To the DeFi community,
This week, Eth L2 Starknet launched its public beta and announced an integration with the Opera web browser and DiversiFi, allowing users to trade digital assets on L2 directly from their browser. In addition to the substantial savings on gas costs, the partnership will seek to bring additional DeFi functionality to the user-friendly DeFi access point, including support for providing liquidity and earning yield on assets.
Exciting times for StarkEx! 🥳
Millions of users will be provided with affordable low-gas-cost transactions, and with Ethereum’s level of security.
How?@opera is integrating with @deversiFi’s exchange, powered by #StarkEx 🚀 https://t.co/XCHSjPNyan
— StarkWare (@StarkWareLtd) February 23, 2022
Yearn Finance added support for the Arbitrum L2, bringing gas savings and improved transaction throughput, while also allowing users to withdraw from Arbitrum using Binance or FTX.
Drumrollup please… 🥁
Yearn has launched on Arbitrum.
Just four months ago, Yearn added support for its second blockchain: Fantom.
Today, Yearn adds its first Ethereum L2: @Arbitrum.
— yearn.finance (@iearnfinance) February 23, 2022
Solana-based Zebec Pay raised $15 million from a group of investors including Alameda Research, Coinbase, and Circle. The platform enables real-time settlement for payroll and other payments use cases using USDC and other stablecoins, providing documentation and support to make such on-chain operations easier for businesses to account for in their existing frameworks and for tax and compliance purposes. Funds will go towards additional partnerships with crypto projects and additional value-added services for business customers.
🔥 FUNDRAISING ANNOUNCEMENT 🔥
👉Zebec raises $15M from top investors in private round!!! 🏁 https://t.co/rT4Dlz6R43
— Zebec Protocol ⛵ (@Zebec_HQ) February 22, 2022
And CeFi lending platform Celsius is getting in on the DeFi action with a $30 million allocation into Maple Finance. Maple uses a hybrid model where users can contribute to pools of capital designated for particular types of investments, while delegated analysts assess risk and help direct undercollateralized loans to promising projects.
@CelsiusNetwork join Maple as the first CeFi institution to launch a crypto-lending business on Maple's DeFi rails🔥🥞
Joining as a Pool Delegate, the Celsius team will route capital to fast-growing crypto institutions from an initial pool of $30M in wETHhttps://t.co/3kyLxKcEkX
— Maple Finance (@maplefinance) February 24, 2022
Maple and Celsius teaming up is one of a handful of early examples of the crossover between centralized and decentralized finance, offering an early glimpse of what the evolution of finance based on blockchain infrastructure could look like. Centralized lending services are always looking for the best possible source of yield for their customers, and Maple has developed a unique system of managing lending risk that, in theory, will beat returns from overcollateralized lending platforms while reducing the overhead for making and maintaining such loans and unlocking new ways of attracting and rewarding delegates who assess risk.
We can envision this framework playing out on a much larger scale as an analogy for widespread DeFi adoption – one basket of protocols or services focused on providing a simple, easy-to-use user experience, managing the particulars of KYC and compliance reporting, and serving as a primary sales funnel to a mostly DeFi back end, with a second based focused on technical execution and managing risk in an effective but low-cost way.
Instead of relying on a handful of banks at massive scale to subsume all of these roles, seek rent, and limit their focus to only the most profitable or palatable opportunities, DeFi offers the opportunity to break these essential financial functions into constituent parts that can focus on a far wider set of priorities. Ultimately, such a system could allow humanity to work to address inequality, climate change, and a host of other pressing issues more quickly and directly, and without funneling the profits from doing so to a handful of executives or shareholders.
There will be many roadblocks and challenges along the way, but the opportunity to use our financial infrastructure to lift up communities and solve big problems the world over is too good to pass up. Keep your eyes on the prize!
Highest Yields: BlockFi at 8.50% APY, Nexo Lend at 8.00% APY
Cheapest Loans: Aave at 3.60% APY, Compound at 4.10% APY
DAI Savings Rate: 0.00%
Base Fee: 0.00%
ETH Stability Fee: 2.00%
USDC Stability Fee: 0.00%
WBTC Stability Fee: 2.00%
Highest Yields: Celsius at 8.5% APY, Nexo Lend at 8.00% APY
Total Value Locked: $70.95B (down -18.78% since last week)
DeFi Market Cap: $106.49B (down -3.4%)
DEX Weekly Volume: $19.07B (up 18.67%)
Total DeFi Users: 4,425,760 (up 0.69%)
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Alex is a Content Writer at Circle, with previous experience at tech startups, Fortune 500 corporations, and as a freelance writer and analyst. Interests include cutting-edge technologies in blockchain, energy, supply chains, transportation, urban living, and more and he has been in the crypto community since 2014.