DeFi

Why Swiss and Hong Kong crypto regulations will lead the DeFi revolution

Published

7 months ago

29 June, 2024

Why Swiss and Hong Kong crypto regulations will lead the DeFi revolution

The following is a guest post from James Davies, CEO of Crypto Valley Exchange.

Regulators worldwide, international organizations, and market participants have published many consultation papers, recommendations, and opinions. The writers include groups like the Global Financial Markets Association, the Institute of International Finance, the International Swaps and Derivatives Association, the Futures Industry Association, the Financial Services Forum, and IOSCO (International Organization of Securities Commissions).

All major players from Coinbase to Circle are publishing responses to the regulatory framework and legislative drafting worldwide.

All of this is brought together in an IOSCO paper, “Policy Recommendations for Crypto and Digital Asset Markets,” which, rather unbelievably, doesn’t mention permissionless protocols once and only decentralized in passing.

I pity the regulator that bases its crypto policy development on this publication. Separately, IOSCO published a “Policy Recommendation for Decentralized Finance,” which combines their analysis with the Financial Stability Board (FSB) report “The Financial Stability Risks of Decentralised Finance.”

However, and this is a major criticism, the papers miss the core idea of decentralized projects. Trying to succinctly explain where they are wrong and what they can do to shift the perspective takes more input from insiders. The essential goal of decentralized projects is “to create the project features as the result of emergent behaviors through the actions of unrelated and replaceable actors.”

These effects are emergent, making decentralized projects so difficult to regulate. The report makes some reasonable insights, such as run-risk on assets from liquidity mismatch, such as the events that collapsed TerraUSD/Luna, and the roll-forward of this hitting Celsius very reminiscent of the events in 2008, the “collateral chain” risk.

Notably, traditional finance regulators still do not cover this well, where banning new activities dominates integration and understanding.

It also makes valuable points on cross-border regulatory arbitrage; however, this is where it demonstrates very precisely that it doesn’t understand DeFi. These structures make identifying appropriate legal ownership/control and relevant legal authorities difficult. It presupposes that there is a legal ownership and control point, the antithesis of decentralization.

This doesn’t mean that there aren’t some DeFi entities that do have these, and while running via smart contracts on-chain are not more like centralized entities, these, though, will get picked up in the core of the rest of the crypto regulation.

IOSCO doubles down on these misapprehensions about how decentralization works in some of their recommendations to regulators, especially the recommendation to identify responsible persons. Comments suggesting layer-1 blockchains might be considered clearing and settlement operations feel bizarre.

Other areas to look at include leverage, lending pool structures, tokenization, pseudonymous information, reporting, IP, and off-chain/on-chain touchpoints. Continued adoption and growth are undoubted and will have major impacts on world economies and traditional finance over time.

Most notably, every respondent to IOSCO, that is, every major regulator, when asked to provide an overview of current regulatory treatment, stated that they do not have separate regulatory frameworks specially dedicated to DeFi activities. They further note that whilst respondents state that they have regulation for crypto underway, they are not specifically targeting DeFi. Respondents also express their views that existing frameworks can apply to DeFi protocols.

Like social scientists everywhere, the Bank of International Settlement also seeks to understand the DeFi landscape. Their process is being examined through the lens of categorizing DeFi. While they appear to do an adequate job in this respect, it comes across in the conventional manner of treating each project as a standalone company.

To summarize the areas of concern from IOSCO:

Conflicts of interest arising from vertical integration of activities and functions
Market manipulation, insider trading, and fraud
Cross-borderrRisks and regulatory cooperation
Custody and client asset protection
Operational and technological risk
Retail access, suitability, and distribution.

How should regulators look at DeFi?

Rigid classification-based regulation has led to many unintended consequences; Sarbanes-Oxley requirements drove companies away from public markets. The subprime mortgage crisis resulted from a focus on individual loans and not their aggregation. The initial responses to the rise of the Internet and digital business were slow and reactive. By the time regulations arrived, companies already had established practices. Uber and Airbnb’s growth was restricted by a patchwork of local regulations that didn’t support these business models.

Urban planners misunderstood the effect of adding roads, leading to more traffic issues rather than less. The climate models debate focuses on specifics rather than the emergent effects, clouding the issues.

Regulators should start with governance structures, not individual properties. DAOs typically have a presence of some form, such as an organization with a corporate identity, often because a Labs entity needs something to hold the equity to pay real-world bills.

These entities, though, are often controlled entirely through the DAO. Requiring DAO registration and setting up specific corporate entity types that match how they operate would add value. Setting transparency, reporting, voting, staking, delegation, and control rules would remove the ambiguity on how to operate. Weed out abusive entities that want to rug pull and encourage entities that want to operate in a decentralized manner genuinely.

There can be many further developments related to operation style, such as requiring those that border otherwise regulated activities to have the appointed people selected by the DAO to face future regulatory developments in these areas. However, engaging and setting a framework for DAO establishment would be a good start.

A second area for examination would be about mutual recognition, currently regulation is fragmented, in some areas such as derivatives markets mutual recognition works well, in payments and crypto it acts as a barrier to growth creating a difficult patchwork of regulation. If DAO regulation were recognized between major regulators, then regulating in one country would enable access to other countries, a major incentive to projects to choose a grown-up location for their DAO, a good indicator to users of the intent of those involved in the project.

More thought needs to be given to dealing with emergent properties related to aspects such as clearing and settlement. There are compelling reasons why these should exist. For a start, trading on-chain assets supported by on-chain collateral causes real issues for existing traditional finance aspects. We all want to support this tokenization and transparency push, but this doesn’t come without traditional finance equivalents. This is about the disintermediation of existing power bases and control and the empowerment of new economy models, but friction in these systems needs to drop to establish. It is almost the precise point of free markets.

Ethical behavior, transparency, and clarity at the top of the list, along with DAO registration and support, can begin this. Regulators will need to become much more educated in the mechanics of these protocols and their operations to ensure they slowly build the right regulation, not just restrictive regulation.

How Switzerland and Hong Kong have gotten right what the US gets wrong

The crypto industry is still largely in its infancy, and regulators are still figuring out how to oversee its various aspects, but not all efforts are equal.

Once a beacon of innovation, the US has become a challenging jurisdiction for crypto finance projects, let alone decentralized versions. It is well documented how the country’s relatively strong anti-crypto stance and enforcement-heavy approach has stifled growth, driving founders to seek more welcoming environments.

Meanwhile, Switzerland and Hong Kong have crafted regulatory frameworks that accommodate crypto and permissionless projects.

The Swiss Financial Market Supervisory Authority (FINMA) doesn’t regulate protocols based in Switzerland if the activities conducted on the protocol result from the actions of actors based outside Switzerland. They are accessible, transparent, and engaging. Self-regulatory approaches, in general, are well supported.

The Securities and Futures Commission (SFC) of Hong Kong assesses each Defi project on a case-by-case basis, balancing a “same business, same risk, same rules” approach for crypto in general with a more nuanced position on permissionless protocols. At the same time, the US Securities and Exchange Commission (SEC) has confused and caused the US to fall behind the pack.

The EU is focused on examining everything through a payments lens, and the UK talks a better game than it implements. By embracing crypto’s unique needs and fostering a culture of entrepreneurship, these jurisdictions have become the go-to destinations for crypto companies seeking regulatory clarity and freedom to experiment. They are likely to do the same with DeFi.

As DeFi continues to evolve and transform the financial landscape, the role of regulatory frameworks becomes crucial in shaping its trajectory. With digital assets gaining momentum, tokenization under discussion, and traditional finance entering the space, the quest for regulatory environments that not only accommodate but also nurture DeFi is intensifying more even than just centralized crypto entities.

Navigating the DeFi Regulatory Landscape

With the current hot crypto market and lots of capital flowing into projects, the number of projects establishing DAOs over the next 18 months will be huge.

From a regulatory perspective, it’s time for them to set out their intent for these entities and the services that will be possible through these protocols.

Regarding the regulatory landscape for current DeFi projects, we see why more and more industry professionals feel drawn toward Switzerland’s approach. While the EU’s MiCA Regulation offers a comprehensive, harmonized framework with detailed rules for consumer protection and market integrity – appealing for projects seeking a uniform environment for cross-border European operations – Switzerland’s principle-based approach, flexibility is more compelling for projects not focussed on payment services. Not every project fits neatly into a one-size-fits-all mold; Switzerland seems to understand that.

Switzerland’s willingness to foster a supportive ecosystem, exemplified by Crypto Valley in Zug, is remarkable. Being part of a vibrant community with access to capital and opportunities for experimentation and growth is a crypto native’s dream.

Switzerland’s regulatory philosophy and pro-business stance make it particularly appealing. Innovative projects will have a better opportunity, be more likely to get regulatory clarity early and emerge from this thriving ecosystem, pushing DeFi boundaries and shaping finance’s future evolution. Switzerland’s approach resonates persuasively.

Hong Kong: A Financial Renaissance

Hong Kong is redefining its role as a crypto hub by implementing its new Virtual Asset Service Provider (VASP) regime. This regulatory framework introduces a structured yet dynamic environment that supports crypto innovation while maintaining robust safeguards.

The comprehensive VASP licensing ensures crypto platforms meet stringent criteria for liquidity, customer protection, and cybersecurity, fostering a balanced approach to regulation and innovation. By permitting retail trading of cryptocurrencies, Hong Kong nurtures a vibrant ecosystem that attracts retail investors while upholding necessary safeguards. It has yet to develop Defi specific regulation, we can only encourage to look at this holistically, developing DAO regulation first, but the approach to the rest lends confidence that this is a good location for businesses to establish whilst we wait.

Regulatory routes forward

Countries mustn’t follow in the footsteps of those who have failed to innovate in this field. The US, for instance, has been slow to adapt to the changing financial landscape, with regulatory uncertainty stifling growth and innovation. Meanwhile, US companies keep demanding clarity on regulation, with giants like Coinbase and their legal team demanding the SEC engage in rulemaking. Similarly, countries like Japan and South Korea have struggled to integrate crypto into their traditional financial systems, leading to a lack of progress.

Countries, including the US, must divide and approach centralized and decentralized activities differently. Some decentralized activities, such as market rate set risk, have many risks that could be prevented fairly easily under the right approvals regime. We know this will come and squeeze some major players, but early transparency on the direction will save the industry a lot of costs.

Currently, we look to countries like Switzerland and Hong Kong, which have taken a proactive approach to crypto, to lead in creating a supportive regulatory environment that will foster innovation and growth in Defi. By learning from their example, other countries can catch up and move forward rapidly.

While the future of decentralized tech watches the American Dream turns into a coma, Swiss developers are pouring Aperol and planning their ski trips.

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DeFi

Is Zypto Wallet a Reliable Choice for DeFi Users?

Published

6 months ago

1 August, 2024

FinCrypto Staff

Is Zypto Wallet a Reliable Choice for DeFi Users?

Zypto wallet is a newcomer in the crypto landscape and has already made waves for its exclusive benefits and security features.

In this article, we will take a look at the Zypto crypto wallet and how it can help users securely manage their digital assets, interact with Web3 applications, and explore the world of Challenge.

What is Zypto Wallet?

Zypto App is a newly launched versatile crypto wallet that supports a wide range of coins and tokens, along with seamless access to Web3 applications, token exchanges, virtual crypto cards, a gift card marketplace, and a payment gateway.

What are the pros and cons of Zypto Wallet?

Benefits

User-friendly: Zypto’s user interface is very intuitive with a simple setup process.
Multi-Chain DEX Swaps: Zypto facilitates trading between thousands of cryptocurrencies, thanks to its versatile multi-chain token swap feature.
Built-in dApp Browser: You can access Web3 applications directly in your wallet using the in-app dApp browser.
Live Customer Support: The wallet has an in-app live customer support team that responds quickly to all your queries.
Rewards Program: Zypto has a loyalty program that allows you to earn rewards, improving the overall user experience.
Virtual crypto cards: The wallet makes it easy and reliable to use digital currencies for everyday transactions through its range of virtual cryptocurrency cards.

The inconvenients

Limited analysis tools: Zypto offers advanced charting features and limited technical analysis tools that might not appeal to experienced cryptocurrency traders.

What DeFi products and services does Zypto Wallet offer?

Zypto allows you to securely manage a wide range of cryptocurrencies across multiple blockchains, acting as a user-friendly entry point into the Web3 ecosystem.

Multi-Chain Wallet

As a multi-chain wallet, Zypto supports hundreds of thousands of digital assets across different blockchains. Zypto is also committed to adding support for more chains in the coming months, expanding its universe of explorable assets.

Multi-Chain Exchange Functionality

Instead of the tedious process of selling one token on one exchange and buying another of the same type hosted on a different blockchain, Zypto offers a cross-chain swap feature.

DApp Browser

Another easy-to-use feature is the in-app dApp browser. Simply bring up the browser from the small globe icon at the bottom of your screen and it will first take you to the Zypto homepage.

The browser provides all the features under one application so you don’t miss anything that warrants opening a separate browser.

Zypto DeFi Wallet Review

User experience

Zypto’s ease of use is one of its main advantages. Once the app is downloaded, you can view your wallet from the home screen. Other buttons at the bottom of your screen will take you to prepaid virtual cards, an Explore Zypto page, where you can send, receive, exchange, buy and sell tokens, or access the dApp browser and your contact list.

Zypto requires KYC information before processing cards, as it is part of regulatory compliance. Contacts are another benefit: instead of tediously copying and pasting long addresses, simply save them under a contact name.

How to set up your Zypto wallet?

To start using Zypto, simply download the app. Once installed, you’re ready to go.

You can create a new wallet by pressing the Create Wallet button or import an existing wallet by writing (or pasting) your passphrase to verify your identity. You can also import it in read-only mode, in which case you only need the wallet name and address.

Conclusion: The Verdict

Zypto is relatively new in the DeFi space, but it’s already gaining popularity among different types of users. Those who prefer everything neatly organized in one place will find the app appealing, as will those who prefer its rich features and integration with fiat payment methods over on- and off-ramp cryptocurrencies.

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DeFi

Switchboard Revolutionizes DeFi with New Oracle Aggregator

Published

6 months ago

1 August, 2024

FinCrypto Staff

Switchboard Revolutionizes DeFi with New Oracle Aggregator

Switchboard, a leading oracle network known for its permissionless and fully customizable features, has launched a revolutionary oracle aggregator. This new tool enables seamless integration of data across multiple oracle networks, including household names like Chainlink and Pyth Network. In doing so, it provides users with access to a wide range of data sources, improving the versatility and reliability of decentralized finance (DeFi) applications.

Addressing security and cost challenges in DeFi

The Oracle Aggregator is designed to address significant security and cost challenges in the DeFi sector. In 2023, the Web3 industry saw losses exceeding $500 million due to price manipulation attacks, a notable increase from $403.2 million in 2022. These attacks accounted for 33% of the total value lost due to hacks. By expanding the diversity and volume of data sources, Switchboard aims to strengthen the resilience of data streams against such malicious activities, thereby improving the overall security of DeFi platforms.

Empowering developers with customizable data streams

Switchboard’s new Oracle Aggregator allows developers to design custom data feeds that draw from a wide range of sources, both within and outside of the Switchboard platform. This flexibility allows developers to create tailored feeds that meet their specific needs, moving away from rigid templates. The platform’s permissionless nature and lack of gatekeepers ensure developers have complete control over the data feeds they create.

Switchboard CEO Chris Hermida noted that the company’s philosophy has always been to empower developers rather than constrain them. By launching Oracle Aggregator, Switchboard allows developers to use data from a variety of sources, including Pyth and Chainlink, enabling innovation and customization of their projects. Hermida noted that this new capability allows developers to break away from traditional models and take a more personalized approach to data integration.

Plug-and-Play approach for enhanced security

Switchboard’s Oracle Aggregator offers a plug-and-play approach that allows users to leverage multiple Oracle networks, enhancing data security and reliability. By aggregating data from multiple sources, developers can improve the scalability and redundancy of their data feeds, setting a new industry standard as the first generalized Oracle aggregator. This scalability ensures that projects can mitigate risks associated with data manipulation and other vulnerabilities.

One of the most notable features of Oracle Aggregator is its customizable nature. Developers can selectively choose trusted data sources, eliminating those that do not meet their standards. This level of control is crucial for projects that aim to protect their operations from potential threats.

Innovative use of secure execution environments

Switchboard uses Trusted Execution Environments (TEEs) to ensure that data aggregation occurs entirely off-chain. This innovative approach minimizes gas costs associated with on-chain operations while preserving data integrity. Aggregated data is then shared with users in a single on-chain transaction, simplifying the process and reducing operational expenses.

Mitch Gildenberg, Switchboard’s CTO, highlighted the platform’s developer-centric design. He noted that the platform is designed to put developers in control, allowing them to fine-tune each data flow to their specific needs. This approach reflects Switchboard’s commitment to understanding and meeting developer needs.

Expansion and impact on the industry

Since its launch in 2021, Switchboard has seen significant growth, amassing over 180,000 users and achieving a total valuation of $1.6 billion. The company’s commitment to user autonomy and inclusion has been a driving force behind its rapid expansion in the Web3 ecosystem. Earlier this year, Switchboard raised $7.5 million in a Series A funding round co-led by Tribe Capital and RockawayX, with additional support from leading investors including the Solana Foundation, Aptos Labs, Mysten Labs, Subzero Ventures, and Starkware.

Conclusion

As the DeFi industry continues to evolve, tools like Switchboard’s Oracle Aggregator will play a crucial role in building robust and secure decentralized applications. By giving developers the ability to integrate and customize data feeds from multiple sources, Switchboard is setting new industry standards, driving innovation, and improving the overall security of the Web3 ecosystem.

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DeFi

Bitcoin is the solution to inevitable hyperfinancialization

Published

6 months ago

1 August, 2024

FinCrypto Staff

Bitcoin is the solution to inevitable hyperfinancialization

Disclosure: The views and opinions expressed here belong solely to the author and do not represent the views and opinions of the crypto.news editorial team.

If there is one thing that is becoming clear, it is that hyperfinancialization is inevitable, and our best chance of achieving it successfully is through Bitcoin (Bitcoin). This decentralized cryptocurrency, known for its fixed supply and robust security, offers a unique solution to the coming problem of wealth inequality and concentrated power. By embracing Bitcoin, we can create a more transparent and resilient financial future, or we risk losing our financial sovereignty to a handful of corporations.

The hyper-financialization of the world has already begun, with the financial sector becoming a relatively larger part of the economy, in terms of size and importance. Financial structures are also expanding rapidly in other sectors.

For example, in 2023, Americans spent more than $100 billion on state-run lotteries, according to According to The Economist, the poorest citizens spent huge amounts on tickets. In addition, the online sports betting market, valued at more than $100 billion, is projected to generate nearly $46 billion in revenue this year, with a user penetration rate of 3.9%.

Moreover, Robin HoodRobinhood, a commission-free investment platform popular with retail investors, saw its funded customers climb to 23.9 million and its assets under custody soar to $129.6 billion, another prime example of the hyper-financialization trend. Robinhood began to gain traction during the COVID-19 pandemic in 2020, and the hyper-financialization trend was exacerbated. For people stuck at home, the online world became their primary means of entertainment and social interaction.

Governments then injected billions of dollars into the market, encouraging people to bet their money on the markets. The subsequent surge in inflation and the weakness of the global economy further intensified this trend, with people having to bear the burden of survival.

This has led to an increased proliferation of financial structures in different spheres of life, meaning that both manufacturers and consumers are taking this route.

As we can see, cryptocurrency has grown from less than $150 billion in March 2020 to $2.7 trillion today. This explosive growth not only accelerates the trend towards the hyperfinancialization of finance with yield farming, resttaking, points, rewards and meme coins, but also that of art via NFTs, social dynamics via social tokens and platforms like Friendtech, game with play-to-win conceptsand physical assets through tokenization.

There are also prediction markets that allow people to bet on all sorts of events. These range from the outcome of the 2024 US presidential election to whether Bitcoin will hit $100,000 by the end of the year, whether Drake’s verse in “Wah Gwan Delilah” is an AI, what the opening weekend box office of “Bad Boys: Ride or Die” will be, or whether the Fed will raise rates this year.

This growing trend towards hyper-financialization is detrimental to society because it widens already large wealth gaps by increasing wealth concentration and contributing to economic inequality. Not to mention that it will lead to even larger asset bubbles, a focus on the short term at the expense of the long term, and an increased interest in speculative investments.

Here, cryptography can help find a better way to address hyperfinancialization. After all, the wealth is in the middlemen, and using blockchain technology removes this third party from the equation, bringing reliability, traceability, and immutability to the market. Blockchain actually allows hyperfinancialization to be fair and transparent.

Before the advent of cryptocurrencies, not everyone was allowed to participate in markets. But through disintermediation and permissionlessness, cryptocurrencies have made markets more efficient and accessible. Not to mention, everyone gains full control over their data, mitigating the risk of data manipulation and privacy violations.

This is where Bitcoin offers the perfect solution. This decentralized peer-to-peer network enables financial inclusion and censorship resistance, which is critically important in today’s world where organizations and governments are encroaching on people’s rights. This network has a decade-and-a-half-old history behind it, providing a robust and secure platform for people to achieve financial sovereignty.

This trillion-dollar asset class also serves as a hedge against inflation, allowing holders to preserve their wealth over time. Unlike fiat currencies, which are devalued by politicians, Bitcoin’s fixed supply and decentralization protect it from such pressures, making it the perfect asset to own in a world where everyone is competing to extract value.

The largest crypto network is now also seeing experimentation, as developers and investors use it as a foundation to build a truly decentralized future of finance and value.

For so long, Bitcoin has been a low-activity blockchain, with its key role being to store value. While Bitcoin has played a passive role in the blockchain world for all these years, it has finally changed with Taproot Upgrade which brought NFTs into the Bitcoin world. Then there was a growing interest in tokenization, also from institutions like Blackrock.

This drive to expand Bitcoin’s utility has sparked a wave of innovation, and the day is not far when BTC could dethrone Ethereum as the go-to blockchain for decentralized finance. Several aspects, including Bitcoin’s robust security framework, widespread acceptance, and institutional interest, position Bitcoin at the forefront of defi innovation.

So, with these developments, Bitcoin is now evolving to begin its new era of utility and innovation after realizing its original vision of being a peer-to-peer electronic currency system.

As everything becomes a financial asset and tradable, attention, which is a scarce resource, will become even more crucial. Bitcoin has already cemented its position in the attention economy, and the newfound interest in regulatory complaints and widespread adoption of BTC to boost productivity will allow it to lead the future of digital economies. This portends a world where crypto leads the charge towards hyperfinancialization, with BTC in the driver’s seat.

So, to conclude, the resilient Bitcoin network that has spectacularly survived the test of time may have started as a means to facilitate the seamless flow of monetary value, but today, it has become a foundation of hope not only to protect against a future that is going to be super fixated on the financial aspect, but also to take advantage of it to create wealth and prosper.

Jeroen Develter

Jeroen Develter is the Chief Operating Officer at Persistence Labs and a seasoned professional in financial and tech startup environments. With a decade of international consulting, management, entrepreneurship and leadership experience, Jeroen excels at analyzing complex business cases, establishing streamlined operations and creating scalable processes. With Persistence, Jeroen oversees all product and engineering efforts and is deeply passionate about improving the adoption of Bitcoin defi, or BTCfi, and using intents to develop scalable, fast, secure and user-friendly solutions. His work at Persistence Labs addresses the significant interoperability challenges between Bitcoin L2s. In addition, Jeroen is also a co-host of the Stacked Podcast, a platform to gain knowledge about Bitcoin and cryptography from prominent Bitcoin creators.

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DeFi

Haust Network Partners with Gateway to Connect to AggLayer

Published

6 months ago

1 August, 2024

FinCrypto Staff

Haust Network Partners with Gateway to Connect to AggLayer

Dubai, United Arab Emirates, August 1, 2024, Chainwire

Consumer adoption of cryptocurrencies is a snowball that is accelerating by the day. More and more people around the world are clamoring for access to DeFi. However, the user interface and user experience of cryptocurrencies still lag behind their fundamental utility, and users lack the simple and secure access they need to truly on-chain products.

Haust Network is a network and suite of products focused on changing this paradigm and bringing DeFi to the masses. To achieve this goal, Haust Network has announced its far-reaching partnership with bridgeseasoned veterans in rapidly delivering revolutionary blockchain utilities for projects. The Gateway team empowers blockchain developers to build DAOs, NFT platforms, payment services, and more. They drive adoption of crypto primitives for individuals and institutions around the world by helping everyone build their on-chain presence.

Gateway specializes in connecting sovereign blockchains to the Aggregation Layer (AggLayer). The AggLayer is a single unified contract that powers the Ethereum bridge of many disparate blockchains, allowing them all to connect to a single unified liquidity pool. The AggLayer abstracts away the complexities of cross-chain DeFi, making tedious multi-chain transactions as easy for the end user as a single click. It’s all about creating access to DeFi, and with Polygon’s technology and the help of Gateways, Haust is doing just that.

As part of their partnership, Gateway will build an advanced zkEVM blockchain for Haust Network, leveraging its extensive experience to deploy ultra-fast sovereign applications with unmatched security, and enabling Haust Network to deliver its products to its audience.

The recently announced launch of the Haust Wallet is a Telegram mini-app that provides users with access to DeFi directly through the Telegram interface. Users who deposit funds into the wallet will have access to all standard send/receive services and generate an automatic yield on their funds. The yield is generated by Haust Network’s interconnected network of smart contracts, Haustoria, which provides automated and passive DeFi yielding.

As part of this partnership, the Haust Network development team will work closely with Gateway developers to launch Haust Network. Gateway is an implementation provider for Polygon CDK and zkEVM technology, which the Haust wallet will leverage to deliver advanced DeFi tools directly to the wallet users’ fingertips. Haust’s partnership with Gateway comes shortly after the announcement of a high-profile alliance with the Polygon community. Together, the three will work to build Haust Network and connect its products to the AggLayer.

About Haust Network

Haust Network is an application-based absolute liquidity network and will be built to be compatible with the Ethereum Virtual Machine (EVM). Haust aims to provide native yield to all users’ assets. In Telegram’s Haust Wallet, users can spend and collect their cryptocurrencies in one easy place, at the same time. Haust operates its network of self-balancing smart contracts that interact across multiple blockchains and then efficiently funnel what has been generated to Haust users.

About Gateway

bridge is a leading white-label blockchain provider that offers no-code protocol deployment. Users can launch custom blockchains in just ten minutes. They are an implementation provider for Polygon CDK and have already helped projects like Wirex, Gnosis Pay, and PalmNFT bring new utility to the crypto landscape.

About Polygon Labs

Polygon Laboratories Polygon Labs is a software development company building and developing a network of aggregated blockchains via the AggLayer, secured by Ethereum. As a public infrastructure, the AggLayer will aggregate the user bases and liquidity of any connected chain, and leverage Ethereum as the settlement layer. Polygon Labs has also contributed to the core development of several widely adopted scaling protocols and tools for launching blockchains, including Polygon PoS, Polygon zkEVM, and Polygon Miden, which is currently under development, as well as the Polygon CDK.

Contact

Lana Kovalski
haustnetwork@gmail.com

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