DeFi in Ether: $47B in DeFi, Lido v2 live, MakerDAO’s first steps to Endgame update, Compound v3 live on Arbitrum, Concentrated liquidity is now live on Balancer, Gnosis Chain’s Chiado testnet will hardfork on 24 May, KyberSwap Elastic relaunches 24 May, 1inch celebrated its 4th anniversary, and much more!
Biweekly update on the Ethereum DeFi ecosystem vol.73, 9th May — 23rd May
TL;DR
- $47.1B in DeFi this week with Lido dominance 25.36%.
- Ethereum suffered finalization issues for 25 minutes.
- MakerDAO has unveiled an AI-fueled roadmap that will lead to a new blockchain. MakerDAO, responsible for the DAI stablecoin, has published a five-part plan for a major update called Endgame. The changes will introduce AI tools and ultimately lead to the creation of a new blockchain.
- Lido v2 is live: Withdrawals; no service should have more than 22% of stake (Lido has ~33%) + staking router (allows permissionless onboarding of node operators). Lido on Ethereum VaNOM — Stake Allocation & Distribution: A look into the Lido on Ethereum stake allocation and distribution of node operators for increased transparency and accountability. The Lido decentralization scorecard has been updated.
- Uniswap’s trading volume has outpaced Coinbase for the fourth consecutive month. Uniswap weighed a proposal to enrich token holders and switch on liquidity pool fees. New blog post: Going from CeFi to DeFi. Twitter Space: NFTuesday w @MissOCoolGirls. Uniswap Labs Research Hour with Professor Ciamac. Wallet Connect 2.0 is now integrated into the Uniswap wallet.
- 1inch celebrated its 4th anniversary. Proposal [1IP 27] Allocate 1M $USDC stables in the treasury to the lending pool on Aave V3 is live. 1inch Evolution Art Contest with a $10K prize fund is held from May 19 to June 2. WOOFi: “[1inch is] a goliath of the DEX aggregator world”: In this series of posts, 1inch looks at partnerships it has struck with various projects and at how both sides have benefited from the collaboration.
- Latest Aave News: New grantees, ETHGlobal Lisbon & rAAVE. Twitter Space: Aave is TOO LIVE in Metis. Follow the Aave governance forum. Congrats to all those who participated in the hackathon at ETHGlobal Lisbon with Grants. Deep dive into the winners for Aave and GHO integrations.
- Concentrated liquidity is now live on Balancer. Built by Gyroscope and in collaboration with Lido, combine your $MATIC LSTs into a CL pool supercharged with 7x efficiency that requires no rebalancing. The latest Balancer Report. Those holding bb-e-USD in Euler’s Boosted Pools can now withdraw their funds by following the steps outlined in this guide brought to you by Balancer Maxis. Binance Earn is entering the Balancer ecosystem through a dual LST$WBETH / $wstETH pool.
- Compound v3 is live on Arbitrum. You can now use ARB, GMX, WETH, and WBTC as collateral to borrow USDC on Arbitrum. Compound Proposal 160 ‘Initialize cUSDCv3 on Arbitrum’ and Proposal 161 ‘Risk Parameter Updates for Polygon Compound v3 USDC (5/9/23)’ have passed successfully. Find the latest Compound proposals here.
- dYdX v4 Technical Architecture Overview: This post presents a high-level overview of the architecture of V4. dYdX Named Among Best Workplaces: dYdX is proud to have been named to Inc. magazine’s annual Best Workplaces list for 2023. What Happens To DYDX’s $335 Million Cryptocurrency When They Leave Ethereum? Antonio was interviewed by Forbes. The ‘Governance Weekly Recap’ was launched, highlighting some of the important conversations and topics on the forum. Stay up to date with the latest governance conversations and participate in forum discussions.
- Gnosis Chain’s Chiado testnet will hardfork on 24 May 2023 at 12:12:00 UTC, Epoch: 244224. Full details: Chiado’s Shapella Hardfork. Gnosis Chain’s VIP program has increased the number of countries with validators by 20% to 77 since last month. Gnosis Core Devs Call Notes May 17. Latest Gnosis Chain Weekly.
- Kyber Elastic relaunch on 24 May brings a rich bounty in LM rewards. With Elastic’s relaunch, 4 chain portals will be opened at its most opportune moments: Arbitrum, Optimism, Polygon, and Avalanche. KyberSwap April Product Update is out. 4,500 KNC airdrop for KyberSwap Arbitrum NFT Holders: KyberSwap unveils an exciting development for those who possess the coveted KyberSwap Arbitrum NFTs. Find out all Kyber proposals here. Check them out on GitHub.
- Block trade on Loopring introduced: Giving L2 users self-custodial access to multiple liquidity sources. The best CEX liquidity across crypto, from the safety of your self-custodial wallet directly on Loopring L2. Loopring + Uptick Network join forces to transform NFT Marketplaces on Loopring L2. Check out the knowledge base for all things Loopring L2.
- Decreasing Frictions in DeFi Hackathon: 0x, Polygon Labs, and AWS invite you to participate in the “Decreasing Frictions in DeFi” hackathon that launches June 2, an online hackathon where builders can showcase their innovations to solve real-world financial frictions. Swap API liquidity management: Take a peak under the hood of how we manage Swap API’s liquidity portfolio. 0x 101: Getting started with Swap API: In this guide, the 0x team dives into how to build with Swap API — using it to programmatically find the best token price and execute a trade. 0x 101: Intro to Swap API: A brief introduction to Swap API — what it is, how it works, and how to get started building with 0x.
- Improving Keeper Rewards on Synthetix Perps: Introducing the Dynamic Gas Fee Module: With the upcoming implementation of SIP-2013: Dynamic Gas Fee Module, Synthetix has introduced an update to Synthetix Perps to enhance the perps keeper system, making it more decentralized and resilient in response to gas price spikes. The Optimism Bedrock Release & Synthetix Downtime: In preparation for the Optimism Bedrock upgrade scheduled for June 6th, the Synthetix team has created this blog post to provide detailed information about the scheduled downtime and more. SNXweave Weekly Recap 89. Liquid Conversations: Episode one — Synthetix Perpetual Futures.
- The latest issue of Nexus Mutial’s the Hedge is out: Governance forum overhaul project, Discord notifications bot update, upcoming governance discussions about cover wording, active governance discussions. The Avantgarde Treasury has proposed a plan to redeploy funds from the Enzyme vault in order to diversify based on track record, geography, and monitoring risk elements. Uisce.eth has suggested that Nexus Mutual allocate approximately 10% of the capital pool to stake with Rocket Pool, which is currently the third largest ETH liquid staking token by TVL. OpenCover is seeking feedback on the recently launched Blue Chip Protocol Staking Pool, which is a collaborative effort with DeFiSafety. To learn more about this initiative and provide feedback, visit this link. Community proposals of these weeks.
- Enzyme’s Integration with The Graph: Unlocking DeFi: Last Tuesday, the team hosted a webinar where they discussed how Enzyme leverages The Graph. Check out MFP: Enzyme Funding Proposals here.
- Yearn Finance yNewsletter #64 has been published.
- The US House financial committee has given Gensler an ultimatum to respond to inquiries.
- Visa: experiments with ERC4337 account abstraction on Goerli testnet.
- DeFiReturns v2 launches with actual returns, with or without rewards, for ~10 major DeFi protocols.
- Ledger’s planned KYC’d account recovery leads to a furious blowback during which they admit that a malicious firmware update can steal your crypto despite prior assurances that it couldn’t.
- ETHGlobal Lisbon hackathon finalists.
- And more!
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Statistics 📈
Total Value Locked in DeFi
- $47.1B in DeFi this week with Lido dominance 25.36%.
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.
- Decreasing Frictions in DeFi Hackathon: 0x, Polygon Labs, and AWS invite you to participate in the “Decreasing Frictions in DeFi” hackathon that launches June 2, an online hackathon where builders can showcase their innovations to solve real-world financial frictions.
- Swap API liquidity management: Take a peak under the hood of how we manage Swap API’s liquidity portfolio.
- 0x 101: Getting started with Swap API: In this guide, the 0x team dives into how to build with Swap API — using it to programmatically find the best token price and execute a trade.
- 0x 101: Intro to Swap API: A brief introduction to Swap API — what it is, how it works, and how to get started building with 0x.
1inch
1inch is a decentralized exchange aggregator that aims to provide traders with the best price and lowest fees on their transactions.
- 1inch celebrated its 4th anniversary.
- Proposal [1IP 27] Allocate 1M $USDC stables in treasury to lending pool on Aave V3 is live.
- 1inch Evolution Art Contest with a $10K prize fund is held from May 19 to June 2.
- WOOFi: “[1inch is] a goliath of the DEX aggregator world”: In this series of posts, 1inch looks at partnerships it has struck with various projects and at how both sides have benefited from the collaboration.
Aave
Aave is a lending system that allows users to lend, borrow, and earn interest on crypto assets.
- Latest Aave News: New grantees, ETHGlobal Lisbon & rAAVE.
- Twitter Space: Aave is TOO LIVE in Metis.
- Follow the Aave governance forum.
- Congrats to all those who participated in the hackathon at ETHGlobal Lisbon with Grants. Deep dive into the winners for Aave and GHO integrations.
Balancer
Balancer is a decentralized exchange protocol, automated portfolio manager, liquidity provider, and price sensor that is community-driven.
- Concentrated Liquidity is now live on Balancer. Built by Gyroscope and in collaboration with Lido, combine your $MATIC LSTs into a CL pool supercharged with 7x efficiency that requires no rebalancing.
- The latest Balancer Report.
- Those holding bb-e-USD in Euler’s Boosted Pools can now withdraw their funds by following the steps outlined in this guide brought to you by Balancer Maxis.
- Binance Earn is entering the Balancer ecosystem through a dual LST$WBETH / $wstETH pool.
Compound
Compound is an algorithmic, autonomous interest rate protocol built for developers, to unlock a universe of open financial applications.
- Compound v3 live on Arbitrum. You can now use ARB, GMX, WETH, and WBTC as collateral to borrow USDC on Arbitrum.
- Compound Proposal 160 ‘Initialize cUSDCv3 on Arbitrum’ and Proposal 161 ‘Risk Parameter Updates for Polygon Compound v3 USDC (5/9/23)’ have passed successfully.
- 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 v4 Technical Architecture Overview: This post presents a high-level overview of the architecture of V4.
- dYdX Named Among Best Workplaces: dYdX is proud to have been named to Inc. magazine’s annual Best Workplaces list for 2023.
- What Happens To DYDX’s $335 Million Cryptocurrency When They Leave Ethereum? Antonio was interviewed by Forbes.
- The ‘Governance Weekly Recap’ was launched, highlighting some of the important conversations and topics on the forum.
- 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’s Integration with The Graph: Unlocking DeFi: Last Tuesday, the team hosted a webinar where they discussed how Enzyme leverages The Graph.
- 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 Chiado testnet will hardfork on 24 May 2023 at 12:12:00 UTC, Epoch: 244224. Full details: Chiado’s Shapella Hardfork.
- Gnosis Chain’s VIP program has increased the number of countries with validators by 20% to 77 since last month.
- Gnosis Core Devs Call Notes May 17.
- Latest Gnosis Chain Weekly.
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.
- Kyber Elastic relaunch on 24 May brings a rich bounty in LM rewards. With Elastic’s relaunch, 4 chain portals will be opened at its most opportune moments: Arbitrum, Optimism, Polygon, and Avalanche.
- KyberSwap April Product Update is out.
- 4,500 KNC airdrop for KyberSwap Arbitrum NFT Holders: KyberSwap unveils an exciting development for those who possess the coveted KyberSwap Arbitrum NFTs.
- Find out all Kyber proposals here. Check them out on GitHub.
Lido
Lido is a liquid staking solution for proof-of-stake cryptocurrencies.
- Lido v2 live: Withdrawals; no service should have more than 22% of stake (Lido has ~33%) + staking router (allows permissionless onboarding of node operators).
- Lido on Ethereum VaNOM — Stake Allocation & Distribution: A look into the Lido on Ethereum stake allocation and distribution of node operators for increased transparency and accountability.
- The Lido decentralization scorecard has been updated.
Loopring
Loopring is a zkRollup layer2. It allows for high-throughput, low-cost trading and payment on Ethereum.
- Block trade on Loopring introduced: Giving L2 users self-custodial access to multiple liquidity sources. The best CEX liquidity across crypto, from the safety of your self-custodial wallet directly on Loopring L2.
- Loopring + Uptick Network join forces to transform NFT Marketplaces on Loopring L2.
- Check out the 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 latest issue of Nexus Mutial’s the Hedge is out: Governance forum overhaul project, Discord notifications bot update, upcoming governance discussions about cover wording, active governance discussions,
- The Avantgarde Treasury has proposed a plan to redeploy funds from the Enzyme vault in order to diversify based on track record, geography, and monitoring risk elements.
- Uisce.eth has suggested that Nexus Mutual allocate approximately 10% of the capital pool to stake with Rocket Pool, which is currently the third largest ETH liquid staking token by TVL.
- OpenCover is seeking feedback on the recently launched Blue Chip Protocol Staking Pool, which is a collaborative effort with DeFiSafety. To learn more about this initiative and provide feedback, visit this link.
- 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.
- Improving Keeper Rewards on Synthetix Perps: Introducing the Dynamic Gas Fee Module: With the upcoming implementation of SIP-2013: Dynamic Gas Fee Module, Synthetix has introduced an update to Synthetix Perps to enhance the perps keeper system, making it more decentralized and resilient in response to gas price spikes.
- The Optimism Bedrock Release & Synthetix Downtime: In preparation for the Optimism Bedrock upgrade scheduled for June 6th, the Synthetix team has created this blog post to provide detailed information about the scheduled downtime and more.
- SNXweave Weekly Recap 89.
- Liquid Conversations: Episode one — Synthetix Perpetual Futures.
Uniswap
Uniswap is an automated Ethereum-based decentralized exchange.
- Uniswap’s trading volume has outpaced Coinbase for the fourth consecutive month.
- Uniswap weighed a proposal to enrich token holders and switch on liquidity pool fees.
- New blog post: Going from CeFi to DeFi.
- Twitter Space: NFTuesday w @MissOCoolGirls.
- Uniswap Labs Research Hour with Professor Ciamac.
- Wallet Connect 2.0 is now integrated into the Uniswap wallet.
Yearn Finance
Yearn Finance is an open-source DeFi lending protocol based on the Ethereum blockchain.
- yAuditDao: 1337 Codebase Auditors Enhancing Protocol Scalability via Comprehensive Security Reports, complete with risk-mitigating strategies and solutions. yAudit is Yearn’s auditing wing that shares 10% of revenue generated with Yearn. Already rapidly scaling, EOY Yearn revenue target for 2023 is $80k.
- ApeWorX Ltd: “Futureproofing Web3” via Ape Templates and plugin structures to “make whatever you want in Web3”. Devs at Yearn discuss how they utilize Ape’s helpful tools in various ways.
- 4626 Alliance: A group of leading protocols and applications unified in building with the ERC-4626 tokenized vault standard. ERC-4626 will be used by Yearn’s v3 vaults for easier vault integrations, plugin utility, and far-reaching “composability across the entire ecosystem.”
- Dump.Services: Watch the Launch Video. Developed by Yearn & Cowswap, you can now “dump multiple tokens in a single tx.” Spend Less to Dump En Masse.
- Euler Hack Funds Recovered: Yearnfi, alongside idlefinance and AngieProtocol, successfully recovered all impacted funds.
- yREDACTED?: Teaser tweet from one of Yearn’s core Devs. Highly recommend you follow their account if you aren’t already.
- yETH Community Hype: Ox7d54 provides a concise, detailed summary as to why yETH “is not simply a token representing a diverse ‘basket’ of LSDs. It is much, much better.”
- Yearn’s V3 Smart Contract Audit: A Security Audit Report was completed by Chain Security on Yearn’s V3 Vaults and Smart Contracts. Yearn takes security seriously.
More updates
- Ethereum suffered finalization issues for 25 minutes.
- MakerDAO has unveiled an AI-fueled roadmap that will lead to a new blockchain. MakerDAO, responsible for the DAI stablecoin, has published a five-part plan for a major update called Endgame. The changes will introduce AI tools and ultimately lead to the creation of a new blockchain.
- The US House financial committee has given Gensler an ultimatum to respond to inquiries.
- Visa: experiments with ERC4337 account abstraction on Goerli testnet.
- DeFiReturns v2 launches with actual returns, with or without rewards, for ~10 major DeFi protocols.
- ETHGlobal Lisbon hackathon finalists.
- Ledger’s planned KYC’d account recovery leads to a furious blowback during which they admit that a malicious firmware update can steal your crypto despite prior assurances that it couldn’t.
This is not financial advice.
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