DeFi in Ether: $86B in DeFi, Arbitrum One is now live, MetaMask surpasses 10M MAUs, 0x API is now available on Avalanche, Dharma is live on Polygon, The RenVM Greycore is on testnet, KyberDMM launches on BSC, 1inch partners with BitPay, More details on how MIP7 is being implemented, and more!
Biweekly update on Ethereum DeFi ecosystem vol.37, 31st August — 14th September
TL;DR
- $85.6B in DeFi this week, currently at ~ $85.64B, with Aave dominance 15.59%.
- Arbitrum One mainnet now live: Users can now bridge into Arbitrum One and start using apps such as Uniswap, SushiSwap and Balancer with low fees and fast transactions. Offchain Labs also announced that they have raised $120 million in a Series B round.
- Dai Almost Ready for Arbitrum: Maker Protocol’s Engineering CU are working to connect Dai to Arbitrum and will conduct a final audit of the Custom DAI Gateway before the launch.
- 0x API is now available on Avalanche: 0x API is live on Avalanche, aggregating liquidity across all existing sources — including Pangolin, SushiSwap and TraderJoe. Check out our documentation and start building on Avalanche with 0x API today. 0x + Celo partner to bring DeFi to 6 billion smartphone users worldwide: 0x establishes itself as a founding partner of DeFi for the People built on the Celo blockchain. 0x Ecosystem Update #14: Highlights, network insights, and news from across the 0x ecosystem — July / August 2021.
- RenVM Greycore on Testnet: The Ren core development team announces the migration of RenVM Testnet to support the Greycore. Learn more about the Greycore, the Testnet process, and its members in rhis article. Build your first Dapp with RenJS: Building a marketplace on Ethereum. August Development Update: Last month the RenVM core development team has been up to quite a lot, from launching its new million-dollar bounty program with Immunefi, to supporting new chains.
- MetaMask surpasses 10 million MAU’s: From 545,080 monthly active users in July 2020 to 10,354,279 in August 2021, MetaMask has grown over 1,800% in just one year.
- Yearn Finance quarterly report for Q2 2021 is out. Read in the latest Yearn Finance Newsletter #45: ALPHA and YFI liquidity providers eligible for a special NFT; Reminder to migrate to V2; How to swap into Yearn Vaults; Cumulative Protocol revenue reaches $39M; Vaults at Yearn; Ecosystem News.
- Aave News: The Next Aave is Aave. Active proposals: Launch Aave on Harmony — Harmony is proposing to deploy Aave v2 on the Harmony blockchain to expand lending to a growing community of users and provide incentives to bootstrap the launch of Aave to a new ecosystem. Follow the Aave governance forum. Latest Aave weekly.
- Polygon is now live on Dharma for all users: With Polygon PoS integration, users can purchase hundreds of tokens on Dharma, directly from a US bank account delivered to their wallet.
- Incident report for the Safety Pool issue: Stake DYDX to the safety staking pool starting September 8. Earn rewards for contributing to Protocol stability. Safety Module Outage: Read a detailed breakdown of a bug for the Safety Staking Pool, for which a fix can be implemented through a governance proposal. Review of Epoch 0: Updates from the team on the ecosystem, community, mining programs, and more.
- xDai Weekly Recap September 10, 2021 is out.
- Compound Proposals in the voting period: Proposal 060 updates the governance system, allowing the Community Multi-Sig to whitelist addresses eligible to directly create governance proposals. Proposal 059 distributes 6,817,632.51 DAI to users affected by liquidations on November 26th, 2020, when the price of DAI reached $1.30 on Coinbase Pro. Find the latest Compound proposals here.
- UMA: Risk Labs Developer Mining Update and Retrospective: Risk Labs will be discontinuing developer mining on Oct 4, 2021. The program has been responsible for jumpstarting UMA adoption and community growth.
- Tokenomics 2.0 — the beginning of a new era: More details on how MIP7 is being implemented. Check out MFP: Enzyme Funding Proposals here. The Curve *EURS* pool is now available on Enzyme in addition to the *stETHLido*, *sETH* & *a3CRV* pools. Latest Weekly Recap. Join a workshop hosted by ETHGlobal on working with the enzyme protocol.
- Metanauts Guide to Coordinape: Rewarding mStable core community. Episode 268: James Simpson, Founder, mStable: In this episode, Tegan Kline interviews James Simpson, the founder of mStable. Check out mStable’s latest proposals here. Idle Leagues partnership proposal with mStable.
- Set Protocol Architecture: Everything You Need to Know About DPI’s Foundations. How Composability Powers FLI Tokens. Index Coop Financial Report: August has seen the Index Coop grow from strength to strength both from a financial standpoint and also as a community. Find the latest Index Coop proposals here.Conversations with the Coop — Ben and Kila from Qi DAO.
- 1inch partners with BitPay: Thanks to the partnership, BitPay users will get access to the 1inch dApp’s DEX aggregation functionality for the best deals across multiple liquidity sources. The 1inch Network integrates with Hashflow: The integration offers top-quality trades for users while opening access to deeper liquidity for 1inch. The 1inch Foundation compensated gas costs to 1inch dApp users in August. Sergej Kunz: “Decentralized exchanges and aggregators drive DeFi growth”. The 1inch Network partners with Take My Muffin animated series.
- Balancer Protocol is live on Arbitrum to scale DeFi liquidity. Check out Balancer Grants Monthly Update. Moreover, WallStreetBets launches exchange-traded portfolios (ETPs) on Balancer V2. HaloDAO aims to bring DeFi to the masses with custom AMM built on Balancer V2. The latest Balancer Report is here. Fernando Martinelli, Balancer Labs CEO, on how defi is turning traditional finance on its head.
- The Bancorian | A Weekly Summary-September 5th 2021: V3 development is progressing, the team is working hard to ensure that gas costs are minimal and that the contracts are simplified. They will be making the contracts easy to deploy on L2s and other lower-cost chains as well. Bancorian Digest | A Weekly Summary-August 29th 2021. Latest proposals.
- KyberDMM Launches on Binance Smart Chain with $4M in Liquidity Mining Rewards: DeFi’s first multi-chain dynamic market maker will enable dynamic fees and higher capital efficiency for liquidity providers on BSC. Knit Finance is collaborating with Kyber Network to Enable Cross-Chain Transactions and Create Market options. Find out all Kyber proposals here. Check them out on GitHub.
- Lyra introduces Trial Liquidity Mining Program: This trial liquidity mining program is designed to increase the supply of sUSD on OE and enable a better experience for Lyra’s traders and liquidity providers.
- Loopring CTO Steve: What is the real future of Layer-2 networks. Loopring L2 Liquidity Mining: Round 14: Get ready for round 14 of incentives on Loopring’s L2 AMM & Orderbook exchange, beginning on September 9, and lasting 28 days.
- SEC Investigating Uniswap Labs. The Wall Street Journal reported the news last Friday, citing “people familiar with the matter.” Enforcement attorneys are said to be seeking information about how investors use Uniswap and how it is marketed. A Uniswap Labs spokesperson told The Journal that the firm is is “committed to complying with the laws and regulations governing our industry and to providing information to regulators that will assist them with any inquiry.” UGP & ETHGlobal Present: UniCode: UGP with ETHGlobal bring UniCode, a dedicated hackathon by and for the uniswap community. UNI Letters #1: UNI Letters is community-run bi-weekly newsletter. It is envisioned as a digest of the most relevant updates from the Uniswap ecosystem. This includes governance discussions, proposals, product and UGP grantee updates and more. Latest Uniswap proposals are here.
- The United States Treasury has reportedly had talks with crypto industry participants, to quiz them about the risks and possible benefits of stablecoins, to better respond to crypto’s rapid growth.
- Brian Armstrong responds to SEC threats to shut down Coinbase yield product.
- The Mirfak Release: On September 13th, several new updates will be added to the protocol. Deprecating Low Volume L1 Synths: As part of our rollout on the Optimistic Ξthereum L2, a number of synths will be deprecated on L1 and subject to a re-listing process for L2. V2x Revisited. Perpetual Futures powered by Synthetix are launching on Kwenta soon. They will be running a massive futures trading competition that you won’t want to miss. Sign up here to be one of the first to know when it starts.
- DeFi Alliance launches gaming accelerator: This gaming accelerator will help game startups with game design, community building, tokenomics and liquidity. It’ll be supported by the D.A.N. and a founding cast of mentors.
- Zapper Product Update #3: Wallet avatars, NFT mania and more in this product update from Zapper.
- Neuron Fund launches on Ethereum and Polygon to bring financial derivatives to DeFi. Neuron Fund is a decentralized fund leveraging liquidity, options, and trading strategies to deliver attractive risk-adjusted performance on crypto and stablecoins.
- DeFi Short Squeeze on Euler.
- Anatomy of an MEV Strategy: Synthetix.
- ParaSwap: Solving Liquidity for DeFi on Epicenter.
- And more!
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Total Value Locked in DeFi
$85.6B in DeFi this week, currently at ~ $85.64B, with Aave dominance 15.59%.
Top DeFi Tokens by Market Capitalization
Total Market Cap: $79,400,084,461
DeFi Aggregators
mStable:
- Metanauts Guide to Coordinape: Rewarding mStable core community.
- Episode 268: James Simpson, Founder, mStable: In this episode, Tegan Kline interviews James Simpson, the founder of mStable, a stablecoin automated market maker on Ethereum and Polygon. Before founding mStable, James was the first employee at Australian crypto hedge fund Apollo Capital, worked as a management consultant at KPMG, Shanghai, and later as a data analyst at KPMG, Melbourne. James studied foreign policy and economics at the University of Melbourne at Fudan University, Shanghai.
- Check out mStable’s latest proposals here.
- Idle Leagues partnership proposal with mStable:
Yearn Finance:
- Yearn Finance quarterly report for Q2 2021. This report has not been audited by a professional accounting firm. The report is for informational purposes only and should not be used for financial, investment, or advice of any kind.
- Read in the latest Yearn Finance Newsletter #45:
-ALPHA and YFI liquidity providers eligible for a special NFT
-Reminder to migrate to V2
-How to swap into Yearn Vaults
-Cumulative Protocol revenue reaches $39M
-Vaults at Yearn
-Ecosystem News
-Yearn is supporting ETHGlobal and ETHOnline:
Lending
Aave:
Latest proposals
- Launch Aave on Harmony: Harmony is proposing to deploy Aave v2 on the Harmony blockchain to expand lending to a growing community of users and provide incentives to bootstrap the launch of Aave to a new ecosystem [Active]
- AMPL interest rate curve adjustment [ended Sep 7: Link]
- What should be the LTV/Liquidation Threshold level for Aave V2? [ended Sep 7: Link]
- Follow the Aave governance forum.
Latest Aave weekly:
Compound:
Proposals in the voting period:
- Compound Proposal 060 updates the governance system, allowing the Community Multi-Sig to whitelist addresses eligible to directly create governance proposals.
- Compound Proposal 059 distributes 6,817,632.51 DAI to users affected by liquidations on November 26th, 2020, when the price of DAI reached $1.30 on Coinbase Pro.
- Find the latest Compound proposals here.
Dharma:
- Polygon is now live on Dharma for all users: With Polygon PoS integration, users can purchase hundreds of tokens on Dharma, directly from a US bank account delivered to their wallet.
Maker:
- Dai Almost Ready for Arbitrum: Maker Protocol’s Engineering CU are working to connect Dai to Arbitrum and will conduct a final audit of the Custom DAI Gateway before the launch.
xDai:
xDai Weekly Recap September 10, 2021:
- The latest bridge contracts have been audited by Chain Security. A number of issues were identified and remedied, and we look forward to deploying some exciting new bridge functionality. Details coming.
- POAP (Proof of Attendance Protocol) has been using xDai for scalability for a long time, and the project continues to grow with over 1M POAPs now minted on xDai.
- A new FOX/DAI pool was established on Honeyswap.
- And more!
Derivatives, Swaps and Prediction Markets
dYdX:
- Incident report for the Safety Pool issue: Stake DYDX to the safety staking pool starting September 8. Earn rewards for contributing to Protocol stability.
- Safety Module Outage: Read a detailed breakdown of a bug for the Safety Staking Pool, for which a fix can be implemented through a governance proposal.
- Review of Epoch 0: Updates from the team on the ecosystem, community, mining programs, and more.
UMA:
- Risk Labs Developer Mining Update and Retrospective: Risk Labs will be discontinuing developer mining on Oct 4, 2021. The program has been responsible for jumpstarting UMA adoption and community growth.
Fund Management
Enzyme Finance (formerly Melon):
- Tokenomics 2.0 — the beginning of a new era. More details on how MIP7 is being implemented. As you might have heard, Sulu (Enzyme’s next release) is expected to be released in Q4, and one of the objectives for this release is to implement the first version of MIP7 (Melon Improvement Proposal 7). MIP7, published by Tom Shaugnessy, Ceteris Paribus and Chris Manessis proposed a major shift in Tokenomics with the key focus being on linking a recurring 25 basis points fee to AUM (Assets Under Management). This marks a shift away from the previously implemented ‘one-off’ set up fees. The introduction of this fee further aligns the interest of token holders, users and developers which the team addresses in this article.
- The Curve *EURS* pool is now available on Enzyme in addition to the *stETHLido*, *sETH* & *a3CRV* pools.
- Latest Weekly Recap.
- Check out MFP: Enzyme Funding Proposals here.
- Join a workshop hosted by ETHGlobal on working with the enzyme protocol.
Set Protocol & Index Coop:
- Set Protocol Architecture: Everything You Need to Know About DPI’s Foundations.
- How Composability Powers FLI Tokens.
- Index Coop Financial Report: August has seen the Index Coop grow from strength to strength both from a financial standpoint and also as a community.
- Find the latest Index Coop proposals here.
Liquidity Relays
0x project:
- 0x API is now available on Avalanche: 0x API is live on Avalanche, aggregating liquidity across all existing sources — including Pangolin, SushiSwap and TraderJoe. Check out our documentation and start building on Avalanche with 0x API today.
- 0x + Celo partner to bring DeFi to 6 billion smartphone users worldwide: 0x establishes itself as a founding partner of DeFi for the People built on the Celo blockchain.
- 0x Ecosystem Update #14: Highlights, network insights, and news from across the 0x ecosystem — July / August 2021.
1inch:
- The 1inch Network integrates with Hashflow: The integration offers top-quality trades for users, while opening access to deeper liquidity for 1inch.
- The 1inch Network partners with BitPay: Thanks to the partnership, BitPay users will get access to the 1inch dApp’s DEX aggregation functionality for the best deals across multiple liquidity sources.
- The 1inch Foundation compensated gas costs to 1inch dApp users in August: Gas cost refunds for those who used the 1inch dApp on Ethereum in August have been successfully paid out.
- Sergej Kunz, 1inch Network: “Decentralized exchanges and aggregators drive DeFi growth”
- The 1inch Network partners with Take My Muffin animated series
Bancor:
- The Bancorian | A Weekly Summary-September 5th 2021: V3 development is progressing, the team is working hard to ensure that gas costs are minimal and that the contracts are simplified. They will be making the contracts easy to deploy on L2s and other lower cost chains as well.
- Bancorian Digest | A Weekly Summary-August 29th 2021
- Latest proposals.
Kyber:
- KyberDMM Launches on Binance Smart Chain with $4M in Liquidity Mining Rewards: DeFi’s first multi-chain dynamic market maker will enable dynamic fees and higher capital efficiency for liquidity providers on BSC.
- Knit Finance is collaborating with Kyber Network to Enable Cross Chain Transactions and Create Market options.
- Find out all Kyber proposals here. Check them out on GitHub.
Loopring:
- Loopring CTO Steve: What is the real future of Layer-2 networks.
- Loopring L2 Liquidity Mining: Round 14: Get ready for round 14 of incentives on Loopring’s L2 AMM & Orderbook exchange, beginning on September 9, and lasting 28 days.
Uniswap:
- SEC Investigating Uniswap Labs: The U.S. Securities and Exchange Commission (SEC) was reportedly investigating Uniswap Labs, the startup behind the largest decentralized cryptocurrency exchange. The Wall Street Journal reported the news last Friday, citing “people familiar with the matter.” Enforcement attorneys are said to be seeking information about how investors use Uniswap and how it is marketed. A Uniswap Labs spokesperson told The Journal that the firm is is “committed to complying with the laws and regulations governing our industry and to providing information to regulators that will assist them with any inquiry.” An SEC spokesperson declined to comment to the news outlet, saying the agency doesn’t confirm or deny investigations.
- UGP & ETHGlobal Present: UniCode: UGP with ETHGlobal bring UniCode, a dedicated hackathon by and for the uniswap community.
- UNI Letters #1: UNI Letters is community run bi-weekly newsletter. It is envisioned as a digest of the most relevant updates from the Uniswap ecosystem. This includes governance discussions, proposals, product and UGP grantee updates and more.
- Latest Uniswap proposals are here.
Payments Networks
Raiden Network:
- Raiden Pulse #18: Updates from July and August: The 18th edition of our bi-monthly Raiden Pulse is out. Get an overview of what happened in the past 2 months.
- Weekly update 186 is out: It covers the 18th edition of the Raiden Pulse, the release candidates were introduced, feedback survey.
Synthetix:
- The Mirfak Release: On September 13th, several new updates will be added to the protocol.
- Deprecating Low Volume L1 Synths: As part of our rollout on the Optimistic Ξthereum L2, a number of synths will be deprecated on L1 and subject to a re-listing process for L2.
- V2x Revisited.
- Perpetual Futures powered by Synthetix are launching on Kwenta soon. They will be running a massive futures trading competition that you won’t want to miss. Sign up here to be one of the first to know when it starts.
Privacy protocols for DeFi
Ren protocol:
- RenVM Greycore on Testnet: The Ren core development team announces the migration of RenVM Testnet to support the Greycore. Learn more about the Greycore, the Testnet process, and its members in rhis article.
- Build your first Dapp with RenJS: Building a marketplace on Ethereum.
- August Development Update: Last month the RenVM core development team has been up to quite a lot, from launching its new million-dollar bounty program with Immunefi, to supporting new chains.
More updates
- MetaMask Surpasses 10 Million MAU’s: From 545,080 monthly active users in July 2020 to 10,354,279 in August 2021, MetaMask has grown over 1,800% in just one year.
- Arbitrum One Mainnet Now Live: Users can now bridge into Arbitrum One and start using apps such as Uniswap, SushiSwap and Balancer with low fees and fast transactions. Offchain Labs also announced that they have raised $120 million in a Series B round.
- DeFi Alliance Launches Gaming Accelerator: This gaming accelerator will help game startups with game design, community building, tokenomics and liquidity. It’ll be supported by the D.A.N. and an founding cast of mentors.
- Lyra Introduces Trial Liquidity Mining Program: This trial liquidity mining program is designed to increase the supply of sUSD on OE and enable a better experience for Lyra’s traders and liquidity providers.
- Zapper Product Update #3: Wallet avatars, NFT mania and more in this product update from Zapper.
MISC
- DeFi Short Squeeze by Seraphim via Euler.
- Anatomy of an MEV Strategy: Synthetix by Robert Miller.
- ParaSwap: Solving Liquidity for DeFi on Epicenter.
- The United States Treasury has reportedly had talks with crypto industry participants, to quiz them about the risks and possible benefits of stablecoins, to better respond to crypto’s rapid growth.
- Brian Armstrong Responds to SEC Threats to Shut Down Coinbase Yield Product: Crypto exchange Coinbase CEO Brian Armstrong responded to planned enforcement by the U.S. Securities and Exchange Commission pertaining to the firm’s recently announced yield-generating product. The firm, which went public on the Nasdaq stock exchange in April, received a subpoena by the SEC less than three months after it announced to the market a product, dubbed Lend, that would allow users the opportunity to earn yields on deposits of USDC on its platform. That’s a much juicer yield than what is offered by consumer banks, which provide less than a basis point for savings accounts. Armstrong said that the exchange contacted the SEC about its yield product and the SEC told Coinbase that the offering is a security but gave no guidance on the compliance with existing laws.
- Neuron Fund launches on Ethereum and Polygon to bring financial derivatives to DeFi. Neuron Fund is a decentralized fund leveraging liquidity, options, and trading strategies to deliver attractive risk-adjusted performance on crypto and stablecoins.
This is not financial advice.
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