To the DeFi Community,
The sector’s most explosive quarter to date is in the books.
Q3 of 2020 shaped up to be one for the ages, with virtually every metric from TVL to token prices and unique users skyrocketing by more than 20x from the previous quarter. For a full rundown on just how parabolic the growth was, check out this awesome report by Lucas on Bankless.
While the hype has admittedly started to calm down, the ripples of DeFi are continuing to make waves in every corner of the wider web3 ecosystem.
This week’s crypto Twitter conversation was flooded by big brains discussing the tradeoffs, advantages, and designs of different AMMs, a topic solidifying DEXs permanent role in the trading of magic internet money.
It's pretty neat now that decentralized exchanges have had so much volume that a lot of the conversation went from debating centralized vs decentralized exchanges to debating what is/will be the more successful DEX model.
— Linda Xie (@ljxie) October 15, 2020
While the yield chasers are scrambling to keep their harvests ripe, there’s certainly been no shortage of new projects going to market. In the past week alone, we’ve seen Kwenta, Honeyswap and Barn Bridge open their doors, the last two offering liquidity mining programs for HNY and BOND tokens respectively.
The biggest takeaway here is that the days of earning a sizeable position in new projects through farming may be a thing of the past. With any remotely popular project seeing millions of dollars flood into smart contracts in the first 24 hours, small farmers should be wary that even $10,000 worth of capital is commonly only netting single digits worth of tokens on a weekly basis.
Now, don’t get me wrong. 100% APY is nothing to cry about. But, let us use the end of Q4 to explore new forms of token distribution, and get back on track from spinning shitcoins into curating value into protocols pushing forward the future of finance.
Until then, stay hungry!
This Week in DeFi is now supported by Aave!
- Highest Yields: Fulcrum at 16.6%, dYdX at 4.1% APY or Aave at 4.1% APY
- Cheapest Loan: Maker at 2.00% w/ ETH collateral or Compound at 3.9% (earn it all back in COMP rebates!)
- MakerDAO Updates
- Dai Savings Rate: 0.00%
- Base Fee: 0.00%
- ETH Stability Fee: 2.00%
- USDC Stability Fee: 4.00%
- WBTC Stability Fee: 4.00%
- Updates: Executive vote live to add ETH-B Vault with stability fee at 6%
- Highest Yield: Fulcrum at 15.8% or BlockFi at 8.60% (centralized)
- Cheapest Loan: Compound at 2.1% (earn 3.93% APY in COMP rebates)
Find more lending & borrowing rates on our Rates page!
DeFi AMM released details of a new governance upgrade and new features for its liquidity protocol
Universal governance dashboard Boardroom raised $2.2M seed from leading DeFi investors
New exchange built on Synthetix launched derivatives trading for the full suite of Synths
DeFi’s CashApp released first Uniswap governance proposal to reduce quorum and proposal thresholds
DeFi lending protocol Cream Finance delisted FTX’s exchange token amid governance contentions
In Other News…
- MetaMask reached 1M users and native token swaps
- Filecoin investors experienced wild first day of trading
- Coinbase L2 is latest in Ethereum scaling boom
- Total Value Locked: $11.02B (up +3.9% from last week)
- DeFi Market Cap: $15.9B (down -1.8%)
- DEX Weekly volume: $2.8B (down -15%)
- DAI supply: 905.7M (up +2.4%)
- Total DeFi users: 622K (up +27%)
- [Lucas Campbell – Bankless] Q3 Token Report – The Rise of the Ownership Economy
- [Andre Cronje – yEarn] Crypto economics, Perpetual liquidity, and Impermanent Loss Offsets
- [Olga Kerif – Bloomberg] DeFi boom makes Uniswap most desired crypto exchange
- [Cooper Turley – The Defiant] Blue Kirby Sign Off Stains Anon DeFi Projects
- [Benjamin Cowen – Bankless] When Bitcoin Moon?
Shoutout to Aave for supporting This Week in DeFi!
Aave is a leading lending protocol supporting dozens of the top DeFi tokens. Aave is currently undergoing its migration from LEND to AAVE which you can do directly through the migration portal!
We’ve done an extensive amount of coverage on Aavenomics – a new suite of protocol upgrades that incentives protocol safety through AAVE rewards and protocol fees. The best part about Aavenomics is that all of its parameters – including the logistics of Aave yield farming – are governed by tokenholders. There’s a ton of good activity happening on the Aave governance forum and we’d definitely recommend checking it out if you fancy yourself to be an Aavenger.
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Cooper is the Editor of DeFi Rate and an active contributor to leading DeFi media outlets like The Defiant, DeFi Pulse, and Bankless. He works with early-stage teams through Fire Eyes DAO to incubate governance models and grassroots community development. He is an ambassador to Set Protocol and an author of a weekly publication called Token Tuesdays. To stay up with Cooper, follow him on Twitter.