India’s foreign exchange reserves jumped by $10.47 billion to $636.1 billion for the week ending on March 8, latest data by the Reserve Bank of India (RBI) showed on Friday. This is the biggest surge since the week ended July 14, 2023.
Previously, forex reserves expanded by $6.55 billion to $625.63 billion for the week ended on March 1, 2024.
According to the Weekly Statistical Supplement released by the RBI, Foreign currency assets (FCAs) increased by $8.12 billion to $562.35 billion. Expressed in dollar terms, the FCAs include the effect of appreciation or depreciation of non-US units like the euro, pound and yen held in the foreign exchange reserves.
Gold reserves expanded by $2.3 billion to $50.72 billion, whereas SDRs were up by $31 million to $18.21 billion.
Reserve position in the IMF increased by $19 million to $4.82 billion.
It can be noted that in October 2021, the country’s forex kitty had reached an all-time high of USD 645 billion. The reserves have been declining as the central bank deploys the kitty to defend the rupee amid pressures caused majorly by global developments.Typically, the RBI, from time to time, intervenes in the market through liquidity management, including through the selling of dollars, with a view to preventing a steep depreciation in the rupee.The RBI closely monitors the foreign exchange markets and intervenes only to maintain orderly market conditions by containing excessive volatility in the exchange rate, without reference to any pre-determined target level or band.
Recent U.S. Treasury yield movements were muted as investors grappled with the implications of higher-than-anticipated inflation data. The Producer Price Index (PPI) for February showed a 0.6% monthly increase, surpassing expectations. Core PPI, excluding food and energy, rose by 0.3%. Similarly, the Consumer Price Index (CPI) indicated a 0.4% month-over-month increase and a 3.2% yearly rise, also above forecasts.
Market Anticipation for Federal Reserve’s Decision
The upcoming Federal Reserve meeting is highly anticipated, with expectations of maintaining current interest rates. However, given recent inflation data, investors are eager for hints regarding potential interest rate cuts. Presently, there’s about a 60% chance of a rate cut in June, a slight decrease from earlier predictions.
Global Central Banks and Currency Movements
In Japan, significant wage increases have sparked speculations about the Bank of Japan moving away from negative interest rates. Similar anticipations surround other central banks, like the Bank of England and the Swiss National Bank. The yen and the euro have shown slight adjustments against the dollar, with the yen experiencing its most significant weekly drop since January and the euro increasing marginally.
Market Forecast
Considering the current economic indicators, including inflation rates and central bank policies, the DXY is likely to experience cautious optimism in the short term. While the Federal Reserve might exhibit more restraint in their inflation outlook, the overall trend suggests a slightly bullish forecast for the DXY. This outlook is tempered by the global central bank decisions and currency market reactions in the coming weeks.
In an exclusive interview with Cryptonews, Paul Frambot, CEO of research and development company Morpho Labs, told the host Matt Zahab how the four co-founders raised millions for Morpho and what changes to DeFi trends the protocol aims to bring.
He told listeners how he envisages the next phase of DeFi, and why the Morpho Labs team opted for a minimalist approach, contrary to the current DeFi trends.
Finally, he touched upon the recent disagreement with Aaave, and Gauntlet leaving Aave to join Morpho Labs, as well as his opinion that DAOs are not suited for managing the risk of protocols.
In this interview, Frambot discussed:
liquid staking and yield farming;
next evolution of DeFi Spending;
moving from app to infra – the future of DeFi;
DeFi 2.0 defining crypto’s coming bull market;
DeFi risk manager Gauntlet leaving Aave to join Morpho;
a shift from monolithic to layered protocols in 2024;
DAOs not being suited for managing the risk of protocols;
Morpho Blue;
lowering the barrier to entry;
raising $18 million for Morpho from a16z and Variant while still in school.
Paul Frambot gave a wide-ranging interview, which you can watch above – or you can read a part of it below.
Students Raising Millions
During his second and third years at the Institut Polytechnique de Paris, where he earned his Master’s degree in 2021, Frambot managed to raise millions over two rounds.
At the time, Frambot was studying consensus algorithms and distributed systems. He had an opportunity to meet “a bunch of researchers and interesting people” working in decentralized finance (DeFi) and blockchain.
This is how the first think tank around DeFi was created there. The members discussed what they could improve in DeFi, specifically lending.
Through the industry insiders, Frambot got in touch with investors and made his way into the VC world.
In the pre-seed round, the group raised $1 million for Morpho. They used the funds to hire a few people and do the first contract audits of the protocol’s first version.
A few months later, they raised more money, including from Andreessen Horowitz and Variant, with Frambot stressing that they have over 100 investors in Morpho.
That said, the four co-founders managed to raise $18 million for Morpho while still at university.
DeFi 2.0: Moving from App to Infra
Frambot discussed what DeFi 2.0 looks like and how it scales.
He argued that the next evolution of DeFi involves moving from app to infra.
The co-founder went on to explain that the earlier protocols, such as Maker, Uniswap, Aave, and Compound, were usable as is, and user-friendly in the sense that they were self-contained.
That was the first iteration of DeFi.
But protocols want to scale and enable more features.
One way to move forward is to enshrine all features in one monolithic protocol. But that may comprise efficiency and security because there are more lines of code to handle.
“You preserve the UX of it, the product aspect of it, but it does not scale.”
Morpho decided not to have a monolithic pool but to break the pool into two pieces instead: the risk management part and the protocol part.
This is a layered approach, with “more layers of abstraction, exactly the same way the internet has been built.”
Frambot said that the internet stack is built in layers. When we use the internet, we don’t experience the full complexity of it. We just see, for example, a browser. But behind the scenes, there are different layers of abstraction.
He argued that “it feels like this is exactly the way DeFi is going, which is having core communication protocols, core financial protocols that do not have any opinion about risk, about compliance. But on top, you rebuild the risk and compliance profile that you want.”
This allows the protocol to be at the bottom, followed by the risk management layer, and then on top, the user application layer.
In less than 2 months since launch, @MorphoLabs Blue protocol has reached over $200m in TVL, with continued growth by introducing a new risk layer for suppliers (aka MetaMorpho vaults).
Here we’ll explain how you can fully utilize Blue with advanced DFS features. 👇 pic.twitter.com/9yzwFFeRjq
And we go back to DeFi: what the industry is looking to do is build infrastructure for wealth – on top of which the entire financial flow of humanity will be handled.
With the current security practices, this is unimaginable.
Therefore, the advantage of the described, scalable DeFi 2.0 is that it enables protocols to be immutable and simple, and it segregates complexity in layers, avoiding the dangers of a monolithic pool.
Meanwhile, DeFi is growing. That used to be an issue, and it has been difficult breaking out of the existing circle.
But “I think the approach I’m describing is such a neat way of progressively forcing the boundaries of that space,” Frambot said.
In a few weeks of existence, Morpho Blue markets already have insane traction.
Interest generated are growing exponentially and so is the profitability of the vault curators.
Our main objective is that all our builders have one of the most profitable business in the industry! pic.twitter.com/qs9sDFCRXK
Going Against Latest DeFi Trends with a Minimalistic Approach
Frambot has shared on his social media that Morpho does one job: simple and efficient lending and borrowing. That’s all. There are no stablecoins, DEXes, equity, advisory, etc. In other words escaping from the wave of DeFi trends and services flooding the market.
This is a rare approach in a world where projects aim to venture into various different spheres.
Frambot explained that they want to be “laser-focused, do one thing, and do it extremely well.” They don’t want to spread.
“And this, in my opinion, is crucial in DeFi because there are a lot of opportunities.”
Moreover, unlike most other projects, Morpho’s founders are contractually forbidden to invest in or advise any other project. “We have to be focused on Morpho,” said Frambot.
This approach, he argued, has given the co-founders a unique approach to DeFi landing in general.
Morpho’s first version, which now has more than $2 billion in deposits, “was never seen before in the space and not even close to looking like another protocol,” he said.
Furthermore, the new version, Morpho Blue, is also “extremely different” from what people are used to seeing across DeFi trends and updates.
𝟮/ 𝗪𝗵𝘆
Morpho is the 3rd largest lending platform on Ethereum, with over $1B in deposits.
Yet, current platforms are not scalable enough to match the trillions processed by TradFi lending markets.
Morpho must evolve to become autonomous and elevate decentralized lending.
The protocol enables a very wide variety of use cases, based on top of a trustless and efficient base protocol of just 600 lines of code, instead of thousands.
He remarked,
“Taking such a minimalistic approach goes against DeFi 1.0 trends, which is building and then training as many features [as possible] to be able to do more and more.”
Per Frambot, Morpho’s strategy is “definitely a winning” one long-term.
DAOs May Not Be the Best Option
Aside from his stance on DeFi trends, Frambot has argued that decentralized autonomous organizations (DAOs) are not suited for managing the risk of protocols, given that effective risk management demands both expertise and the ability to make super-fast, efficient decisions.
During the interview, he explained that he is not against DAO-based risk managers but that he doesn’t believe that it’s the best thing to do. In the end, it will be up to the market to decide, though.
Doing risk management is highly complex. It entails multi-dimensional problems, statistics, math, data, etc.
For example, in the case of Aave, there are more than 700 different risk parameters: liquidation incentives, collateral factors, oracles, supply caps, borrow caps for each asset, and hundreds more.
“Essentially, we’re asking token holders to vote on a daily basis to improve, change, and adjust those risk parameters. […] I don’t think token holders, to be frank, could be anybody. I don’t think they’re the right person to do this job.”
And while DAOs and decentralization in general are excellent concepts, we must make sure “we do things that truly make sense to provide the best possible use cases, experience, and safety for users.”
Meanwhile, in Morpho Blue, the risk management is completely externalized from the protocol.
BlockAnalitica, Bprotocol, Steakhouse Financial, re7, … and now Gauntlet.
Don’t you see what is happening? DeFi lending has been unbundled. Risk management has been completely externalized from the core protocol. https://t.co/R49cjkE5uU
Everything built on top of Morpho Blue can have its own specific risk management: some can be token-based risk, and others can be centralized, or controlled by users.
“And we’ll see what formula is the best [for] risk management.”
In the end, it could be one approach or a combination of several that will emerge as a winner.
__________
About Paul Frambot
Paul Frambot is the Co-Founder and CEO of Morpho Labs, a research and development company responsible for building and growing the Morpho protocol.
Frambot co-founded Morpho Labs whilst studying towards his now-completed Master’s in Parallel and Distributed Systems from the Institut Polytechnique de Paris in 2021.
During his studies, he raised $18 million from top investors – including Andreessen Horowitz (a16z) and Variant – for Morpho, which has since grown into a multi-billion-dollar lending protocol.
The latest version, Morpho Blue, is an independent, simple protocol that serves as a secure, efficient, and flexible base layer for users and applications.
The survey indicates a continued shrinkage in unfilled orders, as the unfilled orders index steadies at -10.9. Additionally, inventories are diminishing, with the inventories index marginally changing to -12.9. Delivery times appear stable, with the delivery times index at -1.0.
Employment and Working Hours Decrease
Labor market indicators are showing signs of stress. Both employment levels and working hours are on a downtrend, as reflected in the seven-point decrease in the employment index to -7.1 and a six-point fall in the average workweek index to -10.4.
Price Pressures and Future Outlook
While input price increases have moderated slightly, selling price increases have remained consistent. Firms maintain a cautious optimism for the future, with the future business conditions index stable at 21.6. However, this subdued optimism aligns with modest capital spending plans.
Short-Term Market Forecast
Given the current conditions, the short-term outlook for the manufacturing sector in New York State leans bearish. The significant declines in demand and shipments, coupled with weakening labor market indicators and continued inventory reductions, paint a challenging picture for the sector in the near future. The steady selling price pressures add another layer of complexity, suggesting potential margin squeezes for manufacturers.
Disclaimer: The opinions expressed by our writers are their own and do not represent the views of U.Today. The financial and market information provided on U.Today is intended for informational purposes only. U.Today is not liable for any financial losses incurred while trading cryptocurrencies. Conduct your own research by contacting financial experts before making any investment decisions. We believe that all content is accurate as of the date of publication, but certain offers mentioned may no longer be available.
In an X/Twitter post published on Wednesday, tech tycoon and meme lover Elon Musk placed an emphasis on memes, which he does once in a while, as if reaffirming his support for this phenomenon. His love for memes began many years ago; however, only in 2020 did he tweet that “who controls memes, controls the universe.” Musk is a fan of the original meme coin, DOGE.
PEPE soars on Elon Musk’s tweet
Since it was Pepe the Frog depicted on the picture he published, the Pepe meme coin’s price immediately triggered a staggering 23.46% increase. It was followed by a major decline, therefore, the overall PEPE rise within the last 24 hours constitutes 13.73%.
Musk’s tweet today was reposted by the official account of Milady meme coin (LADYS). In mid-May 2023, Musk posted a meme with its mascot, and this propelled LADYS’ mind-blowing surge by 12,056%.
On the same day, an anonymous crypto whale transferred a massive PEPE chunk of 2,248,769,006,203 coins from Binance to Crypto.com. This amount of PEPE was evaluated at 20,219,806 at the time of the transaction.
A day before that, another mysterious whale deposited 500 billion PEPE worth $4.3 million to the Binance exchange with a potential profit of $3.36 million (+30.9%). This trader had started his PEPE trade only 10 days before that, according to the @spotonchain analytics account.
Elon Musk’s tweet equalizes USD and scam coins
On Wednesday, centibillionare and meme lover Elon Musk also posted a tweet, which shows that he considers the U.S. dollar to be somewhat unsustainable. He published a screenshot of another tweet (posted by someone else), which describes scam cryptocurrencies.
A scam coin that is described in the screenshot has some “notable” characteristics typical of scam cryptos, according to the author of the tweet – 27 trillion coins circulating on the market, unlimited supply cap, only one node, 25% of the whole supply produced just within the past month and 30% of the supply held by only 1% of its holders.
The author of the tweet noted that this is very similar to the U.S. dollar, with the Federal Reserve’s constant printing. By reposting this, Elon Musk seems to be agreeing with the tweet’s initial author.
While the Bitcoin network is poised to see significant growth in its Layer-2 (L2) ecosystem, “finding an optimal mechanism to maintain finality” on the network remains an inherent limitation that prevents this from happening, Mithil Thakore, the co-founder and CEO of Velar, has said. Thakore also identified the yet-to-be-optimized “bridging of native Layer-1 (L1) assets […]
The Fed left interest rates unchanged as
expected at the last meeting and dropped the tightening bias in the statement.
The US CPI and
the US PPI beat
expectations for the second consecutive month.
The NFP report beat
expectations on the headline number, but the unemployment rate and the average
hourly earnings missed notably. Moreover, the US Jobless Claims
yesterday beat expectations across the board with a big positive revision to
Continuing Claims.
The latest US ISM
Manufacturing PMI missed expectations by a big margin
remaining in contraction with the US ISM Services
PMI
following suit but holding on in expansion.
The US Retail Sales missed
expectations across the board although the data improved from the prior month.
The latest Canadian CPI missed expectations across the
board with the underlying inflation measures falling.
On the labour market side, the latest report beat
expectations but we saw a fall in wage growth which is something that the BoC
is watching closely.
The Canadian PMIs improved in
January although they remain both in contractionary territory.
The market expects the first rate
cut in June.
USDCAD Technical Analysis –
Daily Timeframe
USDCAD Daily
On the daily chart, we can see that USDCAD pulled
back into a key resistance level at
1.3540 following the strong US data release. This is where we can expect the
sellers to step in with a defined risk above the level to position for a drop
into the 1.3360 level. The buyers, on the other hand, will want to see the
price breaking higher to invalidate the bearish setup and position for a rally
into the 1.3620 level.
USDCAD Technical Analysis –
4 hour Timeframe
USDCAD 4 hour
On the 4 hour chart, we can see that we can also
find the 61.8% Fibonacci retracement level
around the resistance level for confluence. We can
also notice that the price is a bit overstretched as depicted by the distance
from the blue 8 moving average. In such
instances, we can generally see a pullback into the moving average or some
consolidation before the next move.
USDCAD Technical Analysis –
1 hour Timeframe
USDCAD 1 hour
On the 1 hour chart, we can see more
closely the recent price action and we can see that around the 4-hour 8 moving
average we have a support zone on this timeframe with the 38.2% Fibonacci
retracement level for confluence. If the price falls from the resistance, we
can expect the buyers to step in around the support with a defined risk below
it to position for a break above the 1.3540 resistance with a better risk to
reward setup. The sellers, on the other hand, will want to see the price
breaking lower to increase the bearish bets into new lows.
Upcoming Events
Today we conclude the week with the US Industrial
Production data and the University of Michigan Consumer Sentiment survey.
Investing.com – The U.S. dollar edged lower in European trade Friday, but remained on course for a positive week, after hotter-than-expected U.S. inflation data ramped up fears of hawkish signals from the Federal Reserve next week.
At 06:15 ET (10:15 GMT), the Dollar Index, which tracks the greenback against a basket of six other currencies, traded 0.1% lower at 102.950, on track for a 0.3% rise for the week, its first weekly gain in four.
Dollar gains on hot inflation data
The U.S. rose 0.6% in February, double the 0.3% expected, adding further signs that inflation remains an issue for the Federal Reserve after data on Tuesday showed that consumer prices increased strongly for a second straight month in February.
The is due to meet next week, and is widely expected to keep interest rates unchanged.
However, the hotter-than-expected inflation data means that investors will be closely watching for the Fed’s interest rate forecasts, commonly known as its dot plot, and comments from Fed Chair Jerome Powell for clues of future monetary policies.
Markets now pricing in 60% chance of the Fed cutting rates in June, compared to 74% a week earlier, according to the CME FedWatch tool.
“The bulk of hard U.S. data for February has now been released, and the needle has moved more to the hawkish side of the spectrum,” analysts at ING said, in a note.
“The Fed can still sound relatively optimistic about disinflation next week, but policymakers will inevitably have to put greater emphasis on the next couple of months of data releases.”
Euro gains after French CPI release
In Europe, edged 0.2% higher to 1.0898, after rose more than expected in February, climbing 3.0% on an annual basis, a month-on-month increase of 0.8%.
The kept rates at record highs of 4% last week, but could start cutting interest rates in the coming months given the slow growth in the region.
A tangible recovery in Germany, Europe’s biggest economy, is not yet in sight despite positive trends in industrial production, construction and foreign trade at the start of 2024, Germany’s economy ministry said on Friday in its monthly report.
“EUR/USD is trading at more sustainable levels now, and we think it can remain under modest pressure into the FOMC meeting, in line with our dollar view,” ING added. “There are a few key moving average supports between 1.0840 and 1.0860: if broken, we could see the pair test 1.0800 in the coming days.”
ECB chief Christine Lagarde earlier this month hinted strongly that a long-awaited rate cut would be more likely to happen at the central bank’s meeting in early June, rather than in April.
traded 0.1% higher at 1.2753, with sterling near its lowest level this week, ahead of the Bank of England’s policy meeting next week.
The is widely expected to keep interest rates unchanged next week, but is likely to start cutting rates later this year to support the beleaguered economy.
Citigroup now expects the first cut in June, compared to a prior expectation of cuts beginning in August.
Yen retreats ahead of BOJ meeting
In Asia, traded 0.3% higher to 148.72, with the yen set to lose over 1% this week amid growing speculation over an upcoming meeting next week.
The central bank is widely expected to end its negative interest rate and yield curve control policies in the coming months, with analysts split over a decision being made in March or April.
The BOJ could potentially hike interest rates for the first time in nearly 17 years next week, especially as Japanese inflation remained sticky in February.
edged 0.1% higher to 7.1960, as the People’s Bank of China left its medium-term lending rates unchanged, heralding no changes to its loan prime rate next week. But weak house prices data pointed to continued pressure on the Chinese economy.
Decentralised Finance (DeFi) has emerged as a transformative force within the financial landscape. In 2024, the total value locked (TVL) in DeFi protocols has surpassed $300 billion, marking a significant leap from the previous year. This exponential growth signifies the increasing investor interest in DeFi’s core principles: decentralisation, transparency, and accessibility.
However, getting the most out of the DeFi ecosystem can be challenging, particularly for those seeking high-growth opportunities. This article will explore three projects emerging from their early stages of development: Scorpion Casino (SCORP), Pepe Fork (PORK), and Bitbot (BITBOT).
We will analyse their functionalities, potential for 100x gains, and inherent risks associated with these early-stage ventures. By examining these projects, we aim to equip investors with the knowledge needed to make informed decisions within the dynamic world of DeFi.
Scorpion Casino Is a Gambler’s Paradise
Scorpion Casino (SCORP) stands out in the DeFi presale arena, attracting investors seeking a 100x gain opportunity. Its robust GameFi ecosystem boasts over 30,000 betting options, encompassing casino titles, live dealer tables, and virtual sports. This comprehensive platform caters to diverse gaming preferences and prioritises security through external audits.
Beyond entertainment, Scorpion Casino paves the way for innovative earning mechanisms. Automatic staking enables holders to receive daily rewards in USDT and SCORP, generating a steady stream of passive income. The platform’s commitment is further underscored by a $250,000 giveaway and an impending exchange listing on March 25th, which have fueled investor interest and propelled the presale towards its final stages.
With a total supply of 480 million tokens selling out rapidly, the window to join Scorpion Casino is narrowing. The project’s integration of casino-style rewards and comprehensive betting options sets a new standard in the DeFi gaming space.
Can Pepe Fork Sustain This Pace?
Pepe Fork (PORK), a recent entrant in the cryptocurrency market, has captured the attention of meme coin enthusiasts. Launched as an alternative to PEPE Coin, PORK witnessed a phenomenal start, generating a staggering $41 million swap volume within its first few hours and boosting its market value to $290 million. Over the past week, the token’s price skyrocketed by over 90%, reflecting strong investor interest.
However, Pepe Fork’s long-term viability hinges on factors beyond its initial hype. A listing on the prominent Binance exchange could significantly enhance its credibility and facilitate broader market acceptance. Yet, securing such a listing remains a critical hurdle that could dramatically impact PORK’s future trajectory. While Pepe Fork has experienced an impressive initial run, its long-term success hinges on building utility beyond its meme coin status.
Bitbot Is One To Watch
Bitbot caters to a different segment of the DeFi market by offering a non-custodial Telegram trading bot. It prioritises user security through KnightSafe, a decentralised self-custody solution, ensuring users retain control over their crypto assets throughout the trading process. This feature starkly contrasts other trading bots that require full-time access to user funds.
Bitbot further empowers investors with features like the AI-powered Alpha List, which automatically scans for presale opportunities and undervalued gems. Additionally, the Copy Trading feature allows users to replicate the strategies of successful traders. Token holders benefit from a 50% revenue share and a referral program offering a lifetime kickback on referred trades.
With its established platform, diverse game selection, and innovative passive income features, Scorpion Casino presents a compelling proposition for those seeking a balance between utility and potential gains within the booming GameFi sector. While experiencing an initial surge in popularity, Pepe Fork faces the challenge of establishing long-term value beyond its meme coin status. Bitbot, catering to active traders, offers unique features but operates within a highly competitive landscape.
Interested in learning more about the next big crypto sensation? Check out the links below.
In a corrective scenario, the $65.0-65.5K and $60.0-60.5K areas are of particular interest, as they contain important round levels (significant for retail) and the 76.4% and 61.8% Fibonacci retracement lines.
As a result of another recalculation, the difficulty of mining the first cryptocurrency increased by 5.79%. The indicator updated the historical maximum at 83.95T. The average hash rate for the period since the previous change in value was 600.72 EH/s.
Crypto News
The addition of spot bitcoin ETFs to the list of instruments by major platforms and the approval of options based on them will be “powerful catalysts” for demand by the end of the year, notes Bloomberg. The ETFs are not yet available to clients of registered investment advisor platforms with $7-10 trillion in assets, but that could happen within the next few months.
Fees in EIP-4844-implemented layer-2 networks saw a several-fold decline after the Dencun upgrade in the Ethereum mainnet. Gas fees in the Base protocol dropped from $0.7 to $0.0024. In Optimism, transaction fees dropped from $0.66 to $0.0055, and in zkSync – from $0.32 to $0.097.
QCP Capital predicts that Ethereum will fall after the Dencun upgrade. Appetite for ETH-focused instruments in the futures and options markets has declined, suggesting a deterioration in the altcoin’s medium-term prospects.
