To the DeFi community,

This week, Harmony unveiled a $300 million fund to support development of startups working in the Harmony ecosystem, with specific funding for DAOs, bug bounties, hackathons, partnerships, and more. The fund will plan to pay out more than $180 million in its first year, with the full amount to be disbursed over a four year period.

 

 

Tempus Finance has received a Balancer Grant for $50,000 to build an AMM for future yields, splitting deposited interest-bearing tokens like stETH into principal and yield tokens that can be independently traded. It’s fascinating that yield and interest rate swaps are starting to crop up all over DeFi, as these instruments are some of the most recent and complex innovations in traditional financial markets.

 

Lido announced the launch of SOL staking, allowing SOL holders to earn staking rewards while retaining the liquidity of their underlying tokens in the form of stSOL. stSOL will be integrated into DeFi applications throughout the Solana ecosystem, and governance will be decentralized with execution managed via a multisig on Solana.

 

And of course, this week Bitcoin became a national currency in El Salvador, with every citizen eligible for $30 worth of BTC and, notably, a substantial price dip just as the national currency designation came online. With merchants like McDonalds and Pizza Hut accepting Bitcoin payments at scale with the backing of a national government, it’s more proof that cryptocurrencies are going mainstream and will impact the world in massive ways.

 

The world of crypto and DeFi in particular is one of the fastest-paced, most exciting industries humanity has ever developed. It’s also highly contentious and experimental, with lots of competing ideas over the best way to do just about anything. The good news is, lots of investors both big and small are ready to put their money where their mouths are, in the form of several new funds just in the past few weeks totalling well over a billion dollars to be directed at DeFi development. It’s especially exciting to see these funds being organized at the protocol and project level, where they can interface directly and deeply with builders and better align long-term incentives of users, investors, and the push for future growth. It’s good for innovation, good for adoption, and might just start to help straighten out wealth distribution over time, too.

It seems unlikely that BTC transaction volume for everyday payments in El Salvador will become a significant factor in the national economy for the same old reasons; volatile assets are never a good fit for casually spent currency, because users quickly develop an expectation that what’s in their pocket could buy either much more or much less a year from now, fostering all kinds of perverse incentives not compatible with stable economic life. But the adoption is a crucial symbolic victory, making it far easier for additional nations to adopt or take a closer look at blockchain-based answers to their needs. How long before the massive innovation and increased efficiency of DeFi for asset management, financial inclusion, and fair governance make the same kind of inroads? It just might be faster than you think.

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Interest Rates

DAI

Highest Yields: BlockFi at 8.50% APY, Nexo Lend at 8% APY

Cheapest LoansCompound at 4.29% APY, Aave at 5.18% 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 Yields: Celsius at 8.88% APY, Ledn at 8.50% APY

Cheapest LoansCompound at 4.58% APY, Aave at 5.95% APY

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Stat Box

Total Value Locked$86.58B (down -12.1% since last week)

DeFi Market Cap$123.42B (down -2.26%)

DEX Weekly Volume$21.01B (up 35.5%)

DAI Supply6.20B (up 1.81%)

Total DeFi Users3,298,200 (up 0.87%)

Bonus Reads

[Ben Giove – Bankless] – The Essential Guide to Arbitrum

[Anthony Sassano – The Daily Gwei] Web3 is Coming – The Daily Gwei #331

[Justin Barlow – The TIE] – A Deep Dive into the Polygon (Matic) Ecosystem

[Brady Dale – The Defiant] – Coinbase Braces for SEC Action as Regulatory Crackdown on DeFi Intensifies

[Fabian Klauder – DeFi Times] – El Salvador Recognizes Bitcoin As Legal Tender