DeFi in Ether: $40B in DeFi, ConsenSys collaborates with PayPal, MetaMask integrates with Connext, Gnosis executes its own Merge in shift to PoS, LRC staking is coming to Loopring L2, Enzyme x Kiln, Balancer introduces Holdr AMM, 0x launches Price Impact Protection, Yearn is now on Ledger, SBF was arrested by Bahamian authorities, and much more!

Paradigm

Published in

Paradigm

12 min readDec 20, 2022

Biweekly update on the Ethereum DeFi ecosystem vol.65, 6th December — 20th December

TL;DR

$40B in DeFi this week with MakerDAO dominance 14.97%.
ConsenSys has collaborated with PayPal, aiming to integrate PayPal seamlessly with the MetaMask wallet.
MetaMask has integrated with Connext.
Yearn is now on Ledger. So you can get the best risk-adjusted yields in DeFi, directly from your hardware wallet. st-yCRV depositors have gained 1M yCRV in profit since October.
Price Impact Protection is here: 0x is launching Price Impact Protection to make it easier to protect users from getting rekt by illiquid markets. AMA with 0x Labs: 0x Explorer + Governance.
The 1inch team was gathered in Dubai to prepare the greatest release. 1inch integrated with Commonwealth to use its all-in-one governance platform. The second round of the 1inch Wallet user experience research has come to an end. DeFi Visions: Kirill Arutyunov: In DeFi Visions, a series of video interviews, the 1inch Network talks to the most prominent people in the DeFi space.
Latest Aave News: Beta test with Warden Finance, revamped Gauntlet renewal Snapshot, Chainlink proof of reserve for Avalanche, liquidity mining on the Polygon V3 pool, vote to retain aCRV and more. Follow the Aave governance forum. Llama hosted a Twitter Space that summarized their work in the Aave ecosystem over November.
Meet Holdr: Balancer introduces Holdr, the next-generation AMM built on Balancer, pushing the capabilities of the Balancer’s technology to its full extent. The latest Balancer Report is here. Learn more about the Balancer ecosystem with Balancer 25 days of builders. This week: CoW Swap, AuraFinance, Sense Finance and Element Finance. Balancer advisor Beth Haddock talks token-based gov with the “The Defiant” & Samuel Haig. Read the full post here. Beethoven X announces a new weighted pool with the magic of Balancer auto-rebalancing tech. ‘Token Value Capture: Moats, Growth and Protocol Fees: Chris Burniske and Fernando Martinelli’.
Compound DAO was sued by plaintiffs who held only $100 in COMP tokens. Compound Proposals 138 ‘Reserve Maintenance’ and 139 ‘OpenZeppelin Security Partnership — 2023 Q1 Compensation’ have passed successfully. Proposal 140 ‘Risk Parameter Updates for USDC Comet Market’ has been queued. Find the latest Compound proposals here.
Gnosis Chain Weekly · 16 December 2022: Just hours after the Gnosis Merge last week on December 8th, 2022 Gnosis Chain went from being secured by 20 entities ever producing blocks on the legacy Proof-of-Authority consensus to over 200 validators participating in the new Proof-of-Stake consensus. According to Dune Analytics, more than 111K validators are participating in consensus on Gnosis Chain. The GnosisDAO and MakerDAO announced a strategic alliance. Check out the November report about Gnosis Chain from the Gnosis Builders team. Pocket & Gnosis: From 2021 to the Recent Gnosis Merge. Subscribe to the Merge Newsletter for the most up-to-date information on how to prepare for the Gnosis Chian merge.
LRC staking is officially coming to Loopring L2. Learn how to maximize the security in your Loopring Smart Wallet by adding 2-factor-authentication (2FA). 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.
Synthetix Elections — Nominations began on December 17th: Nominations for the next epoch’s Synthetix Councils (Spartan, Grants, Treasury, and Ambassador Council) will open later this week, Dec 17th! The epoch lasts 4 months, from Jan 1st (extended from 3 months after SIP 287). SNXweave Weekly Recap 69. Dec 22/23: Synthetix Community Governance Call: The next Synthetix community governance call is scheduled for December 22nd at 9 PM UTC.
The Uniswap team has been busy shipping new stuff lately. Here is the thread with the answers to some of the community’s most popular questions. Twitter Spaces: Uniswap Labs x Worldwide Webb, Uniswap Labs x Froggy Friends. The latest Uniswap proposals are here.
A new publication in the Bancor blog: ‘What we all got wrong about calculating Impermanent Loss’. Get involved in Bancor DAO at gov.bancor.network. A proposal in Bancor governance to rescue protocol-owned renBTC. A thread on the recently announced Carbon.
Native ETH staking with Kiln is now available on Enzyme: This integration gives asset managers (with a minimum of 32 ETH) a human-readable way to access Kiln’s enterprise-grade ETH staking, to earn up to 15% APR rewards. On Wednesday 21st December at 4 pm GMT, the team will be hosting the Q4 Enzyme Community Call. Check out MFP: Enzyme Funding Proposals here.
Post Mortem: Past KyberSwap Frontend Exploit (Sept 2022). Betswap is diversifying its Treasury & deepening liquidity for BSGG token with KyberSwap. Find out all Kyber proposals here. Check them out on GitHub.
Over the last week, Hodlnaut claims were filed & reviewed by claims assessors. Members have approved 18 claims & paid out more than $1.04m (221 ETH + 764,008 DAI) to people affected by halted withdrawals on Hodlnaut. Read the claims overview. Independent review of Nexus tokenomics, premiums, and capital pool management: Member Ronan McGovern has posted a proposal on the Nexus Mutual governance forum to gauge members’ interest in a concise independent review of capital pool management, pricing, and tokenomics. Community proposals of these weeks. Nexus Mutual Newsletter: 15 December 2022.
Reminder that Ren assets need to be bridged back to the respective native chains ASAP. The Ren 1.0 network is likely to imminently shut down, and any remaining assets are at risk of being lost.
Sense Finance announced its own integration with Idle Finance.
SBF was arrested by Bahamian authorities and served a lawsuit by the CFTC.
A US Judge in the Ooki DAO trial ordered the CFTC to serve its original founders with the lawsuit.
Vitalik’s EOF proposal to ban code introspection: automate code conversion to the latest EVM version and make adding EVM features easier.
Crypto 2023: After FTX: What’s Next?
And more!

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Statistics 📈

Total Value Locked in DeFi

$40B in DeFi this week with MakerDAO dominance 14.97%.

Total Value Locked (USD): $39.65B
Change (24h): -0.14%
MakerDAO Dominance: 14.97%

Total Value Locked in Ethereum DeFi

Total Value Locked (USD): $23.13B
Change (24h): 0.02%
MakerDAO Dominance: 25.66%

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.

Price Impact Protection is here. Don’t get rekt: 0x is launching Price Impact Protection to make it easier to protect users from getting rekt by illiquid markets.
AMA with 0x Labs: 0x Explorer + Governance.

1inch

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

The 1inch team was gathered in Dubai to prepare the greatest release.
1inch integrated with Commonwealth to use its all-in-one governance platform.
The second round of the 1inch Wallet user experience research has come to an end.
DeFi Visions: Kirill Arutyunov: In DeFi Visions, a series of video interviews, the 1inch Network talks to the most prominent people in the DeFi space.
DeFi Visions: Alex Shevchenko
Crypto airdrops: risks and opportunities

Aave

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

Latest Aave News: Beta test with Warden Finance, revamped Gauntlet renewal Snapshot, Chainlink proof of reserve for Avalanche, liquidity mining on the Polygon V3 pool, vote to retain aCRV and more.
After one of the closest Snapshot votes in recent memory, the community signaled to maintain Aave DAO’s aCRV holding and payoff the bad debt by purchasing the entire amount of CRV with USDC.
Gauntlet shared an updated renewal proposal incorporating community feedback including moving from a variable to a fixed pricing model. The proposal is currently live for voting on Snapshot. At the time of writing, the vote is looking on track to pass with 99.99% of the 504k votes in favour.
Voting is also live on Snapshot to authorise the release of the Chainlink Proof of Reserve for Aave Avalanche. Read more about the proposal from bgdlabs.
Since the AIP passed to set LDO, stMATIC and SD the Emission_Admin role, the foundation is set for a wave of liquidity mining to start on the Polygon V3 Pool. Lido, Stader and Polygon are now able to distribute rewards to encourage recursive staking strategies using stMATIC, MaticX and MATIC respectively.
The other AIP that passed this week increases the yield optimization on the ETH Interest rate on Etheruem V2. Read more about recent governance activity in the Governance section and follow Boardroom’s updates in the forum.
Llama hosted a Twitter Space that summarized their work in the Aave ecosystem over November.
Follow the Aave governance forum.

Balancer

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

Meet Holdr: Balancer introduces Holdr, the next-generation AMM built on Balancer, pushing the capabilities of the Balancer’s technology to its full extent.
The latest Balancer Report is here.
Learn more about the Balancer ecosystem with Balancer 25 days of builders. This week: CoW Swap, AuraFinance, Sense Finance and Element Finance.
Balancer advisor Beth Haddock talks token-based gov with the “The Defiant” & Samuel Haig. Read the full post here.
Beethoven X announces a new weighted pool with the magic of Balancer auto-rebalancing tech.
Token Value Capture: Moats, Growth and Protocol Fees: Chris Burniske and Fernando Martinelli.

Bancor

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

A new publication in the Bancor blog: ‘What we all got wrong about calculating Impermanent Loss’.
Get involved in Bancor DAO at gov.bancor.network
A proposal in Bancor governance to rescue protocol-owned renBTC.
A thread on the recently announced Carbon.

Compound

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

Compound DAO was sued by plaintiffs who held only $100 in $COMP tokens.
Compound Proposals 138 ‘Reserve Maintenance’ and 139 ‘OpenZeppelin Security Partnership — 2023 Q1 Compensation ’ have passed successfully.
Proposal 140 ‘Risk Parameter Updates for USDC Comet Market ’ has been queued.
Find the latest Compound proposals here.

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.

Native ETH staking with Kiln is now available on Enzyme: This integration gives asset managers (with a minimum of 32 ETH) a human-readable way to access Kiln’s enterprise-grade ETH staking, to earn up to 15% APR rewards.
On Wednesday 21st December at 4 pm GMT, the team will be hosting the Q4 Enzyme Community Call.
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 Weekly · 16 December 2022: Just hours after the Gnosis Merge last week on December 8th, 2022 Gnosis Chain went from being secured by 20 entities ever producing blocks on the legacy Proof-of-Authority consensus to over 200 validators participating in the new Proof-of-Stake consensus. According to Dune Analytics, more than 111K validators are participating in consensus on Gnosis Chain. That number is second only to Ethereum.
The GnosisDAO and MakerDAO announced a strategic alliance.
Check out the November report about Gnosis Chain from the Gnosis Builders team.
Gnosis Guild x MIT Computational Law Report
Pocket & Gnosis: From 2021 to the Recent Gnosis Merge
Subscribe to the Merge Newsletter for the most up-to-date information on how to prepare for the Gnosis Chian merge.

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.

Post Mortem: Past KyberSwap Frontend Exploit (Sept 2022).
Betswap is diversifying its Treasury & deepening liquidity for BSGG token with KyberSwap.
Find out all Kyber proposals here. Check them out on GitHub.

Loopring

Loopring is a zkRollup layer2. It allows for high-throughput, low-cost trading and payment on Ethereum.

LRC Staking is officially coming to Loopring L2.
Learn how to maximize the security in your Loopring Smart Wallet by adding 2-factor-authentication (2FA)
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.

Nexus Mutual

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

Over the last week, Hodlnaut claims were filed & reviewed by claims assessors. Members have approved 18 claims & paid out more than $1.04m (221 ETH + 764,008 DAI) to people affected by halted withdrawals on Hodlnaut. Read the claims overview.
Independent review of Nexus tokenomics, premiums, and capital pool management: Member Ronan McGovern has posted a proposal on the Nexus Mutual governance forum to gauge members’ interest in a concise independent review of capital pool management, pricing, and tokenomics.
Community proposals of these weeks.
Nexus Mutual Newsletter | 15 December 2022.

Ren protocol

Ren is an open and community-driven protocol that enables the movement of assets between blockchains.

Reminder that Ren assets need to be bridged back to the respective native chains ASAP. The Ren 1.0 network is likely to imminently shut down, and any remaining assets are at risk of being lost.

Synthetix

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

Synthetix Elections — Nominations began on December 17th: Nominations for the next epoch’s Synthetix Councils (Spartan, Grants, Treasury, and Ambassador Council) will open later this week, Dec 17th! The epoch lasts 4 months, from Jan 1st (extended from 3 months after SIP 287).
SNXweave Weekly Recap 69.
Dec 22/23: Synthetix Community Governance Call: The next Synthetix community governance call is scheduled for December 22nd at 9PM UTC.

Uniswap

Uniswap is an automated Ethereum-based decentralized exchange.

The Uniswap team has been busy shipping new stuff lately. Here is the thread with the answers to some of the community’s most popular questions.
Twitter Space: Uniswap Labs x Worldwide Webb.
Twitter Space: Uniswap Labs x Froggy Friends.
The latest Uniswap proposals are here.

Yearn Finance

Yearn Finance is an open-source DeFi lending protocol based on the Ethereum blockchain.

Yearn is now on Ledger. So you can get the best risk-adjusted yields in DeFi, directly from your hardware wallet.
st-yCRV depositors have gained 1M yCRV in profit since October.