The boom in DeFi and pumping of many Uniswap/DEX coins has seemingly teleported us back in time to the 2017 ICO craze. There are billions of dollars flowing through DeFi ecosystems and there is a lot of money to be made (and lost).
The nature of any cycle is give and take, which is why putting money into DeFi and speculating on the pumping/dumping of various tokens can be extremely lucrative and also extremely dangerous. Throughout the past 4 or so weeks since this craze started, I've wanted to find a good project to invest in - one that has solid fundamentals and also the potential to pump.
Looking for logic among speculators is no easy task. We've joked in the LEO community about how making money in DeFi seems to require you to leave your brain at the door and listen only to greed. I like the fundamentals of HIVE and I've been a part of this ecosystem for so long. It's hard to take the time to really sit down and drill myself on the fundamentals of new projects. Especially as you see people jumping all over them like sharks.
Position Your Project In Front of Speculators
@theycallmedan posted a tweet about 1 week ago and said we should get HIVE on Uniswap:
Uniswap is a DEX swapping protocol. From the user perspective, it allows you to swap ETH and ERC20 tokens. Many utilize this as a way to simply convert across coins when there is a particular value proposition in mind - i.e. staking those coins into a DeFi platform, trading or some other purpose. Users can also participate in liquidity pools which allow them to earn passive ROI on tokens that they contribute to the swapping protocol.
Wrapped Coins allow you to seamlessly convert your mainnet coins into a wrapped version on another blockchain. This can allow you to hold the value of the original coin, but adopt the features of an ERC20.
A good example is wBTC. Wrapped Bitcoin (wBTC) allows you to maintain the value of Bitcoin (it tracks and is backed by actual BTC) but utilize wBTC tokens in DeFi protocols like MakerDAO CDP Vaults - something that I utilize regularly.
Dan's idea to wrap HIVE would give HIVE token holders the same features. It would also likely attract a lot of investors to HIVE who otherwise wouldn't buy the token.
A wrapped version of HIVE would allow you to convert your HIVE into wHIVE and then use the wHIVE to participate in DeFi protocols. Once you want to go back into mainnet HIVE, you can easily "unwrap" your wHIVE and get HIVE back.
The potential use cases are endless. The key thing to understand is that you maintain the original value of the main chain (HIVE, in this case) and adopt the features that are made available by the Ethereum blockchain (i.e. DeFi - MakerDAO, Uniswap, etc.).
Creating wHIVE could position the HIVE token and blockchain ecosystem in front of speculators. Solid fundamentals meets rampant token speculation and large investors.
wHIVE is Born
Today - August 15th, 2020 - the first wHIVE was minted on the Ethereum network:
I'm keeping a close eye on the developments here and I'm excited to see further tests of wHIVE. In just 7 days we went from idea to reality.
You can see the first wHIVE being born on ETH here:
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I wouldn't go for wHIVE tbh... wBTC works because BitGo works as a custodial for all the BTCs, which is dangerous, imagine if they get hacked or attacked by an authoritarian government... wHIVE is probably going to work the same way, with a custodial, and you know what they say "Not your keys, not your crypto".
I think the right solution would have been renHIVE, REN works with Multi Party Computation and dark pools where nodes don't need to know the key to use the keys, this makes it so, REN is much more trustless and permissionless than the wrapped tokens... Many inside the Etherian community are starting to see this and many are changing from wBTC to renBTC, so we should be one step ahead.
But it's a step in the right direction I guess... If the devs read this, look into REN, RenVM and renBTC, much more trustless and permissionless and I bet their team would be okey with helping to connect both ecosystems.
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I agree, wHIVE has the same problems as wBTC and other wrapped assets. I am working on making it more decentralized by using multisig wallet on Hive/Ethereum.
Atomic swaps could solve part of this problem if they were added to Hive: https://hive.blog/hive-102930/@netuoso/hive-bridge-atomic-token-swaps
Atomic swaps would be a good idea too. As long as the plugin didn't mess a lot with the L1 of Hive, messing with the L1 can result in drastic mistakes that can make the chain crash (like we've seen in the past)...
I suggested renHIVE was the way to go in Dan's original tweet.
The process is straightforward although maybe technically intermediate. A HIVE developer would have to make the integration using Ren's multichain repo then make a pull request.
https://github.com/renproject/multichain
Exactly, this would be the best! It's what REN was created for, and it's trustless and permissionless, that's what we want, and by having a renHIVE this fast would probably increase the status and reputation Hive has in the crypto community...
Amazing!!!
It is really unbelievable on how many ends Hive is making progress. The market starts to recognise it. Will we ever have the 20 to 21c levels again? Pity that I didn´t pick up more when Hive was really cheap...
I'm going to bookmark this and come back to it in a year to laugh at you :D
It's cheap now, friend! :D
Although I can't really justify buying more... so same boat I guess.
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Says the one who powered down...
Of course I hope you are right.
Powering down aint selling.
Something inside me makes me feel 30K hive isn’t enough.
100K sounds rights
That was fast.... next stop wLEO :)
wPosh after?! :p
Lol ... jump on the train
You can already instantly swap LEO into BTC and ETH. wLEO isn't out of the question 🦁
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Where and how can one do that?
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Haha definitely a possibility ;)
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Wow that is quite a breakthrough. This shows how quickly things can move on Hive.
This should help to open things up a great deal more.
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Dang. This seems huge, how have I not heard about it until now? What are some of the main type of applications looking to be first explored with wHive? Anyone know?
I mean the dev did just announce it today with @theycallmedan asking about it only a week ago.
Months behind :D
I'm guessing just speculation on Uniswap / other DEXes to start out.
Liquidity is it's own kind of application.
Privacy matters to a lot of these big traders.
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I feel like it wasn't even a week ago, lol.
I'm ok with speculation! Looking forward to seeing how this one plays out!
It’s all happened so fast, that’s why!
The first applications will be inclusion on the top DEX’s on Ethereum. Listing there is free and easy once the ERC20 is setup. From there, you’ll be able to stake wHive in liquidity pools and probably interact with DeFi directly at some point
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wHIVE birth is step in the right direction for Hive Revolution
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It’s a huge step forward. I think we’ll look back and remember this as being a pivotal moment in Hive’s evolution as it connects to other chains like Ethereum
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lol wtf? So fast... Hive is so undervalued right now too imo. So many shiny new things out there that have been drowning us out a bit. We will not be ignored!
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Now imagine wrapped Bitcoin and wrapped Ether on Hive.
They could really use our fast and free transactions.
Even better.
Exciting times for all of crypto
Really cool! Can/will more be minted? I'd like to have some just to hold WHIVE in my Meta Mask :)
Yes, more tokens will be minted after the official launch when people deposit HIVE, so every wHIVE will be backed by actual HIVE.
this may be a dumb question, but is there any gas fees involved with doing this? Do I need some sort of eth wallet to stake some wHIVE in order to help this project?
It's on Ethereum mainnet so yes.
yes to wallet? Yes to gas fees? Yes to both?
I would say it's yes to both.
This is pretty cool. I was planning to trade my liquid HIVE for ETH once I built my balance up a bit but maybe I will convert it to WHIVE instead and play around with adding it to the uniswap liquidity pool. Thanks for sharing.
EDIT: I don't think anyone has been brave enough to create the liquidity pool yet? I will keep an eye out ;-)
Still thinking about this ... there's already wBTC and now wWHIVE.
I wonder if this will inspire communities from the other main chains (DASH, Monero, XRP, NEO, Binance, etc, etc) to create their own 'w' (wrapped) tokens on ethereum?
And then I wonder if some of these new wrapped tokens that come on to ethereum will be added to MakerDAO as collateral for DAI minting, thus bringing more value to their own chain and the DeFi ecosystem as a whole?
Will these communities start to add proposals on MakerDAO to be added as collateral?
I think this Defi thing is a game changer for sure. Will make the ICO craze look tame probably. People will obviously just go absolutely nuts with it until it blows up Bitconnect style. Its a little over my head still at the moment but what i do know is that when unlimited amounts of money can be made it will A go nuts and B probably end in tears.
Wow es una exelente iniciativa y muy instructivo, gracias por compartir, te dejo mi voto y te sigo.
awesome, we need a DeFi category on hivedapps.com also, and list and promote Hive-powered DeFi apps such as hive-engine, the internal stablecoin DEX and more :)
It's exciting times right now, that's for sure. Hopefully this translates into long term price action.
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This all sounds pretty cool but I'm just a little bit confused on how it works.
By I just regurgitating the words you guys said,
This is where I got lost...
We can add wHIVE to a liquidity pool that people borrow against, this would be like locking up our tokens for 30 days for a high APY?
Where do you make money on wHIVE?
Would we need to pay ETH GAS costs?
Are their any youtube videos or further reading on this?
thanks for your answers!
You can trade wHive on DEXes. Also, if you provide liquidity on Uniswap, you earn part of the fees (https://www.asiacryptotoday.com/uniswap-guide/, https://decrypt.co/resources/what-is-uniswap).
Yes.
great!
This is very cool! Congratulations!
Get whive to the stage where hive holders can earn yield farming tokens like balancer, compound, lend etc. That would help reduce hive supply and a cascading effect of upward price moves... well done, congratulations and all the best.
we should hook Hive on into polkadot, that's the future!
LOL so now I can send HIVE at a cost and pay gas fees yeah! Okay but in all seriousness, this is great if we can get HIVE into the various DE-FI tools using wHIVE or better getting ETH and ERC-20's flowing into wHIVE and then to real HIVE
Hi
This is fascinating:
I have read of wrapped Bitcoin. It’s certainly a good idea to wrap your coin for which you have longterm interest. Do you plan wrapped LEO? Or is that impossible for Hive-Engine Tokens?
This is news indeed.
It's possible.
Actually, it's possible to wrap anything into the token. Someone made an ICO from himself, and then let his "shareholders" to decide about his life. Wrapped tokens are just a (fancy) way to say that tokens represent someting else (assets on other chains, fiat, gold, etc..).
Thank you. I assume someone has to volunteer or be paid to write the code for each new coin to be wrapped?
Coins itself are usually standard ERC20 tokens and anyone can create them (e.g https://vittominacori.github.io/erc20-generator) but someone has to build an "oracle" to exchange wrapped tokens and another asset.
Thanks for the information. I will check out the link to see what I can learn there.
News like this excites me!
Or is it just my greed speaking? ;<)
Thanks for the heads up.
It's more experienced traders like you ( who can write well too ),
that I learn from.
Keep these posts coming,
Vincent
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Amazing move! Glad to see Hive & LEO going strong lately!
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Things are going forward, and it's happening fast! Fasten your seatbelt, friend! HIVE is going to mars!
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I guess this is indeed a cool new development but looking at a gas fee of 2.29$ for this wrapping means that this will only be worthwhile with big amounts of Hive to negate the gas fees.
I guess I will save up a bit of liquid Hive to wrap and provide liquidity
I did not manage to add the ETH whive contract address to my non custodial wallet. I also have a BSC Chain Network. Any leads on that?