The concept of #cedefi is the extension and the upgrade of CEXs.
Originally, DeFi and staking projects all built their own pools to provide incentives to attract users to stake or provide liquidity through LP tokens. However, this incentive mechanism has stagnated. Everyone knows how to play the game, so the #Rewards are marginalized.
What CeDeFi essentially brings, is the transformation of regulated #custody becoming a secondary exchange.
The advantage is that projects get more flexibility and opportunities in handling the assets of its users. It opens the doors for financial instruments that require deep liquidity not found in DeFi. You can do #OptionsTrading and #Arbitrage on a large scale. Just what BounceBit and Ethena are doing.
As the name suggests, CeDeFi, naturally violates the principle of decentralization. Nevertheless, it undoubtedly has its place in crypto.
Money flows towards yield opportunities, regardless of decentralized or not. So stay on the lookout for projects that utilize CeDeFi infrastructure to provide what people are really looking for: sustainable yield
No it’s because they are purposefully pumping the price with the funds they got back from the MM, they made a whole post about it
CRYPTO MECHANIC
Mar 25
Be careful chasing $MOVE token
it's going up because they had to remove their market maker because binance found some fishy activities.
These wicks you see on the charts are because there is not enough liquidity on the pair right now.
👉🏻 What Does a Market Maker Do?
A market maker helps keep trading smooth by placing buy and sell orders in the market. This helps:
Reduce price jumps (also called “slippage”)
Keep trading spreads small (difference between buy and sell prices)
Provide liquidity so trades can happen more easily
When there is no market maker, the order book can become thin. This makes it easy for big orders to move the price a lot, creating those big wicks you see on the chart.
There will only ever be 2.1B $BB . That’s it that’s the maximum supply. Many people don’t know this, but BB staking rewards are reduced by 20% every year. It’s kind of like Bitcoin halving where every 4 years mining rewards are cut in half. $BB of course has to move quicker and has 1 year cycles instead. We are already at the half year mark since genesis. Also BounceBit chain runs on a dual token Proof of Stake consensus mechanism which allows for $BTC + BB staking. No other #RWA project has this kind of tokenomics bound to Bitcoin. Definitely something to keep an eye on when judging the performance of this coin. BounceBit is a young and upcoming Layer 1 ecosystem building for the long term.
$BB is pumping because Binance just quietly integrated native BB staking. They started running a BounceBit validator. Usually this means that Binance is bullish on BB, they don't run validators on just any network. Don't think market has caught on yet, bottom is in. Earn APY went from 0.57% to 5.7% today.