Greetings subscribers. After a slight delay, the Techemynt times returns for its 3rd issue. It has been a milestone fortnight for the New Zealand Dollar Stablecoin. We are pleased to announce that NZDS’s second independent assurance report, confirming the reserves backing the stablecoin, has been published.
Other highlights of the fortnight include the launch of NZDS’s first borrowing and lending platform on Polygon.
The industry continues to deal with the consequences of a mass deleveraging that led to the collapse of multiple crypto lending, investment and brokerage firms. Despite the hit in confidence, the DeFi ecosystem has taken in the last few months, the position of Techemynt remains strong. While it was always likely that some users would swap out of NZDS positions in favour of fiat – The TVL of NZDS across Techemynt’s various integrations remains stable.
Highlights of the last fortnight so far include:
- EY Assurance report
- NZDS on Market.xyz
- DFX NZDS/USDC Pool – incident
- Volumes on DFX
EY Assurance report released
Techemynt is pleased to announce the release of the 2nd independent assurance report conducted by EY. The report confirms that as of 31st March 2022 the number of New Zealand Dollar Stablecoins (NZDS) in circulation, 6,771,215.86, did not exceed the NZ Dollars (fiat) held in a reserve account on behalf of NZDS token holders.
EY is one of the largest, most trusted Professional Service & accounting firms. They hold their clients to the highest standards of transparency and financial reporting. Working with them to produce the second assurance report for a 1-for-1 backed New Zealand Dollar stablecoin has been a precedent-setting multi-month journey.
NZDS launches for Market.xyz
Based on hints offered on social media, NZDS is set to become available on the multichain borrowing and lending platform market.xyz. NZDS will be accessible on the platform via the Jarvis Forex market on the Polygon side of market.xyz.
A borrowing market for NZDS on Polygon opens up new use cases for the asset. NZDS can now be borrowed cheaply and then deposited into a liquidity pool, if the yield rate is higher than the borrowing rate, for an arbitrage play.
DFX pool incident
Odd price fluctuations started appearing on the ChainLink oracle for NZDS/USDC during the weekend between July 1st and July 3rd. The occurrence was especially unusual as the given Forex markets were closed on weekends, and therefore prices at the time so the price should remain constant.
Noticing the irregular price fluctuations, a small group of users began realizing unreal profits by swapping between the two assets. These trades were made against the NZDS/USDC Liquidity Providers (LPs) on DFX.
DFX worked tirelessly this week to recover all the funds and we are pleased to report most of the negative effects of the incident have been reverted. The perpetrators have returned any profits they made trading against LP providers of the pool in return for a Bug Bounty from DFX. Following the unpausing of the pool, the LP token distribution in the pools returned to pre-incident levels.
Transaction volumes skyrocket
The transaction volumes skyrocket because of price oscillations.
During the weekend of the DFX incident, volume for the NZDS/USDC pair on the protocol surpassed US$90 million. On the 2nd of July, US$47million worth of swap volume was executed between the NZDS/USDC pair on DFX. On the 3rd of July, US$43 million worth of volume was executed on the platform; these values represent extreme outliers compared with the daily volume of any trading pair on DFX.
During the weekend fees earned by the NZDS/USDC pool exceeded US$45,000. During the weekend the NZDS/USDC accounted for more than 95% of the total trading volume on DFX.
Check the DFX analytics for the NZDS/USDC pool on Ethereum HERE.