Hello Defiers! Here’s what we are covering today,
🔥 EIP-1559 Day 2: Here’s Primers on How the Upgrade Works
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Balancer, one of the leading DeFi automated market makers (AMM) for multiple tokens. Dive into their pools at
Kraken, consistently rated the best and most secure cryptocurrency exchange, which can get you from fiat to DeFi
Aave, an open-source and non-custodial liquidity protocol where users can earn interest on deposits and borrow assets.
The DeFi Pulse Index, by Index Coop - DPI is the easiest way to capture the upside of DeFi with the benefit of diversification. Buy DPI today on your favorite DEX.
TLDR The Ethereum market is on fire, at least proverbially speaking. Over the first eight hours since EIP-1559 was implemented, thus changing the transaction fee mechanism of Ethereum, 2,458 ETH, or $6.9M at ETH’s current price of around $2.8K, had been burned.
GAS The proposal, which went into effect with the London hard fork at 8:34 am EST on Aug. 5, was a long-awaited change for making Ethereum’s gas fees more predictable. It does this by implementing a base gas fee that gets permanently burned during each transaction.
UNISWAP Now ETH is being burned at a rate of 3.42 ETH per minute. DeFi is a big contributor to ETH’s burn: Uniswap protocol founder Hayden Adams tweeted that within the first two hours of EIP-1559’s launch, Uniswap burned 80 ETH and at this rate would burn 350K ETH, or around $1B per year.
TLDR In the latest sign that Wall Street big shots love crypto, Point72 Ventures, the early-stage investment firm founded by hedge fund billionaire Steven Cohen, has led a $21M funding round in Messari, the crypto market intelligence provider. It is Point72’s first foray into crypto.
SO WHAT Founded in 2018, Messari compiles and analyzes metrics on the ups and downs of the cryptocurrency markets for the likes of Coinbase, Gemini, and Chainalysis. It’s one of many players racing to build out data dashboards and analytical tools to support the expansion of cryptocurrencies as an asset class.
UPGRADE Despite recent volatility, the $1.6T crypto market is expected to continue growing at a good clip as mainstream giants such as Fidelity Investments, Goldman Sachs, and JPMorgan Chase push deeper into the space. The advent of Ethereum’s upgrade this week, EIP-1559, may also drive momentum in the months to come.
TLDR Artist pplpleasr, who has worked with big name DeFi protocols Uniswap, SushiSwap and Pickle Finance, has teamed up with Fortune Magazine for an NFT drop.
NEWS The NFTs, which go live on Aug. 6 at 12 pm EST, will be based on pplpleasr’s cover art for Fortune Magazine’s August/September issue, which focused on cryptocurrency and DeFi.
ART “The higher level concept of the cover art is to compliment their tag line: crypto vs. wall street,” pplpleasr said in a behind-the-scenes video. “So the art is meant to represent this concept of a portal or going down the rabbit hole of crypto and the metaverse.”
NEWS Liquidations are a pain for Defiers, but a new tool aims to prevent them automatically.
DEBT Decentralized bot network, Gelato Finance, released a user interface yesterday which will automatically pay down users’ debt on lending platform Aave if they are close to liquidation.
TOKENS The interface, called Cono Finance, does this by selling some of a user’s highest value collateral, exchanging it for the debt tokens owed to Aave, and then repaying the lending platform. This brings a user’s collateral-to-debt ratio down within a range specified by the user. This range is called the Wanted Health Factor. And all this is built to lower the probability of liquidation.
The more Ethereum is used...The more ETH is burned.
Welcome back to another Trader Top 9! The regulatory pressure we've seen in recent weeks continues to increase. This time it was dangerous language in the giant bipartisan infrastructure bill as well as some big statements from SEC Chairman Gensler. Despite all this, we continued to see positive developments within the crypto community.
Senators Mark Warner (D-Va.) and Rob Portman (R-Ohio) submitted a competing amendment on Thursday to an earlier amendment to the Senate infrastructure bill’s cryptocurrency provision.
Stepping up efforts to minimize the inherent risks of trading cryptocurrency, major crypto exchange Binance has announced it would restrict access to derivatives products to Hong Kong users.
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🧑💻 ✍️ Stories in this newsletter were written by Dan Kahan and YYC Trader, and edited by Bailey Reutzel and Camila Russo. Videos were produced by Robin Schmidt and Alp Gasimov. Podcast was 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).