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Matic; Friday Metrics Watch #10

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Satoshi&Co Daily Crypto Newsletter

May 17 · Issue #178 · View online
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(Listen to our latest podcast here. It is with Sandeep Nailwal of Matic Network, which is a layer 2 protocol working on ETH’s Plasma. Matic Network recently finished a successful launch on Binance Launchpad and also is the first Indian crypto startup to receive funding from Coinbase Ventures).
After great conversations with Thomas Pacchia and Dhruv Bansal, this time around, we have on the podcast series, Sandeep Nailwal, from the Matic network. Matic is an implementation of Plasma on the Ethereum network. Matic uses sidechains and state channels, in conjunction with a POS algorithm on the sidechain to attempt to solve the scalability issue on Ethereum. It is analogous to what Lightning attempts on Bitcoin.
Matic recently raised capital through an IEO process from Binance launchpad and is also Coinbase Ventures first investment in an Indian team.
A quick synopsis of the podcast before out regular Friday DeFi metrics….
What is Matic?
Matic Network is a Layer 2 scaling solution that achieves scale by utilizing sidechains for off-chain computation while ensuring asset security using the Plasma framework and a decentralized network of Proof-of-Stake (PoS) validators. Matic strives to solve the scalability and usability issues while not compromising on decentralization and leveraging the existing developer community and ecosystem. Matic Network is an ​off/side chain scaling solution for existing platforms to provide scalability and superior user experience to DApps/user functionalities.
Who is using this now?
Gaming, Payments and DeFi are among the earliest beneficiaries of a Matic sidechain network. Matic Network’s design is very conducive for building Dapp-based games and some of the popular decentralized gaming projects such as Decenterland, Chainbreakers, and Pocket Full Of Squares are already building Matic’s sidechains.
Why is it promising?
The most unique thing about Matic Network is that it is the first Plasma implementation on the Ethereum blockchain, with prominent Dapp projects already building on the Matic network. Plasma is very critical for the scalability of the Ethereum blockchain and Matic Network is expected to benefit from the growth of Plasma. Moreover, it is Coinbase Ventures first investment in India.
And now on to regular Friday programming…
Ethereum Locked in DeFi
MakerDAO still accounts for a lion’s share of ETH locked up in collateral, with about 1.97 million of ETH locked up. Compound showed a moderate w/w growth of 2% while Uniswap, Augur and MakerDAO declined.
Lightning Network Growth:
Capacity per channel decreased by 3% w/w. The total number of nodes increased w/w by 1% while the total number of channels and network capacity decreased by 2% and 5.5%, respectively.
(For reference, some previous articles on LN, here).
DEX Tracker:
Trading volumes on DEXs have increased on a w/w basis, with the average daily trading volume averaging 35k ETH for this week. IDEX remains the biggest DEX in terms of trading volume and DAI is the highest traded cryptocurrency on DEXs.
(For reference, some previous articles on DEXs, here and here).
Crypto Loans Tracker:
Compound Loans:
Total loans issued on Compound for the last week stands at approx. $1.2 million for the week, a meaningful increase from $760k in the previous week. WETH is the most borrowed cryptocurrency on Compound followed by DAI and BAT.
Dharma Loans:
Total loans issued on Dharma Lever for the last week stands at approx. $900k for the week, a moderate decline from $960k in the previous week. DAI is the most borrowed cryptocurrency on Compound followed by WETH and USDC.
MakerDAO Loans:
DAI loans issued on MakerDAO for this week stand at ~$12 million, a >10x increase from last week. The total outstanding DAI debt currently stands at ~$81 million.
(For reference, some previous articles on MakerDao, here and here).
You can also check out last week’s Metrics Watch here.
Meanwhile in Crypto Wonderland....
“Cornell Professor To Launch His Crypto”
Emin Gun Sirer, one of the higher-profile academic experts on blockchain technologies, is launching his own cryptocurrency coin and network with funding from some of the biggest venture capitalists in the field. Sirer, the co-director of the Initiative for Cryptocurrencies and Smart Contracts at Cornell University, said the Ava network will offer high throughput, fast confirmation times of transactions, and support applications ranging from supply-chain tracking to keeping tabs on securities and gold.
“2020 Presidential Election Bets On Veil”
Prediction market and derivatives platform Veil announced Wednesday that it deployed a new version of Augur, the decentralized prediction market protocol. Called AugurLite, the application was created in order to support bets on the upcoming U.S. presidential election. Augur normally is able to support long-running prediction markets. However, at present, the ethereum-based application is gearing up for a major upgrade to be activated sometime this year. As stated in a Medium post last October, the upgrade will require migration of all existing betting tokens – called REP tokens – to be moved to a new set of upgraded smart contracts.
“Poloniex Delists 9 Cryptocurrencies Citing Regulatory Uncertainty”
Many prominent faces in the crypto-community have been advocating changes in US law and regulations for the effective inclusion of cryptocurrencies in the financial realm. However, in yet another blow to the crypto-world, regulatory uncertainty in the US market has led to the delisting of nine cryptocurrencies from the leading exchange, Poloniex. The platform announced that it was disabling trading services for nine crypto-assets; Ardor [ARDR], Bytecoin [BCN], Decred [DCR], GameCredits [GAME], Gas [GAS], Lisk [LSK], Nxt [NXT], Omni Layer [OMNI], and Augur [REP] from May 29 for its US user base. The exchange however, clarified that the assets would be supported for customers outside the country. The platform revealed that the lack of clarity in the country’s cryptocurrency regulations precipitated the delisting.
“MakerDAO Votes To Decrease Stability Fees For the First Time in Five Months”
The MakerDAO community has just voted to decrease the fees on all DAI loans after continued increases for over a period of five months. This is expected to have an impact on the price of the stablecoin DAI that has experienced a stable price increase since May 13th. Two weeks ago, the MakerDAO community voted to increase fees by 3 percentage points. This has helped the stablecoin to stabilize its value and reach $1.06 in the last few days. Voters will also stake their tokens again in order to execute the decrease into the MakerDAO system in a continuous polling round.
Crypto Twitter Pick
Bitcoin doesn't get enough credit for inspiring a generation of young people to focus on saving and investing. Sure, it's a risky investment, but at least it inspires a dedication to saving rather than spending and a long term outlook.

Those are all really positive things.
What We Are Reading / Listening To
Overnight Performance of Top 10 Currencies
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