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Tokenizing interest in DeFi using cTokens and RDai

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Satoshi&Co Daily Crypto Newsletter

August 21 · Issue #224 · View online
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The DeFi revolution is beginning to spawn new some interesting use cases, such as seamless lending and borrowing, decentralized derivatives and trading.
MakerDAO remains the cornerstone for the DeFi revolution with its fully decentralized platform for borrowing DAI against ETH. Decentralized crypto lending protocol Compound added a new layer of use cases by introducing cTokens. cTokens are normal ERC20 tokens that are wrapped in a Compound smart contract. The interest is accrued in cTokens and those cTokens can be swapped for the underlying parent tokens based on the prevailing market rate. With cTokens, Compound has opened up a whole new world of functionality and liquidity. All the assets that used to stay locked away within Compound are now free to move about the ecosystem, ready to be utilized for other purposes.
You can transfer, trade, or send cTokens to cold storage, just like any other token on Ethereum. In fact, you can even integrate them into other protocols that involve staking tokens as collateral. Think of cTokens as collateral that can seamlessly move between various DeFi apps. This would allow you to earn interest on top of the benefits the protocol already gives you. Crypto lending platforms are the closest you can get to continuous compounding as interest is accrued with every new block (50-60s).  
Source: redeem.money
Inspired by Compound’s cTokens, the team at redeem.money came up with a new idea where the interest accrued can be donated for charitable purposes such as community funds, charity organizations or can be spent in any other DApp. The principal remains the same and the interest earned can be spent wherever the user wants to. This opens up a plethora of use cases for automated payments where say the subscription costs for a decentralized Netflix or Spotify can be skimmed off the interest account without having to touch the underlying collateral ever.
Source: Twitter
Meanwhile in Crypto Wonderland....
“Two-week Deadline For RBI”
India’s Supreme Court has slammed the country’s central bank over its handling of a cryptocurrency business ban and ordered it to address complaints. In the latest session of an ongoing hearing into the actions of the Reserve Bank of India (RBI) on Aug. 21, the court ruled that officials had not appropriately responded to concerns from the cryptocurrency industry over its actions. The RBI forbade banks from servicing crypto operators such as exchanges in July 2018 — effectively stopping such platforms from continuing to operate in India. On Wednesday, the move came in for severe criticism from Supreme Court Justice Rohinton Fali Nariman.
“Mobile Operator Giant In Austria To Accept Crypto Payments”
One of the largest mobile providers in Austria is planning to accept cryptocurrency for payment at certain store locations.  A1, which services some 5.1 million mobile and 2.1 million fixed lines across Austria, is testing cryptocurrency payments at store locations across Austria. Dash, ethereum, litecoin, stellar and XRP will be available for payment, according to a report by Austrian tech news site Futurezone. Founded in 1881, A1 serves 5.1 million of the current 6.2 million Austrian mobile phone users.
“Tether To Launch A CNY-backed Stablecoin”
Tether, the issuer of the stablecoin USDT, is preparing to launch a new stablecoin pegged to the Chinese yuan. According to Chinese news site ChainNews, the token, CNHT, will be launched soon—though no official date was provided. Its investors will reportedly include Zhao Dong, who holds shares in Tether’s sister company, Bitfinex. Tether has already launched its flagship stablecoin on several blockchains, including Bitcoin, Ethereum, EOS, Tron and Algorand. But so far, Tether is only pegged to the US dollar and the euro. 
“Kraken To List New Tokens”
Kraken, a popular U.S.-based trading platform, has announced the listing of Waves (WAVES) and Basic Attention Token (BAT) on August 22. According to the official announcement, the exchange will enable deposits and withdrawals for both assets at approximately 13:30 UTC on August 22. The announcement also points out that the first trade executions will take a bit longer because sell orders cannot be placed until deposits are credited. Previously Kraken announced a new service that will allow its users from all over the world (up to 180 countries) to make deposits in U.S. dollars, euros, Canadian dollars, pounds sterling and Japanese yen. 
Crypto Twitter Pick
Willy Woo
After all the shitcoin carnage, alts may be heading into a region of support. Top line is Alt Cap to BTC Cap Ratio (an alternative view to dominance). Bottom line is the ratio of Alt market volume to BTC volume at the exchanges. https://t.co/CedGUHMhjo
5:13 PM - 21 Aug 2019
What We Are Reading / Listening To
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