- Switch Weekly
- Posts
- Chicken in, Chicken out! 🐣
Good Morning, Switchers 🌞
👋Welcome to Switch Daily.
After Starbucks dug into blockchain for its customer loyalty program, guess who else is joining the club? The luxury car that cruises around UB City—BMW.
BMW is using blockchain technology to revolutionize its loyalty program for its customers! It has roped in blockchain infrastructure firm Coinweb as its decentralized architecture provider and BNB Chain for settling transactions. But this facility is only available to its Thailand customers. Why the partiality, Beamer?😑
BTW, if you like reading this newsletter, give us a shout-out on Twitter and get your friends to subscribe. It will mean a great deal to us!
Here’s what we’ve got for you today:
Market pulse
Chicken Bonds
Quick news bytes
Meme of the day
Market pulse 📈
The market is keeping up the spirit 🌞
The crypto market continues to show some greeness going into the third day of the new year. The top five cryptos are currently trading in profit over the past 24 hours. XRP the sixth largest crypto has been doing quite well since yesterday registering gains of ~5%. Dogecoin and Polygon are also showing some strength with 2.3% and 3.3% gains respectively.
The fear and greed index is at 26/100 indicating moderate fear in the crypto market.
What the hen are ‘Chicken bonds’?🐔
Let’s face it, Defi has a serious chicken and egg problem!
In order for DeFi platforms to be successful, they need to have a critical mass of users. However, many users are hesitant to join a platform that doesn't yet have a large user base, as they may be concerned about the liquidity and stability of the platform.
On the other hand, DeFi platforms need a large user base in order to offer the liquidity and stability that users are looking for.
There is one Defi product that has broken the egg in the situation and has managed to amass much popularity with its novel offering–Chicken Bonds.
According to Dune Analytics, ‘Chicken Bonds’ attracted $71 million in Liquity's LUSD dollar-pegged stablecoin as of December 22. That's not bad for a product that debuted in early October.
But what are ‘Chicken Bonds’?
Chicken Bonds is a Defi product offered by Liquity, a liquidity platform. Essentially, it is a type of bond that allows investors to earn a higher rate of return in exchange for taking on some additional risk.
Here's how chicken bonds typically work:
An investor buys a chicken bond for a certain value by paying LUSD–Liquity’s dollar-pegged stablecoin.
The investor holds onto the bond for a set period of time, during which they earn a higher rate of interest on their holding.
At the end of the agreed-upon time period, the investor can choose to either sell the bond or hold onto it for a longer period of time.
If the investor chooses to sell the bond, they will receive their original investment plus the interest earned. (Chicken in)
If the investor holds onto the bond for a longer period of time, they continue to earn interest on their investment. (Chicken out)
However, there is a catch - there is a chance that the value of the bond could decline over time, which means that the investor might not get all of their money back.
These Bonds are also NFTs
The interesting thing about these bonds is that they are represented by NFTs. Every time you buy a Chicken bond, you are offered a unique NFT. The NFT evolves based on which stage you are in the bonding phase.
Defiant
As the Defi space grows, more and more such innovative products can be expected to hit the market this year. However, such products, as exciting as they sound, come with a higher level of risk. So, what do we always say? DYOR before investing in anything new.
Note: None of this is financial advice, and we’re not financial advisors. We’re merely your fellow investors who share information on the go.
What’s brewing in the cryptoverse? ☕
Turkey intends to use blockchain technology for online public service login. E-Devlet, Turkey's digital government portal for accessing a variety of government services, will use a blockchain-based digital identity to verify Turkish citizens during login.
The Dogecoin Foundation announced a new fund of 5 million DOGE (approximately $360,000 at the time of writing) for its core developers to further promote the ecosystem in the new year.
Ethereum Name Service announced that more than 80% of all ENS domains were created in 2022. According to Dune Analytics, ENS has approximately 2.82 million names registered as of January 2, with 630,340 ENS domain owners.
Meme of the day!
Thank You,
See you later, folks. 👋
How did you like our content today? |
Loving Switch Daily? Make sure to share it with your friends and spread the love 💙