DeFi in Ether: $46B in DeFi, Aave deploys native stablecoin GHO on Ethereum testnet, Compound III ETH Market is live, Lido contributors presented Lido V2, Synthetix has launched 22 new perps markets, Uniswap DAO has completed the vote for its proposed BNB deployment, SEC targets crypto ‘staking’ with Kraken crackdown, and much more!

Paradigm

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Paradigm

12 min readFeb 14, 2023

Biweekly update on the Ethereum DeFi ecosystem vol.68, 31st January — 14th February

TL;DR

$46B in DeFi this week with Lido dominance 16.60%.
MakerDAO has integrated Chainlink, a blockchain data provider, into its platform.
Latest Aave News: Aave’s native, decentralized, multi-collateral stablecoin, GHO has launched on testnet. Newly launched Aave Radio covered GHO in their first episode. All Aave Grants recipients awarded from October to January are now eligible to mint the official AGD grantee NFT credential. Maker announced Spark on top of an Aave v3 fork and shared a proposal for a profit split with the Aave DAO Aave is to distribute Lido staking rewards on the Arbitrum and Optimism chains. Follow the Aave governance forum.
Lido contributors presented Lido V2 — Lido’s largest upgrade to date and an important step towards further decentralization. Lido has proposed “Turbo” and “Bunker” modes for post-shanghai Ethereum withdrawals.
Compound III ETH Market is live, and offers the most streamlined & efficient ETH borrowing experience in DeFi for stETH and cbETH collateral. Users can borrow up to 90% collateral value of stETH and cbETH. Compound Proposals 146 ‘Increase cbETH Supply Cap in cWETHv3’ and 147 ‘Risk Parameter Updates for 3 Compound V2 Assets’ have passed successfully. Proposal 148 ‘Initialize ENS subdomain for official Comet deployments’ failed. Find the latest Compound proposals here.
Gnosis Chain Weekly · 10 February 2023. The Gnosis Builders published a review of their efforts throughout 2022. Erigon announces exclusive support for Gnosis Chain & Ethereum. The Gnosis DAOcast launched another episode this week with Fileverse. Privacy-focused Unstoppable Wallet integrated Gnosis Chain this week. Staking options just got easier with Chorus One integrating Gnosis Chain. Subscribe to the Merge Newsletter for the most up-to-date information.
Synthetix has launched 22 new perps markets. SNXweave Weekly Recap 75: A recap of news, projects, and important updates from the Spartan Council and Core Contributors, as well as the Grants Council and Ambassador Council from last week. The Eltanin Release took place. Synthetix supported tBTC launch as a tBTC minter.
Uniswap DAO has completed the vote for its proposed BNB deployment. The community has voted to launch Uniswap v3 on Boba Network. Uniswap’s next round of Wishlist Grants is open for proposals until February 20th. Twitter Space: NFTuesday with Melt_dem. The latest Uniswap proposals are here.
The latest Balancer Report is here. Balancer LBPs and the Akita Inu Saga. The non-critical issue first announced on Jan 6 is now fully mitigated. The vulnerability, which was never exploited, involved “a previously noted… reentrancy issue” that it was possible to use to manipulate token prices within certain nested pools.
It is important to note that the majority of pools were unaffected. You could find a more detailed technical overview here Xeonus’s Balancer Analytics page is now in its beta phase. Tim Balabuch came through with a thread highlighting Balancer’s liquid staking wins featuring wstETH, rETH and sftxETH. Aura Finance explores Balancer’s revolutionary V2 mechanics.
Yearn is bringing its liquid wrapping strategies to Balancer.
1inch Monthly Digest: January: The 1inch Network presented you with the January digest of major news and updates. 1inch partners with Burrito Wallet: The partnership comes as an important step in 1inch’s strategy of conquering the Asian market. 1IP-14 snapshot vote is now live: The proposal seeks to modify the 1inch DAO governance process to allow st1INCH(v2) holders to vote on 1inch DAO Snapshot proposals. Fun ways of earning crypto: play, learn and other x-to-earn models.
Web-dev chads, it’s time to tap in. The 0x Protocol community website job is up for grabs. Learn more and apply. sPMM v2 is now integrated with 0x. This means Mmatcha is now routing orders through WOOFi across all 6 of its chains.
KyberSwap January Product Update is out: Improved adding liquidity function on KyberSwap Elastic. ElkDEX has integrated Kyber Network’s aggregator API. Mean finance & KyberSwap have partnered up. Find out all Kyber proposals here. Check them out on GitHub.
Bancor Update — Week of Feb 5, 2023: It’s been approximately a month and a half since the last update, and there has been an amazing amount of progress made on Carbon since then. The most recent development updates were shared on the Carbon Milestones and Beta Launch Update January 30th Community Call with a summary posted to governance following the call. Get involved in Bancor DAO at gov.bancor.network.
Enzyme adds Balancer to its DeFi operating system: With this integration, asset managers on both our Ethereum and Polygon deployments will have access to a number of attractive Balancer Pools. Win Rewards with the Enzyme Referral Program. This initiative gives Enzyme users the opportunity to win up to $1,000 in MLN tokens per month, but only for a limited time. Check out MFP: Enzyme Funding Proposals here.
Community Ambassadors + Builders Initiative: Winners + Update: In December 2022, Loopring announced the new initiative, with the intention of recognizing and rewarding those who contribute to the growth of the Loopring L2 ecosystem. Now they expand upon this by making this initiative an entry point and path to potentially acquiring a part-time or full-time position on the Loopring team or within the Loopring ecosystem. 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.
dYdX 2022 Ecosystem Annual Report. dYdX saw $1,176,000,000 in 24-hour trade volume and 453,000 trades yesterday. The Genesis Collection: Unleash your trading potential with high-quality apparel, hats, and accessories from dYdX.
The Hedge | 10 February 2023: Brought to you by the Nexus Mutual DAO. Since the last newsletter, we’ve seen a major protocol upgrade, three claims filing announcements, FTX claim payments, and increased activity on the governance forum. Stage 1 of the Nexus Mutual rollout was completed, which enabled partial claims functionality ahead of FTX, BlockFi, and Gemini Earn claims filing. On Monday (6 Feb), FTX International claims filing began. Today, BlockFi and FTX US claims can now be filed. Nexus Mutual Community Call | 7 February 2023: video. Community proposals of these weeks.
Coinbase’s CEO, Brian Armstrong, has suggested that the SEC should ban staking.
Kraken has agreed to shutter its US staking operations to settle its SEC charges. Reportedly, the SEC did not consult the industry before charging Kraken.
A CoW Swap hacker exploited 550 $BNB with a solver exploit.
ENS DAO has voted to sell $16.5M worth of $ETH for $USDC.
And more!

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Statistics 📈

Total Value Locked in DeFi

$46B in DeFi this week with Lido dominance 16.60%.

Total Value Locked (USD): $46.17b
Change (24h): -2.51%
Lido Dominance: 16.60%

Total Value Locked in Ethereum DeFi

Total Value Locked (USD): $27.39b
Change (24h): -2.42%
Lido Dominance: 27.75%

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.

Web-dev chads, it’s time to tap in. The 0x Protocol community website job is up for grabs. Learn more and apply.
sPMM v2 is now integrated with 0x. This means Mmatcha is now routing orders through WOOFi across all 6 of its chains.

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: January: The 1inch Network is happy to present you with the January digest of major news and updates.
1inch partners with Burrito Wallet: The partnership comes as an important step in 1inch’s strategy of conquering the Asian market.
Fun ways of earning crypto: play, learn and other x-to-earn models.
1IP-14 snapshot vote is now live: The proposal seeks to modify the 1inch DAO governance process to allow st1INCH(v2) holders to vote on 1inch DAO Snapshot proposals.

Aave

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

Latest Aave News: Aave’s native, decentralized, multi-collateral stablecoin, GHO has launched on testnet. Newly launched Aave Radio covered GHO in their first episode.
All Aave Grants recipients awarded from October to January are now eligible to mint the official AGD grantee NFT credential.
Maker announced Spark on top of an Aave v3 fork and shared a proposal for a profit split with the Aave DAO
Aave is to distribute Lido staking rewards on the Arbitrum and Optimism chains.
Follow the Aave governance forum.

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.
Balancer LBPs and the Akita Inu Saga.
The non-critical issue first announced on Jan 6 is now fully mitigated. The vulnerability, which was never exploited, involved “a previously noted… reentrancy issue” that it was possible to use to manipulate token prices within certain nested pools.
It is important to note that the majority of pools were unaffected. You could find a more detailed technical overview here
Xeonus’s Balancer Analytics page is now in its beta phase.
Tim Balabuch came through with a thread highlighting Balancer’s liquid staking wins featuring wstETH, rETH and sftxETH.
Aura Finance explores Balancer’s revolutionary V2 mechanics.

Bancor

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

Bancor Update — Week of Feb 5, 2023: It’s been approximately a month and a half since the last update, and there has been an amazing amount of progress made on Carbon since then. The most recent development updates were shared on the Carbon Milestones and Beta Launch Update January 30th Community Call with a summary posted to governance following the callю
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 III ETH Market is live, and offers the most streamlined & efficient ETH borrowing experience in DeFi for stETH and cbETH collateral. Users can borrow up to 90% collateral value of stETH and cbETH.
Compound Proposals 146 ‘Increase cbETH Supply Cap in cWETHv3’ and 147 ‘Risk Parameter Updates for 3 Compound V2 Assets ’ have passed successfully.
Proposal 148 ‘Initialize ENS subdomain for official Comet deployments’ 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.

dYdX 2022 Ecosystem Annual Report.
dYdX saw $1,176,000,000 in 24-hour trade volume and 453,000 trades yesterday.
The Genesis Collection: Unleash your trading potential with high-quality apparel, hats, and accessories from dYdX.

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 adds Balancer to its DeFi operating system: With this integration, asset managers on both our Ethereum and Polygon deployments will have access to a number of attractive Balancer Pools.
Win Rewards with the Enzyme Referral Program. This initiative gives Enzyme users the opportunity to win up to $1,000 in MLN tokens per month, but only for a limited time.
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 · 10 February 2023.
The Gnosis Builders published a review of their efforts throughout 2022.
Erigon announces exclusive support for Gnosis Chain & Ethereum.
The Gnosis DAOcast launched another episode this week with Fileverse.
Privacy-focused Unstoppable Wallet integrated Gnosis Chain this week.
Staking options just got easier with Chorus One integrating Gnosis Chain.
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 January Product Update is out: Improved adding liquidity function on KyberSwap Elastic.
ElkDEX has integrated Kyber Network’s aggregator API.
Mean finance & KyberSwap have partnered up.
Find out all Kyber proposals here. Check them out on GitHub.

Lido

Lido has proposed “Turbo” and “Bunker” modes for post-shanghai Ethereum withdrawals.
Lido contributors presented Lido V2 — Lido’s largest upgrade to date and an important step towards further decentralization.

Loopring

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

Community Ambassadors + Builders Initiative: Winners + Update: In December 2022, Loopring announced the new initiative, with the intention of recognizing and rewarding those who contribute to the growth of the Loopring L2 ecosystem. Now they expand upon this by making this initiative an entry point and path to potentially acquiring a part-time or full-time position on the Loopring team or within the Loopring ecosystem.
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.

The Hedge | 10 February 2023: Brought to you by the Nexus Mutual DAO. Since the last newsletter, we’ve seen a major protocol upgrade, three claims filing announcements, FTX claim payments, and increased activity on the governance forum.
Stage 1 of the Nexus Mutual rollout was completed, which enabled partial claims functionality ahead of FTX, BlockFi, and Gemini Earn claims to file.
On Monday (6 Feb), FTX International claims filing began. Today, BlockFi and FTX US claims can now be filed.
Nexus Mutual Community Call | 7 February 2023: video.
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.

Synthetix has launched 22 new perps markets.
SNXweave Weekly Recap 75: A recap of news, projects, and important updates from the Spartan Council and Core Contributors, as well as the Grants Council and Ambassador Council from last week.
The Eltanin Release took place.
Synthetix supported tBTC launch as a tBTC minter.

Uniswap

Uniswap is an automated Ethereum-based decentralized exchange.

Uniswap DAO has completed the vote for its proposed BNB deployment.
The community has voted to launch Uniswap v3 on Boba Network.
Uniswap’s next round of Wishlist Grants is open for proposals until February 20th.
Twitter Space: NFTuesday with Melt_dem.
The latest Uniswap proposals are here.