Important DeFi News
Early in the week, Curve Finance’s native $ETH pools were exploited and drained. Among them was its CRV/ETH pool, resulting in a decrease in onchain liquidity for $CRV. The situation has brought eyes back onto its founder’s large $78M stablecoin debt backed by $CRV on various platforms.
In an attempt to prevent the liquidation of his $CRV collateralized loan, which sits down 40% below the current market price, Michael conducted various OTC swaps, selling his $CRV tokens at a discounted price of $0.4, worth in total $25.6M
Optimism overtook Arbitrum in daily transactions shortly after Worldcoin’s launch
Spark Protocol hit its $20M debt ceiling, with $58M in total TVL, after 3 months of launch
Velodrome V2, a DEX, has generated $1.1M in protocol fees, with only 4% attributed to their incentive program
Ethena Labs, a decentralized stablecoin protocol, will be building its first perpetuals exchange on the Synthetix platform
Justin Sun announced a partnership between Tron and Curve after buying $2.9M if $CRV from its founder. His plans are to introduce an $stUSDT pool on Curve.
dYdX has passed a vote to reduce LP rewards by 50% and redirect them to treasury. The vote also increased market maker rebates by 70%. This effectively reduces $DYDX emissions by 25% while maintaining LP incentive amount for market makers.
$SEI launchpool on Binance is live, and will emit 3% of total supply in 30 days
Lyra Finance has announced Lyra V2: a spot, perpetuals and options trading platform running on its own Optimism Superchain. The upgrade comes with various additional trading features and improved trading UX comparable to CEXes
Level Finance launched Omni-Chain Staking, introducing staking on BNB Chain and Arbitrum
Uniswap has removed $HEX from its interface following the SEC’s lawsuit against it
Sushiswap and Rebase, a bridge between Ethereum and Base, has gone live on Base. Lending protocol Inverse Finance is set to follow and will be launching on Base soon
L1 blockchain Sui Network has enabled liquid staking for $SUI
PancakeSwap has introduced revenue sharing to fixed-term $CAKE stakers
Trader Joe, a DEX, has launched on-chain limit orders
Raft Finance is set to launch $R pegkeeper mechanism that will replace collateral redemption, allowing users to keep their LSDFi collateral while maintaining $R stablecoin peg
Drift protocol has introduced Drift Liquidity Provider (DLP) where users can provide liquidity for perpetual markets of their choice in exchange for a share of trading fees
Evmos 2.0 has gone live, bridging cross-chain liquidity for EVMs through EVM Extensions
Chronos Finance announces the release of its V2 platform
L1 blockchain Celo is set to migrate to Ethereum L2 after the successful proposal
Mars Protocol has deployed credit protocol Red Bank on Neutron
BetSwirl’s V2 Staking Pools are now live and emitting rewards, allowing users to earn a share of protocol revenue
Governance Proposals
Aave DAO is taking a temperature check on raising the slashing percentage on stkAAVE from 30% to 60% and reducing emissions to stakers from 550 to 470 $AAVE per day
Mantle DAO is voting on establishing a Mantle Economics Committee focused on decision making for its treasury assets. Starting with a 40k $ETH to $stETH conversion in a partnership with Lido that would bootstrap Mantle’s LST ecosystem
A proposal on Aave is recommending to increase of $USDT supply cap from 200M to to 320M
Aave DAO is voting to disable borrowing against $CRV, with the vote currently a 100% in favour of the proposal
Optimism DAO is proposing to re-purpose 2.5M $OP to Experiments and Builders proposals categories, increasing their allocated budget from 1.0M $OP and 0 $OP respectively
Abracadabra DAO has frozen $CRV assets, and is currently voting on interest rate adjustments for $CRV assets, capping interest rates at 150%. This vote is on track to pass; however a previous vote failed with interest rates capped at 200%
QiDAO is voting to migrate $QI LP from Polygon to Ethereum, with the vote on track to pass
Balancer DAO is proposing a launchpad to help protocols launch veToken using Balancer’s ve8020
ApecoinDAO proposes Ombud to monitor and adjudicate DAO officials
Aerodrome will launch soon after Base’s public launch, its tokenomics will be announced this week
Retro Finance’s Epoch 1 $oRetro emissions are live
Next Week's Alpha
Frax V3 is set to launch in less than 30 days according to its founder. The update is focused on its fiat stablecoin products, bringing on elements of RWA yield and an innovative in-house peg stability mechanism.
MakerDAO is set to temporarily increase $DAI yield 8% with the introduction of Enhanced DAI Savings Rate (EDSR) in an attempt to increase $DAI demand
Spark Protocol will increase its $DAI debt ceiling from 20M to 200M
Valio, an onchain asset management protocol is set to go live on August 7th
GMX V2 is rumored to be launched in the coming week
$GAL is set to unlock 16.36% of the circulating supply worth $8.91M on 5th August
Balancer is rumored to be deployed on Avalanche
NFT-focused blockchain Palm Network will transition from an Ethereum sidechain to a Polygon ZK Supernet in the coming weeks
News
Tether reported $850M net profit for Q2 2023
Sequoia Capital has cut the size of its crypto fund from $585M to $200M
Consensys has released Fuzzing, a tool to automate smart contract security testing
Coinbase International clocked in $1.96B in trading volume last month
Microstrategy has recently increased its $BTC holdings to 152.8k, and plans to raise an additional $750M to purchase more $BTC
Grayscale reports $41M in revenue for July 2023
The Bank of Korea has chosen Jeju, Busan and Incheon as a private target CBDC testbed
SEC has sued Hex founder Richard Heart for unregistered securities and fraud allegations
Despite crypto ban, China remains Binance’s biggest market with $90B in volume
GameStop is set to terminate service for crypto wallets starting November
Volitility Shares, Bitwise, VanEck and three other entities have filed applications with the SEC for an $ETH ETF
Direxion has filed for combined $BTC and $ETH futures fund
Bankrupt crypto lender BlockFi has obtained conditional approval for reorganization plan, with users may see funds returned soon
HashKey is Hong Kong’s first licensed retail crypto exchange
Consensys sued over MetaMask intellectual property
KuCoin to halt $BTC and $LTC mining services
Binance lists zero-fee BTC/FDUSD and ETH/FDUSD trading pairs
There are rumours that ‘Coins’ section will be added to X
FTX has proposed to restart crypto exchange for international customers
FTX and Genesis reach agreement in bankruptcy dispute
Binance obtains operational license in Dubai
IRS says staking rewards should count as taxable income
Worldcoin has been suspended in Kenya, one of its biggest markets for sign-ups so far
German authorities and French privacy watchdogs have probed Worldcoin project over privacy concerns
Tweets of the Week
Curve Finance exploit overview by Overcollateralized Jonny
Review of FTX’s draft reorganization plan by wassielawyer
On-chain investigation into the Multichain exploiter by DeFi^2
Research report on EIP-4844 by ASXN