Arbitrum halts as Optimism upgrades — check out the biggest DeFi news in our comprehensive weekly roundup.
In this week's roundup, we take a look at stablecoin automated market maker (AMM), Curve Finance, which launched support for Lido Staked ETH (stETH) as collateral for their native stablecoin, crvUSD. Leading Ethereum L2 solution, Arbitrum, also faced a short disruption in their sequencer, resulting in transactions temporarily failing to reach finality. In the same week, Optimism successfully completed their Bedrock upgrade, bringing significantly cheaper fees to Optimism users.
Let’s see what went down this past week in DeFi.
Overview:
Total value locked (TVL) across all chains took a huge hit, falling almost 10%, as the crypto market dumped over the weekend, after the SEC went on the offensive, taking legal action against both Binance and Coinbase. Despite the move, notable exceptions to the upside include messaging application, Telegram’s, blockchain, TON, which saw a 55% rise in TVL and Polygon zkEVM, which saw a healthy 27% TVL growth.
Source: DeFiLlama
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Ethereum: Lido Staked ETH for CrvUSD
Stablecoin AMM, Curve Finance, passes the governance vote to add Lido Staked ETH (stETH) as collateral for crvUSD, their native stablecoin. Within a day of the launch, they have accumulated more than 3,000 wstETH in deposits, worth about $6.5 million.
Liquid staking derivative (LSD) lending platform, Raft, goes live on the Ethereum mainnet. Raft allows users to deposit stETH to borrow their native stablecoin, R. These R tokens can then be used for liquidity provision in protocols such as Balancer and Uniswap to generate yield.
Derivatives protocol, f(x) protocol, launches on the Sepolia testnet. The protocol enables the minting of fETH, a floating stablecoin, or a leveraged ETH token, xETH, depending on the user’s strategy.
Money market protocol, Aave, puts up the governance proposal to green-light the deployment of their stablecoin, GHO, to the Ethereum mainnet after being on testnet for the past four months.
ETH LSD protocol, Stader Labs, releases their plans moving forward, with their internal testing phase, closed beta and finally, mainnet launch, which is expected to arrive in early July.
Multichain DEX and aggregator, Kyber Network, introduces KyberAI, their native AI service. It utilizes metrics and indicators gathered from trades to grant users with insights to make better trading decisions. Users can now sign up on their waitlist for early access.
Centrifuge Prime deploys on Ethereum mainnet, bringing real-world assets to decentralized autonomous organizations (DAOs) and protocols looking to manage their treasuries in assets such as bonds and treasuries.
L2s: Arbitrum Disrupted, Optimism Upgraded
Arbitrum experienced a disruption in their sequencer, which caused transactions to be reverted, resulting in batches of transactions failing to be posted on-chain. This resulted in the Arbitrum One network becoming unavailable temporarily. The problem has since been resolved.
Native USDC is now available on Arbitrum, enabling businesses to easily on-ramp via Circle to the chain.
Optimism undertakes a major upgrade to Bedrock, bringing cheaper fees, improved modularity and overall better performance to the chain.
Arbitrum DEX, Camelot, requests for all users to remove positions on Camelot’s V3 AMM after issues were flagged during internal testing. While the issue has been mitigated, the V3 AMM has been paused for security purposes.
Bonds marketplace, Bond Protocol, launches permissionless bond market creation, allowing anyone to deploy a new bond market in just minutes.
Synthetic asset trading protocol, Synthetix, launches V3 spot markets for synthetic ETH on Optimism, making it the first Synthetix market to be built entirely on the new Synthetix V3 architecture.
Multichain DEX, Sushiswap, partners up with Steer protocol, to introduce Smart Pools, which brings automation to their concentrated liquidity pools. The service is currently available on Arbitrum, Optimism, Polygon, and BNB Chain.
ZkSync Era’s dominant DEX, SyncSwap releases SyncSwap Move, a bridge between Ethereum and zkSync Era to enable seamless bridging of USDT and WBTC between the two chains.
Rollup-as-a-Service platform, Caldera, releases their Taro testnet, enabling the use of Celestia for data availability with Caldera’s rollups, which are deployed on the OP stack.
Fantom: Hack-tor Network
Troubled DeFi project, Hector Network, has been exploited for $652K in USDC. Investigations are still ongoing, but several DeFi users have expressed their doubts over the legitimacy of the hack, with some branding it “an inside job.”
Avalanche: Sushi V3 x Avalanche
SushiSwap V3 is now live on Avalanche, bringing its entire suite of DeFi products, including its newly launched DEX aggregator service, to the ecosystem.
Hubble Exchange introduces their app-chain, built on Avalanche’s subnet technology, now in testnet. Hubblenet is specifically designed for perpetuals trading, using their decentralized limit order book and matching engine.
Cosmos: Astroport Live on Neutron
Delphi Labs-backed DEX, Astroport, is now live on Neutron, as its very first DEX. Liquidity provision and swapping of NTRN tokens and more are now available on the platform.
Another Week, Another Airdrop
VeVELO lockers on Optimism AMM, Velodrome, will be airdropped 40% of the token supply of Aerodrome, a liquidity hub launching on Coinbase’s L2 solution, Base. Snapshot date has not been announced.
Markets take a tumble as the SEC goes on the offense. Builders stay unfazed, projects keep shipping, and DeFi keeps going. Stay tuned for next week’s edition, and keep supporting your favorite projects, degens!
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