💰 Will Booming NFT Market Spur New DeFi Lending Wave?
Hello Defiers! Here’s what we are covering today,
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LEAD The whole world is struggling to wrap its head around non-fungible tokens (NFTs), including DeFi. But DeFi is trying.
SO WHAT The value of non-fungible tokens (NFTs) is off the charts. “Over the last two weeks NFT sales have exploded to levels well beyond the NFT boom seen in March,” says a new report by CoinMetrics. Obviously, that’s driven in part by genuine interest but also by snagging something on the cheap that soars in value. And there’s been a lot of that going around.
ANALOG When people In the analog world want to make use of something valuable without selling it, they turn to a lender who will accept it as collateral for a loan. That’s definitely happening in decentralized finance (DeFi), but not as quickly as one might expect considering all the other financial innovation that’s occurred on the blockchain.
TLDR This is shaping up to be a killer week for so-called “Ethereum killers.” Of the 100 largest tokens in terms of market capitalization, seven of the top ten biggest gainers in the last week are smart contract platforms, according to CoinGecko. Eleven of the top 15 smart contract platforms are up double digits on the week, according to crypto research company Messari. Of those, three, Solana, Terra, and Avalanche, are up over 75%. Cardano, Polkadot and Cosmos are all up over 25%.
SOL ETH, with its $364B market cap, moved is down a little over a percent on the week. Investors are encouraged by the rise of Solana, whose SOL token doubled in the past two weeks, and now want to put chips onto other Layer 1s, said Muneeb Ali, founder of Stacks, a smart contract platform built on Bitcoin which has $1.4B in market cap.
CONFIDENCE “I think people are realizing how large the potential market for smart contracts can be,” Ali told The Defiant. “Success of Ethereum fuels demand for new L1s and L2s. And as people see initial signs of traction of a new L1, recent example being Solana, then their confidence level on newer L1s being able to take market share can go up in general.”
In this week’s Opinion piece, David Liebowitz argues how and why all the tribes of crypto and DeFi must band together to press Washington not to pass draconian laws and regulations. The stakes couldn’t be higher — the creative revolution released by blockchain technology. Among David’s proposals: new laws to protect crypto.
ACTION: Earlier this month when the infrastructure bill came with a provision to broadly expand the definition of brokers to include blockchain ecosystem participants such as miners, developers, and others, the crypto industry sprung into action.
EDUCATE: Builders, investors, enthusiasts, lawyers, and everyone in between embarked on an all-out effort to add to the Lummis-Tooly-Wyden amendment and narrow the definition of a broker. Moreover, they sought to educate members of Congress and the general public on the ramifications of a sweeping definition on the future of nascent technology, and why such consideration demands more time.
LOBBY Organizations such as Coin Center, The Blockchain Association, and Fight For The Future spent countless hours organizing grassroots outreach online, resulting in tens of thousands of calls to Congress. The undertaking garnered enough attention to receive coverage from the Washington Post, which headlined its article How Cryptocurrency Became a Powerful Force in Washington, as well as features in The New York Times, Vox, and others. Although the provision was not amended before it passed the Senate, the saga solidified the blockchain lobby as a serious presence and showed what’s possible when the industry organizes in a coordinated effort.
Molly Wintermute Releases Hegic V8888: 0% Trading Fees and Gas Fee-Free Options Trading
Hegic V8888 is live in mainnet:
Hegic is an on-chain peer-to-pool options trading protocol built on Ethereum. With Hegic, DeFi and crypto users can trade 24/7 American, cash-settled, on-chain ETH and WBTC call / put options with no KYC or registration required for trading.
Hegic was founded 1.5 years ago in February, 2020. Hegic V888 (the previous version) was live for 10 months. The results achieved by V888:
● $492,075,000 total volume
● $22M record daily volume
● 6,450 options traded
● 2,825 unique users
● $10,415,000 earned by HEGIC staking lots holders
Introducing Hegic V8888
Trading Options on Hegic V8888
● 0% trading fees: pay only a premium
● 100% gas fee-free options trading
● The lowest prices for ETH and WBTC call / put options
● Auto-exercising of in-the-money options
● Tokenized options for trading on the secondary market
● 90 days is the new maximum period of holding options
Earning Yield on Hegic V8888
● Zero-loss options selling pools with auto-hedging
● x2 higher capital efficiency with flexible collateralization
● Independent pools for selling call and put options
● Individual lock-ups for each liquidity tranche deposited
● Pools’ unrealized profits front-running prevention
● Real-time data on pools APY and P&L per each option sold
Use Hegic now:
This is a weekly tutorial on the most compelling opportunities in yield farming, written by our friend DeFi Dad, an advisor to The Defiant and Head of Marketing and Portfolio Support at Fourth Revolution Capital.
Background on Protocol: A new DeFi protocol called Orion Money aims to build a cross-chain stablecoin bank for saving and lending. What’s clever about Orion is that it’s bridging demand from two different DeFi communities: the Anchor Rate available on Terra blockchain and the outsized amount of stablecoin liquidity and demand to earn yield on Ethereum. If you’re unfamiliar with the Anchor Rate, think of it as the target APY that Anchor protocol seeks to pay out to depositors of UST. This Anchor Rate isn’t fixed, but is designed to be stable, currently about 19.55% APY.
Last year, when COVID swept into the Philippines, nearly 7.3 million people in the country lost their jobs and their livelihoods as the country went into lockdown. In response to the suffering, Gabby Dizon, a local gaming entrepreneur, began lending out his characters in a game called Axie Infinity to different people in his community.
Chainflip, a decentralized automated market maker-based protocol, closed a $6 million funding round led by Framework Ventures.
It hardly feels like a month since we launched fractional.art* in July. We’ve seen some pretty incredible adoption and engagement from this new community: there have already been over 200 unique curators and 2,500 unique owners of fractions who have come up with so many cool things we couldn’t have anticipated ourselves.
Binance reviews its products and services on an ongoing basis to determine changes and improvements in light of evolving global compliance standards. To enhance user protections and provide a safe crypto environment for everyone, Binance is making the following changes:
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🧑💻 ✍️ Stories in this newsletter were written by Brady Dale, Owen Fernau and Juan Pellicer, and edited by Camila Russo, Bailey Reutzel and Edward Robinson. 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).