Notes 2022-06-06

FTX Switzerland (Canco GmbH) is authorized to provide brokerage services for tokenized stock trading.

Tokenized Stocks, like the rest of FTX, are not being offered to US users or other prohibited jurisdictions, potentially including Iran, Afghanistan, North Korea, Hong Kong, Singapore, and/or other jurisdictions.

Users must pass sufficient KYC checks in order to trade tokenized stocks on FTX.

• With a non-custodial wallet, you have sole control of your private keys
• With a custodial wallet, another party controls your private keys

In financial circles, custody refers to the holding of assets on behalf of a client. The use of a custodial service can be desirable to an asset holder, as it mitigates security risks like theft or loss.

In cryptocurrency, custodial solutions are those where a third party holds the private keys to the user's funds. They're the only ones able to actually send and receive the user's coins. While the owner of the cryptocurrency owns it in a legal sense, they have no ownership at the protocol level.

USDC is a stablecoin fully backed by cash and short-dated U.S. government obligations, so that it is always redeemable 1:1 for U.S. dollars. Attestation reports by Grant Thornton regarding the reserve balances backing USDC are published monthly on their website.

Balance of USDC in circulation on 2022-05-27 is $53.5B

BUSD is a regulated, fiat-backed stablecoin pegged to the U.S. dollar. The supply of BUSD is pegged to the U.S. dollar at a 1:1 ratio. Paxos, the token's issuer, releases monthly attestations of BUSD's reserves.

Balance of BUSD in circulation on 2022-04-29 is $17.6B

As a stablecoin, BUSD is designed to maintain a stable market value. It allows investors and traders to hold a low-volatility asset on the blockchain without the need to exit the crypto space.

There are 2 types of BUSD

• BUSD (ERC-20) issued by Paxos, regulated by New York State Department of Financial Services (NYSDFS)
• BUSD (BEP-20) issued by Binance, not regulated by NYSDFS

The Dai stablecoin is a decentralized, unbiased, collateral-backed cryptocurrency whose value is soft-pegged to the US Dollar.

Dai $1 USD equivalent is maintained through automatic pricing mechanisms built into smart contracts. When Dai is worth more than $1, the smart contract pricing mechanism works to decrease the price. Conversely, when Dai is worth less than $1, the smart contract pricing mechanism works to increase the price.

Balance of Dai in circulation on 2022-05-27 is $6.58B

Dai is held in digital wallets and supported on Ethereum and other popular blockchains.

Users generate Dai by depositing collateral assets into Maker Vaults within the Maker Protocol. Depositing collateral into Maker Vaults enables Dai to be minted and entered into circulation.

Every Dai in circulation is directly backed by excess collateral, meaning that the value of the collateral is higher than the value of the Dai debt, and all Dai transactions are publicly viewable on the Ethereum blockchain. The collateral portfolio, a pool of on-chain digital assets that back the Dai supply, can be tracked here. 70% of the portfolio is backed by USDC and ETH.

BNB stands for "Build and Build".

BNB powers the BNB Chain ecosystem and is the native coin of the BNB Beacon Chain and BNB Smart Chain.

Use case of BNB:

• Reduced trading fees on the Binance exchange or Binance DEX (Decentralized Exchange)
• Pay for transaction fees on the BNB Beacon Chain or BNB Smart Chain
• Pay for goods and services for both online and in-store purchases (e.g., using Binance Card or Binance Pay)
• Participate in token sales hosted on the Binance Launchpad

You can find BNB in three different forms:

• BNB BEP-2 on the BNB Beacon Chain (former Binance Chain)
• BNB BEP-20 on the BNB Smart Chain (former Binance Smart Chain)
• BNB ERC-20 on the Ethereum network

Nexo is an online loan platform that allows you to obtain financing in return for putting up a security deposit.

Your security deposit will come in the form of digital currencies like Bitcoin and Ethereum. In return, you’ll be able to borrow an amount that is proportionate to the size of your security. Crucially, Nexo allows you to borrow funds in real-world money. Think along the lines of USD, EUR, and GBP.

A further selling point to using the Nexo platform is that you can liquidate your cryptocurrency holdings without needing to sell them. In other words, as long as you always meet your repayments, you’ll get the exact amount of cryptocurrency back once the loan has been repaid in full. This will help you to avoid a taxable event.

Aave is a decentralised non-custodial liquidity market protocol where users can participate as depositors or borrowers. Depositors provide liquidity to the market to earn a passive income, while borrowers are able to borrow in an over-collateralised (perpetually) or under-collateralised (one-block liquidity) fashion.

The cost of interacting with Aave protocol?

• Interacting with the protocol requires transactions and so transaction fees for Ethereum Blockchain usage, which depend on the network status and transaction complexity.

Where are my deposited funds stored?

• Your funds are allocated in a smart contract. The code of the smart contract is public, open source, formally verified and audited by third party auditors. You can withdraw your funds from the pool on-demand or export a tokenised (aTokens) version of your lender position. aTokens can be moved and traded as any other cryptographic asset on Ethereum.

Aave (AAVE) token

• AAVE is used as the centre of gravity of Aave Protocol governance. AAVE is used to vote and decide on the outcome of Aave Improvement Proposals (AIPs). Apart from this, AAVE can be staked within the protocol Safety Module (address) to provide security/insurance to the protocol/depositors. Stakers earn staking rewards and fees from the protocol.