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DeFi in Ether: Katalyst and KyberDAO are live, 0x launches Matcha, Aave is starting native Credit Delegation, Omen prediction markets are here, Synthetix introduces binary options, Nexus Mutual releases pooled staking, Augur v2 will launch on July 28th, and much more!

Paradigm
Paradigm
Published in
31 min readJul 8, 2020

Biweekly update on Ethereum DeFi ecosystem vol.8, 24th June — 8th July

TL;DR

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Check out our latest biweekly report on Ethereum vol.46: 9th June — 23rd June.

For more updates, join Paradigm on Medium, Twitter, Telegram, and Reddit.

Total Value Locked in DeFi

Source: defipulse.com
Source: defipulse.com

Top DeFi Tokens by Market Capitalization

Total Market Cap: $7,385,130,101

Source: defimarketcap.io

Debt

Aave:

Aave is starting native Credit Delegation (CD). Aave depositors can delegate their credit lines:

June Update: $100M Milestone, Bug Bounty Boost, and Epic Events:

Technical & Development Updates

With the tremendous growth in Aave Protocol over the past 6 months, it is of the utmost importance for the protocol to remain as secure as possible. The team is extremely confident in the security of Aave Protocol, but they want to be sure the protocol meets the highest security standards. Therefore, the Aave team decided to up the reward for any critical bugs found to $250,000! This is the highest bounty ever for a DeFi protocol. Read more about the Bug Bounty update here and check out all the bounty criteria here.

Events & Community

Aave was thrilled to be featured in SEA DeFi Week, which highlighted a different DeFi technology each day. Check out Stani’s intro to Aave here.

They were also at Mainnet by Messari, and at BlockDown2020 where Stani was on the panel “DeFi: What does the future hold?” with some of the industry’s top leaders.

The team is proud of all the hackers who hacked on Aave at the Gitcoin and HackMoney hackathons! Check out their blog posts for the rundown on the coolest hacks.

Aave co-hosted a Dev Meetup with Chainlink which dove into some of the winning HackMoney hacks. Find the full video here. The 3rd Community Call also highlighted some recent hackathon winners from the HackMoney, Metacartel Dragon Quest, and the NYBW Gitcoin hackathons — check out the video to learn all about YieldHero, MagicBet, DeFi777, and HodlFactory.

Moreover, the team had their first DeFi Debate on synthetic assets featuring the OG founders of Synthetix and UMA! The debate was moderated by Aave’s own Marc Zeller, and you do not want to miss out on this in-depth discussion!

June 8th was the anniversary of the first ever smart contract based loan on Ethereum with ETHLend! They’ve come a long way since then with a much sleeker UI/UX and more friendly user experience. Witness DeFi history here.

Don’t Miss Out On:

Aave has launched a Gnosis Safe app. Safe users can now deposit, earn, and borrow in the Aave Market, directly from their Safe:

Compound:

Latest Governance Proposals, New Product Launches:

Governance Updates:

A few new proposals have passed through Compound’s governance system since the public COMP distribution went live on June 15th. Most of the proposals are a reaction to the user behavior surrounding the initial mechanics of the COMP distribution, and seek to both ensure the safety of the protocol and its users and ensure fair distribution of governance rights. Below, we highlight each proposal, from oldest to newest, and the broader significance for users and stakeholders of the protocol.

Proposal 8: Increase USDT Reserve Factor from 0% to 10% (008)

  • Status: Executed June 22nd, 2020
  • Proposer: blck
  • Voting Results: 1,413,016 For and 15,001 Against
  • Summary: With the rapid growth of USDT volumes on Compound, this proposal was introduced so that the liquidation mechanism accumulates USDT reserves to defend against any possibility of undercollateralized borrows.

Proposal 9: Set reserve factor for cUSDT to 20.0% (009)

  • Status: Executed June 25th, 2020
  • Proposer: Dharma
  • Voting Results: 758,651 For and 311,570 Against
  • Summary: Taking blck’s 10% USDT reserve factor increase even further, Dharma made the case for bumping up USDT’s reserve factor yet again to 20% to disincentivize a new trend called yield-farming.

Proposal 10: Adjusting COMP distribution speed to match Ethereum network block time and increasing higher-risk assets Reserve Factor (010)

  • Status: Executed June 27th, 2020
  • Proposer: blck
  • Voting Results: 1,198,438 For and 189,177 Against
  • Summary: This proposal has 2 parts: reducing the speed of COMP distribution to match the 13.1 second Ethereum block time vs the expected 15 second block time; and increasing the reserve factor for illiquid assets like BAT, REP, and ZRX to 50%, in order to mitigate inorganic yield-farming.

Proposal 11: COMP Distribution Patch (011)

  • Status: Queued June 30th, 2020 (Executable July 2)
  • Proposer: Geoffrey Hayes
  • Voting Results: 771,804 For and 1 Against
  • Summary: This proposal from Compound Labs CTO Geoffrey Hayes removes interest rates as a factor in COMP distribution by adjusting the allocation formula from: totalBorrows * borrowingRatePerBlock * USD Value to: totalBorrows * USD Value, so that every $1 supplied/borrowed will accrue the same amount of COMP in each market.

Join the Compound governance discussion on Comradery, or delegate your COMP voting rights to the delegate of your choice. Leading delegates can be seen on the Delegate Leaderboard.

Product Launches:

The launch of COMP has spurred the development of new tools, integrations, and methods of accessing the protocol and participating in governance.

COMP:

>17 exchanges so far have listed COMP with FTX and Poloniex also listing cUSDT so users can earn interest and COMP just by holding the asset. Alongside listing COMP on Pro and Consumer, Coinbase has created an educational series on COMP for their Earn product, where users can learn about the protocol and get rewarded with $9 of COMP.

Compound APIs:

For developers looking to build applications on top of Compound, Ankr and QuikNode have both recently released APIs for calling Compound’s smart contracts. These APIs enable anyone to supply, redeem, borrow, and repay using Web2 programming languages like JavaScript, instead of running an Ethereum Node and programming in Solidity.

DeFi Products:

Opyn and UMA have both released innovative financial instruments for COMP that allows COMP holders to hedge their exposure. Opyn has created a Protective COMP Put Option with a strike price of 150 USDC and Expiry date of July 3rd, 2020. The platform also offers the ability to earn premiums on USDC by selling these protective put options. UMA has launched yCOMP, which allows users to permissionlessly gain tokenized exposure to the price of COMP.

Permanent Interface:

A community member ported the Compound Dashboard to Arweave, which is a derivative blockchain that enables permanent on-chain data storage.

Links & Discussions:

Dharma:

A month ago, the Dharma team gave users the ability to buy ETH using their unlocked Dharma balance. Starting July, users can buy ETH instantly, directly from a debit card:

Dharma Submits Compound Prop 12 to Update cDAI Interest Rate Model: The Dharma team proposes Prop 12 to the Compound Protocol, improving the cDAI interest rate model.

The team plans to work on additional improvements in the coming weeks.

Specifically, they hope to help deploy a single model that all/most cTokens can reference and that is directly configurable via governance rather than needing to deploy new contracts.

They voted against Compound Prop 14:

Dharma Launched StackingStreakSweepstakes:

Maker:

Maker Governance Review: June 2020: The Maker Governance Review is a monthly recap of all Governance activity, from Governance Cycle progress and polling and voting history to blog posts focused on community decision-making.

Making Maker: June 2020: A recap of all things Maker for June 2020.

KNC and ZRX Approved by Maker Governance as Collateral Types in the Maker Protocol: As a result of an Executive Vote that ended last week, MKR holders have accepted KNC (Kyber Network) and ZRX (0x) as new collateral assets in the Maker Protocol. Both tokens can now be used to open Maker Vaults in order to generate Dai.

Executive Vote: Add Oracles, Lower the Base Rate, Raise WBTC & USDC Debt Ceilings and Risk Premiums: The Maker Foundation Interim Governance Facilitator has placed an Executive Vote into the voting system which will enable the community to approve the following alterations to the protocol as outlined in these Polls.

And in this forum thread:

Governance Poll: Base Rate Adjustment, WBTC Debt Ceiling and Risk Premium: The Maker Foundation Interim Risk Team has placed a series of Governance Polls into the voting system which presents adjustments to the Base Rate, and WBTC Debt Ceiling.

Maker Foundation Offers a 25,000 Dai Prize to Winner(s) of Reddit/Ethereum Scaling Competition: The Maker Foundation offers a 25,000 Dai bounty to the winner of the Reddit and the Ethereum Foundation competition, The Great Reddit Scaling Bake-Off.

Welcome to the Evolution: How DeFi is Augmenting the Global Financial System: Evolution of the global financial system continues through augmentation, with MakerDAO providing the ideal bridge between the traditional CeFi system and DeFi.

MakerDAO is exploring Peg Stabilization Modules, ie stablecoin to stablecoin trading.

Silk Road’s Ross Ulbricht has some things he wishes Maker did differently.

xDai:

Derivatives, Swaps and Prediction Markets

Augur:

Augur v2 Launch & REP Migration: Augur v2 will launch on July 28, 2020.

Augur v2 introduces a new REP token called “REPv2”. Current REP holders will need to manually migrate their REPv1 to the new REPv2 token to participate in the Augur v2 reporting system.

Augur v2 reintroduces the concept of “Use It or Lose It”, meaning all REPv1 and REPv2 holders will need to participate in a network wide market fork, if one ever occurs. If you do not participate within the 60-day forking period, your REPv1 or REPv2 will be forever unable to participate in any of the forked and future universes of Augur. More information on “Use It or Lose It” forking can be found in the migration guide and Augur whitepaper.

No immediate action needs to be taken, however REPv1 holders will need to eventually migrate their REPv1 to REP v2 after Augur v2’s deployment. A migration tool will be provided within the Augur UI, and a full tutorial on doing so will be published.

Note: Forking is the crux of Augur’s security model. This is intended to be an extremely rare event, with no market in Augur v1 ever nearing the forking thresholds. Currently, triggering a fork would cost approximatley ~$9,100,000 USD (~550k REP @ $16.50), rendering the “losing” side of the forks REPv2 presumbably worthless.

Exchanges, dApps, DEXs, wallets, block explorers, service providers, and any other entities interacting with REP can find more information on how to handle the migration here.

Please read the Augur v2 Deployment & REP Migration FAQ for further details. If you have any questions, comments or concerns, please get in touch via email or Discord, and follow @AugurProject for public communications.

dYdX:

Trader Insights: Yield Farming. The dYdX team shared the second edition of dYdX Trader Insights. In this post, they take a look at the recent yield farming trend and what it means for building liquidity and network effects in DeFi protocols.

Trader Spotlight: Andrew Kang: This is episode #02 of Trader Spotlight, a series on trading insights & strategies used by well-known cryptocurrency investors.

Gnosis:

Omen and the Next Generation of Prediction Markets: Omen prediction markets are live at Omen.eth and via direct IPFS link.

Omen is a decentralization maximalist prediction market platform launched, maintained, and governed by the DXdao. The DXdao built Omen on an open framework developed by Gnosis for prediction markets.

On Omen, anyone can create prediction markets on questions of their choice. When creating a market, you can customize its features, including:

  • Outcomes and initial probabilities;
  • Collateral token: markets can be denominated in an array of assets and stablecoins, including the OWL token designed by Gnosis for this use case;
  • Resolution date;
  • Category: markets can belong to any category, including but not limited to technology, cryptocurrency, and politics;
  • Arbitrator: markets can have a custom oracle.

Oracles are predefined data sources for bringing real-world information onto the blockchain and verifying a prediction market’s outcome. Whereas most prediction markets have a single platform-locked oracle system, Omen is oracle-agnostic, meaning technically you can specify the custom data source you’d like to use as an oracle. Omen v1 uses the decentralized tool Realit.io as an oracle with Kleros dispute resolution as the final arbitrator; in the future potential Omen oracles could include Chainlink, Aragon Court, and traditional legacy news outlets. Rather than being over-prescriptive, Omen is designed to be open and modular to allow different norms and best practices around prediction markets to arise organically within the broader ecosystem.

Omen’s design responds to a perceived flaw in early prediction markets predicated on lack of liquidity. Unlike other blockchain-based prediction markets that use traditional orderbooks resulting in high spreads due to insufficient liquidity, markets on Omen use an automated market maker to match trades and allow users to easily contribute to Uniswap-like liquidity pools. Enhanced liquidity means that a prediction market’s pricing can always reflect the latest expert opinion on its topic.

Omen is one of many platforms built on the conditional token framework. The conditional token framework essentially allows the creation of a new crypto asset class — called conditional tokens as you may have guessed — which enable higher-resolution information discovery for prediction markets. Since conditional tokens are ERC-1155 compliant and can be easily wrapped in the Ethereum standard ERC-20, outcome tokens created on Omen will soon be traded on external DEXs like Gnosis Protocol. This paves the way for prediction market assets to access a global liquidity pool and cross-platform interoperability, even among different prediction market providers such as Omen or Polymarket, both of which are built on the conditional token framework developed by Gnosis.

In addition to enhanced liquidity and interoperable tokens, another key to Omen’s innovation lies in its governance. Omen is the flagship product of the DXdao, which defines itself as a sovereign collective with open membership that develops, governs, and grows decentralized finance protocols and products. Composed of self-described decentralization maximalists, the DXdao mandates their applications have full stack decentralization on serverless hosting, application, and governance layers. With DAO-based governance, Omen preserves its tenets of decentralization and combats the “trust problem” of centralized prediction markets, whilst retaining the flexibility to upgrade for improvements to the platform over time.

How are prediction markets on Omen different from Augur?

For an overall comparison of Omen and Augur v2, you can check out the chart below:

Omen and Augur at-a-glance

UMA:

The UMA token is now available on both Uniswap V2 and Balancer.

Fund Management

Melon:

The Melon terminal has just been born:

The Melon Council acknowledges MIP#7 and outlines some next steps. For those of you who are catching up, MIP#7 explores:

- Dropping fund set up fees

- Moving to an AUM based fee model

- Discount for $MLN holders

- Re-visiting inflation

In summary, the proposal takes a closer look at the Melon token economics (Melonomics) and lays out arguments to reconsider the value accrual mechanism. In particular, it argues for a value accrual mechanism that is directly linked to growth in the Assets Under Management in Melon Protocol funds vs. the number of individual Melon Protocol funds. Crucially, it also argues for a removal of any fee at fund “set up” in order to entirely remove any friction for new users entering the platform and deploying a Melon fund on the blockchain. Interesting to note is also a sub-proposal to give holders of MLN discount to fees on the protocol and the argumentation to commit towards reducing inflation in later years.

Furthermore, the team announced that the RFQ system is now providing *much* better liquidity in BAT/ETH, KNC/ETH, LINK/ETH, OMG/ETH, REP/ETH, MKR/ETH and ZRX/ETH:

Melon x Token Terminal: Interview with Mona El Isa: In this blog series, the team interviews founders from the crypto space to learn more about them and the products they’re building. For the most recent interview, they sat down with Mona El Isa, the co-founder of Melon and Multichain Asset Managers Association (MAMA). In this interview, they go through topics ranging from the team’s current product focus to future plans.

Set Protocol:

Set COMP Distribution Update.

Set Labs — Set AMA Series.

Balancer Labs — Set Social Trader AMA Series.

How Techemy Capital Has Been Bridging CeFi With DeFi — Set Social Trader Spotlight.

Securities, Insurance and NFTs

Nexus Mutual:

Pooled staking is here! The Nexus Mutual designed a new system with increased rewards, better distribution of rewards among members, removal of the queue system and decreasing the lock-up periods.

The new system of pooled staking allows a deposit of NXM to be staked on multiple contracts simultaneously to amplify potential rewards and to improve the capital efficiency of staking materially.

The rewards and punishments associated with staking are shared proportionally with a stake on a particular system.

The queue system has been removed and stakes withdrawals can be initiated at any time (after a 90 day lock up period where the stakes continue to earn rewards and are still subject to burning).

How it works:

  • Deposit NXM
    Members deposit NXM (Nexus Mutual native token) from their account into the risk assessment section of our app.
  • Stake those NXM to smart contracts you think are secure
    Stake those NXM against any smart contract system that you deem secure. This will enable smart contract cover to be purchased on that system. You can stake 10 times the amount you deposit in NXM over several contracts.
  • Earn rewards
    Proportional rewards system means members will earn rewards for every smart contract system they stake against.
  • Deposit could be burned
    If a claim is made against a smart contract that you have staked on, your stake will be burned.

Understanding staking with Nexus Mutual.

Liquidity Relays

0x project:

Say Hello to Matcha! The 0x team finally released Matcha into the world, a simple decentralized crypto exchange designed for everyone! After nearly 3 years of building the 0x protocol and enabling others to build great DeFi products, the team had a ton of new ideas for how they could make it easier for more people to access exciting new markets.

They believe that tokenization combined with global peer-to-peer markets will help to eliminate the geographic lottery and unlock latent human potential. That is why they set out to rethink the exchange experience and build the foundation to onboard the next wave of crypto traders.

What makes Matcha different?

First, you’ll notice that the homepage features token shortcuts and a search field. On other exchanges, navigating to markets requires clicking into two different dropdown menus to find the assets you’re looking for. With Matcha search, you can quickly type out whatever token or pair you’re looking for and immediately jump into that market to begin trading.

Eventually, there will be hundreds of assets with thousands of different pair combinations you can trade. So, the team wanted to make it as fast as possible for traders to find and navigate to whatever markets they’re looking for with fewer interactions, no matter where they are on Matcha.

Under the hood, Matcha splits trades across 0x Mesh, Kyber, Uniswap, Curve, Oasis, and their own proprietary liquidity sources to find the best prices for traders. As the team adds additional liquidity sources, Matcha will continue to improve to ensure traders are receiving the best prices the market can offer, which reduces time and effort spent price hunting.

On most exchanges, tokens aren’t given nearly enough prominence or the love they deserve. They are merely a list item hidden inside a dropdown menu. Traders are required to learn about and discover these assets on their own time. The 0x team believes a good exchange should make it easier for people to learn about the things they’re investing in. That’s why they’ve invested in building out asset pages which will serve as a destination for people to discover and learn about new tokens. They look forward to improving these alongside the various token projects and communities over time.

Most exchanges and DeFi products require you to be an expert going in. The team heard time and time again from people who use DEX’s regularly, that they can still sometimes be scary. Whether it’s losing money due to extreme slippage or fat fingering a trade. They want to make sure that you always feel smart and in control when you’re using Matcha.

The team wants everyone to feel comfortable and confident trading on Matcha. Which is why they will continue to invest in education, new user onboarding and abstracting away the complexities of the blockchain wherever possible.

How to Trade on Matcha DEX Aggregator:

1inch.exchange:

67% better price on SNX to sUSD swap with 1inch.exchange brand new Pathfinder algorithm based on a deep multi path discovery:

1inch.exchange added support for custom tokens. You can now add any token that is not listed on 1inch with just a few clicks.

They also released UniLogin support for 1inch.

And listed JRT on 1inch.

Balancer Pool with STA Deflationary Token Incident: At least two Balancer multi-token pools were drained for more than $500k today by using a vulnerability in context of AMM and token with deflationary model.

Balancer:

Draft of week5 BAL mining:

Balancer Pool admitted early last Monday morning it had fallen victim to a sophisticated hack that exploited a loophole, tricking the protocol into releasing $500,000 worth of tokens.

In a blog post, Balancer CTO Mike McDonald said the attacker had borrowed $23 million worth of WETH tokens, an ether-backed token suitable for DeFi trading, in a flash loan from dYdX. They then traded, against themselves, with Statera (STA), an investment token that uses a transfer fee model and burns 1% of its value every time it’s traded.

The attacker went between WETH and STA 24 times, draining the STA liquidity pool until the balance was next to nothing. Because Balancer thought it had the same amount of STA, it released WETH that equated to the original balance, giving the attacker a larger margin for every trade completed.

As well as WETH, the attacker performed the same attack using WBTC, LINK and SNX, all against Statera tokens.

The hacker’s identity remains a mystery but analysts at 1inch exchange, a decentralized exchange aggregator, said the hacker had covered their tracks well: The ether used to pay transaction fees and deploy smart contracts was laundered through Tornado Cash, an Ethereum-based mixer service.

“The person behind this attack was [a] very sophisticated smart contract engineer with extensive knowledge and understanding of the leading DeFi protocols,” 1inch said in its blog post on the breach.

For its part, the team behind Statera batted away accusations that the protocol had either failed or been designed intentionally for this sort of attack to take place.

“We deeply regret, apologize and sincerely extend our condolences to all the victims of this attack,” Statera said in an official announcement.

The project added that it was not in a position to be able to refund the attacker’s victims.

Balancer Pool began blacklisting all transfer fee tokens, including Statera, McDonald said. As well as another audit, McDonald said the team would do more research into how the hack happened and whether similar vulnerabilities exist with other listed tokens.

The attack could not have come at a worse time for Balancer, which only released its own “BAL” governance token last month.

Update #2: Incident with non-standard ERC20 deflationary tokens: The Balancer team’s long term vision is for Balancer protocol to be a leading DeFi building block, eventually holding billions of dollars worth of assets. Since the launch, they have been humbled by the increase in usage of Balancer and believe they are on the right path to achieve this goal.

The sudden surge in users and liquidity Balancer had last week left them playing catch up on scaling the platform, having played a major role in the outages of both TheGraph and Coingecko’s api. Even with such rapid growth, they did (and still do) their best for the users to understand the risks involved in dealing with Balancer as it matures and becomes a battle-tested protocol.

This post aims to detail the thought process the Balancer Labs team went through to decide on reimbursing all the liquidity providers who lost funds in the incident. It only affected about 0.36% of the total liquidity on Balancer pools, but was definitely not taken lightly by the team.

In a nutshell:

  • The Balancer team received a bug bounty report by Hex_Capital on May 6th.
  • It was clear to them even before the report that unintended arbitrage opportunities and possible unknown attack vectors could be caused by deflationary assets in Balancer pools. Balancer protocol was not designed with all the infinite possible non-standard ERC20 tokens in mind. They consistently reminded users in discord and their docs that transfer fee tokens could cause unintended side effects. However, they obviously did not think that draining a pool in a single transaction with a deflationary token was possible without the opportunity for arbitrageurs to sync the balance.
  • The bug bounty report describes in detail the attack that happened. The team however did not think it would be a practical attack because of the enormous amounts of funds and also gas they thought would be required for bringing the balance of the deflationary token to near 0 in a single atomic transaction.
  • The Balancer Labs team is all human beings working a lot and under a lot of stress. Unfortunately, they are bound to make mistakes and wrong decisions and thinking the attack was not viable was most definitely one of them. They sincerely apologize to Ankur Agrawal (Hex_Capital) who submitted the report and will award them the maximum amount available in Balancer current bug bounty.
  • They also apologize to all the affected users of our protocol who put their trust in them by being early adopters and supporters. All the users who lost funds in this attack will be reimbursed with the exact balance in each of the pooled tokens that their BPT (pool shares) would entitle them at the moment immediately before the attack. The reimbursement of the deflationary tokens that made the attack possible, STA and STONK, will be made by their respective teams. The reimbursement of the other tokens by Balancer Labs will happen as soon as possible, though they cannot promise any hard dates as the operational details must still be figured out.

This is NOT a precedent for Balancer Labs reimbursing eventual future losses on the protocol

Balancer Labs — Set AMA Series: This is a transcript of a recent AMA that was held between the Co-Founder and CEO of Balancer, Fernando, and the Set community in its Discord channel.

Bancor:

Calculating Dynamic Reserve Weights in Bancor V2: A key part of Bancor V2 liquidity pools is the use of dynamic reserve weights.

Liquidity pools hold reserves (balances) of ERC20 tokens. The “weights” of a pool refer to the percentage exposure of each token in the pool.

Most liquidity pools today are deployed with fixed weights. In a pool that consists of two tokens and fixed 50/50 weights, each reserve maintains 50% of the pool’s total value. Liquidity pools can be deployed with even (50%/50%) or uneven (80%/20%) weights.

Bancor V2 introduces a new type of liquidity pool where weights update dynamically based on market conditions. If a token’s price rises on external markets, the token’s weight in the pool also rises, and vice versa.

These automated weight adjustments incentivize arbitrageurs to re-balance reserves and bring prices offered by the pool into alignment with external market prices. This allows for the pool to closely track external market prices while maintaining the value of staked balances in the pool.

The remainder of this post describes the process by which dynamic weights are calculated in Bancor V2. The team will soon releases open-source code for dynamic weighting as well as technical documentation.

Watch the full AMA with the Bancor & Chainlink teams:

MakerDAO has released a proposal to add Bancor Network Token (BNT) as one of the collateral assets that would generate the DAI stablecoin on its protocol.

Kyber:

Katalyst and KyberDAO are now live. This milestone marks the beginning of an exciting era for Kyber, with a new decentralized governance system and technical improvements that will enhance liquidity for DeFi.

To recap, Kyber Network is a fully on-chain liquidity protocol that aggregates liquidity from diverse sources and enables decentralized token swaps in any application. KNC holders can stake their tokens on the KyberDAO and govern the protocol by voting on important proposals and parameters, while earning rewards (in ETH) for their efforts. Any KNC holder can contribute to Kyber’s development by participating in the KyberDAO.

You can start staking KNC anytime this week in Epoch 0. Epoch 0 ends on 14th July 7.07am GMT. You can start voting on the first KyberDAO proposal in Epoch 1 next week. First batch of rewards (in ETH) will be received at Epoch 2.

Read more>>>

Kyber Ecosystem Report #16 — Katalyst Launch Special:

Compound (COMP) is now available on Kyber Network.

Loopring:

Loopring Monthly Update — 2020/06:

- Next release of Loopring Protocol takes shape

- Relayer takes a 10x step in updating Merkle tree

- Exchange heats up, Pay launches

- Loopring Wallet internal alpha!

Liquidity provision on Ethereum DEXs continues to be democratized, and now, even on zkRollup orderbook exchanges.

Uniswap:

Uniswap Interface + IPFS:

  • In an effort to continue decentralizing, the team has created a mechanism for the community to host the Uniswap Interface
  • The open-source Uniswap Interface built by the team and community is automatically deployed daily to IPFS
  • Community members can pin the IPFS hashes to ensure availability
  • The team uses IPNS + DNSLink to point /ipns/app.uniswap.org to the latest IPFS release
  • app.uniswap.org is now served exclusively from the latest IPFS release, however any IPFS gateway can be used directly
  • The URL uniswap.exchange now forwards to app.uniswap.org
  • The ENS contenthash for uniswap.eth now points to the latest IPFS release allowing the URL uniswap.eth.link to be used

Payments Networks

Raiden Network:

New Raiden WebUI Released: Along with the release of Alderaan the Raiden team also wanted to give the WebUI a visual overhaul. This overhaul has now been finished and they announced the all-new Raiden WebUI. The WebUI is a graphical interface for the Raiden client that makes interacting with Raiden easy and intuitive. The Ethereum mainnet version of Raiden as well as the testnet versions are supported. It serves the purpose of making the barrier of entry low for new users interested in understanding and trying out Raiden. If you’re trying out Raiden for the first time, it is strongly recommended to give the new WebUI a try. Starting at version 1.1.0, Raiden comes with the new WebUI by default and can be downloaded here.

Moreover, the Raiden team announced that they’re giving a grant to Hub20 worth $45,000 in RDN. Check out the blogpost announcing the grant here, and check out the project here.

Raiden Weekly:

Synthetix:

The Acrux release is now complete and binary options are now live on Synthetix.

The Aldebaran release: A summary of the Aldebaran release. The team deployed an upgrade to the Synthetix system that resolved an issue that was caused by a change made in the Acrux release earlier. Thanks to SIP-66, gas costs for SNX transfers from non-staking wallets are reduced once more.

The Binary Options market for LINK over $5 by July 8th currently holds the record for the largest pool on Synthetix.Exchange with $124,258 $sUSD. It has now entered the trading phase and will reach maturity in 18 hours.

How binary options work: An explanation of the new binary options trading feature.

Optimize your sUSD yield with Idle: sUSD is now available for deposit on Idle. Idle is a yield optimization tool that automatically rebalances funds to guarantee exposure to the highest yield available while taking risk into account.

Privacy protocols for DeFi

Ren protocol:

June Development Update:

1️⃣ Airwave P2P Library Improvements

2️⃣ Expanding Multi-chain Infrastructure

3️⃣ RZL MPC Codebase Optimizations

Isolated Margin Trading for REN on Binance.

More updates

Introducing Meta (MTA) — mStable’s Protocol Token: In this update, mStable details its protocol token Meta (MTA), along with its role in bootstrapping a community of Governors through their ecosystem reward (liquidity mining/yield farming) program. You can now earn MTA tokens by contributing to both the mUSD/USDC and mUSD/WETH pools on Balancer. mStable’s June development update was also published this week.

DeversiFi Community Update #05: The team recaps their v2 launch, showcases their KPI’s, and gives insight into what their roadmap is for the next three months.

Intsadapp Introduced Debt Swap: Switch your Compound stablecoin debt from USDT to DAI in a single click. Pay less interest and earn more COMP. The team also added support for Curve sUSD and sBTC pools on the portal.

MCDEX is Live: MCDEX is a decentralized exchange offering perpetual contracts with up to 10x leverage. It uses an on-chain AMM & off-chain order book hybrid to process transactions. ETH-PERP is now live — you can get started here.

Introducing DerivaDEX: DerivaDEX is a decentralized exchange for derivative contracts built on top of Ethereum. It’s a community-owned exchange with a liquidity-mining token model that puts control directly in the hands of users.

xMOON Exchange Now Live: You can now visit xmoon.exchange to bridge ETH to DAI to xDAI to xMOONs to reddit MOONs and back.

Podcasts

Balancer: A Protocol for Programmable Liquidity on Into the Ether: Fernando Martinelli, CEO and co-founder of Balancer, joins the podcast to talk about the recent launch of their product. Balancer allows users to pool ETH or ERC20s into balancer pools which are then used for exchanges on the product. Fernando explains the differences in Balancer versus Uniswap, most importantly that you can providing liquidity on up to 8 tokens and have unique allocation percentages on each. He then talks about the current liquidity mining for BAL token taking place and future plans for smart pools.

COMP Growth Hacking DeFi | Dan Elitzer on Bankless:

  • Why COMP went parabolic
  • Why DeFi tokens are real this time
  • The spark for the next bull run
  • DeFi tokens as rocket fuel
  • Why ETH is getting left behind (so far!)
  • The best yield farming opportunities
  • Superfluid yield farming
  • The downside of DeFi tokens
  • Where this is taking us next

DeFi vs Banks with Hasu on Bankless:

  • Hasu’s fave writers
  • Body and Spirit of crypto networks
  • Is Hasu an Etherean?
  • Why Bitcoin might not survive
  • How Maker is like a central bank
  • Is EIP1559 bullish for ETH?
  • The best Rick & Morty episode

Exploring Loopring with Matt Finestone on POV Crypto:

  • Is Loopring a network, a protocol, an app?
  • What are the attack vectors of Loopring?
  • What are the strengths and weaknesses of Loopring?
  • How does Loopring compare to Lightning?
  • Future plans of the Loopring

Money Lego: Techemy Capital launches investable DeFi portfolios on TokenSets on Crypto Conversations Podcast.

Nexus Mutual: The Decentralized Insurance for Ethereum on Epicenter.

Videos

What is Yield Farming by DeFi Dad:

Yield Farming, DeFi, Risks & Opportunities with Kain Warwick of Synthetix:

Compound Interview: Strategy Lead Calvin Liu Talks COMP Governance:

MISC

Forbes provides a quick overview of DeFi yield-farming and community member’s thoughts.

DappRadar 2020 Q2 Dapp Industry Review.

Phishing campaigns aimed at DeFi apps.

Dan Elitzer: Aquaponic yield farming.

DeFiSaver: experimenting with different settings for profits.

DeFi “yield farming” — a new trend in Crypto by Citadel team.

What is Yield Farming? in Zerion blog.

Yield farming tips in the Defiant.

Kain from Synthetix takes a trip down memory lane.

The risk appetite spectrum for DeFi:

As for upcoming events:

DeFi Conference: 5 Aug 2020

Crypto Fest: 30 Oct 2020

Blockchain Africa Conference: 18–19 Mar 2021

And lastly, meme:

This is not financial advice.

Subscribe to ‘Defi in Ether’ newsletter ⬙

Check out our latest biweekly report on Ethereum vol.46: 9th June — 23rd June.

For more updates, join Paradigm on Medium, Twitter, Telegram, and Reddit.

Ethereum
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