still some large centralized entities in the space that continue to make strange headlines – there is still some room for potential damage.