⚡️

[DavyCrypto @Davyegld]

What @xPortalApp (and xMoney) can aim to is something like Satispay.

https://t.co/4CyU2EJ4mu

But potentially more efficient and with self-custody.

For those that don't know about it, it's a alternative payment method we have here in Italy that is having a great success.

The idea, the execution, the communication of it made it accepted by basically most merchants in Italy.

The main problems solved:
- Payments between users made simple | split bills with friends | pay with satispay from your phone | card charged automatically periodically for free from your bank account
- Fees | fees for both merchants and users are way lower than the traditional banking system

300k shops (735k in total) in italy and 4mln people using it. A success history.

Some info:
1. Commission of 0.2 eur only for purchases higher than 10eur.
2. No activation cost or monthly costs
3. Payments for bills, phone top-ups and other recurring services
4. Some features of the app help users save money, such as the ability to set savings goals or round up purchases and set aside the difference.
5. Localized in Italy but recently expanding in EU
6. Cashback in partners stores
7. Feature to store cards in the app: documents, health card, social security number, loyalty cards, gift cards etc.
8. Meal Vouchers with better UX compared to most competitors. Paying in one go with both the meal voucher and money. Validity for more time, 2 years and lower commissions and processing times
9. AdvisorEat suggesting restaurants where to eat. Accumulating points to convert in gift-cards and vouchers

On xPortal/MultiversX:
1. Asset transfers are already lower (metatransactions could be used for purchases lower than 0.2?) -> 0.01$ fixed fee. Would be better to have it fixed to a $ value and not EGLD value (see Hedera)
2. No costs, all the infra handles the costs (which is hella cheap on MvX and decentralized)
3. No info on this but would be great
4. Doable pretty easy with smart contracts
5. In theory easier to expand to other countries due to blockchain tech
6. Doable with xMoney (interested to see how Guilds will be)
7. This can and will be made easier and better with blockchain. Why an old card when that can be a dynamic NFT?
8. Could be done as well totally on-chain. Better for transparency and efficiency. Some further UX improvements would be made possible by being on-chain.
9. Tells me @Inspir3NFT

The company was launched in 2015 after 2 years of work.

First big funding Series Cround in 2020, 93m$ and among the investors? Tencent👀
2020 they reached their first 1mln users, it took 5 years since launch.
Second big Series D round for 230mln$ in 2022.

The crypto payment infrastracture is still not yet mature enough to substain such large usage, especially from a regulation pov.
But that's the direction we're going into and MultiversX being EU centered, owning @xMoney_com @xPortalApp and @twispay can aim to do what Satispay did in eastern europe first and then in all Europe.

With the technological advantage a blockchain like MvX gives. Maybe we'll see the same SatiSpay using crypto in the back in the near future.👀

What do you think?

[DavyCrypto @Davyegld]

What. The. Hell. Does this mean?

Here for you, in human terms.

What the #MultiversX team is building is incredible in both potential and innovation.

Sovereign chains will be separate chains:
🔸Seamlessly connected to MultiversX
🔸Connected without any bridge or wrapped tokens. For users, it will feel like using only one chain
🔸TOTAL abstraction
a/High Security:
Settlement: on-chain data stored on MvX for immutable ledger storage
b/no admin keys: whoever creates the chain cannot free or steal funds
c/Data availability: even if the chain is down, it will be possible to pick up funds and move them back to the mainchain
🔸Multiple VM compatibility: it will be possible to take code and use tools available for other VMs
🔸Full VM compaibility: possibility to copy and paste from other chains
🔸Multiple fully composable VMs in parallel: code from different chains used and that can interact with each other. A first in crypto.
🔸L2s for other chains. Secured by other chains as well but seamlessly connected with MultiversX and its tech stack.

Imagine the MultiversX chain connected with multiple SovC each with different VMs.

The possibilities are infinite and it’ll make MvX really a general purpose chain able to do everything you can think of with scale, decentralization and security.

Those chains will be more easily connected with other chains like cosmos or Ethereum chains. And so act as a bridge between MvX and those other ecosystems, resulting in a next-level interoperability.

This is what sovereign chains will allow. And a lot more.👀

[House of Chimera @HouseofChimera]

Progress Update: @MultiversX

🔹The $EGLD ecosystem is ramping itself up for Sovereign Chains, an extension to the @MultiversX main chain, seamlessly interconnected and decentralised.
🔸This thread aims to provide context and insights into Sovereign Chains on @MultiversX

[Robert Sasu | dev/acc @SasuRobert]

MultiversX as a L1
MultiversX as a $BTC, $ETH L2
MultiversX as a Metalayer / L0
MultiversX as a App Chain
MultiversX as a Truth machine
MultiversX as a Institutional Layer

Call it as you want, @MultiversX cannot become only one of those, it can become ALL AT ONCE.

The technological stack is here and it invites all the builders and projects to use it. I believe the SovereignChain SDK, the SpaceVM, the SpaceCraft SDK, the mainchain is a 1 to 1000 evolution of blockchain.

Everything you imagine can be built. Just come and try. Multiple hackathons, startup schools, incubators are here to guide on the road if you want. We will go to universities, new cities, new countries to search for all the amazing minds.

Web3 is about interoperability, composability, compounding effects, open communities, open source technologies.

Is it always time to build!
It is always a must time to build!

[DavyCrypto @Davyegld]

Hatom provides exciting opportunities for crypto users to earn with their assets, but high rewards usually come with high risks.

This is not true for many Hatom opportunities, for those who deeply understand the protocol.

Understanding these risks isn't simple, but this post aims to shed light on them.

I'll guide both new and experienced users through the various DeFi options and explain the potential risks of using Hatom.

Potential risks with Hatom include:
1⃣Position liquidation
2⃣Full utilization
3⃣Bad Debt
4⃣Oracle manipulation
5⃣Liquidation cascade
6⃣Security concerns

1⃣Position Liquidation:

When a user wants to interact with the Hatom lending module it has to first provide collateral. This is requested to keep the system decentralized and reliable.

Users provide collateral and based on the collateral they can borrow some funds; the amount of loans a user can take is based on the collateral factor for each specific token provided.

Let’s make an example:

Let’s consider USDC and EGLD which have 80% and 75% collateral factors.

If a user provides 1000 USDC and 1000$ worth of EGLD, he’ll be able to borrow up to 800$ and 750$ worth of tokens.

Total borrowable amount 1550$

⚠️So what are the risks?
When borrowing tokens you need to consider the health factor, which is represented by a coloured bar at the top of the lending module.

Liquidation happens based on the liquidation factor which on Hatom is identical to the collateral factor. This means that as for our example, the user can’t exceed a total borrowed amount of 1550$. If he surpassed that, liquidators can liquidate them.

The platform suggests not crossing an 80% borrow limit, cause at 100% you’re eligible to be liquidated. But there are cases in which is safer to go over that, we’ll see later.

The platform anyway doesn’t allow you to reach a 100% borrow limit, so the risks are 2:
🔹 The price of the tokens you provide as collateral or the ones you borrow change
🔹Interest compounds and increase the loan value till it gets liquidated

🔹3 different examples to understand liquidation caused by price fluctuations:

1➡️Stablecoin collateral and volatile asset loan

If a user provides 1000USDC worth of collateral, with a collateral factor of 80% he can borrow 800$ worth of tokens. USDC is a stablecoin so its price remains constant, the tokens borrowed are volatile; so the user could borrow 500$ worth of EGLD cause the limit is 800$ worth of assets. But if EGLD grows in value and the total value of the borrowed tokens surpasses 800$, the position will be eligible for liquidation.

2➡️Volatile asset collateral and volatile asset loan

If a user provides 1000$ worth of EGLD, with a collateral factor of 75% he can borrow 750$ worth of tokens. If he borrows 500$ worth of volatile assets, the risk relies not only on the price of the volatile asset but also on the collateral.

If EGLD price dumps and the collateral value is no longer 1000$ but 500$, the total amount borrowable becomes 375$. If the user borrowed 500$ worth of assets and those didn’t decrease in value, he’ll be liquidated cause the value can now not surpass 375$.
This type of position is riskier but can be managed with a correct risk assessment.

3➡️Collateral and loan with the same asset

If a user provides 1000$ worth of EGLD and borrows EGLD tokens, the value of the two tokens will always be the same, so there’ll be no liquidation risk caused by price changes. But there’s still one which is interest liquidation.

So you need to ensure that the actual value of what you borrowed is never near the max value; you can control that by looking at the health factor bar which never has to reach 100%.

🔹Interest liquidation

Other than loan value increases caused by price fluctuations, you need to keep an eye on interest. When you borrow tokens you pay an interest that fluctuates based on demand and offer for that token.

The interest is accumulated in your position, so if you have a 1000$ loan with an average 10% interest for a year, you’ll pay 100$ in interest. That value is being accumulated in your position, so after 1 year your loan will be 1100$. Since this increases the value of your loan, it can cause a liquidation caused by interest accumulation.

⚠️Keep it in mind.⚠️

Since interest rates can fluctuate over time due to changes in supply and demand, there's a risk of interest rates skyrocketing if the supply decreases or the demand for loans increases significantly.

To mitigate this, the protocol adjusts interest rates in a non-linear fashion based on the utilization rate of each token to always keep interest rates within healthy levels.

2⃣Full utilization

To prevent a scenario where all assets are borrowed, thereby preventing users from withdrawing their funds, the system employs measures to manage interest rates dynamically.

Once the utilization rate surpasses a certain threshold, which varies for each token, the interest rate no longer increases linearly. This is a deliberate strategy to prevent excessively high utilization rates, which leads to steep interest rates and supply APRs.

High supply APRs serve as an incentive for users to supply more assets to the pools, thereby reducing the utilization rate. Similarly, high interest rates encourage users to repay their loans promptly, further decreasing the utilization rate.

By implementing these mechanisms, the protocol aims to maintain a balanced utilization rate, ensuring that assets remain available for withdrawal while incentivizing users to manage their borrowing and lending positions.

3⃣Bad Debt

To maintain a position where the amount borrowed by users doesn't exceed the value of the available assets in pools, a liquidation mechanism is implemented. Users become eligible for liquidation if their borrowing surpasses a certain threshold, safeguarding against bad debt.

This is facilitated by the collateral factor, which acts as a buffer to ensure that if a user's borrowed funds exceed a specified proportion of their collateral, they are subject to liquidation. The liquidation threshold acts as a safety buffer, guaranteeing that liquidators always have an opportunity to profitably liquidate user positions while returning assets to the protocol.

Liquidators can then step in to repay half of users’ positions, profiting from the process. Through this, the platform retrieves the borrowed tokens, ensuring that borrowed value never exceeds the collateral provided.

4⃣Oracle manipulation

Price fluctuations pose significant risks to the lending protocol, which relies heavily on token prices. These prices are obtained from various sources and managed by an oracle created by Hatom.

The oracle's main task is to gather prices from different sources to prevent attackers from manipulating prices and causing liquidations.

If there are discrepancies over set ranges between these sources, the protocol will be paused as a precautionary measure to avoid oracle manipulation attacks.

5⃣Liquidation cascade

All the tokens in the protocol are pooled together so that users providing liquidity in a specific token can borrow another token provided by other users. The whole system relies on its overcollaterized nature, so that there are always more tokens in collateral than the ones borrowed, to avoid the creation of bad debt.

To avoid this from happening there is the liquidation mechanism we’ve talked about above, which always requires the tokens provided to find some demand and liquidity in the market to be liquidated.

Liquidators can repay 50% of the loan position of liquidable users earning a fee, to ensure the lending protocol has no bad debt. A risk is having some big liquidations that don’t find demand in the market so those tokens can’t be liquidated.

To avoid this, only strong assets are chosen and on those that are less strong, there are strong caps in supply and borrow markets.
The risk associated with weak assets unfolds as follows:
🔸Suppose the value of the weak token A declines rapidly.
🔸Users have provided collateral in token A and borrowed token B.
🔸Liquidators settle the loan by providing token B to the protocol.
🔸To obtain token B, liquidators sell the collateral token A held by the user.
🔸Selling token A in the market further drives down its value.
➡️This downward spiral triggers additional liquidations, creating a cascade effect that potentially leads to the creation of bad debt.

To mitigate this risk, Hatom accepts only robust assets and imposes caps on certain tokens.

A buffer exists between the amount users provide as collateral and what they borrow, enhancing the protocol's resilience against market fluctuations.

The mechanism implemented by Hatom is similar to the ones of AAVE and COMPOUND which demonstrated through the years and multiple black swan events to be solid.

6⃣Security concerns

The crypto industry has witnessed several high-profile hacks in recent years.

Hatom is built on the MultiversX blockchain, which has maintained a strong security record, with only one incident stemming from a bug in a specific function within the virtual machine.

Notably, no vulnerabilities related to smart contract logic have been identified to date, underscoring the exceptionally secure environment provided by MultiversX.

Key security features of MultiversX include:

🔸All assets on MultiversX are native, not smart contract-based, and lack approval functions, ensuring heightened security for users.
🔸Smart contracts inherently offer greater security due to built-in protections against reentrancy and overflow.
🔸Protocol-level protection limits MEV (Miner Extractable Value) transactions, reducing potential vulnerabilities.
🔸All protocol upgrades undergo thorough auditing and formal verification processes to ensure integrity and security.

Despite these robust measures, the potential for bugs and errors in smart contract logic remains a concern.

Consequently, Hatom has undertaken a proactive approach by conducting more than 10 audits and 2 penetration tests for the lending protocol alone (15 audits in total) thus far, partnering with leading firms in the crypto space.

This commitment to ongoing auditing will persist for every new module or upgrade, reinforcing Hatom's dedication to maintaining the highest standards of security and reliability for its users.

🟩🟩🟩🟩🟩🟩🟩🟩🟩🟩🟩🟩🟩

That's it guys.

I hope you liked this educative long post. It wasn't a short read but the goal was to explain as better as possible the main potential risks for Hatom.

If you still have some doubts:
- Ask below
- Ask us in our tg channels
- Read more in Hatom docs

Some useful links in the first comment.

If you liked this post I'd appreciate a like and retweet; if you want similar content follow me @davyegld.🫶

[⚡️ @MultiversXIT]

@Romsty23 @MultiversX @DeFi @ethereum @solana @binance @mert Is it easier to understand this way Mert?

[⚡️ @MultiversXIT]

@HbarWhisky Hey man, can you DM?

I'm @Davyegld. Why did you block me?🤔

[Beniamin Mincu |🇺🇸/acc @beniaminmincu]

morning #MultiversX

the @xDay2023 hackathon is coming! 🔥🛠️

with that, we've had several reviews on tooling and dev experience.

if you're a builder on #MultiversX and have played with the current tool stack -- contract writing, testing, deploying & frontend interactions via sdks and templates --, I have two questions:

1. what is the most painful step in the process? What could we change to make it significantly better?

2. what is the one thing that could significantly simplify dev onboarding and improve iteration and deployment speed considerably?

very curious to hear your thoughts.

[Beniamin Mincu |🇺🇸/acc @beniaminmincu]

When markets are under fire, there’s always a bit of drama. Your whole mental model is being stress-tested.

So here's few simple but useful reminders:

1. Stay focused, keep building. The market is a manic depressive. Hold your mental ground and emotional distance. Don't get seduced or hypnotized by this type of phenomenon.

2. Don't fall for the end of history illusion. Although there's always a slight non-zero possibility, the world will not end today. Markets will continue tomorrow, businesses will continue, the blockchain and crypto space will continue. Resist reinterpreting all of life based on the heat of one moment. Zoom out. Think. If you have the eyes, there’s a new lesson to be learned today.

3. Lastly, #MultiversX is here to stay, to grow, and expand. We've not started yesterday, we'll not end tomorrow. We've been through vastly more difficult situations. Can we learn something from what is happening? Certainly. Can we improve even more? Definitely. Can we seize this opportunity, and level up? We must. This is what we are doing. Preps before @xDay2023, at xDay, and beyond.

New day, new energy! For stepping back and thinking, for building, and vigurously pushing forward.

[DavyCrypto @Davyegld]

.@beniaminmincu and top builders will join an @EntityFinance online event sponsored by #MultiversX

Get out your agenda and mark 10/06!🗓️

They'll talk about DeFi, GameFi and Web3 related topics🧐

Mark the date and share with a RT⚡️

[⚡️ @MultiversXIT]

@AtOnceCo ChatGPT

[⚡️ @MultiversXIT]

@colingrowlancer 131

[⚡️ @MultiversXIT]

@AdamFard_ Send

[⚡️ @MultiversXIT]

@CryptoIRELAND1 #MultiversX leading🫡.

All on a poll made by a Cardano influencer, astonishing! And comments full of MVX people, how could it be better?

[⚡️ @MultiversXIT]

@probabilnu What I can't stand is others being influenced by your negative attitude towards people and the world. I really can't if I read those tweets full of attacks, accusations and negativity.

[⚡️ @MultiversXIT]

@probabilnu And anyway where did I say you're obliged to answer me? I have no intention to change your idea, it'd be stupid.

I've understood you have a god complex and can't stand different ideas.

If TW keeps showing content, I'll answer if I feel it so others can read it.

[⚡️ @MultiversXIT]

@probabilnu I have no obsession. Of all my timeline you're the only one writing tweets against others and full of misinformation.

If you don't want to debate stay away from social media.

[⚡️ @MultiversXIT]

@probabilnu For this reason, most of the things said in the doc are already in place for other financial assets. And atm if crypto assets are seen as such they should follow those rules.

Some new and specific rules will be applied, and it's always better to be compliant today than later.

[⚡️ @MultiversXIT]

@probabilnu And if you spent time reading that doc and not saying stupid arrogant things here on twitter, you'd see how many legal obligations and transparency needs are explicitly discussed in that doc.

Now crypto assets are in a limbo cause we don't have clear ways to define them.