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【Dapp Pocket】How digital USD stablecoins help Venezuela fight against the epidemic

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【Dapp Pocket】How digital USD stablecoins help Venezuela fight against the epidemic

Dear DeFi enthusiasts,

Good news this week as Ethereum 2.0's contract deposits have reached the target, and the price of Ether has returned to its peak since 2018, surpassing $600 for the first time! While everyone is focused on profits, the DeFi Weekly Report invites you to take a look at how Circle is using the stablecoin USDC to help combat the pandemic in Venezuela.

This week's headlines also include: Uniswap can thrive without relying on liquidity mining? Yield farmers losing out, but still competitive with SushiSwap; Cappuu actively upgrades its smart investment strategy by adopting Yearn's 3Pool Vault.

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This week's expert insights feature DeFi influencer DeFi Dad introducing the operation of a DeFi options platform; Aave's Marc Zeller stressing the importance of users controlling their risks; and Bankless's Ryan Adams sharing how to benefit from Ethereum's economic growth!

How Does Digital Dollar (Stablecoin) Help Venezuela Fight Against the Pandemic?!

I am a doctor in Venezuela. Here, the socioeconomic status of healthcare workers may be different from what you imagine. In recent years, the minimum wage in our country is only 1-2 US dollars per month, and rural doctors and home caregivers earn an average of only 2.5 US dollars. In 2020, during the COVID-19 outbreak, while public transportation was suspended, we had to find ways to commute between our homes and workplaces, risking our health on the front lines of the pandemic. Many people didn't even have time or budget to have a proper meal before going to work. Colleagues serving in hospitals in Caracas, the capital of Venezuela, are relatively luckier economically, with monthly incomes ranging from 4 to 18 US dollars.

Since the pandemic outbreak, several of my colleagues have sacrificed their lives due to infection. To my knowledge, more than 126 healthcare workers in our country have died from contracting COVID-19 at work. Absurdly, many of the government's funds are even allocated for political representatives visiting medical facilities. The pandemic has exacerbated our country's economic crisis, and the main cause of the economic crisis can be traced back to politics. In the 2018 elections, the leftist Maduro regime announced the replacement of the "National Assembly" with a "Constituent Assembly." However, in reality, this regime is a dictatorial, corrupt ruler. The election had a voter turnout of less than 15%, including myself and other citizens who chose to abstain from voting in protest, but it seemed to be of no avail.

Virtual Currency is a Necessity

Bitcoin is a more convenient currency for us to exchange for US dollars. Our national currency, the "bolivar," not only suffers from severe inflation but also faces strict banking controls, making it impossible for us to seek the most reasonable channels to exchange for US dollars. Bitcoin's feature of not requiring banks allows me to easily exchange dollars through local cryptocurrency exchanges. However, the drawback of Bitcoin is its high price volatility, making the US dollar stablecoin more suitable for us.

AirTM and Circle's Solutions

Unlike other economically challenged countries, Venezuela has always received limited international aid. It's not due to international organizations' neglect but because of the corrupt Maduro regime, which often diverts international aid funds for its own use. Many times, hundreds of thousands or even millions of aid funds end up in the pockets of politicians. More seriously, during the pandemic, many people are even afraid to accept too much cash assistance as they fear it may help spread the virus. However, there seems to be a turning point this year: AirTM's stablecoin relief program.

AirTM is one of the largest cryptocurrency payment companies in our country, with over 5 million users among our 30 million population, and this number is still rising. The vast network effect allows people domestically to use their P2P system for daily payments. More importantly, as it is a crypto company from Mexico, we do not need to go through Venezuelan banks to open accounts or make transfers, making all transactions more reassuring.

Opposition political leader Guaido is one of the key players in this rescue operation. According to his tweet, over 39,000 medical personnel have received $100 worth of AirUSD, AirTM's stablecoin. The funding source for this aid is as follows:

  1. The US Treasury Department has transferred a portion of the funds seized from the Maduro regime to Guaido's accounts in the US

  2. The Guaido government will convert the funds in the account into the equivalent USDC and send them to AirTM

  3. AirTM will send the funds in stablecoin AirUSD to the wallets of healthcare colleagues

  4. Healthcare colleagues can choose to withdraw the funds from the bank or use AirUSD for transfers

Unresolved Issues

In fact, AirTM has not completely resolved all the difficulties faced by healthcare colleagues. A colleague working in a public hospital told me that their supervisors prohibited them from accepting AirTM's assistance. Shortly after the assistance program began, the government even blocked the permission to download AirTM domestically, and we had to use VPN to change our phone's DNS to download and use the app, making it extremely difficult for many people, especially older colleagues. Most healthcare colleagues in need of assistance, or non-medical colleagues, lack sufficient technological knowledge and are very unfamiliar with P2P electronic payments. Nevertheless, AirTM's "Health Heroes" campaign, bypassing the corrupt government through stablecoins to provide relief to the people, has definitely opened a gateway for future international aid.

Conclusion: What's More Important Than Getting Rich

The above story content is not from real local doctors, but a story written based on reports and collected data to make everyone more immersive. The emergence of cryptocurrencies was originally meant to allow everyone to enjoy financial freedom without discrimination and across borders. However, its development has mostly turned into a speculative product for countries already with a sound financial system to invest in. Countries like Venezuela and Argentina have long been plagued by severe inflation due to corrupt fiscal policies, with the former struggling to accept international aid due to a dictatorial regime. Cryptocurrencies have become a more trusted currency for many local residents. Circle and AirTM, through the use of digital dollars USDC, have provided aid directly to those in need by bypassing the control of the Maduro regime over the domestic financial system.

In this bull market where everyone is rushing to make a profit, Circle and AirTM have shown us the saying: Do you want to be rich? Or do you want to be right?

✨ Headlines of the Week

Back to the 600 Mark! Ethereum Price Hits a New High Since June 2018

Just three days ago, Ethereum's price broke $500, and today it briefly exceeded $600, marking the highest price for Ethereum since June 2018. This surge is mainly driven by the Bitcoin bull market and optimistic expectations for the upcoming Ethereum 2.0 launch.

Ethereum 2.0 Contract Address Deposits Exceed Threshold of 524,288, Launching on 12/1

The Ethereum 2.0 contract address has reached 524,288 deposits, and the deposit number is rapidly increasing, with 544,480 deposits recorded at the time of writing. ETH 2.0 will officially launch and operate on 12/1.

Uniswap Can Do Without Liquidity Mining? Yield Farmers Losing Interest, APY Not Inferior to SushiSwap

Does Uniswap really need liquidity mining? Observing the annual percentage yield (APY) available to liquidity providers on Uniswap and SushiSwap, we find that Uniswap without liquidity mining is also competitive. In a Uniswap governance proposal, nearly 90% of the votes were against "launching again" or "launching so soon" liquidity mining. The main reason is that liquidity mining has attracted too many liquidity providers LP, reducing profits even below the state without liquidity mining.

Cappuu Actively Upgrades Intelligent Investment, Adopts Yearn's 3Pool Vault

Cappuu, a DeFi investment integrator that allows everyone to buy coins with a credit card, has recently upgraded its active investment strategy. The original USDC Vault has been upgraded to the new Yearn Finance 3Pool Vault. The average annualized return rate after the upgrade is approximately 14.6%, with a higher average annualized return rate of 22.6% over the past 7 days.

Circle Collaborates with Fintech Company Airtm to Deliver Aid to Venezuelan Healthcare Workers Using USDC

Through cooperation with Venezuelan National Assembly President Guaido, the US-based fintech innovation company AirTM, and the US government, Circle has established a channel to provide aid to local healthcare workers using USDC. Through this US dollar-based, open, web-oriented digital dollar, circumventing the Maduro regime's control over the domestic financial system, millions of dollars have been invested in the hands of those fighting for the health and safety of the Venezuelan people.

🚀 DeFi Protocols

🛠 Liquidity Mining

🏛 Government and Institutions

💰 Financing

💸 Malicious Attacks