In order to prevent present turbulences in the market, crypto users might start to prefer more centralized blockchain financing projects.
” To-date, I have not seen any modification in dapp [decentralized app] activity particularly associated to COVID-19 or people remaining in self-isolation,” Jon Jordan, Communications Director at DappRadar, a dapp information aggregator and analysis company, informed Cryptonews.com, “so the impact has been mainly about the price crash, which liquidated a lot of MakerDAO vaults and generated a generalized sell-off/flight to cash for all asset classes including crypto.”
He approximates that the present scenario in the markets will make many individuals prefer more centralized crypto financing projects, such as crypto loan providers Blockfi and Celsius, instead of MakerDAO and comparable DeFi (decentralized financing) projects. People might likewise possibly prefer centralized stablecoins like USDT and USDC over MakerDAO’s DAI, “because in such a crisis, having centralized controls means you can stop bad things happening.” ( Learn more: Need for ‘Web Dollars’ to Increase – Circle CEO; Not All Commemorate)
Nevertheless, some decentralization-focused projects declare they didn’t deal with numerous problems throughout the crash.
Kyber Network (KNC), an open-source, on-chain liquidity procedure, declares they broke their 24- hour trading volume record when they helped with over USD 33 million worth of trade within 24 hours on March12 Regarding where the volume originated from Kyber’s CEO Loi Luu stated it was from KyberSwap, an in-house decentralized exchange (DEX) powered by Kyber, Ethereum wallets, in addition to the DeFi platforms that incorporated Kyber.
” End users transformed all of their properties to stablecoins utilizing KyberSwap and other Ehtereum wallets that supplied in-wallet swap powered by Kyber, such as Enjin wallet and MEW,” states Luu. “DeFi dapp users exiting their positions or topping up their margins so dapp required to rebalance the portfolio/inventory through Kyber.”
According to Luu, they “didn’t really have any liquidity or token price issues during the event” since Kyber has access to various liquidity swimming pools, consisting of Kyber reserves, token project reserves, other market makers, in addition to bridge reserves such as Sanctuary and Uniswap “So if one goes down, there are others to continue supplying the liquidity.”