Aave Launches Genesis Governance with AIP1 Token Migration

https://defirate.com/aave-aip1/

Aave – the sector leading lending protocol – has launched its first Aave Improvement Proposal to ratify the migration from LEND to AAVE.

This milestone comes as a huge next step for the project, with tokenholders voting to ratify a token migration that implements the Aavenomics changes including staking incentives, yield farming, and a backstop module on top of decentralized governance.

Detailed in the AIP is the implementation of new Safety Incentives, or rewards to be earned from staking AAVE via a Safety Module as a reserve in the event of shortfalls. The proposal suggests 400 AAVE in rewards per day, good for roughly $20k in rewards each day when taking the 100 LEND > 1 AAVE swap into account.

Outside of the 100:1 tokenswap, AIP1 adds a 3M token Aave Reserve to a community governed treasury, good for Safety and Ecosystem Incentives in tandem with a fortitude of other rewards programs to come.

In the event the proposal passes, the Safety Module will be introduced using a bootstrap period with no slashing, making staking completely risk free to early adopters. There is currently no deadline on when LEND would have to migrate, however, those who are the first to stake to the Safety Module stand to earn the largest portion of the first day’s 400 AAVE rewards.

100 unique participants have voted on the proposal in the first 48 hours of launch, with early support signaling the proposal will pass in spades.

What’s unique about Aave governance is that voting is built directly into the application, utilizing a custom dashboard and governance module built directly by the Aave core team.

Lending Governance Thrives

When it comes to DeFi governance, we’re seeing an ongoing trend of token distribution proposals have the highest engagement to date.

With Aave, governance marks the start of new trends like adding new assets, adjusting interest rate models, and adding new money markets in line with core protocol upgrades like the token migration.

If one thing is for sure, Aave has solidified as a crucial foundation of the DeFi ecosystem. The migration to AAVE is set to kick off Aave V2, adding in a suite of gas optimizations that are sure to take the sector-leading protocols to new highs in the coming months.

To stay up with Aave, follow them on Twitter!

 

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Uniswap Launches UNI Governance Token with Community Airdrop

https://defirate.com/uniswap-uni-token/

Uniswap – the sector leading DEX – has released its UNI governance token with a community airdrop to anyone who has interacted with Uniswap prior to September 1st.

Underpinning the hottest governance token to date was a retroactive airdrop where any account that interacted with Uniswap V1 or V2 contracts received 400 UNI. Liquidity Providers also earned favorable rewards based on historical liquidity while the 220 holders of at least one $SOCKS (a tokenized Uniswap merchandise item) received 1000 UNI.

In total, 150,000,000 UNI – or 15% of the supply – was distributed through the community airdrop, broken down as follows:

  • 4.92% to all 49,192 historical LPs [49,166,400 UNI]
  • 10.06% split evenly across all 251,534 historical user addresses [100,613,600 UNI]
  • 0.02% to 220 SOCKS holders/redeemers [220,000 UNI]

To claim UNI rewards, simply head to Uniswap and look for the purple “UNI” box in the top right. Here you will need to submit a transaction to claim your rewards. Please note that 400 UNI was airdropped to any wallet which has ever interacted with Unsiwap, meaning many users may be eligible for multiple airdrops depending on the different number of wallets used.

 

UNI Liquidity Mining & Distribution

Starting tomorrow, four liquidity mining pools will open for UNI rewards. USDT, DAI, USDC, and WBTC pools will each earn an allocation of 5M UNI over the course of the next two months. This breaks down to 83,333.33 UNI per pool per day or 54 UNI per pool per block.

This intro to liquidity mining is set to be followed by formal governance over incentives after the first 30 days in which the community treasury (responsible for future liquidity mining rewards) will be vote on pools & allocations.

Outside of the liquidity mining rewards, UNI’s 1B supply is set to be broken down as follows:

  • 60.00% – Community [600,000,000 UNI]
  • 21.51% – Team  [215,101,000 UNI]
  • 17.80% – Investors [178,000,000 UNI]
  • .069% – Advisors  [6,899,000 UNI]

All team, investor and advisor tokens will be subject to four-year continuous locks, meaning tokens will unlock in real-time. Here’s a breakdown of how these tokens will enter the circulating supply over time.

Perhaps what’s most novel about the distribution is an ongoing 2% perpetual inflation set to kick in once all 1B tokens have been distributed. While this parameter is obviously malleable by governance, it sets a fantastic precedence for protocol sustainability.

With Binance and Coinbase both springing to list UNI less than 12 hours after launch, it’s clear that DeFi has a new cool token on the block.

In the wake of a SushiSwap attack, anon devs have now learned the golden rules of DeFi:

  1. Do not cross Andre Cronje
  2. Do not cross Hayden Adams

To keep an eye on Uniswap, follow them on Twitter or join the conversation on the governance forum.

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Introducing Lien Protocol – ETH-Denominated Options & Stablecoins

https://defirate.com/lien-protocol-idol/

Special thanks to Kirby Ong for the guest post! 

Maker – the leading DeFi lending protocol behind Dai – has a new competior, Lien Protocol. Lien will be conducting an Initial FairSwap Listing for LIEN on 7th September at 13:00 UTC using an iDOL/LIEN trading pair in lieu of its mainnet launch this past week.

 

What is Lien Protocol?

Lien Protocol is a decentralized, governance-less, censorship-resistant protocol for creating options and stablecoins with ETH.

With Lien Protocol, users can mint a crypto-backed stablecoin called the independent dollar (iDOL) without the need for over-collateralization. There is no requirement for users to deposit excess collateral as Lien Protocol facilitates two types of derivatives; the Solid Bond Token (SBT), and the Liquid Bond Token (LBT), from ETH.

Credits to Kerman Kohli

The Solid Bond Token (SBT) aims to have a stable value, whereas Liquid Bond Tokens (LBT) behaves like a call option as the amount of ETH the LBT holder receives increases as the price of ETH increases. With this separation of ETH into SBT (stable-valued token) and LBT (call option token), Lien Protocol completely removes the need for over-collateralization.

Lien Token (LIEN)

The Lien Token (LIEN) is a utility token used to receive discounts on protocol fees. These discounts are the fees that are collected in ETH/iDOL when users mint iDOL, and when users exchange assets on FairSwap. All protocol fees are distributed to LIEN holders as rebates at the end of each month.

Independent Dollar (iDOL)

iDOL is an ERC20 stablecoin backed by ETH derivatives (SBTs and LBTs). It does not use centralized collateral and stabilizes its price through market mechanisms that act on arbitrage opportunities. There is no governance in the Lien Protocol, ensuring that iDOL tokens are censorship-resistant.  Users deposit ETH and get a 1:1 representation of ETH in the form of iDOL.

Fairswap

Fairswap is a Uniswap-inspired DEX that aims to provide users with “fair” trades using several new mechanisms. A guide on how Lien works can be found here.

 

 

Front-running Mitigation

Fairswap prevents front-running by using frequent batch auctions. This means that trades are not processed according to their “queue” number, as this would open up opportunities for arbitrageurs to front-run orders to the disadvantage of users like you and me. With FairSwap, orders are batched in two neighbouring blocks which are cleared simultaneously, ensuring orders get the same, “fair” price.

Dynamic Fee Pricing

Trading fees on FairSwap automatically adjust based on estimated annualized volatility and the strike price of LBT. With this Dynamic Fee Pricing system, LPs are compensated for excess impermanent loss resulting from the volatility of LBTs.

Closing Thoughts

In summary, Lien offers a novel approach to permissionless stablecoin issuance set to rival DAI. Alongside competitors like MetaCoin, September is shaping up to be an exciting month for censorship-resistant stablecoins which have historically had a very tough time maintaining their peg.

To stay up with Lien, follow the project on Twitter or join the conversation on Discord.

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bZx Relaunches Lending & Margin Protocol with BZRX Yield Farming

https://defirate.com/bzx-relaunch/

Lending and margin protocol bZx is back with a splashy re-launch and reportedly better than ever.

 

As a refresher, bZx currently offers two core products:

  • Fulcrum – For tokenized lending and margin trading
  • Torque – For fixed-rate loan origination

While the core products have remained relatively untouched since their initial launch, bZx 2.0 offers a reworked front-end and new features including flash loans, collateral management, and more.

By combining leveraged trading and lending on one protocol, bZx can offer a much more native experience for DeFi participants.

bZx’s reworked token, BZRX, is a governance and utility token that will enable token holders to capture value through bZx protocol fee sharing, balancer LP rewards, and the right to draw from the bZx Insurance fund.

bZx re-launched yesterday and thus far it seems to be smooth sailing.

Rough Start

Despite a rough start earlier in the year, it seems like bZx has really gathered some momentum as of late with an explosive Initial DEX Offering in July and subsequent Binance listing on August 28th.

The protocol suffered two hacks back in February with losses totaling around $1.3 million USD. Since then, the bZx team has been busy redesigning its protocol token BZRX, revamping its products, and slowly earning back the trust of the community.

The Upside?

bZx’s history provides us with an interesting scenario. They were a first mover in the space, suffered a significant setback, and have now been come back laser-focused on security and audits.

Presently in DeFi, hundreds of millions have flowed into vegetable and food-themed meme protocols with little regard for proper audits. SushiSwap pictured below was launched less than a week ago and has already locked up over $1 billion in value in it’s Uniswap LP pools.

   SUSHI protocol statistics, sourced from https://sushi.zippo.io/

In this current environment, bZx’s focus on top tier security could be a significant differentiator for users when they consider where to chase yield. The team’s focus on sustainable liquidity mining design also cannot be overlooked. Their rebate-like rewards model is starkly different from other protocols that reward liquidity providers exponentially despite the actual value LP contributions bring to the protocol. For more on the BZRX token see here.

Where will bZx end up on the  DeFi Pulse leaderboard? Can’t say for sure, but it’s definitely worth keeping an eye on.

To stay up with bZx, follow them on Twitter.

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SushiSwap Serves Uniswap LPs Through Vampire Mining

https://defirate.com/sushiswap-vampire-mining/

Thanks to 420slap for the guest post!

It’s the season of vegetables & forks within the DeFi universe and a new dish has been served, and this one needs a chopstick and not a fork! We are talking about the newest entrant – SushiSwap.

 

SushiSwap is a fork of Uniswap with a native governance token ($SUSHI) and a change in the reward distribution mechanism. With Uniswap, LPs earn 0.3% of trading fees whereas on Sushiswap, LPs will earn 0.25% fees, with the remaining 0.05% being distributed to SUSHI holders.

The objective is to incentivize early liquidity providers with added incentive for bootstrapping the pools. In Uniswap, LPs earn fees so long as liquidity is provided. Sushiswap aims to add a more passive form of income with early LPs benefitting from the future traction of the protocol through SUSHI and the 0.05% fee.

In typical DeFi degen style, SushiSwap founder Chef Nomi made a call to arms for auditors to conduct a smart contract audit after the protocol reached $150M in TVL within the first 5 hours of launch. Quantstamp has since taken responsibility to audit the contracts alongside a 48 hour time lock on the governance contract to prevent any malicious activity from the founder. A rewards distribution of 10% has been set aside for the team for audits & operational expenses, an allocation which can reportedly be adjusted through governance.

Reward Distribution

LPs stake Uniswap LP tokens across any of the 13 support pools. 100 SUSHI is minted every block. During the first two weeks, liquidity incentives are boosted by 10x with the native SUSHI / ETH pool having 2x (2000) rewards.

At the time of writing, the SUSHI/ETH is netting upwards of 1500% APY while the total value locked exceeds $800M. Here’s a great dashboard to stay up on all relevant SUSHI metrics.

Protocol Traction

While there was skepticism about the project amongst crypto twitter at launch, the recent success of community-governed projects like yEarn and the transparency of the project founder has allowed SUSHI to create a cult-like following among hungry yield farmers.

Given the strong traction, SUSHI seems to have ruffled the feathers of some of the VC backed projects, claiming that SushiSwap is inditing a gambling culture in DeFi rather than the social movement it was founded on.

Despite the contention, Uniswap seems to be a direct benefactor of this SUSHI cooking event with total liquidity more than doubling since launch. This is best exemplified by a new record for Unsiwap,  with 24h volume exceeding that of Coinbase for the first time.

Now, SUSHI holders are rallying around the newly launch governance platform, voting to increase rewards for SUSHI/ETH LPs, and add new pools to the protocol.

They say strike when the iron is hot. SushiSwap’s community governance model has arrived at the right time with all the traction around fair launch projects such as YFI and the recently announced Fair Launch Capital. As they say, SUSHI is also a dish that is best served cold.

To stay up with SushiSwap, follow them on Twitter!

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yEarn Launches Delegated yDAO Funding Vaults

https://defirate.com/yearn-delegated-vault/

yEarn – the leading DeFi yield-aggregator – has announced an addition to their delegated vaults called the yDAO Funding Vault.

 

yDAO Funding Vaults enable YFI token holders to delegate pooled credit lines to anyone looking to bring additional value into the yEarn ecosystem. The yDAO vault can fund anything from smart contract audits to front-end design updates, or even viral meme campaigns to raise YFI awareness, as long as yDAO stakeholders approve of it.

Operationally, the Vault will be funded by YFI holders. Applicants looking for funding will need to set up a Gitcoin Grants page and make an official proposal in the yEarn forums. If approved, yDAO governance can set a credit limit that the applicant can draw from. This is made possible by the recent addition of YFI as accepted collateral on Aave and their Credit Delegation rollout.

Why does it matter?

The yDAO Funding Vault is a trusted on-chain resource for anyone to request funding for important yEarn ecosystem tasks. This is a big deal for three reasons.

  1. Accessible decentralized funding will add fuel to yEarn’s momentum and attract even more talented contributors to the already vibrant community.
  2. It provides a formalized process for the yEarn community to fund projects crucial to the protocol’s success.
  3. Funding selection is at the discretion of yDAO contributors, giving yDAO the flexibility to evolve into a DeFi-native crowdsourced venture fund.

You can find official announcements with more detail regarding yDAO on the YFI governance forums here.

Initially, yDAO is meant to fund value generative development within the yEarn ecosystem. Still, based on the community sentiment thus far, it’s not hard to imagine a future where yDAO becomes a generalized DeFi incubator. Some in the YFI community have already dubbed yDAO  the “YFI Combinator”.

Imagine YAMs without the fatal bug that led to its initial failure or a SushiSwap that launched without FUD around the security of its smart contracts. This can now become a reality thanks to yDAO Funding Vaults and other community-driven initiatives like Fair Launch Capital.

Future DeFi entrepreneurs can acquire seed funding directly through the Yearn community and circumvent centralized finance entirely. Anonymous devs like Chef Nomi can acquire funds for code audits prior to launch and create a healthier farming environment for all participants.

Community-driven funding initiatives like yDAO and Fair Launch Capital will likely be a cornerstone of innovation in the ongoing DeFi bull market. 

To stay up with yEarn, follow them on Twitter or join the conversation on the governance forum.

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Zapper Closes $1.5M Seed Round for DeFi Accessibility

https://defirate.com/zapper-seed-round/

Zapper – a leading DeFi asset management protocol – has closed a $1.5M seed round lead by Framework Ventures and Libertus Capital.

With just over $300M in volume routed through the platform since inception, Zapper provides easy onramps to DeFi through a trusted interface that supports 19 leading protocols.

The round was led by Framework Ventures and Libertus Capital with participation from MetaCartel VenturesCoinfundThe LAOCoinGecko, and Zee Prime Capital. In the spirit of community-first, Zapper’s round also included angel investments from Michael Dunworth (Wyre), Kain Warwick (Synthetix), Mariano Conti (Maker), Anthony Sassano (Set Protocol), Meltem Demirors (Shiny Pony) and Stefano Bernandi.

What started as a hackathon project has quickly blossomed into one of the most crucial aggregators in a growing DeFi landscape. Over 200,000 unique users have now used Zapper as new features like Pool Pipes are being added every day. We previously sat down with Zapper’s founder, Nodar Janashia which can be found here.

Community First

The round comes as a major win for the rapidly growing sector, primarily due to Zapper’s long-standing reputation in the DeFi community. In an era when new projects are popping up with major investments pre-product, Zapper feels like one of the most legitimate contenders to close a round in recent months.

Whether it be the rapid pace of innovation or the real-time updates to keep farmers on top of the latest opportunities, it’s no surprise many have come to call Zapper the “people’s choice” when it comes to monitoring, deploying and managing DeFi positions.

What’s more is that despite being in a growing sector of DeFi asset management, Zapper has kept strong ties with projects like Zerion, speaking perfectly to the social composability spirit that makes the industry so great.

A Storm is Brewing

Just last week, Zapper shared a Tweet that teased a new site for the Zapper Protocol.

While there have been no official announcements on Zapper’s end, there have been whispers of a native governance token – something which seems likely given the original post suggesting that “Zapper will empower the community to play a crucial role in the creation of zaps.”

Given the pace at which new yield opportunities are popping up, Zapper has been shipping like crazy to offer Zaps that capture real-time opportunities like yVaults from yEarn.

 

For hungry yield farmers out there, Zapper is certainly one worth keeping an eye on in the coming weeks.

To stay up with Zapper, follow them on Twitter or join the conversation on Discord.

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Fair Launch Capital Announces Security Focused Token Launchpad

https://defirate.com/fair-launch-capital/

There’s a new token incubator in town. “We are not Fair Launch Capital, we provide fair launch capital”.

 

Unlike Y Combinator or a16z, Fair Launch Capital gains no early advantage for incubating grassroots token distributions. The goal of the project is to create equitable token distributions with security at heart. No premines, no VC funding, no headstarts – even playing fields for all.

Looking at YFI, YAM and BASED (among many others), the notion of a ‘fair launch’ almost always gives security – in the form of smart contract audits – a backseat. Whether it be the cost of the audit itself of the limited availability for top service providers, many teams are choosing to go to market unaudited, propagating the “YOLO” nature of this new wave of financial experiments.

For founder’s keen to explore this world while mitigating security risk, Fair Launch Captial is here to help.

Why Fair Launch Capital?

Fair Launch Capital provides a no strings attached grant for early-stage teams to undergo extensive security audits prior to launch. The idea was seeded by IDEO CoLab partners Gavin McDermott and Joe Gerber alongside product and legal wizard Reuben Bramanathan. This comes in tandem with leading DeFi advisors like Aave‘s CEO Stani Kulechov, Synthetix‘s CEO Kain Warwick and yEarn’s superstar Andre Cronje, giving founders a direct line of communication to the industry’s best.

Underpinning the advisory board are leading community members and thought leaders, all of which bring about strong ideation on what a ‘fair launch’ really means, and how the entire of the trader spectrum – from VCs to retail – compete for governance token distributions in an equitable fashion.

 

Fair Launch Capital is now searching for its posterchild project, welcoming all DeFi founders to join the community Telegram group and make their case for why they’d be a strong first candidate.

The idea is that FLC creates an alumni-like system in which the first project uses governance to pay the grant forward to the next project, creating a cyclical community backed by strong sentiment and even stronger tokeholder alignment.

Just 24 hours after launch, the idea has been received quite favorably, signaling this project is one worth keeping an eye on in the coming months.

To stay up with Fair Launch Capital, follow them on Twitter.

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Balancer Passes Governance Proposal for BAL Liquidity Staking

https://defirate.com/balancer-liquidity-staking/

Balancer – an automated asset management and liquidity protocol – has amended its liquidity mining distribution to further favor BAL-based pools.

For those unfamiliar, users who provide liquidity to Balancer earn weekly rewards in the form of BAL governance tokens. The project has undergone a suite of changes to better balance this distribution through a variety of factors like fees, wrap, cap, pegs and ratios. In short, the protocol has looked to issue the 145k BAL rewards to the most “useful” liquidity, all of which have resulted in stronger community engagement for Balancer liquidity.

More recently, Balancer added a balFactor which gave BAL liquidity a 1.5x higher return on BAL rewards. Now, that buffer has been boosted even more through the passing of Liquidity Staking.

With the new vote, 45k BAL out of the 145k total weekly distribution will be allocated directly to BAL-based pools which are paired with uncapped ‘useful’ tokens like WETH, USDC and DAI.

“The main goals are to significantly increase liquidity on key BAL pairs and to allow non-shareholders to compound their BAL holdings at a much faster pace, accelerating protocol decentralization.”

The vote over the weekend passed with flying colors, with 98% Yes votes backed by 189k BAL participating in the poll.

Why Should I Care?

With this new change, BAL-based pools are netting upwards of 300% APY, by far the highest Return on Liquidity (ROL) of any Balancer pool today.

A community member put together a great site – pools.vision – allowing users to keep tabs on Balancer pool returns at any given time.

The shift in sentiment towards BAL-favored rewards goes to show that the Balancer community is rallying around protocol decentralization, albeit at the benefit of those who already hold BAL.

Looking at this from the perspective of someone who does not hold BAL, this move could very much be seen as empowering those with the deepest BAL holdings already. Thankfully, this proposal made sure to exclude shareholder addresses from rewards, making this distribution as community-oriented as possible.

The passing of Liquidity Staking comes in tandem with 3 other proposals, all of which passed with the following changes:

  • Increase the MKR capFactor from $10M to $30M
  • Decrease the RPL capFator from $10M to $3M
  • Remove DZAR from the whitelist

This is a great signal that Balancer governance is quickly heating up, due in large part to the snapshot-based voting in which users can vote without having to pay a ~$10 transaction fee as with virtually all other governance systems on mainnet today.

To stay up with Balancer, follow them on Twitter or join the conversation on Discord.

The post Balancer Passes Governance Proposal for BAL Liquidity Staking appeared first on DeFi Rate.

dYdX Partners with StarkWare for Layer Two DEX Scaling

https://defirate.com/dydx-starkware/

dYdX – the leading DeFi derivatives exchange – announced a partnership with StarkWare for their Perpetual Contracts to run on StarkEx zkRollup by Q4 of this year.

 StarkWare is a Layer-2 scaling and privacy solution using zkSTARKS Technology. Outside of being backed by high profile investors like Pantera Capital, Polychain Capital, and Vitalik Buterin, StarkWare is powering a suite fo DeFi protocols including DeversiFi’s Layer 2 exchange.

With this partnership, dYdX will leverage StarkEx, a scalability engine offering scalable non-custodial trading on cryptocurrency exchanges.

Benefits of this integration include but are not limited to:

  • Significantly reduced gas costs and trading fees
  • Reduced minimum trade sizes
  • Cross-margin perpetual trading
  • More trading pairs
  • Instant settlement
  • High-performance price oracles
  • Higher leverage and lower liquidation penalties

With StarkEx, trades are matched off-chain and are settled on-chain using zK-Rollups. This helps combats front-running, a practice that has plagued DEX trading since inception. The advent of updated price oracles increases the economic security of the system against flash crashes and allows for real-time liquidations. 

 dYdX CEO, Antonio Juliano, tweeted that they have some of the most complex production contracts running on Ethereum and that StarkWare can scale them today.

Outside of this integration, StarkWare took part in the great Reddit scaling bake-off 2020, a fully detailed report of that here. While it’s unclear who the winning entry will be, it’s obvious that StarkWare is solidifying itself as a trusted solution for exchanges looking to offer scalability without compromising on privacy.

For dYdX, the partnership further expands the lead it’s established in the margin trading sectors. Despite products like DerivaDEX and Strike set to come online in the coming months, dYdX’s lead in pseudonymous leverage gives it a chance to rival Bitmex – especially after the leading exchange announced they will be enforcing KYC for all customers on here on out.

While dYdX perps are still unavailable to US customers, international traders are quickly flocking to the SF-based company as a means of trading top DeFi tokens with leverage in a permissionless fashion.

To stay up with dYdX, follow them on Twitter. To stay up with StarkWare, follow them on Twitter.

The post dYdX Partners with StarkWare for Layer Two DEX Scaling appeared first on DeFi Rate.

xTokens Launches xSNX for Easy Synthetix Staking

https://defirate.com/xtokens-xsnx/

xTokens – a DeFi token wrapping platform – has released its second wrapper for Synthetix SNX called xSNX.

Synthetix has earned a strong reputation for its token economics where users stake SNX to mint sUSD. Stakers receive SNX inflation plus trading fees. For anyone who’s tried claiming these rewards on Mintr in recent weeks, you’ve likely seen the cost to do so end up around $50-100 in gas. This has effectively boxed any small stakers out as the gas price to mint and claim is almost always larger than the amount of SNX earned (not to mention those tokens are vested for a year).

To address this, xTokens created xSNX – a managed fund where staking returns and trading fees accrue to the Net Asset Value of the token.

“(Users) buy once to get in and sell once to get out. That’s all that is required to participate fully in the Synthetix network.”

To seed liquidity for the pool, xTokens has deployed an xSNX/ETH/SNX 50/25/25 Balancer pool allowing holders to easily switch in and out of the wrapper back to either ETH or SNX.

How Does it Work?

Users can mint xSNX either with SNX or ETH here. At the current price, 1 SNX mints 10 xSNXa. just as with xTokens xKNC, xSNX has various wrappers tied to different trading strategies. Here’s an overview of xSNXa:

“xSNXa holders express a long term bullish view on the value of SNX staking rewards and sUSD trading fees. xSNXa is a set-and-forget token, requiring no active participation from holders. xSNXa holders hedge their sUSD debt exposure 75% in the ETHRSI6040 TokenSet and 25% in ETH. Fees are 0% to mint with SNX, 0.2% to mint with ETH, 0.2% to burn to ETH and 1% of sUSD fees claimed.”

As alluded to in the description, xSNXa will use the minted sUSD to target a 75% allocation in Set Protocol‘s top-performing Robo Set – ETHRSI6040, with the remaining 25% being used to purchase vanilla ETH. This essentially means that xSNXa stakers are long ETH on top of being long SNX, with the added security that should ETH take a downturn, the underlying Set *should* absorb most of the volatility by rebalancing back to USDC.

For more passive traders, all you need to know is that xSNX is a means to depositing SNX and allowing this token wrapper to do all the gas-intensive actions for you.

Given SNX rewards are vested for a year, the idea is for the NAV of xSNXa to increase in value, rather than stakers receiving rewards directly to their wallet. This means xSNXa minters should be well aware this strategy is targetting a long-term hold and is not one which is supposed to increase NAV in the immediate short term.

xTokens has also hinted that they may look to incorporate other xSNX strategies including LINK Sets and inverse ETH sets for those who are long SNX but short ETH.

Easier Token Staking

With the advent of xSNX, xTokens is quickly solidifying itself as a strong contender for small DeFi users. As gas prices continue to rise, the cost of participating in core ecosystem interactions like governance and staking become more gas-intensive (and thus less profitable) by the day. Following in the footsteps of their KyberDAO voting wrapper – xKNC – xTokens is tackling key DeFi interactions and sharing their rewards using non-custodial pooling.

Hidden quietly on the site is an xBNT wrapper – one which is likely to allow users to pool BNT to earn trading fees across the newly launched, highly lucrative Bancor V2 pools.

If one thing is for certain, xTokens is one worth keeping an eye on if you’re a DeFi token bull looking to put your capital to work in a very passive (yet lucrative) manner.

To stay up with the xTokens, follow them on Twitter or join the conversation on Discord.

The post xTokens Launches xSNX for Easy Synthetix Staking appeared first on DeFi Rate.

yEarn Announces yInsurance for Permissionless DeFi Coverage

https://defirate.com/yearn-yinsurance/

yEarn – the leading yield aggregator – announced yinsure.finance, a new kind of tokenized insurance.

 

Baked into yInsurance are three three core components:

  1. Insurer Vaults – Liquidity Providers (LPs) providing insurance.
  2. Insured Vaults – These hold the tokenized asset being insured
  3. Claim Governance – A way to create a claim by staking their yiUSDT.

With yInsurance, any asset or it’s interest-earning counterpart can be insured. This means not only DAI can be insured, but also it’s composite assets like Compound DAI (cDAI), Aave DAI (aDAI) and yEarn DAI (yDAI).

The first Vault will be yiUSDC. LPs provide USDC and earn initiation and weekly fees paid by insurees. Should a claim be approved, USDC is deducted from the vault and paid out to the claimant. Should LPs decline valid claims insurees will move out and LPs will not be profitable. Thus, forcing LPs to act in good faith.

This design is similar to that of debit orders. Simultaneously the first insurer vault will be USDC, while the first insured vault will be wrapped yCRV from yVault.

Lastly, While there was no mention of it in the article itself, this product will most likely will not require users to go through KYC. This is worth noting as the biggest alternative is Nexus Mutual. While the mutual provides a multitude of more coverage, it does require users to undergo KYC in order to take out and file a claim.

Andre the Giant

Perhaps the biggest thing which caught people off-guard was how quick Andre managed to push this out. He tweeted this and within the hour had this poll started. Less than five hours later he had this primer ready to go.

Andre is considered somewhat of a rockstar in the DeFi space and continually living up to that reputation. Despite testing in prod, he has made it clear people should not blindly follow him. His integrity and work ethic have earned yEarn a community seal of approval and that price of YFI seems to be acting as such. On the back of yInusrance being announced, YFI is up 27% and nearly 100% in the past week.

Now, the project continues to move forward as new proposals look to keep Andre motivated, including a proposal from the community to reimburse him for nearly $80k worth of gas costs incurred since yEarn’s inception.

If one thing holds true, yEarn governance continues to be one of the most active in the DeFi ecosystem to date, leading many to theorize that soonTM 1 YFI will equal 1 BTC in price.

To stay up with yEarn, follow the project on Twitter here or join the governance forum. To stay up with Andre Cronje, follow him on Twitter here.

The post yEarn Announces yInsurance for Permissionless DeFi Coverage appeared first on DeFi Rate.

Bitcoin on Ethereum Heats Up – More WBTC Minted than BTC Mined

https://defirate.com/bitcoin-wbtc-growth/

“Bitcoins are being tokenized to use Ethereum faster than they’re mined”Zack Voell. That’s right – 6,785 BTC got wrapped in the Wrapped BTC (WBTC) contract while 5,738 BTCs were mined this week. Bitcoin is making it’s way to Ethereum at an unprecedented pace.

 

Currently, the block reward for Bitcoin is 6.25 BTC per block, meaning roughly 900 are mined each day. In total, there is roughly 26,000 BTC locked in the WBTC sidechain, giving it a market cap of more than $300M.

The two main advantages of locking BTC into WBTC is that they can then be used in the wider DeFi landscape and traded with other ERC20 tokens on DEXs like Uniswap. The second, more plausible reason, as to why we are seeing such explosive growth is that they are being used in Yield Bouncers to earn interest on their BTC.  Pools like Curve’s sBTC or the WBTC Balancer Pools provide users the ability to earn a very lucrative interest rate.

 

FTX CEO, Sam Bankman-Fried, confirmed that both their regular exchange and OTC desk are seeing a ton of new inflow.

Critics are not happy

Critics are not happy about this latest development as WBTC goes against the ethos of the space. When redeeming Bitcoin or WBTC,  users have to go through BitGo. BitGo is a digital asset trust company and security company, headquartered in Palo Alto, California, therefore introducing a central point of failure which goes against the core values of DeFi. It should also be noted that when you deposit BTC to BitGo, users have to undergo KYC and AML onboarding along with your BTC. This further turns off many people who would have otherwise used their system.

Many critics have also pointed out that while this is good for the Ethereum ecosystem,  this could have negative consequences for the Bitcoin blockchain. This is because with each halving,  the block rewards are halved and miners become increasingly more reliant on the transaction fees. The current block reward is 6.25 BTC and sometime in 2024,  that block reward will be cut down to 3.125 BTC. What this means is that if a huge portion of BTCs are locked in sidechains like WBTC, renBTC and pBTC, there is a lack of bitcoin circulating in the Bitcoin Blockchain and thus, miners do not get the transaction fees that they otherwise would have earned.

Bitcoin Competition Heats Up

While WBTC is the biggest player in the tokenized BTC space, it is not the only player. Ren Protocol is quickly catching up with it’s wrapper – renBTC – boasting a  markcap of nearly $75 million USD. Many have rallied behind renBTC as it is a better alternative to WBTC because it is more decentralised and not reliant on any central custodian nor does it require its users to go through the intrusive KYC/AML procedure. Check out our coverage on Ren here.

Bitcoin has its own Layer-2 sidechain called Lightning Network. However, it has failed to attract any major traction and sits at a mere Total Value Locked (TVL) of $12 million USD. This pales in comparison to WBTC’s Market Cap of +$300 million USD and even renBTC’s Market Cap of nearly $75 million USD.

What this goes to show is that the appetite for compelling yield is attracting many users to port their bitcoin over to Ethereum. While it should be obvious that there is a significant amount of risk associated with doing so, this ‘risk-on’ appetite is not one we expect to slow down anytime soon.

In the background, tBTC is quietly preparing for its relaunch after Keep Network shut down its trustless bridge to address bugs that arose from unprecedented demand.

To keep up on how Ethereum-based bitcoin is trending at any given time, check out this Dune Analytics dashboard.

The post Bitcoin on Ethereum Heats Up – More WBTC Minted than BTC Mined appeared first on DeFi Rate.

Binance Announces DeFi Savings Product

https://defirate.com/binance-savings/

Binance – the leading crypto exchange – has launched a DeFi Special Savings products with three stablecoins.

Users can lock their BUSD, USDT, or USDC to earn a 14.8% annualized return. There are 1000 lots available with each user able to deposit up to 20,000 of each supported stablecoin, capping deposits for individual accounts at 20 million USD. The maturity period is of 14 days and operates on a first-come-first-served basis. While this first program ended on 15th August, 12:00 PM (UTC), we expect many more opportunities like this to arise in the near future. The subscriptions can also end prematurely if the maximum limit is reached. Interest will be distributed within 7 days of maturity while the interest is paid out on the maturity date.

What’s unique about this program is that half of the interest is paid in a random DeFi token. For example, those who bought one lot of BUSD will get back their 1000 BUSD deposit along with 2.84 BUSD + a random DeFi token worth $2.84.

The DeFi token bonuses will be given to the users at random and from the following 12 coins:

Compund (COMP), Maker (MKR), Synthetix (SNX), Balancer (BAL), AAVE (LEND), Ren Protocol (REN), Bancor Network (BNT), Loopring (LRC), Kyber Network (KNC), Kava (KAVA), Thorchain (RUNE) and Yearn Finance (YFI).

Binance to Airdrop $16,000,000 of SXP Tokens to BNB holders

Binance also announced they will airdrop a total of 4 million SXP tokens (worth roughly $16 million USD) to BNB holders over a 12 week period. These tokens will be allocated on a weekly basis based on each Binance user’s average daily BNB holdings in each respective week.

 

Users need to hold a weekly average of at least 0.1 BNB to qualify. Starting on August 17th, Binance will take live snapshots of user BNB balances to calculate their weekly average BNB holdings. Weekly average BNB holding amounts will be determined as the average of the preceding 7 days. The calculation can be found here. SXP rewards are calculated and distributed weekly and will be distributed on Binance.com within 3 days of the end of each weekly period.

Binance CEO, Changpeng Zhao, had this to say.

Binance Joins DeFi

These updates come in tandem with a nearly immediate listing of Curve’s CRV token along with yEarn’s YFI and Aragon’s ANT. It’s clear that Binance will now look to regain its dominance as a top trading venue for DeFi tokens by looking to list highly anticipated projects immediately after launch. This is in stark contrast to its previous process in which token like Synthetix SNX were not listed until just a month ago.

If one thing is for sure, the fact that Binance appears to be threatened by the coming wave of DEXs is a strong testament to the product-market fit projects like Uniswap have found in recent months.

To stay up with Binance, follow them on Twitter!

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The post Binance Announces DeFi Savings Product appeared first on DeFi Rate.

Aave Launches V2 Featuring Gas Reductions, Lending & Margin Upgrades

https://defirate.com/aave-v2/

Aave – the third-largest lending protocol – has showcased a suite of new protocol upgrades falling under the umbrella of its V2 upgrade.

Less than a month after the debut of Aavenomics, Aave is doubling down on its expansion by adding new use-cases for users to better experiment with permissionless lending. As the protocol nears $1B in TVL, Aave’s V2 upgrade is set to add a suite of new features including:

  • Collateral Repayment – Repay debt using existing collateral in one transaction
  • Open Credit Delegation – Open an unsecured credit line with a trusted party. Previously only for large institutions
  • Fixed Deposits – Secure a fixed lending rate when supply collateral
  • Stable Borrow Improvements – Choose from different time intervals for fixed borrows

These features also come in tandem with future opportunities and optimizations of the protocol including:

  • Private Markets – Tokenized real-estate loans with RealT
  • aToken UpgradesEIP 2612 for gasless approvals to reduce transaction costs
  • Gas Reductions – Upwards of 50%+ reductions in gas costs on borrows, redemptions, and flash loans plus GasToken support

Here’s a look at how gas stacked up before and after the improvements.

Aave Trading Upgrades

Aave V2 also features a ton of trading upgrades such as:

  • Debt Trading – Trade debt positions from one asset to another for interest rate optimization
  • Collateral Trading – Trade collateral between accounts
  • Margin Borrowing – Go long or short on any asset supported by the protocol

Governance Upgrades

Last but not least, Aave is adding a suite of features to prepare for it’s upcoming Genesis Governance marked by a migration from LEND to AAVE including:

  • Vote Delegation – Assign voting weight to any protocol politician with the freedom to remove it at any time.
  • Cold Wallet Voting – Vote on proposals without having to transfer tokens to a hot wallet
  • Liquidity Mining Incentives – Aave community members are encouraged to discuss the first round of Aave liquidity mining on the governance forum.

Aave’s Future

All in all, Aave has set themselves up nicely to capture a variety of use-cases in the growing DeFi token bull run. With such an extensive amount of features, it’s no surprise that Aave is quickly gaining headway on Compound in terms of TVL and total protocol fees.

Following the migration to AAVE, the protocol will likely see a renewed spike in demand as AAVE rewards are added to the mix for both Safety Module stakers and protocol users supplying and borrowing capital from the protocol.

If nothing else, Aave has been exceeding all expectations with the number of releases they’ve shared in recent months. Now, we expect the protocol to be heads down on shipping all the aforementioned features in tandem with a successful migration to AAVE following the community’s approval in the first LEND Genesis Governance poll.

Until then, stay up with Aave by following them on Twitter or by joining the conversation on Discord.

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The post Aave Launches V2 Featuring Gas Reductions, Lending & Margin Upgrades appeared first on DeFi Rate.

Curve’s Mysterious CRV Governance Token Launch

https://defirate.com/curve-crv-launch/

Curve – the third-largest DeFi DEX – has officially launched its long-awaited governance token, CRV.

As you can see in the tweet, the way in which Curve launched fit right in with the mysterious roots the team has had since launch.

For those who missed it, an anonymous account spent $8k in gas to deploy all of the Curve contracts, leading to a two-hour grey area where community members were told not to engage as the CRV token was not officially *live*. However, this was then confirmed by the team as being secure, admin keyless contracts – hence the weird way in which the token became *official*. Here’s a full recap on the events that transpired yesterday evening.

None the less, Curve quickly pivoted by releasing a front-end for CRV liquidity mining. Users who provide liquidity to Curve stake their positions via ‘Gauges’ to be eligible for CRV rewards. More on how this works here.

Curve has quickly broken it’s previous ATH’s for Total Value Locked, currently sitting at just south of $700M at the time of writing – good for 4th place on the DeFi Pulse leaderboard. This comes in tandem with breaking the $2B cumulative volume mark, one which has only been reached by leading projects like Uniswap so far to date.

As illustrated in our initial coverage of the pre-launch, Curve liquidity providers will compete for a daily allocation of 766k CRV tokens. Each day, 2M CRV is estimated to enter the circulating supply as early LPs and investor tokens unlock in real-time.

For more long-term supporters, CRV can be locked via the Curve DAO to earn a multiplier on liquidity mining rewards. Curve has provided a number of time intervals, with each granting higher bonuses up to a maximum of 2.5x for those who choose to lock for 4 years.

Early LP’s are also able to claim their rewards in real-time through the Vesting dashboard. Seeing as early LP rewards are vested over the course of a year, these LPs will be able to claim 1/365th of their rewards each day.

CRV Madness Ensues

Almost immediately after launch, the race to acquire CRV went ballistic with both Binance and Poloniex listing CRV within 5 minutes of launch.

This was accompanied by DEXs like Matcha having their front-end crash as users rushed to submit limit orders to take advantage of the gas-promotion to save on transaction costs. (which peaked at $30/swap upon launch)

CRV price traded as high as $50/token, giving the project a fully deluded (h/t Gavin for the term) valuation of ~$182B. For reference, that’s over half of Bitcoin’s fully diluted valuation. This token value gave early LPs returns as high as 10,000% APY, with returns now hovering around 2000% APY at the time of writing.

While Curve took extensive time to map out a strong governance model in which time-weighted voting plays a key role in voting, it’s clear that the DeFi token craze has thrown all bets out the window. Many are now theorizing that the mysterious launch may have been coordinated with the Curve themselves, essentially acting as a legal loophole in terms of sufficient decentralization.

Regardless of where you fall, it’s impossible to ignore Curve. To stay up with the project and any new updates, be sure to follow them on Twitter or join the Discord to chime in.

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1inch Exchange Closes $2.8M Seed Round for DEX Aggregation

https://defirate.com/1inch-seed-round/

1inch – the leading DEX aggregator – has closed a $2.8M seed round.

Lead by Binance Labs, the 1inch round included participation from Galaxy DigitalGreenfield OneLibertus CapitalDragonfly CapitalFTXIOSGLAUNCHub VenturesDivergence Ventures, Loi Luu, the Founder of Kyber Network, and Illia Polosukhin, the Co-Founder of NEAR Protocol.

As one of the most competitive rounds in closed DeFi circles, many are gearing up for the launch of a 1inch governance token, set to give users access to what many are calling one of the hottest DeFi token launches of the year.

Since it’s launch at ETHNY in 2019, 1inch has routed over $1B in cumulative volume through it’s leading DEX aggregations platform. As a quick overview, 1inch plugs in with leading DEXs like Uniswap, Balancer, Bancor and Kyber to offer traders the best price on any given trade. While 1inch is certainly not the only DEX aggregator, it’s capturing upwards of 95% of the aggregation market with no signs of slowing down anytime soon.

Why 1inch?

Outside of their aggregator, the 1inch team has a long-standing relationship of being some of the most talented developers in the space. Their creation of the CHI gas token -used to subsidize transaction costs – has seen exponential demand in recent weeks as gas price soar.

This comes in tandem with their new AMM – Mooniswap – a DEX designed specifically to mitigate front-running, an issue which has long been one of Uniswap’s biggest problems for orders of large volume or those in rapidly changing market conditions. More on it’s design here.

“Mooniswap is the next generation of an automated market maker with virtual balances — enabling liquidity providers to capture profits otherwise captured by arbitrageurs”

By using a spin on “virtual quantities’ Mooniswap’s design mitigates front-running by improving exchange rates for arbitrage traders slowly, over 5-minute intervals. Mooniswap is said to give LP’s anywhere from 50% to 200% more income than Uniswap V2 thanks to the redirection of price slippage profits.

If it goes over your head, just know that LPs earn more for the liquidity they provide.

Further, 1inch’s continual innovation in the rapidly growing DEX landscape has earned it a strong reputation among DeFi traders. Now, this funding route is set to take the project to the next level, changing it from a hobbyist hackathon project to a full-fledged behemoth in the wake of a growing bull market.

If you’ve yet to use 1inch, check it out here.

To stay up with the project, follow them on Twitter!

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Introducing APY.Finance Tokenized Yield Farming

https://defirate.com/introdcuing-apy-finance/

APY.Finance – an automated yield farming platform – has released details for their upcoming alpha and a new governance token – APY.

As an automated liquidity aggregator, users can deposit capital into the protocol in exchange for tokenized LP shares called APT (APY Pool Tokens). Similar to how Balancer Pool Tokens (BPT) and Uniswap LP Tokens (UNI) work, APT represents a pro-rata claim on the total amount of capital held in the APY.Finance pool. As interest is earned by the protocol, it’s shared with LP’s who can claim rewards at any time in a non-custodial manner.

Under the hood, APY.Finance sources alpha from leading DeFi protocols like Compound, Uniswap, Synthetix, Curve, and Balancer. To start, APY will feature recursive Compound lending and borrowing to maximize COMP rewards following by Balancer BAL liquidity mining.

The protocol is governed by a native token – APY – which is used to dictate new strategies which are added to the protocol and other parameters like fees and feature integrations. Touting itself as the Weatlhfront for DeFi, APY.finance is joining the growing subsector of automated yield farming at a very opportune time.

“APY.Finance aims to democratize yield farming by making it accessible to the average user and not just the DeFi experts.”

Why APY?

While you would think APY will simply chase the highest yield at any time, the protocol will take adjusted risk into account to help mitigate potential downsides.

“Capital is spread across multiple strategies, depending on each strategy’s risk score. If a strategy has high yield but also a high perceived risk, some capital will be allocated to capture the upside but only a limited amount to reduce the downside.”

While the first iteration of the protocol will feature one global capital pool, future iterations are set to introduce different pools to allow users to participate in whatever strategies best suites their tolerance.

To encourage early adopters, the team will be allocating a large portion of APY tokens to public rewards and liquidity mining. This comes in tandem with an expected IDO set to turn the heads of all DeFi token hunters.

Robo Yield Farming Heats Up

Just when you thought yield farming couldn’t get any better, platforms like APY are here to automated the whole process. This comes in tandem with products like Rari Captial and Akropolis Delphi – two new yield farming aggregators with similar visions for a farm-friendly future.

With rockstar platforms like yEarn also adding new strategies every day, it’s fascinating to consider how returns will change once platforms allow anyone to participate at the click of a button. On one side, the ability to effectively farm by entering and exiting one time is a huge win for small farmers struggling to combat rising gas prices. On the other hand, the degree of alpha any one farmer can earn through specialized knowledge is quickly getting priced out as protocols like APY build products specifically designed to capture and share these opportunities with their users.

If one thing is for sure, the thesis that DeFi will unlock global access to new financial primitives is playing out right before our eyes.

To stay up with APY.Finance as they roll out their alpha, follow them on Twitter or join their Discord to contribute to the discussion today.

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Curve Showcases Pre-Launch CRV Rewards for Liquidity Mining

https://defirate.com/crv-pre-launch-rewards/

Curve – the third-largest DeFi DEX – revealed the reward allocations for it’s pre-launch period which ended yesterday evening.

In preparation for its upcoming CRV governance token launch, Curve LPs received CRV retroactively based on how long and how much capital had been supplied to the liquidity aggregator. The rewards portal allows anyone to easily check how much CRV they earned – all of which is subject to a one-year lock-up.

While the pre-launch period was originally only supposed to allocate 3% of CRV’s 3.03 total supply, the team decided to bump this up to 5% of the total supply – taking the total share of CRV to be distributed to liquidity providers to 62%.

Here’s a good look at how the pre-launch ended up breaking down.

CRV Launch Details

In the overview blog post, the Curve team released details for the CRV token distribution, broken down as follows:

Total Supply of 3.03b:

  • 62% to liquidity providers
  • 30% to shareholders with 2-4 years vesting
  • 3% to employees with 2 years vesting
  • 5% to the community reserve

Circulating Supply of 1.3b:

  • 5% to pre-CRV liquidity providers with 1-year vesting
  • 30% to shareholders with 2-4 years vesting
  • 3% to employees with 2 years vesting
  • 5% to the community reserve

The issuance period for CRV is set to unlock over an extremely long period of timing, giving the issuance model a curve that looks like this.

To kickstart the distribution, 2M CRV (or 0.06% of the supply) will be released every day. This comes in tandem with real-time vesting for LPs, team, and shareholders, meaning that LPs will be able to claim 1/365th of their pre-launch rewards every day.

Why CRV?

As illustrated in our CurveDAO article, CRV tokens will be used to govern one of the hottest rising DEX and lending platforms to date. With Curve’s Y pool seeing exponential growth with the launch of YFI, we can assume the platforms existing seven pools are the start of many more to be added in the near future. CRV will also follow a classic liquidity mining framework, making for sure fireworks on secondary exchanges like Uniswap and Balancer come launch.

Outside of stablecoins, Curve recently expanded to BTC pools – offering a way to swap between different Bitcoin wrappers with minimal slippage. As the DeFi ecosystem continues to introduce different token flavors, we can only expect Curve will be the preferred place to swap them.

Beyond the notion of protocol fees being directed to the CurveDAO, governance will be time-weighted, meaning those who participate in the early days will earn extra governance weight and rewards multipliers as the project evolves.

Given Curve’s meteoric rise in the DEX sector, it’s no surprise many are pointing to the CRV launch as one of the biggest DeFi token debuts we’ve seen to date. It’s also worth noting that it’s leading two counterparts, Uniswap and dYdX, do not yet have native governance tokens.

 

To stay up with Curve and be prepared to farm, be sure to stay up with Curve on Twitter.

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This Week in DeFi – August 7th

https://defirate.com/this-week-in-defi-august-7th/

To our DeFi Community,

Another week is in the books and the creative niches of DeFi are starting to explode.

What started as liquidity mining for DeFi protocols like Compound and Balancer has now turned into a full-on trend for other tokens to use to their advantage. At its core, the premise of rewarding users for value-added actions makes perfect sense. We’ve seen many projects reward LPs for DEX liquidity and this doesn’t appear to be slowing down anytime soon.

At the fringes of DeFi is the rise of a new sub-sector called SoFi, short for social finance. More commonly known under the umbrella of “personal tokens”, what once was criticized as a vanity play is starting to grow and adapt to rising trends. Looking at Alex Masmej and his new ALEX Yield Round, LPs will share rewards for seeding Uniswap liquidity over the course of the next month.

This notion was quickly picked up by WhaleShark.Pro, offering similar incentives to WHALE LPs for his NFT-collateralized personal token. Creators like Brian Flynn are navigating new waters through the advent of JAMM – a personal token focused on growing his crypto-adoption based newsletter JammSessions. Now, before you write these off as fringe use cases, prominent Ethereum community members like Evan Van Ness are starting to get involved too. His newly launched EVAN token offers placements in his coveted Week in Ethereum newsletter, part of his wider ambition to monetize without putting up a paywall.

This rise of personal tokens is one which I’ve been watching closely for quite some time. While the space is still extremely early, it’s clear that savvy crypto-native creators are leaning into these new experiments by fusing governance with a strong catalyst to grow their brand. I decided to double down on this trend by launching the Personal Token Agency – a management project focused on community growth over capital metrics.

In the spirit of open finance, the ability for any creator to tokenize themselves or their brand and tie it to a specific mission is a premise that has far-reaching potential beyond the crypto rabbit hole.  As DeFi tooling continues to grow, it’s not impossible to envision a future in which a creator can open a Maker Vault against his or her reputation in the form of personal token collateral. With the advent of Aave’s Credit Delegation, we can even imagine a situation in which two parties open a credit line to snag a meeting with a top DeFi VC by buying some of their personal token (Cc: Jake Brukhman, Tom Schmidt).

Until then, we’ll keep a close eye on their developments to keep you in the loop on what’s actually working.

See you next Friday!

– Cooper

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We’d like to take this section to welcome our first exclusive sponsor Aave!

Aave is a leading DeFi lending protocol that recently unveiled it’s Aavenomics governance upgrade. Outside of migrating from LEND to AAVE, Aavenomics will feature a Safety Module that allows AAVE holders to stake as protection against protocol deficits. In tandem with pioneering new money markets for composable lending to unsecured loans through Credit Delegation, we’re keeping a close eye on how the protocol with $641M in AUM evolves.

Aave recently introduced their governance forum with a suite of discussions on how it’s newly introduced Aave Ecosystem Rewards will be allocated to staking and ecosystem incentives post-migration. If you fancy yourself to be a yield farmer, head on over on to the forum or get started with Aave lending today!

Visit Aave to lend and borrow over 20+ top DeFi tokens!


Interest Rates

DAI

USDC

  • Highest Yield: Nuo at 12.0% or BlockFi at 8.6% APY
  • Cheapest Loan: Aave at 3.0% APY

Find more lending & borrowing rates on our Rates page! 


 

Top Stories

Uniswap closes $11M Series A

The leading DEX closed $11M Series A from leading investors as Uniswap experiences over $1.5B in July alone.

Aave showcases credit delegation

Rising money markets protocol Aave showcases credit delegation with $500K unsecured line of credit to DeversiFi

Set Protocol shares v2 details

DeFi asset management protocol shared details for the upcoming v2 upgrade, including a yield farming mechanism!

dYdX releases ETH perpetual

Decentralized margin exchange released the ETH-USD perpetual contracts collateralized by ETH.

Alex Masmej launches $ALEX liquidity mining 

Alex Masmej – Rocket NFT founder and creator of personal token $ALEX – is launching Uniswap liquidity incentives.

 


In Other News…


Stat Box


Bonus Reads


Thanks to our sponsor Aave

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The post This Week in DeFi – August 7th appeared first on DeFi Rate.

Aave Showcases Credit Delegation with $500k Loan to DeversiFi

https://defirate.com/aave-credit-delegation-deversifi/

Aave – the lending protocol for money market creation – has kickstarted their credit delegation feature with a $500k unsecured line of credit to DeversiFi.

Foreshadowing the Aavenomics rollout, Aave showcased a suite of innovative new features including the Uniswap Money Market and Credit Delegation. Today, Aave partnered with DeversiFi to serve up $500k of USDC for the rising layer 2 DEX to use as liquidity.

Using OpenLaw, the two parties entered into an onchain agreement detailing the terms of the loan and the Credit Limit – in this case, 20 WBTC.

“Credit Delegation is an essential building block for undercollaterized lending at scale.” COO Jordan Lazaro Gustave told DeFi Rate. “Eventually it will enable fintech and institutional lenders to source their liquidity directly from DeFi. We could even see a day where Aave is the foundation for liquidity in legacy finance and I think that’s quite exciting to see!”

What’s to Know?

Using a Credit Delegation Proxy, Aave allowed DeversiFi to borrow against it’s $500k of USDC locked as interest-earning aUSDC. While this particular agreement was largely positioned as a spectacle for how Credit Delegation works, DeversiFi exercised its full credit limit of 20 WBTC, provable onchain. Here’s a good diagram of how it was broken down.

This first lending agreement between “Karen Lender” and “Chad Borrower” showcases the full potential for any two parties to enter into an unsecured lending agreement – one of the many innovative features Aave has rolled out in recent months.

For DeversiFi, the zk-Snarks Layer 2 exchange has been steadily gaining traction since it’s 2.0 upgrade in June. We expect that in order for high-frequency traders to make a full switch, liquidity will need to be deep enough to compete with centralized competitors. While 20 WBTC surely isn’t enough to turn any heads, it does open an interesting discussion of how DeFi composability can work to other’s advantages.

Outside of this first loan, Credit Delegation is available to anyone with Solidity know-how. For the less CLI-friendly, the fan-favorite yearn.finance rolled out yborrow.finance – a front-end interface to take advantage of credit delegation today through yVaults.

With the upcoming Aavenomics migration to AAVE, we’ll be keeping a close eye on the rising DeFi lending protocol in the coming weeks.

To stay up with Aave, follow them on Twitter or join the conversation on Discord.

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Uniswap Closes $11M Series A Round

https://defirate.com/uniswap-series-a/

Uniswap – the leading DeFi DEX – has closed $11M in funding in a Series A round.

The follow-on from their ~$1M seed round comes with participation from leading DeFi funds USV, Paradigm, Version One, Variant, Parafi Capital, SV Angel, and A.Capital.

With approximately $1.5B in volume in July alone, Uniswap is quickly turning into a real contender for crypto exchanges at large. Many have come to recognize Uniswap as the primary market for DEX liquidity, with many projects like UMA choosing to first distribute their tokens by seeding a Uniswap pool.

The closing of a Series A round is set to foreshadow a wider Uniswap V3 upgrade, a lot of which is still being kept behind closed doors. However, if the V2 upgrade showed us anything, Uniswap generally packs a big punch with any and all product upgrades, and this one is sure to be no different.

Interestingly enough, the announcement of the Series A round comes just hours after the popular DeFi account devops199fan leaked the news on Twitter. (Devops199 is a historic account which activated the killswitch on the Parity wallet)

If you thought that DeFi fans were only keeping an eye on CoinGecko – think again. With crypto exchanges like Uniswap expected to bring in $9.7M in annualized revenue through it’s 0.25% trading fee, legacy players are sure to try and capture it’s upside as one of the few DeFi products which does not currently have a native governance token.

Still, the business model for Uniswap as a company is worth touching on. With those 0.25% trading fees being allocated entirely to liquidity providers, this leaves no tangible revenue for Uniswap’s parent company (outside of liquidity they provide themselves). Our frequent readers may recall us shining light on the optional 0.05% protocol fee which, if our intuitions are correct, point to a soon-to-be included cut which flows directly back to the company.

While Uniswap CEO Hayden Adams has been very outspoken about his views on liquidity mining, one can only wonder how much more successful the project will get before sharing some of that governance with its very users.

In the meantime, be sure to stay up with Uniswap on Twitter for any and all news!

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Set Protocol Shares V2 Upgrades with Yield Farming & Gas Optimization

https://defirate.com/set-protocol-v2/

Set Protocol – the leading DeFi asset management platform – has showcased their forthcoming V2 upgrade with a suite of notable features.

Since it’s launch in August of 2019, Set Protocol has captured $24M worth of TVL, making it a leading contender for anyone looking to take advantage of automated trading strategies called TokenSets. We’ve been pretty vocal about our support for Set and their innovative approach to portfolio management, but there’s no denying that the yield farming craze has segmented attention away from the protocol in recent weeks.

Now, Set Protocol is shaping up to release a V2 upgrade – a combination of key features centered around offering a more holistic, versatile trading experience for both Set traders and Social Set creators.

“With the explosion of new DeFi protocols, assets, and yield opportunities, it is impossible for the normal person to have the time and effort required to keep up.” CEO Felix Feng told DeFi Rate “Set V2 opens up passive access to the normal user, and will dramatically lower gas costs as strategy executed is pooled.”

While none of the features we’ll dive into are live, the blueprint for V2 sets the protocol up to enjoy a renewed wave of activity in the coming weeks.

What’s to Know?

Underpinning all Sets are a makeup of different ERC20 tokens. Up until now, Set Protocol only supported highly liquid tokens like ETH, stablecoins and to a lesser degree, WBTC. Now, with their new TWAP rebalances, the flood gates can open for a more diverse range of assets, including popular DeFi tokens like LEND, KNC and SNX.

This comes with underlying support for yield farming, meaning that Sets which incorporate cTokens like cUSDC benefit from COMP rewards or those that leverage Balancer liquidity benefit from BAL. Outside of the more notable strategies, we expect this to expand to emerging farming opportunities like mStable MTA and yearn‘s YFI just to name a few.

Most importantly, Set V2 will introduce gas optimization for entering and exiting different TokenSets. As any Set trader knows, current Sets are faced with anywhere from $15-50 in trading fees, a big onramp for those looking to enter positions with minimal amounts of capital. While it’s unclear exactly how much gas will be reduced, we’d expect to see those entry costs closer to the $5 mark whenever they are rolled out.

Social Upgrades

For Set Managers, V2 also introduces Set Portfolios which offer flexible index allocations across a variety of assets and TokenSets offered on the platform. This comes in tandem with new types of trade execution including limit orders and margin trading for more risk-savvy, experienced managers.

Last but not least, V2 is likely to bring about lending support for more of DeFi’s top protocols including Aave, Curve, and Compound along with derivatives and liquidity from Balancer and Synthetix among others.

For Social Traders, the ability to flex their trading knowledge has never been more opportune. Set Protocol is sure to create a diverse market of competitive traders capturing alpha and sharing it with their holders. Thanks to their trading fee upgrades, managers can incentivize themselves to do well with their capital pool as it directly benefits their return.

Set it and Forget It

The launche of V2 signals the core goal for DeFi traders to be able to enter a position and have it passively accrue value in different market conditions. As DeFi becomes ever more complex, the average user is better suited to leave it to the full degens, and Set serves as a great product to benefit from other’s expertise without having to mimic their every move.

In the coming months, it will be interesting to see how Set competes with other platforms offering liquidity mining incentives to capture market share. While rumors have been touted that Set could one day tokenize their protocol, it’s not something we expect to see in the short term, and with that, the team will have to be especially creative with how to route liquidity into their top-performing strategies.

For all things Set and their coming V2 upgrades, follow the project on Twitter or join the conversation on Discord.

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mStable Launches Earn for Automated MTA Rewards

https://defirate.com/mstable-earn/

mStable – a rising liquidity aggregator – has debuted their Earn feature, granting liquidity providers real-time MTA rewards.

After roughly a month of liquidity incentives on Balancer, mStable has ported their MTA governance token distribution away from snapshots to an automated, yield tracking dashboard via their Earn feature.

Consisting of five different reward pools, mStable will adjust weekly allocations relative to where ecosystem liquidity is the most useful at any given time. For the first week, 100,000 MTA will be allocated as follows:

Sneaking its way into the incentive program is the MTA/ETH Uniswap pool – debatably the most crucial piece of liquidity for the sector’s hottest DeFi token. Seeing as Balancer provided a more modular liquidity onramp, it should come as no surprise that now that a strong base has been established, porting incentives to the fan-favorite DEX in Uniswap is the logical next step.

What’s To Know?

The biggest component of Earn is the necessity for LP’s to stake their liquidity tokens via the Earn dashboard. This notion is a new upgrade to MTA liquidity mining in which rewards were previously manually airdropped by simply being in the pool when random snapshots were taken throughout the course of the week.

To this note, it seems like some LPs have yet to take note of the change as illustrated in this tweet by yieldfarming.info founder Weeb McGee (yes that’s high legal birthname I checked).

The launch of Earn foreshadows the launch of MTA staking and mStable governance, two crucial pieces of the puzzle that are set to solidify mStable as a leading contender in the rising stablecoin liquidity wars.

It’s important to remember that for more conservative farmers, mStable also offers a Save feature in which users can stake mUSD for an estimated 30% APY at the time of writing.

Liquidity Mining Heats Up

As if it wasn’t obvious enough, just about every major DeFi token is now offering some sort of incentive for those providing value-added actions to their ecosystem. While driving deep liquidity on DEXs seems like the obvious first answer, it will be interesting to watch how the conversation evolves in the coming months.

Stated another way, projects which fail to incentivize liquidity are at the whims of projects offering double, and sometimes triple digital returns.

Best exemplified by Bancor and the launch of their V2 pools last week, liquidity is becoming far more rewarding across the wider DeFi ecosystem, a trend which isn’t likely to slow down anytime soon.

To add a somber note, I’m curious to watch incentives emerge which require specialized participation. Whether it be through the curation of protocol-specific assets or the ability to stake as a signal to earning opportunities, I’m forever curious about programs that incentivize knowledge over capital.

Alas, the launch of Earn is one of the more notable and well-designed liquidity mining features we’ve seen, and one you should definitely check out if you fancy yourself to be a yield farmer.

In the meantime, be sure to stay up with mStable on Twitter or by joining the conversation on Discord.

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$ALEX Launches Personal Token Liquidity Mining

https://defirate.com/alex-liquidity-mining/

Alex Masmej – founder of Rocket NFT and the creator of $ALEX – has just unveiled a new yield farming campaign around his Uniswap V2 liquidity pool.

Built on Roll, $ALEX was the first personal token to take center stage through his Initial $ALEX Offering in which $20k was raised to select participants in exchange for up to 15% of his income over the next 5 years. While this created a ton of awareness for Alex, one of the biggest issues plaguing both $ALEX and every personal token is secondary market liquidity.

In line with every DeFi token, the primary market to trade $ALEX is Uniswap. However, liquidity tends to be scarce due to people being more long on $ALEX than they are on providing value-added liquidity in exchange for a small sliver of trading fees which incur impermanent loss.

As illustrated in the original article “a 2.5 ETH purchase of $ALEX would have a price impact of over 5%”. To combat this, Alex is now offering incentives to liquidity providers over the course of August 8th – September 8th.

What’s to Know?

Just as with other liquidity mining programs, participants simply need to provide liquidity to this ALEX/ETH Unsiwap pool. Given the early nature of this experiment, LPs will need to remain in the pool for the entirety of the month period to be eligible for rewards.

Alex will allocate 100,000 $ALEX proportionally to eligible LPs via an airdrop at the end of the period. For participants, the experiment is likely to continue with a new reward amount and pool allocations following the first month.

“With the advent of a bull market, pools are getting more competitive from an interest rate perspective,” Masmej told DeFi Rate. “Making sure $ALEX holders get rightly compensated seemed both fair and strategic for the long term health of my token.”

Anyone participating in this program should join the $ALEX permissioned Telegram group, a chat that scans your web3 wallet to ensure you hold at least 1 ALEX to join.

To add more context, this announcement continues the trend of innovative experiments the French Steve Job has incubated included “Control My Life” – an ALEX-based governance poll in which stakeholders voted to have Alex run 5km every day for the past month.

Social Tokens Heat Up

The launch of the $ALEX Yield Round comes in line with a strong surge in interest regarding personal tokens – more recently being branded as social currency. Popularized by Roll, creators of all shapes and sizes are stepping up to tokenize themselves in an attempt to incubate a dedicated community that shares in that creator’s future upside.

This weekend, we saw the launch of $JAMM – a personal token by Brian Flynn that aims to offer exclusive benefits to his newsletter subscribers along with JAMM merch and early product access.

Before that, a group called KarmaDAO launched a token – KARMA – which requires users to hold 200 tokens to enter the chat group and gain access to private meetings with early-stage projects showcasing their development. This notion of token-permissioned chat groups then made it’s way to DeFi with the launch of the DeFi Nation Signal DAO and their DSD token.

As we covered a few weeks before that, game developer Coin Artist is launching a tokenized syndicate – COIN – using fractionalized NFT shards in partner with Niftex.

If the trend wasn’t clear enough, personal tokens are here to stay and we’ve only just scratched the surface of what’s possible in the coming months.

To stay up with Alex and the $ALEX yield round, follow him on Twitter and be sure to keep an eye out for more announcements on Medium.

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pTokens Launches pNetwork DAO with PNT Staking

https://defirate.com/pnetwork-dao/

pTokens – a trustless bridge for interoperability – has summoned its DAO to handle all protocol governance using PNT tokens.

Built by Provable Things, pNetwork offers a platform to port assets to and from Ethereum using wrappers called pTokens. The most popular version of these wrappers is pBTC – an Ethereum-based version of Bitcoin similar to renBTC. Underpinning the pNetwork is a set of decentralized validators who post a bond in PNT governance tokens to operate a node on the network. Whereas this aspect was a great way for validators to have skin in the game, it’s largely limited to a technical audience.

Today, PNT rewards can be earned by any user by joining the newly launched pNetwork DAO and participating in governance. Built on Aragon, users stake PNT for governance-wrapped tokens called daoPNT. To encourage users to participate in voting, pNetwork is allocating up to 28.35M PNT (47.25% of the total supply) via governance reward inflation.

Similar to other governance-based rewards like KyberDAO and Nexus Mutual, PNT is only rewarded to active contributors. As illustrated in the DAO interworking post:

“A DAO member is considered active and only becomes eligible for rewards if they are daoPNT holders and the check confirms that they have voted on at least all proposals except one within the two week period.”

The rewards are projected to provide 42% APR in the first year followed by 21% in the second year. Stated another way, if you stake your PNT via the pNetwork DAO and vote on every proposal, you will earn a 42% return on your initial PNT contribution (denominated in PNT).

The pNetwork DAO features a 7 day cooldown period and is expected to kick off it’s genesis governance polls in the coming weeks!

DeFi DAOs Heat Up

The launch of the pNetwork DAO comes in tandem with a suite of other DeFi DAOs from projects like Kyber, Aave, Curve and bZx.

While Curve will also be built on Aragon, it’s interesting to recognize that many DeFi projects have opted in to building their own framework instead of using an out of the box solution like Aragon. Still, Aragon-based tooling offers much more flexibility in the future upgradability of these DAOs, and is quickly becoming the leading platform for large organizations to field future governance.

Backed by the recent ANT liquidity program, Aragon will also look to ship a native chain this year, allowing DAOs to port their governance to a low cost, real-time transaction relayer which harnesses all the benefits of Aragon in a scalable fashion.

Over the next few months, it will be super interesting to see the different levels of engagement each of these DAOs receives. While using liquidity mining to incentivize participation is a step in the right direction, the bigger conversation is around making governance interesting enough that tokenholders would participate with no rewards in mind.

If nothing else, it’s great to see governance taking center stage and is a trend that we at DeFi Rate are extremely excited to watch unfold.

To stay up with pTokens for all DAO related events, be sure to follow them on Twitter or join the conversation on Discord!

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Dharma Debuts Uniswap Integration with Free Transactions

https://defirate.com/dharma-uniswap/

Dharma – a consumer-facing DeFi lending protocol – has unveiled a new Uniswap integration with free transactions for a limited time.

Boasting a mobile-first approach to crypto savings and trading, Dharma introduced it’s latest feature in tandem with a branding overhaul – reminiscent of Kanye West and the Silicon Valley flash the project has come to own.

For those who have tried trading on DEXs like Uniswap in the past few weeks, it’s no surprise that free transactions with zero gas come at an absolutely unprecedented time in the midst of a DeFi token bull market.

To paint some context, swaps on DEXs have averaged anywhere from $2-5 per transaction, a figure that can quickly add up or limit smaller users from participating at all. Now, Dharma will look to subsidize transactions in an attempt to migrate DeFi traders to a mobile-first approach.

In tandem with the free-transaction period, Dharma also rolled out aesthetically appealing charts to track price, backed by machine-learned notification systems to give users a heads up when a token of interest is on the move.

What’s interesting about this new feature rollout is that Dharma is quickly shaping up to be a leading fiat onramp for US-based customers, with its automatic savings design offering 7% APY on all deposits at the time of writing.

Mobile-First Crypto

The rise of mobile-first wallets comes at an interesting time for the industry at large. With Argent recently rolling out a suite of DeFi integrations and Coinbase Wallet integrating lending support, the barriers to entry for new consumers have never been lower.

To this point, there’s still a large degree of required learning necessary to get started, however, products like Dharma are doing a great job of letting users dip their toes in without being overwhelmed with 10 different DeFi products.

There’s now a running joke in DeFi circles that centralized exchanges like Binance and Coinbase are now only good as fiat onramps, and projects like Dharma are starting to knock at the door each day.

Looking at Uniswap in particular, the parabolic growth the leading DEX is enjoying today is a major testament to why new users may benefit from it’s integration – primarily given the primary market-like nature of being able to access new DeFi tokens like YFI, MTA and BZRX almost immediately after launch.

In the meantime, we’ll be keeping a close eye on Dharma. If any of your friends are looking to get started with DeFi in an intuitive fashion, be sure to point them to Dharma’s newly revamped website!

To stay up with the project, follow them on Twitter or join the conversation on Discord!

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Bancor V2 Goes Live – New Liquidity Pools, Interface and more!

https://defirate.com/bancor-v2-debut/

Bancor – a rising liquidity aggregator – has shipped it’s V2 protocol upgrade starting with capped liquidity for select token pairs.

Boasting a new interface resembling the likes of Uniswap, Balancer, and Kyber, Bancor V2 is underpinned by an innovative new liquidity pool structure said to offer 20x liquidity amplification relative to other AMMs.

In the spirit of user safety, liquidity pools are being capped at $500k per reserve, giving each pool a maximum of $1M of total liquidity. While this may seem minute relative to Balancer pools boasting $50M+ of liquidity, it’s worth noting that $1M in liquidity in Bancor is said to offer the same depth as $20M worth on Uniswap.

According to the Bancor team, Bancor V2 will be gradually rolled out in phases, starting with basic LP functions & token swaps. In the near future, Bancor V2 aims to offer more advanced features, and pool stats (like APR) to give users a better understanding of which pools are set to offer the highest returns on any given day.

What’s to Know?

Starting today, Bancor is opening deposits for its very first pool – LINK/BNT. As many know, LINK has quickly established itself as one of the most dedicated communities to date, making them the perfect candidate for tokenholders wishing to capture trading feels while mitigating impermanent loss. For those who missed it, Bancor V2’s novel design offers:

  • 100% single token exposure
  • Impermanent loss mitigation
  • Drastically reduced slippage

In the coming week, Bancor has stated they will be opening V2 pools for popular DeFi tokens like LEND, REN, rentBTC and SNX – soon to be followed by virtually every major Ethereum token on the market.

Now, while the new design is certainly appetizing, Bancor will need to compete with the likes of Balancer offering upwards of 55% Return on Liquidity (RoL) on given pools. To this front, we’re keeping a close eye on the launch of BancorDAO – a new initiative to seed key ecosystem incentives including liquidity provisions.

 

While it’s still a few weeks away, Bancor has openly stated that V2 will bring about BNT staking, allowing users to capture BNT inflation by staking to the liquidity pools which are collecting the most fees on any given day.

This incentive should act as a major catalyst for Bancor liquidity, giving the DEX a leg up when it comes to providing liquidity for new or slippage prone tokens.

DEX Liquidity Wars

As we alluded to before, the war for different liquidity aggregators to capture the most capital is quickly heating up. While liquidity incentives are a good short term way to motivate LPs to provide capital, it’s likely that new forms of engagements will become more and more necessary in the coming months.

Luckily for the end-user, DEX aggregators like 1inch are quickly becoming the primary point of contact for savvy traders, and with Bancor’s new V2 design, it stands to offer the best price at minimal slippage for support tokens like LINK.

For those Bancor community, the V2 launch comes as a new chapter in the project’s growth and we here at DeFi Rate are excited to watch it pan out!

In the meantime, be sure to stay up with Bancor on Twitter or by joining the conversation on Telegram.

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Synthetix Dissolves Foundation in Favor of Community DAOs

https://defirate.com/synthetix-foundation-dao/

Synthetix – the leading derivatives exchange – has decommissioned its foundation in favor of a suite of community-operated DAOs.

While Synthetix has always been a leader of decentralized governance, this transition is about the furthest the protocol could go to taking a full stance on the topic. In particular, the Foundation will be replaced by three DAOs:

  • The protocolDAO which controls protocol upgrades and variable configuration
  • The grantsDAO which funds public goods in the Synthetix ecosystem
  • The synthetixDAO which manages and deploys funds to contributors and other project needs

The segmentation of these DAOs paints an interesting picture in which different community members have the ability to contribute to unique areas of expertise. While the grantsDAO has been fully operational for quite some time now, the increased role of the synthetixDAO is one that has garnered the most attention from the DeFi community.

What’s to Know?

Without going too deep into the specific interworkings of the three different DAOs, we can essentially categorize the protocol DAO as handling all technical aspects, the grantsDAO as handling project incubation, and the synthetixDAO as ecosystem growth. The original post paints an excellent picture of the specific angles each of these DAOs will actually manage and is definitely worth doing a deep dive on if you’re deep in the Synthetix ecosystem.

Baked in that post, community members have rallied around one key aspect of the synthetixDAO – the $150M worth of treasury funds.

‘The synthetixDAO will continue to provide funding for network growth, but where the foundation was previously a major recipient of funding, now a large number of smaller entities will apply directly to the synthetixDAO for contributor funding’

 

The announcement of the dissolution of the Foundation comes just in time for Synthetix coveted community call, a sure listen for anyone looking for a high tier lesson on what community governance looks like in action.

It’s worth noting that the Synthetix team will continue to play a major role in governance, even with the Foundation being dissolved. Specifically related to the treasury, existing custodians will still be largely in control of the funding while just three key stakeholders make up the entirety of the DAO. This paints both a great check and balance on the management of the treasury in tandem with a path of gradual decentralization to be introduced with token-based voting over the course of the next few months.

Synthetix Strive to Decentralize

As if it weren’t clear, Synthetix’s long-standing commitment to decentralization is one that bodes very well for the future of the project. Whether it be the dissolution of the Foundation or the earliest yield farming programs to reward LP’s, Synthetix has created a tight-knit ecosystem with opportunities for all individuals, regardless of monetary status.

If you’re a project looking to tap into DeFi, the grants and synthetixDAO offer two very promising onramps to get started. With the announcement of dHedge last week, it’s clear the leading DeFi derviatives protocol is set to make major waves on the application layer in 2020 and beyond.

To stay up with Synthetix, follow them on Twitter or join the discussion on Discord.

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Mainframe Acquires Sablier in Lending Protocol Pivot

https://defirate.com/mainframe-sablier-lending/

Mainframe – a decentralized communication platform – is pivoting to a new fixed-rate lending protocol through the advent of tokenized debt markets with its acquisition of Sablier.

Sablier – a fan-favorite money streaming platform for real-time payments – is bringing it’s expertise to Mainframe as the project creates a new form of DeFi lending using Yield Protocol yTokens and influences from Compound and Maker.

With the acquisition, Sablier co-founder Paul Berg will be working full time on Mainframe as they “explore token streams as an innovative way to lock-up and release tokens from the circulating supply as part of a broader token economic system.” More on the acquisition can be found here.

Here’s what you need to know about Mainframe’s pivot.

Mainframe Lending

With over-collateralization becoming such a common factor of DeFi lending, Mainframe looks to change that notion through the advent of no-coupon tokenized bonds. The protocol allows users to deposit collateral (less than 150%) to mint tokenized debt obligations. These obligations are purchased by lenders at a discount and able to be redeemed at face value at maturity. Liquidity providers – called Guarantors – ensure the system stays sufficiently capitalized by purchasing defaulted collateral at a discount and earning protocol fees.

All in all, Mainframe’s sleek design skills paired with a new form of lending are set to make a big splash in the wider DeFi landscape. Plus, with Paul leading the development team, Mainframe is a project worth keeping a close eye on in the coming months.

MFT Liquidity Mining

As if that weren’t exciting enough, Mainframe is also looking to give their native token – MFT – second life through the ongoing development of a liquidity mining program. As illustrated over a suite of blog posts, Mainframe is allocating 1M MFT each week across the top two liquidity pools on Uniswap V2 and Balancer.

While the program is being handled manually using onchain snapshots, MFT aidrops to LP’s are yet another signal that Mainframe is set to make a big stance at revitalizing their ecosystem. The liquidity mining program is now up to 45 unique LP’s, over double the amount of LPs from when I first became aware of the program a few weeks back.

DeFi Pivots

While the news of a new DeFi lending protocol is one which we’re always keen to cover, it’s interesting to consider if projects are now looking to do anything and everything they can to take advantage fo the ongoing DeFi summer.

With Paul joining the team, I have full confidence in Mainframe offering a highly competitive lending product set to rival the likes of Teller and other new projects popping up across the board.

Still, we’ll need to keep a close eye on those which are adding true value to the space (like Mainframe) relative to others who are slapping a DeFi tag on their website and acting like they’re changing the world.

In the meantime, we’ll be sure to cover the gems right here on DeFi Rate.

To stay up with Mainframe, follow them on Twitter or join the discussion on Discord.

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