DeFi in Ether: $104B in DeFi, Bancor v3 unveiled, Zapper reaches 1M MAUs, Perpetual Protocol v2 launched, xDai and Gnosis merger is going to go through, Ren’s Host 2 Host is live on mainnet, 1inch grabs $175M in token sale, 0x + Celo expand partnership, Private beta of Sulu on Enzyme before Christmas, and more!

Paradigm

Published in

Paradigm

13 min readDec 7, 2021

Biweekly update on Ethereum DeFi ecosystem vol.43, 23rd November — 7.12

TL;DR

$104B in DeFi this week, currently at ~ $104.5B, with Maker dominance 18.60%.
Introducing Bancor 3: Bancor 3 marks a New Day for DeFi — one in which people & projects retake DeFi’s core building block to bring community-sourced liquidity. Watch Bancor’s Head of Research Mark Richardson present Bancor 3 live. The Bancorian | A Weekly Summary-November 21st, 2021.
xDai Weekly Newsletter December 03, 2021: A well-attended AMA, and several amendments to the original proposal, snapshot voting on the proposed merger between the xDai Chain and Gnosis is officially underway. Voting will end today, on Tuesday, 7 Dec at 5:00pm UTC. This vote has seen the highest participation rate of any snapshot vote in the history of the xDai community (500+ voters and counting), and with good reason. It is a historic proposal with far-reaching implications for the future. Tornado Cash reached a new milestone on xDai with over $1M deposited into the protocol. DeHive announced an xDai integration and plans to release several clusters on xDai. xDai Punks launched a unique token sale on xDai running from 1 December — 8 December.
Find out the latest GnosisDAO proposals here. Looks like xDai and Gnosis merger is going to go through. The 0xhabitat Multisig Got Drained: An Analysis: A Gnosis Safe user experienced a severe and sophisticated phishing attack that resulted in the project’s Multisig being drained.
Host 2 Host is live on mainnet: RenVM can now bridge almost any asset on any blockchain. Simply put, it opens up a new world for RenVM and its addressable market.
Zapper reaches 1 million MAU’s: The Zapper platform now has 1 million monthly active users and has processed over $10 billion in total transaction volume.
MetaMask supports the Lattice1: With Lattice1, you use MetaMask precisely as you do now, but with the peace of mind knowing you’re using hardware security instead. You sign transactions normally in MetaMask; requests will pop up on the Lattice1’s touch screen as well for verification.
The Enzyme team announced that they will be launching a private beta of Sulu on Enzyme before Christmas. The first 100 users to sign up for this will get complimentary MATIC tokens to help them get started thx to Polygon & Enzyme finance. Sign up here. Fifty Shades of Trust: Programmable Risk Management. Check out MFP: Enzyme Funding Proposals here. Last week’s updates.
Over the last two weeks, Uniswap v3: saw a new 24hr volume record of $4.8bn, set a weekly volume ATH of $21bn+, generated more ETH/USD volume than Coinbase. Other Internet will expand its research program and conduct novel governance experiments within the Uniswap ecosystem. Latest Uniswap proposals are here. UNI Letters #7.
mStable launches mUSD/RAI Feeder Pool: RAI is a decentralised and permissionless stable asset that is not pegged to the US dollar. MTA rewards started on 6th December and will be capped for the first few weeks to roll out this pool gradually. mStable ecosystem integrates with APY Finance. AMA with Symphony Finance — mStable. Check out mStable’s latest proposals here.
Latest Aave News: v3 Licensing Snapshot, Add G-UNI to the AMM Market, Helsinki, aKIDNEY, and more. Follow the Aave governance forum.
Find the latest Compound proposals here. Proposal 070: Security Solutions For Compound Governance has failed. Proposal 071: Risk Parameter Updates for DAI, BAT, ZRX, and ETH has been executed. Proposal 072: Risk Parameter Updates for WBTC, UNI, and COMP is queued.
Gasless deposits now live: dYdX is excited to offer gasless deposits and seamless 0x swaps for a greatly improved onboarding experience. Review of Epoch 3: Fourth round of updates from the team on the ecosystem, community, mining programs, and more. Content Competition: Earn rewards for creating visual and informative content based on a prompt of your choice. The competition will run for the next 30 days. Final submissions must be made on December 31st prior to 24:00 UTC on the Typeform dYdX created for the competition here.
A Retrospective on the Across Launch and What’s Next: UMA launched Across Protocol in early November. Across is a bridging solution which uses UMA’s Optimistic Oracle (OO) to speed up Layer 2 (L2) to Layer 1 (L1) transactions. Across has been offered entirely to the community to take over as co-founders.
0x + Celo expand partnership to allocate $4.5M in joint funding to the 0x DAO: Celo’s DeFi for the People initiative is one step closer to its goal of delivering DeFi to 6 billion smartphone users worldwide on 0x-powered apps. 0x Ecosystem Spotlight: Matcha: An interview with 0x API integrator Matcha, a simple DEX aggregator designed for everyone.
The Atria Release: On December 3, the Atria was released. Here’s what’s included in this release: SIP-192: Fee Pool Accounting Error Fix and Reimbursement: Fixes an error where fees from WrapperFactory are double-counted. Debt Pool Synthesis: This post details the upcoming Debt Pool Synthesis feature that will introduce fungibility between L1 and L2 Synthetix synths. Futures Update: An update on the current state of Synthetix perpetual futures.
Find the latest Index Coop proposals here. DPI and MVI are now available on Polygon: Index Coop’s DeFi Pulse Index (DPI) and Metaverse Index (MVI) products are now available on the Polygon network. Beta Finance Partners with Index Coop. Conversations with the Coop — Allen Lee — Beta Finance.
Lemma Live on mainnet: Lemma is the first basis trading vault and stablecoin backed by decentralized derivatives to launch on mainnet.
Slingshot deploys to Arbitrum: You can now use the Slingshot DEX on the Arbitrum layer 2 network with real-time charts for every token, positive slippage and more.
Adidas partners with Coinbase: Adidas Originals, a brand of the German sportswear clothing firm Adidas, has announced a partnership with the crypto exchange Coinbase.
Biconomy introduces Gas Tank: dApp partners can now fill up the gas tank & be assured that the relayers will fund the gas for all user transactions.
Ondo and Fei team-up: Ondo Finance and Fei Protocol have partnered with several cutting-edge DeFi protocols to help them increase their decentralized exchange liquidity.
Component launches YTC: The Yield Token Compounding (YTC) tool is built on top of Element Finance and allows users to interact with the protocol recursively.
Lyra community rewards detailed: Lyra is rewarding early community contributors, traders and LPs with a retroactive token distribution.
Premia live on Arbitrum; Single-sided staking for wBTC, wETH, LINK call and DAI put pools are now available on Premia on Arbitrum.
Elpis Battle (EBA) has chosen KyberDMM DEX for enhanced token liquidity on BSC! ~$1M+ in liquidity mining rewards. Find out all Kyber proposals here. Check them out on GitHub.
Securities and Exchange Commission chairman Gary Gensler is keeping mum on new guidance for crypto tokens.
Senate Banking Committee Chair seeks answers on stablecoins from Tether, Center, Paxos and more.
How The Merge Impacts Ethereum’s Application Layer — Tim Beiko via EF Blog.
Unifying Cross-Chain Liquidity with Connext — Nichanan Kesonpat via 1kx.
Ultimate Crypto Tax Guide — Dan Hannum via Bankless.
The origin of yield farming.
And more!

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Total Value Locked in DeFi

$104B in DeFi this week, currently at ~ $104.5B, with Maker dominance 18.60%.

Top DeFi Tokens by Market Capitalization

Total Market Cap: $92,930,729,087

DeFi Aggregators

mStable:

mStable launches mUSD/RAI Feeder Pool: mStable launches new mUSD/RAI Feeder Pool with a non US dollar pegged asset. RAI is a decentralised and permissionless stable asset that is not pegged to the US dollar. MTA rewards started on 6th December and will be capped for the first few weeks to roll out this pool gradually.
mStable ecosystem integrates with APY Finance: APY.Finance has integrated mStable’s Curve-musd pool within the APY.Finance yield farming portfolio. $APY governance token holders voted nearly unanimously to add the musd pool to the APY.Finance platform, with over 5.5m $APY tokens used to participate in the proposal.
AMA with Symphony Finance — mStable
Check out mStable’s latest proposals here.

Lending

Aave:

Latest Aave News: v3 Licensing Snapshot, Add G-UNI to the AMM Market, Helsinki, aKIDNEY, and more.
Follow the Aave governance forum.

Compound:

Find the latest Compound proposals here.

Proposal 070: Security Solutions For Compound Governance has failed.

Proposal 071: Risk Parameter Updates for DAI, BAT, ZRX, and ETH has been executed.

Proposal 072: Risk Parameter Updates for WBTC, UNI, and COMP is queued.

xDai:

xDai Weekly Newsletter December 03, 2021:

A well-attended AMA, and several amendments to the original proposal, snapshot voting on the proposed merger between the xDai Chain and Gnosis is officially underway. Voting will end today, on Tuesday, 7 Dec at 5:00pm UTC. This vote has seen the highest participation rate of any snapshot vote in the history of the xDai community (500+ voters and counting), and with good reason. It is a historic proposal with far-reaching implications for the future.
Tornado Cash reached a new milestone on xDai with over $1M deposited into the protocol.
DeHive announced an xDai integration and plans to release several clusters on xDai.
xDai Punks launched a unique token sale on xDai running from 1 December — 8 December.
And more!

Derivatives, Swaps and Prediction Markets

dYdX:

Gasless deposits now live: dYdX is excited to offer gasless deposits and seamless 0x swaps for a greatly improved onboarding experience.
Review of Epoch 3: Fourth round of updates from the team on the ecosystem, community, mining programs, and more.
Content Competition: Earn rewards for creating visual and informative content based on a prompt of your choice. The competition will run for the next 30 days. Final submissions must be made on December 31st prior to 24:00 UTC on the Typeform dYdX created for the competition here.

Gnosis:

The 0xhabitat Multisig Got Drained: An Analysis: A Gnosis Safe user experienced a severe and sophisticated phishing attack that resulted in the project’s Multisig being drained.
Find out the latest GnosisDAO proposals here.
Looks like xDai and Gnosis merger is going to go through.

UMA:

A Retrospective on the Across Launch and What’s Next: UMA launched Across Protocol in early November. Across is a bridging solution that uses UMA’s Optimistic Oracle (OO) to speed up Layer 2 (L2) to Layer 1 (L1) transactions. Across has been offered entirely to the community to take over as co-founders.

Fund Management

Enzyme Finance (formerly Melon):

The Enzyme team announced that they will be launching a private beta of Sulu on Enzyme before Christmas. The first 100 users to sign up for this will get complimentary MATIC tokens to help them get started thx to Polygon & Enzyme finance. Sign up here.
Fifty Shades of Trust: Programmable Risk Management
Check out MFP: Enzyme Funding Proposals here.
Last week’s updates:

Set Protocol & Index Coop:

Find the latest Index Coop proposals here.
DPI and MVI are now available on Polygon: Index Coop’s DeFi Pulse Index (DPI) and Metaverse Index (MVI) products are now available on the Polygon network.
Beta Finance Partners with Index Coop
An Introduction to the Data Economy: What is the data economy?
Conversations with the Coop — Allen Lee — Beta Finance

Liquidity Relays

0x project:

0x + Celo expand partnership to allocate $4.5M in joint funding to the 0x DAO: Celo’s DeFi for the People initiative is one step closer to its goal of delivering DeFi to 6 billion smartphone users worldwide on 0x-powered apps.
0x Ecosystem Spotlight: Matcha: An interview with 0x API integrator Matcha, a simple DEX aggregator designed for everyone.

1inch:

1inch completes Series B: The $175 million Series B round was led by Amber Group with participation from a bunch of other investors.
The 1inch dApp added to Ledger Live: A combination of 1inch and Ledger tech facilitates competitive swap rates while keeping users’ digital belongings fully secure.

Balancer:

Balancer DAO Commits to DAO Agreement and Token Swap With Fei DAO In Unprecedented Move: Agreement and Token Swap aims to align the interests of Balancer and FEI and accelerate the collaboration between the DAOs.
Balancer Grants Monthly Update #3
The latest Balancer Report is here.
Kia from Balancer Labs publishes their bi-weekly community update.
GF breaks the record for LBP funds raised.

Bancor:

Introducing Bancor 3: Bancor 3 marks a New Day for DeFi — one in which people & projects retake DeFi’s core building block to bring community-sourced liquidity.
Watch Bancor’s Head of Research Mark Richardson present Bancor 3 live.
The Bancorian | A Weekly Summary-November 21st, 2021
RioDeFi announces the integration of Bancor into RioWallet

Kyber:

Elpis Battle (EBA) has chosen KyberDMM DEX for enhanced token liquidity on BSC! ~$1M+ in liquidity mining rewards
Find out all Kyber proposals here. Check them out on GitHub.

Loopring:

Over $3 BILLION traded on Loopring L2 with no gas-fees.

Uniswap:

Over the last two weeks, Uniswap v3: saw a new 24hr volume record of $4.8bn, set a weekly volume ATH of $21bn+, generated more ETH/USD volume than Coinbase.
Other Internet Announces $1M Grant from Uniswap Grants Program: Other Internet will expand its research program and conduct novel governance experiments within the Uniswap ecosystem.
The latest Uniswap proposals are here.
UNI Letters #7

Payments Networks

Synthetix:

The Atria Release: On December 3, the Atria wasreleased. Here’s what’s included in this release: SIP-192: Fee Pool Accounting Error Fix and Reimbursement: Fixes an error where fees from WrapperFactory are double-counted.
Debt Pool Synthesis: This post details the upcoming Debt Pool Synthesis feature that will introduce fungibility between L1 and L2 Synthetix synths.
Futures Update: An update on the current state of Synthetix perpetual futures.

Privacy protocols for DeFi

Ren protocol:

Host 2 Host is live on mainnet: Host 2 Host allows RenVM to support and bridge almost any asset on any blockchain. A few examples of the token types and possibilities Host 2 Host provides:

Generic ERC20 Tokens: RenVM can now move generic ERC-20s such as $MIM to any host chain we support such as Solana, Abriturm, Polygon, etc. (as $renMIM).
LP Tokens: RenVM can now also move LP tokens from one chain to another, meaning if approved RenVM can move $crvRenWBTC from Ethereum to Fantom to be used as collateral for a stablecoin like $MIM (as rencrvRenWBTC).
Cross-Chain Native Tokens: RenVM can now move assets native to other chains to any other host chain like $SBR (an SPL token, the Solana token standard) to chains such as Ethereum as an ERC-20 (as $renSBR).
Native L1 Assets: Last but not least, RenVM can now move assets that are native to L1’s, such as $ETH, to other chains such as Solana in the form of $renETH (as an SPL token in the Solana case).

Simply put, this opens up a new world for RenVM and its addressable market.

More updates

MetaMask supports the Lattice1: With Lattice1, you use MetaMask precisely as you do now, but with the peace of mind knowing you’re using hardware security instead. You sign transactions normally in MetaMask; requests will pop up on the Lattice1’s touch screen as well for verification.
Lemma Live on mainnet: Lemma is the first basis trading vault and stablecoin backed by decentralized derivatives to launch on mainnet.
Slingshot deploys to Arbitrum: You can now use the Slingshot DEX on the Arbitrum layer 2 network with real-time charts for every token, positive slippage and more.
Adidas partners with Coinbase: Adidas Originals, a brand of the German sportswear clothing firm Adidas, has announced a partnership with the crypto exchange Coinbase.
Biconomy introduces Gas Tank: dApp partners can now fill up the gas tank & be assured that the relayers will fund the gas for all user transactions.
Ondo and Fei team-up: Ondo Finance and Fei Protocol have partnered with several cutting-edge DeFi protocols to help them increase their decentralized exchange liquidity.
Zapper reaches 1 million MAU’s: The Zapper platform now has 1 million monthly active users and has processed over $10 billion in total transaction volume.
Component launches YTC: The Yield Token Compounding (YTC) tool is built on top of Element Finance and allows users to interact with the protocol recursively.
Lyra community rewards detailed: Lyra is rewarding early community contributors, traders and LPs with a retroactive token distribution.
Premia live on Arbitrum; Single-sided staking for wBTC, wETH, LINK call and DAI put pools are now available on Premia on Arbitrum.