Centralization is usually thought of mandatory to realize comfort within the crypto house. Nonetheless, following the failure of centralized crypto lender Voyager, folks have begun to acknowledge the significance of self-custody. Ethos 2.0 desires to capitalize on that momentum and goals to offer a decentralized method to the providers that made Voyager so well-known.
Voyager Chapter After Slicing Corners
The preliminary method by the Voyager group was to introduce crypto lending by way of a decentralized method. They labored and merged with the unique Ethos group to emphasise the decentralized method. Sadly, the Voyager administration in the end determined to take the simple route and reduce just a few corners to offer centralized lending whereas nonetheless tapping the booming crypto business.
Though that method isn’t irregular in cryptocurrency circles, it additionally creates a domino impact when issues go improper. For instance, the corners reduce by Voyager ensured the corporate finally acquired caught up within the collapse of Three Arrows Capital.
That hedge fund took loans from Voyager and different establishments to gamble on crypto property. Considered one of their gambles, TerraUSD (UST), imploded in the summertime of 2022. Because of this, 3AC couldn’t pay again the $670 million it borrowed from Voyager.
Making issues worse is the crypto value drop the collapse of UST triggered. All markets misplaced over 60% of their worth and, mixed with 3AC defaulting on practically $700 million, pressured Voyager to file for chapter.
Whereas it’s powerful to say a decentralized method would have prevented this domino impact, issues seemingly would have performed out otherwise. Extra importantly, Voyager’s chapter affected lots of of customers who didn’t have a chance to take custody of their funds.
Moreover, the defunct lender obtained a cease-and-desist from the FDIC in late July 2022. Till then, Voyager claimed buyer funds have been FDIC insured, which was incorrect. The financial institution the place funds have been saved is, however neither the lender nor its shoppers have direct safety, because the financial institution didn’t collapse. General, the entire ordeal induced numerous unrest within the crypto business, however new options loom on the horizon.
Righting the Voyager Wrongs with Self-Custody
Solely the consumer ought to be capable to take custody of crypto funds. No centralized entity ought to management consumer funds, regardless of the diploma of comfort they provide. Self-custody remains to be tough because it comes with a really steep studying curve. Just some folks wish to take duty if one thing goes improper. Ethos 2.0, a mission created by the preliminary Ethos group members and several other former Voyager members, goals to enhance issues.
Their method focuses on serving to customers mix comfort and self-custody. Customers nonetheless must study to regulate their funds and retailer them securely. Nonetheless, there’s a backup answer to assist customers “unlose keys” and assist them get well these keys if one thing goes awry. The usage of “Magic Keys” is feasible by way of enterprise-grade key encryption, sharding, and backup methods.
If customers lose their keys, they’ll add the encrypted model by way of Ethos. Doing so permits them to confirm their identification by answering safety questions and finishing 2FA.
Afterward, customers achieve entry to the third key shard to revive their keys. Nonetheless, Ethos doesn’t entry the keys or consumer funds at any time. It’s a viable “security internet” with out compromising self-custody in favor of comfort. An organization spokesperson had additionally revealed that the corporate makes use of MPC, Shamir Secret Sharing and different state-of-the-art applied sciences to assist their customers keep within the clear.
Ethos customers will maintain funds secure of their self-custody vault, additionally used to accrue staking returns for these partaking in proof-of-stake alternatives. Customers may also entry stay buying and selling with zero counterparty threat and discover finest value execution throughout dozens of decentralized exchanges. As well as, each commerce – and studying extra about DeFi – awards customers with reward tokens. Holding extra tokens reduces ecosystem charges.
Restoration Tokens for Voyager Customers
As lots of of individuals fell sufferer to the Voyager chapter, Ethos goals to increase restoration tokens to that group. Extra particularly, 1 billion ETHOS tokens are put aside for these victims with a VGX restoration program now energetic and accepting submissions from collectors and VGX holders. The choice by Ethos is sensible, because the group goals to construct Voyager “the best means” by way of decentralization and self-custody.
Furthermore, the group’s method strikes a chord with anybody bored with counting on centralized intermediaries. Funds ought to by no means be saved on centralized platforms until they’re traded instantly.
Self-custody is the one viable answer for every part else. With Ethos 2.0, that method turns into extra accessible to mainstream and novice customers, which can spark broader adoption of cryptocurrencies.
Centralization is usually thought of mandatory to realize comfort within the crypto house. Nonetheless, following the failure of centralized crypto lender Voyager, folks have begun to acknowledge the significance of self-custody. Ethos 2.0 desires to capitalize on that momentum and goals to offer a decentralized method to the providers that made Voyager so well-known.
Voyager Chapter After Slicing Corners
The preliminary method by the Voyager group was to introduce crypto lending by way of a decentralized method. They labored and merged with the unique Ethos group to emphasise the decentralized method. Sadly, the Voyager administration in the end determined to take the simple route and reduce just a few corners to offer centralized lending whereas nonetheless tapping the booming crypto business.
Though that method isn’t irregular in cryptocurrency circles, it additionally creates a domino impact when issues go improper. For instance, the corners reduce by Voyager ensured the corporate finally acquired caught up within the collapse of Three Arrows Capital.
That hedge fund took loans from Voyager and different establishments to gamble on crypto property. Considered one of their gambles, TerraUSD (UST), imploded in the summertime of 2022. Because of this, 3AC couldn’t pay again the $670 million it borrowed from Voyager.
Making issues worse is the crypto value drop the collapse of UST triggered. All markets misplaced over 60% of their worth and, mixed with 3AC defaulting on practically $700 million, pressured Voyager to file for chapter.
Whereas it’s powerful to say a decentralized method would have prevented this domino impact, issues seemingly would have performed out otherwise. Extra importantly, Voyager’s chapter affected lots of of customers who didn’t have a chance to take custody of their funds.
Moreover, the defunct lender obtained a cease-and-desist from the FDIC in late July 2022. Till then, Voyager claimed buyer funds have been FDIC insured, which was incorrect. The financial institution the place funds have been saved is, however neither the lender nor its shoppers have direct safety, because the financial institution didn’t collapse. General, the entire ordeal induced numerous unrest within the crypto business, however new options loom on the horizon.
Righting the Voyager Wrongs with Self-Custody
Solely the consumer ought to be capable to take custody of crypto funds. No centralized entity ought to management consumer funds, regardless of the diploma of comfort they provide. Self-custody remains to be tough because it comes with a really steep studying curve. Just some folks wish to take duty if one thing goes improper. Ethos 2.0, a mission created by the preliminary Ethos group members and several other former Voyager members, goals to enhance issues.
Their method focuses on serving to customers mix comfort and self-custody. Customers nonetheless must study to regulate their funds and retailer them securely. Nonetheless, there’s a backup answer to assist customers “unlose keys” and assist them get well these keys if one thing goes awry. The usage of “Magic Keys” is feasible by way of enterprise-grade key encryption, sharding, and backup methods.
If customers lose their keys, they’ll add the encrypted model by way of Ethos. Doing so permits them to confirm their identification by answering safety questions and finishing 2FA.
Afterward, customers achieve entry to the third key shard to revive their keys. Nonetheless, Ethos doesn’t entry the keys or consumer funds at any time. It’s a viable “security internet” with out compromising self-custody in favor of comfort. An organization spokesperson had additionally revealed that the corporate makes use of MPC, Shamir Secret Sharing and different state-of-the-art applied sciences to assist their customers keep within the clear.
Ethos customers will maintain funds secure of their self-custody vault, additionally used to accrue staking returns for these partaking in proof-of-stake alternatives. Customers may also entry stay buying and selling with zero counterparty threat and discover finest value execution throughout dozens of decentralized exchanges. As well as, each commerce – and studying extra about DeFi – awards customers with reward tokens. Holding extra tokens reduces ecosystem charges.
Restoration Tokens for Voyager Customers
As lots of of individuals fell sufferer to the Voyager chapter, Ethos goals to increase restoration tokens to that group. Extra particularly, 1 billion ETHOS tokens are put aside for these victims with a VGX restoration program now energetic and accepting submissions from collectors and VGX holders. The choice by Ethos is sensible, because the group goals to construct Voyager “the best means” by way of decentralization and self-custody.
Furthermore, the group’s method strikes a chord with anybody bored with counting on centralized intermediaries. Funds ought to by no means be saved on centralized platforms until they’re traded instantly.
Self-custody is the one viable answer for every part else. With Ethos 2.0, that method turns into extra accessible to mainstream and novice customers, which can spark broader adoption of cryptocurrencies.
