💳 New Breed of DeFi Credit Protocols Raises Millions at Rapid Clip
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INNOVATION DeFi is dead — or maybe it just needs another dose of innovation to rejuvenate liquidity. Enter credit protocols, projects that are using new methods to set credit ratings to would-be borrowers in the crypto space and release lending.
SPLASHY They aren’t as splashy as NFTs or GameFi, but these projects have quietly received a slew of funding in 2022 despite the abysmal performance of the crypto markets.
LOANS And in tackling credit, the cornerstone of traditional finance, these startups are trying to lay the foundation for a more robust DeFi marketplace when the cycle turns again. The key: enabling more borrowers to receive loans from investors without having to post collateral.
CAPITAL “Undercollateralized lending is good because it’s the most efficient way to get capital,” Charlotte Dodds, marketing manager at Maple Finance, told The Defiant. “You don’t need to post collateral, which means you don’t need to lock up any funds to get that capital. So all of your money in the bank is yours.”
NEWS Most of the OP tokens stolen in an exploit have been returned, according to the Optimism Foundation. On June 8, the Foundation had disclosed that an attacker had drained a wallet containing 20M OP, the governance tokens of Ethereum Layer 2 scaling solution Optimism.
OPERATION Optimism had sent the 20M OP to a wallet controlled by Wintermute, a market maker tapped to provide liquidity during the launch of the OP token. The tokens ended up in an inaccessible wallet and the attacker was able to drain the tokens before Wintermute could perform the highly technical operation required to move the OP to another, more secure wallet.
ATTACKER Wintermute accepted blame for the exploit, and had pledged to buy an equivalent amount of OP tokens whenever the attacker sells them. Now, it seems like it won’t have to do that.
DeFi Saver, a fan-favorite app for creating, tracking, and managing Ethereum DeFi positions, is now live on two leading optimistic rollup networks: Aribtrum and Optimism.
Having provided users with liquidation protection and innovative management features for a growing number of lending protocols on the mainnet ever since 2019, DeFi Saver is now looking to provide their power tools to a broader audience on much more accessible L2 networks.
To kick things off, they’ve prepared a full-fledged Aave v3 dashboard on both networks, with their signature 1-tx leverage management options, while liquidation protection options are currently in the works. For users who’ve never moved funds from the mainnet, there’s also a new Bridging dashboard powered by a DEX and bridge aggregator LI.FI.
Note that the beloved Simulation mode is also available on all networks and lets you test and verify any actions before making the final decision.
Check out this essential piece of anyone’s DeFi toolkit on Arbitrum and Optimism today at DeFiSaver.com.
PLUNGE Crypto markets plunged Friday morning after the release of federal data showing U.S inflation accelerated in May. Consumer prices increased in every category measured by the Bureau of Labor Statistics, bringing year-over-year inflation to 8.6%, the largest 12-month increase in 41 years.
BITCOIN The CPI data was released at 8:30 a.m. ET – moments later, the price of the largest cryptocurrencies by market capitalization plunged. Bitcoin was trading at $30,150 at 8:29 a.m., according to data from CoinGecko. Two hours later, it stands at $29,308 – a 2.8% drop.
EFFICIENCY Bear markets are a prime environment for young startups to adjust and make a statement with bold strategic choices. This phase allows companies to reorganize, in order to achieve efficiency.
REVENUE Smart decision making is needed to endure a long bear market. It’s a time for startups to focus on the key ingredients in crypto: revenue, total value locked (TVL), and a community that uses the product or service.
DEPOSITORS We looked at one early-stage protocol that has managed to sustain its growth despite the market downturn: Ribbon Finance. It is a decentralized structured products protocol, which automates option selling strategies for depositors to generate yield on their assets.
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The Bored Ape community has voted to keep building within the Ethereum ecosystem, rather than move the ApeCoin token its own blockchain as creator Yuga Labs had suggested.
Bitcoin, like the internet and social media, benefits from “network effects”, where more adoption spurs higher value and incentive for additional take-up, says Blockware Intelligence.
“This is my third crypto winter," the U.S. brokerage CEO said at Consensus 2022, looking back on the firm’s trailblazing journey into digital assets.
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Crypto Lawyers Unpack Contradictions and Challenges in Senate Mega-Bill When Sen.Cynthia Lummis (R-Wy.) and Sen. Kirsten Gillibrand (D-NY) dropped their crypto mega-bill earlier this week, crypto natives breathed a sigh of relief.
Non-fungible tokens, or NFTs, are so hot right now. Still. In the last 18 months Bored Apes and Mutant Apes and Art Blocks wonders and Space Doodles have come out of nowhere and formed a global market with an estimated $40B traded in 2021.
Digital Fashion and Identity in The Metaverse With The Fabricant Co-Founder Adriana Hoppenbrouwer-Pereira is the co-founder and CMO of The Fabricant, a digital fashion house for the metaverse founded in 2018.
🧑💻 ✍️ Stories in The Defiant are written by Owen Fernau, Samuel Haig, Jason Levin, DeFiDad, Aleksandar Gilbert, and yyctrader, and edited by Edward Robinson, yyctrader, 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. Subscribers get full access, while free signups get only part of the content.
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