DeFi in Ether: $45B in DeFi, The Nexus Mutual V2 release in February, Yearn will let anyone create Curve reward farms, KNC staking and KyberDAO voting now live on KyberSwap, 0x Year in Review, 1inch at the WEF Annual Meeting, Loopring quarterly update, Synthetix quarterly report , and much more!

Paradigm

Published in

Paradigm

13 min readJan 17, 2023

Biweekly update on the Ethereum DeFi ecosystem vol.66, 3rd January — 17th January

TL;DR

$45B in DeFi this week with Lido dominance 17.11%.
Latest Aave News: Initial Ethereum V3 assets, AGD renewal, Chaos covering V2, new Stani pods & more. Voting is currently live for which of two proposals should be selected and followed to onboard asset to the initial Aave V3 market on Ethereum. Read more about both proposals, one from Chaos Labs and one from Gauntlet in the governance forum. The AIP for Chaos Labs partnership to cover V2 markets received unanimous support. The Snapshot vote for the fourth Aave Grants DAO (AGD) renewal proposal wrapped up earlier this week with 99.99% of the 527K AAVE votes in favour. Listen to the Llama <> Aave 3 Month Update Spaces. Follow the Aave governance forum. Stani Kulechov — Aave’s Past, Present, and Future.
0x Year in Review: 2022: A special edition of the 0x Ecosystem Update, with highlights, integrations, network insights, and news from the past year. THORSwap is now featured on 0x Explorer.
Yearn Finance is planning to let anyone create Curve reward farms. Yearn Strategies Case Study: Lido Staked ETH.
1inch at the World Economic Forum Annual Meeting: At one of the main global economic events, 1inch will host a meetup, Institutions and DeFi in 2023, followed by a party. 1inch partners with Beefy: The partnership will enable users to easily get into and out of Beefy vaults with any tokens. DeFi Visions: Fredrik Haga: In DeFi Visions, a series of video interviews, the 1inch Network talks to the most prominent people in the DeFi space. 1inch Weekly Recap #48.
The latest Balancer Report is here. Some pool fees were set to 0 to mitigate an issue. For a small number of pools the issue couldn’t be mitigated by the emergency DAO and it was therefore suggested that LPs remove liquidity from them asap, here is the full list. About 24h later 85% of the funds at risk were safely withdrawn from the pools. Karpatkey details their latest yield-generating proposal. BeethovenX explores Lido’s stETH pool. Do you want to know what happened in the sixth wave of Grants? Don’t miss this report. DeFi Tweets Ep2: Professional DAO Delegation w/ Stablenode. The State of Balancer report by Messari.
The recent Bancor’s Twitter Spaces The Profitability of AMM LPs is now up on YouTube. Carbon vs. Constant Product vs. HODL. Get involved in Bancor DAO at gov.bancor.network.
Compound Proposals 141 ‘Risk Parameter Updates for 5 Collateral Assets’ and 143 ‘Compound UAV v3 Upgrade’ have passed successfully. Proposal 142 ‘Risk Parameter Updates for 2 Assets on USDC Comet Market’ failed. Find the latest Compound proposals here.
Enzyme: On-chain Asset Management: A new report from Messari highlights the rise of On-Chain Asset Management and the growing popularity of protocols like Enzyme. Check out MFP: Enzyme Funding Proposals here. Will 2023 Be the Year of DeFi? + SBF Latest with Mona El Lisa.
Gnosis Chain Weekly · 13 January 2023: Internally, the core dev team is working on improving documentation and creating official protocol specs. Gnosis organization development plan for Q1 2023 includes building momentum with a clear vision and roadmap, building basic team practices, and knowledge management with Notion as a team wiki with a public-by-default approach. More on what to look out for from Stefan George, Gnosis co-founder and GnosisDAO core contributor. Privacy and resiliency will be major themes this year with a Shutterized Beacon Chain bringing a base layer solution. Subscribe to the Merge Newsletter for the most up-to-date information.
Loopring Quarterly Update (Q4/2022): This is the fourth and final edition of the 2022 Loopring Quarterly Updates. Loopring Wallet Upgrade Giveaway: To celebrate the new year, the team is offering qualified Loopers the chance to activate their Loopring Wallet Ethereum L1 accounts for free. 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.
KyberSwap December Product Update is out. KNC staking and KyberDAO voting are now live on KyberSwap. KyberSwap Trading Grant Campaign with 10000 KNC prizes. Find out all Kyber proposals here. Check them out on GitHub.
Coinbase cb.id ENS names: claimable via their mobile wallet or extension.
Lens Protocol is implementing a feature where content creators can gate content based on token holdings.
mStable has open-sourced its frontend repository. Check out mStable’s latest proposals here.
Nexus Mutual Newsletter | 12 January 2023: Nexus Mutual V2 is just around the corner. The upgraded version of the protocol brings improvements to the cover, staking, and claims experience. The Nexus Mutual V2 rollout will begin in the first week of February. FTX claims: verifying loss amounts ahead of claims filing on 6 February. Community proposals of these weeks.
Synthetix Quarterly Report — Q4 2022 has been published. SNXweave Weekly Recap 71 is out. Keep in mind, Synthetix Perps V2 is live.
Arrakis — Trustless Market-Making Strategies on Uniswap v3: Arrakis Finance makes it easy for anyone to engage in automated market-making strategies that have historically been reserved for more sophisticated market participants. Learn how Arrakis uses Uniswap v3 to make AMM strategies more accessible. The team at DEX screener added the Uniswap Swap Widget to their web app and did $1.2M in volume in just one week. Twitter Space: Uniswap x Nifty Island. Recently, Uniswap launched an NFT aggregator to help you find the lowest prices across the most popular marketplaces.
Chai.money back online to accrue the DSR on your Dai (currently 1%).
Ondo to tokenize 3 different ETFs of US treasuries/bonds and will fork Compound for its security tokens.
Revamped Gitcoin Grants alpha round launches next week with open source, Eth infra and climate solutions matching pools.
Exactly Protocol has raised $2M in funding and launched on the Ethereum mainnet.
The CFTC charged the Mango Markets hacker with fraud.
The SEC has charged Gemini and Genisis for unregistered securities offerings.
The US Department of Justice is probing Saber Labs Founders over Solana-based projects.
ConsenSys is to lay off upwards of 100 staff.
And more!

Subscribe to ‘Defi in Ether’ newsletter 📩

Read us on Paradigm Platform, Twitter, Telegram, Telegram Chat, LinkedIn, and Reddit.

Statistics 📈

Total Value Locked in DeFi

$45B in DeFi this week with Lido dominance 17.11%.

Total Value Locked (USD) $44.79b
Change (24h) 0.29%
Lido Dominance 17.11%

Total Value Locked in Ethereum DeFi

Total Value Locked (USD) $26.9b
Change (24h) 0.58%
Lido Dominance 28.23%

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 Year in Review: 2022: A special edition of the 0x Ecosystem Update, with highlights, integrations, network insights, and news from the past year.
THORSwap is now featured on 0x Explorer.

1inch

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

1inch at the World Economic Forum Annual Meeting: At one of the main global economic events, 1inch will host a meetup, Institutions and DeFi in 2023, followed by a party.
1inch partners with Beefy: The partnership will enable users to easily get into and out of Beefy vaults with any tokens.
DeFi Visions: Fredrik Haga: In DeFi Visions, a series of video interviews, the 1inch Network talks to the most prominent people in the DeFi space.
1inch Weekly Recap #48.

Aave

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

Latest Aave News: Initial Ethereum V3 assets, AGD renewal, Chaos covering V2, new Stani pods & more.
Aave Ethereum V3 Initial Assets: Voting is currently live for which of two proposals should be selected and followed to onboard asset to the initial Aave V3 market on Ethereum. Read more about both proposals, one from Chaos Labs and one from Gauntlet in the governance forum. Boardroom also provides an overview.
The AIP for Chaos Labs partnership to cover V2 markets received unanimous support. Read more about ongoing proposal in Governance.
The Snapshot vote for the fourth Aave Grants DAO (AGD) renewal proposal wrapped up earlier this week with 99.99% of the 527K AAVE votes in favour. This proposal allows AGD to continue driving development, attracting the best contributors, and ensuring Aave’s long-term growth by funding talented builders and cultivating Aave’s culture. Read the full post on the governance forum for more details.
Listen to the Llama <> Aave 3 Month Update Spaces where they covered their recent work within Aave including that they will be helping write the payload for the Aave Grants Renewal AIP and a change to which stable coins will be included in the proposal.
Follow the Aave governance forum.
Stani Kulechov — Aave’s Past, Present, and Future.

Balancer

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

The latest Balancer Report is here.
Some pool fees were set to 0 to mitigate an issue.
For a small number of pools the issue couldn’t be mitigated by the emergency DAO and it was therefore suggested that LPs remove liquidity from them asap, here is the full list. About 24h later 85% of the funds at risk were safely withdrawn from the pools.
Karpatkey details their latest yield-generating proposal.
BeethovenX explores Lido’s stETH pool.
Do you want to know what happened in the sixth wave of Grants? Don’t miss this report.
DeFi Tweets Ep2: Professional DAO Delegation w/ Stablenode.
The State of Balancer report by Messari.

Bancor

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

The recent Bancor’s Twitter Spaces The Profitability of AMM LPs is now up on YouTube.
Carbon vs. Constant Product vs. HODL.
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 Proposals 141 ‘Risk Parameter Updates for 5 Collateral Assets’ and 143 ‘Compound UAV v3 Upgrade ’ have passed successfully.
Proposal 142 ‘Risk Parameter Updates for 2 Assets on USDC Comet Market’ failed.
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.

CREW³ | The #1 operating system for web3 communities: Contribute to your favorite web3 communities and earn tokens, NFTs and other amazing rewards.
dYdX Merch | The official shop for all things dYdX and Hedgies.

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: On-chain Asset Management: A new report from Messari highlights the rise of On-Chain Asset Management and the growing popularity of protocols like Enzyme.
Check out MFP: Enzyme Funding Proposals here.
Will 2023 Be the Year of DeFi? + SBF Latest with Mona El Lisa.

Gnosis Chain

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

Gnosis Chain Weekly · 13 January 2023:
Internally, the core dev team is working on improving documentation and creating official protocol specs.
Gnosis organization development plan for Q1 2023 includes building momentum with a clear vision and roadmap, building basic team practices, and knowledge management with Notion as a team wiki with a public-by-default approach. These plans will help them create a decentralized ecosystem, improve collaboration and productivity.
More on what to look out for from Stefan George, Gnosis co-founder and GnosisDAO core contributor.
Privacy and resiliency will be major themes this year with a Shutterized Beacon Chain bringing a base layer solution.
Subscribe to the Merge Newsletter for the most up-to-date information.

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.

KyberSwap December Product Update is out.
KNC staking and KyberDAO voting now live on KyberSwap.
KyberSwap Trading Grant Campaign with 10000 KNC prizes.
What is Impermanent Loss (IL) and How to Minimize It?
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.

Loopring Quarterly Update (Q4/2022): This is the fourth and final edition of the 2022 Loopring Quarterly Updates.
Loopring Wallet Upgrade Giveaway: To celebrate the new year, the team is offering qualified Loopers the chance to activate their Loopring Wallet Ethereum L1 accounts for free.
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.

mStable

mStable is a protocol that enables stablecoin swaps, yield generation, and over-collateralized lending.

mStable has open-sourced its frontend repository.
Check out mStable’s latest proposals here.

Nexus Mutual

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

Nexus Mutual Newsletter | 12 January 2023: Nexus Mutual V2 is just around the corner. The upgraded version of the protocol brings improvements to the cover, staking, and claims experience. The Nexus Mutual V2 rollout will begin in the first week of February.
Community proposals of these weeks.
FTX claims: verifying loss amounts ahead of claims filing on 6 February.

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.

Synthetix Quarterly Report — Q4 2022 has been published.
SNXweave Weekly Recap 71 is out.
Synthetix Perps V2 is live.

Uniswap

Uniswap is an automated Ethereum-based decentralized exchange.

Arrakis — Trustless Market-Making Strategies on Uniswap v3: Arrakis Finance makes it easy for anyone to engage in automated market-making strategies that have historically been reserved for more sophisticated market participants. Learn how Arrakis uses Uniswap v3 to make AMM strategies more accessible.
The team at DEX screener added the Uniswap Swap Widget to their web app and did $1.2M in volume in just one week.
Twitter Space: Uniswap x Nifty Island.
Recently, Uniswap launched an NFT aggregator to help you find the lowest prices across the most popular marketplaces.
The latest Uniswap proposals are here.

Yearn Finance

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

Yearn Finance is planning to let anyone create Curve reward farms.
Yearn Strategies Case Study: Lido Staked ETH.

More updates

Coinbase cb.id ENS names: claimable via their mobile wallet or extension.
Lens Protocol is implementing a feature where content creators can gate content based on token holdings.
chai.money back online to accrue the DSR on your Dai (currently 1%).
Ondo to tokenize 3 different ETFs of US treasuries/bonds and will fork Compound for its security tokens.
Revamped Gitcoin Grants alpha round launches next week with open source, Eth infra and climate solutions matching pools.
Exactly Protocol has raised $2M in funding and launched on the Ethereum mainnet.
ConsenSys is to lay off upwards of 100 staff.