DeFi Recap: Derivatives
Weekly update, 4th February— 11th February.
Welcome to the DeFi report curated by Citadel.one team! We picked up 3 leading DeFi projects from among Derivatives for you to keep track of the most important governance votes, discussions, and incentives. The general market overview, selected metrics, articles, and hot tweets — it’s time for our DeFi Recap. Let’s get started!
We are happy to announce that this DeFi Recap is brought to you in collaboration with Nexus Mutual team. More news, updates & Nexus Mutual metrics inside!
Total Value Locked in Derivatives
Median Gas Price (Gwei), by week
DPI Uniswap Liquidity Chart
A Targeted Liquidity Mining Incentive: Wrapped NXM (wNXM)
Risk assessors deposit NXM and stake on contracts which, to their judgement, is secure and unlikely to be subject to deliberate attacks, or exploits/failures resulting from persistent bugs in the code. As Bancor is growing its TVL, the Foundation has elected to provide NXM stakers with an additional incentive to cover the Bancor contracts, in the form of BNT shield mining rewards 6. These incentives are designed to attract the attention of risk assessors, who may then decide to stake NXM against the platform. High amounts of assessor NXM staking on a contract results in reduced Nexus Mutual insurance premiums for Bancor liquidity providers.
Cast your vote: app.bancor.network
Upgrade: investment earnings, reduced gas fees and streamlined architecture
This upgrade will enable Nexus Mutual to start investing the mutual’s funds, much like a typical insurance company would. It does this by enabling the Capital Pool to make trades via Uniswap. Members will be able to jointly decide which assets to invest in and how much of the mutuals assets to allocate. There is a limit to the amount of new assets (denominated in ETH) that the mutual can hold and each asset has a min/max threshold denominated in the asset itself.
Value Locked: $2.81 B
The Bellatrix release
February 4, 2021 an upgrade has been deployed with a major protocol improvement. During this time, which is expected to take up to several hours, users may be unable to interact with the protocol, including using Staking, Mintr, Kwenta, or Synthetix.Exchange, and transferring SNX or Synths. More details about the upgrade can be found by the link.
As of the end of 2020, there is a new shorting mechanism live on Synthetix! This was previously only available at a contract level, as explained here, but there is now a new interface that allows anyone to take out a simple short. This mechanism is also expected to be integrated into Staking. This post will outline how the shorting dynamic works, and how to use the new interface.
Value Locked: $40M
Open Votes: none.
SecretSwap Update: AMM Rewards + Governance Token
SecretSwap, the first cross-chain and front-running resistant decentralized exchange, will be launched on Secret Network mainnet on February 17, 2021! SecretSwap, which uses the SNIP-20 secret token standard and Secret Ethereum bridge, creates a front-running resistant DEX for Secret Network and Ethereum assets. As our interoperability efforts around IBC and other networks mature, SecretSwap will become a cross-chain, privacy-first, front-running resistant liquidity hub.
This post contains critical information for prospective SecretSwap LPs and traders, all SCRT stakers and delegators, and users of Secret Bridges. Read carefully, and get excited for launch!
Grant Proposal: Secret Tunnels
“At a high level, the project would be an SDK for ‘wrap arbitrary python computation in a separate enclave, and use SN to verify that enclave contains what it says it does, and to send data safely to and from that enclave’.
What does this enable?
‘Using numpy/scipy/sklearn/tensorflow on data via SN’, for one. For 2, all those wonderful decentralized lending algos that need floating-point arithmetic can now run on this. For 3, If you write your python computation idempotently, it massively decreases gas costs for expensive computations, and decreases load on nodes to run them. For 4, now you can have nondeterministic computations on SN via the secondary enclave! (only when the computation is idempotent/caches results).
Citadel.one is a non-custodial Proof-of-Stake platform for the management and storage of crypto assets. Users can create public addresses for all supported networks with one seed phrase, connect their Ledger or Trezor device, or import an address generated by another wallet.
The analytical dashboard provides relevant information on wallets’ balances and networks’ main metrics. In Citadel.one, we are standardizing the semantics, making interactions with the platform as easy as possible. The same goes for network metrics. By using universal terms, we are making it easier for users to understand and compare networks.
One of the main functions of the Citadel.one platform is participation in the PoS consensus — users can stake and delegate their assets, claim rewards, and follow the latest network proposals in the voting tab.
Citadel.one offers its users instant cryptocurrency exchange services that allow fast and secure crypto assets swap, and it is also possible to buy and sell crypto with a credit or debit card. Citadel.one users can track rewards, withdrawals, transfers and deposits across all supported networks and add comments to these transactions.
Among PoS platforms Citadel.one supports Secret Network ($SCRT), Cosmos ($ATOM), ICON ($ICX), IOST, Orbs, and Tezos ($XTZ). For our user’s convenience we also support Ethereum, Bitcoin, and Tether ($USDT). Mobile and desktop versions, new networks, including Polkadot and Band, are scheduled for the upcoming updates. Furthermore, delving into the idea of true decentralization we envision Citadel.one a decentralized autonomous organization and a truly community owned platform in the nearest future.