DeFi in Ether: $38 in DeFi, Tornado Cash sanctioned by US Treasury, Gnosis Chain Chiado testnet is set to merge today & GnosisScan is here, Ren 2.0 introduced, Enzyme has revamped its Tokenomics model, 1inch partners with KuCoin Wallet, dYdX free gas vulnerability disclosed, and more!

Paradigm

Published in

Paradigm

12 min readAug 16, 2022

Biweekly update on Ethereum DeFi ecosystem vol.58, 2nd August — 16th August

TL;DR

$37.7B in DeFi this week, currently at ~ $37.70B, with Maker dominance 18.08%%.
Ethereum’s third and final testnet merge went live on Goerli recently.
Tornado Cash, a crypto mixer, was recently sanctioned by the US and also by Infura and Alchemy, but the contract and website still remain up and functioning. Also, a suspected developer of Tornado Cash was arrested by the Netherlands, and the Tornado Cash DAO, meanwhile, also voted to take partial control over treasury funds.
Curve finance DNS hijack via DNS cache poisoning, $612k stolen.
MakerDAO’s founder stated that it’s ‘almost inevitable’ that $DAI is going to abandon its USD peg.
mStable Governance Updates are out. mStable x Boardroom integation: Boardroom has launched governance support for mStable. Check out mStable’s latest proposals here.
Subgraphs explained: Yearning for data: Data, based. Subgraphs let devs and users query blockchain data. Read on for more. Self-Hosting Web3 Services: Censored front end in the streets, decentralized back end in the sheets. A timely reminder on the importance of web3 self hosting. How Justin Trudeau helped create the latest Yearn Campaign.
Latest Aave News: Hack at ETHMexico, $OP rewards, The Merge, Retroactive Funding for v3 & more. Follow the Aave governance forum. The Aave V3 retroactive funding ARC is live. The Aave team’s top priority is building a safe & secure system for users. The team integrated TRM’s API on the Aave IPFS frontend, which is why some users may be experiencing trouble accessing the Aave app, one of the frontends to the Aave Protocol. Read for more info.
The first deployment of Compound III is a USDC market on Ethereum. The contracts are on mainnet, and can be activated by Compound Governance. The next-generation borrowing protocol is approaching launch. Compound Proposal 115 ‘Enable Sending ETH from Timelock (Revised)’ has passed successfully. Find the latest Compound proposals here.Compound Developer Community Call — August 10.
Gnosis Chain Weekly · 12 August 2022: The Chiado testnet is set to merge today, on Tuesday the 16th ahead of the official Gnosis Chain/GBC merge in September. GnosisScan is here: The Etherscan team built a new block explorer for Gnosis Chain with its familiar UI and impressive new features. Gnosis Guild launches the zodiac.wiki. Gnosis Chain team members hosted a workshop at ETHSeoul in Korea. The GnosisDAO Community Call took place on the 11th of August with updates from CowSwap, Karpatkey, including a GnosisDAO governance summary and a conversation with the Etherscan team. Cow Protocol gets a makeover.
dYdX free gas vulnerability disclosed, $25k bounty paid. Tornado Outage: The team was recently made aware of an issue related to Tornado that was causing many wallet addresses to be blocked from accessing the exchange. The team has rectified this and you can read the full announcement here.
The State of Enzyme’s Tokenomics: Enzyme has revamped its Tokenomics model to drive sustainable growth. The Enzyme council has voted in favor of a token burn in the amount of 54,669 MLN tokens (worth approx. $1.5M). Enzyme Community Call Q3 2022. Enzyme announced a new integration with Goldfinch. Enzyme has now surpassed 3,000+ deposits on the Ethereum deployment, while TVL is up 43% in the past 30 days. Enzyme monthly roundup. Check out MFP: Enzyme Funding Proposals here. Building a Trading Bot on Enzyme — Update.
Nexus Mutual to invest $29 million of treasury funds into Maple Finance: DeFi insurance protocol Nexus Mutual wants to earn a yield on 10% of its treasury ether (ETH) holdings via an investment in Maple Finance.
Announcing support for new testnets: Goerli for Ethereum and Mumbai for Polygon: 0x announced full support for two new testnets: Goerli, the proof of authority Ethereum testnest, and Mumbai, the testnet for Polygon. They will support Ropsten testnet until October 25, 2022, as it has already been deprecated by the Ethereum Foundation. Developers should plan to migrate to Goerli by then. 0xpo is now an official event of San Francisco Blockchain Week: Join the team on November 3 in SF for an exciting day of speakers, workshops, and networking with Web3 leaders and pioneers. Let’s Talk MEV RoundTable.
The 1inch Network expands to Klaytn. 1inch integrates with Wirex: Under this partnership, the 1inch Aggregation API will be added to Wirex’s non-custodial wallet to power token swaps. 1inch is now fully integrated with Synthetix Atomic Swaps. 1inch DEX aggregator is already available in iMe app. 1inch partners with KuCoin Wallet. The extended gas refund program is now available to yet more users. The 1inch Foundation releases $308,000 to grantees: A new batch of 1inch grants will fund a range of solutions aimed at growing out the 1inch ecosystem and improving user experience. 1inch Monthly Digest: July.
How Balancer Saves Users ETH: Through strategic integrations and sidechain expansions, Balancer’s tech helps mitigate ETH transaction fees. We Are Orb Collective: On a mission to scale global utilization of Balancer Protocol. The latest Balancer Report is here. OlympusDAO is debating acquiring Balancer governance power through veBAL and/or Aura. Powerpool is looking to utilize Balancer’s V2 architecture to launch $LUCY — an automated stable yield option.
Bancor Update — Week of August 8, 2022. Understanding and Navigating Bancor Protocol Analytics Dashboard. BBS Network ($BBS) now provides External Liquidity Protection on Bancor. Trading of Crown ($CROWN) is now live with External Liquidity Protection. Get involved in Bancor DAO at gov.bancor.network
KyberSwap x Polygon Chain Trading Contest has begun. KyberSwap Elastic Vs Uniswap V3: A Comparison. Find out all Kyber proposals here. Check them out on GitHub.
In the Loop: Where Loopring has been, and where they’re heading. Loopring Quarterly Update (Q2/2022). As Loopring L2 continues to get a big influx of new users each week, please be sure to check out their knowledge base for all things Loopring L2.
Introducing Ren 2.0: The team introduced the next iteration of Ren in this emergent multichain world. Ren 2.0 is an open protocol, enabling novel multichain application development with EVM support — leveraging Ren’s robust bridging technology for a new world of opportunities. Ren integrates Kava.
Uniswap routing APIs can now find more routes between v2 and v3 — ensuring that swaps are always taking the most optimal route and finding the best prices. A New Chapter for web3-react: Engineering Lead, Noah Zinsmeister, transfers ownership of GitHub repo, web3-react, to Uniswap Labs. A New Chapter For Web3 React: Twitter Space. The latest Uniswap proposals are here.
The Tiaki Release — Improved Atomic Swaps: the following SIP was implemented: SIP-258: Trade Directionality In Pricing of Atomic Swaps: Improves pricing of Atomic Swaps by integrating directionality into trading. Synthetix Integrates Socket for Easy Bridging: Synthetix works with Socket Tech / Bungee to allow users to quickly bridge assets to and from Optimistic Ethereum. Not only does this allow users to utilize the sUSD bridge to/from Optimism, but it also allows Synthetix to onboard users more efficiently across all of DeFi. 1inch is now fully integrated with Synthetix Atomic Swaps. Synthetix Hits ETH NY.
Tether reported in a blog post that they’re approving of the ETH PoS merge.
And more!

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Total Value Locked in DeFi

$37.7B in DeFi this week, currently at ~ $37.70B, with Maker dominance 18.08%%.

Top DeFi Tokens by Market Capitalization

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

DeFi Aggregators

mStable:

mStable Governance Updates are out.
mStable x Boardroom integation: Boardroom has launched governance support for mStable.
Check out mStable’s latest proposals here.

Yearn Finance:

Subgraphs explained: Yearning for data: Data, based. Subgraphs let devs and users query blockchain data. Read on for more.
Self-Hosting Web3 Services: Censored front end in the streets, decentralized back end in the sheets. A timely reminder on the importance of web3 self-hosting.
How Justin Trudeau helped create the latest Yearn Campaign.

Lending

Aave:

Latest Aave News: Hack at ETHMexico, $OP rewards, The Merge, Retroactive Funding for v3 & more.
Follow the Aave governance forum.
The Aave V3 retroactive funding ARC is live.
The Aave team’s top priority is building a safe & secure system for users. The team integrated TRM’s API on the Aave IPFS frontend, which is why some users may be experiencing trouble accessing the Aave app, one of the frontends to the Aave Protocol. Read for more info.

Compound:

The first deployment of Compound III is a USDC market on Ethereum. The contracts are on mainnet, and can be activated by Compound Governance. The next-generation borrowing protocol is approaching launch.
Compound Proposal 115 ‘Enable Sending ETH from Timelock (Revised)’ has passed successfully.
Compound Developer Community Call — August 10.
Find the latest Compound proposals here.

Gnosis Chain (formerly xDai Chain):

Gnosis Chain Weekly · 12 August 2022:

The Chiado testnet is set to merge today, on Tuesday the 16th ahead of the official Gnosis Chain/GBC merge in September.
GnosisScan is here: The Etherscan team built a new block explorer for Gnosis Chain with its familiar UI and impressive new features.
Gnosis Guild launches the zodiac.wiki
Gnosis Chain team members hosted a workshop at ETHSeoul in Korea.
The GnosisDAO Community Call took place on the 11th of August with updates from CowSwap, Karpatkey, including a GnosisDAO governance summary and a conversation with the Etherscan team.
Cow Protocol gets a makeover

Derivatives, Swaps and Prediction Markets

dYdX:

dYdX free gas vulnerability disclosed, $25k bounty paid.
Tornado Outage: The team was recently made aware of an issue related to Tornado that was causing many wallet addresses to be blocked from accessing the exchange. The team has rectified this and you can read the full announcement here.

UMA:

Hart Lambur on How UMA & Across Protocol Are Positioned For The Multi-Chain Future

Fund Management

Enzyme Finance:

The State of Enzyme’s Tokenomics: Enzyme has revamped its Tokenomics model to drive sustainable growth.
The Enzyme council has voted in favor of a token burn in the amount of 54,669 MLN tokens (worth approx. $1.5M).
Building a Trading Bot on Enzyme — Update
Enzyme Community Call Q3 2022
Enzyme announced a new integration with Goldfinch
Enzyme has now surpassed 3,000+ deposits on the Ethereum deployment, while TVL is up 43% in the past 30 days.
Enzyme monthly roundup.
Check out MFP: Enzyme Funding Proposals here.

Securities, Insurance

Nexus Mutual:

Nexus Mutual to invest $29 million of treasury funds into Maple Finance: DeFi insurance protocol Nexus Mutual wants to earn yield on 10% of its treasury ether (ETH) holdings via an investment in Maple Finance.
Nexus Mutual Newsletter | 10 August 2022

-Hodlnaut halted withdrawals on 8 August

-Celsius halted withdrawals

-Bancor V3 claim filed — Claim 120 open for Claims Assessors to review

The following Snapshot proposals passed last week:

-Nexus Treasury Multi-Sig: Replace Krugman as a Signer with BraveNewDeFi

-Nexus Covered Vaults (Discovery Phase)

-Nexus Hubs V2 Proposal

Community proposals of these weeks.

Liquidity Relays

0x project:

Announcing support for new testnets: Goerli for Ethereum and Mumbai for Polygon: 0x announced full support for two new testnets: Goerli, the proof of authority Ethereum testnest, and Mumbai, the testnet for Polygon. They will support Ropsten testnet until October 25, 2022, as it has already been deprecated by the Ethereum Foundation. Developers should plan to migrate to Goerli by then.
0xpo is now an official event of San Francisco Blockchain Week: Join the team on November 3 in SF for an exciting day of speakers, workshops, and networking with Web3 leaders and pioneers.
Let’s Talk MEV RoundTable.

1inch:

The 1inch Network expands to Klaytn
1inch integrates with Wirex: Under this partnership, the 1inch Aggregation API will be added to Wirex’s non-custodial wallet to power token swaps.
1inch is now fully integrated with Synthetix Atomic Swaps.
1inch DEX aggregator is already available in iMe app.
1inch partners with KuCoin Wallet
The extended gas refund program is now available to yet more users
The 1inch Foundation releases $308,000 to grantees: A new batch of 1inch grants will fund a range of solutions aimed at growing out the 1inch ecosystem and improving user experience.
1inch Monthly Digest: July
Five reasons to use the 1inch Wallet
DeFi Visions: Jordan Spence
DeFi Visions: Francesco Renzi
Living through crypto cycles

Balancer:

How Balancer Saves Users ETH: Through strategic integrations and sidechain expansions, Balancer’s tech helps mitigate ETH transaction fees.
We Are Orb Collective: On a mission to scale global utilization of Balancer Protocol.
The latest Balancer Report is here.
OlympusDAO is debating acquiring Balancer governance power through veBAL and/or Aura.
Powerpool is looking to utilize Balancer’s V2 architecture to launch $LUCY — an automated stable yield option.

Bancor:

Kyber:

KyberSwap x Polygon Chain Trading Contest has begun.
$50,000+ Rewards for LINK Liquidity Providers on Polygon
KyberSwap Elastic Vs Uniswap V3: A Comparison
Find out all Kyber proposals here. Check them out on GitHub.

Loopring:

In the Loop: Where Loopring has been, and where they’re heading.
Loopring Quarterly Update (Q2/2022)
As Loopring L2 continues to get a big influx of new users each week, please be sure to check out their knowledge base for all things Loopring L2.

Uniswap:

Uniswap routing APIs can now find more routes between v2 and v3 — ensuring that swaps are always taking the most optimal route and finding the best prices.
A New Chapter for web3-react: Engineering Lead, Noah Zinsmeister, transfers ownership of GitHub repo, web3-react, to Uniswap Labs.
A New Chapter For Web3 React: Twitter Space.
The latest Uniswap proposals are here.

Payments Networks

Synthetix:

The Tiaki Release — Improved Atomic Swaps: the following SIP was implemented: SIP-258: Trade Directionality In Pricing of Atomic Swaps: Improves pricing of Atomic Swaps by integrating directionality into trading.
Synthetix Integrates Socket for Easy Bridging: Synthetix works with Socket Tech / Bungee to allow users to quickly bridge assets to and from Optimistic Ethereum. Not only does this allow users to utilize the sUSD bridge to/from Optimism, but it also allows Synthetix to onboard users more efficiently across all of DeFi.
1inch is now fully integrated with Synthetix Atomic Swaps.
Synthetix Hits ETH NY.

Privacy protocols for DeFi

Ren protocol:

Introducing Ren 2.0: The team introduced the next iteration of Ren in this emergent multichain world. Ren 2.0 is an open protocol, enabling novel multichain application development with EVM support — leveraging Ren’s robust bridging technology for a new world of opportunities.