DeFi Weekly #10 — Amidst selloffs, DEXs out-perform CEXs
Since March 2020, crypto has garnered numerous eye-balls from the outside world, and over the past couple of weeks, the interest in “cryptocurrency-related topics” has touched a new ATH, according to Google trends.
Economically, the last week was difficult for the market, but technically, the moment presented a much-needed stress test. Both centralized and decentralized platforms saw record volumes, especially during the weekend selloff.
As always, CEXs struggled to keep up with the transaction volumes and hindered users from logging in and selling their assets, inducing a forced hodl for some users.
On the other hand, DeFi protocols showed their resilience and worked as designed. Network congestion and high gas fees aside, users could seamlessly add/remove liquidity, exchange tokens, and perform other interactions.
TVL in DeFi is currently 3X from the start of the year, at ~$100B after a nosedive from ~$165B. Due to loss in liquidity, several DeFi pools now pose extremely high APYs to attract users.
DeFi Stats:
Top DeFi updates:
1. Coinbase Wallet introduces a browser extension.
Over a million Coinbase users interact with dapps like Uniswap and Sushiswap to make their transactions. The new chrome extension will enable its users to access these applications seamlessly. Earlier, users would have to go through a tedious process to scan QR codes from their mobile for authentication.
2. Aave hints at Pro Market for institutions.
@StaniKulechov, Founder of Aave, posted a tweet highlight what appeared to be a code block from the upcoming Aave Pro, a product built for institutions. While we are yet to hear details, the move aligns with continued interest to onboard institutions to DeFi.
3. PancakeBunny, Bogged Finance suffer flash loan attacks.
DeFi hacking season continues. The latest products to join the list are PancakeBunny and Bogged Finance. Based on #BSC, the platforms lost over $200M in liquidity due to flash loan attacks causing BUNNY and BOG prices to drop by 95%. Flash loans have become the most popular attack vector with over $285M drained since 2019.
4. Loopring introduces Initial Wallet Offering (IWO)
Riding on the success of IDOs and L2 networks, Loopring this week announced a new way to distribute tokens to the community called Initial Wallet Offering (IWO). To participate in an IWO, users need to download the Loopring Smart Wallet and subscribe to the desired token offerings. DAOSquare is the first project to have an IWO.
5. 0x protocol v4 goes live on BSC
The update will aggregate liquidity across PancakeSwap, SushiSwap, DODO, and more platforms on BSC. Since 2020, the 0x protocol has pushed beyond the Ethereum network and expanded to eight networks, including Solana and Polkadot. Unlike several projects that move to new networks for liquidity, 0x has a publically shared approach to evaluate blockchains and expand to new networks.
DeFi Dose: Web3 Wallets
Web3 wallets allow users to interact with products built for the third generation of the web, referring to peer-to-peer networks and blockchain applications that give the user control and decision-making.
Web3 wallets like Metamask, Coinbase Wallet, and Ardent are a critical backbone to enable access to defi applications and have millions of active users.
Wallets have seen an uptick in usage in 2021, and several wallets have launched in the market offering enhancements and new features. As a safe practice, always #dyor before moving your funds into a new wallet.
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