🦄 Recap: DeFi Week of Feb. 22
Hello Defiers! Hope you’re having a great weekend.
Summing up: In the past week yield farming applications built on Binance Smart Chain, the smart contracts blockchain that’s controlled by the centralized exchange, continued gaining popularity. We covered how Ethereum continues to be the most popular DeFi network by most metrics, how BSC represents the rise of AltDeFi (which often isn’t DeFi at all), and have a tutorial on how to use Uniswap copy PancakeSwap.
It was a brutal week for crypto markets. We covered the record liquidations that were triggered by the ETH slump, how the correction is being driven by short-term traders, and how non-Ethereum DeFi tokens outperformed their Ethereum counterparts. It’s becoming painfully clear Etheruem needs to scale yesterday; we published a state of Layer 2 guide, and reported on dYdX’s move to a ZK-Rollup-based solution. We also looked at DeFi protocols bringing in record revenue, and also at record MEV revenue.
And there was more! There’s a lot going on, but we’ve got you covered :)
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🙌 Together with:
Zerion, a simple interface to access and use decentralized finance
Ledger, a hardware wallet combined with the Ledger application to securely buy, sell, exchange, stake, lend & manage your crypto
Kraken, consistently rated the best and most secure cryptocurrency exchange, which can get you from fiat to DeFi
Casper, an enterprise-focused blockchain which aims to introduce unprecedented security, speed and scale for businesses
"Rich Getting Richer in PoS Chains:" By Chainflow's Chris Remus
Staking is becoming concentrated in a few powerful parties in such a way that the rich are getting richer, crowding out smaller players, writes Chris Remus, who operates staking systems for PoS blockchains including Cosmos and Harmony via his company Chainflow. This is worrisome because it means a few entities are able to decide whether a network runs or not, or take control over governance.
This is not the decentralized future many in the space are building for. Still, not enough people are taking action, or even aware. It’s not too late, but those who see the danger of this happening, need to speak up and better yet, start working to change it, Remus writes.
Digital Dollar’s Dystopian Future: The launch of a digital dollar is looking increasingly likely, as this week’s comments from US Secretary of the Treasury Janet Yellen show. It’s too soon to tell what the impact of that would be in the broader crypto space. We explored what the pessimistic scenario looks like.
DeFi Protocols are Bringing in Record Monthly Revenue: DeFi protocols are generating more money than ever before, and users are taking the large majority of it, according to a dashboard released by The Block yesterday.
DeFi Tokens Correct Amid High Speculation: Having been some of the highest-performing assets in 2021, DeFi tokens experienced a sharp correction this week. The aggregate market crap in DeFi governance tokens managed to drop approximately 30% from $41 billion to $28 billion within three days. At IntoTheBlock, we have been pointing to the increase in short-term activity as one of the key insights of the bull market.
1Inch Expands to Binance Smart Chain: 1INCH is expanding into Binance Smart Chain (BSC), one of the first major Ethereum-based DeFi projects to make the jump.
Brave is Planning to Build a DEX Aggregator: Brave, the company behind the open source Brave web browser that allows users to tip publishers and content creators with its first-party Basic Attention Token (BAT), is setting their sights on a lofty new project: a Brave DEX aggregator.
dYdX is Latest Major DeFi Project to Move to Layer 2: Trading Ethereum-based assets is about to get cheaper. Decentralized exchange dYdX is moving its perpetual derivatives trading off the Ethereum main chain to a Layer 2 scaling solution.
The State of Layer 2 With Ethereum Scaling is at Stake: This piece dives into the current state of Ethereum Layer 2 scaling solutions focusing on state channels, plasma and rollups. We break down how each works, their own set of tradeoffs, the teams developing them, and the projects migrating to each.
Non-Ethereum DeFi Tokens Outperforming ETH Peers: Non-Ethereum DeFi tokens are outperforming their Ethereum peers. Of the top 10 best-performing DeFi tokens with over $100M market capitalizations in the past seven days, six are non-Ethereum or cross-chain based and four exist solely on the Ethereum blockchain.
Ethereum Bots’ MEV Profits are Getting Juicier: Ethereum bots’ profits are getting juicier: Nearly half of the total revenue they’ve made since January 2020 comes from value they’ve extracted in the last 30 days.
ETH Remains DeFi King as BSC Fights for the Crown: The DeFi world is abuzz with the following question: Is Binance Smart Chain taking over Ethereum as the ecosystem’s base layer? We looked at the numbers and the answer is not by a long shot.
DeFi Hit With Record Liquidations Amid Market Slump: DeFi is in its biggest market rout of the year and borrowers are feeling the pain. Liquidations in decentralized finance spiked to a record $133B in the past day, according to Debank data.
Cosmos Stargate Upgrade Enables Cross-Chain Txs: Cosmos’s Inter-Blockchain Communication (IBC) protocol, released last Thursday as part of the network’s so-called Stargate upgrade, enables token and data transfer across Cosmos-based blockchains.
EulerBeats Combines Art and Music in Newest NFT Trend: EulerBeats is a new NFT project that has emerged at the intersection of audio collectibles and algorithmically-generated art. For high-end collectors, EulerBeats might offer the chance to own a piece of NFT history, too.
✊ Head to THEDEFIANT.IO for more DeFi news 📰
🧑💻 ✍️ Stories this week were written by Dan Kahan, Owen Fernau, Sydney Lai and Cooper Turley, and edited by Camila Russo. Videos were produced by Robin Schmidt and Alp Gasimov. Podcast was led by Camila and edited by Alp.
Thanking all the amazing Defiers for the support and love this week (and always)!
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 ($10/mo, $100/yr).