In addition to the transaction, HIVE and DeFi Technologies have entered into a partnership around the Decentralized Finance (DeFi) ecosystem with specific applications around Ethereum and Miner Extractable Value (MEV). The new partnership, which follows three-month discussions, allows HIVE a strategic stake in DeFi Technologies and a broader partnership around the DeFi ecosystem with a particular focus on the Ethereum-based MEV space and related developments.
MEV refers to the amount of profit miners can derive from reordering and censoring transactions on the blockchain. It has become a major topic over the past year as the DeFi space has grown $ 3 billion to $ 71 billion in market capitalization. Of $ 347.3 million 88% of the extracted MEV come from DeFi activities (see graphic below). As can be seen from the data from Coin Metrics, currently more than half of all ETH miners’ income comes from transaction fees. By working together to take on these activities, individuals get a more capital efficient market to play in while providing miners with higher returns for being more altruistic.
The DeFi sector has increased dramatically in value since 2020 and has reached a tipping point as institutional investors and large corporations show increased interest in the decentralized financial sector. In the third quarter of 2020, the U.S. Office of the Currency Auditor (OCC) published guidance clarifying that national banks can provide services to stable coin issuers in the U.S. This and other interests of venture capital and financial institutions in the decentralized financial sector are an important step in the direction of widespread adoption of DeFi.
This new strategic partnership offers a significant opportunity to use MEV applications to create more value per mining infrastructure deployed for HIVE. For DeFi Technologies, the partnership provides contact with one of Ethereum’s greatest miners, the backbone on which DeFi applications are based, and thus serves as a key component in supporting the sector.
About DeFi Technologies:
DeFi Technologies Inc. is a Canadian company that does business with the goal of increasing shareholder value by building and managing assets in the decentralized financial sector.
About HIVE Blockchain Technologies Ltd.
HIVE Blockchain Technologies Ltd. is a growth-oriented TSX.V listed company that bridges the blockchain sector to traditional capital markets. HIVE owns state-of-the-art data centers with green energy in Canada, Sweden, and Iceland that continuously produce newly minted digital currencies such as Bitcoin and Ethereum in the cloud. Our deployments give shareholders access to digital currency mining operating margins as well as a portfolio of crypto coins.
Cautionary Note Regarding Forward-Looking Information:
This press release contains “forward-looking information” within the meaning of applicable Canadian securities legislation. Forward-looking information includes, but is not limited to, statements relating to the transaction, the strategic partnership with HIVE, and the potential for synergies and growth resulting from the partnership. DeFi Technologies’ pursuit of business opportunity; and the merits or potential returns on such opportunities. In general, forward-looking information can be identified by using forward-looking terminology such as “plans,” “expected,” “not expected,” “expected,” “budget,” “planned,” “estimates”. “Predicts,” “intends,” “anticipates,” or “does not anticipate,” or “believes,” or variations of such words and phrases, or indicates that certain actions, events, or outcomes “may,” “might,” “would,” ” could be “or is taken”, “occurs” or “reached”. Forward-looking information is subject to known and unknown risks, uncertainties and other factors that could cause actual results, level of activity, performance, or performance to differ materially from those expressed or implied by such forward-looking information. While the company has attempted to identify important factors that could cause actual results to differ materially from those contained in the forward-looking information, there may be other factors that could cause results not to be as expected, estimated or intended . There can be no assurance that this information will prove to be accurate, as actual results and future events could differ materially from those anticipated in these statements. Accordingly, readers are cautioned not to place undue reliance on forward-looking information. The company undertakes no obligation to update any forward-looking information except in accordance with applicable securities laws.
THE NEO STOCK EXCHANGE ASSUMES NO RESPONSIBILITY FOR THE ADEQUACY OR ACCURACY OF THIS PUBLICATION.
SOURCE DeFi Technologies, Inc.