Weekly DeFi/NFT News — January 10, 2022
Published in
7 min readJan 10, 2022
Weekly DeFi/NFT news is a collection of major weekly events/announcements brought from the most trustworthy data sources, such as The Defiant, Spencer Noon, Week in Ethereum News etc. with comments and extra insight from the Bulldax DeFi labs.
DeFi newbie guide — how to start with DeFi — Reddit
This guide is brought to you from r/defi reddit
- Go to DefiLlama and check which DeFi is available in your chain. As a beginner, you should try the #1 Decentralized Exchange (DEX) in that chain. They are:
- If you go to their website and check out the Farm, you will see something like AVAX-USDC 30% APR. These are called Liquidity Pool and it is the primary thing to farm in DeFi.
What’s Liquidity Pool?
- Basically, you need to provide an equal amount of two tokens to start farming it. If AVAX is $100 and you want to farm 10 AVAX in AVAX-USDC pool, you need to add $1000 USDC.
- This means you have $2000 worth of token farming with a 30% APR (interest rate per year). This rate keeps changing though, we will discuss it further later. Alternatively, if you don’t have more capital to add in the other token, simply swap 5 AVAX into USDC.
What’s Farm Token?
- When you create an LP, you immediately start accruing the trading fee. It’s compounded directly to your LP. But most DEXes allow you to stake the LP to get its farm token. For example CAKE in Pancakeswap or BOO in Spookyswap.
- These farm tokens are highly inflationary and prices tend to go down. Always research its tokenomic and use case. If there are an infinite amount and the only use case is to be staked (or for voting power), it’s not looking good.
- There are of course some exceptions like Curve and Convex. Some organizations are buying the farm token because they want bigger voting power.
Check the rest of the post and upvote if you liked it on : https://www.reddit.com/r/defi/comments/rxj072/defi_guide_for_newbie_and_how_to_manage_risk/
Yearn Passes New Tokenomics, Rewarding YFI Stakers With Up to $35M Per Year — The Defiant
- Yield aggregator Yearn Finance has closed the vote on its new tokenomics. Once implemented, holders of its YFI governance token will need to stake their tokens to participate in governance, but in doing so they will be able to earn more YFI.
- Yearn will use protocol profits to buy YFI tokens off the open market and distribute it back to stakers, while also maintaining a fixed operational fund of $30M.
- Yearn is following the lead of automated market maker Curve Finance, with the revamped tokenomics intended to limit liquid supply and foster long term price appreciation.
- In 2021, Yearn has been able to buy roughly 300 YFI with profits, according to the authors of the newly passed Yearn Improvement Proposal. The authors estimate that $30 to $35M worth of YFI will be distributed annually to users who stake their tokens.
- “The new design does not create a drain on Treasury assets. Instead there are reinforcing flywheel effects where tokenomics rewards drive more TVL, that in turn drive more fees, that in turn drive more YFI buybacks, that is then used to reinforce the tokenomics.”
Source: https://thedefiant.io/yearn-yfi-staking/
Aave Unveils Mobile Wallet and Eyes V3 Deployment on StarkNet — The Defiant
- Lending protocol Aave is developing a mobile wallet.
- Founder Stani Kulechov said Aave holds an electronic money license in the U.K. to support the wallet. Aave Ltd was licensed by the Financial Conduct Authority as an Authorized Electronic Money Institution in July 2020, allowing it to “issue electronic money” and “provide payment services.”
- The protocol is gearing up to launch its whitelisted institutional platform dubbed Aave Arc. On Dec. 30, the Aave community also began discussing whether to deploy its forthcoming v3 iteration on StarkNet’s L2 ZK-Rollup.
- In a November governance post, Aave described v3 and said the deployment will introduce cross-chain transfers, improved capital efficiency, and L2-specific features.
Source: https://thedefiant.io/aave-mobile-wallet/
How to use zkSynch — next generation of Layer 2 (and possibly get an airdrop) — Bankless
- One of the most promising L2 solutions is zkRollups. Some industry leaders have called them the holy grail of Ethereum scaling.
- They have an interesting design feature whereby the more transactions processed, the cheaper they are. It flips the blockchain trilemma on its head.
- Built by Matter Labs, zkSync belongs to a class of L2s known as zkRollups. This means zkSync uses “zero-knowledge” cryptographic proofs to efficiently batch and validate Ethereum transactions by zkSync posting data batches “on-chain” to Ethereum while executing transactions externally to the Ethereum base layer.
There are at least 5 opportunities right now
Before starting, we recommend create a zkWallet on https://wallet.zksync.io/ to use some of the below features.
Argent Wallet.
- It lets you pick out “guardians” who, if you were ever to lose access to your wallet’s signing key, can help you update to a new key and maintain your wallet indefinitely.
- In order not to pay high L1 activation fee, just create a L2 wallet first. You can do so by pressing the “Receive” button in your zkSync account, at which point you can buy crypto via Ramp or receive funds from another Ethereum wallet or zkSync wallet
- Stake ETH on yearn Lido vaults with low gas.
- ZigZag Exchange is a decentralized orderbook exchange that has quickly made a name for itself as the first DEX live on zkSync.
- While it’s early, the upstart has a lot of things going for it, like a native bridge UI, fast withdrawals to Ethereum, limit orders, and a fiat on-ramp through Banxa. Additionally, the project is working on permissionless pair listings, an NFT marketplace, and more.
- Each quarter Gitcoin hosts Gitcoin Grants, a donation-driven event where Ethereum community members can donate and fund open-source Web3 projects.
- Over the past few years, Gitcoin Grants have proven to be a tremendous and collective force for good, yet the program is also notable because it’s supported donations made through zkSync since 2020.
- Just head to Gitcoin, press “Add to Cart” on your desired project(s), and when you’re ready for the checkout process opt for the “Checkout with zkSync” option and follow through with the on-screen instructions.
- Created by Sudoswap creator 0xmons, zkNFT is a proof-of-concept alpha release so approach the platform like it’s an experiment. Yet at the same time, zkNFT does a great job of highlighting how zkSync’s early NFT API works, thus we can look to it to get an early feel for zkSync’s young NFT scene.
- The platform lets you affordably mint, manage, and swap zkSync NFTs. The Mint dashboard is where you’d finalize your token metadata, after which the media gets pinned to IPFS through the nft.storage project.
- LayerSwap is a platform that makes it easy and affordable to bridge crypto to zkSync from centralized exchanges (CEXes).
- Under the hood, LayerSwap makes use of the fact that transactions between CEX accounts are free and instant for many venues. Alas, as soon as LayerSwap receives your transaction to one of their accounts they use L2 liquidity pools to quickly and inexpensively credit you your funds on zkSync.
- For now, the assets supported include ETH and USDT while the CEXes supported include Binance, Coinbase, FTX, Huobi, KuCoin, and OKEx.
Source: https://newsletter.banklesshq.com/p/how-to-use-zksync
Bored Ape Yacht Club sales reach $1B
- Bored Ape Yacht Club (BAYC) is a collection of 10k unique digital characters on Ethereum. Many are used as PFPs, but membership also includes access to exclusive perks; its Discord has 100k+ members. One was recently purchased by Eminem.
- Total sales just surpassed $1b. For reference, the BAYC market cap is still only about 40% of CryptoPunk’s.
- Unique wallets reached ~6,090, with the average holder owning ~1.6; the most owned by a single wallet is 105. About 1,300 addresses own more than one.
- BAYC’s floor price has fluctuated between ~50 and ~70 ETH over the past month; the current floor is ~68 ETH and average prices tracked around 71 to 85 ETH.
Source: https://ournetwork.substack.com/p/ournetwork-issue-103-part-2
