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.

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!

– Cooper


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Top Stories

Bancor Announces New Governance Upgrade

DeFi AMM released details of a new governance upgrade and new features for its liquidity protocol

Boardroom raises $2.2M Seed Round

Universal governance dashboard Boardroom raised $2.2M seed from leading DeFi investors

Kwenta Launches Derivatives Trading

New exchange built on Synthetix launched derivatives trading for the full suite of Synths

Dharma Publishes First Uniswap Governance Proposal

DeFi’s CashApp released first Uniswap governance proposal to reduce quorum and proposal thresholds

Cream Finance delists FTT

DeFi lending protocol Cream Finance delisted FTX’s exchange token amid governance contentions

 


In Other News…


Stat Box

  • 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%)

Bonus Reads


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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