DeFiWeekly #8 — Ethereum miners are getting richer!
Ethereum has seen a meteoric rise. The second-largest crypto has seen a 100% increase in price in the last 30 days leading to conversations of a possible flippening.
While the market cap flippening may seem like a distant dream (Ethereum currently stands at ~50% of Bitcoin’s market cap) has flipped Bitcoin in miner revenue.
Although it’s not the first time that Ethereum miners are earning more revenue than Bitcoin miners, this is a more significant one, and Ethereum’s parabolic rise is the primary contribution.
However, this may not be true for long, considering the rollout of EIP 1559 in July 2021, one of the most controversial Ethereum improvement proposals. EIP 1559 will bring significant changes to the fee structure by dividing it into base fees and inclusion fees. The base fees will be burned, and the inclusion fee will go to miners for their work.
DeFi Stats
Top DeFi updates
- Uniswap V3 launches on Ethereum mainnet
- Sushiswap scales to Polygon (Matic) network
- Ren Protocol releases RenVM Mainnet V.04
- Alpha Finance Lab launches Alpha Oracle Aggregator
- Balancer V2 goes live on Ethereum mainnet
DeFi Dose: Liquidity Pools
Liquidity pools are simply a collection of tokens put together in a smart contract. Various DeFi protocols, including AMMs, lending protocols, yield aggregators, and insurance platforms, use liquidity pools as the core functionality of their product. Bancor was the first platform to use liquidity pools to enable decentralized trading, but Uniswap made the concept well known.
When a user supplies liquidity (add their tokens) to the liquidity pool, they receive LP tokens denoting their position and % share of fees depending on the liquidity provided. Today, platforms incentivize users to provide liquidity into specific pools to multiply their yield.
While liquidity pools are a great way to earn rewards and are among the most popular DeFi money legos, one must be wary of the risks associated and only provide liquidity after thorough research.
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ClayStack is a decentralized liquid staking protocol that enables you to earn staking rewards while keeping your assets liquid. Without any lockups.
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