DeFi in Ether: $39B in DeFi, Lido on Solana sunset, Uniswap adds 0.15% fee for major token swaps, Synthetix experiments, Aave DAO launches a $1M bug bounty with Immunefi, Gnosis Chain’s TVL doubles, PoolTogether v5 live on Optimism, Reddit community points being sunset, and much more!

Paradigm

Published in

Paradigm

9 min readOct 24, 2023

Biweekly update on the Ethereum DeFi ecosystem vol.78, 10th October — 24th October

TL;DR

$39.1B in DeFi this week.
Lido on Solana sunset: After extensive DAO discussion followed by a community vote, the sunsetting of Lido on Solana was approved by LDO holders and will begin shortly. Post Mortem: Lido on Ethereum Launchnodes Slashing Incident: Launchnodes underwent a slashing event impacting 20 validators operated using the Lido protocol. Lido at 31.74% has reduced again but is still far too close to the 33.3% threshold.
Uniswap Labs adds a 0.15% fee for major token swaps via their UI, with no fee for using the protocol.
Aave DAO launches a $1M bug bounty with Immunefi. The final vote on Events Funding for the Aave Companies & Aave DAO collaboration is underway.
Maker’s annualized revenue rose above $200M at an all-time high.
Gnosis Chain’s total value locked doubles to $150 million after MakerDAO’s Spark Protocol expansion. Gnosis Chain Weekly Recap ia out.
Reddit community points being sunset, due to scalability & regulatory environment.
Kain: Synthetix experiments, deploy to Base, Optimism & Arbitrum with non-SNX collateral, deploy an optimized version of perps to mainnet, and create an SNX chain using OP Stack. SNXweave Weekly Recap 111 is out. Synthetix Quarterly Report — Q3 2023 has been published. A quick explainer on Synthetix V3.
Built On Balancer: Gyroscope has launched a custom Elliptical concentrated liquidity AMM that has facilitated nearly $100 million in swap volume. BAL is now seamlessly connected across Base, Arbitrum, and Ethereum thanks to squid. The governance weekly recap is out.
PoolTogether v5 is live on Optimism, permissionless, enter via deposit in app or swap, and prizes are automatically sent.
Bancor Network Update: August — September 2023. In case you missed it, learn everything you could ever want to know about Bonding Curves in the 4 part series with Mark Richardson. Get involved in Bancor DAO at gov.bancor.network.
Enzyme now supports settlement on 0x Project. This enables Enzyme users to conduct AML-compliant RFQ swaps in a peer-to-peer way whilst facing known institutional-grade counterparties.
Compound Liquidator bot developer guide; New Markets overview. stMATIC (Lido staked MATIC) is live on the USDC • Polygon market in Compound.
The dYdX Chain Testnet has been reset and is ready for testing. dYdX Trading — A Public Benefit Corporation: dYdX Trading has officially updated its charter to become a Public Benefit Corporation. Stay up to date with the latest governance conversations and participate in forum discussions.
Yearn veYFI: ve-style tokenomics.
1inch Monthly Digest: September is out.
Ethereum co-founder Joseph Lubin faces lawsuit over Consensys stock value.
Ferrari accepts ETH & USDC payments for cars in the US.
Ethereum Kuala Lumpur finalists.
And more!

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Statistics 📈

Total Value Locked in DeFi

$39.1B in DeFi this week.

Total Value Locked in Ethereum DeFi

Top DeFi Tokens by Market Capitalization

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

Latest News

0x project

0x is an open protocol that enables the peer-to-peer exchange of assets on the Ethereum blockchain.

0x: Powering Web3’s Most Talented Builders
0x DevTalks: Accessing RFQ Liquidity from 0x Swap API
Enzyme now supports settlement on 0x Project. This enables Enzyme users to conduct AML-compliant RFQ swaps in a peer-to-peer way whilst facing known institutional-grade counterparties.

1inch

1inch is a decentralized exchange aggregator that aims to provide traders with the best price and lowest fees on their transactions.

1inch Monthly Digest: September
Advanced MEV strategies: LP sandwich and reverse LP sandwich attacks: MEV issues often extend beyond trading since liquidity providers (LPs) also encounter both positive and negative impacts from sandwich attacks in liquidity pools.

Aave

Aave is a lending system that allows users to lend, borrow, and earn interest on crypto assets.

Aave DAO launches a $1M bug bounty with Immunefi.
The final vote on Events Funding for the Aave Companies & Aave DAO collaboration is underway.
You can now switch tokens directly on http://app.aave.com
Follow the Aave governance forum.

Balancer

Balancer is a decentralized exchange protocol, automated portfolio manager, liquidity provider, and price sensor that is community-driven.

Built On Balancer — Elliptical Concentrated Liquidity: Gyroscope has launched a custom Elliptical concentrated liquidity AMM that has facilitated nearly $100 million in swap volume.
The Balancer Report: Understanding Smart Contracts
BAL is now seamlessly connected across Base, Arbitrum and Ethereum thanks to squid.
Governance weekly recap is out.

Bancor

Bancor is a blockchain-based platform that acts as software that incentivizes network participants to add crypto funds to liquidity pools.

Bancor Network Update: August — September 2023.
In case you missed it, learn everything you could ever want to know about Bonding Curves in the 4 part series with Mark Richardson.
Get involved in Bancor DAO at gov.bancor.network.

Compound

Compound is an algorithmic, autonomous interest rate protocol built for developers, to unlock a universe of open financial applications.

Compound Liquidator bot developer guide; New Markets overview.
stMATIC (Lido staked MATIC) is live on the USDC • Polygon market in Compound.
Build a Compound Liquidation Bot with Email Alerts powered by Alchemy: Learn how to develop and run your own Compound protocol liquidation bot. The bot code is in JavaScript and leverages Alchemy for JSON RPC, transaction mine webhooks, Autocode.com web services, and Twilio SendGrid for email alerting when a liquidation transaction is mined.

Find the latest Compound proposals here.

dYdX

dYdX is a decentralized exchange hosted on Ethereum that offers perpetual trading options for 36+ cryptocurrencies without KYC identity verification.

The dYdX Chain Testnet has been reset and is ready for testing.
dYdX Trading — A Public Benefit Corporation: dYdX Trading has officially updated its charter to become a Public Benefit Corporation. In addition to all of our work on v4, this further establishes our commitment to aligning with the builders, traders, and stakeholders in the web3 community.
Understanding Front End Safety: Always do your own due diligence before connecting your wallet to a dYdX Chain interface.
Stay up to date with the latest governance conversations and participate in forum discussions.

Enzyme Finance

Enzyme Finance, previously named Melon Protocol, is a protocol built on Ethereum that allows users to create, manage and invest in custom crypto asset management vehicles.

Enzyme now supports settlement on 0x Project. This enables Enzyme users to conduct AML-compliant RFQ swaps in a peer-to-peer way whilst facing known institutional-grade counterparties.
Twitter Space: Incentivising LSD Diversity with Diva and Enzyme.
Check out MFP: Enzyme Funding Proposals here.

Gnosis Chain

Gnosis Chain, formerly xDai Chain, is the associated execution-layer EVM (Ethereum Virtual Machine) chain for stable transactions.

Gnosis Chain’s total value locked doubles to $150 million after MakerDAO’s Spark Protocol expansion
Gnosis Chain Weekly Recap: The DeFi ecosystem is growing fast with Aave v3 soon to launch on Gnosis Chain. Major DeFi protocols have been eager to integrate Gnosis Chain after the introduction of Gnosis Pay, the first Decentralized Payment Network (DPN). If you connect the dots between Gnosis Pay and these major money market protocols, you’ll start to understand why Gnosis Chain’s TVL has skyrocketed over the past two weeks. Gnosis Pay’s first product is Gnosis Card: a self-custodial Visa debit card enabling you to spend your digital assets in the traditional economy using the Gnosis Pay Network.

Kyber

Kyber Network is a multi-chain crypto trading and liquidity hub that connects liquidity from different sources to enable trades at the best rates.

Reducing DeFi Gas Costs: KyberSwap’s Breakthrough
Opinion: The Strength of Solid Algorithms behind Kyber’s Success
A Practical Look At Choosing The Best Fee Tier
Find out all Kyber proposals here. Check them out on GitHub.

Lido

Lido is a liquid staking solution for proof-of-stake cryptocurrencies.

Lido on Solana sunset: After extensive DAO discussion followed by a community vote, the sunsetting of Lido on Solana was approved by LDO holders and will begin shortly.
Post Mortem: Lido on Ethereum Launchnodes Slashing Incident: Launchnodes underwent a slashing event impacting 20 validators operated using the Lido protocol.
Lido at 31.74% has reduced again but is still far too close to 33.3% threshold.

Nexus Mutual

Nexus Mutual is an Ethereum-based platform that creates insurance products with community-driven management and financials.

Nexus Mutual Community Call | 17 October 2023
The latest issue of Nexus Mutual’s The Hedge is out.
Community proposals of these weeks.

Synthetix

Synthetix is a new financial primitive enabling the creation of synthetic assets, offering unique derivatives and exposure to real-world assets on the blockchain.

Kain: Synthetix experiments, deploy to Base, Optimism & Arbitrum with non-SNX collateral, deploy an optimized version of perps to mainnet and create an SNX chain using OP Stack
SNXweave Weekly Recap 111 is out.
Synthetix Quarterly Report — Q3 2023 has been published.
A quick explainer on Synthetix V3.

Uniswap

Uniswap is an automated Ethereum-based decentralized exchange.

Uniswap Labs adds 0.15% fee for major token swaps via their UI, no fee for using protocol.
The team decided to build Uniswap v4 in public, and the response has been overwhelming. With support from UniswapFND, they’ve had incredible hook ideas, implementations, hackathons, Github commits, and more.