To the DeFi community,

This week, Gelato Network launched the G-UNI Uniswap LP token, one of the first projects designed to take advantage of the advanced rebalancing and price range specification capabilities introduced in Uniswap V3. G-UNI also automatically reinvests LP fee earnings, increasing capital efficiency and overall returns even further.

BitDAO, spun off from derivatives exchange ByBit, raised $230 million in a funding round led by Peter Thiel, Pantera Capital, and Dragonfly Capital. BitDAO plans to use the funds to support DeFi growth and set up DeFi R&D centers around the world. 

The Polygon ecosystem keeps on growing, with bZx officially launching on the Eth sidechain scaling solution and Kyber announcing big plans to bring more liquidity to DeFi on the network. Polygon Scan, a block explorer in the style of Etherscan, is also now live, making it easier to follow token movements and block activity on the most popular Eth scaling option to date.

And derivatives exchange dYdX raised $65 million in a series C funding round led by VC firm Paradigm, along with CMS Holdings, CMT Digital, and Electric Capital. dYdX will use the fresh capital to improve liquidity during high volatility, expand perpetual contract offerings, develop a mobile app, and further decentralize the protocol.

By now you’ve heard about dozens of DeFi rugs, and if you’re an adventurous investor may have even been impacted by one yourself. If so, you may feel a bit better being in good company; even the likes of Mark Cuban, a high profile celebrity investor that’s finally seen the crypto and DeFi light, can be taken for a ride and forced to watch their investment dissolve before their eyes.

Nevertheless, if you’ve been in the DeFi space for more than a few months, there’s a good chance your portfolio is up, or at least still intact. Mark’s sad tale is a reminder that the most experimental projects might not be the best place to park capital even as a simple LP, and that astronomical APY figures should serve more as a warning than a potential ticket to financial freedom. 

Algorithmic stablecoins have proven incredibly tricky to nail down, and various iterations have mostly ended in losses for experiment participants. If you’re looking into DeFi, this category might be best left to those with capital to burn until a more reliable framework is established and battle tested. Can’t make an omelet without breaking a few eggs 🙂

 

Thanks to our partner:
Nexo – Unlock the power of your crypto with up to 12% interest and borrowing starting at 6.9%. Read our Nexo review.

Interest Rates

DAI

Highest Yields: Nexo Lend at 10% APY, Fulcrum at 8.87% APY

Cheapest LoansAave at 3.72% APY, Compound at 4.40% APY

MakerDAO Updates

DAI Savings Rate: 0.00%

Base Fee: 0.00%

ETH Stability Fee: 5.50%

USDC Stability Fee: 0.00%

WBTC Stability Fee: 4.50%

USDC

Highest YieldsNexo Lend at 10% APY, Celsius at 9.23% APY

Cheapest Loans: Aave at 3.29% APY, Compound at 3.70% APY

Top Stories

RenVM Integrates with Solana for Interoperability

Pendle Mainnet Announcement

SynFutures Raises $14M in Series A Funding

Treasury Diversification With Range Tokens

AdEx Network and Enzyme Finance Strategic Partnership Bridging Advertising and DeFi

Stat Box

Total Value Locked$52.98B (down -10.32% since last week)

DeFi Market Cap$79.06B (down -1.84%)

DEX Weekly Volume$13.73B (down -25.4%)

DAI Supply4.98B (up 2.05%)

Total DeFi Users2,816,300 (up 2.54%)

Bonus Reads

[Dan Kahan – The Defiant] – InstaDapp Releases Governance Token with 55% for Community Members

[Anthony Sassano – The Daily Gwei] – Recency Bias – The Daily Gwei #272

[Chris Powers – Dose of DeFi] – Algo Stablecoin death spiral; Swapr Beta launch

[Ryan Adams – Bankless] – Are Productive DeFi Tokens Better?

[Fabian Klauder – DeFi Times] – There Will Be a DAO For Everyone