Polymarket Taps Palantir To Police Sports Prediction Markets
Prediction Market News XRPPrediction market platform Polymarket announced Tuesday it is partnering with data analytics company Palantir Technologies to build a surveillance system for its XRPsportsbetting markets. The two companies will use the Vergence AI engine, developed by Palantir and intelligence systems provider TWG AI through a joint venture formed last year. The system is built to monitor trades, screen out restricted users, detect manipulation, identify insider activity in real time, and produce documentation for compliance and enforcement purposes. XRPPolymarket CEO Shayne Coplan said the partnership allows the company to apply "world-class analytics and monitoring to sports markets while building tools that can help leagues and teams maintain confidence in the games themselves." Palantir was co-founded in 2003 by Peter Thiel, Alex Karp, and others. The firm builds data integration and analytics tools used by the U.S. military and large enterprises. Thiel's venture firm, Founders Fund, led a $45 million Series B investment in Polymarket in 2024. Palantir CEO Alex Karp said in a statement that the initiative sets a new standard for sports market integrity. The partnership comes as Polymarket faces regulatory pressure in the United States. Rep. Ritchie Torres (D-NY) sponsored the Public Integrity in Financial Prediction Markets Act earlier this year. Rival platform Kalshi has publicized its own enforcement measures in recent weeks. It named a former video editor for YouTube creator XRPMrBeast and a California political candidate as early targets of its compliance actions. Kalshi CEO Tarek Mansour has separately spotlighted Poirot, a proprietary surveillance system tied to 200 completed investigations. Sports markets drove 69% of Kalshi's wagers and 40% of Polymarket's wagers last week, according to a Dune dashboard. Both platforms are in early-stage fundraising discussions that value each at around $20 billion, the Wall Street Journal reported Saturday. The U.S. Commodity Futures Trading Commission filed a friend-of-the-court brief asserting exclusive jurisdiction over futures-based gaming contracts. DraftKings Predictions has meanwhile expanded to 38 states, including California, Florida, Georgia, and Texas, where traditional sports wagering is not permitted. Polymarket is also working to re-enter the U.S. market after acquiring a CFTC-regulated platform and has opened a waitlist for users. For TWG AI, the Polymarket deal carries added relevance because its parent company holds investments in sports franchises such as the Los Angeles Dodgers and Lakers. XRPCrypto
HYPE Surges 5% as Hyperliquid Tops $1.4B in Oil Perpetuals Volume
Hyperliquid News$BTC XRPHyperliquid's native token $HYPE rose to an intraday high of $35.28 on Tuesday, extending a rally that has taken it more than 120% higher over the past year. The gain came as crude oil perpetuals trading on the decentralized exchange reached volumes that placed it among the platform's top markets. Tokenized crude XRPoil perpetuals recorded $1.39 billion in 24-hour trading volume on Hyperliquid. That figure trailed only Bitcoin at $3.55 billion and outpaced Ethereum, which logged $898 million, according to exchange data. Crude oil also ranked second for liquidations in the past 24 hours, with $56 million in positions wiped out, behind Bitcoin's $111 million. The surge in oil trading is tied to the escalating global tension. That event pushed traders seeking exposure to energy markets toward Hyperliquid's permissionless products. The platform now holds over $5 billion in total open interest, $5.71 billion in 24-hour volume, and $4.06 billion in total value locked, according to CoinGlass. Hyperliquid also announced a system upgrade on Tuesday. The platform said its portfolio margin feature will move from "pre-alpha to alpha phase" in the next network upgrade. The upgrade applies to accounts under $500,000 and requires users to meet weighted volume thresholds to gain access. Nansen research analyst Nicolai Søndergaard said that the upgrade lowers systemic liquidation risk through improved dynamic margin scaling and cross-collateral mechanics. He added that Hyperliquid remains "the altcoin darling with the most belief behind it" and continues to attract consistent volume.
RedStone co-founder Marcin Kazmierczak credited HIP-3, Hyperliquid's permissionless market program, as a key growth engine. Open interest across those markets recently hit a record $1.2 billion. Of Hyperliquid's top 30 permissionless markets, only seven are crypto pairs. The remaining 23 cover commodities and equities, including oil, gold, silver, and the S&P 500. Kazmierczak described that composition as "a meaningful shift."
The platform's gains came during a broader Bitcoin advance of 3.4% in the same 24-hour window. Total crypto liquidations reached between $359 million and $365 million across the market. Hyperliquid ranked ahead of competitors such as Aster, Edgex, Lighter, and Jupiter across volume and open interest measures.$ETH
Canaan's Bitcoin Holdings Hit Record High Amid Miner Sell-Off
Bitcoin miner XRPCanaan reported record digital asset holdings in February, separating itself from a wave of public miners that have been selling coins to manage tighter margins. The company disclosed the figures in its February unaudited mining update, released Tuesday. Canaan produced 86 Bitcoin during the month. That brought its total Bitcoin holdings to 1,793 coins, the highest level in the company's history. Its Ethereum reserves also reached a new peak of 3,952 Ethereum. At current prices, the combined treasury is worth roughly $128 million. Chairman and CEO Nangeng Zhang said the company is focused on growing that reserve over time. "We maintain a long-term perspective on building and managing our digital asset treasury," Zhang said. Canaan's Nasdaq-listed shares, trading under the ticker CAN, rose 1% in Tuesday morning trading. The CoinShares Bitcoin Mining ETF (WMGI) gained 2.5% during the same session. Canaan also expanded its operational capacity during the month. Its installed hash rate reached 14.75 exahashes per second. The company acquired a 49% stake in three Bitcoin mining projects in West Texas for $39.75 million, adding capacity in one of the world's largest mining regions. The accumulation strategy stands apart from the direction most public miners have taken since October. Publicly traded mining firms have sold more than 15,000 Bitcoin since then, according to data from TheEnergyMag's Miners Weekly. That period coincides with Bitcoin's decline from a peak near $126,000 to the low-$60,000 range, which squeezed profitability across the sector. Individual sales have been substantial. Cango sold 4,451 Bitcoin in February alone. Core Scientific has announced plans to sell up to 2,500 Bitcoin this quarter. Rising operational costs have added further pressure on miners' balance sheets, deepening the squeeze from lower coin prices. The sell-off marks a break from a trend that took hold earlier in 2025. Many miners had adopted a de facto treasury approach at that time, retaining a larger share of mined coins rather than converting them to cash. Canaan has continued down that path while the rest of the sector moves in the opposite direction.
$BTC $ETH $SOL Today is quite a "tug-of-war" day for the crypto markets. While traditional energy markets are sliding due to the news about the potential end of the Iran conflict, crypto is showing strong resilience. Here are my thoughts on the three biggest themes playing out today, March 10, 2026: 1. Bitcoin’s "Safe Haven" Rebound 🚀 Bitcoin is currently trading around $70,000–$71,000, up about 4.5% in the last 24 hours. * The Sentiment: Investors are moving away from the volatility of oil and looking for "digital gold." * Supply Shock: On-chain data shows exchange reserves are at an all-time low (2.7M BTC). People aren't selling; they are moving their coins to cold storage, which usually precedes a supply squeeze. * The "Strategy" Play: Institutional giant Strategy (MicroStrategy) just confirmed another massive buy of nearly 18,000 BTC, signaling that the "big money" isn't scared of this month's earlier dips. 2. The $MIRA Factor: Verifiable AI is Trending 🛡️ Since we were just discussing @mira_network, it’s interesting to note that the AI sector in crypto is gaining momentum today. * $MIRA Price Action: The token is holding steady around the $0.081–$0.083 range. * Why it matters today: As Trump talks about ending the war "very soon," the market is pivoting back to tech and AI growth. Mira’s focus on verifiable AI is becoming a hot topic because, in a world of deepfakes and wartime misinformation, cryptographically proven data is becoming a necessity, not just a luxury. 3. Altcoin Momentum: Solana and Ethereum * Solana ($SOL): Up over 5% today, currently testing resistance around $87–$91. It has strong momentum, and if it breaks $91, it could run quickly. * Ethereum ($ETH): Trading around $2,045. It’s lagging slightly behind Bitcoin’s gains but showing steady growth as the broader Web3 ecosystem breathes a sigh of relief over the cooling geopolitical tensions. The Bottom Line: The "War Premium" is leaving oil and entering crypto. While the Fear & Greed Index still shows some "Extreme Fear" (around 13), the price action suggests that the smart money is actually buying the dip while the headlines are still scary. Would you like me to keep a specific eye on the $MIRA price or the Bitcoin $71k resistance for you today?
#OilPricesSlide As of March 10, 2026, the oil market is in a state of "controlled panic" as the geopolitical risk premium evaporates following President Trump's "short-term excursion" comments. Here is the technical breakdown of the price levels you should watch today. 📊 Support & Resistance Watch: March 10, 2026 Prices have seen a massive U-turn, falling about 26% from Monday’s peak of $119.50. | Benchmark | Current Price | Immediate Support | Critical "Floor" | |---|---|---|---| | Brent Crude | $88.10 | $88.00 | $84.24 | | WTI (U.S. Oil) | $88.99 | $87.00 | $83.00 | 🔍 Technical Analysis Summary: * The $88–$89 Battleground: Brent is currently hovering right at the $88.10 mark. Analysts from Trading Economics and FX Empire note that $89.57 (the 0.786 Fibonacci level) was the first major line of defense. Since we have slipped slightly below that, the next "hard" support is the 50-day EMA, which sits between $88 and $89. * The $83 Target: If Brent consistently closes below $88 today, technical indicators (like the H4 chart Shooting Star pattern) suggest a slide toward $83–$84 is likely. This would signal that the market believes the "war premium" is completely gone. * Volatility Warning: Despite the slide, the RSI is at 45, meaning the market isn't "oversold" yet. There is still room for further downward movement if the de-escalation talk continues. ⚠️ The "Hormuz" Variable While technicals look bearish, the Strait of Hormuz remains the ultimate wildcard. If Iran attempts to follow through on its threat to block "one liter of oil" from leaving, analysts warn that prices could snap back toward $115 instantly, regardless of today's support levels. Would you like me to set an alert for you if Brent breaks below $85, or would you prefer a summary of how the stock market is responding to this $88 level?
The hashtag #TrumpSaysIranWarWillEndVerySoon began trending today, March 10, 2026, following a series of high-stakes statements from President Trump at a news conference in Florida. The news has sent shockwaves through both political circles and global markets. Here is the breakdown of the most significant updates: 1. The "Short-Term Excursion" Narrative President Trump described the ongoing U.S.-Israeli military operations in Iran (known as Operation Epic Fury) as a "short-term excursion." He claimed the mission has already been a "tremendous success," noting that the U.S. has effectively decimated Iran's navy, air force, and communication lines.
"I think the war is very complete, pretty much... We took a little excursion because we felt we had to do that to get rid of some people." — Donald Trump.
2. Market Reaction: A "Trump Pump" for Stocks The President's reassurance that the conflict would not turn into a years-long "forever war" provided immediate relief to investors: • Oil Prices: After peaking above $120/barrel, Brent Crude and WTI plummeted over 6% today, settling back into the $88–$92 range. • Global Equities: Stock markets in Tokyo and Seoul opened significantly higher this morning, and Wall Street futures are trending green as the "war premium" on energy begins to fade. 3. Warning Against the "Strait of Hormuz" Blockade Despite the optimistic timeline, Trump issued a severe warning to Tehran regarding the Strait of Hormuz. He stated that if Iran tries to block oil shipments, the U.S. will hit them "20 times harder" than they have already. He warned Iran not to try "anything cute," or it would be "the end of that country." 4. Defiance from Tehran The situation remains tense as Iran’s new Supreme Leader, Mojtaba Khamenei, and the Revolutionary Guards (IRGC) rejected Trump’s claims. • IRGC Statement: They asserted that they, not the U.S., will determine when the war ends. • Energy Threats: Tehran has vowed not to allow "one liter of oil" to leave the region if strikes continue.
Oil Prices Retreat as Geopolitical Tensions Ease and Supply Hopes Rise Tuesday, March 10, 2026 — Global crude oil prices saw a significant correction today, pulling back from the dramatic highs reached earlier in the week. After a volatile session that saw Brent crude briefly surge toward $120 per barrel, prices have retreated sharply, currently trading in the $88 to $92 range. Key Drivers of the Slide: • Diplomatic Optimism: The primary catalyst for the price drop follows comments from U.S. President Donald Trump, who suggested that the conflict in West Asia may be nearing a resolution sooner than initially anticipated. Market participants reacted positively to signals that the military phase of the U.S.-Israel-Iran escalation might be reaching its conclusion. • Strategic Reserve Intervention: Adding to the downward pressure, G7 finance ministers have signaled a readiness to coordinate a massive release of emergency oil reserves. While a formal drawdown has not yet been executed, the mere threat of a supply influx has dampened the "war premium" that pushed prices past $100 yesterday. • Production Realignment: Reports of a call between Russian President Vladimir Putin and the U.S. administration regarding settlement proposals further cooled fears of a long-term blockade in the Strait of Hormuz. Market Impact: As of mid-day, Brent Crude futures fell approximately 6.6% to settle near $92.45, while U.S. West Texas Intermediate (WTI) dropped over 6.5% to roughly $88.65. The sudden cooling of energy prices has sparked a rally in global equity markets, with major indices like the Sensex and Nifty bouncing back from recent lows. However, analysts warn that volatility remains extreme; with 20% of global supply still sensitive to regional stability, the floor for oil remains fragile.
The Evolution of Verifiable AI: Why Mira Network is the New Trust Layer 🛡️
In 2026, we are witnessing a massive explosion in AI agents—autonomous systems that can trade, research, and interact on our behalf. But as these agents handle more capital and sensitive data, we face a critical bottleneck: The Trust Problem. Standard AI models, while powerful, are prone to "hallucinations"—confident but incorrect outputs that can lead to catastrophic financial or operational errors. This is where @mira_network is making its mark as the indispensable "Trust Layer" for the decentralized future. Solving the "Black Box" Problem Most AI systems today operate as black boxes. You provide a prompt, and you get a result, but there is no way to verify how or why that result was generated without manual human oversight. Mira changes this paradigm by breaking down complex AI outputs into discrete, verifiable claims. Through its decentralized network of independent verifier nodes, Mira uses a unique multi-model consensus mechanism. Instead of trusting a single LLM, the network validates claims across multiple models (like GPT-4o, Llama, and DeepSeek) to ensure accuracy. If the models don't agree, the claim isn't verified. The Role of $MIRA in the Ecosystem The $MIRA token isn't just a digital asset; it is the economic engine that secures this verification process: * Node Staking: Verifiers must stake $MIRA to participate, creating a "skin in the game" model where malicious or lazy actors face slashing. * Verification Fees: Applications like the Klok research assistant pay for high-fidelity verification using $MIRA. * Governance: Token holders shape the future of the protocol, from technical upgrades to ecosystem grant allocations. Why This Matters for 2026 With the mainnet now fully operational and serving millions of users, we are moving toward a world where "Trustless AI" is no longer a dream but a standard. Whether it’s educational platforms like Learnrite improving accuracy or DeFi agents executing $100M trades, the infrastructure provided by @mira_network ensures that the outputs we rely on are cryptographically proven. The era of "hoping" your AI doesn't hallucinate is over. It’s time to verify. 🚀 #AI #Web3 #Blockchain #Mira #decentralization
The Evolution of Verifiable AI: Why Mira Network is the New Trust Layer 🛡️
In 2026, we are witnessing a massive explosion in AI agents—autonomous systems that can trade, research, and interact on our behalf. But as these agents handle more capital and sensitive data, we face a critical bottleneck: The Trust Problem. Standard AI models, while powerful, are prone to "hallucinations"—confident but incorrect outputs that can lead to catastrophic financial or operational errors. This is where @mira_network is making its mark as the indispensable "Trust Layer" for the decentralized future. Solving the "Black Box" Problem Most AI systems today operate as black boxes. You provide a prompt, and you get a result, but there is no way to verify how or why that result was generated without manual human oversight. Mira changes this paradigm by breaking down complex AI outputs into discrete, verifiable claims. Through its decentralized network of independent verifier nodes, Mira uses a unique multi-model consensus mechanism. Instead of trusting a single LLM, the network validates claims across multiple models (like GPT-4o, Llama, and DeepSeek) to ensure accuracy. If the models don't agree, the claim isn't verified.
The Role of $MIRA in the Ecosystem The $MIRA token isn't just a digital asset; it is the economic engine that secures this verification process: • Node Staking: Verifiers must stake $MIRA to participate, creating a "skin in the game" model where malicious or lazy actors face slashing. • Verification Fees: Applications like the Klok research assistant pay for high-fidelity verification using $MIRA. • Governance: Token holders shape the future of the protocol, from technical upgrades to ecosystem grant allocations. Why This Matters for 2026 With the mainnet now fully operational and serving millions of users, we are moving toward a world where "Trustless AI" is no longer a dream but a standard. Whether it’s educational platforms like Learnrite improving accuracy or DeFi agents executing $100M trades, the infrastructure provided by @mira_network ensures that the outputs we rely on are cryptographically proven. The era of "hoping" your AI doesn't hallucinate is over. It’s time to verify. 🚀 #Mira #Aİ #blockchain #MİRA #DecentralizedAI #Web3
#mira $MIRA @mira_network is leading this charge by transforming AI outputs into cryptographically proven claims. By leveraging a decentralized network of verifiers, they ensure accuracy and eliminate hallucinations. With the mainnet live and scaling, $MIRA is the fuel powering this trust layer. Excited to see how this evolves! 🚀 #Mira #AI #Web3 #Blockchain
"Hot Narratives," "Educational Value," and "Timely Market Analysis." Since it's currently March 2026, the market is shifting toward institutional utility and macro-economic volatility. Here are three high-impact ideas for your next posts: 1. The "Macro Alert" Post (High Engagement) Market sentiment is currently jittery due to the upcoming Federal Reserve interest rate decision on March 18th. • The Angle: "Fear vs. Opportunity." Explain why the market is sideways and what levels to watch for Bitcoin ($BTC). • Why it works: Traders are looking for guidance during periods of "Lack of Market Interest" (as current reports suggest). Using cashtags like $BTC and $USDT will link your post to high-volume trading pairs. 2. The "DePIN & AI" Narrative (Trend Following) Projects focusing on decentralized physical infrastructure (DePIN) and AI agents are the "it" sectors of 2026. • The Project: Bittensor ($TAO) or Render ($RNDR). • The Hook: "Why AI Agents are the new 'Whales' of 2026." Discuss how AI agents are now performing on-chain transactions autonomously, driving up network utility. • Why it works: These are "sticky" narratives. People who invest in AI projects tend to be very active in comments, which boosts your post's visibility. 3. The "Token Unlocks" Strategy (Actionable Advice) March 2026 is seeing a massive wave of token unlocks (over $7B total), including projects like $ENA, $SUI, and $HYPE. • The Angle: "How to trade the March Unlock Wave." Explain that while unlocks increase supply, they often mark a "local bottom" for high-quality projects once the initial selling pressure is absorbed. • Why it works: This provides genuine value. Users love "Watchlists"—they are highly shareable and saveable. #tao #hype #SUİ #ENA #rndr
🚀 Why Solana ($SOL) is Dominating the March 2026 Narrative As we move through Q1 2026, Solana continues to prove why it’s the "Retail King" of blockchains. While other networks struggle with fragmented liquidity, Solana’s unified ecosystem is firing on all cylinders. 🔑 Key Drivers for SOL this Month: • The Alpenglow Upgrade: The rollout of the Votor and Rotor consensus components has pushed block finality down to a staggering 100–150ms, making it the fastest major L1 in existence. • Institutional Inflows: Despite broader market volatility, Solana ETFs have seen consistent weekly inflows (over $43M in the first week of March alone), signaling strong "smart money" confidence. • DEX Dominance: Solana’s 24-hour decentralized exchange volume is currently nearly double that of Ethereum, driven by its ultra-low fees and massive meme-coin/stablecoin activity. 📊 Technical Outlook: Currently trading around $85, SOL is consolidating after its recent Alpenglow-driven rally. Analysts are watching the $95 resistance level; a clean break above this could open the doors for a move toward $120 as retail participation spikes.
💡 Note for Creators: If you're looking for stability mixed with high-velocity growth, $SOL remains a cornerstone for any 2026 portfolio.
What’s your price prediction for SOL by the end of March? Let’s discuss in the comments! 👇 #Solana #SOL #Write2Earn #Crypto2026 #BinanceSquare$
“Write to Earn” Open to All — Earn Up to 50% Commission + Share 5,000 USDC!
To celebrate the “Write to Earn” Promotion now open to all creators on Binance Square, every KYC-verified user can automatically enjoy the benefits—no registration required! Join our limited-time celebration and earn double rewards when you post on Binance Square: ✅ Up to 50% trading fee commission ✅ Share a limited-time bonus pool of 5,000 USDC! Activity Period: 2026-02-09 00:00 (UTC) to 2026-03-08 23:59 (UTC) *This is a general campaign announcement and products might not be available in your region. 1. New Creator Kickoff (3,000 USDC Pool) 👉 Eligible Participants: New users participating in Write to Earn for the first time, and creators with cumulative Write to Earn earnings of 0 USDC 💰 Rewards:
2. Active Creator Sprint (1,500 USDC Pool) 👉 Eligible Participants: All Write to Earn participants 💰 Rewards:
3. Top Content Rewards (500 USDC Pool) 👉 Eligible Participants: All Write to Earn participants 💰Rewards for Top 10 Single-Content Earnings:
Zero entry threshold, effortless content monetization — Don’t wait, start earning now! For More Information Pro Tips to Boost Your Write to Earn RewardsFrequently Asked Questions on Binance Square “Write to Earn” Promotion Terms and Conditions This Promotion may not be available in your region. Only Binance Square creators who complete account verification (KYC) will be eligible to participate in this Promotion, except those who are in countries which have specific Binance Product blocks.Participants must comply with the Write to Earn Promotion terms and conditions. Users can earn rewards simultaneously in Activities 1, 2, and 3. In Activity 3, the same user can receive multiple rewards. For Activities 1 and 2, each user’s individual reward is capped at 5 USDC respectively.If your content generates any commission on a given day, you will receive a Square Assistant notification the next day with the detailed amount. Please note that rewards will be distributed on a weekly basis, by the following Thursday at 23:59 (UTC). Once you accumulate at least 0.1 USDC of commission rewards each week, Binance Square will update your weekly performance on the promotion page by the following Thursday at 23:59 (UTC). The Binance Square team will review all content for compliance with campaign guidelines and select final winners according to campaign rules.All 5,000 USDC rewards will be distributed in the form of USDC token vouchers to eligible users within 21 working days after the Activity ends. Users will be able to log in and redeem their voucher rewards via Profile > Rewards Hub. Binance reserves the right to cancel a user’s eligibility in this promotion if the account is involved in any behavior that breaches the Binance Square Community Guidelines or Binance Square Terms and Conditions.Binance reserves the right at any time in its sole and absolute discretion to determine and/or amend or vary these terms and conditions without prior notice, including but not limited to canceling, extending, terminating, or suspending this promotion, the eligibility terms and criteria, the selection and number of winners, and the timing of any act to be done, and all participants shall be bound by these amendments.Binance reserves the right of final interpretation of this promotion.Additional promotion terms and conditions can be accessed here.There may be discrepancies in the translated version of this original article in English. Please reference this original version for the latest or most accurate information where any discrepancies may arise. Disclaimer: Content on Binance Square includes information, views and opinions posted by Users and or other third parties, which may be sponsored. Content on Binance Square may also include AI generated content with the use of Binance AI or User AI in User Content, subject to the AI Policy. Content on Binance Square may be original or sourced, or in combination. Such content is presented to viewers on an “as is” basis for general information purposes only, without representation or warranty of any kind. Such content is not to be used or considered as any kind of advice. Insights and opinions expressed in these content belong to the relevant poster and do not purport to reflect the views of Binance. Content on Binance Square, is not intended to be and shall not be construed as an endorsement by Binance of such views or a guarantee of the reliability or accuracy of such content. Viewers and users are reminded to do your own research (DYOR). Furthermore, the content and Binance Square’s availability is not guaranteed. Digital asset prices vary in volatility. The value of your investment may go down or up and you may not get back the amount invested. You are solely responsible for your investment decisions and Binance is not liable for any losses you may incur. For more information, see our Terms of Use, Risk Warning, and Binance Square Terms.
How to offer yield for digital assets, responsibly.
Loans are as old as money. Throughout history - from seeds to gold, every form of money has had a thriving lending market. Bitcoin is a digital, more transparent asset - and for it to thrive, it will also need a lending market.
The demand for bitcoin and digital asset lending services became evident during the 2020 runup, when tens of billions of client assets flowed to centralized and decentralized lending platforms. An environment of easy money policies and supersonic growth allowed bad actors to act recklessly and mislead consumers, without any checks and balances. All of this ultimately led to the “Sam-tastic” collapse of the digital asset lending industry in 2022.
Although fraud is nothing new, the sudden domino-like collapse of dozens of digital asset lending firms was caused by yet another problem: the operating structure most players were using was unsustainable. There was no ring-fencing of lending risk, and there was no transparency from lenders that allowed clients to gain visibility into their process of credit underwriting, or the concentration risks in their lending activities. The legacy structure, plus absent risk management was a forest fire waiting for a spark. Terra/Luna, 3AC and FTX did just that.
When we designed our risk management policies internally, we thought through what financial and due diligence requirements to put in place to screen borrowers, the appropriate lending parameters for the type of borrower and finally, how to protect Ledn and its clients in the event that these checks and balances fail. These tight risk management policies allowed us to navigate the 2022 storm without losing a cent or satoshi of our clients’ assets. Even still, we learned a lot from the 2022 events, and went straight to work in upgrading every aspect of our business.
History shows that a lending structure with no ring-fencing of risks only works when there is a lender of last resort. This is why banks need a Federal Reserve. That doesn’t exist in bitcoin, the industry needs a new model - one that doesn’t require government or state institutions as a backstop. We believe our new Growth Account model can be the blueprint to rebuild a digital asset savings experience in a sustainable and responsible way.
The case for a bitcoin lending market
Many people have been able to earn a great return on their bitcoin and digital assets by using yield offerings. These services allow digital asset holders to earn passive income, just like investors in traditional finance do. That yield is enabled primarily by lending those assets to institutional market markets.
Bitcoin lending markets have enabled access to capital for market makers to participate in the bitcoin derivatives markets (futures and options), and help those markets flourish. This, in turn, has crushed down bitcoin price volatility, and has made bitcoin prices more stable over time.
Market-makers have also thrived in arbitraging price discrepancies across different exchanges, in doing so, they’ve obliterated the bid-ask spread across exchanges over time, to the benefit of consumers. This means bitcoiners get more dollars when they sell and more bitcoin when they buy.
The lending market is like the oil that keeps financial markets running smoothly - it not only facilitates faster settlement across entities, but a host of other functions. Bitcoin lending markets enable: options for bitcoiners to earn yield; tighter spreads to buy and sell bitcoin on global exchanges; more price stability for bitcoin spot markets; a healthy spot short market for honest actors to hedge their positions in a tax-efficient manner; and a more efficient bitcoin derivatives market for miners to hedge their production - just to name a few.
How to offer yield responsibly
Based on our learnings, we resolved to rebuild our savings experience around the pillars of trust, risk mitigation, transparency, access, and client control. We believe that Ledn’s new Growth Account structure addresses many of the systemic risks that became evident during the 2022 events. These include:
1) Ring-fencing of individual product risk
Previously, when you interacted with a company’s service - say, a bitcoin-backed loan, you were automatically commingled with the risks of their yield products. Meaning, that if the company went bankrupt because of a loan impairment in their “yield” program, your bitcoin-backed loan would have gone down with it, and you’d be stuck in a multi-year claim to maybe see some of your bitcoin collateral back one day. This is what happened at BlockFi, Celsius, Voyager and others.
Under the new Growth Account model, Ledn clients are now able to choose between holding assets in a “Transaction Account” which does not earn yield, but where assets are mostly sitting in cold storage; or they can opt into the “Growth Account'', which does earn yield and where they will only be exposed to the benefits and risks of loans issued out of the Growth Account pool of assets. That means Growth Account clients are not exposed to Ledn bankruptcy risk, and Transaction Account clients are not exposed to the risk of an institutional loan impairment issued from the Growth Account. Loans issued from the Growth Account continue to be underwritten applying Ledn’s strict risk management acumen, with even tighter covenants imposed on our institutional borrowers.
The new structure minimizes the probabilities of an all-or-nothing outcome for all Ledn clients. In the event of a loan impairment in an institutional loan from the Growth Account, a recovery process begins. If a loan representing 10% of the Growth Account asset pool is impaired, 10% of the Growth Account client’s balance will be locked and sent to a “Loan Recovery Pool”. The remaining 90% of unimpaired assets will continue earning interest, and will be available for withdrawal should clients choose to do so by moving such assets from their Growth Account to their Transaction Account. Any assets recovered from the impaired loan will be returned back to the client’s Growth Account. No more waiting for messy bankruptcy processes with all of your assets tied up.
2) Visibility around concentration risk in lending counterparties
When you lure billions of dollars from people into your platform under the promise of paying high yields, and there’s only one institution willing to take assets and pay those rates, you have 2 choices: you either stop lending to that institution beyond what you’re comfortable with, and lower the rates you offer to clients; or you continue lending to that institution and lend amounts way above what you can comfortably tolerate. Lending within a tolerable threshold means managing concentration risk, and it's a base pillar of risk management.
If clients could have seen how much was being lent to one counterparty - regardless of the name, they could have made different decisions. At the time of its bankruptcy filing, Voyager had 58% of its loan portfolio outstanding to one counterparty - 3 Arrows Capital. Other firms had similar concentrations with Genesis and/or Alameda. For further context, as far as we know, 3 Arrows did not supply financial statements to lenders, which is an absolute necessity in order to properly assess the financial health of an organization BEFORE agreeing to lend to them.
We wanted to address this risk head-on, so we introduced our Open Book Reports, where we outline the utilization of our assets in order to generate yield, and finance our bitcoin-backed loan operations. We break down the Growth Account loans by institution, and show what percentage each one has. The reports are currently produced once a month, and we’re working to provide updates in real time, right on our clients’ dashboard.
Concentration risk is also an integral part of our credit underwriting policy. We limit the amount any one entity can borrow to a maximum of 30% of the Growth Account assets. With the Open Book report, clients can monitor the utilization and concentration of our Growth Account assets, and make more informed decisions.
Building a better future
If the Open Book report was an industry standard, clients from the now-bankrupt companies could have seen the levels of concentration some lenders were operating with, and decided to withdraw proactively. It could have saved thousands of people and millions of dollars.
If the Growth Account model had been an industry standard, clients from the now-bankrupt companies would have a considerable amount of their assets today. The impaired portion would be tied up in a recovery process, but having a good chunk of your assets vs. none is a materially better outcome.
If the Growth Account model had been an industry standard, clients with bitcoin-backed loans at the now-bankrupt companies would not have been affected.
The new structure creates a much better experience for clients - one where they are informed to make better decisions, have more options to choose from, and where the risks and benefits of a particular service are distributed among the clients that chose to participate in it.
Bitcoin is maturing, and so are its lending markets. This new structure is a time-tested solution to an old problem - in a modern asset class. It will be a solid and sustainable foundation over which a thriving lending ecosystem can be built.
The future looks bright.
Thank you for reading! If you don't yet have a Ledn account, visit Ledn.io. to open one in under 5 minutes.
Many people have been able to earn a great return on their bitcoin and digital assets by using yield offerings. These services allow digital asset holders to earn passive income, just like investors in traditional finance do. That yield is enabled primarily by lending those assets to institutional market markets.
Bitcoin lending markets have enabled access to capital for market makers to participate in the bitcoin derivatives markets (futures and options), and help those markets flourish. This, in turn, has crushed down bitcoin price volatility, and has made bitcoin prices more stable over time.
How to offer yield for digital assets, responsibly.
Loans are as old as money. Throughout history - from seeds to gold, every form of money has had a thriving lending market. Bitcoin is a digital, more transparent asset - and for it to thrive, it will also need a lending market.
The demand for bitcoin and digital asset lending services became evident during the 2020 runup, when tens of billions of client assets flowed to centralized and decentralized lending platforms. An environment of easy money policies and supersonic growth allowed bad actors to act recklessly and mislead consumers, without any checks and balances. All of this ultimately led to the “Sam-tastic” collapse of the digital asset lending industry in 2022.
Over the last 2 weeks bitcoin has broken below the $30k support level and has remained below it, currently trading at $29,360. While the $30k level has been tested a couple of times to the upside, bitcoin has not seen a daily close above $30k since July 24th. In other words, the $30k level has flipped from technical support to resistance.
In terms of near-term catalysts, the majority of publicly traded companies that are involved with bitcoin have already reported. We saw strong results out of Coinbase, Block, Microstrategy, and PayPal. In addition to strong earnings, PayPal also announced the launch of its own stablecoin. This is an important signal to the industry as established incumbents are getting increasingly more involved with crypto.
Hey there! I've got some exciting news about RUNE coin! 🎉💰
RUNE coin, also known as THORChain, is a decentralized liquidity protocol that aims to revolutionize the way we trade and swap cryptocurrencies. With its innovative cross-chain capabilities, RUNE allows users to seamlessly exchange assets across different blockchains. 🌐🔁
There, you can connect with fellow enthusiasts, learn more about the project, and get involved in the exciting ecosystem of RUNE coin. 🌐📱
Remember, always do your own research and consider the risks involved in any investment. Crypto markets can be volatile, so it's essential to make informed decisions. 💡💰
Enjoy exploring the world of RUNE coin and may your crypto journey be filled with success! 🏃🚀 #RUNECoin
🐸🚀 Hey there! Let's dive into the world of PEPE coin! 🎉💰
PEPE coin is an exciting cryptocurrency that has been gaining attention in the crypto community. It's based on the popular Pepe the Frog meme and aims to bring a fun and unique element to the crypto space. 🐸💪
It offers various features and benefits, including decentralized governance, secure transactions, and the opportunity to participate in unique events and collaborations. 🎉🔥
To learn more about PEPE coin, I recommend checking out their official website or joining their community channels. Stay updated on the latest news, partnerships, and developments surrounding this exciting cryptocurrency. 🌐📱
Happy exploring and have a hoppy time discovering more about PEPE coin! 🐸🚀 #PEPECoin
🎁 Exciting news for all Binance enthusiasts! The highly anticipated Binance Red Gift Claim Box is now officially open for everyone to enjoy! 🎉🎁
To participate, simply head over to the Binance platform and locate the Red Gift Claim Box. Inside, you'll find a wide array of gifts waiting to be claimed. From exclusive discounts, bonus tokens, to even special trading privileges, there's something for everyone! 🎁🎉
Make sure to act fast, as the Red Gift Claim Box is only available for a limited time. Don't miss out on this incredible chance to enhance your trading journey and potentially boost your profits. 💪💰
let's make the most of the Binance Red Gift Claim Box and enjoy the amazing rewards it has to offer! 🚀🎁
Happy trading and good luck with your Red Gift claims! 🎉💪 #BinanceRedGift