Litecoin Started the Day by Breaking Above 200-Day Average
For Litecoin (LTC), the end of a four-hour candle came as a positive run. It finished the last 4 hours down by 0.66% or $0.32. Then, on a relative basis, Litecoin became the worst performer out of all the five assets in the Top Crypto assets class over the past 4 hours.
The opening price of Litecoin was $47.86, resulting in yesterday being one where price moved up 0.82% or $0.39 from yesterday. The said move happened on lower volume, as the volume yesterday declined 34.45% from the day before. Then, it fell 56.57% from the same day from last week.
For its technical analysis, Litecoin crossed over its 200-day moving average yesterday. Also, trend traders would wish to observe that the strongest trend appears on the 14-day horizon. At that time, the price has been moving down. In another vantage point, consider that the price of Litecoin has gone up 5 of the past ten trading days.
A Bitcoin-Backed Yield Dollar
Ren, a Trustless cross-chain bridge, and UMA, a permissionless synthetic asset platform, have teamed up to launch a Bitcoin-backed yield dollar called uUSD. And this is an addition to a joint liquidity mining reward program.
The partnership will end up in a product that enables investors to leverage Bitcoin permissionless on the Ethereum network. The uUSD is UMA’s second yield dollar product after an Ethereum-backed yield dollar called yUSD, launched in July 2020. The idea was highly successful, with more than 10 million yUSD minted over the last two months.
Furthermore, a yield dollar is like a stablecoin but with some significant differences. It has an expiry date similar to a futures contract, and as the date approaches, the price will become $1. In the time of expiry, it would be redeemable for $1 of the collateral asset at the same time of expiry. UMA described it as representing a fixed-rate, fixed-term loan. And this is because when they minted, they value yield dollars at less than $1.
Then, users will buy renBTC – a tokenized Bitcoin competitor to wBTC – and lock it as collateral with UMA to mint uUSD tokens. They could use the said yield dollars for additional purchase of renBTC or for investment on other DeFi protocols.
Ren and UMA
Moreover, in addition to the latest yield dollar would be a joint Ren and UMA liquidity farming incentive to begin collateral deposits. It would allow investors to gain UMA and Ren tokens for providing liquidity to the Balancer pool for uUSD that can be paired with USDC. Also, the renBTC yield dollar has a 125% collateralization ration that matures on October 1st.
Aside from the BAL tokens per the protocol’s calculations, the pool will get 10,000 UMA and 25,000 REN tokens per week to incentivize yield farmers. The annual percentage rate is not fixed and will rely on the amount of liquidity provided during the whole seven-day period.
For the rapidly growing wrapped Bitcoin market, the offering is positive news. This lets yield farmers put their BTC holdings to work on ERC-20 based protocols. During the last three months, the number of Bitcoin tokenized on the Ethereum network boosted 1350%. Currently, it stood firmly below 78,000 BTC.
Get the latest economy news, trading news, and Forex news on Finance Brokerage. Check out our comprehensive trading education and list of best Forex brokers list here. Subscribe now and receive FREE updates on the market today!