Uniswap V4 Hooks, Instadapp's Fluid and more - DeFi keeps building despite bear market.
Instadapp releases news on their plans for an all-in-one DeFi suite, Fluid, which brings trading, lending and vault functions into one platform. Staked FRAX goes live this week too, enabling stakers to earn real yield on FRAX. Finally, the zero-knowledge Ethereum Virtual Machine (zkEVM) chain, Scroll, launches on the mainnet, without much fanfare.
Big developments this week in the world of DeFi! Let’s dive deeper into what went down in DeFi this past week.
Overview
Total value locked (TVL) across all chains takes a dip further as macro uncertainties weigh on the crypto markets. Notable exceptions include Gnosis Chain, Sui and Evmos, which saw TVL increases by 25-50%.
Source: https://coinmarketcap.com/chain-ranking/
Welcome to Alpha Central
Hunter shares the list of projects that qualified for Arbitrum’s Short-Term Incentive Program (STIP), including Dopex, Camelot, Pendle, Radiant Capital and more.
Austin Campbell dives deep into the risks surrounding the highly anticipated stablecoin, Ethena, a project backed by Arthur Hayes and Nic Carter.
Aiden releases an open source directory of concepts designed for Uniswap V4’s hooks, together with their submitted code.
Ethereum: Instadapp’s Fluid Seeks to Change DeFi Forever
DeFi suite, Instadapp, introduces Fluid, an ever-evolving DeFi protocol designed to combine the best of Uniswap V3, Aave, MakerDAO, Compound and Curve to bring a suite of DeFi features to users, with increased capital efficiency, security and ease of use. Fluid is expected to launch in January 2024.
Stablecoin protocol and DeFi suite, Frax Finance, launches staked FRAX (sFRAX), allowing the staking of FRAX to earn a real yield from US Treasury Bills. The current yield sits around 7% with more than $37 million staked.
Interest rate marketplace protocol, IPOR, launches IPOR V2, bringing to the platform new opportunities with integration with ETH liquid staking derivatives (LSDs), extended contract terms, upgraded infrastructure and more.
USDR, a stablecoin issued by Tangible, has depegged, losing almost half its value after all of the liquid DAI in its treasury was redeemed, leading to uncertainty surrounding the backing of the stablecoin. The stablecoin will be deprecated once redemptions have been completed.
Cross-chain settlement layer, THORChain, announces that their relaunch will entail address screening, after coming under fire for the volume of illicit funds that are processed through the exchange.
Money market protocol, Morpho Labs, unveils Morpho Blue, a permissionless and governance-minimized approach where users can create any isolated lending pool with specified assets, liquidation Loan-To-Value, oracle and interest rate model.
Liquid staking protocol, Stader Labs releases their plans for integrating distributed validator technology (DVT) into ETHx’s infrastructure in their latest litepaper. Through DVT, Stader Labs aims to increase Ethereum’s decentralization in the long run to secure the network.
Web3 community platform, Galxe, announces their plan to reimburse users who were affected due to the frontend exploit of their website on Oct. 6. Users will be refunded on the Polygon network in USDT, with a 10% addition on top as a show of goodwill.
DeFi insurance protocol, InsurAce, introduces InsurAce V2, bringing in the vote-escrow model to their token to encourage active governance on the protocol as well as gauge voting to enable more control over insurance underwriting and reward distribution on the platform.
Redacted Cartel’s Hidden Hand announces support for Liquis, a liquid wrapper for the governance token of Bunni, a liquidity engine for Uniswap. With Liquis, protocols can now direct liquidity to their pools through bribes to vlLIQ holders.
L2s: Scroll Arrives on Mainnet
ZkEVM chain, Scroll, arrived on mainnet quietly. So far, more than $300K has been bridged onto the chain.
Modular execution layer, Fuel Network, launches its native bridge, linking Ethereum’s Sepolia testnet and the Fuel testnet.
https://twitter.com/fuel_network/status/1712484026085503291
Avalanche: Stars Arena Exploiter Returns Funds
Avalanche SocialFi application, Stars Arena, has received 90% of the funds lost in an exploit the week prior, with the remaining 10% taken by the exploiter as a bug bounty. The application has since reopened, without the trading functionality.
Stablecoin decentralized exchange (DEX), Platypus Finance, experiences a flash loan attack, losing 2.2 million from the sAVAX-AVAX liquidity pool to the exploit. While the root cause of the exploit remains uncertain, pools will be halted. Withdrawal options for unaffected pools will be made in the coming week.
Cosmos: Introducing Mars V2
Cosmos-based lending protocol, Mars Protocol, deploys V2, which brings Rover Accounts to its users. Rover Accounts function like subaccounts in centralized finance, allowing users to isolate assets for margin, trading, leverage and lending or borrowing activities.
Prism Protocol, introduces Pryzm, an L1 blockchain dedicated to yield harvesting, deploying and trading. Prism Protocol was first deployed on the Terra chain before its collapse in mid-2022.
Another Week, Another Airdrop
Stablecoin protocol, Raft, opens the airdrop for their token, RAFT. The first wave distributes 1.5% of the total supply to v1 users, v2 users, R stablecoin holders on Ethereum and Base, and liquidity providers on both Ethereum and Base. Tokens must be claimed by the end of the month.
Stay updated on your favorite projects and stay tuned for next week’s edition, and keep supporting your favorite projects, degens!
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