DeFi in Ether: $113B in DeFi, Aave v3 detailed, Dharma and Idex Coop teamed up, xDAI/Gnosis merge, London Hard Fork to be activated on xDai on Nov 11, Bancor V3 Phase I is on the horizon, Uniswap brand update, DeversiFi updates, and much more!
Biweekly update on Ethereum DeFi ecosystem vol.41, 26th October — 9th November
TL;DR
- $113B in DeFi this week, currently at ~ $113.6B, with Maker dominance 18.17%.
- Aave v3 detailed: Aave v3 comes with a host of new features including Portal, High Efficiency Mode, Risk Management Improvements and much more. Latest Aave News: Aave V3 announced, Ampleforth AMA, Web3Jam, and more. Follow the Aave governance forum.
- DAI direct deposit module launched: This module gives Aave privileged access to mint DAI once the test debt ceiling is raised. This marks a transition point from Maker as a commercial lender to Maker as the financial backbone of DeFi.
- Dharma just rolled out trading on Polygon. Dharma teamed up with Idex Coop. Dharmas Affiliate program announced. Earn up to 50% of the fees from users you refer for up to 1 year. Deposit commissions in your DAO’s treasury, your Discord’s multisig, or your wallet.
- xDai Weekly Newsletter November 5, 2021: London Hard Fork, including EIP-1559, will be activated on the xDai Chain on November 11th. Upgrade Instructions. POA token holders can now exchange POA for STAKE on xDai. Agave continues to gain traction on xDai. PolyNetwork announced an xDai integration.Mt Pelerin announced their MPS token on xDai, the first cross-chain security token.
- mStable launches mBTC/tBTCv2 Feeder Pool: This Feeder Pool replaces the current mBTC/tBTC Feeder Pool. MTA rewards migrated and started on Monday 1th November 2021. Liquidity Providers are advised to migrate in order to continue to receive MTA rewards. The team announces mStable as an out of the box integration on the private beta of SimpleFi. SimpleFi is working to build DeFi’s most powerful analytics tool to track your investments. Check out mStable’s latest proposals here.
- Yearn has surpassed $6B TVL. $2 million paid to Yearn partners: More projects are moving to Yearn’s fertile gardens, where they can source yield and feel protected by the Citadel walls. They focus on their own products and moats and earn up to 50% of user fees back to DAO simply for building on top of Yearn. yAcademy Pilot: A retrospective into yAcademy’s pilot fellowship program that was just held Sept 15 — Oct 16. Yearning for Yearn Demographic Survey DEMO2.
- Uniswap Exchange launches: It’s a protocol for automated exchange of ERC20 tokens on Ethereum. Uniswap Brand Update: The team shared proposed new branding for the Uniswap Protocol. And, over the coming week, they’ll be hosting a community call to discuss the creative process and also soliciting feedback through the governance forum. UNI Letters #5. Latest Uniswap proposals are here.
- Compound Proposal 68 End cCOMP Borrow Rewards is in the voting period: This proposal stops COMP rewards for cCOMP borrowing using the new Comptroller function allowing for splitting COMP speeds. COMP rewards will remain the same for cCOMP suppliers. Currently, there are COMP rewards given to cCOMP borrowers while the borrow cap is in use. This creates a situation where the net rate for borrowing COMP is negative. As such, COMP borrowing is forced to borrow CAP, and the market is unable to reach equilibrium. This proposal will cause the net rate of borrowing COMP to be positive and will result in the market reaching equilibrium. Find the latest Compound proposals here. Check out COMP Governance & Distribution Update.
- Review of Epoch 2: The third edition of DYDX Epoch Review, presenting updates from the DYDX community and ecosystem. The first on-chain dYdX proposal has passed. The community voted strongly in favor of compensating users affected by the Safety Module issue. ALGO now live: ALGO (ALGO-USD) Perpetual Contract market is now live. Eligible traders outside of the United States can trade $ALGO with up to 10x leverage, cross margining, and zero gas fees. Check out the new preferences menu in the dYdX Layer 2 app, including a way to update your username.
- GIP 16 — Gnosis Chain — xDAI/Gnosis merge. The Gnosis & xDAI community should merge their tokens & together develop the xDAI Blockchain under the name “Gnosis Chain” with an ambitious technical roadmap. Find out the latest GnosisDAO proposals here.
- UMA Update — October: October has been an exciting month, with team presentations in London at Token2049 and at LisCon in Lisbon; the finalisation of the Across bridge Protocol due to launch next month; integration with the Sherlock Protocol and KPI options launched on Volatility Protocol and PieDAO.
- This week in Enzyme. The Enzyme team nearly doubled the size of our bug bounty program which is with Immunefi and released the v4 code. Did you know that through Enzyme your DAO/organisation can assign programmable trading policies to a team or community member which dictate exactly what they can or can’t do? (Twitter thread). Check out MFP: Enzyme Funding Proposals here.
- Find the latest Index Coop proposals here. DATA Index TVL has crossed $2 million TVL. Beginners Guide to Data Economy Index($DATA) The Case for DAO Treasury Diversification: Index Coop contributor Weeze walks through the case for diversification. Conversations with the Coop — Namik & Ata — PrimeDAO.
- 0x joins the Pyth network: 0x Labs partners with Pyth to provide real-time crypto pricing data from the 0x network. With over $94B in tokenized value exchanged on 0x, the addition of our data significantly improves DeFi market transparency of the Pyth network. 0x API is now available on Fantom.
- Matcha is now live on Fantom Recently, Matcha has onboarded over 234K users across four chains — Ethereum, Polygon, BSC, and Avalanche.
- Meanwhile, the 1inch Network has just hit $700M in 24h overall trading volume on all available blockchains. Also, 1inch has successfully surpassed 4M in total number of swaps on Ethereum. The 1inch Limit Order Protocol successfully crossed $2B in total trading volume.
- Balancer Grants wave two is live: The new grants round for Balancer DAO is now accepting applications. Balancer and CowSwap team up: CowSwap is now integrated in Balancer natively and brings together features such as gasless trading, MEV protection, minimized fees and more. Symphony Finance inrtoduced. It uses Balancer V2’s smart routing algorithm to execute orders on Polygon Mainnet. Balancer doubles LP revenue using Gauntlet. What Is Balancer? The Complete Guide. The latest Balancer Report is here.
- Bancor V3 Phase I is on the horizon. Full details to be revealed November 29, 2021. The Bancorian | A Weekly Summary-October 31st, 2021: A weekly publication where the team covers dev, ecosystem, social media, governance, and community updates. Latest proposals.
- Loopring block explorer released: Users can now easily parse through Loopring L2 blocks and data as well as download/export their own transaction data. Introducing Loopring VIP Tiers: Loopring L2 VIP Tiers — now w/ LRC integrated. This is one step closer toward LRC taking its rightful place as the centre of the Loopring ecosystem + governance.
- Lyra Fee Rebate: The newly formed Synthetix Treasury Council will assist LYRA with fee rebates in order to make pricing competitive, and to signal support to ecosystem partners that bring direct benefit to SNX stakers. The Avior Release: The Avior release implements a new upgrade on L2 only. Here’s what’s included in this release: SIP-182 — Wrappr factory: This SIP creates a new WrapperFactory contract that can deploy new Wrapper contracts to support any ERC20 token. The new Wrapper contract behaves like its predecessor (the ETH Wrappr from SIP-112) and will initially include a WETH wrapper, though more Wrapprs will likely be added in the future.
- This week’s Raiden community update is out. The 192nd edit covers: Additional cost transparency in the quick pay feature; Raiden Pulse upcoming for more updates; Team members attending ETH Lisbon.
- Ren October Development Update: This month the core development team has been preparing two critical infrastructure pieces within RenVM: an expansion of the Greycore and our developer libraries for Host to Host transactions. October Ecosystem Update.
- DeversiFi updates: Updates include multi hop swaps, a complete new UI, an improved deposit & withdrawal process and more.
- Angle live on mainnet: Angle Protocol has officially been deployed on the Ethereum mainnet and allows users to mint & burn the agEUR stablecoin using USDC or DAI.
- Yield Protocol V2 is live in beta: New features include multiple new collateral types, more stablecoins to borrow, improved use of gas & transactions and more.
- Hyype duarded launch now live: The guarded launch includes support for popular NFT series such as CryptoPunks, Bored Ape Yacht Club, Cool Cats and many more.
- Lyra launches Ignition: Ignition is a 6-week journey to launch the LYRA token and transform Lyra into DeFi’s volatility engine.
- Across Protocol announced: The Across Protocol bridge allows users to take a short-term loan on L1. This loan is trustlessly guaranteed using transaction insurance.
- 0xPARC announced: 0xPARC is a new organization supporting decentralized application R&D. The aim is to foster a budding community of researchers, developers, thinkers, and builders — a distributed “skunk works” for the Ethereum and decentralized tech ecosystems.
- Phonon introduced: Phonon is a powerful new scaling and privacy primitive for the entire crypto ecosystem. The protocol uses secure hardware to allow users to transact off-chain, endowing any cryptocurrency with all the properties of a cash transaction: fast, free, and privacy-preserving.
- Alchemy raises $250 million: The Series C round was led by a16z with participation from Lightspeed and Redpoint and existing investors Coatue, Addition, DFJ, and Pantera.
- Sneak peak of Coinbase’s NFT marketplace.
- 5 Mental Models for Web3 | Chris Dixon on Bankless.
- Ultra Scalable Ethereum: Modular vs Monolithic Blockchains on Bankless.
- A New Mental Model for Defi Treasuries on Uncommon Core.
- Ethereum statelessness roadmap.
- A thread on where DeFi goes next.
- And more!
Subscribe to ‘Defi in Ether’ newsletter ⬙
Feel free to join Paradigm on Medium. Twitter. Telegram. Telegram Chat. Reddit. LinkedIn.
Total Value Locked in DeFi
Top DeFi Tokens by Market Capitalization
Total Market Cap: $100,270,336,697
DeFi Aggregators
mStable:
- mStable launches mBTC/tBTCv2 Feeder Pool: This Feeder Pool replaces the current mBTC/tBTC Feeder Pool. MTA rewards migrated and started on Monday 1th November 2021. Liquidity Providers are advised to migrate in order to continue to receive MTA rewards.
- The team announces mStable as an out of the box integration on the private beta of SimpleFi. SimpleFi is working to build DeFi’s most powerful analytics tool to track your investments.
- Check out mStable’s latest proposals here.
Yearn Finance:
- Yearn has surpassed $6B TVL
- $2 million paid to Yearn partners: More projects are moving to Yearn’s fertile gardens, where they can source yield and feel protected by the Citadel walls. They focus on their own products and moats and earn up to 50% of user fees back to DAO simply for building on top of Yearn.
- yAcademy Pilot: A retrospective into yAcademy’s pilot fellowship program that was just held Sept 15 — Oct 16.
- Yearning for Yearn
- Demographic Survey DEMO2.
Lending
Aave:
- Aave v3 detailed: Aave v3 comes with a host of new features including Portal, High Efficiency Mode, Risk Management Improvements and much more.
- Latest Aave News: Aave V3 Announced, Ampleforth AMA, Web3Jam, and More:
- Follow the Aave governance forum.
Compound:
- Proposals in the voting period:
- Proposal 68 End cCOMP Borrow Rewards is in the voting period: This proposal stops COMP rewards for cCOMP borrowing using the new Comptroller function allowing for splitting COMP speeds. COMP rewards will remain the same for cCOMP suppliers. Currently, there are COMP rewards given to cCOMP borrowers while the borrow cap is in use. This creates a situation where the net rate for borrowing COMP is negative. As such, COMP borrowing is forced to borrow CAP, and the market is unable to reach equilibrium. This proposal will cause the net rate of borrowing COMP to be positive and will result in the market reaching equilibrium.
- Find the latest Compound proposals here.
- COMP Governance & Distribution Update.
Dharma:
- Dharma just rolled out trading on Polygon
- Dharma teamed up with Idex Coop
- Dharmas Affiliate program announced. Earn up to 50% of the fees from users you refer for up to 1 year. Deposit commissions in your DAO’s treasury, your Discord’s multisig, or your wallet.
xDai:
xDai Weekly Newsletter November 5, 2021: London Hard Fork, including EIP-1559, will be activated on the xDai Chain on November 11th.
- EIP- 1559: The block number has been set (19,040,000) and the team eagerly anticipate the London HF and EIP-1559 activation on xDai. Upgrade Instructions.
- POA Merger: POA token holders can now exchange POA for STAKE on xDai.
- Agave continues to gain traction on xDai.
- PolyNetwork announced an xDai integration.
- Mt Pelerin announced their MPS token on xDai, the first cross-chain security token.
Derivatives, Swaps and Prediction Markets
dYdX:
- Review of Epoch 2: The third edition of DYDX Epoch Review, presenting updates from the DYDX community and ecosystem.
- The first on-chain dYdX proposal has passed. The community voted strongly in favor of compensating users affected by the Safety Module issue.
- ALGO now live: ALGO (ALGO-USD) Perpetual Contract market is now live. Eligible traders outside of the United States can trade $ALGO with up to 10x leverage, cross margining, and zero gas fees.
- Check out the new preferences menu in the dYdX Layer 2 app, including a way to update your username.
Gnosis:
- GIP 16 — Gnosis Chain — xDAI/Gnosis merge. The Gnosis & xDAI community should merge their tokens & together develop the xDAI Blockchain under the name “Gnosis Chain” with an ambitious technical roadmap.
- Find out the latest GnosisDAO proposals here.
UMA:
- UMA Update — October: October has been an exciting month, with team presentations in London at Token2049 and at LisCon in Lisbon; the finalisation of the Across bridge Protocol due to launch next month; integration with the Sherlock Protocol and KPI options launched on Volatility Protocol and PieDAO.
Fund Management
Enzyme Finance (formerly Melon):
- The Enzyme team nearly doubled the size of our bug bounty program which is with Immunefi and released the v4 code.
- Did you know that through Enzyme your DAO/organisation can assign programmable trading policies to a team or community member which dictate exactly what they can or can’t do? (Twitter thread).
- Check out MFP: Enzyme Funding Proposals here.
Index Coop:
- Find the latest Index Coop proposals here.
- DATA Index TVL has crossed $2 million TVL.
- Beginners Guide to Data Economy Index($DATA)
- The Case for DAO Treasury Diversification: Index Coop contributor Weeze walks through the case for diversification.
- Buying $MVI Using Exchange Issuance
- Conversations with the Coop — Namik & Ata — PrimeDAO
Liquidity Relays
0x project:
- 0x joins the Pyth network: 0x Labs partners with Pyth to provide real-time crypto pricing data from the 0x network. With over $94B in tokenized value exchanged on 0x, the addition of our data significantly improves DeFi market transparency of the Pyth network.
- 0x API is now available on Fantom
Matcha:
- Matcha is now live on Fantom
- Recently, Matcha has onboarded over 234K users across four chains — Ethereum, Polygon, BSC, and Avalanche.
Balancer:
- Balancer doubles LP revenue using Gauntlet
- Balancer Grants wave two is live: The new grants round for Balancer DAO is now accepting applications.
- Balancer and CowSwap team up: CowSwap is now integrated in Balancer natively and brings together features such as gasless trading, MEV protection, minimized fees and more.
- Symphony Finance introduced. It uses Balancer V2’s smart routing algorithm to execute orders on Polygon Mainnet.
- What Is Balancer? The Complete Guide
- The latest Balancer Report is here:
Bancor:
- BancorV3 Phase I is on the horizon. Full details to be revealed November 29, 2021.
- The Bancorian | A Weekly Summary-October 31st, 2021: A weekly publication where the team covers dev, ecosystem, social media, governance, and community updates.
- Latest proposals.
Kyber:
- Pegaxy Enhances Liquidity for $PGX with KyberDMM DEX
- Unbound Finance Enhances Liquidity for $UND on KyberDMM DEX with $1M in Rewards
- EvryNet to Enhance $EVRY Token Liquidity on KyberDMM DEX
- Find out all Kyber proposals here. Check them out on GitHub.
Loopring:
- Loopring block explorer released: Users can now easily parse through Loopring L2 blocks and data as well as download/export their own transaction data.
- Introducing Loopring VIP Tiers: Loopring L2 VIP Tiers — now w/ LRC integrated. This is one step closer toward LRC taking its rightful place as the centre of the Loopring ecosystem + governance.
Curve:
- Convex Boost Delegation
- How Yield Farming on Curve Is Quietly Conquering DeFi
- EUR/USD Forex pools are officially up:
Uniswap:
- Uniswap Exchange launches: It’s a protocol for automated exchange of ERC20 tokens on Ethereum.
- Uniswap Brand Update: The team shared proposed new branding for the Uniswap Protocol. And, over the coming week, they’ll be hosting a community call to discuss the creative process and also soliciting feedback through the governance forum.
- UNI Letters #5
- Latest Uniswap proposals are here.
Payments Networks
Raiden Network:
This week’s community update is out. The 192nd edit covers:
- Additional cost transparency in the quick pay feature
- Raiden Pulse upcoming for more updates
- Team members attending ETH Lisbon
Synthetix:
- Lyra Fee Rebate: The newly formed Synthetix Treasury Council will assist LYRA with fee rebates in order to make pricing competitive, and to signal support to ecosystem partners that bring direct benefit to SNX stakers.
- The Avior Release: The Avior release implements a new upgrade on L2 only. Here’s what’s included in this release: SIP-182 — Wrappr factory: This SIP creates a new WrapperFactory contract that can deploy new Wrapper contracts to support any ERC20 token. The new Wrapper contract behaves like its predecessor (the ETH Wrappr from SIP-112) and will initially include a WETH wrapper, though more Wrapprs will likely be added in the future.
Privacy protocols for DeFi
Ren protocol:
- Ren October Development Update: This month the core development team has been preparing two critical infrastructure pieces within RenVM: an expansion of the Greycore and our developer libraries for Host to Host transactions.
- October Ecosystem Update
More updates
- DAI direct deposit module launched: This module gives Aave privileged access to mint DAI once the test debt ceiling is raised. This marks a transition point from Maker as a commercial lender to Maker as the financial backbone of DeFi.
- DeversiFi updates: Updates include multi hop swaps, a complete new UI, an improved deposit & withdrawal process and more.
- Angle live on mainnet: Angle Protocol has officially been deployed on the Ethereum mainnet and allows users to mint & burn the agEUR stablecoin using USDC or DAI.
- Yield Protocol V2 is live in beta: New features include multiple new collateral types, more stablecoins to borrow, improved use of gas & transactions and more.
- Hyype duarded launch now live: The guarded launch includes support for popular NFT series such as CryptoPunks, Bored Ape Yacht Club, Cool Cats and many more.
- Lyra launches Ignition: Ignition is a 6-week journey to launch the LYRA token and transform Lyra into DeFi’s volatility engine.
- Across Protocol announced: The Across Protocol bridge allows users to take a short-term loan on L1. This loan is trustlessly guaranteed using transaction insurance.
- 0xPARC announced: 0xPARC is a new organization supporting decentralized application R&D. The aim is to foster a budding community of researchers, developers, thinkers, and builders — a distributed “skunk works” for the Ethereum and decentralized tech ecosystems.
- Phonon introduced: Phonon is a powerful new scaling and privacy primitive for the entire crypto ecosystem. The protocol uses secure hardware to allow users to transact off-chain, endowing any cryptocurrency with all the properties of a cash transaction: fast, free, and privacy-preserving.
- Alchemy raises $250 million: The Series C round was led by a16z with participation from Lightspeed and Redpoint and existing investors Coatue, Addition, DFJ, and Pantera.
MISC
- Sneak peak of Coinbase’s NFT marketplace
- 5 Mental Models for Web3 | Chris Dixon on Bankless
- Ultra Scalable Ethereum: Modular vs Monolithic Blockchains on Bankless
- A New Mental Model for Defi Treasuries on Uncommon Core
- Ethereum statelessness roadmap
- A thread on where DeFi goes next:
This is not financial advice.
Subscribe to ‘Defi in Ether’ newsletter ⬙
For more updates, join Paradigm on Medium, Twitter, Telegram, Telegram Chat, LinkedIn, and Reddit.
