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Catch Major Price Moves with MarketWizard App

Introduction

Perhaps what is interesting about the modern world is its rate of tech evolution and innovation. From light bulbs, cars, washing machines, telephones, and roughly 30 years ago, the groundwork was laid for the Internet.

The world has never been the same again. It was dubbed web 2, the publishing age, since anyone, anywhere could create content and “push” it to the other side of the world. The world became a village.

Fast forward and the 2010s brought us the blockchain. Seven years later, the concept of dapps took root. Dapps were ordinary applications whose back end ran on a distributed, smart-contract ledger. Ethereum is still the favorite.

With Ethereum, there is just more than what meets the eye. Yes, there is smart contracting and its middleman, eliminating automation which also fostered innovation. This innovation seeped into the restive financial industry and now we have decentralized finance, or DeFi.

DeFi: It is just the beginning.

DeFi is open finance where owners of ETH—or native currency of a smart contract’s platform say Cosmos (ATOM), for instance, can borrow or lend their holdings for a stable coin. DeFi has revolutionized traditional finance. And Ethereum is the base for this welcomed innovation.

But DeFi is not specific, it is all-encompassing, and they involve exchanges and lending apps. At the time of writing this, there were over $900 million worth of ETH locked up in DeFi applications.

Ethereum (ETH) Locked in DeFi dapps

The most popular is MakerDAO, where borrowers received DAI, a stable coin with ETH as collateral. Lenders in the meantime can earn above rate interest rates.

But DeFi can’t function without oracles, or portals that convey useful, reliable—and always vetted real-world, off-chain information, that can trigger smart contracts which also run DeFi apps.

Thing is, Ethereum and similar platforms require trusted oracle for valuations, settlements, and dispute resolution. And DeFi and developers need to resolve the “oracle problem” before there are other advances.

This is vital because should secure oracles that provide stable data feeds are compromised then DeFi as we know will collapse.

Otherwise, the closed-looped, self-contained nature of ordinary smart contracts won’t allow the full utilization of certain DeFi apps that may require external data for activation.

What is Tellor?

Providing a solution to this is Tellor. It is an Ethereum-based decentralized and secure oracle for DeFi dapps. Tellor is an easy, implementable solution through which DeFi dapps can receive high value data for smart contracts.

Their data feeds are stable and reliable because they make use of staked miners who compete through Proof-of-Work to submit official value for requested DeFi data.

TRBs are mined with each successful data point but a portion of it, 10%, is taken by the company for ecosystem development. This developer share goes to the treasury of the founding team to finance the team’s effort.

Tellor says this is necessary to “maintain a decent token price for profitable mining and a secure network” consequently aligning incentives between miners and Tellor’s founding team.

Tellor: Decentralized Oracle and a Hybrid Consensus Algorithm

Tellor is a project that was built from a need. Its creators had earlier created a startup, Daxia, a derivatives protocol on Ethereum, which required an oracle.

How Tellor (TRB) Decentralized oracle for DeFi dapps work

Daxia would create tokens that represented long, or short sides of a trading pair. To function, an oracle was required for smart contracts to be executed.

For their needs to be met, the team built Tellor, a decentralized oracle that fully met their needs.

Aware that DeFi has the potential of being a multi-billion industry, Tellor has built a network of staked miners where through Proof-of-Work, they can reliably channel secure and stable pricing data for the burgeoning industry.

The Tellor Oracle is an on-chain data bank where miners compete to add data points in return for rewards called “Tributes” or TRB. For miners, they earn a base amount of 5 TRB for every submission and tips as incentivisation.

Interested parties then pay Tributes to submit a request for data to their decentralized Oracle. The oracle then settles on a best funded query and creates a Proof-of-Work challenge for the miner to solve. Each query collects pricing data and makes it on-chain.

As another cushion of security, miners are required to stake their Tributes. To take part, a miner must stake 1,000 TRB. This is to dis-incentivize those who may want to game the system.

The combination of Proof-of-work, a gold standard in consensus, and staking gives the decentralized oracle an edge over competitors. Besides, there is quality since queries are made every 10 minutes.

Tributes is key to Tellor, and their work is to:

  1. Provide security by incentivizing miners and required for dispute resolution—charged as fees. They are also needed for staking.
  2. For the building of a striving and robust Tellor ecosystem and community. This is only achieved by ensuring continuous distribution of the token.
  3. Ensure a sustainable system.

Team

Tellor TRB team

Brenda Boya is the CEO and co-founder. She is an Ethereum developer and a former economist in the US Government. Before that, she was the lead developer and VP of Daxia.

Nicholas Fett is the CTO. He’s actively designing and developing a system for off-chain data access and validation on Ethereum. Before that he was the founder and CEO of Daxia.

Michael Zemrose is the co-founder. He describes himself as an expert in developing, communicating, executing, and sustaining strategic initiatives. Before that he was the Chief Strategy Officer at Daxia.

Partnership

Binance Labs, ConsenSys, and MakerDAO are investors and major partners.

Last year, they also partnered with Radar Relay, a P2P trading platform.

Tokenomics and Distribution

TRB, as aforementioned, is an Ethereum-based utility token that powers the Tellor system. Notably, they didn’t carry out an ICO. Instead, they opted for a developer share. 10% of miner rewards is diverted to the founders’ treasury.

“A dev-share allows us to get the necessary financing we need to create a sustained and secure oracle network, but only if we really deliver a cutting-edge product that’s needed. If we don’t, then the token value will plummet and there won’t be any interest in Tellor, be it miners or actual projects using the oracle.”

“So instead of the project dying while already having raised millions in dollars, we would be left without anything in hand and a failed project. This commitment and proper incentive are what we are after.”

At the time of press, the token is trading at $6.61 with a 24-hour trading volume of $226,265 according to streams from CoinGecko, a coin tracker.

At this level, the token is up 17% in 24 hours and 130% month-to-date. It is down 22% from its all-time high of $8.73 and 35X from its all-time lows of $0.18 registered on Nov 10, 2019.

Tellor TRB Price Action

There will be 1.05 million TRB tokens in total and 960k are already in circulation. The token’s market cap stands at $6,437,774 and is therefore ranked at 270.

TRB is actively traded on IDEX, where the TRB/ETH is the most popular trading pair drawing daily trading volumes of $74,994. Other supporting exchanges include Vitex, Citex, and Bilaxy.

Tellor TRB supporting cryptocurrency exchanges

Furthermore, TRB is available at Bidesk.

Short term Catalysts

  1. Tellor is a project created out of necessity. The team understands what they are trying to solve and their solution resonates well for DeFi dapp creators. As a reflection of their goals, the token soared 33X from its all-time lows of $0.18.
  2. The team tight-knit and experienced. Tellor executives were part of Daxia, a derivatives protocol based on Ethereum.
  3. Tellor has received investments from DeFi industry leader MakerDAO and Binance Labs.
  4. There are rumors that Binance DEX could list the token. Binance DEX is massive and is powered by Binance’s technology. Should they list, the token’s liquidity will increase and that is a net positive.
  5. The idea of giving up and opting for a developer share instead of an ICO reveals their true intention and urge to see the project blossom.

Long-term Catalysts

  • The amount of ETH locked up in DeFi platforms continue to rise. It recently surged past $1 billion mark. Supportive fundamentals from DappRadar further reveals that more people who interacted with blockchain experimented with Ethereum and specifically DeFi. This is huge and for a platform that serves DeFi dapps, it’s only a matter of time before they receive more investments from Fortune 500 companies and the likes.
Tellor Oracle Adoption cycle
  • Their emphasis of security and decentralization is attractive for purists, and over the long term and if DeFi blossoms, this will be a major talk point more so if there is exploitation of other oracle solutions. The security of the network is directly proportional to TRB market rates. The higher, the more secure the platform. Additionally, Tellor’s smart contract has been audited by CertiK.
  • TRB total supply is relatively low and fixed. There is no pre-mine. Tellor’s popularity will only mean more demand for TRB, and market forces will mean a repricing beyond the token’s all-time high.
  • Tellor can work on any chain with smart contracting capability. This means gathering cross-chain information is possible.
  • Development team is working on “creating a secure, scalable, and on-demand Oracle to help smart contracts achieve their true potential.” Research on Zero-knowledge submissions to reduce gas costs and to prevent mirroring, and automatic reporting and monitoring is already been done.

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The Background of Lending

Lending, the act of transferring excess wealth to those who can put it to work is as old as the invention of money itself. Records show that lending pre-dates the Roman and Greek cultures and was actively practiced by Mesopotamians. Like today, there were stringent rules guiding how borrowers and lenders co-existed.

Obviously, there has been an evolution thanks to the technological breakthroughs from the 80s through to the early 2000s. Needless to say, the needs of borrowers and lenders are pretty much the same: use these loans to fill a gap.

Like the way it has been since time immemorial, the modus operandi is pretty much the same. The lender extends excess capital in his/her position to the borrower with the trust that the latter would pay back on time and with interest or whatever rules there is to the binding contract. Often, and this is because of opportunity cost, interest will cushion the lender from inflation and other principal wiping movements. Meanwhile, the loan forwarded to the user, regardless of the mechanics guiding their arrangement, will help foster growth in one way or another.

With the same premise of lending that, there has been change. However, the fundamentals of, and attitudes towards the same is constant. From the Code of Hammurabi to the CDOs (Collateral Debt Obligations), largely blamed for the bubble of the Great Financial Crisis (GFC), and the advent of cryptocurrencies, lenders and borrowers will be always be part of the process for the benefit of all.

In the age of blockchain and cryptocurrencies, holding of valuable digital assets is yet another reason for loaning out the excess in the quest for profitability and liquidity. Of the many cryptocurrency lending platforms, Nexo is a standout. For simple reasons.

Introducing Nexo

Nexo, powered by Credissimo, is a blockchain-based overdraft system where users can instantly borrow short term cryptocurrency loans based in Zug, Switzerland. The platform is automated and users-including hedge funds, miners and general investors, simply deposit supported coins in the Nexo wallet and receive instant cash loan in fiat.

Nexo Business Model

Besides, interested parties can deposit coins-only on EUR, USD, GBP and stable coins as of writing, and earn daily interest from their idle assets. The terms of the loans are spelled by the Nexo Oracle and stored in an audited Ethereum smart contract. While at it, the deposited collateral is secured by BitGo and insured. Some of the platform’s unique features include the lack of credit check, no hidden fees and users need not to pay capital tax gains.

Reasons for choosing Nexo

The Nexo Oracle

Nexo Oracle

The Nexo Oracle is the heartbeat of the platform, governing how loans are distributed, monitoring processes and for data analytics. To determine the credit worthiness of a borrower, it uses a Loan-to-Value ratio (LVT) to the platform’s legacy lenders taking into consideration several variable including market liquidity and depth.

If the Oracle calculates your LVT ratio and finds that it is 50 percent of your deposit, then if you agree to the terms and conditions, you’ll be loaned half of your deposit in fiat.

Interest rates, in APR (Annualized Percentage Rates) are automatically determined by the Oracle, and annualized. However, if the price of the underlying asset drop by half, additional crypto deposit will be required through a margin call.

Nexo supports over 20 cryptocurrencies and tokens. Introducing flexibility, borrowers have an option of repaying in ETH, BTC, Euro, USD and NEXO, the platform’s native ERC-20 “restricted securities” token marketed as SEC-compliant under Regulation D Rule 506 (c). Different from other platforms, token holders receive proceeds from Nexo’s profitability, divided proportional to the owner’s token balance.

Team

Nexo Team

Running Nexo is a dedicated team led by Antoni Trenchev LL.M, the co-founder. Prior to joining Nexo he was the Chief Innovation Officer and the Member of the Advisory Board at Credissimo. There, he was the head of Fintech strategy and concurrently advised on AML and KYC rules. Similarly, Kosta Kantchev, a co-founder. Like Antoni, he was the member of the Advisory Board at Credissimo.

Georgi Shulev is yet another co-founder. He’s an expert in banking, drawing useful experiences from Unicredit Bank Austria, Lehman Brothers, and the European Investment Bank.

Nexo Team

Evidently, Nexo has continued to flourish over time and at the moment, there are over 120 employees as Vasil Petrov, the CTO, George Manolov the business development head, Teodora Atanasova in charge of Business Development & Investor Relations, Ivan Kostov in the marketing department and Vasil Stoilov who’s in charge of risk management.

Advisors are Michael Arrington, the founder of TechCrunch and Arrington XRP Capital. The Arrington XRP Capital is perhaps the world’s first digital asset management fund that is denominated in XRP and incorporating xRapid in their processes. Michael has been voted on more than one occasion as one of the most powerful individual in the internet.

Trevor Koverko, the founder of Polymath. Through Polymath, Trevor plans on porting the multi-trillion securities market on the blockchain by the latter being a platform where startups can issue compliant securities token. Lastly, there is Paolo Tasca, the Executive Director of University College of London Blockchain Center.

Roadmap

Behind Nexo’s drive is the team’s ambition of solving inefficiencies in the lending market. Coming up with innovative and convenient financial solutions while leveraging the blockchain, Nexo’s is gradually becoming a solution to projects’ or individuals’ financing needs in a new digital economy.

The first Airdrop campaign was completed in Feb 2018. By March they had finalized their token pre-sale. In April, they completed their main token sale, launched their operations, lending out USD with ETH and BTC as security and the token was listed in several exchanges. In May, the initialized the process of acquiring a FDIC insured US bank, offered Euro support in June and in July launched the Nexo Credit Card.

By Q3 2018, they had automated their KYC, offered support of several cryptocurrencies, launched a Nexo mobile wallet and introduced an affiliate program. By end year, they had increased their overdraft limits and issued their second air drop.

In Q1 2019, they finalized their acquisition of the FDIC insured US bank, launching depositing accounts in the process.

Partners

Nexo Partners and Membership

As a regulated financial institution, Nexo has several strategic partnerships. Through their deal with BitGo, deposits are secure. For KYC, AML and any form of compliance, Confiado ease the process. Meanwhile, their collaboration with Securitize “and the integration of the DS protocol allows for tokenized securities issued by Securitize to be staked as collateral for Nexo’s instant credit lines, proves an incredibly powerful utility to trillions of dollars’ worth of traditional assets. Besides, Nexo works closely with UCL CBT and TrueUSD, which is “money built for the new global financial system.”

Nexo is a member of several associations including the Enterprise Ethereum Alliance (EEA), the Bitcoin Foundation, Crypto Valley, Swiss Finance + Technology Association and Bitcoin Association Switzerland.

Token and Fund Distribution

Aforementioned, Nexo is based on the Ethereum platform and therefore its native token complies with the ERC-20 standard. According to Nexo, their native token, NEXO, would be used to retain loyal customers through multiple airdrop campaigns and to incentivize customers and supporters. Each NEXO token bears dividend-paying features. As a utility, there will be a discount for borrowers who repay loans in NEXO.

Nexo dividend Token

Even so, the token is traded as a restricted security following the application of Nexo to the SEC for exemption. For successful launching, the team needed $52.5 million, the hard cap, which they crowd funded in an initial coin offering that took place from Mar 6 to April 1 where KYC was mandatory and investors from China barred.

Nexo ICO Summarized

During the main token sale, each token retailed at $0.1. In total there were 525 million NEXO tokens available for investors. The 525 million translated to 52.5 percent of the total token generated fixed at 1 billion. Of this, 25 percent was set aside for Overdraft Funding Reserves, 11.25 for founders and vested quarterly, 6 percent for the community and Airdrop campaigns and 5.25 percent to meet the need of Advisors, Legal and general PR. BTC and ETH were the only accepted coins during the public sale.

Nexo Token distribution

Fund Distribution

Nexo Fund Distribution

From the collected funds, 80 percent will go towards crypto overdraft funding, 8 percent towards IT development, 7 percent to cater for operational expenses and 5 percent towards marketing and growth.

ROI and NEXO Performance

Nexo ROI and Price Performance

Available in several exchanges as HitBTC, Hotbit, Mercatox and Yobit, NEXO’s 12-month volatility is 125.82 percent. Its maximum draw down is 91.61 percent and it is 12 month ROI-from launch and trading is 26.29 percent.

However, the ICO ROI is -27.05 percent at spot prices. The token’s market cap is $40,849,737, trading $5,055,616 in 24 hours, adding 3.75 percent. There are 19,048 NEXO holders and there have been 152,611 transfers even though the coin is down 23.59 percent against ETH but up 93.88 percent against ETH in the last year.

Short term Price Catalysts

The success of any lending platform depends on its ability to deter hackers and keep customers’ deposit secure. Nexo has that covered. Through their partners as renowned SEC-approved custodian, BitGo and Confido, the platform can assure customers of their assets’ safety while keeping track of borrowers.

The second gauge has to the speed of approval and disbursement of loans. Because of automation made possible by smart contracts and the Nexo Oracle for LVT calculation, Nexo has been successful distributing over $700 million from their wide customer base exceeding 200k.

Nexo User Review

There is diversity. Nexo’s customers are global, spread over 200 jurisdictions from where over 45 currencies are supported. Cumulatively, there are over $1 billion instant loan requests placed on the platform.

Drawing from this, it is no surprise that they are planning to launch a mobile app for iOS and Android, and later a Credit Card for their European clientele to even better the customer experience. Last month, they added TRX as one of the supported digital asset customers can borrow instant loans from. Recently, they paid out $2.409 million as dividends for token holders from where each NEXO token drew $0.0033 as dividend. There was no withholding tax imposed.

Nexo Dividends Explained

On top of this, Nexo is working on Utilities 2.0 for the NEXO token. Upon finalization, the token will bring a plethora of new amazing utility features, drawing demand for the token with “better interest rates on all Nexo products Premium features and functionalities Nexo Card cashback.”

Long term Price Catalysts

The confidence for investors is from the quality of the Nexo team. Before diverging and settling on the blockchain, they played key roles in Credissimo. Likewise, the involvement of Michael Arrington, an influencer in the crypto world and the head of a hedge fund denominated in crypto is good news. That is perhaps the steam that keeps the team going.

At the time of writing this changing hands at $0.072250, but given the trend of the crypto lending market, projected to attract more users and even balloon to their trillions in coming years, Nexo investors will not only benefit from superior return on investment but from the low APR as they would be  categorized as loyal and incentivized better.

Nexo Trillion Market

Presently, their APR is 5.9 percent per year while lenders can earn the same interest rate on stable coins as TrueUSD, one of their partner, but plans to expand that to BTC, ETH and even XRP.

Further, their strategic partnership with Terra to expand the cryptocurrency market in South Korea, from where Nexo has a huge following will further cement Nexo as a leading crypto lending platform in the world. In their deal, the Zug-based crypto lending platform will accept Terra token deposit from the soon-to-be launched lending platform focusing on the SE Asia market.

Already, Nexo has a partnership with TrueUSD but the deal with Terra, a stable coin that incorporate algorithm to maintain the price of its token at a desired rate via another token, Luna, impressed Nexo’s executives.

Enjoy #DeFi with the Best Prices across Exchanges

Peer to Peer, No KYC, Audited and Insured Smart Contracts