The Decentralized Finance (DeFi) sector continues to attract increased attention from cryptocurrency investors and traders. ForkLog collected the most important events and news of the last three weeks in a digest.
Key indicators of the DeFi segment
The total value of crypto assets blocked in applications (TVL) reached $ 25 billion on January 21. At the time of writing, the figure is $ 23.47 billion.
The pioneer of the Maker segment leads by a wide margin from another landing service – Aave. TVL of these projects is $ 4.2 billion and $ 3.3 billion, respectively. They are followed by the largest decentralized exchange Uniswap ($ 2.94 billion).
Against the backdrop of the broader market growth, the largest DeFi assets have shown strong growth since the beginning of the year – Curve (CRV) has risen in price by 245%, SushiSwap (SUSHI) – by 109%.
The total value of tokenized bitcoins is $ 4.89 billion. Wrapped Bitcoin (WBTC) leads this segment by a wide margin from competitors. Its share among “bitcoins on the air” is 73.3%.
The combined market capitalization of the segment’s top 100 tokens is $ 28.6 billion, according to DeFi Market Cap.
Trading volume on decentralized exchanges (DEX) over the past 30 days was $ 46.2 billion.
Uniswap accounts for 48.9% of the segment’s turnover. The second largest DEX by turnover is SushiSwap (21%), the third is Curve (10.8%).
Synthetix Launches Ethereum Level 2 Optimism Solution
Synthetix, a synthetic asset platform, has launched an Ethereum L2 Optimistic Ethereum solution.
Smart contracts of the Synthetix decentralized platform have been converted to the Optimistic Virtual Machine (OVM) format. Users can stake the native SNX token using the new service.
“This first phase of migration was designed for small SNX holders who may find it too expensive to interact with the Tier 1 network due to the high cost of gas,” reads the Synthetix blog.
The developers emphasized that the launch on the mainnet is preliminary. This means that errors, crashes and other problems are possible.
ShapeShift will switch to DeFi model to remove mandatory user registrations
The ShapeShift cryptocurrency platform has integrated with a number of DEXs to free users from burdensome KYC procedures.
“Users will now be able to trade directly through external protocols without relying on ShapeShift as an intermediary. This should make it easier to interact with the platform and improve the user experience, ”said representatives of the platform.
Ethereum and ERC-20 tokens are already available for trading on DEX through the ShapeShift interface. For each transaction, users will be credited with FOX tokens.
The company has promised to add support for Bitcoin in the first quarter of 2021. ShapeShift representatives stressed that it will be BTC, and not its tokenized Ethereum version.
Kyber Network announced a major protocol update
The Kyber Network developers have announced a move to version 3.0, which will transform DEX into a “hub of targeted liquidity protocols for various DeFi use cases.”
The project team will launch a so-called dynamic market maker. It is supposed to mitigate so-called “volatile losses” resulting from price volatility and improve the capital efficiency of the platform.
Depending on market conditions, the algorithm will optimize commission rates for takers and liquidity providers. A programmable pricing curve mechanism will also be involved.
The transition to KyberNetwork 3.0 will take place in three stages – Katana and Kaizen. The first is expected in the first – second quarter and involves the launch of KyberDMM and proposals for changes in KyberDAO and KNC. Completion of the transition is scheduled for the third quarter of 2021.
yEarn.Finance has proposed to release 6666 YFI tokens
11 key participants in the DeFi project yEarn.Finance proposed to increase the emission of YFI by 6666 tokens (~ $ 200 million). The funds will go towards rewarding core developers and creating a contingency fund for distribution under community supervision.
A third of the 6666 YFIs are earmarked to reward early investors and developers. Two-thirds – 4444 YFI – will be allocated to create a reserve fund under the control of the yEarn.Finance operating fund.
The funds from the reserve fund are intended to finance the following areas:
- creating incentives for developers;
- liquidity mining programs;
- staking rewards;
- attraction of specialists and absorption of third-party protocols;
- cross-protocol incentives to strengthen collaboration across the project ecosystem.
The authors of the initiative believe that yEarn.Finance, through the implementation of the proposal, will be able to retain existing and attract new developers, as well as maintain a competitive position in the sector.
Coinbase and Polychain Capital Support the Launch of Saddle Finance Decentralized Exchange
Saddle Finance, a decentralized exchange based on the AMM model, was launched.
The platform has raised $ 4.3 million in seed funding from Framework Ventures, Polychain Capital, Electric Capital, Coinbase Ventures, Nascent, Dragonfly Capital, Alameda Research, and Divergence Ventures.
The new DEX will initially focus on the automatic exchange of so-called “bitcoins on the air” – renBTC, WBTC, sBTC and tBTC. In the future, the developers plan to add trading in other Ethereum tokens and stablecoins.
Saddle works using a Proof of Authority mechanism. The project also plans to implement the concept of “virtual synths” from Synthetix.
Saddle Finance ran into trouble shortly after launching – one of the traders managed to make 12.6x per trade. The user bought 4.3 WBTC and subsequently bought back the coins at a price several times lower than the market price.
The Quantstamp audit showed Saddle’s susceptibility to attack vectors previously used against Curve.
Startup Maps.me Raises $ 50 Million to Create DeFi Ecosystem
The Maps.me project behind the offline navigation service has raised $ 50 million to build the DeFi ecosystem.
The seed round was led by Alameda Research. Genesis Trading and CMS Holdings also participated in the funding round.
The funds raised will be used to create a multi-currency wallet built into the application with the function of profitable farming and the possibility of cashback.
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