FDIC pins Signature Bank’s failure on poor governance and illiquidity

    FDIC blamed SBNY’s board of directors and management for pursuing “unrestrained growth” using uninsured deposits without implementing liquidity risk management strategies. The United States Federal Deposit Insurance Corp’s (FDIC) post-mortem assessment of Signature Bank of New York (SBNY) revealed poor management and inadequate risk management practices as the root cause for its collapse. Signature Bank…

    Connecting DeFi: How multichain token systems can improve liquidity

    Multichain token systems can move tokens between different blockchains, allowing users to access liquidity across multiple markets. Digital assets are typically restricted to their native blockchain networks, and existing methods of transferring tokens from one blockchain network to another are highly vulnerable to hacking or involve using a trusted third party. However, multichain tokens enable…

    Forget time-consuming DeFi practices — Simple solutions for auto-farming

    DeFi is still in its infancy, yet companies are competing to offer the most convenient and high revenue-generator tools. The latest developments in the space are explored. The world of decentralized finance (DeFi) opened a vast array of new opportunities with its explosion in 2020, but it also brought new challenges and profound risks to crypto users….

    DeFi ‘fragility’ causes and cures explored in highly technical Bank of Canada study

    Researchers affiliated with Canada’s central bank identified weak points in DeFi lending protocols and reported on the potential they saw for mitigating them. The Bank of Canada has released a working paper that examines lending protocols in decentralized finance with regard to sources of instability and their relation to crypto asset prices. Its findings point…

    Proof of Stake Alliance publishes white papers on legal aspects of liquidity staking

    Experts from 10 industry organizations contributed to this pioneering examination of legal questions surrounding proof of stake. The Proof of Stake Alliance (POSA), a nonprofit industry alliance, has published two white papers examining on the status of deposit tokens in United States securities and tax law on Feb. 21. The papers were authored by representatives…

    DeFi’s Next Big Thing: Liquid Staking Derivatives

    More and more DeFi Protocols have begun supporting LSDs to offer a more flexible way to stake and earn. The popularity of liquid staking derivatives (LSDs) has increased significantly in recent months resulting in a surge in cash flow in DeFi. LSDs are a relatively new type of token that enables stakers to augment potential…