Recap: DeFi Week of Feb. 3 🦄
Hello Defiers, hope you’re all having a great weekend!
Summing last week up: There’s now $1 billion held in DeFi! MakerDAO raised Dai Savings Rate to 8.75 percent. Lots of platform updates; Social money was added to Sablier so it can now be streamed, DeFiZap launched Zap Out, Idle Finance released its v2, DEX.AG unveiled its Expert Trading interface, Maple Finance launched community-backed loans. Inventions and investigations; the first collateral swap via flash loans was executed, and most DeFi projects can unilaterally change their code on you. PoolTogether raised $1 million. I did an in-depth interview with 1inch co-founder Sergej Kunz, and crypto investor David Iach wrote a column how Ethereum is supercharging finance. And yes, there’s even more :)
Crypto investor David Iach recently spurred up debate around the need for an Ethereum-based fundraising mechanism that aligns investors’ and projects’ incentives. Iach dives deeper into his “liquidity fundraising” idea. He also describes two new innovations: “influencer financing” and “no-loss investing.”
"Soon, Nobody Will Use Centralized Exchanges Because They'll Have Lost Trust in Them," 1inch Co-Founder Says
This week’s interview is with Sergej Kunz, co-founder of 1inch, the dex aggregator with the highest volume. He attributes his early success to the algorithm his team developed to provide the best prices, and their aggressive strategy. But this strategy — embodied in their logo’s “manic unicorn”— has also stirred up some controversy in the ecosystem along with a debate on open source versus copyrighted code.
Exclusive: DEX.AG Unveils New Interface Today: Decentralized exchanges are increasingly adopting the look and functionality of their centralized counterparts. The latest one to make strides in this direction is DEX.AG.
How to Earn 8.75% on Your Savings: The “DeFi central bank” has raised its savings rate to just under 9 percent, which means anyone can start earning that right now on a dollar-pegged digital asset. A step-by=step how-to with Argent.
Flash Loans Enable First Collateral Swap: Things in DeFi are getting weirder. Developer David Truong created the first collateral swap in DeFi using Aave’s flash loans and Uniswap.
Most DeFi Projects Can Single-Handedly Change Code: Most DeFi projects can unilaterally make changes to their code, content creator Chris Blec said in a video.
Streaming Social Money is the Future of Work: Just in the past couple of months developers created an easy way for anyone to issue their own personal tokens, while a different team created a way for anyone to create payments streams. Today, anyone can streams those personal tokens, also known as social money.
Private Transactions on Ethereum are Live: Aztec recently launched a privacy network on Ethereum, enabling applications to integrate zkDai, a private version of Dai, which conceals the amount transacted.
Maple Finance Launches Community-Backed Loans: Most DeFi platforms have solved the challenge of issuing loans without trusted third parties with collateral. Maple Finance wants to solve this challenge with community.
Pool Together Raises $1 Million: PoolTogether, the no-loss lottery, has raised $1 million in a funding round led by IDEO CoLab Ventures with participation from ConsenSys Labs and DTC Capital.
Idle Finance Updates Automated Investment Protocol: Idle Finance, which allocates users’ tokens into the highest-yielding platforms, released its v2.
DeFiZap Makes it Easier to Un-Zap: DeFiZap, which lets users implement multi-step decentralized strategies in one click, introduced Zap Out, to make it just as easy to undo those strategies.
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 at $10/month or $100/year, while free signups get only part of the content.
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About the author: I’m Camila Russo, a financial journalist writing a book on Ethereum with Harper Collins. (Pre-order The Infinite Machine here). I was previously at Bloomberg News in New York, Madrid and Buenos Aires covering markets. I’ve extensively covered crypto and finance, and now I’m diving into DeFi, the intersection of the two.