To the DeFi community,
This week, Aave and Fireblocks announced the launch of the Aave Arc permissioned DeFi marketplace, allowing KYC’d institutional customers to be whitelisted into a walled garden of other verified institutional users.
#Aave has launched its institutional product, #AaveArc
It will initially be open to 30 institutions that have been whitelisted by #Fireblocks.#Bitcoin and #Ethereum saw a wave of institutional interest amid crypto's 2021 boom, but #DeFi is still unexplored territory to most. pic.twitter.com/r5Ajn8gJjY
— CryptoKevin (@cryptopediaK7) January 5, 2022
The Incentive Ecosystem Foundation, a community-led group focused on developing the Serum network ecosystem on Solana announced a $100m fundraise to support growth and development from a combination of traditional finance and digital asset firms.
Watch out serum shorts https://t.co/axdzSidlq1
— Awawat (@Awawat_Trades) January 7, 2022
The Yearn Finance community passed a vote that will require YFI to be locked to participate in governance, with the benefit of receiving staking rewards. The tokenomics design is inspired by the Curve Finance design, with higher annualized rewards for those who choose to lock tokens for longer.
A governance token is an investment in future value, even if revenue is currently being reinvested for growth (just like non-dividend paying growth stocks). e.g., YFI was long a "useless governance token" but we just voted to turn on the spigot – rev. starts going to YFI holders.
— 0x7d54 (@0x7d54) January 4, 2022
And Goldfinch Finance, focused on bringing undercollateralized loans to DeFi, announced a fundraise of $25 million led by a16z. Funds will be controlled by the newly formed Goldfinch Foundation, and will go towards supporting improving the protocol and helping more customers get DeFi loans.
— Goldfinch (@goldfinch_fi) January 6, 2022
Two opposite ends of the market are getting a better deal in DeFi this week; institutions get access to one of the first true tastes of the power and efficiency of smart contracts on blockchain infrastructure via Aave Arc, and Goldfinch adds resources to continue leveraging the power of the community to underwrite and unlock undercollateralized DeFi loans on a large scale for the first time.
While the implications for the medium-term addressable market are weighted to the institutional side, the ideal and promise of decentralized finance are deeply embodied in the mission and implementation being pursued by Goldfinch. What’s more, in the long term, the potential to unlock and generate wealth for a bigger slice of the world population is likely far greater in the bottom-up approach to financial access being pursued by the Goldfinch team.
At its heart, credit has always been grounded in community, and it’s exciting to see the intersection of community input and governance combined with the huge reduction in overhead DeFi enables being used to make access to capital more equitable across the globe. There are many experiments in flight today exploring the capabilities, resilience, capacity for intelligent decision making and staying power of different communities, organized in different ways. But for my money, the real opportunity to make DeFi a force for good in the world is that presented by giving the global community something the West has enjoyed easy access to for generations – a partnership with an engaged organization focused on helping customers achieve commercial success through access to fair financing. DeFi is for dreamers!
Highest Yields: BlockFi at 8.50% APY, Nexo Lend at 8.00% APY
Cheapest Loans: Aave at 3.89% APY, Compound at 4.77% 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 8.95% APY, Nexo Lend at 8.00% APY
Total Value Locked: $94.05B (down -5.54% since last week)
DeFi Market Cap: $140.88B (down -8.11%)
DEX Weekly Volume: $21.38B (up 18.84%)
Total DeFi Users: 4,317,600 (up 0.97%)
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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.