Hello Defiers! Here’s what we are covering today,
The Defiant Essay
Most Read on The Defiant
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TLDR Incentives work. Or at least they do in terms of wooing DeFi protocols to deploy on other blockchains. Case and point, Curve Finance, the automated market maker, and Aave, the leading DeFi lending project, have each deployed their offerings on Avalanche as a part of the blockchain’s $180M incentive program called Avalanche Rush.
SCALING SOLUTION It’s the first time Aave has ported to a chain other than Polygon, which bills itself as a scaling solution particularly for Ethereum, DeFi’s leading blockchain in TVL terms. Aave already ranks first in terms of total value locked (TVL) at $1.26B on Avalanche, according to DeFi Llama. Trader Joe, an Avalanche-native decentralized exchange (DEX), trails Aave in TVL, by only $180M. Curve is fifth in Avalanche’s TVL rankings at $274.26M.
TVL Avalanche’s overall TVL has skyrocketed to $4.55B as of Oct. 6, a figure more than 14 times larger than it was on Aug. 18 when Avalanche Rush was announced.
NEWS New collateralized stablecoin, Magic Internet Money (MIM) is challenging MakerDAO, the grandaddy protocol of DeFi. MIM, issued by lending protocol Abracadabra, broke $1B in supply on Oct. 5, placing it seventh overall in terms of stablecoin market cap, according to CoinGecko.
REMARKABLE GROWTH That’s $5.39B behind Maker’s DAI stablecoin supply. So while MIM still has a ways to go, the stablecoin has shown remarkable growth since launching in May. For contrast, Maker launched in 2017. Yet even though it’s behind in supply, Abracadabra has surpassed the lending incumbent in terms of fees generated, according to the site byebyedai.money.
LOANS Fees on Abracadabra come from the interest paid on the protocol’s loans. If holders of SPELL, Abracadabra’s governance token, stake their asset they receive sSPELL, which accrues 75% of the interest fees.
The Defiant Essay
Call it a manifesto, a warning, or a polemic… The truth is, this remarkable two-part essay by Connor Speliscy and Holmes Wilson is all of those things and more — a cri de coeur as DeFi faces an inflection point. In Part 2, they issue a call to action and lay out a primer for mobilizing the community to rescue the movement from regulation that could significantly impede, or even cripple, the crypto industry.
ADVOCACY The crypto industry has huge advantages over other information technology industries. Our organizational tools, capital, and passionate grassroots support (from highly connected retail investors and early adopters) enable us to run substantial education and advocacy campaigns. Historically, new entrants were nowhere near as well-equipped to advocate for their technology and were overwhelmingly outmatched by incumbents.
FUNDING The following are some ways to mobilize these inherent advantages to achieve political safety:
Fund Crypto Public Goods Tech
Funding and promoting initiatives that highlight the crypto industry’s potential for good helps improve the narrative for crypto among policymakers and regulators. That increases the likelihood they will progressively adopt a more favorable outlook for crypto and provide support for crypto advocacy organizations.
These initiatives should also be demonstrably helpful for the non-crypto public.
Potential Next Steps
Support existing public good grants programs
Create your own public goods grants program
SUPPORT Create a dedicated grants program that funds projects that accelerate crypto public goods technology. This is likely more appropriate for an organization with more resources, but groups like Uniswap, Compound, Aave, the Interchain Foundation, and the Ethereum Foundation have grants programs which, at least in part, support these initiatives. For instance, your grants program could support projects that are providing public goods that could not be provided without crypto.
PieDAO Staking just went live! Designed to align incentives with long-term DAO members, the new system encourages participation by rewarding active governance members with monthly cashflows.
Referred to as ‘Governance Mining’, PieDAO distributes its profits (including protocol fees and yield farming with the treasury’s assets) in the form of $SLICE - an index which can include $BAL, $CRV, $SUSHI, and other farmed assets. The longer you stake for, the more voting power you get - and the bigger your $SLICE.
Reserved just for those who stake during the first month, there’s a stacked-up $600k+ worth of rewards, waiting to be distributed at the end of the 30-day period.
Want to participate?
You can! Get some DOUGH, stake it, vote on at least one issue per month, and receive your paycheck. Sounds simple? It is!
The future of work is here, and it’s driven by DAOs.
🧑💻 🦄 🌈 NYC DeFi Hub: The Defiant has just launched Colony, a co-working space in Dumbo for teams building DeFi and Web3 to join and find a community. There are 20 desks in an open floor plan at a reformed factory building. Fill out this form if you’re interested in working there or sponsoring the space.
The Federal Deposit Insurance Corp. (FDIC), a key U.S. banking regulator, is studying whether certain stablecoins might be eligible for its coverage, five people familiar with the agency’s thinking said.
Financial services company MoneyGram International has partnered with the Stellar Development Foundation to enable consumers to send money using Circle’s popular stablecoin, USD Coin (USDC), and convert directly to and from fiat.
Wait, NFT perpetuals? Yes, that’s right! With Futureswap V4 you’ll be able to trade leveraged perpetuals on CryptoPunks and any other NFTs!
Hashes is a new kind of NFT: a foundational construct that can serve as an origin point for users, while providing content creators an infinite source of entropy and versatile network of distribution.
CoinDesk @CoinDeskEXCLUSIVE: @artblocks_io, the generative art market where chromatic squiggles sell for millions, raised $6 million in an equity round led by @trueventures, CEO Erick Calderon told CoinDesk's "Opinionated" podcast. @realDannyNelson reports https://t.co/miibTuCNGK
Most Read in The Defiant
Crypto Endangered: Confronting An Existential Threat In Part 1 of this Defiant Essay, Connor Spelliscy and Holmes Wilson argue that the cryptocurrency industry is confronting an existential crisis. The cause: unwise and unjustified regulation that could thwart the promise of the crypto movement.
Vibe! Cryptoadz Floor Price Soars as Snoop Dogg and Other NFT Buyers Pile In If someone types “!vibe” into Cryptoadz’s Discord, a bot prints out what looks strangely like five turtles bobbing their heads.
XRP Holders to Get Huge Airdrop of New Blockchain Songbird Not only is DOGE a very good boy, its coin is about to be very smart, too — as in, smart contract-ready.
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🧑💻 ✍️ Stories in The Defiant are written by Brady Dale, Owen Fernau, Bailey Reutzel, DeFiDad and yyctrader, and edited by Edward Robinson, Bailey Reutzel, and Camila Russo. Videos are produced by Robin Schmidt, Alp Gasimov and Daniel Flynn. Podcast is led by Camila, edited by Alp.
The Defiant is a daily newsletter focusing on decentralized finance, a new financial system that’s being built on top of open blockchains. The space is evolving at breakneck speed and revolutionizing tech and money. Sign up to learn more and keep up on the latest, most interesting developments. Subscribers get full access, while free signups get only part of the content. Click here to pay with DAI (for $100/yr) or sub with fiat by clicking on the button above ($15/mo, $150/yr.