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Colombian Government May Take Unused Bank Funds from Inactive Bank Accounts for One Year

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The budget law for next year, approved recently by the Colombian representative’s Chamber, contains a controversial article that permits the state to seize funds from bank customers to be used for budgetary reasons. These funds can be recovered if account holders prove ownership.

Colombian Government Wants Unused Funds

The new budget law that was approved last week via an express vote by Colombian legislators, has introduced a controversial change, allowing the government to take a client’s funds that have been inactive in bank accounts for more than a year. Article 81 of the mentioned budge law details the procedure followed to do this. It says

The balances of the checking or savings accounts that have been inactive for a period of more than one year and do not exceed the value equivalent to 322 UVR ($24. 40), will be transferred by the holding financial entities… in order to finance appropriations of the General Budget of the Nation,

It places the burden of compliance on financial institutions, which will need to adapt their systems in order to comply with the new regulation.

If the account holder discovers that a request was made for these funds they will be required to reimburse them with interest accrued. Analysts and representatives believe that the budget law was passed in a rush and not properly analyzed.

Cryptocurrency as an Alternative

While the article is not intended to affect all account holders, and it may have a limited impact on them, it opens up a discussion about the influence that central banks and the state have over fiat money use in the country. This could lead to the adoption of cryptocurrencies and other alternative finance instruments, such as savings and investing.

Colombia has the highest cash usage in Latin America. Cryptocurrency companies are tasked with trying to meet this demand. This is why there are already 50 cryptocurrency ATMs in the country to target these use cases, an unusually large number for a country that has not been known for its cryptocurrency appeal.

It remains to be seen whether these actions by the government and advances made by cryptocurrency companies in the nation can encourage a wave adoption.

What do you think about the Colombian budget law granting access to the government for seizing users’ funds? Comment below.

Image Credits: Shutterstock, Pixabay, Wiki Commons

Disclaimer: This article is for informational purposes only. This article is not intended to be a solicitation or offer to buy or sell any products or services. Bitcoin.com does not provide investment, tax, legal, or accounting advice. The author and the company are not responsible for any loss or damage resulting from or in connection to the content, goods, or services discussed in this article.

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Terra Collapse continues to plague Defi –Chain Bridges down 20% This Month

Terra Collapse Continues to Plague Defi — Value Locked in Cross-Chain Bridges Down 20% This Month

Following the aftermath of the Terra blockchain fiasco, decentralized finance (defi) continues to feel the impact of the project’s fallout. The total value locked in defi (TVL), has fallen 2. 61% in value, and cross-chain bridges have lost roughly 20.3% during the last 30 days.

Value Locked in Cross Chain Bridge Tech Slips 20% Lower Than Last Month

Over $100 billion in USD value was recently removed from the total value locked (TVL) in defi and TVL statistics continue to slide. Four days ago, the TVL in defi was approximately $112. 29 billion and today, the TVL is down 2. 61% to $109. 35 billion. The TVL in defi across twelve blockchains has fallen a lot over the past month. Cross-chain bridge TVLs also have fallen a lot.

30-day metrics from Dune Analytics indicates that the TVL across cross-chain bridges is down 20.3%. Today, there’s $16. 49 billion total value locked across 16 different cross-chain bridges. The number of unique daily ethereum bridge depositors has dropped in addition to the cross chain bridge TVL.

As of Thursday, May 19, 2022, Polygon has the largest TVL among the 16 cross-chain bridges monitored on Dune Analytics. Polygon currently has $5. 15 billion today. The $5. 15 billion on Polygon bridges represents 31. 23% of the entire $16. 49 billion cross-chain bridge TVL.

Polygon is followed by Avalanche ($3. 55B), Arbitrum ($3.2B), Fantom’s Anyswap ($1. 87B), Near Rainbow ($1. 86B), Optimism ($585M), Harmony ($229M), Moonriver ($154M), and Xdai ($122M).

The top crypto asset leveraged on cross-chain bridges today is the stablecoin usd coin (USDC). The stablecoin has $5.1 billion locked and is followed by WETH or ETH with $4. 57 billion locked. Tether (USDT) is the third-largest with $1.9 billion today and other notable cryptos leveraged on cross-chain bridges include WBTC, DAI, and MATIC.

The losses in defi are caused by two factors. One, the Terra blockchain fallout removed more than $40 billion from the defi ecosystem in a very short period of time. The remaining billions have left defi in various ways including using cross-chain bridges because defi users have been rattled by the Terra catastrophe.

Billionaire investor and crypto proponent Mike Novogratz published a blog post yesterday covering the recent Terra blockchain fiasco and he said “the collapse dented confidence in crypto and defi.”

What do you think about the dent in confidence to the defi ecosystem and the value locked in cross-chain bridge tech dropping lower than last month? Please comment below to let us know your thoughts on this topic.

Jamie Redman

Jamie Redman, a journalist and financial tech expert living in Florida, is the News Lead at Bitcoin.com News. Redman has been an active member of the cryptocurrency community since 2011. Redman is passionate about Bitcoin, open-source codes, and decentralized applications. Since September 2015, Redman has written more than 5,000 articles for Bitcoin.com News about the disruptive protocols emerging today.

Image Credits: Shutterstock, Pixabay, Wiki Commons

Disclaimer: This article is for informational purposes only. This article is not intended to be a solicitation or offer to buy or sell any products or services. Bitcoin.com does not provide investment, tax, legal, or accounting advice. The author and the company are not responsible for any loss or damage resulting from or in connection to the content, goods, or services discussed in this article.

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Lido Creates an Additional Curve Pool To Improve Liquidity Around Bonded Ethereum Peg

On Friday, the value locked in decentralized finance (defi) protocols dropped to a low of $110. 35 billion after there was more than $200 billion total value locked (TVL) eight days ago on May 5. One specific defi protocol called Lido, a liquid staking platform and the second largest defi application in terms of TVL size today, has lost significant value losing 49. 66% during the past week.

Curve’s stETH: ETH Peg Skews, Lido Adds New Pool With Liquidity Incentives

While being exposed to the Terra blockchain blunder, Lido’s bonded ethereum tokens have been under pressure due to an imbalance on Curve’s bonded ethereum (stETH) and ethereum pool. The liquid staking defi protocol Lido announced that it was deploying liquidity incentives to Curve Finance in order to improve the imbalance that has been taking place around the stETH: ETH peg.

“We are deploying an additional Curve Finance pool to improve the liquidity around the stETH: ETH peg,” Lido tweeted on May 12, 2022. “This new pool will feature an additional 1M LDO in incentives for the next week and is currently almost empty, suggesting high rewards to initial depositors.” Before the announcement, Curve’s stETH: ETH pool was showing a 2% discount amid the chaos surrounding the Terra blockchain.

Crypto journalist Colin ‘Wu’ Blockchain explained what was taking place on Thursday. “The ETH/stETH asset ratio in Curve’s largest TVL steth (ETH+stETH) pool is skewed,” the journalist tweeted. “ETH/stETH=36.48%/63. 52%, people are exchanging stETH back to ETH. Users who are using stETH for leveraged staking need to be aware of potential de-pegging risks.”

Team Plans to Migrate Curve and Balancer Pools, Lido’s TVL Shed $10. 26 Billion in a Week’s Time

In the same Twitter thread, Lido described the firm’s plan to mitigate the issue on Curve’s platform. “[The plan is to] migrate liquidity from the existing Curve and Balancer pools to a new one (recommended deposit ratio at current rate is 13 stETH for every 1 wETH) to maximise rewards,” Lido added on Thursday. “The new pool contains 1,000,000 LDO for the next week in rewards.”

Some people questioned the move to create a new pool on the largest defi protocol in terms of value locked. “Is it a good idea?” UST was attacked during liquidity migration,” one individual asked.

The liquid staking application Lido also had significant exposure to the Terra blockchain and 49. 66% in value has left the platform since last week according to defillama.com stats. Lido currently has $9. 13 billion in value but on May 5, it held $19. 39 billion. $10. 26 billion has been removed from Lido’s TVL since May 5 and $4,130 in LUNA remains.

What do you think about Lido adding liquidity incentives to Curve’s pool? Please comment below to let us know your thoughts on this topic.

Jamie Redman

Jamie Redman, the News Lead at Bitcoin.com News, is a Florida-based financial journalist. Redman has been an active member of the cryptocurrency community since 2011. Redman is passionate about Bitcoin, open-source codes, and decentralized applications. Since September 2015, Redman has written more than 5,000 articles for Bitcoin.com News about the disruptive protocols emerging today.

Image Credits: Shutterstock, Pixabay, Wiki Commons

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Terra Fiasco Unlocks Value in Defi –

Terra Fiasco Stirs Value Locked in Defi — Lido, Anchor Plummet to Lower Positions

Decentralized finance (defi) protocols are having a hard time weathering the storm, as the total value locked in defi today is down 39. 26% since April 3, from $230. 18 billion to the current $139. 81 billion. The sudden value drop stemming from Terra’s native assets, LUNA and UST, has pushed Lido down to the third-largest TVL position in defi, losing 19. 42% in 24 hours. Anchor Protocol has slipped down to the 12th largest TVL position, losing 66. 34% in the 24-hour timeframe.

Value Locked in Defi Sheds 10% During the Last 24 Hours — Terra Defi Apps Rock the Boat

  • According to defillama.com stats, the value locked in decentralized finance protocols has dropped 10. 58% in value during the past 24 hours, and 39. 26% over the past 38 days since April 3, 2022. The TVL sizes of all ten top defi protocols have fallen between 1. 61% and 19. 42% in the last day.
  • The defi protocol Lido dropped from the second-largest position to the third-largest on Wednesday after losing close to 20% in value. Lido supports a variety of blockchains. One of these is Terra network, which pays rewards in UST and allows LUNA bonding.
Terra Fiasco Stirs Value Locked in Defi — Lido, Anchor Plummet to Lower Positions
Total value locked in defi on May 11, 2022.
  • While the defi lending protocol Anchor was once the third-largest defi project just three days back, it is now holding the 12th position as it lost 66. 34% during the last 24 hours. Seven-day stats show Anchor’s TVL lost 85. 92% in value.
  • One of the only defi protocols that has seen its TVL rise over the last week is Tron’s Sunswap as it’s up 10. 69% during the past seven days. Dydx saw its TVL increase by 0. 80% this week and Arrakis Finance jumped 4. 48% higher this week.
  • Curve Finance, a stablecoin-centric automated marketplace maker and decentralized exchange (dex), still held the lead on Wednesday with 9. 94% of the entire $139. 81 billion. However, Curve is down 11. 51% during the last 24 hours, 27% down for the week, adn 31. 85% during the last month.
  • The TVL in cross-chain bridges has also dropped 20.3% this month and there’s currently a TVL of around $16. 49 billion spread across cross-chain bridge protocols. Today, Avalanche and Polygon are the most powerful cross-chain bridge TVLs.
  • Terra used to be the second largest defi space in Ethereum’s TVL. However, it is now the sixth. $3. 71 billion remains in Terra-based defi protocols, while the leader Ethereum has $86.51billion.

What do you think about the decentralized finance market action during the last few days and how Terra’s ecosystem is affecting the value locked? Please comment below to let us know your thoughts on this topic.

Jamie Redman

Jamie Redman, a journalist and financial tech expert living in Florida, is the News Lead at Bitcoin.com News. Redman has been an active member of the cryptocurrency community since 2011. Redman is passionate about Bitcoin, open-source codes, and decentralized applications. Since September 2015, Redman has written more than 5,000 articles for Bitcoin.com News about the disruptive protocols emerging today.

Image Credits: Shutterstock, Pixabay, Wiki Commons

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